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contains regulatory documents having general

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are keyed to and codified in the Code of

Federal Regulations, which is published under

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Rules and Regulations Federal Register

76341 

Vol. 77, No. 249 

Friday, December 28, 2012 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 985 

[Doc. Nos. AMS–FV–11–0088; FV12–985–1A 

IR] 

Marketing Order Regulating the 

Handling of Spearmint Oil Produced in 

the Far West; Revision of the Salable 

Quantity and Allotment Percentage for 

Class 1 (Scotch) and Class 3 (Native) 

Spearmint Oil for the 2012–2013 

Marketing Year 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Interim rule with request for 

comments. 

SUMMARY: This rule revises the quantity 

of Class 1 (Scotch) and Class 3 (Native) 

spearmint oil that handlers may 

purchase from, or handle on behalf of, 

producers during the 2012–2013 

marketing year under the Far West 

spearmint oil marketing order. This rule 

increases the Scotch spearmint oil 

salable quantity from 782,413 pounds to 

2,622,115 pounds, and the allotment 

percentage from 38 percent to 128 

percent. In addition, this rule increases 

the Native spearmint oil salable quantity 

from 1,162,473 pounds to 1,348,270 

pounds, and the allotment percentage 

from 50 percent to 58 percent. The 

marketing order regulates the handling 

of spearmint oil produced in the Far 

West and is administered locally by the 

Spearmint Oil Administrative 

Committee (Committee). The Committee 

recommended this rule for the purpose 

of maintaining orderly marketing 

conditions in the Far West spearmint oil 

market. 

DATES: Effective June 1, 2012, through 

May 31, 2013; comments received by 

February 26, 2013 will be considered 

prior to issuance of a final rule. 

ADDRESSES: Interested persons are 

invited to submit written comments 

concerning this rule. Comments must be 

sent to the Docket Clerk, Marketing 

Order and Agreement Division, Fruit 

and Vegetable Program, 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 Director, 

Northwest Marketing Field Office, 

Marketing Order and Agreement 

Division, Fruit and Vegetable Program, 

AMS, USDA; Telephone: (503) 326– 

2724, Fax: (503) 326–7440, or Email: 

Barry.Broadbent@ams.usda.gov or 

GaryD.Olson@ams.usda.gov. 

Small businesses may request 

information on complying with this 

regulation by contacting Laurel May, 

Marketing Order and Agreement 

Division, Fruit and Vegetable Program, 

AMS, USDA, 1400 Independence 

Avenue SW., STOP 0237, Washington, 

DC 20250–0237; Telephone: (202) 720– 

2491, Fax: (202) 720–8938, or Email: 

Laurel.May@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 provisions of 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 rule increases the quantity of 

Scotch and Native spearmint oil 

produced in the Far West that handlers 

may purchase from, or handle on behalf 

of, producers during the 2012–2013 

marketing year, which began on June 1, 

2012, and ends on May 31, 2013. 

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. 

This rule revises the quantity of 

Scotch and Native spearmint oil that 

handlers may purchase from, or handle 

on behalf of, producers during the 

2012–2013 marketing year under the Far 

West spearmint oil marketing order. 

This rule increases the Scotch spearmint 

oil salable quantity from 782,413 

pounds to 2,622,115 pounds, and the 

allotment percentage from 38 percent to 

128 percent. In addition, this rule 

increases the Native spearmint oil 

salable quantity from 1,162,473 pounds 

to 1,348,270 pounds, and the allotment 

percentage from 50 percent to 58 

percent. 

Under the volume regulation 

provisions of the order, the Committee 

meets each year to adopt a marketing 

policy for the ensuing year. When the 

Committee’s marketing policy 

considerations indicate a need for 

limiting the quantity of spearmint oil 

available to the market to establish or 

maintain orderly marketing conditions, 

the Committee submits a 

recommendation to the Secretary for 

volume regulation. 


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76342 Federal Register / Vol. 77, No. 249 / Friday, December 28, 2012 / Rules and Regulations 

Volume regulation under the order is 

effectuated through the establishment of 

a salable quantity and allotment 

percentage applicable to each class of 

spearmint oil handled in the production 

area during a marketing year. The 

salable quantity is the total quantity of 

each class of oil that handlers may 

purchase from, or handle on behalf of, 

producers during a given marketing 

year. The allotment percentage for each 

class of oil is derived by dividing the 

salable quantity by the total industry 

allotment base for that same class of oil. 

The total industry allotment base is the 

aggregate of all allotment base held 

individually by producers. Producer 

allotment base is the quantity of each 

class of spearmint oil that the 

Committee has determined is 

representative of a producer’s spearmint 

oil production. Each producer is allotted 

a pro rata share of the total salable 

quantity of each class of spearmint oil 

each marketing year. Each producer’s 

annual allotment is determined by 

applying the allotment percentage to the 

producer’s individual allotment base for 

each applicable class of spearmint oil. 

Salable oil held over and carried into 

the ensuing marketing year is accounted 

for by the Committee as salable carry-in 

when it considers its marketing policy. 

Producers who produce spearmint oil in 

excess of their annual allotment must 

identify such excess oil to the 

Committee. After identification, excess 

oil must be either transferred to another 

producer to fill a deficiency in that 

producer’s annual allotment or be held 

in reserve for future sale in accordance 

with the provisions of the order. 

Transfers of oil between producers to 

fill deficiencies must be completed prior 

to October 31 of each marketing year. 

Section 985.56(b) specifies that before 

November 1, or such other date as the 

Committee, with the approval of the 

Secretary, may establish, excess oil, not 

used to fill another producer’s 

deficiency, shall be delivered to the 

Committee or its designees for storage. 

Section 985.57(a) provides that on 

November 1, or such other date as the 

Committee, with the approval of the 

Secretary may establish, the Committee 

shall pool identified excess oil as 

reserve oil in such manner as to 

accurately account for its receipt, 

storage, and disposition. 

The full Committee met on October 

12, 2011, to consider its marketing 

policy for the ensuing year. At that 

meeting, the Committee determined that 

marketing conditions indicated a need 

for volume regulation of both classes of 

spearmint oil for the 2012–2013 

marketing year. The Committee 

recommended salable quantities of 

782,413 pounds and 1,162,473 pounds, 

and allotment percentages of 38 percent 

and 50 percent, respectively, for Scotch 

and Native spearmint oil. A proposed 

rule to that effect was published in the 

Federal Register on March 5, 2012 (77 

FR 13019). Comments on the proposed 

rule were solicited from interested 

persons until April 4, 2012. No 

comments were received. Subsequently, 

a final rule establishing the salable 

quantities and allotment percentages for 

Scotch and Native spearmint oil for the 

2012–2013 marketing year was 

published in the Federal Register on 

June 5, 2012 (77 FR 33076). 

Pursuant to authority contained in 

§§ 985.50, 985.51, and 985.52 of the 

order, the full eight member Committee 

met again on October 17, 2012, to 

consider pertinent market information 

on the current supply, demand, and 

price of spearmint oil. The Committee, 

in two separate motions, recommended 

that the 2012–2013 marketing year 

Scotch and Native spearmint oil 

allotment percentages be increased by 

90 percent and 8 percent, respectively. 

The motion to increase the allotment 

percentage for Scotch was unanimous, 

and the motion to increase the allotment 

percentage for Native passed with six 

members in favor and two members 

opposed. The members opposed to the 

motion agreed that an increase was 

necessary for the industry to respond to 

increasing demand, but based their 

votes on the opinion that an 8 percent 

increase was not high enough to 

adequately respond to the current 

marketing environment. 

Thus, taking into consideration the 

following discussion, this rule increases 

the 2012–2013 marketing year salable 

quantities and allotment percentages for 

Scotch and Native spearmint oil to 

2,622,115 pounds and 128 percent, and 

1,348,270 pounds and 58 percent, 

respectively. 

The total industry allotment base for 

Scotch spearmint oil for the 2012–2013 

marketing year was estimated by the 

Committee at the October 12, 2011, 

meeting at 2,058,981 pounds. This was 

later revised at the beginning of the 

2012–2013 marketing year to 2,048,527 

pounds to reflect the loss of 10,454 

pounds of base due to non-production 

of some producers’ total annual 

allotments during the 2011–2012 

marketing year. 

Section 985.53(e) of the order requires 

that producers make a bona fide effort 

to produce their entire respective 

allotment base each year. Failure to do 

so results in a reduction in the 

producer’s allotment base equivalent to 

such unproduced portion. The 10,454 

pound reduction in allotment base for 

Scotch spearmint oil reflects the total 

base surrendered by all producers due 

to the non-production of those 

producers’ total annual allotments 

during the 2011–2012 marketing year. 

When the revised total Scotch 

allotment base of 2,048,527 pounds is 

applied to the originally established 

allotment percentage of 38 percent, the 

initially established 2012–2013 

marketing year salable quantity of 

782,413 pounds is effectively modified 

to 778,440 pounds. 

The same situation applies to Native 

spearmint oil. The Committee estimated 

at the October 12, 2011, meeting that the 

total industry allotment base for Native 

spearmint oil for the 2012–2013 

marketing year was 2,324,945 pounds. 

That number was later revised at the 

beginning of the 2012–2013 marketing 

year to 2,324,604 pounds to reflect the 

bona fide effort reduction of 341 

pounds. Just as with Scotch spearmint 

oil, the 341 pound reduction in Native 

allotment base reflects the total base 

surrendered by all producers due to the 

non-production of such producers’ total 

annual allotments during the 2011–2012 

marketing year. 

When the revised total Native 

allotment base of 2,324,604 pounds is 

applied to the originally established 

allotment percentage of 50 percent, the 

initially established 2012–2013 

marketing year Native salable quantity 

of 1,162,473 pounds is effectively 

modified to 1,162,302 pounds. 

This rule makes additional amounts 

of Scotch and Native spearmint oil 

available to the market by increasing the 

salable quantity and allotment 

percentage of each class of oil. Such 

additional oil may come from spearmint 

oil produced in the current marketing 

year or by releasing oil held in the 

reserve pool. As of May 31, 2012, the 

Scotch reserve pool contained 215,350 

pounds of spearmint oil and the Native 

reserve pool contained 451,302 pounds 

of spearmint oil. 

The 90 percent increase in the Scotch 

spearmint oil allotment percentage 

established by this rule will result in a 

2012–2013 marketing year salable 

quantity of 2,622,115 pounds. Likewise, 

the 8 percent increase in the Native 

spearmint oil allotment percentage 

established by this rule will result in a 

2012–2013 marketing year salable 

quantity of 1,348,270 pounds. 

Theoretically, this reflects an additional 

1,843,665 pounds of Scotch spearmint 

oil and 185,968 pounds of Native 

spearmint oil being made available to 

the market by this rule. However, due to 

the limited amount of spearmint oil 

held in reserve by individual producers, 

the Committee expects that only an 


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Federal Register / Vol. 77, No. 249 / Friday, December 28, 2012 / Rules and Regulations 76343 

additional 197,350 pounds of Scotch 

spearmint oil and 120,254 pounds of 

Native spearmint oil will be available to 

the spearmint oil market as a result of 

this rule. 

The following is a detailed discussion 

of the Committee recommendations: 

Scotch Spearmint Oil Recommendation 

The 2012–2013 marketing year began 

on June 1, 2012, with an estimated 

carry-in of 149,740 pounds of salable 

Scotch spearmint oil. When the 

estimated carry-in is added to the 

revised 2012–2013 salable quantity of 

778,440 pounds, the result is a 

theoretical total available supply of 

Scotch spearmint oil for the 2012–2013 

marketing year of 928,180 pounds. 

However, the Committee estimates that 

Scotch spearmint oil producers do not 

have sufficient production to fill 

approximately 138,960 pounds of their 

respective 2012–2013 marketing year 

annual allotment. In addition, as the 

October 31 transfer deadline has passed, 

the anticipated deficiency experienced 

by some producers can no longer be 

filled from another producer’s excess 

oil. As such, the Committee estimates 

that the total actual supply of Scotch 

spearmint oil available to the market 

prior to the issuance of this rule is 

789,220 pounds, not the 928,180 

pounds as previously calculated. Of this 

amount, the Committee estimates that 

727,993 pounds of Scotch spearmint oil 

have already been sold or committed to 

be sold as of the October 17, 2012, 

meeting date. This leaves just 61,227 

pounds of uncommitted salable Scotch 

spearmint oil available for sale for the 

remainder of the 2012–2013 marketing 

year. The Committee believes that 

maintaining such a small amount of 

salable Scotch spearmint oil would be 

detrimental to the industry. 

In making the recommendation to 

increase the available supply of Scotch 

spearmint oil, the Committee 

considered all currently available 

information on price, supply, and 

demand. The Committee also 

considered reports and other 

information from handlers and 

producers in attendance at the meeting 

and reports presented by the Committee 

manager that were provided by handlers 

and producers who were not in 

attendance. 

Increasing the 2012–2013 marketing 

year Scotch spearmint oil allotment 

percentage by 90 percent will increase 

the salable quantity by 1,843,674 

pounds, to a total of 2,622,115 pounds. 

However, as mentioned previously, the 

net effect of the increase will be much 

less than the calculated increase due to 

the amount of actual oil individual 

producers have available from the 

unused portion of their annual 

allotment and from their reserve 

inventory. This action will make an 

estimated additional 197,350 pounds 

available to the market, which is the 

estimated total amount of Scotch 

spearmint oil held in reserve by 

producers as of the October 17, 2012, 

meeting. That amount, combined with 

the 61,227 pounds of salable Scotch 

spearmint oil currently available, will 

make a total of 258,577 pounds 

available to the market and bring the 

total available supply of Scotch 

spearmint oil for the marketing year to 

986,570 pounds. The Committee expects 

that this action will completely deplete 

reserve stocks of Scotch spearmint oil 

during the course of the 2012–2013 

marketing year. 

When the original 2012–2013 

marketing policy statement was drafted, 

handlers estimated the demand for 

Scotch spearmint oil for the 2012–2013 

marketing year at 825,000 pounds. 

Thus, the Committee’s recommendation 

for the establishment of the Scotch 

spearmint oil salable quantity and 

allotment percentage for the 2012–2013 

marketing year was based on these 

estimates and did not anticipate the 

increase in demand for Scotch 

spearmint oil that the market is 

currently experiencing. The Committee 

believes that the supply of Scotch 

spearmint oil available to the market, 

without an increase in the salable 

quantity, would be insufficient to satisfy 

the current level of demand for oil at 

reasonable price levels. It is the opinion 

of the Committee and the spearmint oil 

industry that this action is essential to 

ensuring an adequate supply of Scotch 

spearmint oil to the market. 

As previously stated, this action will 

make all of the Scotch spearmint oil 

held by the industry available for 

marketing, including the entire pool of 

reserve oil. Accordingly, to achieve the 

desired net effect under the current 

supply conditions in the industry, the 

salable quantity and allotment 

percentage established under the 

volume regulation provisions of the 

order must be set at the established high 

levels. 

The Committee records show that not 

every producer holds Scotch spearmint 

oil in reserve. Conversely, a few 

producers hold a large quantity of oil in 

reserve relative to their allotment base. 

Given the process by which volume 

regulation is effectuated under the 

order, those producers with large 

amounts of reserve oil are only able to 

market their entire inventory of reserve 

oil when the allotment percentage is set 

very high. Likewise, producers that do 

not hold Scotch spearmint oil in reserve 

do not have oil inventory to market, 

regardless of the level of increase. As 

such, the Committee expects that 

establishing a high salable quantity and 

allotment percentage for Scotch 

spearmint oil will translate into a large 

amount of the increased salable quantity 

going unmarketed, as many producers 

have little or no reserve oil available to 

sell. 

As an example, assume Producer A 

has 2,000 pounds of Scotch spearmint 

oil allotment base. In addition, assume 

that during the 2012–2013 marketing 

year Producer A produced 760 pounds 

of Scotch spearmint oil and currently 

holds 1,800 pounds in reserve from 

production in prior years. Given that the 

initial 2012–2013 marketing year 

allotment percentage was established at 

38 percent, Producer A would be able to 

use all 760 pounds of the current year 

production (38 percent × 2,000 pounds). 

Without an increase in the allotment 

percentage, however, the producer 

would not be able to use any reserve oil. 

For Producer A to use all 1,800 pounds 

of the producer’s reserve oil, the 

allotment percentage would need to be 

increased by 90 percent, to a total of 128 

percent (90 percent × 2,000 pounds = 

1,800 pounds). An increase in the 

allotment percentage of anything less 

than 90 percent would fail to release all 

of the Scotch spearmint oil he holds in 

reserve. 

In contrast, assume that another 

producer, Producer B, likewise has 

2,000 pounds of Scotch spearmint oil 

allotment base and produced 760 

pounds of Scotch spearmint oil during 

the 2012–2013 marketing year. Unlike 

Producer A, however, Producer B has no 

oil held in reserve. As in the first case, 

Producer B would be able to use all of 

the producer’s current year production 

under the initial allotment percentage of 

38 percent. However, a subsequent 

increase in the allotment percentage of 

90 percent would have no impact on 

Producer B, as there is no reserve oil for 

the producer to use. As a result, the 

theoretical 1,800 pounds of additional 

annual allotment allocated to Producer 

B after a 90 percent increase in the 

allotment percentage would go unfilled. 

As mentioned previously, the 

Committee estimated at the October 17 

meeting that producers hold just 

197,350 pounds of Scotch spearmint oil 

in reserve. The Committee estimates 

that a 90 percent increase in the 

allotment percentage is required to 

release the entire Scotch spearmint oil 

reserve pool to the market. The 

Committee acknowledges that the high 

allotment percentage will create a large 

theoretical salable quantity for which no 


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76344 Federal Register / Vol. 77, No. 249 / Friday, December 28, 2012 / Rules and Regulations 

Scotch spearmint oil actually exists. 

Accordingly, the Committee expects 

that a large portion of the recommended 

1,843,674 pound increase in salable 

quantity will go unfilled. 

The Committee’s stated intent in the 

use of marketing order volume control 

regulation 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 increasing the 

Scotch spearmint oil salable quantity 

and allotment percentage for the 2012– 

2013 marketing year based on the 

information discussed above, as well as 

the summary data outlined below. 

(A) Estimated 2012–2013 Scotch 

Allotment Base—2,058,981 pounds. 

This is the estimate on which the 

original 2012–2013 salable quantity and 

allotment percentage was based. 

(B) Revised 2012–2013 Scotch 

Allotment Base—2,048,527 pounds. 

This is 10,454 pounds less than the 

estimated allotment base of 2,058,981 

pounds. The difference is the result of 

some producers failing to produce all of 

their 2011–2012 allotment. 

(C) Original 2012–2013 Scotch 

Allotment Percentage—38 percent. This 

was unanimously recommended by the 

Committee on October 12, 2011. 

(D) Original 2012–2013 Scotch 

Salable Quantity—782,413 pounds. This 

figure is 38 percent of the estimated 

2012–2013 allotment base of 2,058,981 

pounds. 

(E) Adjusted 2012–2013 Scotch 

Salable Quantity—778,440 pounds. This 

figure reflects the salable quantity 

actually available at the beginning of the 

2012–2013 marketing year. This 

quantity is derived by applying the 38 

percent allotment percentage to the 

revised allotment base of 2,048,527. 

(F) Current Revision to the 2012–2013 

Scotch Salable Quantity and Allotment 

Percentage: 

(1) Increase in Scotch Allotment 

Percentage—90 percent. The Committee 

recommended a 90 percent increase at 

its October 17, 2012, meeting. 

(2) 2012–2013 Scotch Allotment 

Percentage—128 percent. This figure is 

derived by adding the increase of 90 

percent to the original 2012–2013 

allotment percentage of 38 percent. 

(3) Calculated Revised 2012–2013 

Scotch Salable Quantity—2,622,115 

pounds. This figure is 128 percent of the 

revised 2012–2013 allotment base of 

2,048,527 pounds. 

(4) Computed Increase in the 2012– 

2013 Scotch Salable Quantity— 

1,843,674 pounds. This figure is 90 

percent of the revised 2012–2013 

allotment base of 2,048,527 pounds. 

(5) Expected Actual Increase in the 

2012–2013 Scotch Spearmint Oil 

Available to the Market—197,350 

pounds. This figure is based on the 

Committee’s calculation of oil actually 

held by producers that may enter the 

market as a result of this rule. 

Native Spearmint Oil Recommendation 

The 2012–2013 marketing year for 

Native spearmint oil began on June 1, 

2012, with an estimated carry-in of 

135,855 pounds of salable oil. When the 

estimated carry-in is added to the 

revised 2012–2013 salable quantity of 

1,162,302 pounds, the result is a total 

available supply of Native spearmint oil 

for the 2012–2013 marketing year of 

1,298,157 pounds. Of this amount, the 

Committee estimates that 1,185,965 

pounds of Native spearmint oil have 

already been sold or are committed to be 

sold as of the October 17, 2012, meeting 

date. This leaves just 112,192 pounds 

available for sale for the remainder of 

the 2012–2013 marketing year. The 

Committee believes that this is a 

relatively small amount of salable oil 

and maintaining available stocks at this 

level at this point in the marketing year 

would be detrimental to the industry. 

As a result, the Committee initiated this 

rulemaking action. 

In making this recommendation to 

increase the available supply of Native 

spearmint oil, the Committee 

considered all available information on 

price, supply, and demand. The 

Committee also considered reports and 

other information from handlers and 

producers in attendance at the meeting 

and reports presented by the Committee 

manager that were provided by handlers 

and producers who were not in 

attendance. 

Increasing the 2012–2013 Native 

spearmint oil allotment percentage by 8 

percent will increase the salable 

quantity by 185,968 pounds, to a total 

of 1,348,270 pounds. However, the net 

effect of the increase will be less than 

the calculated increase due to the 

amount of actual oil producers have 

available from the unused portion of 

their annual allotment or in reserve. The 

Committee estimates that this action 

will make an additional 120,254 pounds 

available to the market. This amount, 

combined with the 112,192 pounds of 

salable Native spearmint oil currently 

available, will make a total of 232,446 

pounds available to the market and 

bring the total available supply of 

Native spearmint oil for the marketing 

year to 1,418,411 pounds. 

When the original 2012–2013 

marketing policy statement was drafted, 

handlers estimated the demand for 

Native spearmint oil for the 2012–2013 

marketing year at 1,300,000 pounds. 

Thus, the Committee’s recommendation 

for the establishment of the Native 

spearmint oil salable quantity and 

allotment percentage for the 2012–2013 

marketing year was based on these 

estimates and did not anticipate the 

increase in demand for Native 

spearmint oil that the market is 

currently experiencing. The Committee 

believes that the supply of Native 

spearmint oil available to the market, 

without an increase in the salable 

quantity, will be insufficient to satisfy 

the current demand for oil at reasonable 

price levels. It is the opinion of the 

Committee and the spearmint oil 

industry that this action is essential to 

ensuring an adequate supply of Native 

spearmint oil to the market. 

As previously stated, this action will 

make an additional 120,254 pounds of 

Native spearmint oil available to the 

market. Similar to the situation with 

Scotch spearmint oil, the salable 

quantity and allotment percentage has 

to be set relatively high to create the net 

effect desired. According to the 

Committee’s calculations, the Native 

spearmint oil salable quantity and 

allotment percentage need to be 

increased 8 percent and 185,968 

pounds, respectively, to release all of 

the 120,254 pounds that the Committee 

believes is necessary to adequately 

supply the market. The discrepancy 

between the calculated 185,968 pound 

increase in the salable quantity and the 

expected actual 120,254 pound increase 

in the amount of Native spearmint oil 

made available to the market is 

attributed to salable quantity being 

allocated to producers that do not have 

Native spearmint oil available to market. 

Accordingly, the Committee expects 

that 65,714 pounds of the recommended 

increase in the Native spearmint oil 

salable quantity will go unfilled. 

The Committee’s stated intent in the 

use of marketing order volume control 

regulation for Native spearmint oil is to 

keep adequate supplies available to 

meet market needs and establish orderly 

marketing conditions. As such, the 

Committee developed its 

recommendation for increasing the 

Native spearmint oil salable quantity 

and allotment percentage for the 2012– 

2013 marketing year based on the 

information discussed above, as well as 

the summary data outlined below. 

(A) Estimated 2012–2013 Native 

Allotment Base—2,324,945 pounds. 

This is the estimate on which the 

original 2012–2013 Native spearmint oil 

salable quantity and allotment 

percentage was based. 

(B) Revised 2012–2013 Native 

Allotment Base—2,324,604 pounds. 


srobinson on DSK4SPTVN1PROD with 
Federal Register / Vol. 77, No. 249 / Friday, December 28, 2012 / Rules and Regulations 76345 

This is 341 pounds less than the 

estimated allotment base of 2,324,945 

pounds. The difference is the result of 

some producers failing to produce all of 

their 2011–2012 allotment. 

(C) Original 2012–2013 Native 

Allotment Percentage—50 percent. This 

percentage was recommended by the 

Committee at its October 12, 2011, 

meeting. 

(D) Original 2012–2013 Native Salable 

Quantity—1,162,473 pounds. This 

figure is 50 percent of the estimated 

2012–2013 allotment base of 2,324,945. 

(E) Adjusted 2012–2013 Native 

Salable Quantity—1,162,302 pounds. 

This figure reflects the salable quantity 

actually available at the beginning of the 

2012–2013 marketing year. This 

quantity is derived by applying the 50 

percent allotment percentage to the 

revised allotment base of 2,324,604. 

(F) Current Revision to the 2012–2013 

Native Salable Quantity and Allotment 

Percentage: 

(1) Increase in Native Allotment 

Percentage—8 percent. The Committee 

recommended an 8 percent increase at 

its October 17, 2012, meeting. 

(2) 2012–2013 Native Allotment 

Percentage—58 percent. This figure is 

derived by adding the increase of 8 

percent to the original 2012–2013 

allotment percentage of 50 percent. 

(3) Calculated Revised 2012–2013 

Native Salable Quantity—1,162,302 

pounds. This figure is 58 percent of the 

revised 2012–2013 allotment base of 

2,324,604 pounds. 

(4) Computed Increase in the 2012– 

2013 Native Salable Quantity—185,968 

pounds. This figure is 8 percent of the 

revised 2012–2013 allotment base of 

2,324,604 pounds. 

(5) Expected Actual Increase in the 

2012–2013 Native Spearmint Oil 

Available to the Market—120,254 

pounds. This figure is based on the 

Committee’s calculation of oil actually 

held by producers that may enter the 

market as a result of this rule. 

Based on its analysis of available 

information, USDA has determined that 

the salable quantity and allotment 

percentage for Scotch spearmint oil for 

the 2012–2013 marketing year should be 

increased to 2,622,115 pounds and 128 

percent, respectively. In addition, USDA 

has determined that the salable quantity 

and allotment percentage for Native 

spearmint oil for the 2012–2013 

marketing year should be increased to 

1,348,270 pounds and 58 percent, 

respectively. 

This rule relaxes the regulation of 

Scotch and Native spearmint oil and 

will allow producers to meet market 

demand while improving producer 

returns. In conjunction with the 

issuance of this rule, the Committee’s 

revised marketing policy statement for 

the 2012–2013 marketing year has been 

reviewed by USDA. The Committee’s 

marketing policy statement, a 

requirement whenever the Committee 

recommends implementing volume 

regulations or recommends revisions to 

existing volume regulations, meets the 

intent of § 985.50 of the order. During its 

discussion of revising the 2012–2013 

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) prospective 

production of each class of oil; (4) 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 USDA’s ‘‘Guidelines 

for Fruit, Vegetable, and Specialty Crop 

Marketing Orders’’ has also been 

reviewed and confirmed. 

The increases in the Scotch and 

Native spearmint oil salable quantity 

and allotment percentage allow for 

anticipated market needs for both 

classes of oil. In determining anticipated 

market needs, consideration by the 

Committee was given to historical sales 

and changes and trends in production 

and 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 8 spearmint oil handlers 

subject to regulation under the order, 

and approximately 32 producers of 

Scotch spearmint oil and approximately 

88 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 two of the eight 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 8 

of the 32 Scotch spearmint oil producers 

and 22 of the 88 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 use of volume control regulation 

allows the industry to fully supply 

spearmint oil markets while avoiding 

the negative consequences of oversupplying these markets. Without 

volume control, the spearmint oil 

market would likely fluctuate widely. 

Periods of oversupply could result in 

low producer prices and a large volume 

of oil stored and carried over to future 

crop years. Periods of undersupply 

could lead to excessive price spikes and 

could drive end users to source 

flavoring needs from other markets, 

potentially causing long-term economic 

damage to the domestic spearmint oil 

industry. The marketing order’s volume 

control provisions have been 

successfully implemented in the 

domestic spearmint oil industry since 

1980 and provide benefits for producers, 

handlers, manufacturers, and 

consumers. 

This rule increases the quantity of 

Scotch and Native spearmint oil that 

handlers may purchase from, or handle 

on behalf of, producers during the 

2012–2013 marketing year, which ends 

on May 31, 2013. The 2012–2013 Scotch 

and Native spearmint oil salable 

quantities were initially established at 

782,413 pounds and 1,162,473 pounds, 

respectively, through publication in the 

Federal Register on June 5, 2012 (77 FR 

33076). This rule increases the Scotch 

spearmint oil salable quantity to 

2,622,115 pounds and the allotment 

percentage from 38 percent to 128 

percent. Additionally, this rule 

increases the Native spearmint oil 

salable quantity to 1,348,270 pounds 

and the allotment percentage from 50 

percent to 58 percent. 

Based on the information and 

projections available at the October 17, 

2012, meeting, the Committee 

considered a number of alternatives to 


srobinson on DSK4SPTVN1PROD with 
76346 Federal Register / Vol. 77, No. 249 / Friday, December 28, 2012 / Rules and Regulations 

this increase. The Committee not only 

considered leaving the salable quantity 

and allotment percentage unchanged, 

but also considered other potential 

levels of increase. The Committee 

reached its recommendation to increase 

the salable quantity and allotment 

percentage for both Scotch and Native 

spearmint oil after careful consideration 

of all available information and input 

from all interested industry participants, 

and believes that the levels 

recommended will achieve the 

objectives sought. Without the increase, 

the Committee believes the industry 

would not be able to satisfactorily meet 

market demand. 

In accordance with the Paperwork 

Reduction Act of 1995, (44 U.S.C. 

Chapter 35), the order’s information 

collection requirements have been 

previously approved by the Office of 

Management and Budget (OMB) and 

assigned OMB No. 0581–0178, 

Vegetable and Specialty Crop Marketing 

Orders. No changes in those 

requirements as a result of this action 

are necessary. Should any changes 

become necessary, they would be 

submitted to OMB for approval. 

This rule will not impose any 

additional reporting or recordkeeping 

requirements on either small or large 

spearmint oil 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. 

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, USDA has not identified 

any relevant Federal rules that 

duplicate, overlap or conflict with this 

rule. 

Further, 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. Like all Committee 

meetings, the October 17, 2012, meeting 

was a public meeting and all entities, 

both large and small, were able to 

express their views on this issue. 

Finally, interested persons are invited to 

submit information on 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: www.ams.usda.gov/ 

MarketingOrdersSmallBusinessGuide. 

Any questions about the compliance 

guide should be sent to Laurel May at 

the previously mentioned address in the 

FOR FURTHER INFORMATION CONTACT

section. 

This rule invites comments on a 

change to the salable quantity and 

allotment percentage for both Scotch 

and Native spearmint oil for the 2012– 

2013 marketing year. Any comments 

received will be considered prior to 

finalization of this rule. 

After consideration of all relevant 

material presented, including the 

Committee’s recommendation, and 

other information, it is found that this 

interim rule, as hereinafter set forth, 

will tend to effectuate the declared 

policy of the Act. 

Pursuant to 5 U.S.C. 553, it is also 

found and determined upon good cause 

that it is impracticable, unnecessary, 

and contrary to the public interest to 

give preliminary notice prior to putting 

this rule into effect and that good cause 

exists for not postponing the effective 

date of this rule until 30 days after 

publication in the Federal Register 

because: (1) This rule increases the 

quantity of Scotch and Native spearmint 

oil that may be marketed during the 

marketing year, which ends on May 31, 

2013; (2) the current quantity of Scotch 

and Native spearmint oil may be 

inadequate to meet demand for the 

2012–2013 marketing year, thus making 

the additional oil available as soon as is 

practicable will be beneficial to both 

handlers and producers; (3) the 

Committee recommended these changes 

at a public meeting and interested 

parties had an opportunity to provide 

input; and (4) this rule provides a 60- 

day comment period and any comments 

received will be considered prior to 

finalization of this rule. 

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 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. In § 985.231, paragraphs (a) and (b) 

are revised to read as follows: 

Note: This section will not appear in the 

annual Code of Federal Regulations. 

§ 985.231 Salable quantities and allotment 

percentages—2012–2013 marketing year. 

* * * * * 

(a) Class 1 (Scotch) oil—a salable 

quantity of 2,622,115 pounds and an 

allotment percentage of 128 percent. 

(b) Class 3 (Native) oil—a salable 

quantity of 1,348,270 pounds and an 

allotment percentage of 58 percent. 

Dated: December 20, 2012. 

David R. Shipman, 

Administrator, Agricultural Marketing 

Service. 

[FR Doc. 2012–31102 Filed 12–27–12; 8:45 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF HOMELAND 

SECURITY 

8 CFR Part 100 

U.S. Customs and Border Protection 

19 CFR Part 101 

[Docket No. USCBP–2011–0032; CBP Dec. 

No. 12–23] 

RIN 1651–AA90 

Opening of Boquillas Border Crossing 

and Update to the Class B Port of 

Entry Description 

AGENCY: U.S. Customs and Border 

Protection, DHS. 

ACTION: Final rule. 

SUMMARY: This rule establishes a border 

crossing in Big Bend National Park 

called Boquillas and designates it as a 

Customs station for customs purposes 

and a Class B port of entry (POE) for 

immigration purposes. The Boquillas 

crossing will be situated between 

Presidio and Del Rio, Texas. U.S. 

Customs and Border Protection (CBP) 

and the National Park Service (NPS) are 

partnering on the construction of a joint 

use facility in Big Bend National Park 

where the border crossing will operate. 

This rule also updates the description 

of a Class B port of entry to reflect 

current border crossing documentation 

requirements. 

DATES: Effective Date: January 28, 2013. 

FOR FURTHER INFORMATION CONTACT: 

Colleen Manaher, Director, Land Border 

Integration, CBP Office of Field 

Operations, telephone 202–344–3003. 

SUPPLEMENTARY INFORMATION: This rule 

establishes a border crossing in Big 

Bend National Park called Boquillas and 

designates it as a Customs station for 

customs purposes and a Class B port of 

entry for immigration purposes. 


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