Federal Register / Vol. 63, No. 108 / Friday, June 5, 1998 /Rules and Regulations 30579

crops. Industry shipments totaled 2.8

million bags with a production value of

$25.4 million. The suspension for last

season provided producers and handlers

more flexibility in meeting the needs of

their buyers.

The Committee believes that

providing handlers the ability to pack

and load on Sundays will continue to

benefit the industry. Removal of the

prohibitions provided producers with

an additional window of opportunity to

harvest and deliver their onions to

handlers for sorting, grading, packaging,

and loading. The continued use of this

self-imposed restriction could have

caused the South Texas area to lose its

markets to other competing areas,

because these areas can package and

load onions on Sunday. Removing the

Sunday packaging and loading

prohibitions positively impacted both

small and large handlers by helping

them maintain markets.

This action is intended to improve

producers’ and handlers’ returns by

allowing them to package and load

onions on Sunday if their operations

were curtailed for some reason during

the previous week. The ability to pack

and load on Sunday has helped

handlers fill unexpected rush orders

made at the end of the normal packing

week. There have been times when

handlers were packing onions on

Saturday night, and at 12:01 a.m. had to

stop even though the packing had not

yet been completed. This hindered

handler operations and unduly delayed

the packing and shipping of onions to

meet buyer needs.

The Committee considered not

removing the Sunday packing and

loading prohibitions. However, not

relaxing the regulation could have

resulted in significant crop losses, as

occurred last season, prior to the

emergency suspension of the

prohibition. Also, the cessation in

harvesting activity last season resulted

in increased unemployment among

onion field workers and employees at

handlers’ facilities. In addition, reduced

supplies could result in consumers

paying higher prices for onions. The

opportunity to pack and load onions

seven days a week gives producers and

handlers more time to harvest and

prepare onions for market. This

increased flexibility enables the

industry to better meet buyer needs and

compete more effectively with its

competition.

This rule will not impose any

additional reporting or recordkeeping

requirements on either small or large

South Texas onion handlers. As with all

Federal marketing order programs,

reports and forms are periodically

reviewed to reduce information

collection requirements and duplication

by industry and public sectors. In

addition, the Department 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 South

Texas onion industry and all interested

persons were invited to attend the

meeting and participate in Committee

deliberations. Like all Committee

meetings, the November 6, 1997,

meeting was a public meeting and all

entities, both large and small, were able

to express their views on this issue.

Finally, interested persons were invited

to submit information on the regulatory

and informational impacts of this action

on small businesses.

An interim final rule concerning this

action was published in the Federal

Register on February 24, 1998 (63 FR

9128). The interim final rule was made

available through the Internet by the

Office of the Federal Register. A 60-day

comment period was provided for

interested persons to respond to the

interim final rule. The comment period

ended on April 27, 1998, and no

comments were received.

After consideration of all relevant

material presented, including the

information and recommendation

submitted by the Committee and other

available information, it is hereby found

that finalizing the interim final rule,

without change, as published in the

Federal Register (63 FR 9128, February

24, 1998), will tend to effectuate the

declared policy of the Act.

List of Subjects in 7 CFR Part 959

Marketing agreements, Onions,

Reporting and recordkeeping

requirements.

For the reasons set forth in the

preamble, 7 CFR part 959 is amended as

follows:

PART 959—ONIONS GROWN IN

SOUTH TEXAS

Accordingly, the interim final rule

amending 7 CFR part 959 which was

published at 63 FR 9128 on February 24,

1998, is adopted as a final rule without

change.

Dated: June 1, 1998.

Sharon Bomer Lauritsen,

Acting Deputy Administrator, Fruit and

Vegetable Programs.

[FR Doc. 98–15016 Filed 6–4–98; 8:45 am]

BILLING CODE 3410–02–P

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 985

[Docket No. FV98–985–2 FIR]

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: Final rule.

SUMMARY: The Department of

Agriculture (Department) is adopting as

a final rule, without change, the

provisions of an interim final rule

increasing 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.

EFFECTIVE DATE: June 8, 1998.

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
30580 Federal Register / Vol. 63, No. 108 / Friday, June 5, 1998 /Rules and Regulations

‘‘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 continues an increase in 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 finalizes an interim final

rule that increased 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. Thus, this

rule finalizes the increase in 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.

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. This final rule increases

the 1997–98 marketing year Native

spearmint oil salable quantity of

1,125,351 pounds 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.

This final rule finalizes the interim

final rule that made an additional

amount of Native spearmint oil

available by increasing the salable

quantity which releases 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.
Federal Register / Vol. 63, No. 108 / Friday, June 5, 1998 /Rules and Regulations 30581

(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 have been 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 have been

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

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 § 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

final 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
30582 Federal Register / Vol. 63, No. 108 / Friday, June 5, 1998 /Rules and Regulations

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 have been

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.

The interim final rule regarding this

action was issued on April 24, 1998,

and published in the Federal Register

(63 FR 23373, April 29, 1998), with an

effective date of April 30, 1998. That

rule amended § 985.216 of the rules and

regulations in effect under the order and

provided a 20-day comment period

which ended May 19, 1998. No

comments were received.

After consideration of all relevant

matter presented, including that

contained in the prior proposed, interim

final, 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 § 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.

It is further found that that good cause

exists for not postponing the effective

date of this rule until 30 days after

publication in the Federal Register (5

U.S.C. 553) because this rule applies to

spearmint produced during the 1997–98

marketing year, which ends May 31,

1998. Further, handlers are aware of this

rule, which was recommended at a

public meeting. Also, a 20-day comment

period was provided in the interim final

rule and no comments were received.

List of Subjects in 7 CFR Part 985

Marketing agreements, Oils and fats,

Reporting and recordkeeping

requirements, Spearmint oil.

PART 985—MARKETING ORDER

REGULATING THE HANDLING OF

SPEARMINT OIL PRODUCED IN THE

FAR WEST

Accordingly, the interim final rule

amending 7 CFR part 985 which was

published at 63 FR 23371 on April 29,

1998, is adopted as a final rule without

change.

Dated: June 1, 1998

Sharon Bomer Lauritsen,

Deputy Administrator, Fruit and Vegetable

Programs.

[FR Doc. 98–15002 Filed 6–4–98; 8:45 am]

BILLING CODE 3410–02–P

DEPARTMENT OF AGRICULTURE

Animal and Plant Health Inspection

Service

9 CFR Part 77

[Docket No. 97–063–2]

Tuberculosis in Cattle and Bison; State

Designation; Hawaii

AGENCY: Animal and Plant Health

Inspection Service, USDA.

ACTION: Interim rule and request for

comments.

SUMMARY: We are amending the

tuberculosis regulations concerning the

interstate movement of cattle and bison

by raising the designation of Hawaii

from an accredited-free (suspended)

State to an accredited-free State. We

have determined that Hawaii meets the

criteria for designation as an accreditedfree State.

DATES: Interim rule effective June 1,

1998. Consideration will be given only

to comments received on or before

August 4, 1998.

ADDRESSES: Please send an original and

three copies of your comments to

Docket No. 97–063–2, Regulatory

Analysis and Development, PPD,

APHIS, suite 3C03, 4700 River Road

Unit 118, Riverdale, MD 20737–1238.

Please state that your comments refer to

Docket No. 97–063–2. Comments

received may be inspected at USDA,

room 1141, South Building, 14th Street

and Independence Avenue SW.,

Washington, DC, between 8 a.m. and

4:30 p.m., Monday through Friday,

except holidays. Persons wishing to

inspect comments are requested to call

ahead on (202) 690–2817 to facilitate

entry into the comment reading room.

FOR FURTHER INFORMATION CONTACT: Dr.

Joseph VanTiem, Senior Staff

Veterinarian, National Animal Health

Programs, VS, APHIS, 4700 River Road