Federal Register / Vol. 72, No. 70 / Thursday, April 12, 2007 / Rules and Regulations 18345 

access to Government information and 

services, and for other purposes. 

USDA has not identified any relevant 

Federal rules that duplicate, overlap, or 

conflict with this rule. 

A proposed rule concerning this 

action was published in the Federal 

Register on March 7, 2007 (72 FR 

10091). Copies of the proposed rule 

were also mailed or sent via facsimile to 

all olive handlers. Finally, the proposal 

was made available through the Internet 

by USDA and the Office of the Federal 

Register. A 15-day comment period 

ending March 22, 2007, was provided 

for interested persons to respond to the 

proposal. No comments were received. 

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/ 

fv/moab/html. Any questions about the 

compliance guide should be sent to Jay 

Guerber at the previously mentioned 

address in the FOR FURTHER INFORMATION

CONTACT section. 

After consideration of all relevant 

material presented, including the 

information and recommendation 

submitted by the committee and other 

available information, it is hereby found 

that this 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 that good cause 

exists for not postponing the effective 

date of this rule until 30 days after 

publication in the Federal Register 

because: (1) The 2007 fiscal year began 

on January 1, 2007, and the marketing 

order requires that the rate of 

assessment for each fiscal year apply to 

all assessable olives handled during 

such fiscal year; (2) the committee needs 

sufficient funds to pay its expenses, 

which are incurred on a continuous 

basis; and (3) handlers are aware of this 

action, which was discussed by the 

committee and unanimously 

recommended at a public meeting, and 

is similar to other assessment rate 

actions issued in past years. Also, a 15- 

day comment period was provided for 

in the proposed rule. 

List of Subjects in 7 CFR Part 932 

Marketing agreements, Olives, 

Reporting and recordkeeping 

requirements. 

■ For the reasons set forth in the 

preamble, 7 CFR part 932 is proposed to 

be amended as follows: 

PART 932—OLIVES GROWN IN 

CALIFORNIA 

■ 1. The authority citation for 7 CFR 

part 932 continues to read as follows: 

Authority: 7 U.S.C. 601–674. 

■ 2. Section 932.230 is revised to read 

as follows: 

§ 932.230 Assessment rate. 

On and after January 1, 2007, an 

assessment rate of $47.84 per ton is 

established for California olives. 

Dated: April 9, 2007. 

Lloyd C. Day, 

Administrator, Agricultural Marketing 

Service. 

[FR Doc. 07–1832 Filed 4–10–07; 1:10 pm] 

BILLING CODE 3410–02–P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 985 

[Docket Nos. AMS–FV–07–0039; FV07–985–

2 IFR] 

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 2006–2007 

Marketing Year 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Interim final 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 for, producers 

during the 2006–2007 marketing year. 

This rule increases the Scotch spearmint 

oil salable quantity from 878,205 

pounds to 2,984,817 pounds, and the 

allotment percentage from 45 percent to 

153 percent. In addition, this rule 

increases the Native spearmint oil 

salable quantity from 1,161,260 pounds 

to 1,205,208 pounds, and the allotment 

percentage from 53 percent to 55 

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 avoiding extreme 

fluctuations in supplies and prices and 

to help maintain stability in the Far 

West spearmint oil market. 

DATES: Effective June 1, 2006, through 

May 31, 2007; comments received by 

June 11, 2007 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 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 docket 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. 

FURTHER INFORMATION CONTACT: Susan 

M. Hiller, Marketing Specialist, or Gary 

D. 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: 

Susan.Hiller@usda.gov or 

GaryD.Olson@usda.gov. 

Small businesses may request 

information on complying with this 

regulation by contacting Jay Guerber, 

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: 

Jay.Guerber@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 may be 

purchased from or handled for 

producers by handlers during the 2006–

2007 marketing year, which ends on 

May 31, 2007. This rule will not 

preempt any State or local laws, 

regulations, or policies, unless they 

present an irreconcilable conflict with 

this rule. 


rmajette on PROD1PC67 with RULES
18346 Federal Register / Vol. 72, No. 70 / Thursday, April 12, 2007 / Rules and Regulations 

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 original salable quantity and 

allotment percentages for Scotch and 

Native spearmint oil for the 2006–2007 

marketing year were recommended by 

the Committee at its October 5, 2005, 

meeting. The Committee recommended 

salable quantities of 878,205 pounds 

and 1,007,886 pounds, and allotment 

percentages of 45 percent and 46 

percent, respectively, for Scotch and 

Native spearmint oil. A proposed rule 

was published in the Federal Register 

on February 1, 2006 (71 FR 5183). 

Comments on the proposed rule were 

solicited from interested persons until 

March 3, 2006. No comments were 

received. Subsequently, a final rule 

establishing the salable quantities and 

allotment percentages for Scotch and 

Native spearmint oil for the 2006–2007 

marketing year was published in the 

Federal Register on April 5, 2006 (71 FR 

16986). 

Pursuant to authority contained in 

§§ 985.50, 985.51, and 985.52 of the 

order, the Committee has made 

recommendations to increase the 

quantity of Scotch and Native spearmint 

oil that handlers may purchase from, or 

handle for, producers during the 2006–

2007 marketing year, which ends on 

May 31, 2007. An interim final rule was 

published in the Federal Register on 

May 26, 2006 (71 FR 30266), which 

increased the 2006–2007 salable 

quantity and allotment percentage for 

Native spearmint oil to 1,161,260 

pounds and 53 percent, respectively. 

Comments on the interim final rule 

were solicited from interested persons 

until July 25, 2006. No comments were 

received. Subsequently, a final rule 

establishing the salable quantity and 

allotment percentage for Native 

spearmint oil was published in the 

Federal Register on September 7, 2006 

(71 FR 52735). 

This rule would further revise the 

quantity of Scotch and Native spearmint 

oil that handlers may purchase from, or 

handle for, producers during the 2006–

2007 marketing year, which ends on 

May 31, 2007. The Committee, with all 

eight members present, met on February 

21, 2007, and in two separate motions, 

recommended that the 2006–2007 

Scotch and Native spearmint oil 

allotment percentages be increased by 

108 percent and 2 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 seven 

members in favor and one member 

opposed. The member opposing was 

concerned that there was not enough 

demand. 

Thus, taking into consideration the 

following discussion on adjustments to 

the Scotch and Native spearmint oil 

salable quantities, this rule increases the 

2006–2007 marketing year salable 

quantities and allotment percentages for 

Scotch and Native spearmint oil to 

2,984,817 pounds and 153 percent, and 

1,205,208 pounds and 55 percent, 

respectively. 

The salable quantity is the total 

quantity of each class of oil that 

handlers may purchase from, or handle 

for, producers during the marketing 

year. The total salable quantity is 

divided by the total industry allotment 

base to determine an allotment 

percentage. Each producer is allotted a 

share of the salable quantity by applying 

the allotment percentage to the 

producer’s individual allotment base for 

the applicable class of spearmint oil. 

The total industry allotment base for 

Scotch spearmint oil for the 2006–2007 

marketing year was estimated by the 

Committee at the October 5, 2005, 

meeting at 1,951,567 pounds. This was 

later revised at the beginning of the 

2006–2007 marketing year to 1,950,861 

pounds to reflect a 2005–2006 

marketing year loss of 706 pounds of 

base due to non-production of some 

producers’ total annual allotments. 

When the revised total allotment base of 

1,950,861 pounds is applied to the 

originally established allotment 

percentage of 45 percent, the initially 

established 2006–2007 marketing year 

salable quantity of 878,205 pounds is 

effectively modified to 877,887 pounds. 

The same situation applies to Native 

spearmint oil where the Committee 

estimated that the total industry 

allotment base for the 2006–2007 

marketing year was established at 

2,191,056 pounds and was revised at the 

beginning of the 2006–2007 marketing 

year to 2,191,287 pounds to reflect a 

2005–2006 marketing year gain of 231 

pounds of base for new and existing 

producers. When the revised total 

allotment base of 2,191,287 pounds is 

applied to the originally established 

allotment percentage of 46 percent, the 

initially established 2006–2007 

marketing year salable quantity of 

1,007,886 pounds is effectively 

modified to 1,007,992 pounds. 

By increasing the salable quantities 

and allotment percentages, this rule 

makes an additional amount of Scotch 

and Native spearmint oil available by 

releasing oil from the reserve pool. 

When applied to each individual 

producer, the allotment percentage 

increase allows each producer to take 

up to an amount equal to their allotment 

base from their reserve for this 

respective class of oil. In addition, 

pursuant to §§ 985.56 and 985.156, 

producers with excess oil are not able to 

transfer such excess oil to other 

producers to fill deficiencies in annual 

allotments after October 31 of each 

marketing year. 

The following table summarizes the 

Committee recommendations: 

Scotch Spearmint Oil Recommendation 

(A) Estimated 2006–2007 Allotment 

Base—1,951,567 pounds. This is the 

estimate on which the original 2006–

2007 Scotch spearmint oil salable 

quantity and allotment percentage was 

based. 

(B) Revised 2006–2007 Allotment 

Base—1,950,861 pounds. This is 706 

pounds less than the estimated 

allotment base of 1,951,567 pounds. 

This is less because some producers 

failed to produce all of their 2005–2006 

allotment. 

(C) Original 2006–2007 Allotment 

Percentage—45 percent. This was 

unanimously recommended by the 

Committee on October 5, 2005. 

(D) Original 2006–2007 Salable 

Quantity—878,205 pounds. This figure 

is 45 percent of the estimated 2006–

2007 allotment base of 1,951,567 

pounds. 

(E) Adjustment to the Original 2006–

2007 Salable Quantity—877,887 

pounds. This figure reflects the salable 

quantity initially available after the 

beginning of the 2005–2006 marketing 

year due to the 706 pound reduction in 

the industry allotment base to 1,950,861 

pounds. 

(F) First Revision to the 2006–2007 

Salable Quantity and Allotment 

Percentage: 

(1) Increase in Allotment Percentage—

108 percent. The Committee 

recommended a 108 percent increase at 

its February 21, 2007, meeting. 

(2) 2006–2007 Allotment Percentage—

153 percent. This figure is derived by 


rmajette on PROD1PC67 with RULES
Federal Register / Vol. 72, No. 70 / Thursday, April 12, 2007 / Rules and Regulations 18347 

adding the increase of 108 percent to the 

original 2006–2007 allotment 

percentage of 45 percent. 

(3) Calculated Revised 2006–2007 

Salable Quantity—2,984,817 pounds. 

This figure is 153 percent of the 

adjusted 2006–2007 allotment base of 

1,950,861 pounds. 

(4) Computed Increase in the 2006–

2007 Salable Quantity—2,106,930 

pounds. This figure is 108 percent of the 

adjusted 2006–2007 allotment base of 

1,950,861 pounds. 

(G) No Second Revision to the 2006–

2007 Salable Quantity and Allotment 

Percentage. 

The 2006–2007 marketing year began 

on June 1, 2006, with an estimated 

carry-in of 43,057 pounds of salable oil. 

Of the original 2006–2007 salable 

quantity of 877,887 pounds, only 

708,768 pounds was actually produced. 

This results in an available supply of 

751,825 pounds for the 2006–2007 

marketing year. Of this amount, 736,904 

pounds of Scotch spearmint oil has 

already been sold or committed for the 

2006–2007 marketing year, which leaves 

14,921 pounds available for sale. As of 

February 15, 2007, the reserve pool is 

estimated at 13,529 pounds. 

In making this recommendation, 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 given by the Committee 

Manager from handlers who were not in 

attendance. Handlers expressed concern 

about the limited supply of Scotch 

spearmint oil remaining and that 

significant quantities of this oil is of less 

than desirable quality. An additional 

concern is that the remaining spearmint 

oil is in the possession of only a few 

producers with minimal allotment base. 

An example of this would be a producer 

who has 4,000 pounds of reserve pool 

oil and only 3,700 pounds of allotment 

base. The only way a handler could 

purchase this producer’s oil is if the 

allotment percentage is increased to at 

least 108 percent. Without this increase, 

the industry may not be able to meet 

market demand based on past history 

and current conditions. Additionally, 

when the Committee made its original 

recommendation for the establishment 

of the Scotch spearmint oil salable 

quantity and allotment percentage for 

the 2006–2007 marketing year, it had 

anticipated that the year would end 

with an ample available supply. 

Native Spearmint Oil Recommendation 

(A) Estimated 2006–2007 Allotment 

Base—2,191,056 pounds. This is the 

estimate on which the original 2006–

2007 Native spearmint oil salable 

quantity and allotment percentage was 

based. 

(B) Revised 2006–2007 Allotment 

Base—2,191,287 pounds. This is 231 

pounds more than the estimated 

allotment base of 2,191,056 pounds. 

This is more because some producers 

over-produced their 2005–2006 

allotment. 

(C) Original 2006–2007 Allotment 

Percentage—46 percent. This was 

unanimously recommended by the 

Committee on October 5, 2005. 

(D) Original 2006–2007 Salable 

Quantity—1,007,886 pounds. This 

figure is 46 percent of the estimated 

2006–2007 allotment base of 2,191,056 

pounds. 

(E) Adjustment to the Original 2006–

2007 Salable Quantity—1,007,992 

pounds. This figure reflects the salable 

quantity initially available after the 

beginning of the 2006–2007 marketing 

year due to the 231 pound gain in the 

industry allotment base to 2,191,287 

pounds. 

(F) First Revision to the 2006–2007 

Salable Quantity and Allotment 

Percentage: 

(1) Increase in Allotment Percentage—

7 percent. The Committee 

recommended a 7 percent increase at its 

April 18, 2006, meeting. 

(2) 2006–2007 Allotment Percentage—

53 percent. This figure is derived by 

adding the increase of 7 percent to the 

original 2006–2007 allotment 

percentage of 46 percent. 

(3) Calculated Revised 2006–2007 

Salable Quantity—1,161,382 pounds. 

This figure is 53 percent of the adjusted 

2006–2007 allotment base of 2,191,287 

pounds. 

(4) Computed Increase in the 2006–

2007 Salable Quantity—153,390 

pounds. This figure is 7 percent of the 

adjusted 2006–2007 allotment base of 

2,191,287 pounds. 

(G) Second Revision to the 2006–2007 

Salable Quantity and Allotment 

Percentage: 

(1) Increase in Allotment Percentage—

2 percent. The Committee 

recommended a 2 percent increase at its 

February 21, 2007, meeting. 

(2) 2006–2007 Allotment Percentage—

55 percent. This figure is derived by 

adding the increase of 2 percent to the 

first revised 2006–2007 allotment 

percentage of 53 percent. 

(3) Calculated Revised 2006–2007 

Salable Quantity—1,205,208 pounds. 

This figure is 55 percent of the adjusted 

2006–2007 allotment base of 2,191,287 

pounds. 

(4) Computed Increase in the 2006–

2007 Salable Quantity—43,826 pounds. 

This figure is 2 percent of the adjusted 

2006–2007 allotment base of 2,191,287 

pounds. 

The 2006–2007 marketing year began 

on June 1, 2006, with an estimated 

carry-in of 82,675 pounds of salable oil. 

When the estimated carry-in is added to 

the revised 2006–2007 salable quantity 

of 1,161,382 pounds, a total estimated 

available supply for the 2006–2007 

marketing year of 1,244,057 pounds 

results. Of this amount, 1,130,872 

pounds of oil has already been sold or 

committed for the 2006–2007 marketing 

year, which leaves 113,185 pounds 

available for sale. As of February 15, 

2007, the reserve pool is estimated at 

223,880 pounds. 

In making this recommendation, 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 given by the Committee 

Manager from handlers and producers 

who were not in attendance. On 

average, handlers estimate that there is 

demand for an additional 30,000 

pounds to 50,000 pounds of Native 

spearmint oil for the 2006–2007 

marketing year. The Committee was 

reluctant to increase the salable quantity 

any more due to the relatively low 

demand; however the Committee 

believed that an increase was necessary 

since handlers expressed their difficulty 

in finding spearmint oil available for 

sale. It was also reported that 

approximately 30,000 pounds to 80,000 

pounds of Native spearmint oil was 

poor quality or re-distilled to improve 

its chemical composition. Therefore, the 

industry may not be able to meet market 

demand without this increase. In 

addition, when the Committee made its 

original recommendation for the 

establishment of the Native spearmint 

oil salable quantity and allotment 

percentage for the 2006–2007 marketing 

year, it had anticipated that the year 

would end with an ample available 

supply. 

Based on its analysis of available 

information, USDA has determined that 

the salable quantity and allotment 

percentage for Scotch spearmint oil for 

the 2006–2007 marketing year should be 

increased to 2,984,817 pounds and 153 

percent, respectively. In addition, USDA 

has determined that the salable quantity 

and allotment percentage for Native 

spearmint oil for the 2006–2007 

marketing year should be increased to 

1,205,208 pounds and 55 percent, 

respectively. 

This rule relaxes the regulation of 

Scotch and Native spearmint oil and 


rmajette on PROD1PC67 with RULES
18348 Federal Register / Vol. 72, No. 70 / Thursday, April 12, 2007 / Rules and Regulations 

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 2006–2007 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 2006–2007 

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 allows 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. Thus, both statutes have small 

entity orientation and compatibility. 

There are eight spearmint oil handlers 

subject to regulation under the order, 

and approximately 58 producers of 

Scotch spearmint oil and approximately 

90 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 $6,500,000, 

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 

19 of the 58 Scotch spearmint oil 

producers and 21 of the 90 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, most 

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 to market fluctuations. 

Such small producers generally need to 

market their entire annual crop 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. 

This rule further increases the 

quantity of Scotch and Native spearmint 

oil that handlers may purchase from, or 

handle for, producers during the 2006–

2007 marketing year, which ends on 

May 31, 2007. This rule increases the 

2006–2007 marketing year salable 

quantities and allotment percentages for 

Scotch and Native spearmint oil to 

2,984,817 and 153 percent, and 

1,205,208 pounds and 55 percent, 

respectively. 

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 recommended allotment 

percentages, upon which 2006–2007 

producer allotments are based, are 153 

percent for Scotch (a 108 percentage 

point increase from the original 

allotment percentage of 45 percent) and 

55 percent for Native (a 9 percentage 

point increase from the original 

allotment percentage of 46 percent). 

Without volume controls, producers 

would not be limited to these allotment 

levels, and could produce and sell 

additional spearmint oil. The 

econometric model estimated a $1.37 

decline in the season average producer 

price per pound of Far West spearmint 

oil (combining the two classes of 

spearmint oil) resulting from the higher 

quantities that would be produced and 

marketed if volume controls were not 

used. 

A previous price decline estimate of 

$1.49 per pound was based on the 

original 2006–2007 allotment 

percentages (45 percent for Scotch and 

46 percent for Native) published in the 

Federal Register on April 5, 2006 (71 FR 

16986). The revised estimate reflects the 

impact of the additional quantities that 

will be made available by this rule 

compared to the original allotment 

percentages. In actuality, this rule will 

make available 13,026 additional 

pounds of Scotch and 21,624 additional 

pounds of Native spearmint oil, since 

not all producers have reserve pool oil. 

Loosening the volume control 


rmajette on PROD1PC67 with RULES
Federal Register / Vol. 72, No. 70 / Thursday, April 12, 2007 / Rules and Regulations 18349 

restriction resulted in the smaller price 

decline estimate of $1.37 per pound. 

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. 

Based on projections available at the 

meeting, the Committee considered 

alternatives to each of the increases. The 

Committee not only considered leaving 

the salable quantity and allotment 

percentage unchanged, but also looked 

at various increases. The Committee 

reached each of its recommendations to 

increase the salable quantity and 

allotment percentage for Scotch and 

Native spearmint oil after careful 

consideration of all available 

information, and believes that the levels 

recommended will achieve the 

objectives sought. Without the 

increases, the Committee believes the 

industry would not be able to meet 

market needs. 

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. In 

addition, USDA has not identified any 

relevant Federal rules that duplicate, 

overlap or conflict with this rule. 

The 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. 

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 

February 21, 2007, 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: http://www.ams.usda.gov/ 

fv/moab.html. Any questions about the 

compliance guide should be sent to Jay 

Guerber at the previously mentioned 

address in the FOR FURTHER INFORMATION

CONTACT section. 

This rule invites comments on 

changes to the salable quantities and 

allotment percentages for Scotch and 

Native spearmint oil for the 2006–2007 

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 final 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, 

2007; (2) the current quantity of Scotch 

and Native spearmint oil may be 

inadequate to meet demand for the 

2006–2007 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 § 985.225, paragraph (a) and (b) 

are revised to read as follows: 

[Note: This section will not appear in the 

annual Code of Federal Regulations.] 

§ 985.225 Salable quantities and allotment 

percentages—2006–2007 marketing year. 

* * * * * 

(a) Class 1 (Scotch) oil—a salable 

quantity of 2,984,817 pounds and an 

allotment percentage of 153 percent. 

(b) Class 3 (Native) oil—a salable 

quantity of 1,205,208 pounds and an 

allotment percentage of 55 percent. 

Dated: April 9, 2007. 

Lloyd C. Day, 

Administrator, Agricultural Marketing 

Service. 

[FR Doc. 07–1831 Filed 4–10–07; 1:10 pm] 

BILLING CODE 3410–02–P 

SMALL BUSINESS ADMINISTRATION 

13 CFR Part 120 

RIN 3245–AE83 

Liquidation and Debt Collection 

Activities 

AGENCY: U.S. Small Business 

Administration (SBA or Agency). 

ACTION: Final rule. 

SUMMARY: This final rule amends the 

regulations pertaining to guaranteed 

loan and debenture liquidation and 

litigation found in rules governing the 

7(a) Guaranteed Loan program and the 

Certified Development Company 

program. It codifies statutory language 

contained in the Small Business 

Investment Act, and revises the 

Agency’s guidance on the proper 

liquidation and litigation of defaulted 

SBA guaranteed loans and debentures. 

These rules will give program 

participants authority to liquidate small 

business loans in a more timely fashion, 

and creates a process for identifying 

loans and debentures that could be 

disposed of in an asset sale conducted 

or overseen by SBA. 

DATES: This rule is effective May 14, 

2007. 

FOR FURTHER INFORMATION CONTACT: 

James W. Hammersley, Director, Loan 

Programs Division, Office of Financial 

Assistance, (202) 205–7505, or by e-mail 

at james.hammersley@sba.gov. 

SUPPLEMENTARY INFORMATION: On 

November 3, 2005, SBA published 

proposed rules to revise and update 

regulations on liquidating and litigating 

SBA 7(a) and 504 loans (70 FR 66800, 

November 3, 2005). The initial period 

for public comment ended on January 6, 

2006, but was reopened for additional 

comments on January 25, 2006. The 

extended comment period ended on 

February 24, 2006. 

Comment Summary 

In total, SBA received 138 responses 

to the proposed regulations. Of these, 


rmajette on PROD1PC67 with RULES