[Federal Register Volume 65, Number 241 (Thursday, December 14, 2000)]
[Rules and Regulations]
[Pages 78096-78099]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-31595]
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Bureau of Alcohol, Tobacco and Firearms
27 CFR Part 9
[T.D. ATF-434; Re: Notice No. 874]
RIN 1512-AA07
Applegate Valley Viticultural Area [99R-112P]
AGENCY: Bureau of Alcohol, Tobacco and Firearms (ATF), Department of
the Treasury.
ACTION: Final rule, Treasury decision.
-----------------------------------------------------------------------
SUMMARY: The Bureau of Alcohol, Tobacco and Firearms (ATF) is
establishing a viticultural area located within the State of Oregon, to
be known as ``Applegate Valley.'' The petition for this viticultural
area was filed by Mr. Barnard E. Smith, President, The Academy of Wine
of Oregon Inc. ATF believes that the establishment of viticultural
areas and the subsequent use of viticultural area names as appellations
of origin in wine labeling and advertising allows wineries to designate
the specific areas where the grapes used to make the wine were grown
and enables consumers to better identify the wines they purchase.
EFFECTIVE DATE: February 12, 2001.
FOR FURTHER INFORMATION CONTACT: Tim DeVanney, Regulations Division,
(202-927-8210), Bureau of Alcohol, Tobacco and Firearms, 650
Massachusetts Avenue, NW., Washington, DC 20226.
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 definite American viticultural areas (AVAs).
The regulations also allow the name of an approved viticultural area to
be used as an appellation of origin in the labeling and advertising of
wine.
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 AVAs. Section 4.25a(e)(1), title 27, CFR, defines an AVA 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
AVA. 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 features (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 of the appropriate U.S.G.S. map(s) with the boundaries
prominently marked.
Petition
ATF has received a petition from Mr. Barnard E. Smith, President,
The Academy of Wine of Oregon Inc., proposing to establish a
viticultural area within the State of Oregon, to be known as
``Applegate Valley.'' The viticultural area is located entirely within
the Rogue Valley AVA. The viticultural area is in Josephine and Jackson
Counties. Mr. Smith believes that Applegate Valley is a widely known
name for the petitioned area, that the area is well defined, and
[[Page 78097]]
that the area is distinguished from other areas by its soil and
climate.
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 23 vineyards in the valley. In the
original petition, Mr. Smith noted there were six bonded wineries and
235 acres of grapes in the proposed area. Since the publication of the
notice, the petitioner amended his statement regarding the number of
bonded wineries: there are four bonded wineries in the Applegate
Valley. One commentor provided an acreage update by stating that there
are now over 340 acres that have been planted to grapes within the
Applegate Valley.
Notice of Proposed Rulemaking
In response to this petition, ATF published a notice of proposed
rulemaking, Notice No. 874, in the Federal Register on May 6, 1999 [64
FR 24308], proposing the establishment of the Applegate Valley
viticultural area. The notice requested comments from interested
persons by July 6, 1999.
Name Evidence
ATF found that usage of the name Applegate Valley is well
established. There are many businesses, organizations and at least one
community event (the Applegate Valley Harvest Festival), that employ
the use of this name. 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
1955, Revised 1976, (NK 10-5), scale 1:250,000) uses the name Applegate
River and shows the town of Applegate within the Applegate Valley
viticultural area. The following are evidence of Applegate Valley's
name recognition.
``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) refers to the Applegate Valley within the Rogue Valley
viticultural area.
Geographical Features
Evidence of Boundaries and Topography
The boundaries of the viticultural area are within Jackson and
Josephine Counties in the State of Oregon. The area is entirely within
the Rogue Valley viticultural area. The Rogue Valley viticultural area
has three distinct subregions: Applegate Valley and two other valleys
that have not been designated as AVAs, Illinois Valley and Bear Creek
Valley. The Illinois Valley lies to the west of the Applegate Valley
and Bear Creek Valley lies directly to the east of the AVA.
The Applegate Valley is approximately 50 miles long, running from
its southeast origins near the California border, in a generally
northwest direction, to where it joins the Rogue River, just west of
Grants Pass.
Applegate Valley is surrounded by the Siskiyou Mountains. The
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. To Applegate Valley's east and south is the
Rogue River National Forest. To its west is the Siskiyou National
Forest. Both of the National Forests' boundaries have been identified
by the U.S. Forest Service and were used to identify the boundaries of
the Applegate Valley AVA where appropriate. A portion of the western
boundaries, and most of the northern boundaries, are established by
straight-line segments drawn between prominent physical features of the
terrain, mostly mountaintops. The boundaries of the Applegate Valley
AVA are more particularly discussed in Sec. 9.165(c) of the
regulations, as identified at the end of this Treasury Decision.
Soil
The petitioner submitted a soil analysis listing the principal soil
series from Applegate Valley, Bear Creek Valley and Illinois Valley
vineyards. As indicated earlier, these three subregions are located in
the Rogue Valley viticultural area. The principal soil series from
vineyards located in each of these subregions are: (1) Applegate
Valley: Central Point, Cove, Kerby, Manita, Ruch and Shefflein; (2)
Bear Creek Valley: Agate-Winlow Complex, Brockman, Carney, Central
Point, Coleman, Darrow, Evans, Holland, Medford, Provig-Agate Complex,
Ruch, Selmac, Shefflein, Vannoy and Wapato; (3) Illinois Valley:
Brockman, Cornutt-Dubakella Complex, Foehlin, Kerby, Pollard and
Takilma. Based on this soil analysis, the Applegate Valley and Bear
Creek Valley vineyards have three principal soil series in common:
Central Point, Ruch and Shefflein. It is also apparent that Illinois
Valley and Applegate Valley vineyards have one principal soil series in
common, Kerby.
Soil types in the Applegate Valley 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. 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 Applegate Valley. The
soils to the east of Applegate Valley near Bear Creek Valley tend to be
less acidic than the soils in the Applegate Valley. Applegate Valley
soils have a pH of between 6.1 and 6.5. In The Oregon Winegrape
Growers' Guide, Ken Browning writes that a pH of 6.0 to 6.5 is ideal
for desirable microbiological activity, nutrient availability, and
nutrient balance.
Climate
The natural geographic boundaries of the Applegate Valley provide
for its distinct climate in terms of rainfall, degree-days and
temperature. Specifically, the Siskiyou Mountains separate the
Applegate Valley's western side from the Illinois Valley and its
eastern side from Bear Creek Valley. This further accentuates climatic
differences between the three valleys, coupled with a lessening of the
marine influence, when moving from a west to east direction.
According to The Oregon Winegrape Growers' 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 Growers' 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.
As mentioned earlier, Applegate Valley AVA is located in Jackson
and Josephine Counties. The USDA Natural Resources Conservation
Service, National Water and Climate Center, has climate data for
Jackson and Josephine Counties, which is available from the USDA web
site at http://wcc.nrcs.
[[Page 78098]]
usda.gov/water/climate/. Temperature and precipitation differences in
Applegate Valley and surrounding areas are illustrated by the data
collected during 1961 through 1990 at five weather stations. The Ruch
weather station is located inside the Applegate Valley AVA boundaries
and data from that site is used to approximate the climate conditions
of this viticultural area. The four other weather stations located
outside the AVA, are: (1) Cave Junction, located in the Illinois
Valley, in Josephine County, which is in close proximity to the AVA's
southwest boundaries; (2) Grants Pass, in Josephine County, which is in
close proximity the AVA's northwest boundaries; (3) Medford, located in
the Bear Creek Valley in Jackson County, which is in close proximity to
the AVA's northeast boundaries; and (4) Ashland, also in Jackson
County, which is in close proximity to the AVA's southeast boundaries.
Climatological statistics are as follows: Cave Junction (Illinois
Valley) has an average annual precipitation of 59.57 inches. Average
annual precipitation declines steadily, when proceeding in a generally
eastern direction: starting with Grants Pass at 30.89 inches, into
Applegate Valley at Ruch with 26.01 inches, then Medford, in Bear Creek
Valley, with 20.56 inches and finally, Ashland reporting 19.26 inches.
This illustrates the following precipitation differences when comparing
each of the four weather sites with the Ruch (Applegate Valley) site:
Cave Junction had the highest precipitation with 33.56 inches more than
Ruch; Grants Pass had 4.9 inches more; Medford had 5.5 inches less; and
Ashland with 6.8 inches less than Ruch. This shows that Applegate
Valley has a distinct and measurable climatic difference from its
surrounding areas in terms of average annual precipitation.
The growing degree-days records (from the same source as the
precipitation records presented above) provide another climatic
difference between the Applegate Valley and the surrounding areas. A
growing degree-day is defined as a unit of heat available for plant
growth. It is calculated by taking the average daily temperature
(adding the maximum and minimum daily temperatures, then dividing by
two) and subtracting the temperature below which growth is minimal for
the principal crops in the area. The temperature threshold used for
determining minimal growth was 40 degrees Fahrenheit. The temperature
data places the average yearly degree-days at the Ruch site (Applegate
Valley) at 5108. The average yearly degree-days, beginning with the
stations outside of the Applegate Valley boundaries are as follows:
Southwest at Cave Junction (Illinois Valley) registers 5008 degree-
days; northwest at Grants Pass reported 5689; northeast at Medford
(Bear Creek Valley) measured 5086, and southeast at Ashland had 4836.
In comparing the degree-days of Ruch (Applegate Valley) with the four
others, it is clear that a measurable difference in degree-days exists
between Applegate Valley and the surrounding areas: The largest
temperature variation was at Grants Pass, which had 583 more degree-
days than Applegate Valley, and the smallest difference was at Medford
(Bear Creek Valley), which had 20 degree-days less than Applegate
Valley.
Comments on Notice of Proposed Rulemaking
ATF received 28 letters of comment in response to Notice No. 874.
Of the 28 comments ATF received, 22 (with a total of 27 signatures)
favored creating the Applegate Valley viticultural area; six (with a
total of seven signatures) were opposed. The petitioner submitted
additional supporting documentation about soil and climate for areas
within and outside of the viticultural area, which was included in the
rulemaking record. This information included soil maps, precipitation
and temperature records. All of these comments were given careful
consideration in the preparation of the final rule.
Commentors who supported the establishment of an Applegate Valley
AVA confirmed that Applegate Valley has distinct weather and growing
conditions. One respondent, Mr. Robert Kerivan, President of Bridgeview
Vineyards, stated that the Applegate Valley is known for Bordeaux style
grapes--merlot, syrah and cabernet sauvignon--specifically due to its
warmer climate. Four of the commentors specifically noted the distinct
soils of Applegate Valley along with six who cited the unique
geographic features of the AVA. Climate was the most common basis for
support with 16 commentors in favor of Applegate Valley's AVA approval.
The respondents opposed to establishing Applegate Valley
viticultural area challenge the existence of significant differences
between Applegate Valley and the surrounding Rogue Valley viticultural
area. The majority of the opposition based their objection on the
overall similarity of the climate and soils of the Rogue Valley
viticultural area and the Applegate Valley. One commentor noted that
the different soils of the Rogue Valley viticultural area are ``a
jigsaw puzzle of soils which occur repeatedly in all parts of the
region.'' Opponents want the Rogue Valley left as one area. Three of
the six opposing commentors expressed concerns about the fragmenting of
the Rogue Valley viticultural area. Two of these commentors stated that
there should not be an Applegate Valley AVA since the quality of the
wine is not distinct from those produced in the surrounding areas. Yet,
both commentors describe the wine from Applegate Valley as ``bland''
and ``brash.'' One of the commentors voiced concerns about having ``a
noticeable negative financial impact on the other established wineries
and growers'' outside the Applegate Valley AVA.
ATF's Decision
ATF believes that the evidence supports the establishment of an
Applegate Valley AVA. While ATF agrees there are similarities
associated with Applegate Valley and the surrounding Rogue Valley, we
believe that the confluence of distinctions, in soil, climate and name
recognition, are sufficient to demarcate the Applegate Valley as an
AVA. As evidenced above, the petition clearly satisfies the criteria in
27 CFR 4.25(a)(e)(2) with respect to name recognition, boundaries and
geographical features. As set forth above, Applegate Valley is also
recognized as having a distinct climate from the areas that surround
it.
The Applegate Valley is encompassed by the Rogue Valley and,
therefore, is considered a sub-appellation of the Rogue Valley. (A sub-
appellation is the smaller delimited grape-growing region that is
bounded by the larger delimited grape-growing region.) As with many
sub-appellations, the similarities are implicitly recognized by the
approval of the primary appellation. Rogue Valley, the primary
appellation, and Applegate Valley, the sub-appellation, are not
exceptions to this situation.
Marketing materials for Rogue Valley wineries, along with
viticultural reference books, cite the Applegate Valley as a distinct
sub-appellation. Ted Jordan Meredith, in his book Northwest Wine
Companion, specifically describes the Applegate Valley as being ``one
of the warmest grape-growing areas in western Oregon * * *''. A web
page titled TOUR WINE COUNTRY by The Oregon Pinot Noir Club (http://www.oregonpinotnoir.com/Merchant/tourrgsm.htm) states that Rogue Valley
has three distinct sub-appellations. Of these three areas, ``the
Applegate Valley with a warmer climate is known for Cabernet Sauvignon,
Cabernet franc, and Merlot.'' Another web site, WINES NORTHWEST--A
GUIDE TO THE
[[Page 78099]]
WINE COUNTRY OF THE PACIFIC NORTHWEST (http://www. winesnw.com/rogue.html), mentions Applegate Valley as the smallest of Rogue
Valley's sub regions. They state that Applegate Valley is ``drier and
warmer than the Illinois Valley subregion to its west, yet not as warm
and dry as Bear Creek Valley to the east.''
With respect to concerns about breaking up the Rogue Valley, as
previously stated, Rogue Valley AVA encompasses Applegate Valley. In
accordance with ATF regulations, an overlapping area is entitled to
more than one viticultural designation. Wine that meets the criteria
described in 27 CFR 4.25a(e)(4), may be labeled with Rogue Valley or
Applegate Valley or with both viticultural areas as the appellation(s)
of origin. Therefore, ATF does not view this as a fragmentation of the
existing Rogue Valley, but as an option for wineries to provide
consumers with more specific information about the origin of the wine.
Moreover, to the extent certain commentors opposed the
establishment of the Applegate Valley AVA on the basis that the wine
made from grapes produced in that area is not distinct or that the
establishment of the Applegate Valley AVA will present an adverse
financial impact on the area, these concerns are not criteria for
denying a petition to establish an AVA under 27 CFR 4.27a(e)(2).
Moreover, approval of an AVA does not, in any manner, constitute the
endorsement of a particular wine. Rather, 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.
Boundary
The boundaries of the Applegate Valley viticultural area may be
found on one U.S.G.S. map titled ``Medford, Oregon; California'' (NK
10-5) scale 1:250,000 (1955, revised 1976). The boundaries are
described in Sec. 9.165.
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.
Regulatory Flexibility Act
It is hereby certified that this regulation will not have a
significant economic impact on a substantial number of small entities.
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.
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 final rule because no requirement to collect information
is imposed.
Drafting Information
The principal author of this document is Tim DeVanney, Regulations
Division, Bureau of Alcohol, Tobacco and Firearms.
List of Subjects in 27 CFR Part 9
Administrative practices and procedures, Consumer protection,
Viticultural areas, 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. In subpart C is amended by adding Sec. 9.165 to read as
follows:
Subpart C--Approved American Viticultural Areas
* * * * *
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
in 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 in a straight line in a southerly and westerly direction
along the boundary of the Siskiyou National Forest to Highway 199;
(3) Then in a straight line easterly to the peak of Roundtop
Mountain (4693 feet);
(4) Then in a straight line easterly and southerly to the peak of
Mungers Butte;
(5) Then in a straight line 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 in a straight-line northerly and westerly to the lookout
tower on Anderson Butte;
(10) Then in a straight line northerly and westerly to the peak of
an unnamed mountain with an elevation of 3181 feet;
(11) Then in a straight line northerly and westerly to the peak of
Timber Mountain;
(12) Then in a straight line westerly and southerly to the middle
peak of Billy Mountain;
(13) Then, northerly and westerly by straight lines connecting a
series of five unnamed peaks with elevations of approximately 3600,
4000, 3800, 3400, and 3800 feet, respectively;
(14) Then in a straight line northerly and easterly to Grants Pass
Peak;
(15) Then in a straight line westerly to Jerome Prairie;
(16) Then in a straight line northwesterly to the confluence of the
Applegate River and the Rogue River and the point of the beginning.
Dated: October 16, 2000.
Bradley A. Buckles,
Director.
Approved: November 1, 2000.
John P. Simpson,
Deputy Assistant Secretary (Regulatory, Tariff and Trade Enforcement).
[FR Doc. 00-31595 Filed 12-13-00; 8:45 am]
BILLING CODE 4810-31-P