[Federal Register Volume 69, Number 229 (Tuesday, November 30, 2004)]
[Proposed Rules]
[Pages 69557-69561]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-26329]


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DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Part 9

[Notice No. 25]
RIN 1513-AA77


Proposed Establishment of the Texoma Viticultural Area (2003R-
110P)

AGENCY: Alcohol and Tobacco Tax and Trade Bureau, Treasury.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Alcohol and Tobacco Tax and Trade Bureau proposes to 
establish the ``Texoma'' viticultural area in north-central Texas in 
Montague, Cooke, Grayson, and Fannin Counties. The proposed area 
consists of approximately 3,650 square miles on the southern side of 
Lake Texoma and the Red River, along the Texas-Oklahoma State line. We 
designate viticultural areas to allow bottlers to better describe the 
origin of wines and allow consumers to better identify the wines they 
may purchase. We invite comments on this proposed addition to our 
regulations.

DATES: We must receive written comments on or before January 31, 2005.

ADDRESSES: You may send comments to any of the following addresses:
    <bullet> Chief, Regulations and Procedures Division, Alcohol and 
Tobacco Tax and Trade Bureau, Attn: Notice No. 25, P.O. Box 14412, 
Washington, DC 20044-4412.
    <bullet> 202-927-8525 (facsimile).
    <bullet> <a href="/cdn-cgi/l/email-protection#5b352b29361b2f2f39753c342d"><span class="__cf_email__" data-cfemail="f09e80829db0848492de979f86">[email protected]</span></a> (e-mail).
    <bullet> http://www.ttb.gov/alcohol/rules/index.htm. An online 
comment form is posted with this notice on our Web site.
    <bullet> http://www.regulations.gov (Federal e-rulemaking portal; 
follow instructions for submitting comments).
    You may view copies of this notice, the petition, the appropriate 
maps, and any comments we receive about this notice by appointment at 
the TTB Library, 1310 G Street, NW., Washington, DC 20220. To make an 
appointment, call 202-927-2400. You may also access copies of the 
notice and comments online at http://www.ttb.gov/alcohol/rules/index.htm.
    See the Public Participation section of this notice for specific 
instructions and requirements for submitting comments, and for 
information on how to request a public hearing.

FOR FURTHER INFORMATION CONTACT: Jennifer Berry, Alcohol and Tobacco 
Tax and Trade Bureau, Regulations and

[[Page 69558]]

Procedures Division, P.O. Box 18152, Roanoke, VA 24014; telephone 540-
344-9333.

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 geographic 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--
    <bullet> Evidence that the proposed viticultural area is locally 
and/or nationally known by the name specified in the petition;
    <bullet> Historical or current evidence that supports setting the 
boundary of the proposed viticultural area as the petition specifies;
    <bullet> Evidence relating to the geographical features, such as 
climate, soils, elevation, and physical features, that distinguish the 
proposed viticultural area from surrounding areas;
    <bullet> A description of the specific boundary of the proposed 
viticultural area, based on features found on United States Geological 
Survey (USGS) maps; and
    <bullet> A copy of the appropriate USGS map(s) with the proposed 
viticultural area's boundary prominently marked.

Texoma Petition

    The Texoma Appellation Committee, Denison, Texas, has petitioned 
TTB to establish the ``Texoma'' viticultural area in north-central 
Texas. Located along the Texas-Oklahoma State line on the southern side 
of Lake Texoma and the Red River, the proposed area covers 3,650 square 
miles, or about 2.3 million acres, in Montague, Cooke, Grayson, and 
Fannin Counties. According to the petitioners, the area contains four 
wineries and a number of small vineyards with approximately 55 acres 
planted to vines. The petitioners state that both Vitis vinifera and 
native Texas grape varieties thrive in Texoma.

Name Evidence

    The name ``Texoma'' originates with Lake Texoma, a large Army Corps 
of Engineers lake on the Texas-Oklahoma State line. According to the 
petitioners, people have referred to the proposed area as ``Texoma'' 
for over 60 years, roughly since the completion of Lake Texoma in 1938.
    The petition included numerous examples of the use of the name 
``Texoma'' by businesses and governments serving the four-county 
(Montague, Cooke, Grayson, and Fannin) area. Examples include: the 
Texoma Regional Health Care system, the Texoma Association of Realtors, 
the Texoma Council of Governments, the Texoma Women's and Children's 
Center, Texoma Workforce Commission, Texoma Center for Family Medicine, 
Texoma Christian Middle School, and the Texoma Council for the Deaf.
    The petitioners state that an Internet search for the word 
``Texoma'' returned 6,407 pages of references. None refers to a 
location outside the four-county area.
    The petitioners note that several counties in southern Oklahoma are 
usually included in the Texoma region. However, the petitioners state 
that Oklahoma State winery fees have prevented the establishment of a 
successful wine district on the northern side of the State line.

Boundary Evidence

    The petitioners state that the proposed Texoma viticultural area's 
boundaries encompass the sloping pastureland in this portion of the Red 
River drainage basin. While the Red River and Lake Texoma form the 
proposed area's northern boundary, the ridge between the Red River 
drainage basin and the Trinity River drainage basin form its southern 
boundary. The Montague County line forms most of the western boundary, 
while the Fannin County line forms most of the eastern boundary.
    The petitioners assert that the proposed area's boundaries 
correspond to those of the Texoma region of Texas. The petitioners 
further state that Texoma has unique growing conditions--soils, 
topography, and climate--that are advantageous for grape growing.
    As historical evidence for the proposed boundaries, the petitioners 
cite Texoma's contributions to world viticultural history. Renowned 
19th-century viticulturalist Thomas Volney (T.V.) Munson chose Texoma 
as the site for his experimental vineyards. An expert on native 
American grape varieties, he was particularly excited by Texoma's 
varieties of native grapes, calling the area his ``grape paradise.'' He 
developed over 300 new grape varieties from the wild grapes growing 
along the bluffs of the Red River and its tributaries. When phylloxera 
threatened to destroy French vineyards, Munson shipped thousands of 
phylloxera-resistant Texas rootstocks to France and had them grafted 
with European vinifera varieties. In 1888, the French government 
awarded Munson the French Legion of Honor for his role in saving their 
wine industry.
    Today, the T.V. Munson Memorial Vineyard at Grayson County College 
in Denison, Texas, carries on Munson's legacy. The vineyard grows 65 of 
the 300 grape varieties developed by Munson, and the college, unlike 
most junior colleges in the nation, bestows associate degrees in 
viticulture.
    Because of the importance of native grape species to the 
viticultural history and identity of the Texoma region, the petitioners 
based their southern boundary in part on the distribution of wild 
grapevines through the area. Because wild grapevines generally do not 
grow on the south-facing slopes beyond the ridge dividing the Red River 
and Trinity River drainage basins, the petitioners excluded certain 
southern portions of the four counties from the proposed Texoma area.

[[Page 69559]]

Growing Conditions

Soils
    The petitioners state that Texoma soils differ from the soils in 
surrounding areas. Texoma contains sandy, loamy soils that provide good 
drainage for vineyards. Surrounding areas contain black-land soils, 
which do not provide good drainage for vineyards. The petitioners note 
that some areas south and southwest of the proposed viticultural area 
also have sandy, loamy soils, but that these soils lie outside the 
boundaries of the Texoma area. The petitioners state that, unlike the 
soils of surrounding areas, Texoma's soils, because of their sandiness, 
contain practically no phylloxera.
    The petitioners submitted a detailed soil report on the Texoma area 
prepared by a committee of soil scientists: Maurice Jurena and Jerry 
Rives of the U.S. Department of Agriculture's Natural Resources 
Conservation Service, Dr. George McEachern of Texas A&M University, and 
Dr. Charles E. Pehl, a private consultant. The report lists 36 soil 
series suitable for viticulture in the proposed area. Maps show these 
soil series throughout the Texoma area. According to the authors, these 
soils have the characteristics needed for productive vineyards--good 
internal drainage, adequate soil depth, and good water-holding 
capacity. Based on available soil surveys of the area, the authors 
state that approximately one-third of the proposed area, an estimated 
690,000 acres (1,078 sq. miles), should be suitable for productive 
viticulture. The report describes three soils of particular interest:

    The Hicota series consists of fine sandy loams that are deep, 
moderately well drained, slowly permeable, and have good water 
holding capacity. These soils are found on the high terraces mainly 
along the Red River. Formed in loamy alluvium, their slopes range 
from 0 to 3 percent * * *.
    The Freestone series consists of fine sandy loams that are very 
deep, moderately well drained, slowly permeable, and have good water 
holding capacity. These soils are found on Pleistocene terraces of 
remnant terraces on upland positions. Formed in loamy and clayey 
sediments, their slopes vary from 0 to 5 percent. The soils have 
aquic soil moisture conditions due to an extremely thin area of 
episaturation above the clay layer in the spring at a depth of 20 to 
40 inches during most years.
    The Frioton series consists of silty clay loams that are very 
deep, well drained, moderately slowly permeable, with good water 
holding capacity. Formed in loamy and clayey Pleistocene sediments 
on nearly level flood plains, their slopes range from 0 to 1 
percent. They may be flooded for very brief periods during the 
months of February to July.

    As additional soil evidence, the petitioners submitted soil survey 
maps published by the Natural Resources Conservation Service, U.S. 
Department of Agriculture, for each of the four counties in the 
proposed area. These maps consistently describe the various soils of 
Texoma, including those detailed in the petitioner's soil report, as 
either ``loamy and sandy'' or ``loamy and clayey.''
Topography
    The petitioners state that much of Texoma's land slopes downward 
and northward toward the Red River. The elevation ranges from a low of 
597 feet above sea level in northeast Fannin County to a high of 1,271 
feet on ridges in southeast Montague County. Evening breezes drain the 
intense heat of the day off Texoma's bluffs and rolling hillsides, 
cooling the vineyards. Numerous small creeks flow northward to Lake 
Texoma and the Red River throughout Texoma. Several varieties of wild 
grapes grow in these creek beds, just as they did in the days of T.V. 
Munson.
    According to the petitioners, Texoma's north-facing slopes (3 
percent to 12 percent slope) diminish the power of the summer sun and 
thus provide excellent vineyard sites. The petitioners state that 
recent research indicates that, in June, 15-degree north-facing slopes 
can reduce the sunlight index from 107 to 86. (The sunlight index is a 
scale measuring the amount of solar radiation received by plants.) This 
results in significantly less heat stress on the vines. In September, 
the effect is even greater, with the sunlight index reduced from 122 to 
70. The petitioners contrast this with land south of Texoma in the 
Dallas-Fort Worth area. There the land slopes south, resulting in a 
much higher sunlight index and greater heat stress on grape vines.
    The petitioners note that, in addition to Lake Texoma, the Texoma 
area has numerous lakes and ponds. These bodies of water provide a 
large reserve for irrigating the area's vineyards. The petitioners also 
believe that sunlight reflecting off these bodies of water helps to 
ripen grapes. They note that a similar effect occurs in New York's 
Finger Lakes region and in Germany's Mosel and Rhine River valleys. 
Gentle breezes off Lake Texoma provide advection warming to the 
surrounding hillsides during cool autumn nights.
Climate
    According to the petitioners, Texoma's climate is favorable for 
grape growing, while the climate of surrounding areas is not. Texoma's 
temperatures for November through February generally are 5.3 to 6.7 
degrees cooler than those in areas to the south and southeast, such as 
the Dallas-Fort Worth area (which averages 33.6[deg] F) and Greenville, 
Texas (which averages 34.9[deg] F). Texoma's winter temperatures in the 
mid- and upper-20s are cold enough to kill the insect that causes 
Pierce's disease, while causing no damage to vineyards. The petitioners 
state that vineyards in the Dallas-Fort Worth area have, in contrast, 
suffered extensive damage from Pierce's disease.
    Areas north and west of Texoma, such as Oklahoma and northwestern 
Texas, have winter temperatures that are 4 to 6 degrees colder than 
Texoma's. These temperatures increase the risk of damage to vines. 
Freeze and thaw cycles in these areas can split vine trunks, while the 
milder winter temperatures of Texoma prevent such damage.
    The petitioners assert that Texoma's precipitation is also 
favorable for grape growing. While its vineyards rely to some extent on 
irrigation, Texoma receives an annual rainfall of 30 to 40 inches, 
which is close to sufficient. As one heads west from Texoma, the 
climate is increasingly drier. Wichita Falls, Texas, for example, 
receives only 28 inches of rain a year, an amount that cannot sustain 
vineyards. Few sources of water for irrigation, such as Lake Texoma, 
exist west of Texoma. Areas east of Texoma receive much heavier 
rainfall, as much as 51 inches annually in Texarkana. Such heavy 
rainfall often results in standing water, which can cause root rot and 
kill vines.

Boundary Description

    See the narrative boundary description of the petitioned-for 
viticultural area in the proposed regulatory text published at the end 
of this notice.

Maps

    The petitioner provided the required maps, and we list them below 
in the proposed 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. If we establish this proposed viticultural area, its 
name, ``Texoma,'' will be recognized as a name of viticultural 
significance. Consequently, wine bottlers using ``Texoma'' in a brand 
name, including a trademark, or in another label reference as to the 
origin of the wine, will have to ensure that the product is eligible to 
use the viticultural area's name as an appellation of origin. The 
proposed part 9 regulatory text set forth in this

[[Page 69560]]

document specifies the ``Texoma'' name as a term of viticultural 
significance for purposes of part 4 of the TTB regulations.
    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. 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. Accordingly, if a 
new label or a previously approved label uses the name ``Texoma'' for a 
wine that does not meet the 85 percent standard, the new label will not 
be approved, and the previously approved label will be subject to 
revocation, upon the effective date of the approval of the Texoma 
viticultural area.
    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.

Public Participation

Comments Invited

    We invite comments from interested members of the public on whether 
we should establish the proposed viticultural area. We are also 
interested in receiving comments on the sufficiency and accuracy of the 
name, climactic, boundary, and other required information submitted in 
support of the petition. Please provide any available specific 
information in support of your comments. In addition, TTB is interested 
in comments concerning the exclusion of those counties in Oklahoma that 
are considered to be within the Texoma region from the petitioned 
viticultural area. This includes information on any wine grape growing 
in those Oklahoma counties.
    Because of the potential impact of the establishment of the 
proposed Texoma viticultural area on brand labels that include the 
words ``Texoma'' as discussed above under Impact on Current Wine 
Labels, we are particularly interested in comments regarding whether 
there will be a conflict between the proposed area name and currently 
used brand names. If a commenter believes that a conflict will arise, 
the comment should describe the nature of that conflict, including any 
negative economic impact that approval of the proposed viticultural 
area will have on an existing viticultural enterprise. We are also 
interested in receiving suggestions for ways to avoid any conflicts, 
for example by adopting a modified or different name for the 
viticultural area.

Confidentiality

    All comments and submitted materials are part of the public record 
and subject to disclosure. Do not enclose any material in your comments 
that you consider confidential or inappropriate for public disclosure.

Submitting Comments

    Please submit your comments by the closing date shown above in this 
notice. All comments must include this notice number and your name and 
mailing address. Your comments must be legible and written in language 
acceptable for public disclosure. We do not acknowledge receipt of 
comments, and we regard all comments as originals.
    You may submit comments in any of five ways:
    <bullet> Mail: You may send written comments to TTB at the address 
listed in the ADDRESSES section.
    <bullet> Facsimile: You may submit comments by facsimile 
transmission to 202-927-8525. Faxed comments must--
    (1) Be on 8.5- by 11-inch paper;
    (2) Contain a legible, written signature; and
    (3) Be no more than five pages long. This limitation assures 
electronic access to our equipment. We will not accept faxed comments 
that exceed five pages.
    <bullet> E-mail: You may e-mail comments to <a href="/cdn-cgi/l/email-protection#a8c6d8dac5e8dcdcca86cfc7de"><span class="__cf_email__" data-cfemail="e08e90928da0949482ce878f96">[email protected]</span></a>. Comments 
transmitted by electronic mail must--
    (1) Contain your e-mail address;
    (2) Reference this notice number on the subject line; and
    (3) Be legible when printed on 8.5- by 11-inch paper.
    <bullet> Online form: We provide a comment form with the online 
copy of this notice on our Web site at http://www.ttb.gov/alcohol/rules/index.htm. Select the ``Send comments via e-mail'' link under 
this notice number.
    <bullet> Federal e-Rulemaking Portal: To submit comments to us via 
the Federal e-rulemaking portal, visit http://www.regulations.gov and 
follow the instructions for submitting comments.
    You may also write to the Administrator before the comment closing 
date to ask for a public hearing. The Administrator reserves the right 
to determine, in light of all circumstances, whether to hold a public 
hearing.

Public Disclosure

    You may view copies of this notice, the petition, the appropriate 
maps, and any comments we receive by appointment at the TTB Library at 
1310 G Street, NW., Washington, DC 20220. You may also obtain copies at 
20 cents per 8.5 x 11-inch page. Contact our librarian at the above 
address or telephone 202-927-2400 to schedule an appointment or to 
request copies of comments.
    For your convenience, we will post this notice and any comments we 
receive on the TTB Web site. We may omit voluminous attachments or 
material that we consider unsuitable for posting. In all cases, the 
full comment will be available in the TTB Library. To access the online 
copy of this notice, visit http://www.ttb.gov/alcohol/rules/index.htm. 
Select the ``View Comments'' link under this notice number to view the 
posted comments.

Regulatory Flexibility Act

    We certify that this proposed regulation, if adopted, would not 
have a significant economic impact on a substantial number of small 
entities. The proposed regulation imposes no new reporting, 
recordkeeping, or other administrative requirement. Any benefit derived 
from the use of a viticultural area name would be 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 proposed rule is not a significant regulatory action as 
defined by Executive Order 12866, 58 FR 51735. Therefore, it requires 
no regulatory assessment.

Drafting Information

    Jennifer Berry of the Regulations and Procedures Division drafted 
this notice.

List of Subjects in 27 CFR Part 9

    Wine.

Proposed Regulatory Amendment

    For the reasons discussed in the preamble, we propose to amend 27 
CFR, chapter I, part 9, Code of Federal Regulations, as follows:

PART 9--AMERICAN VITICULTURAL AREAS

    1. The authority citation for part 9 continues to read as follows:

    Authority: 27 U.S.C. 205.

    2. Amend subpart C by adding Sec.  9.------ to read as follows:

[[Page 69561]]

Subpart C--Approved American Viticultural Areas

Sec.  9.------ Texoma.

    (a) Name. The name of the viticultural area described in this 
section is ``Texoma''. For purposes of part 4 of this chapter, 
``Texoma'' is a term of viticultural significance.
    (b) Approved maps. The two USGS, 1:250,000 scale, topographic maps 
used to determine the boundaries of the Texoma viticultural area are 
titled--
    (1) Sherman, Texas; Oklahoma, 1954, revised 1977; and
    (2) Texarkana, Tex.; Ark.; Okla.; La., 1953, revised 1972.
    (c) Boundary. The Texoma viticultural area is located in Montague, 
Cooke, Grayson, and Fannin counties, Texas. The area's boundaries are 
defined as follows--
    (1) The point of beginning is the northwest corner of Montague 
County on the Sherman map. From this point, the boundary line--
    (2) Follows the Red River eastward along the Texas-Oklahoma State 
line to the northeast corner of Fannin County on the Texarkana map;
    (3) Continues southward along the eastern Fannin County line to a 
point, approximately three miles west of Petty, Texas, where a power 
line crosses the county line;
    (4) Continues southwest in a straight line for approximately 13 
miles to the intersection of State Routes 34 and 50 in Ladonia, Texas;
    (5) Follows State Route 34 west to its intersection with State 
Route 68 on the Sherman map;
    (6) From that intersection, continues west-southwesterly in a 
straight line to the intersection of U.S. Highway 69 and State Route 78 
at Leonard, Texas;
    (7) Continues northwest on U.S. Highway 69 for approximately 6 
miles to its intersection with State Route 121 at Trenton, Texas;
    (8) From that intersection, continues westerly in a straight line 
to the intersection of State Routes 160 and 121, and continues west on 
State Route 121 to its intersection with U.S. Highway 75 at Van 
Alstyne, Texas;
    (9) Continues south along U.S. Highway 75 to the Grayson County 
line;
    (10) Continues west along the southern Grayson County line and then 
the southern Cooke County line to the line's intersection with 
Interstate 35;
    (11) Continues north along Interstate 35 to its intersection with 
State Route 922 at Valley View, Texas;
    (12) Follows State Route 922 west for approximately 17 miles to 
Rosston, Texas;
    (13) Continues west-southwest from Rosston in a straight line for 
approximately 19 miles to the intersection of U.S. Highway 287 and 
State Route 101 at Sunset, Texas;
    (14) Follows U.S. 287 northwest approximately 17 miles to the 
western Montague County line; and
    (15) Continues north along the western Montague County line to the 
starting point at the northwest corner of Montague County.

    Signed: November 10, 2004.
Arthur J. Libertucci,
Administrator.
[FR Doc. 04-26329 Filed 11-29-04; 8:45 am]
BILLING CODE 4810-31-P


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