This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents. Prices of

new books are listed in the first FEDERAL

REGISTER issue of each week.

Rules and Regulations Federal Register

23371

Vol. 63, No. 82

Wednesday, April 29, 1998

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 985

[FV98–985–2 IFR]

Marketing Order Regulating the

Handling of Spearmint Oil Produced in

the Far West; Revision of the Salable

Quantity and Allotment Percentage for

Class 3 (Native) Spearmint Oil for the

1997–98 Marketing Year

AGENCY: Agricultural Marketing Service,

USDA.

ACTION: Interim final rule with request

for comments.

SUMMARY: This rule increases the

quantity of Class 3 (Native) spearmint

oil produced in the Far West that

handlers may purchase from, or handle

for, producers during the 1997–98

marketing year. This rule was

recommended by the Spearmint Oil

Administrative Committee (Committee),

the agency responsible for local

administration of the marketing order

for spearmint oil produced in the Far

West. The Committee recommended

this rule to avoid extreme fluctuations

in supplies and prices and thus help to

maintain stability in the Far West

spearmint oil market.

DATES: Effective on April 30, 1998,

through May 31, 1998; comments

received by May 19, 1998, 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, Fruit and

Vegetable Programs, AMS, USDA, room

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

Washington, DC 20090–6456; Fax: (202)

205–6632. 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.

FOR FURTHER INFORMATION CONTACT:

Robert J. Curry, Northwest Marketing

Field Office, Marketing Order

Administration Branch, Fruit and

Vegetable Programs, AMS, USDA, 1220

SW Third Avenue, room 369, Portland,

Oregon 97204–2807; telephone: (503)

326–2724; Fax: (503) 326–7440; or Anne

M. Dec, Marketing Order

Administration Branch, Fruit and

Vegetable Programs, AMS, USDA, room

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

Washington, DC 20090–6456; telephone:

(202) 720–2491; Fax: (202) 205–6632.

Small businesses may request

information on compliance with this

regulation by contacting: Jay Guerber,

Marketing Order Administration

Branch, Fruit and Vegetable Programs,

AMS, USDA, room 2525, South

Building, P.O. Box 96456, Washington,

DC 20090–6456; telephone (202) 720–

2491; Fax: (202) 205–6632.

SUPPLEMENTARY INFORMATION: This 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), hereinafter referred to as the

‘‘order.’’ This 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 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 may be purchased from or

handled for producers by handlers

during the 1997–98 marketing year,

which ends on May 31, 1998. This 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.

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. 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 order).

Spearmint oil is also produced in the

Midwest. The production area covered

by the order normally accounts for

approximately 75 percent of the annual

U.S. production of spearmint oil.

This rule increases the quantity of

Native spearmint oil that handlers may

purchase from, or handle for, producers

during the 1997–98 marketing year,

which ends on May 31, 1998. This rule

increases the salable quantity from

1,125,351 pounds to 1,185,550 pounds

and the allotment percentage from 56

percent to 59 percent for Native

spearmint oil for the 1997–98 marketing

year.

The salable quantity is the total

quantity of each class of oil that

handlers may purchase from, or handle

for, producers during a marketing year.

The salable quantity calculated by the

Committee is based on the estimated

trade demand. 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.
23372 Federal Register / Vol. 63, No. 82 /Wednesday, April 29, 1998 /Rules and Regulations

The initial salable quantity and

allotment percentages for Scotch and

Native spearmint oils for the 1997–98

marketing year were recommended by

the Committee at its October 2, 1996,

meeting. The Committee recommended

salable quantities of 996,522 pounds

and 1,125,351 pounds, and allotment

percentages of 55 percent and 56

percent, respectively, for Scotch and

Native spearmint oils. A proposed rule

was published in the January 7, 1997,

issue of the Federal Register (62 FR

942). A final rule establishing the

salable quantities and allotment

percentages for Scotch and Native

spearmint oils for the 1997–98

marketing year was published in the

July 9, 1997, issue of the Federal

Register (62 FR 36646).

Pursuant to authority contained in

§§ 985.50, 985.51, and 985.52 of the

order, at its February 25, 1998, meeting,

the Committee unanimously

recommended that the allotment

percentage for Native spearmint oil for

the 1997–98 marketing year be

increased by 3 percent from 56 percent

to 59 percent. Taking into consideration

the following discussion on adjustments

to the Native spearmint oil salable

quantity, the 1997–98 marketing year

salable quantity of 1,125,351 pounds

will therefore be increased to 1,185,550

pounds.

The original total industry allotment

base for Native spearmint oil for the

1997–98 marketing year was established

at 2,009,556 pounds and was revised

during the year to 2,006,630 pounds to

reflect loss of 2,926 pounds of base due

to non-production of some producers’

total annual allotments. When the

revised total allotment base of 2,006,630

pounds is applied to the originally

established allotment percentage of 56,

the 1997–98 marketing year salable

quantity of 1,125,351 pounds is

effectively modified to 1,123,713

pounds.

Further, § 985.56(a) of the order

authorizes producers who have

produced more than their salable

quantity of spearmint oil during a

marketing year to transfer such excess to

producers who have produced less than

their salable quantity for the same

marketing year. If all producers having

such an excess transfer their excess oil

to producers having a deficiency, all of

the annual allotment is utilized. If, on

the other hand, this option is not

utilized to its full extent, some annual

allotment is essentially lost and the

effective salable quantity for that year is

reduced by the amount of excess oil that

was not transferred to fill deficiencies.

During the 1997–98 marketing year,

producers who were deficient by 3,957

pounds of Native spearmint oil chose

not to have this deficiency filled by

producers having excess oil. This also

effectively reduced the already modified

1997–98 salable quantity by 3,957

pounds leaving a net quantity of

1,119,756 pounds.

By increasing the salable quantity and

allotment percentage, this rule makes an

additional amount of Native spearmint

oil available by releasing such oil from

the reserve pool. When applied to each

individual producer, the 3 percent

allotment percentage increase allows

each producer to take up to 3 percent of

their allotment base from their Native

spearmint oil reserve. If a producer does

not have any reserve pool oil, or has less

than 3 percent of their allotment base in

the reserve pool, the increase in

allotment percentage will actually make

less than such amount available to the

market. Currently, producers receiving

6,201 pounds of additional allotment

through this increase do not have any

Native spearmint oil in reserve. Thus,

rather than 60,199 additional pounds,

this action effectively makes an

additional 53,998 pounds of Native

spearmint oil available to the market.

The following table summarizes the

Committee recommendation:

Native Spearmint Oil Recommendation

(a) Estimated 1997–98 Allotment

Base—2,009,556 pounds. This is the

estimate that the 1997–98 Native

spearmint oil salable quantity and

allotment percentage was based on.

(b) Revised 1997–98 Allotment Base—

2,006,630 pounds. This is 2,926 pounds

less than the estimated allotment base.

This base was lost because some

producers failed to produce all of their

previous year’s allotment.

(c) Initial 1997–98 Allotment

Percentage—56 percent.

(d) Initial 1997–98 Salable Quantity—

1,125,351 pounds. This figure is 56

percent of 2,009,556 pounds.

(e) Initial Adjustment to the 1997–98

Salable Quantity—1,123,713 pounds.

This figure reflects the salable quantity

initially available after the beginning of

the 1997–98 marketing year due to the

2,296 pound reduction in the industry

allotment base to 2,006,630 pounds.

(f) Final Adjustment to the 1997–98

Salable Quantity—1,119,756 pounds.

This figure reflects the salable quantity

actually available during the 1997–98

marketing year after the 3,957 pound

deficiency was subtracted from the

initially adjusted salable quantity of

1,123,713 pounds.

(g) Increase in Allotment Percentage—

3 percent. This percentage increase was

recommended by the Committee at its

February 25, 1998, meeting.

(h) Revised 1997–98 Allotment

Percentage—59 percent. This figure is

derived by adding the 3 percent increase

to the initial 1997–98 allotment

percentage of 56 percent.

(i) Calculated Revised 1997–98

Salable Quantity—1,185,638 pounds.

This figure is 59 percent of the

estimated 1997–98 allotment base of

2,009,556 pounds.

(j) Computed Increase in the 1997–98

Salable Quantity—60,287 pounds. This

is the product of the estimated 1997–98

allotment base of 2,009,556 and the

revised 1997–98 allotment percentage of

59 percent.

(k) Effective Increase in the 1997–98

Salable Quantity—53,998 pounds. This

figure represents the amount of Native

spearmint oil actually being made

available by this action based on the

adjustments described herein.

In making this latest recommendation,

the Committee considered all available

information on supply and demand. The

1997–98 marketing year began on June

1, 1997. Handlers have indicated that

with this action, the available supply of

both Scotch and Native spearmint oils

appears adequate to meet anticipated

demand through May 31, 1998. Without

the increase, the Committee believes the

industry would not be able to meet

market needs. As of February 25, 1998,

approximately 89,000 pounds of Native

spearmint oil was available for market.

Average demand for Native spearmint

oil from March 1 to May 31 over the

past 17 years has been 108,029 pounds.

Therefore, based on past history the

industry may not be able to meet market

demand without this increase. When the

Committee made its initial

recommendation for the establishment

of the Native spearmint oil salable

quantity and allotment percentage for

the 1997–98 marketing year, it had

anticipated that the year would end

with an ample available supply. This

action has the effect of adding 53,998

pounds of Native spearmint oil to the

amount available for market, bringing

the total available supply for the period

February 25 through May 31, 1998, up

to approximately 144,000 pounds.

The Department, based on its analysis

of available information, has determined

that the 1997–98 salable quantity and

allotment percentage for Native

spearmint oil for the 1997–98 marketing

year should be increased to 1,185,638

and 59 percent, respectively.

This rule relaxes the regulation of

Native spearmint oil and will allow

growers to meet market needs and

improved returns. In conjunction with

the issuance of this rule, the

Committee’s revised marketing policy

statement for the 1997–98 marketing
Federal Register / Vol. 63, No. 82 /Wednesday, April 29, 1998 /Rules and Regulations 23373

year has been reviewed by the

Department. The Committee’s marketing

policy statement, a requirement

whenever the Committee recommends

implementing volume regulations or

recommends revisions to existing

volume regulations, fully meets the

intent of section 985.50 of the order.

During its discussion of revising the

1997–98 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 the

Department’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 this class of oil. In

determining anticipated market needs,

consideration by the Committee was

given to historical sales, and changes

and trends in production and demand.

Pursuant to requirements set forth in

the Regulatory Flexibility Act (RFA), the

AMS has considered the economic

impact of this action on small entities.

Accordingly, the 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 9 spearmint oil handlers

subject to regulation under the

marketing order and approximately 200

producers of spearmint oil in the

regulated production area. Of the 200

producers, approximately 125 producers

hold Class 1 (Scotch) spearmint oil

allotment base, and approximately 110

producers hold Class 3 (Native)

spearmint oil allotment base. Small

agricultural service firms are defined by

the Small Business Administration

(SBA) (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.

Based on the SBA’s definition of

small entities, the Committee estimates

that two of the nine handlers regulated

by the order would 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

29 of the 124 Scotch spearmint oil

producers and 14 of the 110 Native

spearmint oil producers would 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. Crop

rotation is an essential cultural practice

in the production of spearmint oil for

weed, insect, and disease control. A

normal spearmint oil producing

operation would have enough acreage

for rotation such that the total acreage

required to produce the crop would be

about one-third spearmint and twothirds rotational crops. An average

spearmint oil producing farm would

thus have to have considerably more

acreage than would be planted to

spearmint during any given season. To

remain economically viable with the

added costs associated with spearmint

oil production, most spearmint oil

producing farms would fall into the

category of large businesses.

Small spearmint oil producers

represent a minority of farming

operations and are more vulnerable to

market fluctuations. Such small farmers

generally need to market their entire

annual crop and do not have the

resources 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 of

stronger incomes from alternate crops

which could support the operation for a

period of time. Despite the advantage of

larger producers, increasing the Native

salable quantity and allotment

percentage will help both large and

small producers by improving returns.

In addition, this change may potentially

benefit the small producer more than

large producers. This is because the

change ensures that small producers are

more likely to maintain a profitable cash

flow and meet annual expenses.

Alternatives to this rule included not

increasing the available supply of

Native spearmint oil, which could

potentially hurt small producers. 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

believes that the level recommended

will achieve the objectives sought.

Without the increase, the Committee

believes the industry would not be able

to meet market needs. As of February

25, 1998, approximately 88,000 pounds

of Native spearmint oil were available

for market. Average demand for Native

spearmint oil from March 1 to May 31

over the past 17 years has been 108,029

pounds. Therefore, based on past

history the industry may not be able to

meet market demand without this

change. When the Committee made its

initial recommendation for the

establishment of the Native spearmint

oil salable quantity and allotment

percentage for the 1997–98 marketing

year, it had anticipated that the year

would end with an ample available

supply. This revision has the effect of

adding 53,998 pounds of Native

spearmint oil to the amount available

for market, bringing the total available

supply for the period February 25

through May 31, 1998, up to 144,158

pounds.

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 will

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 duplicative

information collection by industry and

public sector agencies. The Department

has not identified any relevant Federal

rules that duplicate, overlap, or conflict

with this rule.

Finally, the Committee’s meeting was

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.

After consideration of all relevant

matter presented, including that
23374 Federal Register / Vol. 63, No. 82 /Wednesday, April 29, 1998 /Rules and Regulations

contained in the prior proposed and

final rules in connection with the

establishment of the salable quantities

and allotment percentages for Scotch

and Native spearmint oils for the 1997–

98 marketing year, the Committee’s

recommendation and other available

information, it is found that to revise

section 985.216 (62 FR 36650) to change

the salable quantity and allotment

percentage for Native spearmint oil, as

hereinafter set forth, will tend to

effectuate the declared policy of the Act.

This rule invites comments on a

revision to the salable quantity and

allotment percentage for Native

spearmint oil. A 20-day comment period

is provided. This comment period is

appropriate because the marketing year

ends on May 31, 1998. Any comments

received will be considered prior to

finalization of this rule.

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, 1998; (2)

the quantity of Native spearmint planted

for the 1998–99 marketing year may be

affected, thus handlers and producers

should be apprised as soon as possible

of the salable quantity and allotment

percentage of Native spearmint oil

contained in this interim final rule; (3)

the Committee unanimously

recommended this change at a public

meeting and interested parties had an

opportunity to provide input; and (4)

this rule provides a 20-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. Section 985.216 is amended by

revising paragraph (b) to read as follows:

[Note: This section will not appear in the

annual Code of Federal Regulations.]

§ 985.216 Salable quantities and allotment

percentages—1997–98 marketing year.

* * * * *

(b) Class 3 (Native) oil—a salable

quantity of 1,185,550 pounds and an

allotment percentage of 59 percent.

Dated: April 24, 1998.

Robert C. Keeney,

Deputy Administrator, Fruit and Vegetable

Programs.

[FR Doc. 98–11446 Filed 4–28–98; 8:45 am]

BILLING CODE 3410–02–P

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. 95–NM–143–AD; Amendment

39–10499; AD 98–09–18]

RIN 2120–AA64

Airworthiness Directives; Airbus

Industrie Model A320 and A321 Series

Airplanes

AGENCY: Federal Aviation

Administration, DOT.

ACTION: Final rule.

SUMMARY: This amendment adopts a

new airworthiness directive (AD),

applicable to certain Airbus Industrie

Model A320 and A321 series airplanes,

that requires replacement of two

elevator aileron computers (ELAC) with

ELAC’s that contain new software. This

amendment is prompted by a report

indicating difficulty maintaining the

intended flight path during landing in

turbulent conditions. The actions

specified by this AD are intended to

prevent situations that could lead to

reduced controllability of the airplane

due to adverse airplane-pilot coupling

characteristics.

DATES: Effective June 3, 1998.

The incorporation by reference of

certain publications listed in the

regulations is approved by the Director

of the Federal Register as of June 3,

1998.

ADDRESSES: The service information

referenced in this AD may be obtained

from Airbus Industrie, 1 Rond Point

Maurice Bellonte, 31707 Blagnac Cedex,

France. This information may be

examined at the Federal Aviation

Administration (FAA), Transport

Airplane Directorate, Rules Docket,

1601 Lind Avenue, SW., Renton,

Washington; or at the Office of the

Federal Register, 800 North Capitol

Street, NW., suite 700, Washington, DC.

FOR FURTHER INFORMATION CONTACT:

Norman B. Martenson, Manager,

International Branch, ANM–116, FAA,

Transport Airplane Directorate, 1601

Lind Avenue, SW., Renton, Washington

98055–4056; telephone (425) 227–2110;

fax (425) 227–1149.

SUPPLEMENTARY INFORMATION: A

proposal to amend part 39 of the Federal

Aviation Regulations (14 CFR part 39) to

include an airworthiness directive (AD)

that is applicable to certain Airbus

Industrie Model A320 and A321 series

airplanes was published in the Federal

Register on January 7, 1997 (62 FR 949).

That action proposed to require

replacement of two elevator aileron

computers (ELAC) with ELAC’s that

contain new software.

Comments

Interested persons have been afforded

an opportunity to participate in the

making of this amendment. Due

consideration has been given to the

comments received.

Two commenters support the

proposed rule.

One commenter, Airbus, does not

object to the proposed AD, but offers the

following comments suggesting changes

for clarity and accuracy. The commenter

requests that the statement of unsafe

condition, ‘‘To prevent reduced

controllability of the airplane due to

problems associated with the ELAC,

accomplish the following: * * *,’’ be

replaced with, ‘‘In order to adapt lateral

control law to real flap position in case

of failure/jamming of flaps, and in order

to harmonize the lateral behavior

between ‘full’ and ‘3’ configurations, in

turbulence, of the ELAC, accomplish the

following: * * *.’’ The commenter

states that its proposed wording of the

unsafe condition is supported by the

fact that the improvement of the ELAC

is the result of an in-service event that

arose from three conditions surrounding

that event:

—Very strong turbulence during landing

preparation;

—Flaps locked between ‘‘full’’ and ‘‘3’’

configurations resulting from flaps

extension under strong turbulent

conditions, the monitoring of the

interconnecting strut between inner

and outer flap having detected an

abnormal surfaces displacement; and

—An electronic centralized aircraft

monitor (ECAM) procedure requesting

to select slat/flap lever to ‘‘conf 3’’

when flaps are locked between

configurations ‘‘3’’ and ‘‘full’’ (lever in

position ‘‘full’’).

Additionally, the commenter notes that

no system failure initiated the reported

event. In conjunction with its