Applegate Valley Viticultural Area (99R-112P)

DEPARTMENT OF THE TREASURY

Bureau of Alcohol, Tobacco and Firearms

27 CFR Part 9

[Notice No. 874]

RIN 1512-AA07

Applegate Valley Viticultural Area (99R-112P)

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 proposing to establish a viticultural area within the State

of Oregon to be known as ``Applegate Valley.'' The proposed

viticultural area is within Jackson and Josephine Counties and entirely

within the existing Rogue Valley viticultural area as described in 27

CFR 9.132. Mr. Barnard E. Smith, President, The Academy of Wine of

Oregon Inc., submitted the petition. Mr. Smith believes that

``Applegate Valley'' is a widely known name for the petitioned area,

that the area is well defined, and that the area is distinguished from

other areas by its soil and climate.

DATES: Send your comments on or before July 6, 1999.

ADDRESSES: Send written comments to: Chief, Regulations Division,

Bureau of Alcohol, Tobacco and Firearms, P.O. Box 50221, Washington, DC

20091-0221 (Attn: Notice No. 874). 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

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

6480, 650 Massachusetts Avenue, NW, Washington, DC., 20226.

FOR FURTHER INFORMATION CONTACT: Jackie White, Regulations Division,

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

Washington DC., 20226, (202) 927-8145.

SUPPLEMENTARY INFORMATION:

1. Background on Viticultural Areas

What is ATF's Authority To Establish a Viticultural Area?

ATF published Treasury Decision ATF-53 (43 FR 37672, 54624) on

August 23, 1978. This decision revised the regulations in 27 CFR Part

4, Labeling and Advertising of Wine, to 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 27 CFR

Part 9, American Viticultural Areas, for the listing of approved

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

appellations of origin.

What is the Definition of an American Viticultural Area?

An American viticultural area is a delimited grape-growing region

distinguishable by geographic features. The viticultural features such

as soil, climate, elevation, topography, etc., distinguish it from

surrounding areas.

What Is Required To Establish a Viticultural Area?

Any interested person may petition ATF to establish a grape-growing

region as a viticultural area. The petition should include:

Evidence that the name of the proposed viticultural area

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

in the petition;

Historical or current evidence that the boundaries of the

viticultural area are as specified in the petition;

Evidence relating to the geographical characteristics

(climate, soil, elevation, physical features, etc.) which distinguish

the viticultural features of the proposed area from surrounding areas;

[[Page 24309]]

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

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

the boundaries prominently marked.

2. Applegate Valley Petition

ATF has received a petition proposing to establish a viticultural

area within the State of Oregon to be known as ``Applegate Valley.''

The proposed viticultural area is within Jackson and Josephine

Counties, and entirely within the existing Rogue Valley viticultural

area described in 27 CFR 9.132. The petition was submitted by Mr.

Barnard E. Smith, President, The Academy of Wine of Oregon Inc. Mr.

Smith believes that ``Applegate Valley'' is a widely known name for the

petitioned area. Mr. Smith states that the area is well defined, and

that the area is distinguished from other areas by its soil and

climate.

According to the petitioner, the Applegate Valley has been a grape-

growing region since 1870 when A. H. Carson began planting 30 acres of

grapes along North Applegate Road. There are now six bonded wineries in

the valley as well as 23 vineyards. The petitioner states that over 235

acres have been planted to grapes.

What Name Evidence Has Been Provided?

According to the petitioner, the Applegate River was named for one

or more of the Applegate brothers who explored the area in 1846. The

U.S.G.S. map used to show the boundaries of the area (Medford, Oregon;

California scale 1:250,000) uses the name Applegate River and shows the

town of Applegate within the proposed ``Applegate Valley'' viticultural

area. The petitioner has provided the following other references as

name evidence.

``The Wine Appellations of Oregon'' map published by the

Oregon Wine Marketing Coalition shows the Applegate Valley and mentions

it in its notes.

The Oxford Companion to Wine (first edition) mentions the

Applegate Valley on page 693.

The Oregon Winegrape Growers' Guide devotes several

paragraphs to a discussion of the Applegate Valley as one of Oregon's

grape growing areas.

Treasury decision ATF-310 (The Rogue Valley Viticultural

Area) describes ``the Applegate Valley (within the Rogue Valley

viticultural area) as one of the warmest grape growing areas in western

Oregon.''

What Boundary Evidence Has Been Provided?

Applegate Valley is surrounded by the Siskiyou Mountains. To the

east and south is the Rogue River National Forest. To the west is the

Siskiyou National Forest. According to the petitioner, these proposed

boundaries have been identified by the U.S. Forest Service in minute

detail but do not show on published maps. The petitioner states that

these boundaries can be closely approximated by straight-line segments

drawn between prominent physical features of the terrain, mostly

mountaintops. Boundaries of national forests were used where

appropriate.

What Evidence Relating to Geographical Features Has Been Provided?

Topography: The proposed boundaries are within Jackson and

Josephine

Counties in the State of Oregon. The proposed area is entirely

within the existing Rogue Valley viticultural area. The Rogue Valley

viticultural area has three distinct sub regions: Illinois Valley,

Applegate Valley, and Bear Creek Valley. The Illinois Valley lies to

the west of the proposed boundaries and Bear Creek Valley lies directly

to the east of the proposed boundaries.

The Applegate Valley is approximately 50 miles long running from

its origins near the California border generally northwest to where it

joins the Rogue River just west of Grants Pass. According to the

petitioner, the surrounding Siskiyou Mountains are believed to have

been created in the Jurassic period by up-thrusts of the ocean floor as

a plate forced its way under the continental shelf. The proposed

boundaries are found on the U.S.G.S. map titled ``Medford, Oregon;

California'' NK 10-5 scale 1:250,000 (1955, revised 1976).

Soil: The petitioner states that soil types are generally

granite in origin as opposed to the volcanic origin of the Cascade

Mountains to the east. Most of the Applegate Valley vineyards are

planted on stream terraces or alluvial fans providing deep well-drained

soils. According to the petitioner, the leaching of the more basic soil

components found in the Illinois Valley have left the soil slightly

more acidic than the soils in the proposed boundaries. The petitioner

further states that the soils outside the proposed boundaries to the

east near Bear Creek Valley tend to be less acidic than the soils in

the proposed boundaries. The soils in the Applegate Valley have a pH

between 6.1 and 6.5 which are more ideal. The petitioner claims that

while soil origin is an important factor in determining differences

between the proposed ``Applegate'' and the larger Rogue Valley

viticultural areas, its role is secondary to climate.

Climate: The grape-growing region around Cave Junction

located in the Illinois Valley is about 70 miles closer to the Pacific

Ocean than the grape-growing region around Medford located in Bear

Creek Valley. The Siskiyou Mountains separate the valleys which further

accentuate climate differences among the valleys. The precipitation in

the Illinois Valley at Cave Junction is 58.9 inches per year. The

precipitation decreases to 31.1 inches, at Grants Pass, in the

northeast and to 25.2 inches at Applegate. In the Bear Creek Valley at

Medford, the precipitation decreases further to 18.3 inches per year.

According to the petitioner, the average temperature in the

Illinois Valley during the growing season (April to October) is 2.5

degrees lower than in the eastern valleys. The petitioner states that,

cumulatively this means that the degree-days rise from 4971 degree-days

in Cave Junction to 5602 degree-days in Grants Pass. This temperature

data is from a soil survey for Jackson and Josephine Counties and does

not compare with Winkler's values since it is based on temperature of

40 degrees Fahrenheit instead of 50 degrees Fahrenheit.

According to the Oregon Winegrape Grower's Guide, ``As one moves

from west to east, or from the Illinois River Valley including Selma to

the Applegate Valley and into the Rogue Valley, good grape growing

sites generally become warmer due to the lessening of the marine air

influence.'' The Oregon Winegrape Grower's Guide goes on to point out

that earlier ripening varieties such as Pinot noir, Early Muscat, and

Gewurztraminer, do well in the Illinois Valley. In contrast, the

Applegate Valley with its Region II temperature range can ripen

Cabernet Sauvignon, Merlot, and Chardonnay two to three weeks earlier

than is possible in the Illinois Valley.

3. Public Participation

Who May Comment on This Notice?

ATF requests comments from all interested persons. In addition, ATF

specifically requests comments on the clarity of this proposed rule and

how it may be made easier to understand. 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.

[[Page 24310]]

However, assurance of consideration can only be given to comments

received on or before the closing date.

Will ATF Keep My Comments Confidential?

ATF cannot recognize any material in comments as confidential. All

comments and materials may be disclosed to the public. If you consider

your material to be confidential or inappropriate for disclosure to the

public, you should not include it in the comments. We may also disclose

the name of any person who submits a comment.

How do I Send Facsimile Comments?

You may submit comments of not more than three pages by facsimile

transmission to (202) 927-8525. Facsimile comments must:

Be legible.

Reference this notice number.

Be 8\1/2\'' x 11'' in size.

Contain a legible written signature.

Be not more than three pages.

We will not acknowledge receipt of facsimile transmissions. We will

treat facsimile transmissions as originals.

How Do I Send Electronic Mail (E-mail) Comments?

You may submit comments by e-mail by sending the comments to

[email protected]. You must follow these instructions.

E-mail comments must:

Contain your name, mailing address, and e-mail address.

Reference this notice number.

Be legible when printed on not more than three pages 8\1/

2\'' x 11'' in size.

We will not acknowledge receipt of e-mail. We will treat e-mail as

originals.

How do I Send Comments to the ATF Internet Web Site?

You may also submit comments using the comment form provided with

the online copy of the proposed rule on the ATF Internet web site at

http://www.atf.treas.gov./core/regulations/rules.htm.

Can I Request a Public Hearing?

If you desire the opportunity to comment orally at a public hearing

on this proposed regulation, you must submit your request in writing to

the Director within the 60-day comment period. The Director reserves

the right to determine, in light of all circumstances, whether a public

hearing will be held.

4. Regulatory Analyses and Notices

Does the Paperwork Reduction Act Apply to This Proposed Rule?

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 notice because no requirement to collect information is

proposed.

How Does the Regulatory Flexibility Act Apply to This Proposed Rule?

These proposed regulations 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 that

area.

No new requirements are proposed. Accordingly, a regulatory

flexibility analysis is not required.

Is This a Significant Regulatory Action as Defined by Executive Order

12866?

It has been determined that this proposed regulation is not a

significant regulatory action as defined by Executive Order 12866.

Therefore, a regulatory assessment is not required.

5. Drafting Information

The principal author of this document is Jackie White, Coordinator,

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

Subpart C--Approved American Viticultural Areas

Par. 2. Subpart C is amended by adding Sec. 9.165 to read as

follows:

* * * * *

Sec. 9.165 Applegate Valley.

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

section is ``Applegate Valley.''

(b) Approved Maps. The appropriate map for determining the

boundaries of the Applegate Valley viticultural area is one U.S.G.S.

map titled ``Medford, Oregon; California'' NK 10-5 scale 1:250,000

(1955, revised 1976).

(c) Boundaries. The Applegate Valley viticultural area is located

within the State of Oregon within Jackson and Josephine Counties, and

entirely within the existing Rogue Valley viticultural area. The

boundaries are as follows:

(1) Beginning at the confluence of the Applegate River with the

Rogue River approximately 5 miles west of Grants Pass, the boundary

proceeds due west to the boundary of the Siskiyou National Forest north

of Dutcher Creek;

(2) Then southerly and westerly along the boundary of the Siskiyou

National Forest to Highway 199;

(3) Then easterly to the peak of Roundtop Mountain (4663 feet);

(4) Then easterly and southerly to the peak of Mungers Butte;

(5) Then southerly and westerly to Holcomb Peak;

(6) Then in a generally southeasterly direction along the eastern

boundary of the Siskiyou National Forest until it joins the northern

boundary of the Rogue River National Forest;

(7) Then easterly along the northern boundary of the Rogue River

National forest to a point due south of the peak of Bald Mountain;

(8) Then due north to the peak of Bald Mountain (5635 feet);

(9) Then northerly and westerly to the lookout tower on Anderson

Butte;

(10) Then northerly and westerly to the peak of an unnamed mountain

with an elevation of 3181 feet;

(11) Then northerly and westerly to the peak of Timber Mountain;

(12) Then westerly and southerly to the middle peak of Billy

Mountain;

(13) Then northerly and westerly through a series of five unnamed

peaks with elevations of approximately 3600, 4000, 3800, 3400, and 3800

feet, respectively;

(14) Then northerly and easterly to Grants Pass Peak;

(15) Then westerly to Jerome Prairie;

(16) Then northwesterly to the confluence of the Applegate River

and the Rogue River and the point of the beginning.

[[Page 24311]]

Signed: April 29, 1999.

John W. Magaw,

Director.

[FR Doc. 99-11366 Filed 5-5-99; 8:45 am]

BILLING CODE 4810-31-P