[Federal Register Volume 66, Number 69 (Tuesday, April 10, 2001)]
[Rules and Regulations]
[Pages 18543-18546]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-8795]



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DEPARTMENT OF THE TREASURY

Bureau of Alcohol, Tobacco and Firearms

27 CFR Part 9

[T.D. ATF-448; Re: Notice No. 897]
RIN: 1512-AAO7


Red Mountain Viticultural Area (99R-367P)

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 
within the State of Washington to be called ``Red Mountain.'' The new 
viticultural area is within Benton County and entirely within the 
existing Yakima Valley viticultural area as described in 27 CFR 9.69. 
This viticultural area is a result of a petition submitted by Mr. Lorne 
Jacobson of Hedges Cellars.

EFFECTIVE DATE: Effective June 11, 2001.

FOR FURTHER INFORMATION CONTACT: Jennifer Berry, Bureau of Alcohol, 
Tobacco and Firearms, Regulations Division, 111 W. Huron Street, Room 
219, Buffalo, New York 14202-2301, (716) 551-4048.

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. 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;
     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. Rulemaking Proceeding

Red Mountain Petition

    Mr. Lorne Jacobson of Hedges Cellars petitioned ATF for the 
establishment of a viticultural area within the State of Washington to 
be known as ``Red Mountain.'' The viticultural area is entirely within 
the existing Yakima Valley viticultural area described in 27 CFR 9.69 
and encompasses approximately 4,040 acres, of which approximately 600 
acres are planted to vineyards.

Comments to Notice of Proposed Rulemaking

    A Notice of Proposed Rulemaking, Notice No. 897, was published in 
the Federal Register on May 19, 2000, requesting comments from all 
interested persons concerning the proposed viticultural area. ATF 
received nine letters of comment in response to this notice. A majority 
of these supported the adoption of the viticultural area as proposed.
    Two dissenting letters of comment were received. One was from 
Evelyn Skelton, owner of Oakwood Cellars, a winery just outside the 
viticultural area boundaries. The other commenter, an area resident and 
self-described wine enthusiast, submitted comments nearly identical to 
those of Ms. Skelton.
    In her comments, Ms. Skelton supported the creation of the Red 
Mountain viticultural area, but proposed amending the western boundary 
to include her vineyard and winery. Oakwood Cellars is immediately west 
of the proposed viticultural area, within 1,000 feet of the Yakima 
River, at an approximate elevation of 450-480 feet. Ms. Skelton argued 
that the use of the 560-foot elevation line as part of the boundary was 
arbitrary, and that soil and climate conditions at lower elevations are 
similar to those in the proposed area. She further argued that the 
evidence presented by the petitioner for this boundary was vague, and 
that scientific criteria should be used to determine the boundary. Ms. 
Skelton did not, however, submit any evidence to support her contention 
that the conditions on her property are similar to those in the 
viticultural area.

Response of the Petitioner

    The petitioner, in counter comments, argued that the criteria used 
to determine the western boundary were not arbitrary, but based on 
scientific data. He maintained that Oakwood Cellars and other sites 
adjacent to the Yakima River have different soils and growing 
conditions than those on Red Mountain and should not be included in the 
viticultural area. Along with his comments, the petitioner submitted 
the following maps:
     Soil survey maps issued by the Soil Conservation Service, 
U.S. Department of Agriculture, in cooperation with the Washington 
Agricultural Experiment Station;
     Maps depicting flood hazard areas issued by the Federal 
Emergency Management Agency (FEMA); and
     A land use map issued by the Benton County Planning 
Department.
    The petitioner noted that all these maps show a delineation between 
the land immediately adjacent to the Yakima River and the land within 
the viticultural area. The FEMA map, for example, designates the land 
adjacent to the river as a floodplain--the viticultural area, at a 
higher elevation, is not part of the floodplain. The land use map 
designates the area within the viticultural area as an agricultural 
district zone, while land adjacent to the river is part of a different 
zone.
    The Soil Conservation Service maps, however, are the most detailed 
and best depict differences between the Oakwood Cellars site and Red 
Mountain. These maps clearly show that the soils in the Oakwood Cellars 
property belong to a different soil association than those in the Red 
Mountain viticultural area. Oakwood Cellar's property lies on soils 
within the Hezel-Quincy-Burbank association, with the predominant soil 
being Pasco silt loam. The Soil Conservation Service

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describes Pasco silt loam as an alluvial, poorly draining, and very 
fertile soil. In contrast, Red Mountain's soils belong to the Warden-
Shano association. Soils within this association are light and well 
draining. According to the petitioner, these soil qualities cause vine 
stress, which in turn results in a higher caliber of fruit.
    The petitioner later filed additional comments proposing to enlarge 
the viticultural area by amending the southern boundary. Instead of 
using State Highway 224 as the southern boundary, the boundary would be 
moved south to a creekbed running along the southern edge of Red 
Mountain. This boundary change adds approximately 640 acres to the 
viticultural area. The petitioner gave three reasons for adding this 
parcel:
     First, the soils in the additional area are the same as 
those on the rest of Red Mountain. The Soil Conservation Service maps 
verify that the soils in the new area are also in the Warden-Shano soil 
association.
     Second, the new boundary--a creek bed--is a geographical 
feature, while the old boundary--a state highway--was not. Ideally, the 
petitioner noted, a viticultural area should be delineated by 
geographic, not man-made, features.
     Last, the new area encompasses land recently purchased by 
Evelyn Skelton of Oakwood Cellars, which, according to the petitioner, 
shares the distinctive characteristics of the rest of Red Mountain.

Conclusion

    After careful analysis of the comments, ATF has concluded that the 
evidence supports retaining the original western boundary, and amending 
the southern boundary as proposed by the petitioner.
    The evidence submitted by the petitioner, particularly the soil 
maps, strongly supports the petitioner's position that the land along 
the Yakima River does not share the same geographical characteristics 
as those that distinguish Red Mountain from the surrounding areas. 
While Ms. Skelton has stated that the soil on her Yakima River vineyard 
is the same as that on Red Mountain, she has offered no evidence to 
support this assertion. The evidence given by the petitioner, on the 
other hand, contradicts her position. The proposal to amend the 
southern boundary is, in contrast, well supported by the evidence. The 
Soil Conservation Service maps depict the additional land as having the 
same soils as the rest of Red Mountain, soils that are not found in the 
surrounding area.
    The effect that these soils have on grape growing is acknowledged 
in the many wine articles submitted in the original petition. The 
article Touring the Washington Wine Country, by the Washington Wine 
Commission states, ``This site offers * * * light soils that encourage 
grapevines to seek nutrients via deep roots.'' The petitioner, through 
his accumulated evidence, has established that the soil in the Red 
Mountain area is a significant part of what distinguishes Red Mountain 
from the surrounding areas.

3. Evidence Submitted With Petition

What Name Evidence Was Provided?

    The petitioner submitted as evidence of name recognition several 
newspaper and magazine articles referencing Red Mountain as a wine 
producing area. These publications include: The Seattle Post-
Intelligencer; the Globe and Mail, (Toronto); Wine Access (Canada); 
Decanter (UK); and Wine (UK). Other sources cited by the petitioner as 
referring to the wines of Red Mountain include: Decanter Magazine Guide 
to Oregon, Washington State and Idaho (Third Edition, 1996); Touring 
the Washington Wine Country, published by the Washington Wine 
Commission (1997 edition); and Connoisseur's Guide to California (July 
1997 edition).
    Several of these references describe Red Mountain as having 
distinctive qualities that are conducive to grape growing. Examples 
include:
     Decanter Magazine Guide to Oregon, Washington State and 
Idaho (Third Edition, 1996): ``The Red Mountain region, at the 
confluence of the Columbia, Snake and Yakima rivers, is a relatively 
warm area, and vineyards on upper slopes, again with south facing 
aspects, are yielding superior wine. . . . Evidence is mounting to 
indicate that Red Mountain may be one of the genuine special vineyard 
sites.''
     Wine Access, November 1998: ``Although most of Eastern 
Washington's vineyards bask in a hot, dry climate, Klipsun [an area 
vineyard] sits between a gap in the Rattlesnake and Red Mountains in 
the lower Yakima Valley that is regularly blessed with slightly cooler 
air that filters through the gap from Canada. This, along with its 
stingy soils best described as sandy, silty loam, and silty loam over 
gravel, helps to explain the elegant, concentrated nature of the 
Klipsun fruit.''
     Touring the Washington Wine Country, by the Washington 
Wine Commission (1997 edition): ``Many of the award-winning Cabernet 
Sauvignons that emerged from Washington's first quarter-century of fine 
winemaking used a percentage of their fruit from the vineyards sloping 
down from Red Mountain toward the Yakima River just above Benton City 
near Richland. This site offers good air drainage and light soils that 
encourage grapevines to seek nutrients via deep roots. Irrigated 
vineyards allow the grape growers to control vine vigor and to ease the 
vines into dormancy before winter.''

What Boundary Evidence Was Provided?

    The petitioner submitted as boundary evidence one U.S.G.S. map 
titled ``Benton City, Washington'' (1974) on which Red Mountain is 
prominently labeled. The proposed viticultural area starts on the 
ridgeline of Red Mountain and then sweeps down in a triangle toward the 
southwest, encompassing the southern slope of the mountain down to an 
elevation of 560 feet. There are currently 13 vineyards on Red 
Mountain, all on the southwestern slope and within the boundaries. The 
oldest of these vineyards was planted in 1975. According to the 
petitioner, these boundaries contain a grape growing area with a 
distinctive character based on soil, topography and climate.

What Evidence Relating to Geographical Features Has Been Provided?

    The geographical and climatic features of Red Mountain distinguish 
it from the surrounding Yakima Valley viticultural area.
     Soil: The petitioner stated that Red Mountain's soil 
associations (landscapes with distinctive proportional patterns of 
soils) are unique in the Yakima Valley viticultural area. In support of 
this statement, the petitioner submitted soil survey maps issued by the 
U.S. Department of Agriculture's Soil Conservation Service for the 
Yakima County and Benton County areas. Using these maps, the petitioner 
compared the soil associations for Red Mountain and other grape growing 
areas in the Yakima Valley viticultural area.
    According to the Benton County area soil survey maps, the dominant 
soil association of Red Mountain is Warden-Shano. A more specific 
analysis reveals that the following soils are present within the 
Warden-Shano association: Warden silt loam, Hezel loamy fine sand, 
Scooteney silt loam, and Kiona very stony silt loam. The petitioner 
compared this data with soil data for Gleed, Buena, and Sunnyside, 
other grape growing areas in Washington State within the Yakima Valley 
viticultural area. The soil associations of these areas are composed of 
Weirman-Ashue, Harwood-Gorst-Selah, Ritzville-

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Starbuck, Cowiche-Roza, Warden Esquatzel, and Quincy-Hezel. Thus, 
argued the petitioner, Red Mountain has a soil association that sets it 
apart from the rest of the Yakima Valley viticultural area.
     Climate: According to the petitioner, temperatures on Red 
Mountain tend to be hotter during the growing season than those in 
other areas of the Yakima Valley viticultural area.
    To support this contention, the petitioner submitted temperature 
data gathered from weather stations in the Washington Public 
Agriculture Weather System administered by Washington State University. 
He compared data from the weather stations of Benton City, Sunnyside, 
Buena, and Gleed, all located in the Yakima Valley viticultural area. 
The Benton City station is located on Red Mountain within the proposed 
viticultural area. A comparison of average annual air temperatures for 
the years 1995 through 1999 shows that the Benton City station 
consistently had the warmest temperatures. The average temperature 
difference between Benton City and Gleed, the coolest site, ranged from 
3.92 to 5.61 degrees.
    The petitioner stated that the difference of only a few degrees 
over the course of a growing season can produce dramatic results on the 
enological characteristics of wine. He further stated that Red Mountain 
is typically the first grape growing area in Washington State to 
harvest grapes because of its warmer temperatures. According to the 
petitioner, the warmer temperatures also help to produce fully mature, 
ripe grapes with exceptional balance that differ substantially in 
quality from those of other growing areas in the state.
     Topography: Existing vineyards in the viticultural area 
lie on the southwest-facing slope of Red Mountain. Elevation ranges of 
these vineyards are from approximately 600 to 1,000 feet. The 
petitioner noted that there is an immense gap separating the northwest 
end of Red Mountain from the southeast extremity of nearby Rattlesnake 
Ridge. He stated that cooler, continental air masses flow south from 
Canada through this gap. In addition, the Yakima River flows north 
around Red Mountain before joining the Columbia River, creating an air 
drainage system. The petitioner further stated that these 
characteristics, along with the predominantly southwest facing slope of 
Red Mountain, serve to flush the warm daytime air off the face of Red 
Mountain and replace it with a cooler air mass. According to the 
petitioner, the resulting growing environment yields grapes that are 
both high in sugar (due to warmer daytime temperatures) and high in 
acid (due to lower evening temperatures).

4. Regulatory Analyses and Notices

Does the Paperwork Reduction Act Apply to This Final 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 rule because no requirement to collect information is 
imposed.

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

    These regulations will not have a significant economic impact on a 
substantial number of small entities. ATF does not wish to give the 
impression that by approving the Red Mountain viticultural area it is 
endorsing wine produced in the area. ATF is approving the area as being 
viticulturally distinct from surrounding areas, not better than other 
areas. The establishment of the Red Mountain viticultural area merely 
allows its 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.
    Accordingly, a regulatory flexibility analysis is not required. The 
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.

Is This a Significant Regulatory Action as Defined by Executive Order 
12866?

    It has been determined that this 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 Jennifer Berry, 
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

Subpart C--Approved American Viticultural Areas

    Par. 2. Subpart C is amended by adding Sec. 9.167 to read as 
follows:


Sec. 9.167  Red Mountain

    (a) Name. The name of the viticultural area described in this 
section is ``Red Mountain.''
    (b) Approved Maps. The appropriate map for determining the 
boundaries of the Red Mountain viticultural area is one U.S.G.S. map 
titled ``Benton City, Washington'' 7.5 minute series (topographic), 
(1974).
    (c) Boundaries. The Red Mountain viticultural area is located 
within Benton County, Washington, entirely within the existing Yakima 
Valley viticultural area. The boundaries are as follows:

    (1) The northwest boundary beginning on this map at the 
intersection of the 560-foot elevation level and the aqueduct found 
northwest of the center of section 32.
    (2) Then following the aqueduct east to its endpoint at an 
elevation of approximately 650-feet, again in section 32.
    (3) From this point in a straight line southeast to the 1173-
foot peak, located southeast of the center of section 32.
    (4) From this peak southeast in a straight line across the lower 
southwest corner of section 33 to the 1253-foot peak located due 
north of the center of section 4.
    (5) Then in a straight line southeast to the 1410-foot peak 
located in the southwest corner of section 3.
    (6) From this peak in a straight line southeast to the border of 
sections 10 and 11 where the power line crosses these two sections. 
This intersection is northeast of the center of section 10 and 
northwest of the center of section 11.
    (7) From this point in a straight line south following the 
border of sections 10 and 11 to the corner of sections 10,11,15, and 
14. This point has an elevation of 684 feet.
    (8) From this point southwest in a diagonal to the 700-foot 
elevation line and then following this 700-foot elevation through 
Section 15 and into section 16.
    (9) Then following the 700-foot elevation line southwest \1/4\ 
mile in a southwest diagonal until it meets the creek bed.
    (10) Following the creek bed southwest through section 16, 
across the extreme southeast corner of section 17 and into the 
northeast corner of section 20 to a point

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where the creek bed meets the 560-foot elevation point.
    (11) From this 560-foot elevation point, running north along 
this elevation line through section 17, through section 8, through 
section 5 and through section 32 until meeting the beginning point 
at the aqueduct in section 32.

    Signed: March 6, 2001.

Bradley A. Buckles,
Director.
    Approved: March 15, 2001.
Timothy E. Skud,
Acting Deputy Assistant Secretary, (Regulatory, Tariff and Trade 
Enforcement).
[FR Doc. 01-8795 Filed 4-9-01; 8:45 am]
BILLING CODE 4810-31-P