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contains regulatory documents having general

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Rules and Regulations Federal Register

16547 

Vol. 80, No. 60 

Monday, March 30, 2015 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 985 

[Doc. No. AMS–FV–13–0087; FV14–985–1C 

IR] 

Marketing Order Regulating the 

Handling of Spearmint Oil Produced in 

the Far West; Revision of the Salable 

Quantity and Allotment Percentage for 

Class 3 (Native) Spearmint Oil for the 

2014–2015 Marketing Year 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Interim rule with request for 

comments. 

SUMMARY: This interim rule implements 

a recommendation from the Spearmint 

Oil Administrative Committee 

(Committee) to further revise the 

quantity of Class 3 (Native) spearmint 

oil that handlers may purchase from, or 

handle on behalf of, producers during 

the 2014–2015 marketing year under the 

Far West spearmint oil marketing order 

(order). The salable quantity and 

allotment percentage for Native 

spearmint oil was initially established at 

1,090,821 pounds and 46 percent, 

respectively, and was subsequently 

increased to 1,280,561 pounds and 54 

percent in a separate rulemaking action. 

This rule further increases the Native 

spearmint oil salable quantity to 

1,351,704 pounds and the allotment 

percentage to 57 percent for the 2014– 

2015 marketing year. The order 

regulates the handling of spearmint oil 

produced in the Far West and is locally 

administered by the Committee, which 

is comprised of spearmint oil producers 

operating within the order’s area of 

production. The Committee 

recommended this rule for the purpose 

of maintaining orderly marketing 

conditions in the Far West spearmint oil 

market. 

DATES: Effective March 30, 2015 and 

applicable to the 2014–2015 marketing 

year; comments received by May 29, 

2015 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, Senior 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 Jeffrey Smutny, 

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: 

Jeffrey.Smutny@ams.usda.gov. 

SUPPLEMENTARY INFORMATION: This 

interim 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 Orders 

12866, 13563, and 13175. 

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 

Native spearmint oil produced in the 

Far West that handlers may purchase 

from, or handle on behalf of, producers 

during the 2014–2015 marketing year, 

which began on June 1, 2014, and ends 

on May 31, 2015. 

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 

Native spearmint oil that handlers may 

purchase from, or handle on behalf of, 

producers during the 2014–2015 

marketing year under the Far West 

spearmint oil marketing order. Prior to 

this rule, the salable quantity and 

allotment percentage for Native 

spearmint oil was initially established at 

1,090,821 pounds and 46 percent, 

respectively, in a final rule published 

May 8, 2014 (79 FR 26359). The salable 

quantity and allotment percentage was 

subsequently increased to 1,280,561 

pounds and 54 percent in an interim 

rule published January 22, 2015 (80 FR 

3142). This interim rule further 

increases the Native spearmint oil 

salable quantity from 1,280,561 pounds 

to 1,351,704 pounds and the allotment 

percentage from 54 percent to 57 

percent. This action is anticipated to be 


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16548 Federal Register / Vol. 80, No. 60 / Monday, March 30, 2015 / Rules and Regulations 

the last revision of the Native spearmint 

oil salable quantity and allotment 

percentage established under the order 

for the 2014–2015 marketing year. 

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. 

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. 

The full Committee met on November 

6, 2013, to consider its marketing policy 

for the 2014–2015 marketing year. At 

that meeting, the Committee determined 

that marketing conditions indicated a 

need for volume regulation of both 

classes of spearmint oil for the 2014– 

2015 marketing year. The Committee 

recommended salable quantities of 

1,149,030 pounds and 1,090,821 

pounds, and allotment percentages of 55 

percent and 46 percent, respectively, for 

Scotch and Native spearmint oil. A 

proposed rule to that effect was 

published in the Federal Register on 

March 14, 2014 (79 FR 14441). 

Comments on the proposed rule were 

solicited from interested persons until 

March 31, 2014. No comments were 

received. Subsequently, a final rule 

establishing the salable quantities and 

allotment percentages for Scotch and 

Native spearmint oil for the 2014–2015 

marketing year was published in the 

Federal Register on May 8, 2014 (79 FR 

26359). 

Pursuant to authority contained in 

§§ 985.50, 985.51, and 985.52 of the 

order, the full eight member Committee 

met again on September 11, 2014, to 

consider pertinent market information 

on the current supply, demand, and 

price of spearmint oil. After some 

deliberation, the Committee 

recommended increasing the 2014–2015 

marketing year Scotch spearmint oil 

salable quantity from 1,149,030 pounds 

to 1,984,423 pounds and the allotment 

percentage from 55 percent to 95 

percent. An interim rule to that effect 

was published in the Federal Register 

on October 31, 2014 (79 FR 64657). 

The full Committee met again on 

November 5, 2014, for a regularly 

scheduled annual meeting to evaluate 

the current year’s volume control 

regulation and to adopt a marketing 

policy for the 2015–2016 marketing 

year. After thorough discussion with 

regards to the current marketing 

conditions for Native spearmint oil, the 

Committee recommended revising the 

previously established 2014–2015 

marketing year Native spearmint oil 

salable quantity and allotment 

percentage. Subsequently, in an interim 

rule published in the Federal Register 

on January 22, 2015 (80 FR 3142), the 

salable quantity for Native spearmint oil 

was increased from 1,090,821 pounds to 

1,280,561 pounds and the allotment 

percentage was increased from 46 

percent to 54 percent. 

The full Committee met again on 

February 18, 2015, for a regularly 

scheduled meeting where it again 

evaluated the current year’s volume 

control regulation. At the meeting, the 

Committee assessed the current market 

conditions for spearmint oil in relation 

to the revised salable quantities and 

allotment percentages established for 

the 2014–2015 marketing year. The 

Committee considered a number of 

factors, including the current and 

projected supply, estimated future 

demand, production costs, and producer 

prices for all classes of spearmint oil. 

The Committee determined that the 

recently revised salable quantity and 

allotment percentage in effect for Native 

spearmint oil for the 2014–2015 

marketing year should be further 

increased to take into account the 

unanticipated rise in market demand for 

that class of spearmint oil. 

Therefore, the Committee 

recommended increasing the Native 

spearmint oil salable quantity from 

1,280,561 pounds to 1,351,704 pounds 

and the allotment percentage from 54 

percent to 57 percent. The 

recommendation to increase the salable 

quantity and allotment percentage 

passed unanimously. 

Thus, taking into consideration the 

following discussion, this rule makes 

additional amounts of Native spearmint 

oil available to the market by further 

increasing the salable quantity and 

allotment percentage previously 

established under the order for the 

2014–2015 marketing year. This rule 

increases the Native spearmint oil 

salable quantity 71,143 pounds, to 

1,351,704 pounds, and raises the 

allotment percentage 3 percent points, 

to 57 percent. Such additional oil will 

become available to the market by 

releasing Native spearmint oil held by 

producers in the reserve pool. As of May 

31, 2014, the Committee records show 

that the reserve pool for Native 

spearmint oil contained 446,086 pounds 

of oil. 

The increase in the salable quantity as 

a result of this rule represents an 

additional 71,143 pounds of Native 

spearmint oil being made available to 

the market. However, as some 

individual producers do not hold Native 

spearmint oil from previous year’s 

production in the reserve pool, the 

Committee expects that only 48,769 

pounds of additional Native spearmint 

oil will actually be made available to the 

spearmint oil market. The relatively 

high salable quantity resulting from this 

action, as compared to the actual 

quantity of spearmint oil that will be 

made available to the market, is 

necessary to ensure that a sufficient 

quantity of Native spearmint oil is 

available to fully supply the market. 

Producers that do not have additional 

Native spearmint oil in inventory (oil 

held in the reserve pool) will not be able 

to utilize the additional annual 

allotment issued to them as a result of 

this action and such additional annual 

allotment will go unused. 

At the February meeting, the 

Committee staff reported that demand 

for Native spearmint oil continues to be 

greater than anticipated. Committee 

records indicate that 2014–2015 

marketing year sales through the end of 

January 2015, the most recent full 

month recorded, are 148,325 pounds 

higher than for the same period in the 

2013–2014 marketing year and 211,163 

pounds higher than the average sales for 

the same period for the years 2009– 

2013. The Committee now estimates 

trade demand for Native spearmint oil 

for the 2014–2015 marketing year to be 

approximately 1,443,899 pounds, up 

from the 1,300,000 pounds initially 

estimated in the fall of 2013, and the 

1,341,000 pounds estimated at the 

Committee’s November 2014 meeting. If 

realized, this quantity of trade demand 


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would be just 19,872 pounds less than 

the quantity of Native spearmint oil 

available under the volume control 

levels implemented in January 2015 

(1,463,771 pounds available prior to this 

rule minus 1,443,899 pounds demanded 

= 19,872 pounds). The increased 

quantity of Native spearmint oil (48,769 

pounds) actually made available to the 

market as a result of this action would 

ensure that market demand is fully 

satisfied in the current year and that 

there would be approximately 68,641 

pounds of Native spearmint oil salable 

inventory available to the market for the 

start of the 2015–2016 marketing year, 

which begins on June 1, 2015. 

In making the recommendation to 

increase the salable quantity and 

allotment percentage of Native 

spearmint oil, the Committee 

considered all currently available 

information on the price, supply, and 

demand of spearmint oil. The 

Committee also considered reports and 

other information from handlers and 

producers in attendance at the meeting. 

Lastly, the Committee manager 

presented information and reports that 

were provided to the Committee staff by 

handlers and producers who were not in 

attendance at the February 18, 2015, 

meeting. 

This action increases the 2014–2015 

marketing year Native spearmint oil 

salable quantity by 71,143 pounds, to a 

total of 1,351,704 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 to market from reserve pool 

inventory. The Committee estimates that 

this action will actually make an 

additional 48,769 pounds of Native 

spearmint oil available to the market. 

That amount, combined with the 89,872 

pounds of salable Native spearmint oil 

that the Committee estimates is 

currently available to the market, will 

make a total of 138,641 pounds 

available to be marketed through the 

remainder of the marketing year. The 

total supply of Native spearmint oil that 

the Committee anticipates actually 

being available to the market over the 

course of the 2014–2015 marketing year 

will be increased to 1,512,540 pounds. 

Actual sales of Native spearmint oil for 

the 2013–2014 marketing year totaled 

1,341,555 pounds. 

The Committee estimates that this 

action will result in 68,641 pounds of 

salable Native spearmint oil being 

carried into the 2015–2016 marketing 

year. In addition, the Committee expects 

that 248,602 pounds of Native 

spearmint oil will still be held in 

reserve pool stocks by producers after 

this increase. These inventory levels are 

low in comparison to historical levels, 

but are well within the range that the 

Committee believes to be appropriate 

moving forward. In addition, the 

Committee believes that the current 

Native spearmint oil market situation 

will stimulate production of Native 

spearmint oil in the coming years, 

further ensuring that the market will be 

adequately supplied in the future. 

As mentioned previously, when the 

original 2014–2015 marketing policy 

statement was drafted, handlers 

estimated the demand for Native 

spearmint oil for the 2014–2015 

marketing year to be 1,300,000 pounds. 

The Committee’s initial 

recommendation for the establishment 

of the Native spearmint oil salable 

quantity and allotment percentage for 

the 2014–2015 marketing year was 

based on that estimate. The Committee 

did not anticipate the increase in 

demand for Native spearmint oil that 

the market is currently experiencing and 

did not make allowances for it when the 

marketing policy was initially adopted. 

At the February 18, 2015, meeting, the 

Committee revised its estimate of the 

current trade demand to 1,443,899 

pounds. The Committee now believes 

that the supply of Native spearmint oil 

available to the market under the 

previously revised salable quantity and 

allotment percentage would be 

insufficient to satisfy the current level of 

demand for oil at reasonable price 

levels. The Committee further believes 

that the increase in the salable quantity 

and allotment percentage effectuated by 

this action is vital to ensuring an 

adequate supply of Native spearmint oil 

is available to the market moving 

forward. 

As previously stated, it is anticipated 

that this action will make 48,769 

pounds of the Native spearmint oil held 

in the reserve pool available to the 

market. However, to achieve that 

desired net effect under the current 

supply conditions in the industry, it is 

necessary for the salable quantity and 

allotment percentage established under 

the volume regulation provisions of the 

order to be set at artificially high levels. 

The Committee records show that some 

producers do not hold Native spearmint 

oil in reserve. Given the process by 

which volume regulation is effectuated 

under the order, only those producers 

with Native spearmint oil in the reserve 

pool will be able to utilize the 

additional annual allotment that is 

issued as a result of this rule. Likewise, 

producers that do not have Native 

spearmint oil reserve oil from prior 

years’ production will not have any 

Native spearmint oil inventory to offer 

to the market, regardless of how much 

additional annual allotment is issued to 

those producers. As such, the 

Committee expects that approximately 

31 percent of the increased salable 

quantity and allotment percentage for 

Native spearmint oil may go unused. 

As an example, assume Producer A 

has 2,000 pounds of Native spearmint 

oil allotment base. In addition, assume 

that during the 2014–2015 marketing 

year Producer A produced 920 pounds 

of Native spearmint oil and held 220 

pounds of excess Native spearmint oil 

in reserve from production in prior 

years. Given that the initial 2014–2015 

marketing year allotment percentage 

was established at 46 percent, Producer 

A could market all 920 pounds of the 

current year production (46 percent 

allotment percentage × 2,000 pounds of 

allotment base), leaving him/her with 

220 pounds in the reserve pool that was 

initially not available to market. 

Without an increase in the allotment 

percentage, the producer would not 

have been able to market any of the 220 

pounds of reserve oil and the oil would 

have continued to have been held in the 

reserve pool for marketing in 

subsequent years. For Producer A to 

market all 1,140 pounds of his/her 

current year Native spearmint oil 

production and reserve inventory, the 

allotment percentage needs to be 

increased by 11 percent (8 percent plus 

3 percent) to a total of 57 percent (57 

percent × 2,000 pounds = 1,140 

pounds). An increase in the allotment 

percentage of anything less than 11 

percent would fail to release all of the 

Native spearmint oil that the producer 

holds in the reserve pool. The increase 

in the allotment percentage may be 

accomplished in several steps, but has 

a cumulative effect with regards to the 

release of spearmint oil held in the 

reserve pool. 

In contrast, assume that another 

producer, Producer B, likewise has 

2,000 pounds of Native spearmint oil 

allotment base and produced 920 

pounds of Native spearmint oil during 

the 2014–2015 marketing year. 

However, Producer B has no Native 

spearmint oil held in reserve. As in the 

first case, Producer B could market all 

of his/her current year production under 

the initial allotment percentage of 46 

percent. However, any subsequent 

increase in the allotment percentage 

would have no impact on Producer B, 

as the producer has no reserve pool oil 

available to deliver to the market. As a 

result, any additional annual allotment 

allocated to Producer B after an increase 

in the allotment percentage would go 

unfilled. 


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The Committee acknowledges that the 

relatively high salable quantity, and the 

corresponding high allotment 

percentage, will create a quantity of 

Native spearmint oil annual allotment 

for which no Native spearmint oil will 

actually be available to market. The 

Committee estimates that a 3 percent 

increase in the allotment percentage and 

a 71,143 pound increase in the salable 

quantity is required to make the desired 

48,769 pounds of Native spearmint 

reserve pool oil available to the market. 

Accordingly, the Committee expects 

that 22,374 pounds of the recommended 

71,143 pound increase in salable 

quantity will go unfilled. This quantity 

of underutilized salable quantity has 

been factored into the Committee’s 

recommendation. 

The Committee’s stated intent in the 

use of marketing order volume control 

regulation is to keep adequate supplies 

available to meet market needs and to 

maintain orderly marketing conditions. 

With that in mind, the Committee 

developed its recommendation for 

increasing the Native spearmint oil 

salable quantity and allotment 

percentage for the 2014–2015 marketing 

year based on the information discussed 

above, as well as the summary data 

outlined below. 

(A) Estimated 2014–2015 Native 

Allotment Base—2,371,350 pounds. 

This is the estimate on which the 

original 2014–2015 salable quantity and 

allotment percentage was based. 

(B) Revised 2014–2015 Native 

Allotment Base—2,371,410 pounds. 

This is 60 pounds more than the 

estimated allotment base of 2,371,350 

pounds. The difference is the result of 

annual adjustments made to the 

allotment base according to the 

provisions of the order. 

(C) Original 2014–2015 Native 

Allotment Percentage—46 percent. This 

was unanimously recommended by the 

Committee on November 6, 2013. 

(D) Original 2014–2015 Native Salable 

Quantity—1,090,821 pounds. This 

figure is 46 percent of the original 

estimated 2014–2015 allotment base of 

2,371,350 pounds. 

(E) Adjusted Initial 2014–2015 Native 

Salable Quantity—1,090,849 pounds. 

This figure reflects the salable quantity 

actually available at the beginning of the 

2014–2015 marketing year. This 

quantity is derived by applying the 

initial 46 percent allotment percentage 

to the revised allotment base of 

2,371,410. 

(F) First Revision to the 2014–2015 

Native Salable Quantity and Allotment 

Percentage: 

(1) Initial Increase in the Native 

Allotment Percentage—8 percent. The 

Committee recommended an 8 percent 

increase at its November 5, 2014, 

meeting. The revision was published in 

the Federal Register on January 22, 

2015 (80 FR 3142). 

(2) Revised 2014–2015 Native 

Allotment Percentage—54 percent. This 

number was derived by adding the 

increase of 8 percent to the initially 

established 2014–2015 allotment 

percentage of 46 percent. 

(3) Revised 2014–2015 Native Salable 

Quantity—1,280,561 pounds. This 

amount is 54 percent of the revised 

2014–2015 allotment base of 2,371,410 

pounds. 

(G) Second Revision to the 2014–2015 

Native Salable Quantity and Allotment 

Percentage: 

(1) Increase in Native Allotment 

Percentage—3 percent. The Committee 

unanimously recommended a 3 percent 

increase at its February 18, 2015, 

meeting. 

(2) Revised 2014–2015 Native 

Allotment Percentage—57 percent. This 

number is derived by adding the 3 

percent increase to the previously 

revised 2014–2015 allotment percentage 

of 54 percent. 

(3) Revised 2014–2015 Native Salable 

Quantity—1,351,704 pounds. This 

amount is 57 percent of the revised 

2014–2015 allotment base of 2,371,410 

pounds. 

(4) Computed Increase in the 2014– 

2015 Native Salable Quantity as a Result 

of this Revision—71,143 pounds. This 

figure is 3 percent of the revised 2014– 

2015 allotment base of 2,371,410 

pounds. 

(5) Expected Actual Increase in the 

2014–2015 Native Spearmint Oil 

Available to the Market—48,769 

pounds. This amount is based on the 

Committee’s estimation of Native 

spearmint oil actually held in the 

reserve pool by producers that may 

enter the market as a result of this rule. 

Scotch spearmint oil is also regulated 

by the order. As mentioned previously, 

a salable quantity and allotment 

percentage for Scotch spearmint oil was 

established in a final rule published in 

the Federal Register on May 8, 2014 (79 

FR 26359) and subsequently increased 

in an interim rule published in the 

Federal Register on October 31, 2014 

(79 FR 64657). At the February 18, 2015, 

meeting, the Committee considered the 

current production, inventory, and 

marketing conditions for Scotch 

spearmint oil. After receiving reports 

from the Committee staff and comments 

from the industry, the consensus of the 

Committee was that the previously 

increased salable quantity and allotment 

percentage for Scotch spearmint oil was 

appropriate for the current market 

conditions. As such, the Committee took 

no further action with regards to Scotch 

spearmint oil for the 2014–2015 

marketing year. 

This rule relaxes the regulation of 

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 2014–2015 

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 2014–2015 

salable quantities and allotment 

percentages, the Committee considered: 

(1) The estimated quantity of salable oil 

of each class held by producers and 

handlers; (2) the estimated demand for 

each class of oil; (3) the prospective 

production of each class of oil; (4) the 

total of allotment bases of each class of 

oil for the current marketing year and 

the estimated total of allotment bases of 

each class for the ensuing marketing 

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

class, in storage; (6) producer prices of 

oil, including prices for each class of oil; 

and (7) general market conditions for 

each class of oil, including whether the 

estimated season average price to 

producers is likely to exceed parity. 

Conformity with USDA’s ‘‘Guidelines 

for Fruit, Vegetable, and Specialty Crop 

Marketing Orders’’ has also been 

reviewed and confirmed. 

The increase in the Native spearmint 

oil salable quantity and allotment 

percentage allows for anticipated market 

needs for that class of oil. In 

determining anticipated market needs, 

the Committee considered changes and 

trends in historical sales, production, 

and demand. 

Initial Regulatory Flexibility Analysis 

Pursuant to requirements set forth in 

the Regulatory Flexibility Act (RFA) 

(5 U.S.C. 601–612), 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 

businesses 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 


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Federal Register / Vol. 80, No. 60 / Monday, March 30, 2015 / Rules and Regulations 16551 

small entities acting on their own 

behalf. 

There are 8 spearmint oil handlers 

subject to regulation under the order, 

and approximately 39 producers of 

Scotch spearmint oil and approximately 

91 producers of Native spearmint oil in 

the regulated production area. Small 

agricultural service firms are defined by 

the Small Business Administration 

(SBA) 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 (13 CFR 121.201). 

Based on the SBA’s definition of 

small entities, the Committee estimates 

that only 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 22 of the 39 Scotch spearmint oil 

producers and 29 of the 91 Native 

spearmint oil producers could be 

classified as small entities under the 

SBA definition. Thus, the 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 spearmint oil industry to 

fully supply spearmint oil markets 

while avoiding the negative 

consequences of over-supplying these 

markets. Without volume control 

regulation, the supply and price of 

spearmint oil 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 

Native spearmint oil that handlers may 

purchase from, or handle on behalf of, 

producers during the 2014–2015 

marketing year, which ends on May 31, 

2015. The 2014–2015 Native spearmint 

oil salable quantity was initially 

established at 1,090,821 pounds and the 

allotment percentage initially set at 46 

percent. The salable quantity was 

subsequently increased to 1,280,561 

pounds and the allotment percentage to 

54 percent. This rule further increases 

the Native spearmint oil salable quantity 

to 1,351,704 pounds and the allotment 

percentage to 57 percent. 

Based on the information and 

projections available at the February 18, 

2015, meeting, the Committee 

considered a number of alternatives to 

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 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 February 18, 

2015, 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/ 

MarketingOrdersSmallBusinessGuide. 

Any questions about the compliance 

guide should be sent to Jeffrey Smutny 

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 Native 

spearmint oil for the 2014–2015 

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 Native spearmint oil that 

may be marketed during the marketing 

year, which ends on May 31, 2015; (2) 

the current quantity of Native spearmint 

oil may be inadequate to meet demand 

for the 2014–2015 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. 


asabaliauskas on DSK5VPTVN1PROD with RULES
16552 Federal Register / Vol. 80, No. 60 / Monday, March 30, 2015 / Rules and Regulations 

■ 2. In § 985.233, revise paragraph (b) to 

read as follows: 

§ 985.233 Salable quantities and allotment 

percentages—2014–2015 marketing year. 

* * * * * 

(b) Class 3 (Native) oil—a salable 

quantity of 1,351,704 pounds and an 

allotment percentage of 57 percent. 

Dated: March 24, 2015. 

Rex A. Barnes, 

Associate Administrator, Agricultural 

Marketing Service. 

[FR Doc. 2015–07114 Filed 3–27–15; 8:45 am] 

BILLING CODE P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 985 

[Doc. No. AMS–FV–13–0087; FV14–985–1A 

FIR] 

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) Spearmint Oil for the 

2014–2015 Marketing Year 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Affirmation of interim rule as 

final rule. 

SUMMARY: The Department of 

Agriculture (USDA) is adopting as a 

final rule, without change, an interim 

rule recommended by the Spearmint Oil 

Administrative Committee (Committee) 

that revised the quantity of Class 1 

(Scotch) spearmint oil that handlers 

may purchase from or handle on behalf 

of, producers during the 2014–2015 

marketing year under the Far West 

spearmint oil marketing order. The 

Committee locally administers the order 

and is comprised of producers and 

handlers of spearmint oil. The interim 

rule increased the Scotch spearmint oil 

salable quantity from 1,149,030 pounds 

to 1,984,423 pounds and the allotment 

percentage from 55 percent to 95 

percent. This change is expected to help 

maintain orderly marketing conditions 

in the Far West spearmint oil market. 

DATES: Effective March 30, 2015. 

FOR FURTHER INFORMATION CONTACT: 

Barry Broadbent, Senior 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 obtain 

information on complying with this and 

other marketing order regulations by 

viewing a guide at the following Web 

site: http://www.ams.usda.gov/ 

MarketingOrdersSmallBusinessGuide; 

or by contacting Jeffrey Smutny, 

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: 

Jeffrey.Smutny@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 Orders 

12866, 13563, and 13175. 

The handling of spearmint oil 

produced in the Far West is regulated by 

the order and is administered locally by 

the Committee. Under the authority of 

the order, salable quantities and 

allotment percentages were established 

for both Scotch and Native spearmint oil 

for the 2014–2015 marketing year. 

However, early in the 2014–2015 

marketing year, it became evident to the 

Committee and the industry that 

demand for Scotch spearmint oil was 

greater than previously projected and an 

intra-seasonal increase in the salable 

quantity and allotment percentage for 

Scotch spearmint oil was necessary to 

adequately supply the increased 

demand. Therefore, this rule continues 

in effect the rule that increased the 

Scotch spearmint oil salable quantity 

from 1,149,030 pounds to 1,984,423 

pounds and the allotment percentage 

from 55 percent to 95 percent. 

In an interim rule published in the 

Federal Register on October 31, 2014, 

and effective June 1, 2014, through May 

31, 2015 (79 FR 64657, Doc. No. AMS– 

FV–13–0087, FV14–985–1A IR), 

§ 985.233 was amended to reflect the 

aforementioned increases in the salable 

quantity and allotment percentage for 

Scotch spearmint oil for the 2014–2015 

marketing year. 

Final Regulatory Flexibility Analysis 

Pursuant to requirements set forth in 

the Regulatory Flexibility Act (RFA) (5 

U.S.C. 601–612), the Agricultural 

Marketing Service (AMS) has 

considered the economic impact of this 

action on small entities. Accordingly, 

AMS has prepared this final regulatory 

flexibility analysis. 

The purpose of the RFA is to fit 

regulatory actions to the scale of 

businesses 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 39 producers of 

Scotch spearmint oil and approximately 

91 producers of Native spearmint oil in 

the regulated production area. Small 

agricultural service firms are defined by 

the Small Business Administration 

(SBA) 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 (13 CFR 121.201). 

Based on the SBA’s definition of 

small entities, the Committee estimates 

that only 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 22 of the 39 Scotch spearmint oil 

producers and 29 of the 91 Native 

spearmint oil producers could be 

classified as small entities under the 

SBA definition. Thus, the 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 spearmint oil industry to 

fully supply spearmint oil markets 

while avoiding the negative 

consequences of over-supplying these 

markets. Without volume control 

regulation, the supply and price of 

spearmint oil 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 their flavoring needs from 

other markets, potentially causing longterm economic damage to the domestic 

spearmint oil industry. The 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. 


asabaliauskas on DSK5VPTVN1PROD with RULES