[Federal Register Volume 64, Number 31 (Wednesday, February 17, 1999)]
[Rules and Regulations]
[Pages 7785-7788]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-3759]


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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