Establishment of the Red Hill Douglas County, OR Viticultural Area (2001R-88P), 59996-60002 [05-20551]
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59996
Federal Register / Vol. 70, No. 198 / Friday, October 14, 2005 / Rules and Regulations
2,000-foot contour line to its
intersection with the eastern boundary
of section 2, T21N, R13W, immediately
south of State Route 162 (Dos Rios
Quadrangle); then
(2) Proceed straight south along the
section line, crossing the Middle Fork of
the Eel River, to the southeast corner of
section 11, T21N, R13W (Dos Rios
Quadrangle); then
(3) Proceed 0.9 mile straight west
along the southern boundary of section
11 to its intersection with the 2,000-foot
elevation line, T21N, R13W (Dos Rios
Quadrangle); then
(4) Proceed northerly then westerly
along the meandering 2,000-foot contour
line, crossing Big Water Canyon,
Doghouse Creek, and Eastman Creek, to
the contour line’s intersection with the
southern boundary of section 17, T21N,
R13W (Dos Rios Quadrangle); then
(5) Proceed 2.1 miles straight west
along the section line, crossing the Eel
River, to the section line’s intersection
with the 2,000-foot contour line along
the southern boundary of section 18,
T21N, R13W (Dos Rios Quadrangle);
then
(6) Proceed northerly along the
meandering 2,000-foot contour line,
crossing between the Dos Rios and
Laytonville maps (passing around the
Sims 2208 benchmark near the
southeast corner of section 36, T22N,
R14W), and, returning to the Laytonville
map, continue westerly to the contour
line’s intersection with the southwest
corner of section 36, T22N, R14W, at
Windy Point (Laytonville Quadrangle);
then
(7) Proceed 1.2 miles straight north
along the section line to its intersection
with the 2,000-foot elevation line,
section 25, T22N, R14W (Laytonville
Quadrangle); then
(8) Proceed northerly along the
meandering 2,000-foot elevation,
crossing between the Laytonville and
Iron Peak maps, and, returning to the
Iron Peak map, continue along the
contour line to its intersection with the
western boundary of section 14
immediately south of an unnamed
unimproved road, T22N, R14W (Iron
Peak Quadrangle); then
(9) Proceed straight north along the
section line to the southeast corner of
section 3, T22N, R14W (Iron Peak
Quadrangle); then
(10) Proceed straight west along the
section line to the southwest corner of
section 3, T22N, R14W (Iron Peak
Quadrangle); then
(11) Proceed straight north along the
section line to the northwest corner of
section 3, T22N, R14W (Iron Peak
Quadrangle); then
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(12) Proceed straight east along the
section line, crossing the Eel River, to
the northeast corner of section 2, which
coincides with the Round Valley Indian
Reservation’s southern boundary, T22N,
R14W (Iron Peak Quadrangle); then
(13) Proceed straight south along the
section line to the southeast corner of
section 2, T22N, R14W (Iron Peak
Quadrangle); then
(14) Proceed 0.3 mile straight east to
the section line’s intersection with the
2,000-foot elevation line along the
northern boundary of section 12, T22N,
R14W, west of Eberle Ridge, (Iron Peak
Quadrangle); and
(15) Proceed generally southeast along
the meandering 2,000-foot elevation,
crossing onto the Covelo West map and
continuing southerly along the 2,000foot contour line from Stoner Creek in
section 18, T22N, R13W, and, returning
to the Dos Rios map, continue
southeasterly along the 2,000-foot
contour line (crossing Goforth and
Poonkinny Creeks), to the beginning
point at the contour line’s intersection
with Poonkinny Road.
Signed: August 15, 2005.
Vicky I. McDowell,
Acting Administrator.
Approved: September 2, 2005.
Timothy E. Skud,
Deputy Assistant Secretary (Tax, Trade, and
Tariff Policy).
[FR Doc. 05–20546 Filed 10–13–05; 8:45 am]
BILLING CODE 4810–31–P
DEPARTMENT OF THE TREASURY
Alcohol and Tobacco Tax and Trade
Bureau
27 CFR Part 9
[T.D. TTB–35; Re: ATF Notices Nos. 960
and 966; TTB Notice Nos. 6 and 31]
RIN 1513–AA39
Establishment of the Red Hill Douglas
County, OR Viticultural Area (2001R–
88P)
Alcohol and Tobacco Tax and
Trade Bureau, Treasury.
ACTION: Final rule; Treasury decision.
AGENCY:
This Treasury decision
establishes the 5,500-acre Red Hill
Douglas County, Oregon viticultural
area. It is totally within the Umpqua
Valley viticultural area in Douglas
County, Oregon. We designate
viticultural areas to allow vintners to
better describe the origin of their wines
and to allow consumers to better
identify wines they may purchase.
EFFECTIVE DATE: November 14, 2005.
SUMMARY:
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N.A.
Sutton, Regulations and Rulings
Division, Alcohol and Tobacco Tax and
Trade Bureau, 925 Lakeville St., No.
158, Petaluma, California 94952;
telephone (415) 271–1254.
SUPPLEMENTARY INFORMATION:
FOR FURTHER INFORMATION CONTACT:
Background on Viticultural Areas
TTB Authority
Section 105(e) of the Federal Alcohol
Administration Act (the FAA Act, 27
U.S.C. 201 et seq.) requires that alcohol
beverage labels provide the consumer
with adequate information regarding a
product’s identity and prohibits the use
of misleading information on such
labels. The FAA Act also authorizes the
Secretary of the Treasury to issue
regulations to carry out its provisions.
The Alcohol and Tobacco Tax and
Trade Bureau (TTB) administers these
regulations.
Part 4 of the TTB regulations (27 CFR
part 4) allows the establishment of
definitive viticultural areas and the use
of their names as appellations of origin
on wine labels and in wine
advertisements. Part 9 of the TTB
regulations (27 CFR part 9) contains the
list of approved viticultural areas.
Definition
Section 4.25(e)(1)(i) of the TTB
regulations (27 CFR 4.25(e)(1)(i)) defines
a viticultural area for American wine as
a delimited grape-growing region
distinguishable by geographical
features, the boundaries of which have
been recognized and defined in part 9
of the regulations. These designations
allow vintners and consumers to
attribute a given quality, reputation, or
other characteristic of a wine made from
grapes grown in an area to its
geographical origin. The establishment
of viticultural areas allows vintners to
describe more accurately the origin of
their wines to consumers and helps
consumers to identify wines they may
purchase. Establishment of a viticultural
area is neither an approval nor an
endorsement by TTB of the wine
produced in that area.
Requirements
Section 4.25(e)(2) of the TTB
regulations outlines the procedure for
proposing an American viticultural area
and provides that any interested party
may petition TTB to establish a grapegrowing region as a viticultural area.
Section 9.3(b) of the TTB regulations
requires the petition to include—
• Evidence that the proposed
viticultural area is locally and/or
nationally known by the name specified
in the petition;
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• Historical or current evidence that
supports setting the boundary of the
proposed viticultural area as the
petition specifies;
• Evidence relating to the
geographical features, such as climate,
soils, elevation, and physical features,
that distinguish the proposed
viticultural area from surrounding areas;
• A description of the specific
boundary of the proposed viticultural
area, based on features found on United
States Geological Survey (USGS) maps;
and
• A copy of the appropriate USGS
map(s) with the proposed viticultural
area’s boundary prominently marked.
Red Hill Petition and Rulemakings
Background
The Bureau of Alcohol, Tobacco and
Firearms (ATF), the predecessor agency
to the Alcohol and Tobacco Tax and
Trade Bureau (TTB), received a petition
from Mr. Wayne Hitchings, a vineyard
owner in the Red Hill area of Douglas
County, Oregon, to establish the ‘‘Red
Hill’’ viticultural area.
The proposed 5,500-acre area is
entirely within the Umpqua Valley
viticultural area (27 CFR 9.89) and near
the small town of Yoncalla, in
northeastern Douglas County, Oregon.
At the time of the petition,
approximately 194 acres were devoted
to the cultivation of wine grapes, with
the majority planted to pinot noir.
Notices of Proposed Rulemaking and
Comments Received
Three notices were published
regarding the establishment of the
proposed viticultural area with the
name ‘‘Red Hill (Oregon),’’ and one
notice was published that proposed
establishing the viticultural area with
the name ‘‘Red Hill Douglas County,
Oregon.’’ The multiple notices stemmed
from requests for commenting-time
extensions, based on opposition to the
‘‘Red Hill (Oregon)’’ proposed name and
other concerns.
ATF Notice No. 960
ATF published the first notice of
proposed rulemaking regarding the
establishment of the Red Hill (Oregon)
viticultural area in the Federal Register
(67 FR 66079) as Notice No. 960 on
October 30, 2002. Prior to the
publication of Notice No. 960, which
requested public comments on the
proposed viticultural area, ATF decided
to include the geographical modifier
‘‘Oregon’’ with the ‘‘Red Hill’’ name,
making the proposed name ‘‘Red Hill
(Oregon).’’ Notice No. 960 explained
that both the ‘‘Red Hill’’ name and the
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Oregon-modified name were subject to
public comment.
Below, we summarize the evidence
presented in the petition and outlined
in Notice No. 960.
1. Name Evidence.
The Red Hill name has been used in
Douglas County, Oregon, for more than
150 years. The name ‘‘Red Hill’’ derives
from the color of the soil exclusive to
this area of Douglas County.
The USGS Drain, Oregon, map labels
Red Hill in sections 35, 26, and 23,
T23S/R5W. The map also identifies the
light duty Red Hill Road that meanders
through the region. Interstate 5 signage,
at exit 150 in northern Douglas County,
Oregon, includes the ‘‘Red Hill’’ name
and directs travelers to the area. The
USGS Geographic Names Information
System identifies Red Hill as an area in
Douglas County, Oregon. Douglas
County is located in southwest Oregon,
as noted on the Oregon-Washington
American Automobile Association State
Series map, published February 2003,
and on page 92, ‘‘Oregon,’’ of the
American Map 2002 Road Atlas.
Historically, the Applegate and Scott
families settled at the foot of Red Hill in
the mid-19th century. By 1879, settlers
established a school district in the Red
Hill area and built a schoolhouse on Red
Hill Road (identified in the southeast
corner of the USGS Drain, Oregon, map
in section 26, T23S/R5W). The school
district operated until 1943; the Red Hill
School now stands abandoned.
‘‘Douglas County Schools, A History
Outline,’’ by Larry Moulton, October
2000, includes a hand-drawn map and
directions to the ‘‘Red Hill School Site.’’
2. Boundary Evidence.
Red Hill parallels and lies to the east
of the Interstate 5 highway for
approximately 8.5 miles. The hill is
readily seen as a dominant geological
structure at the Red Hill exit, number
150, on Interstate 5. The hill runs in a
north-south direction, with
predominantly westward sloping.
The boundaries are based on the
hillside elevations and the preferred
viticultural site on the southwest slope.
The low elevation is the 800-foot
contour line, and the average high
elevation is 1,200 feet, the maximum
altitude for quality grape production in
the area. Areas below the 800-foot
elevation become valley terrain
consistent with the distinctive features
of the Umpqua Valley viticultural area.
Red Hill areas above the 1,200-foot
elevation and on the east side are
generally owned by a large timber
concern and are dedicated to reforesting efforts.
The dominant Jory series soils in the
proposed viticultural area are mostly
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deep and well drained to the 15-foot
depth. These soils are volcanic in origin
and are formed in residuum. Jory soils
are exclusive to the area of Douglas
County that lies within the proposed
viticultural area boundaries, but are also
found at the higher, adjacent elevations,
where climate conditions are not
suitable for viticulture.
3. Distinguishing Features.
a. Geology.
Red Hill is geologically part of the
Umpqua Formation, with numerous
rising domes that present an undulating
appearance. The landform is composed
of basalts similar to the volcanic rocks
on the Pacific Ocean floor.
b. Soil.
The Jory series, which predominates
the area, includes the deepest soils and
forms a uniform reservoir of texture and
depth across the proposed viticultural
area. Jory soil is found at 1,900 feet to
the north and 1,900 feet to the west of
the southwest corner of section 34, T23S
and R5W. A soil analysis of the Jory soil
in this area segregates it into six sections
when taken to a depth of 60 inches. The
first two sections (0 to 8 inches and 8
to 16 inches) are moderately acidic, silty
clay loam of a reddish brown color. The
third through the sixth sections (16 to
24 inches, 24 to 33 inches, 33 to 48
inches, and 48 to 60 inches,
respectively) are all strongly acidic. The
third section is dark reddish brown in
color, and the fourth through sixth
sections are dark red. Bedrock is found
at 60 inches or deeper.
Mr. Jerry Maul, a former Douglas
County extension agent, wrote in a letter
dated March 2, 2001, about the
appellation status of the Red Hill region
of Douglas County. He stated that Jory
soils found at Red Hill and in other
regions of Oregon are accepted as the
premier soils in the production of wine
grapes. To some extent, these soils can
be found to the north at Dundee Hills,
Oregon, and in the foothills west of
Corvallis, Oregon.
Mr. Walt Barton, an engineering
technician for the Douglas Soil and
Water Conservation District, stated in
his March 7, 2001, letter, ‘‘this soil [Jory
series] in Douglas County is unique to
the Red Hill District. * * * In contrast,
the soils in the surrounding area
[Umpqua Valley] are shallow or poorly
drained and are formed from
sedimentary rock.’’ He also stated that
the Jory series is deep, well drained, and
derived from bedrock.
Appearing less often on Red Hill, and
mixed within the Jory series, are the
Nekia, Philomath, and Dixonville series.
Like the Jory, these series are formed in
residual soil material from weathered
basalt and possess similar reddish soil
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color and drainage characteristics. The
noticeable difference is found in the
depth of the soils, with the Jory at 5 to
15 feet in depth and the other series
between 3 and 8 feet deep. These welldrained soils change in structure and
depth below the 800-foot elevation line,
delineating Red Hill on the western and
southern flanks, with sedimentary rocks
at the base.
c. Climate.
The Umpqua Valley and Douglas
County regional climate is largely
affected by the Pacific Ocean’s coastal
weather systems 50 miles to the west.
These storm systems are buffered by the
Callahans, a group of mountains
running north and south in the Coast
Range. The result is a moderate winter
climate in the proposed viticultural
area. During the summers, numerous
Pacific highs replace the winter storm
patterns with warm, dry weather. These
climate changes typically occur in May
and November.
Temperatures throughout the larger
Umpqua Valley viticultural area differ
greatly, creating numerous
microclimates. In the Red Hill area, a
portion of the Umpqua Valley
viticultural area, daytime growing
temperatures are moderated by
elevation and surrounding terrain, in
comparison to lower valley elevations
that experience warmer daytime
temperatures as high as 105 °F. Red
Hill’s average daytime temperature
during the growing season is 75 °F.
Temperature recordings at Oakland,
Sutherlin, and Roseburg, all located
along Interstate 5 in Douglas County,
can increase as much as 11 °F from Red
Hill daytime temperatures. Nighttime
Red Hill temperatures are typically 7 °F
lower than those in the surrounding
areas during the summer months.
Growing season temperature data,
collected between 1998 and 2000, came
from the areas of Red Hill and from the
Roseburg Regional Airport, which is
located 20 miles south of Red Hill.
During this 3-year collection period, the
average high was 74.5 °F for Roseburg
and 72.3 °F for Red Hill. The average
low was 50 °F for Roseburg and 46.4 °F
for Red Hill.
The Red Hill microclimate is one of
a large number of different climates
within a relatively short distance. The
climate changes are primarily caused by
associated landforms and elevation
differences. Within the elevation range
of the proposed viticultural area, the
geographical landform provides cold air
drainage that maintains frost-free grapegrowing seasons. The nearby vineyards
on the valley floor, without the benefit
of the vertical cold air drainage, have
frequent frosts.
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The Red Hill microclimate also
includes occasional fog in winter and
summer. The fog can be extreme,
completely covering the valley’s floor,
while Red Hill enjoys full sun. This fog
condition can also reverse itself, with
Red Hill being totally blanketed in fog,
while the valley floor enjoys fog-free
visibility.
Elevations of the proposed viticultural
area are generally at or above 800 feet,
with most of the terrain below 1,200
feet. This span of elevations has a
significant effect on growing conditions.
The hillside climate allows grapes to
mature at a slower rate, producing small
clusters of grapes with high acids and
intense flavors.
In his March 2, 2001, letter, Jerry
Maul explained that the Red Hill bloom
and ripening dates may be 12 days later
than the rest of the Umpqua Valley
viticultural area and 4 to 7 days ahead
of those of comparable varieties in the
Willamette Valley viticultural area. Mr.
Maul also stated that the Willamette
Valley viticultural area has 10 inches
more annual rain than the proposed
viticultural area.
Average rainfall in the Red Hill area
is 51 inches at the 1,000-foot elevation,
which contrasts with 40 inches at the
600-foot elevation of the Umpqua Valley
floor. Other areas close to Red Hill all
have significantly less rainfall, as noted
in the table below.
Location name (Oregon)
Red Hill Road ...............................
Oakland ........................................
Drain .............................................
Sutherlin ........................................
Roseburg ......................................
Winchester ....................................
Average
annual
rainfall
(inches)
51.53
40.86
45.70
41.81
32.44
34.99
Notice No. 960 requested public
comments by December 30, 2002, and
ATF received nine comments, one in
support, seven in opposition, and one
that requested an extension of the
comment period. The one supporting
commenter stated that the proposed
viticultural area is geologically and
climatically distinct from surrounding
areas.
All seven opposing commenters
expressed concern about the proposed
‘‘Red Hill (Oregon)’’ name. They cited
consumer confusion with other Red Hill
wine regions in Oregon, California, New
Zealand, and Australia. Several
commenters who use the geographical
term ‘‘Red Hills of Dundee’’ on wine
labels believed the petitioner would be
capitalizing on that established and
recognized name. A commenter holding
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the ‘‘Red Hill Vineyard’’ trademark in
California stated concerns about
potential brand name confusion.
The ‘‘Red Hill’’ name, according to a
commenter, is ‘‘common’’ and
‘‘generic.’’ Also, the ‘‘Oregon’’ modifier
is too expansive and encompassing, the
commenter continued, and suggested
Douglas County or Umpqua as
modifiers. The name ‘‘Red Hill’’ in
Douglas County is not well known
locally or nationally, according to
several opposing commenters. One
commenter questioned if the proposed
Red Hill (Oregon) area is located in the
Willamette Valley, in northwest Oregon,
to the north of Douglas County.
The Red Hill area in Douglas County,
according to several commenters, has no
history of grape-growing or established
viticulture reputation. They also stated
that climate, soil, and topography are
not distinguishable from the Red Hills
of Dundee, located in the Willamette
Valley in northwest Oregon. Another
commenter stated there is red soil ‘‘all
over the planet.’’
A commenter cited lack of
justification in selecting the elevation
range of 800 to 1,200 feet. Another
commenter noted the entire Red Hill
landform is not within the proposed
boundary, and that the proposed
viticultural area should be renamed to
reflect the portion of Red Hill within the
proposed boundary. The commenter
suggested the name ‘‘Pollack Creek,’’
which is the name of an estuary running
through the proposed area.
One commenter requested a 60-day
extension to the comment period for
more time to study the petition and
prepare a comment.
ATF Notice No. 966
In response to the commenter’s
request for an extension of the comment
period prescribed in Notice No. 960,
ATF on January 16, 2003, published in
the Federal Register (68 FR 2262) a
second notice, No. 966, regarding the
proposed establishment of the Red Hill
(Oregon) viticultural area. Notice No.
966 re-opened the comment period and
requested public comments by March
17, 2003. ATF received 16 comments,
with 12 in support, 2 in opposition, 1
that suggested a name change, and 1
that requested an extension of the
comment period.
The 12 supporting commenters, with
the majority living and growing grapes
in Douglas County, Oregon, stated their
belief that the Red Hill region is distinct
from the surrounding areas in soil,
rainfall, and temperatures. Also, they
stated that the geology and higher
elevations on the hillsides are unique to
the surrounding lower elevations.
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According to one supporting
commenter, the Red Hill terrain above
the 1,200-foot elevation line and on the
east side of the hill, located outside the
proposed boundary line, is not
conducive to successful viticulture. A
supporting Corvallis, Oregon, vineyard
owner stated that east-facing slopes
make poor vineyard sites.
An Oakland, Oregon, supporting
commenter stated that the proposed
viticultural area has cool night
temperatures, as compared to areas
outside the proposed boundary, and
enjoys a frost-free growing season. The
same commenter noted that the reddish
Jory soils are isolated on Red Hill from
the surrounding region.
A supporting Medford, Oregon,
horticultural advisor commented that
the reddish soil is composed of siltsized volcanic ash deposited by wind on
the hilltops, not in the valleys. The
commenter also stated that the marine
influence provides a cooler and wetter
climate, as compared to the surrounding
Umpqua Valley area. The horticultural
advisor stated his belief that the Red
Hill area is unique to the region and
deserves its own appellation.
A supporting Douglas County
extension agent commented that the
majority of the County grapes grow
between 400 and 800 feet in elevation
and that the elevation level of between
approximately 800 and 1,200 feet of the
proposed Red Hill viticultural area is
the maximum elevation for successful
ripening of grapes in the Umpqua
climatic zone. The extension agent
explained that increased winter and
spring rainfall levels in the Red Hill
region contrast to the rainfall of the
adjacent lower elevation valley vineyard
sites and that Red Hill has a very
distinctive Jory soil type.
A supporting general manager of the
Douglas County Farmers Co-op
commented that unique characteristics
of Red Hill include the soils,
microclimate, and rainfall. The general
manager also states that viticulture
occurs at higher elevations than those of
most other Douglas County grapegrowing locations.
According to several supporting
commenters, the Red Hill name is
appropriate and has historical
significance. The ‘‘Red Hill’’ sign at exit
150 of Interstate 5 in Oregon, according
to one commenter, is the only ‘‘Red
Hill’’ designation in that region of the
Interstate system. Another commenter
found humor in the idea of public
confusion among the ‘‘Red Hill,’’ ‘‘Red
Hills of California,’’ or the ‘‘Red Hills of
Dundee’’ geographical names. The
Douglas County extension agent
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confirmed the historical significance of
the ‘‘Red Hill’’ name for the area.
The two opposing commenters stated
their concern about the proposed ‘‘Red
Hill (Oregon)’’ name. They cited
consumer confusion with the Red Hills
of Dundee grape-growing region in the
Willamette Valley viticultural area of
northwest Oregon. A commenter
explained that the grapes from the
proposed viticultural area lack ‘‘Red
Hill’’ marketplace recognition. The same
commenter stated his belief that the
petition information refers to new
plantings that have not been
commercially harvested. In conjunction,
the commenter questioned the
distinguishing climatic features
evidence of the petition, as related to
the viticultural bloom and ripening
dates. The other commenter contended
that there is inadequate historical
viticultural evidence to support the
contention that the area produces
unique wines. Also, the commenter
stated that no current demand for wines
from the Red Hill area of Douglas
County, Oregon, exists.
One commenter suggested ‘‘Red Hill
of Oregon’’ as an alternate name to the
‘‘Red Hill (Oregon)’’ proposed name.
One commenter requested an
additional comment period of 60 days to
allow time for receipt and evaluation of
a copy of the original petition.
TTB Notice No. 6
In response to the commenter’s
request for an extension of the comment
period prescribed in Notice No. 966,
TTB, as the successor agency to ATF, on
April 24, 2003, published in the Federal
Register (68 FR 20090) Notice No. 6.
This third notice re-opened the
comment period regarding the proposed
establishment of the Red Hill (Oregon)
viticultural area. Notice No. 6 requested
public comments by May 27, 2003. TTB
received nine comments, three in
support, one in opposition, and five that
requested a public hearing.
The three comments in support of the
proposed Red Hill (Oregon) viticultural
area focused on the unique climate
conditions for viticulture. The owner of
an Oakland, Oregon, vineyard, located
about 10 miles south of Red Hill,
commented that Red Hill is distinct
from other growing areas in the Umpqua
Valley viticulture area. The distinctive
combination of soil, temperature, and
rainfall pattern, the commenter
continues, is not repeated elsewhere in
the Umpqua Valley. Another Oakland
vineyard owner concurred that the Red
Hill area is a unique viticultural area.
The managing partner of an Elkton,
Oregon, vineyard, located to the westnorthwest of Red Hill, commented, ‘‘I
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have been to this vineyard a number of
times and the soils, elevation, rainfall
and climate differentiate this site from
all others in the Umpqua [Valley]
AVA.’’
In addition, one supporting
commenter explained that early settlers
started using the ‘‘Red Hill’’ name and
that the petitioner did not coin the ‘‘Red
Hill’’ name for the purpose of
petitioning for the establishment of a
viticultural area.
The one opposing commenter of the
proposed Red Hill (Oregon) viticultural
area discussed possible trade and
consumer confusion related to the
proposed name of the viticultural area.
Two Oregon trademarks in use since
1970, ‘‘Red Hills Estate’’ and ‘‘Red Hills
Vineyard,’’ are held by a Willamette
Valley, Oregon, winery. The commenter
believes consumer confusion between
the two trademark names and the
proposed Red Hill (Oregon) viticultural
area names will occur. The commenter
suggested ‘‘Pollack Creek’’ as an
alternate viticultural area name.
The five commenters who requested a
public hearing wished to debate the
establishment of the proposed Red Hill
(Oregon) viticultural area. Specific
reasons included a belief that the name
Red Hill (Oregon) is not locally or
nationally recognized and a concern
that the proposed name could be
confused with the Red Hills of Dundee
grape-growing region in the Willamette
Valley of northwest Oregon. Also, the
commenters contended that the
proposed area lacks viticultural history.
TTB Notice No. 31
Based on the comments opposed to
the proposed ‘‘Red Hill (Oregon)’’ name,
TTB decided to solicit comments on
‘‘Red Hill Douglas County, Oregon’’ as
a new name for the proposed
viticultural area. Accordingly, on
February 2, 2005, TTB published in the
Federal Register (70 FR 5397) Notice
No. 31, which included a revised
boundary description in the proposed
regulatory text and re-opened the period
for public comments through March 4,
2005. TTB revised the boundary
description to provide more detail for
ease in determining the proposed lines
on the USGS maps. TTB received no
comments in response to this notice.
Discussion of Comments
As indicated above, ATF and TTB
received a total of 34 public comments
in response to the three proposed Red
Hill (Oregon) notices and none in
response to the notice proposing the
‘‘Red Hill Douglas County, Oregon’’
name. Opposing commenters supported
their positions by addressing a number
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of points, which we summarize and
respond to below.
• Lack of name recognition,
specifically, that the name Red Hill
(Oregon) is not locally or nationally
recognized.
TTB disagrees with this contention.
As noted in Notice No. 960, the Red Hill
name, based on reddish soils, has been
used in Douglas County, Oregon, for
over 150 years. Today, use of the name
‘‘Red Hill’’ continues to identify the Red
Hill landform and farmlands in the area
and is used on the Interstate 5 exit sign
number 150. The USGS Drain, Oregon,
map includes in section 26, T23S/R5W,
a number of references to place and road
names that include the words ‘‘Red
Hill.’’
• Name confusion (with other areas,
brands, and trademarks). Many
commenters expressed concern that the
name is easily confused with other
names, such as the Red Hills (plural)
area of Willamette Valley, Red Hills of
Dundee (Oregon), Red Hills (New
Zealand), Red Hills Estate (Oregon
trademark), Red Hills Vineyard (Oregon
trademark), and Red Hill Vineyard
(California trademark).
TTB agrees that establishing a
viticultural area named Red Hill
(Oregon) could create potential conflicts
and/or confusion with other
geographical area, brand, and trademark
names used by wine industry members.
As stated in Notice No. 31, TTB
determined that the proposed ‘‘Red Hill
Douglas County, Oregon’’ name
adequately describes and geographically
identifies the proposed viticultural area
and does not create confusion with
other geographical areas or create
conflict with other wine industry brand
or trademark names currently in use.
• Insufficient boundary evidence.
Several opposing commenters stated the
boundaries do not reflect the
geographical area known as Red Hill in
Douglas County, Oregon.
TTB notes that the petition and Notice
No. 960 both detail the rationale for the
boundary line determination. Although
portions of the Red Hill geographical
formation are outside the boundaries,
the area conducive to successful
viticulture, based on soil and climate
evidence, is included.
After careful consideration, TTB has
determined that the proposed Red Hill
Douglas County, Oregon viticultural
area boundary lines are appropriate and
accurate.
• Lack of justification in selecting the
elevation range of 800 to 1,200 feet.
Several commenters questioned the
use of the approximate 800- to 1,200foot elevation lines for the proposed
boundaries.
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TTB believes the specified elevation
is correct. One factor that supports the
upper range of elevation, as presented
by the petitioner and confirmed in
public comments, is the timber
industry’s extensive land ownership on
Red Hill. Much of the land at the higher
elevations, above about 1,200 feet in
elevation and to the east side of the hill,
beyond the proposed boundaries, is
dedicated to reforesting. The Douglas
County extension agent Steve Renquist
explained that the proposed upper
boundary, at the 1,200-foot contour line,
is the maximum elevation for successful
grape-ripening in the region.
TTB, therefore, considers the 800- to
1,200-foot elevation band to be a
defining feature of this proposed
viticultural area.
• Insufficient distinguishing features,
for example, climate (especially relating
to the viticultural bloom and ripening
dates), soil, and topography.
The petition stated that the area’s
growing season temperatures, including
those of spring and fall, are warmer
during the day and cooler at night,
which contrasts to the surrounding
Umpqua region. According to a former
Douglas County extension agent, Red
Hill bloom and ripening dates vary from
the rest of the Umpqua Valley
viticultural area and those of
comparable varieties in the Willamette
Valley viticultural area.
The petition also stated that,
according to horticultural advisor Brian
Wolf, the Red Hill climate enjoys a
marine influence, generally cooler and
wetter, than the surrounding areas.
Also, it contrasts to the Willamette
Valley to the north, which has more
rainfall and cooler temperatures than
Red Hill. From a climatic perspective,
including growing temperatures and
solar radiation, commenters explain that
the Red Hill area’s east-facing slopes
and elevations above 1,200 feet are not
conducive to successful viticulture, and,
thus, are outside the boundaries of the
proposed viticultural area. Moreover,
the proposed Red Hill Douglas County,
Oregon viticultural area experiences
distinctive rainfall and temperature
patterns, a relatively frost-free growing
season, a west-facing orientation and its
related solar exposure, and a marine
influence, as commenters describe. The
commenters opposed to the proposed
viticultural area provided no specific
data to refute the information provided
in the petition in this regard.
Regarding the reddish soil of this
proposed viticultural area, horticultural
advisor Brian Wolf also stated,
according to the petition, that it is not
clay, but silt-sized volcanic ash
deposited by wind. This red volcanic
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Sfmt 4700
ash exists only on the tops of hills, not
at the lower elevation valleys, and has
extraordinary water-holding capability
that facilitates viticulture. In addition, a
vineyard owner 4 miles south of Red
Hill describes his soil as poorly draining
silt clay mudstone, which contrasts to
the deep, red, well-drained soil in the
proposed viticultural area. Finally, the
letter from engineering technician Walt
Barton that was submitted with the
petition stated that, within Douglas
County, the red Jory series is unique to
the Red Hill area. Areas surrounding the
Red Hill region, Mr. Barton explained,
have contrasting shallow or poorly
drained soils of sedimentary origin,
unlike the Red Hill Jory series soils that
are well drained and derive from
bedrock.
TTB believes that these statements
support the conclusion that the red Jory
soils of the Red Hill area are a unique
and distinguishing factor in that area of
the Umpqua Valley and Douglas
County, Oregon. The fact that there is
red soil ‘‘all over the planet,’’ as claimed
by one opposing commenter, does not
deny the significance of the soil found
in the proposed viticultural area.
As regards topography, the petition
pointed out that the hillside climate
allows grapes to mature at a slower rate,
producing small clusters of grapes with
high acids and intense flavors.
Therefore, the hillside elevations of the
proposed viticultural area are
distinctive. The proposed boundaries
are generally limited by the 1,200-foot
upper elevation and by the east-facing
hillside slopes where viticulture tends
to be less successful. Also, below the
800-foot proposed elevation boundary
line, the area trends to the Umpqua
Valley growing environment. The
opposing commenters provided no
specific information to refute these
statements.
• Lack of grape-growing history and
established viticulture reputation.
Several opposing commenters voiced
concern about the lack of viticultural
history of the Red Hill area in Douglas
County, Oregon, and a lack of
commercial grape harvesting. They
stated that the area does not have a
proven record of producing unique
wines. Another commenter stated that
there is little commercial demand for
wines originating from this area.
TTB notes that the regulations
pertaining to the establishment of
viticultural areas do not require the
existence of a substantial viticultural
history, a production of unique wines,
or a demand for wines originating in the
proposed viticultural area. Therefore, in
evaluating a petition, TTB does not
consider as determining factors the
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Federal Register / Vol. 70, No. 198 / Friday, October 14, 2005 / Rules and Regulations
questions of whether the viticulture of
the proposed area is new or established,
whether the area is producing unique
wines, or whether wine from the area is
in demand in the marketplace.
• Need for public hearings.
Five opposing commenters requested
a public hearing to openly discuss the
petition and present oral arguments.
However, TTB determined that the
written comments received in response
to Notice Nos. 960, 966, and 6, together
with the information submitted with the
petition, provided adequate
information, evidence, and
documentation on which to base a
decision.
27 CFR 4.25(e)(3). If the wine is not
eligible to use the viticultural area name
as an appellation of origin and that
name appears in the brand name, then
the label is not in compliance and the
bottler must change the brand name and
obtain approval of a new label.
Similarly, if the viticultural area name
appears in another reference on the
label in a misleading manner, the bottler
would have to obtain approval of a new
label.
Different rules apply if a wine has a
brand name containing a viticultural
area name that was used as a brand
name on a label approved before July 7,
1986. See 27 CFR 4.39(i)(2) for details.
TTB Finding
After careful review of the petition
and the public comments, TTB believes
that the evidence submitted with the
petition supports the establishment of
the proposed viticultural area under the
name proposed in Notice No. 31.
Therefore, under the authority of the
Federal Alcohol Administration Act and
part 4 of our regulations, we establish
the ‘‘Red Hill Douglas County, Oregon’’
viticultural area in Douglas County,
Oregon, effective 30 days from this
document’s publication date.
Regulatory Flexibility Act
We certify that this regulation will not
have a significant economic impact on
a substantial number of small entities.
This regulation imposes no new
reporting, recordkeeping, or other
administrative requirement. Any benefit
derived from the use of a viticultural
area name is the result of a proprietor’s
efforts and consumer acceptance of
wines from that area. Therefore, no
regulatory flexibility analysis is
required.
Boundary Description
See the narrative boundary
description of the viticultural area in the
regulatory text published at the end of
this notice.
Executive Order 12866
This rule is not a significant
regulatory action as defined by
Executive Order 12866 (58 FR 51735).
Therefore, it requires no regulatory
assessment.
Maps
The petitioner provided the required
maps, and we list them below in the
regulatory text.
Drafting Information
Nancy Sutton, Regulations and
Procedures Division, drafted this
document.
Impact on Current Wine Labels
Part 4 of the TTB regulations prohibits
any label reference on a wine that
indicates or implies an origin other than
the wine’s true place of origin. With the
establishment of this viticultural area
and its inclusion in part 9 of the TTB
regulations, its name, ‘‘Red Hill Douglas
County, Oregon’’ is recognized as a
name of viticultural significance.
Consequently, wine bottlers using ‘‘Red
Hill Douglas County, Oregon’’ in a
brand name, including a trademark, or
in another label reference as to the
origin of the wine, must ensure that the
product is eligible to use the viticultural
area’s name as an appellation of origin.
For a wine to be eligible to use as an
appellation of origin the name of a
viticultural area specified in part 9 of
the TTB regulations, at least 85 percent
of the grapes used to make the wine
must have been grown within the area
represented by that name, and the wine
must meet the other conditions listed in
List of Subjects in 27 CFR Part 9
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15:42 Oct 13, 2005
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Wine.
The Regulatory Amendment
For the reasons discussed in the
preamble, we amend 27 CFR, chapter 1,
part 9 as follows:
I
PART 9—AMERICAN VITICULTURAL
AREAS
1. The authority citation for part 9
continues to read as follows:
I
Authority: 27 U.S.C. 205.
2. Amend subpart C by adding § 9.190
to read as follows:
I
Subpart C—Approved American
Viticultural Areas
§ 9.190
Red Hill Douglas County, Oregon.
(a) Name. The name of the viticultural
area described in this section is ‘‘Red
Hill Douglas County, Oregon’’. For
purposes of part 4 of this chapter, ‘‘Red
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Fmt 4700
Sfmt 4700
60001
Hill Douglas County, Oregon’’ is a term
of viticultural significance.
(b) Approved Maps. The appropriate
maps for determining the boundary of
the Red Hill Douglas County, Oregon
viticultural area are three United States
Geological Survey (USGS), 1:24,000
scale, topographic maps. They are:
(1) Sutherlin, OR (Provisional edition
1988);
(2) Scotts Valley, OR (Provisional
edition 1987); and
(3) Yoncalla, OR (Provisional edition
1987).
(c) Boundary. The Red Hill Douglas
County, Oregon viticultural area is
located in Douglas County, Oregon, east
of Interstate 5 near the hamlet of Rice
Hill, between the villages of Yoncalla
and Oakland.
(1) Beginning on the Yoncalla map
along the southern boundary of section
35, T23S/R5W, at the point where a
pipeline crosses the T23S/T24S
township line, proceed due west 0.8
mile along the T23S/T24S township line
to its intersection with the 800-foot
contour line just west of Pollock Creek
in section 34, T23S/R5W (Yoncalla
Quadrangle); then
(2) Proceed southerly along the
meandering 800-foot contour line, cross
onto the Sutherlin map in section 10,
T24S/R5W, and continue westerly along
the 800-foot contour line to its first
intersection with the eastern boundary
of section 8, T24S/R5W (Sutherlin
Quadrangle); then
(3) Proceed northerly along the
meandering 800-foot contour line,
return to the Yoncalla map in section 9,
T23S/R5W, and continue northerly
along the 800-foot contour line to its
intersection with the T23S/T24S
township line very near the northwest
corner of section 4, T24S/R5W
(Yoncalla Quadrangle); then
(4) Proceed northeasterly along the
800-foot contour line, cross Wilson
Creek in the northern portion of section
23, T23S/R5W, pass onto the Scotts
Valley map at Section 14, T23S/R5W,
and continue northeasterly along the
800-foot contour line to its intersection
with the R4W/R5W range line, which at
that point is also the eastern boundary
of section 1, T23S/R5W (Scotts Valley
Quadrangle); then
(5) Proceed southwesterly along the
800-foot contour line, re-cross the R4W/
R5W range line, and continue to the
second intersection of the 800-foot
contour line and the pipeline in section
1, T23/R5W (Scotts Valley Quadrangle);
then
(6) Proceed 5.75 miles southwesterly
along the pipeline, cross Wilson Creek
in section 24, T23S/R5W, return to the
Yoncalla map in section 26, T23S/R5W,
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and continue southwesterly along the
pipeline to the point of beginning at the
intersection of the pipeline intersection
and the T23S/T24S township line in
section 35, T23S/R5W (Yoncalla
Quadrangle).
Signed: July 22, 2005.
John J. Manfreda,
Administrator.
Approved: September 2, 2005.
Timothy E. Skud,
Deputy Assistant Secretary (Tax, Trade, and
Tariff Policy).
[FR Doc. 05–20551 Filed 10–13–05; 8:45 am]
BILLING CODE 4810–31–P
PENSION BENEFIT GUARANTY
CORPORATION
29 CFR Parts 4022 and 4044
Benefits Payable in Terminated SingleEmployer Plans; Allocation of Assets
in Single-Employer Plans; Interest
Assumptions for Valuing and Paying
Benefits
Pension Benefit Guaranty
Corporation.
ACTION: Final rule.
AGENCY:
SUMMARY: The Pension Benefit Guaranty
Corporation’s regulations on Benefits
Payable in Terminated Single-Employer
Plans and Allocation of Assets in
Single-Employer Plans prescribe interest
assumptions for valuing and paying
benefits under terminating singleemployer plans. This final rule amends
the regulations to adopt interest
assumptions for plans with valuation
dates in November 2005. Interest
assumptions are also published on the
PBGC’s Web site (https://www.pbgc.gov).
DATES: Effective November 1, 2005.
FOR FURTHER INFORMATION CONTACT:
Catherine B. Klion, Attorney, Legislative
and Regulatory Department, Pension
Benefit Guaranty Corporation, 1200 K
Street, NW., Washington, DC 20005,
202–326–4024. (TTY/TDD users may
call the Federal relay service toll-free at
1–800–877–8339 and ask to be
connected to 202–326–4024.)
SUPPLEMENTARY INFORMATION: The
PBGC’s regulations prescribe actuarial
assumptions—including interest
assumptions—for valuing and paying
plan benefits of terminating singleemployer plans covered by title IV of
Rate set
the Employee Retirement Income
Security Act of 1974. The interest
assumptions are intended to reflect
current conditions in the financial and
annuity markets.
Three sets of interest assumptions are
prescribed: (1) a set for the valuation of
benefits for allocation purposes under
section 4044 (found in Appendix B to
Part 4044), (2) a set for the PBGC to use
to determine whether a benefit is
payable as a lump sum and to determine
lump-sum amounts to be paid by the
PBGC (found in Appendix B to Part
4022), and (3) a set for private-sector
pension practitioners to refer to if they
wish to use lump-sum interest rates
determined using the PBGC’s historical
methodology (found in Appendix C to
Part 4022).
This amendment (1) adds to
Appendix B to Part 4044 the interest
assumptions for valuing benefits for
allocation purposes in plans with
valuation dates during November 2005,
(2)adds to Appendix B to Part 4022 the
interest assumptions for the PBGC to
use for its own lump-sum payments in
plans with valuation dates during
November 2005, and (3) adds to
Appendix C to Part 4022 the interest
assumptions for private-sector pension
practitioners to refer to if they wish to
use lump-sum interest rates determined
using the PBGC’s historical
methodology for valuation dates during
November 2005.
For valuation of benefits for allocation
purposes, the interest assumptions that
the PBGC will use (set forth in
Appendix B to part 4044) will be 3.70
percent for the first 20 years following
the valuation date and 4.75 percent
thereafter. These interest assumptions
represent an increase (from those in
effect for October 2005) of 0.20 percent
for the first 20 years following the
valuation date and are otherwise
unchanged.
The interest assumptions that the
PBGC will use for its own lump-sum
payments (set forth in Appendix B to
part 4022) will be 2.50 percent for the
period during which a benefit is in pay
status and 4.00 percent during any years
preceding the benefit’s placement in pay
status. These interest assumptions
represent an increase (from those in
effect for October 2005) of 0.25 percent
for the period during which a benefit is
in pay status and are otherwise
unchanged.
For plans with a valuation
date
On or after
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15:42 Oct 13, 2005
Jkt 208001
PO 00000
Before
Frm 00016
Immediate
annuity rate
(percent)
Fmt 4700
Sfmt 4700
For private-sector payments, the
interest assumptions (set forth in
Appendix C to part 4022) will be the
same as those used by the PBGC for
determining and paying lump sums (set
forth in Appendix B to part 4022).
The PBGC has determined that notice
and public comment on this amendment
are impracticable and contrary to the
public interest. This finding is based on
the need to determine and issue new
interest assumptions promptly so that
the assumptions can reflect, as
accurately as possible, current market
conditions.
Because of the need to provide
immediate guidance for the valuation
and payment of benefits in plans with
valuation dates during November 2005,
the PBGC finds that good cause exists
for making the assumptions set forth in
this amendment effective less than 30
days after publication.
The PBGC has determined that this
action is not a ‘‘significant regulatory
action’’ under the criteria set forth in
Executive Order 12866.
Because no general notice of proposed
rulemaking is required for this
amendment, the Regulatory Flexibility
Act of 1980 does not apply. See 5 U.S.C.
601(2).
List of Subjects
29 CFR Part 4022
Employee benefit plans, Pension
insurance, Pensions, Reporting and
recordkeeping requirements.
29 CFR Part 4044
Employee benefit plans, Pension
insurance, Pensions.
I In consideration of the foregoing, 29
CFR parts 4022 and 4044 are amended
as follows:
PART 4022—BENEFITS PAYABLE IN
TERMINATED SINGLE-EMPLOYER
PLANS
1. The authority citation for part 4022
continues to read as follows:
I
Authority: 29 U.S.C. 1302, 1322, 1322b,
1341(c)(3)(D), and 1344.
2. In appendix B to part 4022, Rate Set
145, as set forth below, is added to the
table.
I
Appendix B to Part 4022—Lump Sum
Interest Rates For PBGC Payments
*
*
*
*
*
Deferred annuities
(percent)
i1
i2
E:\FR\FM\14OCR1.SGM
i3
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n2
]]>Agencies
[Federal Register Volume 70, Number 198 (Friday, October 14, 2005)]
[Rules and Regulations]
[Pages 59996-60002]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-20551]
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Alcohol and Tobacco Tax and Trade Bureau
27 CFR Part 9
[T.D. TTB-35; Re: ATF Notices Nos. 960 and 966; TTB Notice Nos. 6 and
31]
RIN 1513-AA39
Establishment of the Red Hill Douglas County, OR Viticultural
Area (2001R-88P)
AGENCY: Alcohol and Tobacco Tax and Trade Bureau, Treasury.
ACTION: Final rule; Treasury decision.
-----------------------------------------------------------------------
SUMMARY: This Treasury decision establishes the 5,500-acre Red Hill
Douglas County, Oregon viticultural area. It is totally within the
Umpqua Valley viticultural area in Douglas County, Oregon. We designate
viticultural areas to allow vintners to better describe the origin of
their wines and to allow consumers to better identify wines they may
purchase.
EFFECTIVE DATE: November 14, 2005.
FOR FURTHER INFORMATION CONTACT: N.A. Sutton, Regulations and Rulings
Division, Alcohol and Tobacco Tax and Trade Bureau, 925 Lakeville St.,
No. 158, Petaluma, California 94952; telephone (415) 271-1254.
SUPPLEMENTARY INFORMATION:
Background on Viticultural Areas
TTB Authority
Section 105(e) of the Federal Alcohol Administration Act (the FAA
Act, 27 U.S.C. 201 et seq.) requires that alcohol beverage labels
provide the consumer with adequate information regarding a product's
identity and prohibits the use of misleading information on such
labels. The FAA Act also authorizes the Secretary of the Treasury to
issue regulations to carry out its provisions. The Alcohol and Tobacco
Tax and Trade Bureau (TTB) administers these regulations.
Part 4 of the TTB regulations (27 CFR part 4) allows the
establishment of definitive viticultural areas and the use of their
names as appellations of origin on wine labels and in wine
advertisements. Part 9 of the TTB regulations (27 CFR part 9) contains
the list of approved viticultural areas.
Definition
Section 4.25(e)(1)(i) of the TTB regulations (27 CFR 4.25(e)(1)(i))
defines a viticultural area for American wine as a delimited grape-
growing region distinguishable by geographical features, the boundaries
of which have been recognized and defined in part 9 of the regulations.
These designations allow vintners and consumers to attribute a given
quality, reputation, or other characteristic of a wine made from grapes
grown in an area to its geographical origin. The establishment of
viticultural areas allows vintners to describe more accurately the
origin of their wines to consumers and helps consumers to identify
wines they may purchase. Establishment of a viticultural area is
neither an approval nor an endorsement by TTB of the wine produced in
that area.
Requirements
Section 4.25(e)(2) of the TTB regulations outlines the procedure
for proposing an American viticultural area and provides that any
interested party may petition TTB to establish a grape-growing region
as a viticultural area. Section 9.3(b) of the TTB regulations requires
the petition to include--
Evidence that the proposed viticultural area is locally
and/or nationally known by the name specified in the petition;
[[Page 59997]]
Historical or current evidence that supports setting the
boundary of the proposed viticultural area as the petition specifies;
Evidence relating to the geographical features, such as
climate, soils, elevation, and physical features, that distinguish the
proposed viticultural area from surrounding areas;
A description of the specific boundary of the proposed
viticultural area, based on features found on United States Geological
Survey (USGS) maps; and
A copy of the appropriate USGS map(s) with the proposed
viticultural area's boundary prominently marked.
Red Hill Petition and Rulemakings
Background
The Bureau of Alcohol, Tobacco and Firearms (ATF), the predecessor
agency to the Alcohol and Tobacco Tax and Trade Bureau (TTB), received
a petition from Mr. Wayne Hitchings, a vineyard owner in the Red Hill
area of Douglas County, Oregon, to establish the ``Red Hill''
viticultural area.
The proposed 5,500-acre area is entirely within the Umpqua Valley
viticultural area (27 CFR 9.89) and near the small town of Yoncalla, in
northeastern Douglas County, Oregon. At the time of the petition,
approximately 194 acres were devoted to the cultivation of wine grapes,
with the majority planted to pinot noir.
Notices of Proposed Rulemaking and Comments Received
Three notices were published regarding the establishment of the
proposed viticultural area with the name ``Red Hill (Oregon),'' and one
notice was published that proposed establishing the viticultural area
with the name ``Red Hill Douglas County, Oregon.'' The multiple notices
stemmed from requests for commenting-time extensions, based on
opposition to the ``Red Hill (Oregon)'' proposed name and other
concerns.
ATF Notice No. 960
ATF published the first notice of proposed rulemaking regarding the
establishment of the Red Hill (Oregon) viticultural area in the Federal
Register (67 FR 66079) as Notice No. 960 on October 30, 2002. Prior to
the publication of Notice No. 960, which requested public comments on
the proposed viticultural area, ATF decided to include the geographical
modifier ``Oregon'' with the ``Red Hill'' name, making the proposed
name ``Red Hill (Oregon).'' Notice No. 960 explained that both the
``Red Hill'' name and the Oregon-modified name were subject to public
comment.
Below, we summarize the evidence presented in the petition and
outlined in Notice No. 960.
1. Name Evidence.
The Red Hill name has been used in Douglas County, Oregon, for more
than 150 years. The name ``Red Hill'' derives from the color of the
soil exclusive to this area of Douglas County.
The USGS Drain, Oregon, map labels Red Hill in sections 35, 26, and
23, T23S/R5W. The map also identifies the light duty Red Hill Road that
meanders through the region. Interstate 5 signage, at exit 150 in
northern Douglas County, Oregon, includes the ``Red Hill'' name and
directs travelers to the area. The USGS Geographic Names Information
System identifies Red Hill as an area in Douglas County, Oregon.
Douglas County is located in southwest Oregon, as noted on the Oregon-
Washington American Automobile Association State Series map, published
February 2003, and on page 92, ``Oregon,'' of the American Map 2002
Road Atlas.
Historically, the Applegate and Scott families settled at the foot
of Red Hill in the mid-19th century. By 1879, settlers established a
school district in the Red Hill area and built a schoolhouse on Red
Hill Road (identified in the southeast corner of the USGS Drain,
Oregon, map in section 26, T23S/R5W). The school district operated
until 1943; the Red Hill School now stands abandoned. ``Douglas County
Schools, A History Outline,'' by Larry Moulton, October 2000, includes
a hand-drawn map and directions to the ``Red Hill School Site.''
2. Boundary Evidence.
Red Hill parallels and lies to the east of the Interstate 5 highway
for approximately 8.5 miles. The hill is readily seen as a dominant
geological structure at the Red Hill exit, number 150, on Interstate 5.
The hill runs in a north-south direction, with predominantly westward
sloping.
The boundaries are based on the hillside elevations and the
preferred viticultural site on the southwest slope. The low elevation
is the 800-foot contour line, and the average high elevation is 1,200
feet, the maximum altitude for quality grape production in the area.
Areas below the 800-foot elevation become valley terrain consistent
with the distinctive features of the Umpqua Valley viticultural area.
Red Hill areas above the 1,200-foot elevation and on the east side are
generally owned by a large timber concern and are dedicated to re-
foresting efforts.
The dominant Jory series soils in the proposed viticultural area
are mostly deep and well drained to the 15-foot depth. These soils are
volcanic in origin and are formed in residuum. Jory soils are exclusive
to the area of Douglas County that lies within the proposed
viticultural area boundaries, but are also found at the higher,
adjacent elevations, where climate conditions are not suitable for
viticulture.
3. Distinguishing Features.
a. Geology.
Red Hill is geologically part of the Umpqua Formation, with
numerous rising domes that present an undulating appearance. The
landform is composed of basalts similar to the volcanic rocks on the
Pacific Ocean floor.
b. Soil.
The Jory series, which predominates the area, includes the deepest
soils and forms a uniform reservoir of texture and depth across the
proposed viticultural area. Jory soil is found at 1,900 feet to the
north and 1,900 feet to the west of the southwest corner of section 34,
T23S and R5W. A soil analysis of the Jory soil in this area segregates
it into six sections when taken to a depth of 60 inches. The first two
sections (0 to 8 inches and 8 to 16 inches) are moderately acidic,
silty clay loam of a reddish brown color. The third through the sixth
sections (16 to 24 inches, 24 to 33 inches, 33 to 48 inches, and 48 to
60 inches, respectively) are all strongly acidic. The third section is
dark reddish brown in color, and the fourth through sixth sections are
dark red. Bedrock is found at 60 inches or deeper.
Mr. Jerry Maul, a former Douglas County extension agent, wrote in a
letter dated March 2, 2001, about the appellation status of the Red
Hill region of Douglas County. He stated that Jory soils found at Red
Hill and in other regions of Oregon are accepted as the premier soils
in the production of wine grapes. To some extent, these soils can be
found to the north at Dundee Hills, Oregon, and in the foothills west
of Corvallis, Oregon.
Mr. Walt Barton, an engineering technician for the Douglas Soil and
Water Conservation District, stated in his March 7, 2001, letter,
``this soil [Jory series] in Douglas County is unique to the Red Hill
District. * * * In contrast, the soils in the surrounding area [Umpqua
Valley] are shallow or poorly drained and are formed from sedimentary
rock.'' He also stated that the Jory series is deep, well drained, and
derived from bedrock.
Appearing less often on Red Hill, and mixed within the Jory series,
are the Nekia, Philomath, and Dixonville series. Like the Jory, these
series are formed in residual soil material from weathered basalt and
possess similar reddish soil
[[Page 59998]]
color and drainage characteristics. The noticeable difference is found
in the depth of the soils, with the Jory at 5 to 15 feet in depth and
the other series between 3 and 8 feet deep. These well-drained soils
change in structure and depth below the 800-foot elevation line,
delineating Red Hill on the western and southern flanks, with
sedimentary rocks at the base.
c. Climate.
The Umpqua Valley and Douglas County regional climate is largely
affected by the Pacific Ocean's coastal weather systems 50 miles to the
west. These storm systems are buffered by the Callahans, a group of
mountains running north and south in the Coast Range. The result is a
moderate winter climate in the proposed viticultural area. During the
summers, numerous Pacific highs replace the winter storm patterns with
warm, dry weather. These climate changes typically occur in May and
November.
Temperatures throughout the larger Umpqua Valley viticultural area
differ greatly, creating numerous microclimates. In the Red Hill area,
a portion of the Umpqua Valley viticultural area, daytime growing
temperatures are moderated by elevation and surrounding terrain, in
comparison to lower valley elevations that experience warmer daytime
temperatures as high as 105 [deg]F. Red Hill's average daytime
temperature during the growing season is 75 [deg]F. Temperature
recordings at Oakland, Sutherlin, and Roseburg, all located along
Interstate 5 in Douglas County, can increase as much as 11 [deg]F from
Red Hill daytime temperatures. Nighttime Red Hill temperatures are
typically 7 [deg]F lower than those in the surrounding areas during the
summer months.
Growing season temperature data, collected between 1998 and 2000,
came from the areas of Red Hill and from the Roseburg Regional Airport,
which is located 20 miles south of Red Hill. During this 3-year
collection period, the average high was 74.5 [deg]F for Roseburg and
72.3 [deg]F for Red Hill. The average low was 50 [deg]F for Roseburg
and 46.4 [deg]F for Red Hill.
The Red Hill microclimate is one of a large number of different
climates within a relatively short distance. The climate changes are
primarily caused by associated landforms and elevation differences.
Within the elevation range of the proposed viticultural area, the
geographical landform provides cold air drainage that maintains frost-
free grape-growing seasons. The nearby vineyards on the valley floor,
without the benefit of the vertical cold air drainage, have frequent
frosts.
The Red Hill microclimate also includes occasional fog in winter
and summer. The fog can be extreme, completely covering the valley's
floor, while Red Hill enjoys full sun. This fog condition can also
reverse itself, with Red Hill being totally blanketed in fog, while the
valley floor enjoys fog-free visibility.
Elevations of the proposed viticultural area are generally at or
above 800 feet, with most of the terrain below 1,200 feet. This span of
elevations has a significant effect on growing conditions. The hillside
climate allows grapes to mature at a slower rate, producing small
clusters of grapes with high acids and intense flavors.
In his March 2, 2001, letter, Jerry Maul explained that the Red
Hill bloom and ripening dates may be 12 days later than the rest of the
Umpqua Valley viticultural area and 4 to 7 days ahead of those of
comparable varieties in the Willamette Valley viticultural area. Mr.
Maul also stated that the Willamette Valley viticultural area has 10
inches more annual rain than the proposed viticultural area.
Average rainfall in the Red Hill area is 51 inches at the 1,000-
foot elevation, which contrasts with 40 inches at the 600-foot
elevation of the Umpqua Valley floor. Other areas close to Red Hill all
have significantly less rainfall, as noted in the table below.
------------------------------------------------------------------------
Average
annual
Location name (Oregon) rainfall
(inches)
------------------------------------------------------------------------
Red Hill Road................................................ 51.53
Oakland...................................................... 40.86
Drain........................................................ 45.70
Sutherlin.................................................... 41.81
Roseburg..................................................... 32.44
Winchester................................................... 34.99
------------------------------------------------------------------------
Notice No. 960 requested public comments by December 30, 2002, and
ATF received nine comments, one in support, seven in opposition, and
one that requested an extension of the comment period. The one
supporting commenter stated that the proposed viticultural area is
geologically and climatically distinct from surrounding areas.
All seven opposing commenters expressed concern about the proposed
``Red Hill (Oregon)'' name. They cited consumer confusion with other
Red Hill wine regions in Oregon, California, New Zealand, and
Australia. Several commenters who use the geographical term ``Red Hills
of Dundee'' on wine labels believed the petitioner would be
capitalizing on that established and recognized name. A commenter
holding the ``Red Hill Vineyard'' trademark in California stated
concerns about potential brand name confusion.
The ``Red Hill'' name, according to a commenter, is ``common'' and
``generic.'' Also, the ``Oregon'' modifier is too expansive and
encompassing, the commenter continued, and suggested Douglas County or
Umpqua as modifiers. The name ``Red Hill'' in Douglas County is not
well known locally or nationally, according to several opposing
commenters. One commenter questioned if the proposed Red Hill (Oregon)
area is located in the Willamette Valley, in northwest Oregon, to the
north of Douglas County.
The Red Hill area in Douglas County, according to several
commenters, has no history of grape-growing or established viticulture
reputation. They also stated that climate, soil, and topography are not
distinguishable from the Red Hills of Dundee, located in the Willamette
Valley in northwest Oregon. Another commenter stated there is red soil
``all over the planet.''
A commenter cited lack of justification in selecting the elevation
range of 800 to 1,200 feet. Another commenter noted the entire Red Hill
landform is not within the proposed boundary, and that the proposed
viticultural area should be renamed to reflect the portion of Red Hill
within the proposed boundary. The commenter suggested the name
``Pollack Creek,'' which is the name of an estuary running through the
proposed area.
One commenter requested a 60-day extension to the comment period
for more time to study the petition and prepare a comment.
ATF Notice No. 966
In response to the commenter's request for an extension of the
comment period prescribed in Notice No. 960, ATF on January 16, 2003,
published in the Federal Register (68 FR 2262) a second notice, No.
966, regarding the proposed establishment of the Red Hill (Oregon)
viticultural area. Notice No. 966 re-opened the comment period and
requested public comments by March 17, 2003. ATF received 16 comments,
with 12 in support, 2 in opposition, 1 that suggested a name change,
and 1 that requested an extension of the comment period.
The 12 supporting commenters, with the majority living and growing
grapes in Douglas County, Oregon, stated their belief that the Red Hill
region is distinct from the surrounding areas in soil, rainfall, and
temperatures. Also, they stated that the geology and higher elevations
on the hillsides are unique to the surrounding lower elevations.
[[Page 59999]]
According to one supporting commenter, the Red Hill terrain above
the 1,200-foot elevation line and on the east side of the hill, located
outside the proposed boundary line, is not conducive to successful
viticulture. A supporting Corvallis, Oregon, vineyard owner stated that
east-facing slopes make poor vineyard sites.
An Oakland, Oregon, supporting commenter stated that the proposed
viticultural area has cool night temperatures, as compared to areas
outside the proposed boundary, and enjoys a frost-free growing season.
The same commenter noted that the reddish Jory soils are isolated on
Red Hill from the surrounding region.
A supporting Medford, Oregon, horticultural advisor commented that
the reddish soil is composed of silt-sized volcanic ash deposited by
wind on the hilltops, not in the valleys. The commenter also stated
that the marine influence provides a cooler and wetter climate, as
compared to the surrounding Umpqua Valley area. The horticultural
advisor stated his belief that the Red Hill area is unique to the
region and deserves its own appellation.
A supporting Douglas County extension agent commented that the
majority of the County grapes grow between 400 and 800 feet in
elevation and that the elevation level of between approximately 800 and
1,200 feet of the proposed Red Hill viticultural area is the maximum
elevation for successful ripening of grapes in the Umpqua climatic
zone. The extension agent explained that increased winter and spring
rainfall levels in the Red Hill region contrast to the rainfall of the
adjacent lower elevation valley vineyard sites and that Red Hill has a
very distinctive Jory soil type.
A supporting general manager of the Douglas County Farmers Co-op
commented that unique characteristics of Red Hill include the soils,
microclimate, and rainfall. The general manager also states that
viticulture occurs at higher elevations than those of most other
Douglas County grape-growing locations.
According to several supporting commenters, the Red Hill name is
appropriate and has historical significance. The ``Red Hill'' sign at
exit 150 of Interstate 5 in Oregon, according to one commenter, is the
only ``Red Hill'' designation in that region of the Interstate system.
Another commenter found humor in the idea of public confusion among the
``Red Hill,'' ``Red Hills of California,'' or the ``Red Hills of
Dundee'' geographical names. The Douglas County extension agent
confirmed the historical significance of the ``Red Hill'' name for the
area.
The two opposing commenters stated their concern about the proposed
``Red Hill (Oregon)'' name. They cited consumer confusion with the Red
Hills of Dundee grape-growing region in the Willamette Valley
viticultural area of northwest Oregon. A commenter explained that the
grapes from the proposed viticultural area lack ``Red Hill''
marketplace recognition. The same commenter stated his belief that the
petition information refers to new plantings that have not been
commercially harvested. In conjunction, the commenter questioned the
distinguishing climatic features evidence of the petition, as related
to the viticultural bloom and ripening dates. The other commenter
contended that there is inadequate historical viticultural evidence to
support the contention that the area produces unique wines. Also, the
commenter stated that no current demand for wines from the Red Hill
area of Douglas County, Oregon, exists.
One commenter suggested ``Red Hill of Oregon'' as an alternate name
to the ``Red Hill (Oregon)'' proposed name.
One commenter requested an additional comment period of 60 days to
allow time for receipt and evaluation of a copy of the original
petition.
TTB Notice No. 6
In response to the commenter's request for an extension of the
comment period prescribed in Notice No. 966, TTB, as the successor
agency to ATF, on April 24, 2003, published in the Federal Register (68
FR 20090) Notice No. 6. This third notice re-opened the comment period
regarding the proposed establishment of the Red Hill (Oregon)
viticultural area. Notice No. 6 requested public comments by May 27,
2003. TTB received nine comments, three in support, one in opposition,
and five that requested a public hearing.
The three comments in support of the proposed Red Hill (Oregon)
viticultural area focused on the unique climate conditions for
viticulture. The owner of an Oakland, Oregon, vineyard, located about
10 miles south of Red Hill, commented that Red Hill is distinct from
other growing areas in the Umpqua Valley viticulture area. The
distinctive combination of soil, temperature, and rainfall pattern, the
commenter continues, is not repeated elsewhere in the Umpqua Valley.
Another Oakland vineyard owner concurred that the Red Hill area is a
unique viticultural area. The managing partner of an Elkton, Oregon,
vineyard, located to the west-northwest of Red Hill, commented, ``I
have been to this vineyard a number of times and the soils, elevation,
rainfall and climate differentiate this site from all others in the
Umpqua [Valley] AVA.''
In addition, one supporting commenter explained that early settlers
started using the ``Red Hill'' name and that the petitioner did not
coin the ``Red Hill'' name for the purpose of petitioning for the
establishment of a viticultural area.
The one opposing commenter of the proposed Red Hill (Oregon)
viticultural area discussed possible trade and consumer confusion
related to the proposed name of the viticultural area. Two Oregon
trademarks in use since 1970, ``Red Hills Estate'' and ``Red Hills
Vineyard,'' are held by a Willamette Valley, Oregon, winery. The
commenter believes consumer confusion between the two trademark names
and the proposed Red Hill (Oregon) viticultural area names will occur.
The commenter suggested ``Pollack Creek'' as an alternate viticultural
area name.
The five commenters who requested a public hearing wished to debate
the establishment of the proposed Red Hill (Oregon) viticultural area.
Specific reasons included a belief that the name Red Hill (Oregon) is
not locally or nationally recognized and a concern that the proposed
name could be confused with the Red Hills of Dundee grape-growing
region in the Willamette Valley of northwest Oregon. Also, the
commenters contended that the proposed area lacks viticultural history.
TTB Notice No. 31
Based on the comments opposed to the proposed ``Red Hill (Oregon)''
name, TTB decided to solicit comments on ``Red Hill Douglas County,
Oregon'' as a new name for the proposed viticultural area. Accordingly,
on February 2, 2005, TTB published in the Federal Register (70 FR 5397)
Notice No. 31, which included a revised boundary description in the
proposed regulatory text and re-opened the period for public comments
through March 4, 2005. TTB revised the boundary description to provide
more detail for ease in determining the proposed lines on the USGS
maps. TTB received no comments in response to this notice.
Discussion of Comments
As indicated above, ATF and TTB received a total of 34 public
comments in response to the three proposed Red Hill (Oregon) notices
and none in response to the notice proposing the ``Red Hill Douglas
County, Oregon'' name. Opposing commenters supported their positions by
addressing a number
[[Page 60000]]
of points, which we summarize and respond to below.
Lack of name recognition, specifically, that the name Red
Hill (Oregon) is not locally or nationally recognized.
TTB disagrees with this contention. As noted in Notice No. 960, the
Red Hill name, based on reddish soils, has been used in Douglas County,
Oregon, for over 150 years. Today, use of the name ``Red Hill''
continues to identify the Red Hill landform and farmlands in the area
and is used on the Interstate 5 exit sign number 150. The USGS Drain,
Oregon, map includes in section 26, T23S/R5W, a number of references to
place and road names that include the words ``Red Hill.''
Name confusion (with other areas, brands, and trademarks).
Many commenters expressed concern that the name is easily confused with
other names, such as the Red Hills (plural) area of Willamette Valley,
Red Hills of Dundee (Oregon), Red Hills (New Zealand), Red Hills Estate
(Oregon trademark), Red Hills Vineyard (Oregon trademark), and Red Hill
Vineyard (California trademark).
TTB agrees that establishing a viticultural area named Red Hill
(Oregon) could create potential conflicts and/or confusion with other
geographical area, brand, and trademark names used by wine industry
members. As stated in Notice No. 31, TTB determined that the proposed
``Red Hill Douglas County, Oregon'' name adequately describes and
geographically identifies the proposed viticultural area and does not
create confusion with other geographical areas or create conflict with
other wine industry brand or trademark names currently in use.
Insufficient boundary evidence. Several opposing
commenters stated the boundaries do not reflect the geographical area
known as Red Hill in Douglas County, Oregon.
TTB notes that the petition and Notice No. 960 both detail the
rationale for the boundary line determination. Although portions of the
Red Hill geographical formation are outside the boundaries, the area
conducive to successful viticulture, based on soil and climate
evidence, is included.
After careful consideration, TTB has determined that the proposed
Red Hill Douglas County, Oregon viticultural area boundary lines are
appropriate and accurate.
Lack of justification in selecting the elevation range of
800 to 1,200 feet.
Several commenters questioned the use of the approximate 800- to
1,200-foot elevation lines for the proposed boundaries.
TTB believes the specified elevation is correct. One factor that
supports the upper range of elevation, as presented by the petitioner
and confirmed in public comments, is the timber industry's extensive
land ownership on Red Hill. Much of the land at the higher elevations,
above about 1,200 feet in elevation and to the east side of the hill,
beyond the proposed boundaries, is dedicated to reforesting. The
Douglas County extension agent Steve Renquist explained that the
proposed upper boundary, at the 1,200-foot contour line, is the maximum
elevation for successful grape-ripening in the region.
TTB, therefore, considers the 800- to 1,200-foot elevation band to
be a defining feature of this proposed viticultural area.
Insufficient distinguishing features, for example, climate
(especially relating to the viticultural bloom and ripening dates),
soil, and topography.
The petition stated that the area's growing season temperatures,
including those of spring and fall, are warmer during the day and
cooler at night, which contrasts to the surrounding Umpqua region.
According to a former Douglas County extension agent, Red Hill bloom
and ripening dates vary from the rest of the Umpqua Valley viticultural
area and those of comparable varieties in the Willamette Valley
viticultural area.
The petition also stated that, according to horticultural advisor
Brian Wolf, the Red Hill climate enjoys a marine influence, generally
cooler and wetter, than the surrounding areas. Also, it contrasts to
the Willamette Valley to the north, which has more rainfall and cooler
temperatures than Red Hill. From a climatic perspective, including
growing temperatures and solar radiation, commenters explain that the
Red Hill area's east-facing slopes and elevations above 1,200 feet are
not conducive to successful viticulture, and, thus, are outside the
boundaries of the proposed viticultural area. Moreover, the proposed
Red Hill Douglas County, Oregon viticultural area experiences
distinctive rainfall and temperature patterns, a relatively frost-free
growing season, a west-facing orientation and its related solar
exposure, and a marine influence, as commenters describe. The
commenters opposed to the proposed viticultural area provided no
specific data to refute the information provided in the petition in
this regard.
Regarding the reddish soil of this proposed viticultural area,
horticultural advisor Brian Wolf also stated, according to the
petition, that it is not clay, but silt-sized volcanic ash deposited by
wind. This red volcanic ash exists only on the tops of hills, not at
the lower elevation valleys, and has extraordinary water-holding
capability that facilitates viticulture. In addition, a vineyard owner
4 miles south of Red Hill describes his soil as poorly draining silt
clay mudstone, which contrasts to the deep, red, well-drained soil in
the proposed viticultural area. Finally, the letter from engineering
technician Walt Barton that was submitted with the petition stated
that, within Douglas County, the red Jory series is unique to the Red
Hill area. Areas surrounding the Red Hill region, Mr. Barton explained,
have contrasting shallow or poorly drained soils of sedimentary origin,
unlike the Red Hill Jory series soils that are well drained and derive
from bedrock.
TTB believes that these statements support the conclusion that the
red Jory soils of the Red Hill area are a unique and distinguishing
factor in that area of the Umpqua Valley and Douglas County, Oregon.
The fact that there is red soil ``all over the planet,'' as claimed by
one opposing commenter, does not deny the significance of the soil
found in the proposed viticultural area.
As regards topography, the petition pointed out that the hillside
climate allows grapes to mature at a slower rate, producing small
clusters of grapes with high acids and intense flavors. Therefore, the
hillside elevations of the proposed viticultural area are distinctive.
The proposed boundaries are generally limited by the 1,200-foot upper
elevation and by the east-facing hillside slopes where viticulture
tends to be less successful. Also, below the 800-foot proposed
elevation boundary line, the area trends to the Umpqua Valley growing
environment. The opposing commenters provided no specific information
to refute these statements.
Lack of grape-growing history and established viticulture
reputation.
Several opposing commenters voiced concern about the lack of
viticultural history of the Red Hill area in Douglas County, Oregon,
and a lack of commercial grape harvesting. They stated that the area
does not have a proven record of producing unique wines. Another
commenter stated that there is little commercial demand for wines
originating from this area.
TTB notes that the regulations pertaining to the establishment of
viticultural areas do not require the existence of a substantial
viticultural history, a production of unique wines, or a demand for
wines originating in the proposed viticultural area. Therefore, in
evaluating a petition, TTB does not consider as determining factors the
[[Page 60001]]
questions of whether the viticulture of the proposed area is new or
established, whether the area is producing unique wines, or whether
wine from the area is in demand in the marketplace.
Need for public hearings.
Five opposing commenters requested a public hearing to openly
discuss the petition and present oral arguments.
However, TTB determined that the written comments received in
response to Notice Nos. 960, 966, and 6, together with the information
submitted with the petition, provided adequate information, evidence,
and documentation on which to base a decision.
TTB Finding
After careful review of the petition and the public comments, TTB
believes that the evidence submitted with the petition supports the
establishment of the proposed viticultural area under the name proposed
in Notice No. 31. Therefore, under the authority of the Federal Alcohol
Administration Act and part 4 of our regulations, we establish the
``Red Hill Douglas County, Oregon'' viticultural area in Douglas
County, Oregon, effective 30 days from this document's publication
date.
Boundary Description
See the narrative boundary description of the viticultural area in
the regulatory text published at the end of this notice.
Maps
The petitioner provided the required maps, and we list them below
in the regulatory text.
Impact on Current Wine Labels
Part 4 of the TTB regulations prohibits any label reference on a
wine that indicates or implies an origin other than the wine's true
place of origin. With the establishment of this viticultural area and
its inclusion in part 9 of the TTB regulations, its name, ``Red Hill
Douglas County, Oregon'' is recognized as a name of viticultural
significance. Consequently, wine bottlers using ``Red Hill Douglas
County, Oregon'' in a brand name, including a trademark, or in another
label reference as to the origin of the wine, must ensure that the
product is eligible to use the viticultural area's name as an
appellation of origin.
For a wine to be eligible to use as an appellation of origin the
name of a viticultural area specified in part 9 of the TTB regulations,
at least 85 percent of the grapes used to make the wine must have been
grown within the area represented by that name, and the wine must meet
the other conditions listed in 27 CFR 4.25(e)(3). If the wine is not
eligible to use the viticultural area name as an appellation of origin
and that name appears in the brand name, then the label is not in
compliance and the bottler must change the brand name and obtain
approval of a new label. Similarly, if the viticultural area name
appears in another reference on the label in a misleading manner, the
bottler would have to obtain approval of a new label.
Different rules apply if a wine has a brand name containing a
viticultural area name that was used as a brand name on a label
approved before July 7, 1986. See 27 CFR 4.39(i)(2) for details.
Regulatory Flexibility Act
We certify that this regulation will not have a significant
economic impact on a substantial number of small entities. This
regulation imposes no new reporting, recordkeeping, or other
administrative requirement. Any benefit derived from the use of a
viticultural area name is the result of a proprietor's efforts and
consumer acceptance of wines from that area. Therefore, no regulatory
flexibility analysis is required.
Executive Order 12866
This rule is not a significant regulatory action as defined by
Executive Order 12866 (58 FR 51735). Therefore, it requires no
regulatory assessment.
Drafting Information
Nancy Sutton, Regulations and Procedures Division, drafted this
document.
List of Subjects in 27 CFR Part 9
Wine.
The Regulatory Amendment
0
For the reasons discussed in the preamble, we amend 27 CFR, chapter 1,
part 9 as follows:
PART 9--AMERICAN VITICULTURAL AREAS
0
1. The authority citation for part 9 continues to read as follows:
Authority: 27 U.S.C. 205.
0
2. Amend subpart C by adding Sec. 9.190 to read as follows:
Subpart C--Approved American Viticultural Areas
Sec. 9.190 Red Hill Douglas County, Oregon.
(a) Name. The name of the viticultural area described in this
section is ``Red Hill Douglas County, Oregon''. For purposes of part 4
of this chapter, ``Red Hill Douglas County, Oregon'' is a term of
viticultural significance.
(b) Approved Maps. The appropriate maps for determining the
boundary of the Red Hill Douglas County, Oregon viticultural area are
three United States Geological Survey (USGS), 1:24,000 scale,
topographic maps. They are:
(1) Sutherlin, OR (Provisional edition 1988);
(2) Scotts Valley, OR (Provisional edition 1987); and
(3) Yoncalla, OR (Provisional edition 1987).
(c) Boundary. The Red Hill Douglas County, Oregon viticultural area
is located in Douglas County, Oregon, east of Interstate 5 near the
hamlet of Rice Hill, between the villages of Yoncalla and Oakland.
(1) Beginning on the Yoncalla map along the southern boundary of
section 35, T23S/R5W, at the point where a pipeline crosses the T23S/
T24S township line, proceed due west 0.8 mile along the T23S/T24S
township line to its intersection with the 800-foot contour line just
west of Pollock Creek in section 34, T23S/R5W (Yoncalla Quadrangle);
then
(2) Proceed southerly along the meandering 800-foot contour line,
cross onto the Sutherlin map in section 10, T24S/R5W, and continue
westerly along the 800-foot contour line to its first intersection with
the eastern boundary of section 8, T24S/R5W (Sutherlin Quadrangle);
then
(3) Proceed northerly along the meandering 800-foot contour line,
return to the Yoncalla map in section 9, T23S/R5W, and continue
northerly along the 800-foot contour line to its intersection with the
T23S/T24S township line very near the northwest corner of section 4,
T24S/R5W (Yoncalla Quadrangle); then
(4) Proceed northeasterly along the 800-foot contour line, cross
Wilson Creek in the northern portion of section 23, T23S/R5W, pass onto
the Scotts Valley map at Section 14, T23S/R5W, and continue
northeasterly along the 800-foot contour line to its intersection with
the R4W/R5W range line, which at that point is also the eastern
boundary of section 1, T23S/R5W (Scotts Valley Quadrangle); then
(5) Proceed southwesterly along the 800-foot contour line, re-cross
the R4W/R5W range line, and continue to the second intersection of the
800-foot contour line and the pipeline in section 1, T23/R5W (Scotts
Valley Quadrangle); then
(6) Proceed 5.75 miles southwesterly along the pipeline, cross
Wilson Creek in section 24, T23S/R5W, return to the Yoncalla map in
section 26, T23S/R5W,
[[Page 60002]]
and continue southwesterly along the pipeline to the point of beginning
at the intersection of the pipeline intersection and the T23S/T24S
township line in section 35, T23S/R5W (Yoncalla Quadrangle).
Signed: July 22, 2005.
John J. Manfreda,
Administrator.
Approved: September 2, 2005.
Timothy E. Skud,
Deputy Assistant Secretary (Tax, Trade, and Tariff Policy).
[FR Doc. 05-20551 Filed 10-13-05; 8:45 am]
BILLING CODE 4810-31-P
