Chiles Valley Viticultural Area (96F-111)

DEPARTMENT OF THE TREASURY

Bureau of Alcohol, Tobacco and Firearms

27 CFR Part 9

[TD ATF-408; Re: Notice No. 858]

RIN 1512-AA07

Chiles Valley Viticultural Area (96F-111)

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

ACTION: Treasury decision, final rule.

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SUMMARY: This Treasury decision will establish a viticultural area in

Napa County, California, to be known as ``Chiles Valley.'' This

viticultural area is the result of a petition submitted by Mr. Volker

Eisele, owner of the Volker Eisele Vineyard and Winery.

EFFECTIVE DATE: April 19, 1999.

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

Regulations Division, 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, 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 4.25a(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 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 Chiles Valley viticultural area is located

entirely within the Napa Valley. The 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 viticultural area.

Comments

A Notice of Proposed Rulemaking, Notice No. 858 (63 FR 13583) was

published in the Federal Register on March 20, 1998, requesting

comments from all interested persons concerning the proposed

viticultural area. Specific comments were requested on the use of the

term ``District'' as part of the viticultural area name as proposed in

the original petition. ATF noticed the proposed area as ``Chiles

Valley'' because ATF did not find that the petitioner submitted

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

Chiles Valley. Six comments were received in response to this notice.

All

[[Page 7786]]

six comments favored the addition of ``District'' to the viticultural

name, but no additional evidence was submitted to support this change.

The six comments only reiterated the petitioner's original argument

that the use of the term ``District'' was important to distinguish the

Chiles Valley from the larger valley, in this case the Napa Valley.

None of the comments added any data or historical evidence for the use

of the term ``District'' in conjunction with Chiles Valley.

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.

However, as noted above, ATF has found that neither the petitioner

nor the commenters have submitted sufficient evidence to support the

use of the term ``District'' with the name ``Chiles Valley.''

Historical or Current Evidence That the Boundaries of the Viticultural

Area Are as Specified in the Petition

The petitioner provided evidence that 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 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 that 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 boundaries encompass an area of remarkable uniformity with

respect to soils, climate and elevation that produces 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

The geographical features of the 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 800

and 1000 feet 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 is

surrounded by hills up to 2200 feet which concentrate 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 temperatures

than those 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 colder 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 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

a cooler 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 viticultural area to the

areas surrounding it.

The 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 stated 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.

Geographical Brand Names

A brand name of viticultural significance may not be used unless

the wine meets the appellation of origin requirements for the

geographical area named. See 27 CFR 4.39(i).

[[Page 7787]]

Consequently, establishment of this viticultural area would preclude

the use of the term ``Chiles Valley'' as a brand name for wine, unless

the wine can claim ``Chiles Valley'' as an appellation of origin, or

complies with one of the exceptions in the regulation.

Proposed Boundaries

The boundaries of the 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).

Paperwork Reduction Act

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

3507(j)) and its implementing regulations, 5 C.F.R. part 1320, do not

apply to this rule because no requirement to collect information is

proposed.

Regulatory Flexibility Act

It is hereby certified that this 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. No new requirements are imposed.

Executive Order 12866

It has been determined that this 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 Division, 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:

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.

[[Page 7788]]

Signed: September 30, 1998.

John W. Magaw,

Director.

Approved: January 19, 1999.

John P. Simpson,

Deputy Assistant Secretary, Regulatory, Tariff and Trade Enforcement.

[FR Doc. 99-3759 Filed 2-16-99; 8:45 am]

BILLING CODE 4810-31-P