This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

942

Vol. 62, No. 4

Tuesday, January 7, 1997

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 985

[Docket No. FV–96–985–4 PR]

Spearmint Oil Produced in the Far

West; Salable Quantities and Allotment

Percentages for the 1997–98 Marketing

Year

AGENCY: Agricultural Marketing Service,

USDA.

ACTION: Proposed rule.

SUMMARY: This proposed rule would

establish the quantity of spearmint oil

produced in the Far West, by class, that

handlers may purchase from, or handle

for, producers during the 1997–98

marketing year. The Spearmint Oil

Administrative Committee (Committee),

the agency responsible for local

administration of the marketing order

for spearmint oil produced in the Far

West, recommended this rule for the

purpose of avoiding extreme

fluctuations in supplies and prices, and

thus help to maintain stability in the

spearmint oil market.

DATES: Comments must be received by

February 6, 1997.

ADDRESSES: Interested persons are

invited to submit written comments

concerning this proposed rule.

Comments must be sent in triplicate to

the Docket Clerk, Fruit and Vegetable

Division, AMS, USDA, room 2525,

South Building, P.O. Box 96456,

Washington, D.C. 20090–6456.

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.

FOR FURTHER INFORMATION CONTACT:

Robert J. Curry, Northwest Marketing

Field Office, Marketing Order

Administration Branch, Fruit and

Vegetable Division, AMS, USDA, 1220

SW Third Avenue, room 369, Portland,

Oregon 97204; telephone: (503) 326–

2043; Fax: (503) 326–7440; or Caroline

C. Thorpe, Marketing Order

Administration Branch, Fruit and

Vegetable Division, AMS, USDA, room

2525, South Building, P.O. Box 96456,

Washington, D.C. 20090–6456;

telephone: (202) 720–5127; Fax: (202)

720–5698. Small businesses may request

information on compliance with this

regulation by contacting: Jay Guerber,

Marketing Order Administration

Branch, Fruit and Vegetable Division,

AMS, USDA, P.O. Box 96456, room

2523–S, Washington, DC 20090–6456;

telephone (202) 720–2491; Fax (202)

720–5698.

SUPPLEMENTARY INFORMATION: This

proposed rule is issued under Marketing

Order No. 985 (7 CFR Part 985),

regulating the handling of spearmint oil

produced in the Far West (Washington,

Idaho, Oregon, and designated parts of

Nevada and Utah). This marketing 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

(Department) is issuing this rule in

conformance with Executive Order

12866.

This proposed 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 proposed rule would

establish the quantity of spearmint oil

produced in the Far West, by class, that

may be purchased from or handled for

producers by handlers during the 1997–

98 marketing year, which begins on June

1, 1997. This proposed rule will not

preempt any State or local laws,

regulations, or policies, unless they

present an irreconcilable conflict with

this rule.

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 the Secretary 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 the Secretary 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 the Secretary’s ruling on the

petition, provided an action is filed not

later than 20 days after date of the entry

of the ruling.

Pursuant to authority contained in

sections 985.50, 985.51, and 985.52 of

the order, the Committee recommended

the salable quantities and allotment

percentages for the 1997–98 marketing

year at its October 2, 1996, meeting, and

reconfirmed its recommendation

following review of additional

information at its meeting held on

November 14, 1996. The Committee

recommended the establishment of a

salable quantity and allotment

percentage for Scotch spearmint oil with

one member opposing the motion

because he favored the establishment of

a higher salable quantity and allotment

percentage. In a unanimous vote, the

Committee recommended the

establishment of a salable quantity and

allotment percentage for Native

spearmint oil.

This proposed rule would establish a

salable quantity of 996,522 pounds and

an allotment percentage of 55 percent

for Scotch spearmint oil, and a salable

quantity of 1,125,351 pounds and an

allotment percentage of 56 percent for

Native spearmint oil. This proposed rule

would limit the amount of spearmint oil

that handlers may purchase from, or

handle for, producers during the 1997–

98 marketing year, which begins on June

1, 1997. Salable quantities and

allotment percentages have been placed

into effect each season since the

marketing order’s inception in 1980.

The U.S. production of spearmint oil

is concentrated in the Far West,

primarily Washington, Idaho, and

Oregon (part of the area covered by the

marketing order). Spearmint oil is also

produced in the Midwest. The

production area covered by the

marketing order accounts for

approximately 75 percent of the annual

U.S. production of both classes of

spearmint oil.

When the order became effective in

1980, the United States produced nearly

100 percent of the world’s supply of

Scotch spearmint oil, of which

approximately 80 percent was produced
Federal Register / Vol. 62, No. 4 / Tuesday, January 7, 1997 / Proposed Rules 943

in the regulated production area in the

Far West. International production

characteristics have changed in recent

years, however, with foreign Scotch

spearmint oil production contributing

significantly to world production.

Although still a leader in production,

the Far West’s market share has

decreased to approximately 65 percent

of the world total. Thus, in recent

marketing years, the Committee has

taken a different approach in its method

of addressing the historical fluctuations

in supply and price. In conjunction with

the goal of maintaining price and market

stability, the Committee seeks a

moderate growth rate in terms of total

North American market share. The

Committee’s recommendation is

intended to find a stable price level

while keeping Far West Scotch

spearmint oil in a competitive and

viable position in the international

market. To that end, the Committee is

targeting a specific percentage of the

North American market share for use in

its salable quantity and allotment

percentage calculations. For 1997–98,

the Committee is targeting 73 percent of

the North American market, compared

to the nearly 65 percent targeted for the

1996–97 season. Preliminary figures

indicate that the Far West Scotch

spearmint oil market share in North

America will reach approximately 60

percent in 1996–97, up from 55 percent

in 1995–96.

Records show that the marketing

order has contributed extensively to the

stabilization of grower prices, which

prior to 1980 experienced wide

fluctuations from year to year. Prior to

1980, grower prices for Native

spearmint oil were historically cyclical.

For example, between 1971 and 1975

the price of Native spearmint oil

increased from $3.00 per pound to

$11.00 per pound. In contrast, under the

marketing order, prices have stabilized

between $10.50 and $11.50 per pound

for the past ten years. With

approximately 90 percent of U.S.

production of Native spearmint oil

located in the Far West, the method of

calculating the Native spearmint oil

salable quantity and allotment

percentage primarily utilizes

information on price and available

supply as they are affected by the

estimated trade demand for Far West

Native spearmint oil.

The proposed salable quantity and

allotment percentage for each class of

spearmint oil for the 1997–98 marketing

year is based upon the Committee’s

recommendation and the data presented

below.

(1) Class 1 (Scotch) Spearmint Oil

(A) Estimated carry-in on June 1,

1997—309,927 pounds. This figure is

derived by subtracting the estimated

1996–97 marketing year trade demand

of 900,000 pounds from the revised

1996–97 marketing year total available

supply of 1,209,927 pounds.

(B) Estimated North American

production (U.S. and Canada) for the

1997–98 marketing year—1,511,461

pounds. This figure is an estimate based

on information provided to the

Committee by producers and buyers.

(C) Percentage of North American

market targeted—73 percent. This figure

is an approximate average of the

recommended target percentages made

at each of the five regional producer

meetings held throughout the Far West

production area during the month of

September, 1996.

(D) Total quantity of Scotch spearmint

oil needed to reach targeted

percentage—1,103,367 pounds. This

figure is the product of the estimated

1997–98 North American production

and the targeted percentage.

(E) Minimum amount desired to have

on hand throughout the season—

200,000 pounds. Producers at all of the

five regional meetings had

recommended this amount, which

continues to reflect the Committee’s

commitment to regain market share by

maintaining a minimum quantity on

hand.

(F) Total supply required—1,303,367

pounds. This figure is derived by adding

the minimum desired on hand amount

to the total quantity required to meet the

targeted percentage.

(G) Additional quantity required—

993,440 pounds. This figure represents

the actual amount of additional or new

oil needed to meet the Committee’s

projections, and is computed by

subtracting the estimated carry-in of

309,440 pounds from the total supply

required of 1,303,367 pounds.

(H) Total allotment base for the 1997–

98 marketing year—1,811,859 pounds.

(I) Computed allotment percentage—

54.8 percent. This percentage is

computed by dividing the required

salable quantity by the total allotment

base.

(J) Recommended allotment

percentage—55 percent. This is the

Committee’s recommendation based on

the computed allotment percentage.

(K) The Committee’s recommended

salable quantity—996,522 pounds. This

figure is the product of the

recommended allotment percentage and

the total 1997–98 allotment base.

(2) Class 3 (Native) Spearmint Oil

(A) Estimated carry-in on June 1,

1997—71,764 pounds. This figure is

derived by subtracting the estimated

1996–97 marketing year trade demand

of 1,162,500 pounds from the revised

1996–97 marketing year total available

supply of 1,234,264 pounds.

(B) Estimated trade demand (domestic

and export) for the 1997–98 marketing

year—1,212,500 pounds. This figure

represents an average of buyer estimates

and the amounts recommended at the

regional producer meetings.

(C) Salable quantity required from

1997 production—1,140,736 pounds.

This figure is the difference between the

estimated 1997–98 marketing year trade

demand and the estimated carry-in on

June 1, 1997.

(D) Total allotment base for the 1997–

98 marketing year—2,009,556 pounds.

(E) Computed allotment percentage—

56.8 percent. This percentage is

computed by dividing the required

salable quantity by the total allotment

base.

(F) Recommended allotment

percentage—56 percent. This is the

Committee’s recommendation based on

the computed allotment percentage.

(G) The Committee’s recommended

salable quantity—1,125,351 pounds.

This figure is the product of the

recommended allotment percentage and

the total 1997–98 marketing year

allotment base.

The salable quantity is the total

quantity of each class of oil which

handlers may purchase from or handle

on behalf of producers during a

marketing year. Each producer is

allotted a share of the salable quantity

by applying the allotment percentage to

the producer’s allotment base for the

applicable class of spearmint oil.

The Committee’s recommended

Scotch spearmint oil salable quantity of

996,522 pounds and allotment

percentage of 55 percent are based on

anticipated supply, demand, and a

targeted percentage of the North

American market during the 1997–98

marketing year. The Committee’s

recommended Native spearmint oil

salable quantity of 1,125,351 pounds

and allotment percentages of 56 percent

are based on anticipated supply and

trade demand during the 1997–98

marketing year. The proposed salable

quantities are not expected to cause a

shortage of spearmint oil supplies. Any

unanticipated or additional market

demand for spearmint oil which may

develop during the marketing year can

be satisfied by an increase in the salable

quantities. Both Scotch and Native

spearmint oil producers who produce
944 Federal Register / Vol. 62, No. 4 / Tuesday, January 7, 1997 / Proposed Rules

more than their annual allotments

during the 1997–98 season may transfer

such excess spearmint oil to a producer

with spearmint oil production less than

his or her annual allotment or put it into

the reserve pool.

This proposed regulation, if adopted,

would be similar to those which have

been issued in prior seasons. Costs to

producers and handlers resulting from

this proposed action are expected to be

offset by the benefits derived from a

stable market, a greater market share,

and possible improved returns. In

conjunction with the issuance of this

proposed rule, the Committee’s

marketing policy statement for the

1997–98 marketing year has been

reviewed by the Department. The

Committee’s marketing policy

statement, a requirement whenever the

Committee recommends volume

regulations, fully meets the intent of the

provisions as set forth in 7 CFR Part

985.50. Conformity with other USDA

guidelines has also been reviewed and

confirmed.

The establishment of these salable

quantities and allotment percentages

would allow for anticipated market

needs based on historical sales, changes

and trends in production and demand,

and information available to the

Committee. Adoption of this proposed

rule would also provide spearmint oil

producers with information on the

amount of oil which should be

produced for next season.

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 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 8 spearmint oil handlers

subject to regulation under the

marketing order and approximately 250

producers of spearmint oil in the

regulated production area. Of the 250

producers, approximately 135 producers

hold Class 1 (Scotch) oil allotment base,

and approximately 115 producers hold

Class 3 (Native) oil allotment base.

Small agricultural service firms are

defined by the Small Business

Administration (13 CFR 121.601) as

those having annual receipts of less than

$5,000,000, and small agricultural

producers have been defined as those

whose annual receipts are less than

$500,000.

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. Crop

rotation is an essential cultural practice

in the production of spearmint for weed,

insect, and disease control. A normal

spearmint producing operation would

have enough acreage for rotation such

that the total acreage required to

produce the crop would be about onethird spearmint and two-thirds

rotational crops. An average spearmint

producing farm would thus have to have

considerable more acreage than would

be planted to spearmint during any

given season. To remain economically

viable with the added costs associated

with spearmint production, most

spearmint producing farms would fall

into the category of large businesses.

Based on the Small Business

Administration’s definition of small

entities, the Committee estimates that

none of the eight handlers regulated by

the order would be considered small

entities as all are national and

multinational corporations involved in

the buying and selling of essential oils

and the products of such essential oils.

The Committee also estimates that 17 of

the 135 Scotch spearmint oil producers

and 10 of the 115 Native spearmint oil

producers would be classified as small

entities. Thus, a majority of handlers

and producers of Far West spearmint oil

may not be classified as small entities.

This proposed rule would establish

the quantity of spearmint oil produced

in the Far West, by class, that handlers

may purchase from, or handle for,

producers during the 1997–97

marketing year. The committee

recommended this rule for the purpose

of avoiding extreme fluctuations in

supplies and prices, and thus help to

maintain stability in the spearmint oil

market. This action is authorized by the

provisions of sections 985.50, 985.51

and 985.52 of the order.

The small spearmint oil producers

generally are not extensively diversified

and as such are more at risk to market

fluctuations. Such small farmers

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 incomes 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.

Records show that the marketing

order has contributed extensively to the

stabilization of grower prices, which

prior to 1980 experienced wide

fluctuations from year to year. Prior to

1980, grower prices for Native

spearmint oil were historically cyclical.

For example, between 1971 and 1975

the price of Native spearmint oil

increased from $3.00 per pound to

$11.00 per pound. In contrast, under the

marketing order, prices have stabilized

between $10.50 and $11.50 per pound

for the past ten years.

Alternatives to this proposal included

not regulating the handling of spearmint

oil during the 1997–98 marketing year,

and recommending either higher or

lower salable quantities and allotment

percentages. The Committee reached its

recommendation to establish salable

quantities and allotment percentages for

both classes of oil after careful

consideration of all available

information, and believe that the levels

recommended will achieve the

objectives sought. Without any

regulations in effect, the Committee

believes the industry would return to

the pattern of cyclical prices of prior

years, as well as suffer the potentially

price depressing consequence that a

release of the nearly 1,300,000 pounds

of spearmint oil reserves would have on

the market. According to the Committee,

higher or lower salable quantities and

allotment percentages would not

achieve the intended balance between

market and price stability and market

share maintenance and growth.

Annual salable quantities and

allotment percentages have been issued

for both classes of spearmint oil since

the order’s inception. Reporting and

recordkeeping requirements have

remained the same for each year of

regulation. Accordingly, this action

would not impose any additional

reporting or recordkeeping requirements

on either small or large spearmint oil

producers and handlers. All reports and

forms associated with this program are

reviewed periodically in order to avoid

unnecessary and duplicitous
Federal Register / Vol. 62, No. 4 / Tuesday, January 7, 1997 / Proposed Rules 945

information collection by industry and

public sector agencies. The Department

has not identified any relevant Federal

rules that duplicate, overlap, or conflict

with this proposed rule.

Finally, the Committee’s meetings

were widely publicized throughout the

spearmint oil industry and all interested

persons were invited to attend and

participate on all issues. Interested

persons are also invited to submit

information on the regulatory and

informational impacts of this action on

small businesses.

A 30-day comment period is provided

to allow interested persons to respond

to this proposal. All written comments

received within the comment period

will be considered before a final

determination is made on this matter.

List of Subjects in 7 CFR Part 985

Marketing agreements, Oils and fats,

Reporting and recordkeeping

requirements, Spearmint oil.

For the reasons set forth in the

preamble, 7 CFR Part 985 is proposed to

be amended as follows:

PART 985—MARKETING ORDER

REGULATING THE HANDLING OF

SPEARMINT OIL PRODUCED IN THE

FAR WEST

1. The authority citation for 7 CFR

Part 985 continues to read as follows:

Authority: 7 U.S.C. 601–674.

2. A new § 985.216 is added to read

as follows:

[Note: This section will not appear in the

Code of Federal Regulations.]

§ 985.216 Salable quantities and allotment

percentages—1997–98 marketing year.

The salable quantity and allotment

percentage for each class of spearmint

oil during the marketing year beginning

on June 1, 1997, shall be as follows:

(a) Class 1 (Scotch) oil—a salable

quantity of 996,522 pounds and an

allotment percentage of 55 percent.

(b) Class 3 (Native) oil—a salable

quantity of 1,125,351 pounds and an

allotment percentage of 56 percent.

Dated: December 31, 1996.

Robert C. Keeney,

Director, Fruit and Vegetable Division.

[FR Doc. 97–281 Filed 1–6–97; 8:45 am]

BILLING CODE 3410–02–P

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. 95–NM–215–AD]

Airworthiness Directives; Boeing

Model 737–100 and –200 Series

Airplanes

AGENCY: Federal Aviation

Administration, DOT.

ACTION: Notice of proposed rulemaking

(NPRM).

SUMMARY: This document proposes the

supersedure of an existing airworthiness

directive (AD), applicable to certain

Boeing Model 737–100 and –200 series

airplanes, that currently requires

various inspections for cracks in the

outboard chord of the frame at body

station (BS) 727 and in the outboard

chord of stringer 18A; and repair or

replacement of cracked parts. That AD

was prompted by reports of fatigue

cracks in those outboard chords. This

action would add inspections for certain

airplanes, and would revise certain

compliance times for all airplanes. The

actions specified by the proposed AD

are intended to detect and correct

fatigue cracking, which could result in

reduced structural integrity of the

outboard chords, and subsequent rapid

decompression of the airplane.

DATES: Comments must be received by

February 18, 1997.

ADDRESSES: Submit comments in

triplicate to the Federal Aviation

Administration (FAA), Transport

Airplane Directorate, ANM–103,

Attention: Rules Docket No. 95–NM–

215–AD, 1601 Lind Avenue, SW.,

Renton, Washington 98055–4056.

Comments may be inspected at this

location between 9:00 a.m. and 3:00

p.m., Monday through Friday, except

Federal holidays.

The service information referenced in

the proposed rule may be obtained from

Boeing Commercial Airplane Group,

P.O. Box 3707, Seattle, Washington

98124–2207. This information may be

examined at the FAA, Transport

Airplane Directorate, 1601 Lind

Avenue, SW., Renton, Washington.

FOR FURTHER INFORMATION CONTACT:

Della Swartz, Aerospace Engineer,

Airframe Branch, ANM–120S, FAA,

Seattle Aircraft Certification Office,

1601 Lind Avenue, SW., Renton,

Washington; telephone (206) 227–2785;

fax (206) 227–1181.

SUPPLEMENTARY INFORMATION:

Comments Invited

Interested persons are invited to

participate in the making of the

proposed rule by submitting such

written data, views, or arguments as

they may desire. Communications shall

identify the Rules Docket number and

be submitted in triplicate to the address

specified above. All communications

received on or before the closing date

for comments, specified above, will be

considered before taking action on the

proposed rule. The proposals contained

in this notice may be changed in light

of the comments received.

Comments are specifically invited on

the overall regulatory, economic,

environmental, and energy aspects of

the proposed rule. All comments

submitted will be available, both before

and after the closing date for comments,

in the Rules Docket for examination by

interested persons. A report

summarizing each FAA-public contact

concerned with the substance of this

proposal will be filed in the Rules

Docket.

Commenters wishing the FAA to

acknowledge receipt of their comments

submitted in response to this notice

must submit a self-addressed, stamped

postcard on which the following

statement is made: ‘‘Comments to

Docket Number 95–NM–215–AD.’’ The

postcard will be date stamped and

returned to the commenter.

Availability of NPRMs

Any person may obtain a copy of this

NPRM by submitting a request to the

FAA, Transport Airplane Directorate,

ANM–103, Attention: Rules Docket No.

95–NM–215–AD, 1601 Lind Avenue,

SW., Renton, Washington 98055–4056.

Discussion

On June 5, 1995, the FAA issued AD

95–12–17, amendment 39–9268 (60 FR

36981, July 19, 1995), applicable to

certain Boeing Model 737–100 and –200

series airplanes, to require various

inspections for cracks in the outboard

chord of the frame at body station (BS)

727 and in the outboard chord of

stringer 18A; and repair or replacement

of cracked parts. That AD also provides

for an optional terminating action for

the required inspections. That action

was prompted by reports of fatigue

cracks in those outboard chords. The

requirements of that AD are intended to

detect and correct such fatigue cracking,

which could result in reduced structural

integrity of the outboard chords, and

subsequent rapid decompression of the

airplane.