This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

11971 

Vol. 76, No. 43 

Friday, March 4, 2011 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 985 

[Doc. No. AMS–FV–10–0094; FV11–985–1 

PR] 

Marketing Order Regulating the 

Handling of Spearmint Oil Produced in 

the Far West; Salable Quantities and 

Allotment Percentages for the 2011– 

2012 Marketing Year 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Proposed rule. 

SUMMARY: This rule would establish the 

quantity of spearmint oil produced in 

the Far West, by class, that handlers 

may purchase from, or handle on behalf 

of, producers during the 2011–2012 

marketing year, which begins on June 1, 

2011. This rule invites comments on the 

establishment of salable quantities and 

allotment percentages for Class 1 

(Scotch) spearmint oil of 694,774 

pounds and 34 percent, respectively, 

and for Class 3 (Native) spearmint oil of 

1,012,983 pounds and 44 percent, 

respectively. The Spearmint Oil 

Administrative Committee (Committee), 

the agency responsible for local 

administration of the marketing order 

for spearmint oil produced in the Far 

West, recommended these limitations 

for the purpose of avoiding extreme 

fluctuations in supplies and prices to 

help maintain stability in the spearmint 

oil market. 

DATES: Comments must be received by 

April 4, 2011. 

ADDRESSES: Interested persons are 

invited to submit written comments 

concerning this proposal. Comments 

must be sent to the Docket Clerk, 

Marketing Order Administration 

Branch, Fruit and Vegetable Programs, 

AMS, USDA, 1400 Independence 

Avenue, SW., STOP 0237, Washington, 

DC 20250–0237; Fax: (202) 720–8938; or 

Internet: http://www.regulations.gov. All 

comments should reference the 

document number and the date and 

page number of this issue of the Federal 

Register and will be made available for 

public inspection in the Office of the 

Docket Clerk during regular business 

hours, or can be viewed at: http:// 

www.regulations.gov. All comments 

submitted in response to this rule will 

be included in the record and will be 

made available to the public. Please be 

advised that the identity of the 

individuals or entities submitting the 

comments will be made public on the 

Internet at the address provided above. 

FOR FURTHER INFORMATION CONTACT: 

Barry Broadbent, Marketing Specialist 

or Gary Olson, Regional Manager, 

Northwest Marketing Field Office, 

Marketing Order Administration 

Branch, Fruit and Vegetable Programs, 

AMS, USDA; Telephone: (503) 326– 

2724, Fax: (503) 326–7440, or E-mail: 

Barry.Broadbent@ams.usda.gov or 

GaryD.Olson@ams.usda.gov. 

Small businesses may request 

information on complying with this 

regulation by contacting Antoinette 

Carter, Marketing Order Administration 

Branch, Fruit and Vegetable Programs, 

AMS, USDA, 1400 Independence 

Avenue, SW., STOP 0237, Washington, 

DC 20250–0237; Telephone: (202) 720– 

2491, Fax: (202) 720–8938, or E-mail: 

Antoinette.Carter@ams.usda.gov. 

SUPPLEMENTARY INFORMATION: This rule 

is issued under Marketing Order No. 

985 (7 CFR part 985), as amended, 

regulating the handling of spearmint oil 

produced in the Far West (Washington, 

Idaho, Oregon, and designated parts of 

Nevada and Utah), hereinafter referred 

to as the ‘‘order.’’ The order is effective 

under the Agricultural Marketing 

Agreement Act of 1937, as amended (7 

U.S.C. 601–674), hereinafter referred to 

as the ‘‘Act.’’ 

The Department of Agriculture 

(USDA) is issuing this rule in 

conformance with Executive Order 

12866. 

This rule has been reviewed under 

Executive Order 12988, Civil Justice 

Reform. Under the marketing order now 

in effect, salable quantities and 

allotment percentages may be 

established for classes of spearmint oil 

produced in the Far West. This 

proposed rule would establish the 

quantity of spearmint oil produced in 

the Far West, by class, which handlers 

may purchase from, or handle on behalf 

of, producers during the 2011–2012 

marketing year, which begins on June 1, 

2011. 

The Act provides that administrative 

proceedings must be exhausted before 

parties may file suit in court. Under 

section 608c(15)(A) of the Act, any 

handler subject to an order may file 

with USDA a petition stating that the 

order, any provision of the order, or any 

obligation imposed in connection with 

the order is not in accordance with law 

and request a modification of the order 

or to be exempted therefrom. A handler 

is afforded the opportunity for a hearing 

on the petition. After the hearing, USDA 

would rule on the petition. The Act 

provides that the district court of the 

United States in any district in which 

the handler is an inhabitant, or has his 

or her principal place of business, has 

jurisdiction to review USDA’s ruling on 

the petition, provided an action is filed 

not later than 20 days after the date of 

the entry of the ruling. 

The Committee meets annually in the 

fall to adopt a marketing policy for the 

ensuing marketing year or years. In 

determining such marketing policy, the 

Committee considers a number of 

factors, including, but not limited to, the 

current and projected supply, estimated 

future demand, production costs, and 

producer prices for all classes of 

spearmint oil, as well as input from 

spearmint oil handlers and producers 

regarding prospective marketing 

conditions. During the meeting, the 

Committee recommends to USDA any 

volume regulations deemed necessary to 

meet market requirements and to 

establish orderly marketing conditions 

for Far West spearmint oil. If the 

Committee’s marketing policy 

considerations indicate a need for 

limiting the quantity of any or all 

classes of spearmint oil marketed, the 

Committee subsequently recommends 

the establishment of a salable quantity 

and allotment percentage for such class 

or classes of oil for the forthcoming 

marketing year. 

The salable quantity represents the 

total amount of each class of spearmint 

oil that handlers may purchase from, or 

handle on behalf of, producers during 

the marketing year. Each producer is 

allotted a prorated share of the salable 

quantity by applying the allotment 

percentage to that producer’s allotment 

base for each applicable class of 

spearmint oil. The producer allotment 

base is each producer’s quantified share 

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11972 Federal Register / Vol. 76, No. 43 / Friday, March 4, 2011 / Proposed Rules 

of the spearmint oil market based on a 

statistical representation of past 

spearmint oil production and the 

accommodation for reasonable and 

normal adjustments to such base as 

prescribed by the Committee and 

approved by USDA. Salable quantities 

are established at levels intended to 

meet market requirements and to 

establish orderly marketing conditions. 

Committee recommendations for 

volume controls are made well in 

advance of the period in which the 

regulations are to be effective, thereby 

allowing producers the chance to adjust 

their production decisions accordingly. 

Pursuant to authority in §§ 985.50, 

985.51, and 985.52 of the order, the full 

eight-member Committee met on 

October 13, 2010, and recommended 

salable quantities and allotment 

percentages for both classes of oil for the 

2011–2012 marketing year. The 

Committee, in a vote of six members in 

favor and two members opposed, 

recommended the establishment of a 

salable quantity and allotment 

percentage for Scotch spearmint oil of 

694,774 pounds and 34 percent, 

respectively. The two members 

opposing the action favored an 

undetermined greater salable quantity 

and allotment percentage for Scotch 

spearmint oil. For Native spearmint oil, 

the Committee unanimously 

recommended the establishment of a 

salable quantity and allotment 

percentage of 1,012,983 pounds and 44 

percent, respectively. 

This rule would limit the amount of 

spearmint oil that handlers may 

purchase from, or handle on behalf of, 

producers during the 2011–2012 

marketing year, which begins on June 1, 

2011. Salable quantities and allotment 

percentages have been placed into effect 

each season since the order’s inception 

in 1980. 

Class 1 (Scotch) Spearmint Oil 

The U.S. production of Scotch 

spearmint oil is concentrated in the Far 

West, which includes Washington, 

Idaho, Oregon, and a portion of Nevada 

and Utah. Scotch type oil is also 

produced in seven other States: Indiana, 

Michigan, Minnesota, Montana, North 

Dakota, South Dakota, and Wisconsin. 

Additionally, Scotch spearmint oil is 

produced outside of the U.S., with 

China and India being the largest global 

competitors of domestic Scotch 

spearmint oil production. 

The Far West’s share of total global 

Scotch spearmint oil sales has varied 

considerably over the past several 

decades, from 72 percent in 1980 to 27 

percent in 2002. Recently, sales of Far 

West Scotch spearmint oil have risen to 

over 48 percent of world sales, and are 

expected to hold steady, or go even 

higher, in the coming years. 

In spite of the Far West’s growing 

share of the world market for Scotch 

spearmint oil, the industry has faced 

some stressful marketing conditions 

during the most recent marketing years. 

Spearmint oil producers experienced 

relatively good economic conditions in 

the years from 2004 through 2007, 

which led to overproduction and an 

environment of excess supply in the 

market beginning in 2008 and 

continuing through 2010. The Far West 

region, which produced 635,508 pounds 

of Scotch spearmint oil in 2004, 

produced 1,050,700 pounds just five 

years later in 2009, a 65 percent 

increase. 

To compound matters, in addition to 

increasing overproduction concerns, the 

demand for Far West Scotch spearmint 

oil began to actually decline over this 

period. Sales peaked in 2005 at 

1,002,779 pounds, declining to 627,868 

pounds in 2009. With production rising 

and sales dropping, excess inventory of 

uncommitted Scotch spearmint oil 

began to accumulate. Scotch spearmint 

oil carry-in (unsold salable quantity 

from prior years that is available for sale 

at the beginning of a new marketing 

year), which serves as a measure of 

oversupply in the market, grew from 

23,141 pounds in 2007 to 431,028 

pounds in 2010. 

The Committee’s response to the 

deteriorating marketing environment 

since 2008 has been to recommend the 

tightening of volume control 

regulations. The Committee, which 

recommended a 2008–2009 marketing 

year Scotch spearmint oil salable 

quantity of 993,067 pounds, dropped 

the recommendation to 802,067 pounds 

for the 2009–2010 marketing year, and 

to only 566,962 pounds for the 2010– 

2011 marketing year. Similarly, the 

recommended allotment percentage was 

reduced from 50 percent for the 2008– 

2009 period to 40 percent for 2009– 

2010, and down to just 28 percent for 

2010–2011. 

When the Committee met in October 

2010 to consider volume regulation for 

the 2011–2012 marketing year, many of 

the previously mentioned negative 

marketing conditions still persisted. 

Even while showing some signs of 

incremental improvement, the current 

inventories, expected production, and 

projected demand of Scotch spearmint 

oil were all at levels considered 

unhealthy for the industry. 

The Committee estimates that the 

carry-in of Scotch spearmint oil on June 

1, 2011, the primary measure of excess 

supply, will be approximately 197,551 

pounds. That quantity, while down 

from the previous year’s high of 431,028 

pounds, would still be above what the 

Committee considers to be optimum. 

Overproduction of Scotch spearmint 

oil, while improving, also continues to 

be an area of concern for the Committee. 

Production of Far West Scotch 

spearmint oil has declined, from a high 

of 1,050,700 pounds in 2009, to 868,487 

pounds in 2010, and the Committee 

expects it to drop even further during 

the 2011 season. The recent declining 

trend in Scotch spearmint oil 

production is viewed by the Committee 

as a positive development and is 

expected to contribute some relief to the 

industry’s oversupply situation. 

In addition, spearmint oil handlers 

indicated that demand for Scotch 

spearmint oil might be gaining strength. 

Handlers that had projected that the 

trade demand for Far West Scotch oil 

would range from a low of 750,000 

pounds to a high of 850,000 pounds for 

the 2010–2011 marketing year, expect 

the trade demand to be within a range 

of 800,000 pounds to 900,000 pounds 

for the 2011–2012 period. 

However, this increase in projected 

Scotch demand, generally thought of as 

a positive indicator for the industry, is 

viewed cautiously by some industry 

participants. Consumer demand for 

mint flavored products is reportedly 

steady, providing optimism for long 

term increases in the demand for Far 

West spearmint oil. Some handlers, 

though, believe that the manufacturers 

of such products are currently 

increasing spearmint oil purchases just 

to rebuild inventories that were 

depleted during the worst of the recent 

U.S. economic recession. As such, those 

handlers feel that at least some of the 

recent increase in Scotch spearmint oil 

sales may not represent an actual 

increase in sustained demand, but a 

temporary response to fluctuations in 

the strategic inventories of the 

manufacturers. 

Still, given the moderately improving 

economic indicators for the Far West 

Scotch spearmint oil industry outlined 

above, the Committee took a cautiously 

optimistic perspective into the 

discussion of establishing appropriate 

salable quantities and allotment 

percentages for the upcoming season. 

Therefore, at the October 13, 2010, 

meeting, the Committee recommended 

the 2011–2012 Scotch spearmint oil 

salable quantity of 694,774 pounds and 

allotment percentage of 34 percent. The 

Committee utilized sales estimates for 

2011–2012 Scotch spearmint oil, as 

provided by several of the industry’s 

handlers, as well as historical and 

current Scotch spearmint oil production 

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Federal Register / Vol. 76, No. 43 / Friday, March 4, 2011 / Proposed Rules 11973 

and inventory statistics, to arrive at 

those recommendations. The volume 

control levels recommended by the 

Committee represent a 127,812 pound 

and 6 percentage point increase over the 

previous year’s salable quantity and 

allotment percentage, reflecting a more 

positive assessment of the industry’s 

economic conditions. 

The Committee estimates that about 

800,000 pounds of Scotch spearmint oil 

may be sold during the 2011–2012 

marketing year. When considered in 

conjunction with the estimated carry-in 

of 197,551 pounds of Scotch spearmint 

oil on June 1, 2011, the recommended 

salable quantity of 694,774 pounds 

results in a total available supply of 

approximately 892,325 pounds of 

Scotch spearmint oil during the 2011– 

2012 marketing year. The Committee 

estimates that carry-in of Scotch 

spearmint oil into the 2012–2013 

marketing year, which begins June 1, 

2012, would be 92,325 pounds, a 

decrease of 105,226 pounds from the 

beginning of the 2011–2012 marketing 

year. 

The Committee’s stated intent in the 

use of marketing order volume control 

regulations for Scotch spearmint oil is to 

keep adequate supplies available to 

meet market needs and establish orderly 

marketing conditions. With that in 

mind, the Committee developed its 

recommendation for the proposed 

Scotch spearmint oil salable quantity 

and allotment percentage for the 2011– 

2012 marketing year based on the 

information discussed above, as well as 

the data outlined below. 

(A) Estimated carry-in on June 1, 

2011—197,551 pounds. This figure is 

the difference between the revised 

2010–2011 marketing year total 

available supply of 997,551 pounds and 

the estimated 2010–2011 marketing year 

trade demand of 800,000 pounds. 

(B) Estimated trade demand for the 

2011–2012 marketing year—800,000 

pounds. This figure is based on input 

from producers at six Scotch spearmint 

oil production area meetings held in late 

September and early October 2010, as 

well as estimates provided by handlers 

and other meeting participants at the 

October 13, 2010, meeting. The average 

estimated trade demand provided at the 

six production area meetings is 800,000 

pounds, which is 33,333 pounds less 

than the average of the trade demand 

estimates submitted by handlers. The 

average of Far West Scotch spearmint 

oil sales over the last five years is 

789,243 pounds. 

(C) Salable quantity required from the 

2011–2012 marketing year production— 

602,449 pounds. This figure is the 

difference between the estimated 2011– 

2012 marketing year trade demand 

(800,000 pounds) and the estimated 

carry-in on June 1, 2011 (197,551 

pounds). This figure represents the 

minimum salable quantity that may be 

needed to satisfy estimated demand for 

the coming year with no carryover. 

(D) Total estimated allotment base for 

the 2011–2012 marketing year— 

2,043,453 pounds. This figure 

represents a one percent increase over 

the revised 2010–2011 total allotment 

base. This figure is generally revised 

each year on June 1 due to producer 

base being lost because of the bona fide 

effort production provisions of 

§ 985.53(e). The revision is usually 

minimal. 

(E) Computed allotment percentage— 

29.5 percent. This percentage is 

computed by dividing the minimum 

required salable quantity by the total 

estimated allotment base. 

(F) Recommended allotment 

percentage—34 percent. This is the 

Committee’s recommendation and is 

based on the computed allotment 

percentage (29.5 percent), the average of 

the computed allotment percentage 

figures from the six production area 

meetings (31 percent), and input from 

producers and handlers at the October 

13, 2010, meeting. The actual 

recommendation of 34 percent is based 

on the Committee’s determination that 

the computed percentage (29.5 percent) 

may not adequately supply the potential 

2011–2012 Scotch spearmint oil market. 

(G) The Committee’s recommended 

salable quantity—694,774 pounds. This 

figure is the product of the 

recommended allotment percentage and 

the total estimated allotment base. 

(H) Estimated available supply for the 

2011–2012 marketing year—892,325 

pounds. This figure is the sum of the 

2011–2012 recommended salable 

quantity (694,774 pounds) and the 

estimated carry-in on June 1, 2011 

(197,551 pounds). 

Class 3 (Native) Spearmint Oil 

The Native spearmint oil industry is 

facing market conditions that are very 

similar to those affecting the Scotch 

spearmint oil market, although not 

nearly as severe. Over 90 percent of U.S. 

production of Native spearmint oil is 

produced within the Far West 

production area, thus domestic 

production outside this area is not a 

major factor in the marketing of Far 

West Native spearmint oil. This has 

been an attribute of U.S. production 

since the order’s inception. A minor 

amount of domestic Native spearmint 

oil is produced outside of the Far West 

region in the States of Indiana, 

Michigan, Minnesota, Montana, North 

Dakota, South Dakota, and Wisconsin. 

According to the Committee, very 

little true Native spearmint oil is 

produced outside of the United States. 

However, India produces an increasing 

quantity of spearmint oil with qualities 

very similar to Native spearmint oil. 

Committee records show that in 1996 

the Far West accounted for nearly 93 

percent of the global sales of Native or 

Native quality spearmint oil. By 2008 

that share had shrunk to a low of 48 

percent. Since that point, however, the 

percentage has rebounded and is now 

estimated to be over 57 percent for 2010. 

In spite of the fact that Far West 

Native spearmint oil has been gaining 

world market share, the industry has 

endured challenging marketing 

conditions over the past several 

marketing years. Overproduction, 

coupled with a decrease in demand, 

created a similar oversupply situation 

for Native spearmint oil as was 

previously discussed for Scotch 

spearmint oil. Production of Native 

spearmint oil in the Far West region was 

701,372 pounds in 2004, but increased 

to 1,453,896 pounds just five years later 

in 2009, a 107 percent increase. In 

addition, over that same timeframe, 

demand for Native oil was moving in 

the opposite direction. Sales of Far West 

Native oil peaked in 2004 at 1,249,507 

pounds. From that cyclical high, sales 

steadily declined over the next five 

years, dropping to just 976,888 pounds 

by 2009. As production rose and sales 

dropped, excess inventory of 

uncommitted Native spearmint oil 

began to accumulate. Carry-in of Native 

oil measured at the beginning of each 

marketing year, which serves as a 

measure of oversupply in the market, 

grew from 83,417 pounds at the 

beginning of the 2007–2008 marketing 

year to 343,517 pounds at the beginning 

of the 2010–2011 marketing year. 

The Committee’s response to the 

difficult marketing environment for 

Native spearmint oil over the 2008 

through 2010 period was similar to the 

response to the situation with Scotch 

spearmint oil over that time, to 

recommend the moderate tightening of 

volume control regulations. The 

Committee, which recommended a 

2008–2009 Native spearmint oil salable 

quantity of 1,178,946 pounds, 

maintained a similar recommendation 

for the 2009–2010 marketing year and 

then dropped its recommendation to 

953,405 pounds for the 2010–2011 

marketing year. Similarly, the 

recommended allotment percentage, 

which was 53 percent for the 2008–2009 

and 2009–2010 periods, was 

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11974 Federal Register / Vol. 76, No. 43 / Friday, March 4, 2011 / Proposed Rules 

recommended to be reduced to just 43 

percent for 2010–2011. 

Although improving, many of the 

negative marketing conditions present 

leading up to the the 2010–2011 

marketing year were still evident when 

the Committee met to consider volume 

regulation for the upcoming 2011–2012 

marketing year. The June 1, 2011, carryin of Native spearmint oil on June 1, 

2011, is estimated to be 216,737 pounds, 

down from the previous year’s high of 

343,517 pounds, but still at a level 

above what the Committee believes to 

be optimum. 

Also, production of Native spearmint 

oil, while showing some signs of 

improvement, still remains an area of 

concern for the Committee. Production 

of Far West Native spearmint oil, which 

declined from a high of 1,453,896 

pounds in 2009 to 1,244,361 pounds in 

2010, is still considered by the 

Committee to be high relative to the 

current level of demand and the excess 

inventory of Native spearmint oil. 

However, the Committee believes that 

the declining trend in Native spearmint 

oil production may continue into the 

2011 season and that much of the 

pressure on the industry’s current 

oversupply situation may be relieved 

moving forward. 

In addition to an improved supply 

situation, demand for Far West Native 

spearmint oil appears to have halted its 

downward movement and is expected to 

improve in the coming year. Spearmint 

oil handlers, who projected that the 

2010–2011 trade demand for Far West 

Native spearmint oil would range from 

a low of 1,050,000 pounds to a high of 

1,200,000 pounds, have increased their 

projections modestly for the 2011–2012 

period to a range of 1,100,000 pounds to 

1,200,000 pounds. 

However, similar to Scotch spearmint 

oil, the small increase in projected 

Native spearmint oil demand, generally 

thought of as a positive indicator for the 

industry, is viewed by some handlers 

with caution. As mentioned previously, 

consumer demand for mint flavored 

products is expected to be steady or 

increase slightly moving forward, which 

provides optimism for long term 

improvement in the demand for Far 

West spearmint oil. Some handlers, 

though, have reported that the 

manufacturers of such products may 

just be temporarily increasing purchases 

of spearmint oil to rebuild inventories 

that were depleted during the worst of 

the current U.S. economic recession. As 

such, the handlers believe that at least 

some of the recent increase in purchases 

do not represent an actual increase in 

sustained demand but, rather, a short 

term response to fluctuations in the 

strategic inventories of the 

manufacturers. 

Given the moderately improving 

economic indicators for the Far West 

Native spearmint oil industry outlined 

above, the Committee took a cautiously 

optimistic perspective into the 

discussion of establishing appropriate 

salable quantities and allotment 

percentages for the upcoming season. 

As such, at the October 13, 2010, 

meeting, the Committee recommended a 

2011–2012 Native spearmint oil salable 

quantity of 1,012,983 pounds and an 

allotment percentage of 44 percent. The 

Committee utilized sales estimates for 

2011–2012 Native spearmint oil, as 

provided by several of the industry’s 

handlers, as well as historical and 

current Native spearmint oil market 

statistics to establish these thresholds. 

The recommended volume control 

levels represent a 32,763 pound and a 

1 percentage point increase over the 

previous year’s salable quantity and 

allotment percentage. Even with these 

increases in the salable quantity and 

allotment percentages, the carry-in at 

the beginning of the 2012–2013 

marketing year is projected to drop by 

117,018 pounds. 

The Committee estimates that 

approximately 1,130,000 pounds of 

Native spearmint oil may be sold during 

the 2011–2012 marketing year. When 

considered in conjunction with the 

estimated carry-in of 216,737 pounds of 

Native spearmint oil on June 1, 2011, 

the recommended salable quantity of 

1,012,983 pounds results in a total 

available supply of about 1,229,719 

pounds of Native spearmint oil during 

the 2011–2012 marketing year. The 

Committee estimates that carry-in of 

Native spearmint oil at the beginning of 

the 2012–2103 marketing year to be 

99,719 pounds, a significant reduction 

from the previous year’s level of 216,737 

pounds. 

The Committee’s stated intent in the 

use of marketing order volume control 

regulations for Native spearmint oil is to 

keep adequate supplies available to 

meet market needs and establish orderly 

marketing conditions. With that in 

mind, the Committee developed its 

recommendation for the proposed 

Native spearmint oil salable quantity 

and allotment percentage for the 2011– 

2012 marketing year based on the 

information discussed above, as well as 

the data outlined below. 

(A) Estimated carry-in on June 1, 

2011—216,737 pounds. This figure is 

the difference between the revised 

2010–2011 marketing year total 

available supply of 1,323,737 pounds 

and the estimated 2010–2011 marketing 

year trade demand of 1,107,000 pounds. 

(B) Estimated trade demand for the 

2011–2012 marketing year—1,130,000 

pounds. This estimate is established by 

the Committee and is based on input 

from producers at the seven Native 

spearmint oil production area meetings 

held in late September and early 

October 2010, as well as estimates 

provided by handlers and other meeting 

participants at the October 13, 2010, 

meeting. The average estimated trade 

demand provided at the seven 

production area meetings was 1,130,238 

pounds, whereas the handler estimate 

ranged from 1,100,000 pounds to 

1,200,000 pounds. 

(C) Salable quantity required from the 

2011–2012 marketing year production— 

913,263 pounds. This figure is the 

difference between the estimated 2011– 

2012 marketing year trade demand 

(1,130,000 pounds) and the estimated 

carry-in on June 1, 2011 (216,737 

pounds). This is the minimum amount 

that the Committee believes would be 

required to meet the anticipated 2011– 

2012 Native spearmint oil trade 

demand. 

(D) Total estimated allotment base for 

the 2011–2012 marketing year— 

2,302,233 pounds. This figure 

represents a one percent increase over 

the revised 2010–2011 total allotment 

base. This figure is generally revised 

each year on June 1 due to producer 

base being lost due to the bona fide 

effort production provisions of 

§ 985.53(e). The revision is usually 

minimal. 

(E) Computed allotment percentage— 

39.7 percent. This percentage is 

computed by dividing the required 

salable quantity (913,263 pounds) by the 

total estimated allotment base 

(2,302,233 pounds). 

(F) Recommended allotment 

percentage—44 percent. This is the 

Committee’s recommendation based on 

the computed allotment percentage 

(39.7 percent), the average of the 

computed allotment percentage figures 

from the seven production area 

meetings (39.7 percent), and input from 

producers and handlers at the October 

13, 2010, meeting. The actual 

recommendation of 44 percent is based 

on the Committee’s determination that 

the computed percentage (39.7 percent) 

may not adequately supply the potential 

2011–2012 Native spearmint oil market. 

(G) The Committee’s recommended 

salable quantity—1,012,983 pounds. 

This figure is the product of the 

recommended allotment percentage (44 

percent) and the total estimated 

allotment base (2,302,233 pounds). 

(H) Estimated available supply for the 

2011–2012 marketing year—1,229,720 

pounds. This figure is the sum of the 

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Federal Register / Vol. 76, No. 43 / Friday, March 4, 2011 / Proposed Rules 11975 

2011–2012 recommended salable 

quantity (1,012,983 pounds) and the 

estimated carry-in on June 1, 2011 

(216,737 pounds). 

The salable quantity is the total 

quantity of each class of spearmint oil 

that handlers may purchase from, or 

handle on behalf of, producers during a 

marketing year. Each producer is 

allotted a share of the salable quantity 

by applying the allotment percentage to 

the producer’s allotment base for the 

applicable class of spearmint oil. 

The Committee’s recommended 

Scotch and Native spearmint oil salable 

quantities and allotment percentages of 

694,774 pounds and 34 percent, and 

1,012,983 pounds and 44 percent, 

respectively, are based on the goal of 

establishing and maintaining market 

stability. The Committee anticipates that 

this goal would be achieved by 

matching the available supply of each 

class of Spearmint oil to the estimated 

demand of such, thus avoiding extreme 

fluctuations in inventories and prices. 

The proposed salable quantities are 

not expected to cause a shortage of 

spearmint oil supplies. Any 

unanticipated or additional market 

demand for spearmint oil which might 

develop during the marketing year 

could be satisfied by an intra-seasonal 

increase in the salable quantity. The 

order makes this provision for an intraseasonal increase to allow the 

Committee the flexibility to respond 

quickly to changing market conditions. 

In addition, producers who produce 

more than their annual allotments 

during the 2011–2012 marketing year 

may transfer such excess spearmint oil 

to producers with production less than 

their annual allotment, or, up until 

November 1, 2011, place it into the 

reserve pool to be released in the future 

in accordance with market needs. 

This proposed regulation, if adopted, 

would be similar to regulations issued 

in prior seasons. The average allotment 

percentage for the five most recent 

marketing years for Scotch spearmint oil 

is 42 percent, while the average 

allotment percentage for the same fiveyear period for Native spearmint oil is 

51 percent. Costs to producers and 

handlers resulting from this rule are 

expected to be offset by the benefits 

derived from a stable market and 

improved returns. In conjunction with 

the issuance of this proposed rule, 

USDA has reviewed the Committee’s 

marketing policy statement for the 

2011–2012 marketing year. The 

Committee’s marketing policy 

statement, a requirement whenever the 

Committee recommends volume 

regulation, fully meets the intent of 

§ 985.50 of the order. 

During its discussion of potential 

2011–2012 salable quantities and 

allotment percentages, the Committee 

considered: (1) The estimated quantity 

of salable oil of each class held by 

producers and handlers; (2) the 

estimated demand for each class of oil; 

(3) the prospective production of each 

class of oil; (4) the total of allotment 

bases of each class of oil for the current 

marketing year and the estimated total 

of allotment bases of each class for the 

ensuing marketing year; (5) the quantity 

of reserve oil, by class, in storage; (6) 

producer prices of oil, including prices 

for each class of oil; and (7) general 

market conditions for each class of oil, 

including whether the estimated season 

average price to producers is likely to 

exceed parity. Conformity with the 

USDA’s ‘‘Guidelines for Fruit, Vegetable, 

and Specialty Crop Marketing Orders’’ 

has also been reviewed and confirmed. 

The establishment of these salable 

quantities and allotment percentages 

would allow for anticipated market 

needs. In determining anticipated 

market needs, consideration by the 

Committee was given to historical sales, 

as well as changes and trends in 

production and demand. This rule also 

provides producers with information on 

the amount of spearmint oil that should 

be produced for the 2011–2012 season 

in order to meet anticipated market 

demand. 

Initial Regulatory Flexibility Analysis 

Pursuant to requirements set forth in 

the Regulatory Flexibility Act (RFA), the 

Agricultural Marketing Service (AMS) 

has considered the economic impact of 

this action on small entities. 

Accordingly, AMS has prepared this 

initial regulatory flexibility analysis. 

The purpose of the RFA is to fit 

regulatory actions to the scale of 

business subject to such actions in order 

that small businesses will not be unduly 

or disproportionately burdened. 

Marketing orders issued pursuant to the 

Act, and the rules issued thereunder, are 

unique in that they are brought about 

through group action of essentially 

small entities acting on their own 

behalf. 

There are eight spearmint oil handlers 

subject to regulation under the order, 

and approximately 38 producers of 

Scotch spearmint oil and approximately 

84 producers of Native spearmint oil in 

the regulated production area. Small 

agricultural service firms are defined by 

the Small Business Administration 

(SBA) (13 CFR 121.201) as those having 

annual receipts of less than $7,000,000, 

and small agricultural producers are 

defined as those having annual receipts 

of less than $750,000. 

Based on the SBA’s definition of 

small entities, the Committee estimates 

that 2 of the 8 handlers regulated by the 

order could be considered small 

entities. Most of the handlers are large 

corporations involved in the 

international trading of essential oils 

and the products of essential oils. In 

addition, the Committee estimates that 

19 of the 38 Scotch spearmint oil 

producers and 29 of the 84 Native 

spearmint oil producers could be 

classified as small entities under the 

SBA definition. Thus, a majority of 

handlers and producers of Far West 

spearmint oil may not be classified as 

small entities. 

The Far West spearmint oil industry 

is characterized by producers whose 

farming operations generally involve 

more than one commodity, and whose 

income from farming operations is not 

exclusively dependent on the 

production of spearmint oil. A typical 

spearmint oil-producing operation has 

enough acreage for rotation such that 

the total acreage required to produce the 

crop is about one-third spearmint and 

two-thirds rotational crops. Thus, the 

typical spearmint oil producer has to 

have considerably more acreage than is 

planted to spearmint during any given 

season. Crop rotation is an essential 

cultural practice in the production of 

spearmint oil for weed, insect, and 

disease control. To remain economically 

viable with the added costs associated 

with spearmint oil production, a 

majority of spearmint oil-producing 

farms fall into the SBA category of large 

businesses. 

Small spearmint oil producers 

generally are not as extensively 

diversified as larger ones and as such 

are more at risk from market 

fluctuations. Such small producers 

generally need to market their entire 

annual allotment and do not have the 

luxury of having other crops to cushion 

seasons with poor spearmint oil returns. 

Conversely, large diversified producers 

have the potential to endure one or 

more seasons of poor spearmint oil 

markets because income from alternate 

crops could support the operation for a 

period of time. Being reasonably assured 

of a stable price and market provides 

small producing entities with the ability 

to maintain proper cash flow and to 

meet annual expenses. Thus, the market 

and price stability provided by the order 

potentially benefit the small producer 

more than such provisions benefit large 

producers. Even though a majority of 

handlers and producers of spearmint oil 

may not be classified as small entities, 

the volume control feature of this order 

has small entity orientation. 

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11976 Federal Register / Vol. 76, No. 43 / Friday, March 4, 2011 / Proposed Rules 

This proposed rule would establish 

the quantity of spearmint oil produced 

in the Far West, by class that handlers 

may purchase from, or handle on behalf 

of, producers during the 2011–2012 

marketing year. The Committee 

recommended this rule to help maintain 

stability in the spearmint oil market by 

matching supply to estimated demand 

thereby avoiding extreme fluctuations in 

supplies and prices. Establishing 

quantities to be purchased or handled 

during the marketing year through 

volume regulations allows producers to 

plan their spearmint planting and 

harvesting to meet expected market 

needs. The provisions of §§ 985.50, 

985.51, and 985.52 of the order 

authorize this rule. 

Instability in the spearmint oil subsector of the mint industry is much 

more likely to originate on the supply 

side than the demand side. Fluctuations 

in yield and acreage planted from 

season-to-season tend to be larger than 

fluctuations in the amount purchased by 

handlers. Demand for spearmint oil 

tends to be relatively stable from yearto-year. The demand for spearmint oil is 

expected to grow slowly for the 

foreseeable future because the demand 

for consumer products that use 

spearmint oil will likely expand slowly, 

in line with population growth. 

Demand for spearmint oil at the farm 

level is derived from retail demand for 

spearmint-flavored products such as 

chewing gum, toothpaste, and 

mouthwash. The manufacturers of these 

products are by far the largest users of 

mint oil. However, spearmint flavoring 

is generally a very minor component of 

the products in which it is used, so 

changes in the raw product price have 

virtually no impact on retail prices for 

those goods. 

Spearmint oil production tends to be 

cyclical. Years of relatively high 

production, with demand remaining 

reasonably stable, have led to periods in 

which large producer stocks of unsold 

spearmint oil have depressed producer 

prices for a number of years. Shortages 

and high prices may follow in 

subsequent years, as producers respond 

to price signals by cutting back 

production. 

The significant variability of the 

spearmint oil market is illustrated by 

the fact that the coefficient of variation 

(a standard measure of variability; ‘‘CV’’) 

of Far West spearmint oil production 

from 1980 through 2009 was about 0.23. 

The CV for spearmint oil grower prices 

was about 0.16 for that period, well 

below the CV for production. This 

provides an indication of the price 

stabilizing impact of the marketing 

order. 

Production in the shortest marketing 

year was about 48 percent of the 30-year 

average (1.89 million pounds from 1980 

through 2009) and the largest crop was 

approximately 163 percent of the 30- 

year average. A key consequence is that 

in years of oversupply and low prices 

the season average producer price of 

spearmint oil is below the average cost 

of production (as measured by the 

Washington State University 

Cooperative Extension Service.) 

The wide fluctuations in supply and 

prices that result from this cycle, which 

was even more pronounced before the 

creation of the marketing order, can 

create liquidity problems for some 

producers. The marketing order was 

designed to reduce the price impacts of 

the cyclical swings in production. 

However, producers have been less able 

to weather these cycles in recent years 

because of the increase in production 

costs. While prices have been relatively 

steady, the cost of production has 

increased to the extent that plans to 

plant spearmint may be postponed or 

changed indefinitely. Producers are also 

enticed by the prices of alternative crops 

and their lower cost of production. 

In an effort to stabilize prices, the 

spearmint oil industry uses the volume 

control mechanisms authorized under 

the order. This authority allows the 

Committee to recommend a salable 

quantity and allotment percentage for 

each class of oil for the upcoming 

marketing year. The salable quantity for 

each class of oil is the total volume of 

oil that producers may sell during the 

marketing year. The allotment 

percentage for each class of spearmint 

oil is derived by dividing the salable 

quantity by the total allotment base. 

Each producer is then issued an 

annual allotment certificate, in pounds, 

for the applicable class of oil, which is 

calculated by multiplying the 

producer’s allotment base by the 

applicable allotment percentage. This is 

the amount of oil of each applicable 

class that the producer can sell. 

By November 1 of each year, the 

Committee identifies any oil that 

individual producers have produced 

above the volume specified on their 

annual allotment certificates. This 

excess oil is placed in a reserve pool 

administered by the Committee. 

There is a reserve pool for each class 

of oil that may not be sold during the 

current marketing year unless USDA 

approves a Committee recommendation 

to increase the salable quantity and 

allotment percentage for a class of oil 

and make a portion of the pool 

available. However, limited quantities of 

reserve oil are typically sold by one 

producer to another producer to fill 

deficiencies. A deficiency occurs when 

on-farm production is less than a 

producer’s allotment. In that case, a 

producer’s own reserve oil can be sold 

to fill that deficiency. Excess production 

(higher than the producer’s allotment) 

can be sold to fill other producers’ 

deficiencies. All of these provisions 

need to be exercised prior to November 

1 of each year. 

In any given year, the total available 

supply of spearmint oil is composed of 

current production plus carry-over 

stocks from the previous crop. The 

Committee seeks to maintain market 

stability by balancing supply and 

demand, and to close the marketing year 

with an appropriate level of carryout. If 

the industry has production in excess of 

the salable quantity, then the reserve 

pool absorbs the surplus quantity of 

spearmint oil, which goes unsold during 

that year, unless the oil is needed for 

unanticipated sales. 

Under its provisions, the order may 

attempt to stabilize prices by (1) limiting 

supply and establishing reserves in high 

production years, thus minimizing the 

price-depressing effect that excess 

producer stocks have on unsold 

spearmint oil, and (2) ensuring that 

stocks are available in short supply 

years when prices would otherwise 

increase dramatically. The reserve pool 

stocks, which are increased in large 

production years, are drawn down in 

years where the crop is short. 

An econometric model was used to 

assess the impact that volume control 

has on the prices producers receive for 

their commodity. Without volume 

control, spearmint oil markets would 

likely be over-supplied, resulting in low 

producer prices and a large volume of 

oil stored and carried over to the next 

crop year. The model estimates how 

much lower producer prices would 

likely be in the absence of volume 

controls. 

The Committee estimated the trade 

demand for the 2011–2012 marketing 

year for both classes of oil at 1,930,000 

pounds, and that the expected 

combined carry-in will be 414,288 

pounds. This results in a combined 

required salable quantity of 1,515,712 

pounds. With volume control, sales by 

producers for the 2011–2012 marketing 

year would be limited to 1,707,757 

pounds (the recommended salable 

quantity for both classes of spearmint 

oil). 

The recommended allotment 

percentages, upon which 2011–2012 

producer allotments are based, are 34 

percent for Scotch and 44 percent for 

Native. Without volume controls, 

producers would not be limited to these 

allotment levels, and could produce and 

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Federal Register / Vol. 76, No. 43 / Friday, March 4, 2011 / Proposed Rules 11977 

sell additional spearmint. The 

econometric model estimated a $1.89 

decline in the season average producer 

price per pound (from both classes of 

spearmint oil) resulting from the higher 

quantities that would be produced and 

marketed without volume control. The 

surplus situation for the spearmint oil 

market that would exist without volume 

controls in 2011–2012 also would likely 

dampen prospects for improved 

producer prices in future years because 

of the buildup in stocks. 

The use of volume controls allows the 

industry to fully supply spearmint oil 

markets while avoiding the negative 

consequences of over-supplying these 

markets. The use of volume controls is 

believed to have little or no effect on 

consumer prices of products containing 

spearmint oil and will not result in 

fewer retail sales of such products. 

The Committee discussed alternatives 

to the recommendations contained in 

this rule for both classes of spearmint 

oil. The Committee discussed and 

rejected the idea of recommending that 

there not be any volume regulation for 

both classes of spearmint oil because of 

the severe price-depressing effects that 

would occur without volume control. 

After computing the initial 29.5 

percent Scotch spearmint oil allotment 

percentage, the Committee considered 

various alternative levels of volume 

control for Scotch spearmint oil. 

Considered levels ranged from 30 

percent to 40 percent. Given the 

moderately improving marketing 

conditions, there was consensus that the 

allotment percentage for 2011–2012 

should be more than the percentage 

established for the 2010–2011 marketing 

year (28 percent). After considerable 

discussion, in a vote of six members in 

favor and two members opposed, the 

Committee determined that 694,774 

pounds and 34 percent would be the 

most effective salable quantity and 

allotment percentage, respectively, for 

the 2011–2012 marketing year. The two 

dissenting members felt that the salable 

quantity and allotment percentage 

should be set at some unidentified 

higher level. 

The Committee was also able to reach 

a consensus regarding the level of 

volume control for Native spearmint oil. 

After first determining the computed 

allotment percentage at 39.7 percent, the 

Committee voted unanimously to 

recommend 1,012,983 pounds and 44 

percent for the effective salable quantity 

and allotment percentage, respectively, 

for the 2011–2012 marketing year. 

As noted earlier, the Committee’s 

recommendation to establish salable 

quantities and allotment percentages for 

both classes of spearmint oil was made 

after careful consideration of all 

available information, including: (1) The 

estimated quantity of salable oil of each 

class held by producers and handlers; 

(2) the estimated demand for each class 

of oil; (3) the prospective production of 

each class of oil; (4) the total of 

allotment bases of each class of oil for 

the current marketing year and the 

estimated total of allotment bases of 

each class for the ensuing marketing 

year; (5) the quantity of reserve oil, by 

class, in storage; (6) producer prices of 

oil, including prices for each class of oil; 

and (7) general market conditions for 

each class of oil, including whether the 

estimated season average price to 

producers is likely to exceed parity. 

Based on its review, the Committee 

believes that the salable quantity and 

allotment percentage levels 

recommended would achieve the 

objectives sought. 

Without any regulations in effect, the 

Committee believes the industry would 

return to the pronounced cyclical price 

patterns that occurred prior to the order, 

and that prices in 2011–2012 could 

decline substantially below current 

levels. 

According to the Committee, the 

recommended salable quantities and 

allotment percentages are expected to 

facilitate the goal of establishing orderly 

marketing conditions for Far West 

spearmint oil. 

As previously stated, annual salable 

quantities and allotment percentages 

have been issued for both classes of 

spearmint oil since the order’s 

inception. Reporting and recordkeeping 

requirements have remained the same 

for each year of regulation. These 

requirements have been approved by the 

Office of Management and Budget under 

OMB Control No. 0581–0178, Vegetable 

and Specialty Crops. Accordingly, this 

rule would not impose any additional 

reporting or recordkeeping requirements 

on either small or large spearmint oil 

producers or handlers. As with all 

Federal marketing order programs, 

reports and forms are periodically 

reviewed to reduce information 

requirements and duplication by 

industry and public sector agencies. 

Furthermore, USDA has not identified 

any relevant Federal rules that 

duplicate, overlap, or conflict with this 

rule. 

AMS is committed to complying with 

the E-Government Act, to promote the 

use of the Internet and other 

information technologies to provide 

increased opportunities for citizen 

access to Government information and 

services, and for other purposes. 

In addition, the Committee’s meeting 

was widely publicized throughout the 

spearmint oil industry and all interested 

persons were invited to attend the 

meeting and participate in Committee 

deliberations on all issues. Like all 

Committee meetings, the October 13, 

2010, meeting was a public meeting and 

all entities, both large and small, were 

able to express views on this issue. 

Finally, interested persons are invited to 

submit comments on this proposed rule, 

including the regulatory and 

informational impacts of this action on 

small businesses. 

A small business guide on complying 

with fruit, vegetable, and specialty crop 

marketing agreements and orders may 

be viewed at: http://www.ams.usda.gov/ 

MarketingOrdersSmallBusinessGuide. 

Any questions about the compliance 

guide should be sent to Antoinette 

Carter at the previously mentioned 

address in the FOR FURTHER INFORMATION

CONTACT section. 

A 30-day comment period is deemed 

appropriate to allow interested persons 

the opportunity to respond to this 

proposal, taking into account that the 

marketing year begins on June 1, 2011. 

All written comments timely received 

will be considered before a final 

determination is made on this matter. 

List of Subjects in 7 CFR Part 985 

Marketing agreements, Oils and fats, 

Reporting and recordkeeping 

requirements, Spearmint oil. 

For the reasons set forth in the 

preamble, 7 CFR part 985 is proposed to 

be amended as follows: 

PART 985—MARKETING ORDER 

REGULATING THE HANDLING OF 

SPEARMINT OIL PRODUCED IN THE 

FAR WEST 

1. The authority citation for 7 CFR 

part 985 continues to read as follows: 

Authority: 7 U.S.C. 601–674. 

2. A new § 985.230 is added to read 

as follows: [Note: This section will not 

appear in the Code of Federal 

Regulations.] 

§ 985.230 Salable quantities and allotment 

percentages—2011–2012 marketing year. 

The salable quantity and allotment 

percentage for each class of spearmint 

oil during the marketing year beginning 

on June 1, 2011, shall be as follows: 

(a) Class 1 (Scotch) oil—a salable 

quantity of 694,774 pounds and an 

allotment percentage of 34 percent. 

(b) Class 3 (Native) oil—a salable 

quantity of 1,012,983 pounds and an 

allotment percentage of 44 percent. 

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11978 Federal Register / Vol. 76, No. 43 / Friday, March 4, 2011 / Proposed Rules 

Dated: February 25, 2011. 

David R. Shipman, 

Acting Administrator, Agricultural Marketing 

Service. 

[FR Doc. 2011–4810 Filed 3–3–11; 8:45 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 71 

[Docket No. FAA–2011–0010; Airspace 

Docket No. 11–AAL–1] 

RIN 2120–AA66 

Proposed Amendment of Federal 

Airways; Alaska 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Notice of proposed rulemaking 

(NPRM). 

SUMMARY: This action proposes to revise 

all Anchorage, AK, Federal airways that 

are affected by the relocation of the 

Anchorage VHF Omnidirectional Range 

(VOR) navigation aid. This action is 

necessary for the safety and 

management of Instrument Flight Rules 

(IFR) within the National Airspace 

System. 

DATES: Comments must be received on 

or before April 18, 2011. 

ADDRESSES: Send comments on this 

proposal to the U.S. Department of 

Transportation, Docket Operations, 

M–30, 1200 New Jersey Avenue, SE., 

West Building Ground Floor, Room 

W12–140, Washington, DC 20590–0001; 

telephone: (202) 366–9826. You must 

identify FAA Docket No. FAA–2011– 

0010 and Airspace Docket No. 11–AAL– 

1 at the beginning of your comments. 

You may also submit comments through 

the Internet at http:// 

www.regulations.gov. 

FOR FURTHER INFORMATION CONTACT: Ken 

McElroy, Airspace, Regulation and ATC 

Procedures Group, Office of Airspace 

Services, Federal Aviation 

Administration, 800 Independence 

Avenue, SW., Washington, DC 20591; 

telephone: (202) 267–8783. 

SUPPLEMENTARY INFORMATION: 

Comments Invited 

Interested parties are invited to 

participate in this proposed rulemaking 

by submitting such written data, views, 

or arguments as they may desire. 

Comments that provide the factual basis 

supporting the views and suggestions 

presented are particularly helpful in 

developing reasoned regulatory 

decisions on the proposal. Comments 

are specifically invited on the overall 

regulatory, aeronautical, economic, 

environmental, and energy-related 

aspects of the proposal. 

Communications should identify both 

docket numbers (FAA Docket No. FAA– 

2011–0010 and Airspace Docket No. 11– 

AAL–1) and be submitted in triplicate to 

the Docket Management Facility (see 

ADDRESSES section for address and 

phone number). You may also submit 

comments through the Internet at 

http://www.regulations.gov. 

Commenters wishing the FAA to 

acknowledge receipt of their comments 

on this action must submit with those 

comments a self-addressed, stamped 

postcard on which the following 

statement is made: ‘‘Comments to FAA 

Docket No. FAA–2011–0010 and 

Airspace Docket No. 11–AAL–1.’’ The 

postcard will be date/time stamped and 

returned to the commenter. 

All communications received on or 

before the specified closing date for 

comments will be considered before 

taking action on the proposed rule. The 

proposal contained in this action may 

be changed in light of comments 

received. All comments submitted will 

be available for examination in the 

public docket both before and after the 

closing date for comments. A report 

summarizing each substantive public 

contact with FAA personnel concerned 

with this rulemaking will be filed in the 

docket. 

Availability of NPRMs 

An electronic copy of this document 

may be downloaded through the 

Internet at http://www.regulations.gov. 

Recently published rulemaking 

documents can also be accessed through 

the FAA’s web page at http://www.faa.

gov/air_traffic/publications/airspace_

amendments/. 

You may review the public docket 

containing the proposal, any comments 

received and any final disposition in 

person in the Dockets Office (see 

ADDRESSES section for address and 

phone number) between 9 a.m. and 5 

p.m., Monday through Friday, except 

Federal holidays. An informal docket 

may also be examined during normal 

business hours at the office of the 

Alaskan Service Center, Operations 

Support Group, Federal Aviation 

Administration, 222 West 7th Avenue, 

Box 14, Anchorage, AK 99513. 

Persons interested in being placed on 

a mailing list for future NPRMs should 

contact the FAA’s Office of Rulemaking, 

(202) 267–9677, for a copy of Advisory 

Circular No. 11–2A, Notice of Proposed 

Rulemaking Distribution System, which 

describes the application procedure. 

Background 

The Anchorage VOR, located on Fire 

Island, is one of the navigation aids 

used to form points along numerous 

Federal airways in Alaska. Due to 

construction of wind turbines on Fire 

Island, AK, the Anchorage VOR is being 

relocated to Ted Stevens Anchorage 

International Airport and renamed. In 

addition, the equipment is being 

upgraded to a DOPPLER VOR/distance 

measuring equipment (VOR/DME) 

facility that would improve coverage 

and reliability. Due to the relocation, the 

published radials from the old 

Anchorage VOR/DME, as used in each 

route description, will change by several 

degrees. 

The Proposal 

The FAA is proposing an amendment 

to Title 14 Code of Federal Regulations 

(14 CFR) part 71 to amend Federal 

airways that currently use the 

Anchorage (ANC) VOR located on Fire 

Island, AK. The ANC VOR is being 

upgraded to a Doppler VOR and 

redesignated as the Anchorage (TED) 

VOR. The Doppler VOR will be located 

on the Ted Stevens Anchorage 

International Airport property. This 

action would affect 15 Low Altitude 

Federal airways (Victor Airways and 

T–Routes), and 14 High Altitude Federal 

airways (Jet Routes and Q–Routes). In 

addition to these airways using the TED 

VOR as the new reference point, the 

descriptions would be adjusted, where 

necessary, to show new radials to 

describe airway intersections. 

VOR Federal airways, United States 

Area Navigation Routes (low), Jet 

Routes, Alaska Area Navigation Routes, 

and United States Area Navigation 

Routes (high), are published in 

paragraphs 6010, 6011, 2004, 2005, and 

2006, respectively, of FAA Order 

7400.9U, dated August 18, 2010 and 

effective September 15, 2010, which is 

incorporated by reference in 14 CFR 

71.1. The Federal Airways listed in this 

document will be published 

subsequently in the Order. 

The FAA has determined that this 

proposed regulation only involves an 

established body of technical 

regulations for which frequent and 

routine amendments are necessary to 

keep them operationally current. 

Therefore, this proposed regulation: 

(1) Is not a ‘‘significant regulatory 

action’’ under Executive Order 12866; 

(2) is not a ‘‘significant rule’’ under 

Department of Transportation (DOT) 

Regulatory Policies and Procedures (44 

FR 11034; February 26, 1979); and (3) 

does not warrant preparation of a 

regulatory evaluation as the anticipated 

mstockstill on DSKH9S0YB1PROD with PROPOSALS