This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

25710 

Vol. 79, No. 87 

Tuesday, May 6, 2014 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 985 

[Doc. No. AMS–FV–13–0088; FV14–985–2 

PR] 

Marketing Order Regulating the 

Handling of Spearmint Oil Produced in 

the Far West; Revision of 

Administrative Rules and Regulations 

Governing Issuance of Additional 

Allotment Base 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Proposed rule. 

SUMMARY: This proposed rule invites 

comments on revisions to the procedure 

currently prescribed for issuing 

additional allotment base for Class 1 

(Scotch) and Class 3 (Native) spearmint 

oil to new and existing producers under 

the Far West spearmint oil marketing 

order (order). The order regulates the 

handling of spearmint oil produced in 

the Far West and is administered locally 

by the Spearmint Oil Administrative 

Committee (Committee). This action 

would: Reduce the number of new 

producers that are issued additional 

allotment bases each year from three to 

two, for each class of oil; temporarily 

change the method by which additional 

allotment base is allocated to existing 

producers to take into account small 

production operations; and amend the 

requirements for eligibility, retention, 

and transfer of additional allotment base 

issued to new and existing producers. 

Revising the procedure for issuing 

additional allotment base would help 

ensure that new and existing spearmint 

oil producers have sufficient allotment 

base to be economically viable in the 

future. 

DATES: Comments must be received by 

May 21, 2014. 

ADDRESSES: Interested persons are 

invited to submit written comments 

concerning this proposed 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 proposal 

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: 

Manuel Michel or Gary D. Olson, 

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: 

Manuel.Michel@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 

proposal 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 proposed rule in 

conformance with Executive Orders 

12866, 13563, and 13175. 

This proposal has been reviewed 

under Executive Order 12988, Civil 

Justice Reform. This proposed rule is 

not intended to have retroactive effect. 

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 proposal invites comments on 

revisions to the procedure currently 

prescribed for issuing additional 

allotment base for Class 1 (Scotch) and 

Class 3 (Native) spearmint oil to new 

and existing producers under the order’s 

volume control provisions. This 

proposal would: (1) Reduce the number 

of allocations of additional allotment 

base issued to new producers each year 

from three to two, for each class of oil; 

(2) temporarily change the method by 

which additional allotment base is 

issued to existing producers in order to 

take into account producers whose total 

allotment base is below the size of the 

minimum economic enterprise (MEE) 

required to produce each class of 

spearmint oil; (3) provide that 

additional allotment base issued to 

existing producers under the revised 

procedure could not be used to replace 

allotment base that has been previously 

transferred away; and (4) provide that 

additional allotment base issued under 

the revised procedure could not be 

transferred to another producer for at 

least five years following issuance. This 

action was recommended unanimously 

by the Committee at a meeting on 

November 6, 2013. 

Under the order, volume control 

measures are authorized to regulate the 

marketing of spearmint oil. Regulation 

is currently effectuated through the 

issuance of allotment bases to 

producers, the establishment of annual 

salable quantities and allotment 

percentages, and the reserve pooling of 

excess production. Allotment base is 

each producer’s quantified share of the 

spearmint oil market based on a 


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statistical representation of past 

spearmint oil production, with 

accommodation for reasonable and 

normal adjustments to such base. The 

order’s provisions allow for the 

regulation of spearmint oil volume 

available to the market. The objective of 

regulation is to establish orderly 

marketing conditions for spearmint oil 

and to ensure that there is sufficient 

spearmint oil supply available to meet 

market requirements. Since the 

program’s inception, volume regulation 

has been instrumental in promoting 

market and price stability within the 

industry. 

The order contains provisions to 

ensure that there is orderly market 

expansion and that new producers are 

able to produce and market spearmint 

oil. Section 985.53(d)(1) of the order 

requires the Committee to annually 

make additional allotment bases 

available for each class of oil in the 

amount of no more than 1 percent of the 

total allotment base for that class of oil. 

Fifty percent of these additional 

allotment bases shall be made available 

to new producers and 50 percent made 

available to existing producers. 

Section 985.53(d)(3) requires the 

Committee, with the approval of the 

Secretary, to establish rules and 

regulations to be used for determining 

the distribution of additional allotment 

bases. In 1982, these rules and 

regulations were established and have 

been subsequently revised on several 

occasions, most recently in 2003. Each 

time a revision is made, the Committee 

considers several important factors 

which include: the size of the MEE 

required for spearmint oil production, 

the applicant’s ability to produce 

spearmint oil, the area where the 

spearmint oil will be produced, and 

other economic and marketing factors 

that have a direct impact on spearmint 

oil producers. The Committee reviews 

regularly, and updates as needed, the 

size of the MEE required for spearmint 

oil production. Under the order, MEE is 

the minimum size of production 

operation that the Committee has 

determined to be economically viable 

for each class of spearmint oil. Between 

1982 and 1997, the Committee revised 

the MEE for Scotch spearmint oil 

production three times and Native 

spearmint oil production four times. As 

a result, the MEE increased from 1,200 

pounds to 3,000 pounds for Scotch 

spearmint oil, and from 1,800 pounds to 

3,400 pounds for Native spearmint oil. 

Section 985.153(c)(1) of the order’s 

administrative rules and regulations 

prescribes the method by which 

additional allotment base is issued to 

new producers. In addition, 

§ 985.153(c)(2) prescribes the procedure 

by which additional allotment base is 

issued to existing producers. Lastly, 

§ 985.153(d) specifies certain 

requirements for spearmint oil 

producers who are issued additional 

allotment base pursuant to 

§ 985.153(c)(1) and (c)(2). 

The Committee met on November 6, 

2013, to consider the current procedures 

for issuing additional allotment base to 

new and existing producers and to make 

recommendations regarding the revision 

of those procedures. As required by 

§ 985.153(c)(1)(ii), the Committee first 

considered the size of the MEE required 

to produce each class of spearmint oil. 

The Committee determined that the 

MEE levels for both classes of spearmint 

oil were no longer representative and 

needed to be revised. The Committee 

recognized that, as production and 

cultural practices for spearmint oil have 

continued to change and production 

costs per acre have increased, the 

Committee’s previously established 

MEE levels are too low and should be 

revised. As such, the Committee 

concluded that the MEE thresholds had 

increased to 5,121 pounds for Scotch 

spearmint oil and 5,812 pounds for 

Native spearmint oil. 

As a result of the Committee’s 

determination that the MEE thresholds 

have increased, and given the quantity 

of additional allotment base available to 

new producers each year (1⁄2 of 1 

percent of the total allotment base for 

each class of oil), the additional 

allotment base issued each year is only 

enough for two new producers, instead 

of three, for each class of oil. 

The Committee’s initial calculation is 

that the total allotment base for Scotch 

spearmint oil during the 2014–2015 

marketing year will be approximately 

2,089,146 pounds. One half of one 

percent of this amount would be 10,445 

pounds. With the MEE for Scotch 

spearmint oil determined to be 5,121 

pounds, issuing allotment base to two 

new producers would require 10,242 

pounds, which is within the amount of 

additional allotment base that would be 

available for the year. 

Likewise, the Committee’s initial 

calculation is that the total allotment 

base for Native spearmint oil during the 

2014–2015 marketing year will be 

approximately 2,371,350 pounds. One 

half of one percent of this amount 

would be 11,856 pounds. With the MEE 

for Native spearmint oil determined to 

be 5,812 pounds, issuing allotment base 

to two new producers would require 

11,624 pounds, which is within the 

amount of additional allotment base that 

would be available for the year. 

Based on the above information, the 

Committee unanimously recommended 

reducing the number of new producers 

that would be issued additional 

allotment base each year from three to 

two for each class of oil. The Committee 

also recommended that the additional 

allotment base issued to new producers 

not be transferrable for at least five years 

following issuance. The current 

retention period prior to transferability 

is two years. New producers issued 

additional allotment base under this 

proposal would continue to be required 

to submit evidence of an ability to 

produce and sell oil from such 

allotment base in the first marketing 

year following issuance of such base. 

The Committee also gave 

consideration to existing producers with 

regards to the size of the MEE required 

to produce spearmint oil and the 

allocation of additional allotment base. 

After analyzing the Committee’s 

records, the Committee found that some 

existing producers hold allotment bases 

that are below the revised MEE levels. 

As a result, the Committee unanimously 

recommended that the additional 

allotment base that is made available 

each year to existing producers be 

temporarily allocated first to those 

eligible producers who hold allotment 

bases that are less than the MEE 

threshold in order to bring their total up 

to that level. 

Under the proposal, existing Scotch 

spearmint oil producers whose 

allotment bases are less than 5,121 

pounds as of October 17, 2012, who 

apply and who have the ability to 

produce additional quantities of 

spearmint oil, would be issued 

sufficient additional allotment base to 

bring them up to the MEE threshold 

over a three-year period extending 

through the 2016–2017 marketing year. 

In addition, existing Native spearmint 

oil producers who hold allotment bases 

of less than 5,812 pounds as of October 

17, 2012, who apply and who have the 

ability to produce additional quantities 

of spearmint oil, would be issued 

sufficient additional allotment base to 

bring them up to the MEE threshold 

over a four-year period extending 

through the 2017–2018 marketing year. 

The Committee estimates there would 

be 21 producers of Scotch spearmint oil 

and 30 producers of Native spearmint 

oil eligible for additional allotment base 

under the proposal. It is expected that 

eligible existing producers of both 

Scotch and Native spearmint oil would 

apply for the full amount of additional 

allotment base made available to them. 

If there is any unallocated additional 

allotment base remaining for either 

Scotch spearmint oil during the 2016– 


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2017 marketing year, or Native 

spearmint oil during the 2017–2018 

marketing year, such amount would be 

distributed on a prorated basis among 

all existing producers of each respective 

class of spearmint oil. 

The Committee also recommended 

that additional allotment base issued to 

producers under the proposed revised 

procedure should not be used to replace 

allotment base that has been previously 

transferred away by that producer and 

that additional allotment base issued 

under the revised procedure not be 

transferrable for at least five years 

following issuance. 

Since the establishment of the order, 

one of the Committee’s primary 

objectives has been to help ensure that 

all spearmint oil producers are 

economically viable, as evidenced by 

holding allotment bases that are above 

the minimum economic threshold 

required for spearmint oil production. 

The Committee has worked to meet this 

objective by regularly determining the 

size of the MEE and issuing additional 

allotment base accordingly. Specifically, 

the Committee has raised the quantity of 

allotment base issued to new producers, 

and increased the allotment bases of 

those existing producers who hold 

allotment bases that are below the levels 

that comprise the minimum economic 

threshold required for spearmint oil 

production. 

Another Committee objective has 

been to issue as many additional 

allotment bases as possible to new 

producers, at levels considered 

economically viable to each recipient. 

However, since the order limits the 

amount of additional allotment base 

issued to new producers, and because 

the size of the MEE required for 

spearmint oil production must be 

considered, the Committee has found it 

necessary to limit the number of new 

producers that are issued additional 

allotment base each year. Therefore, 

given the circumstances, the Committee 

believes the combination of these 

actions provides the best method 

available for optimizing the number of 

new producers that enter and remain in 

business, and also helps assure that 

there will continue to be a broad base 

of spearmint oil production. 

The procedure for issuing additional 

allotment base to new and existing 

producers has been modified several 

times since the inception of the order. 

Between 1982 and 1991, the entire Far 

West spearmint oil production area was 

treated as a single region for the purpose 

of issuing additional allotment base to 

new producers. The Committee would 

determine the size and number of 

economic enterprises of additional 

allotment base for each class of 

spearmint oil to be made available to 

new producers. The additional 

allotment bases were then issued to new 

producers drawn from the lot of eligible 

individuals who had requested 

additional allotment base. 

In 1991, the order’s administrative 

rules and regulations were modified 

through the rulemaking process to 

divide the production area into four 

regions for purposes of issuing 

additional allotment base to new 

producers. An equal number of 

allotment bases were issued to new 

producers in each region based on the 

amount of additional allotment base 

available and the MEE determined by 

the Committee. Based on the 

Committee’s determinations, this 

effectively allowed one new producer 

annually from each of the four regions 

to be issued additional allotment base, 

for each class of spearmint oil. 

Again in 1997, rulemaking action was 

taken to reorganize and reduce the 

number of regions within the Far West 

production area from four to three. This 

revision had the effect of reducing the 

number of new producers that were 

issued additional allotment bases each 

year from four to three for each class of 

spearmint oil. The Committee 

recommended the revision with the 

purpose of distributing additional 

allotment bases within the production 

area, and to increase the size of 

allotment bases issued to new producers 

to correspond to the size of the MEE. 

The Committee had determined that the 

size of the MEE for spearmint oil 

production had increased to a point 

where there was insufficient additional 

allotment base to issue economically 

sufficient quantities of base to new 

producers in all four regions. By 

reorganizing and reducing the number 

of regions to three, there was adequate 

additional allotment base to issue base 

to three new producers of each class of 

spearmint oil. In reaching its 

recommendation, the Committee 

weighed the importance of issuing as 

many additional allotment bases as 

possible against the need to issue such 

bases at levels considered economically 

viable to each recipient. 

In 2000, the three regions of the Far 

West production area were further 

reduced to two regions through the 

rulemaking process. However, the 

number of new producers issued 

additional allotment bases each year 

was maintained at three for each class 

of spearmint oil. As before, the 

Committee recommended the revision 

with the purpose of distributing 

additional allotment bases to new 

spearmint oil producers throughout the 

production area. 

The proposal to reduce the number of 

new producers issued additional 

allotment base each year from three to 

two for each class of spearmint oil is 

consistent with previous rulemaking. 

The Committee’s purpose, then and 

now, is to ensure that a maximum 

number of eligible new producers are 

issued additional allotment bases each 

year at levels that are economically 

viable to produce each class of 

spearmint oil. 

Consistent with actions taken in the 

past, the Committee made the 

recommendation after carefully 

considering information available from 

its management records, Federal and 

state government sources, and industry 

participants. The Committee also 

considered the size of the MEE required 

for the production of each class of 

spearmint oil, historical statistics 

relating to the locations of the producers 

applying for the annual additional 

allotment base, and other factors, such 

as number of producers in the regulated 

production area and the amount of 

allotment base held by such producers. 

Based on its review, the Committee 

believes that the recommended action is 

the most effective option available in 

order to continue fulfilling the order’s 

objectives. 

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 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 eight spearmint oil handlers 

subject to regulation under the order. In 

addition, there are approximately 36 

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) (13 CFR 

121.201) as those having annual receipts 

of less than $7,000,000, and small 

agricultural producers are defined as 


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those having annual receipts of less than 

$750,000. 

Based on the SBA’s definition of 

small entities, the Committee estimates 

that two of the eight handlers regulated 

by the order could be considered small 

entities. Most of the handlers are large 

corporations involved in the 

manufacture and trade of essential oils 

and the products of essential oils in the 

international market. In addition, the 

Committee estimates that 19 of the 36 

Scotch spearmint oil producers and 29 

of the 91 Native spearmint oil producers 

could be classified as small entities 

under the SBA definition. Thus, many 

handlers and producers of Far West 

spearmint oil may not be classified as 

small entities. 

The Far West spearmint oil industry 

is characterized by producers whose 

farming operations generally involve 

more than one commodity, and whose 

income from farming operations is not 

exclusively dependent on the 

production of spearmint oil. A typical 

spearmint oil-producing operation has 

enough acreage for rotation such that 

the total acreage required to produce the 

crop is about one-third spearmint and 

two-thirds rotational crops. Thus, the 

typical spearmint oil producer has to 

have considerably more acreage than is 

planted to spearmint during any given 

season. Crop rotation is an essential 

cultural practice in the production of 

spearmint oil for purposes of weed, 

insect, and disease control. To remain 

economically viable with the added 

costs associated with spearmint oil 

production, a majority of spearmint oilproducing farms fall into the SBA 

category of large businesses. 

Small spearmint oil producers 

generally are not as extensively 

diversified as larger ones and, as such, 

are more at risk from market 

fluctuations. Such small producers 

generally need to market their entire 

annual allotment and do not have the 

luxury of having other crops to cushion 

seasons with poor spearmint oil returns. 

Conversely, large diversified producers 

have the potential to endure one or 

more seasons of poor spearmint oil 

markets because income from alternate 

crops could support the operation for a 

period of time. Being reasonably assured 

of a stable market and price provides 

small producing entities with the ability 

to maintain sufficient cash flow and to 

meet annual expenses. Thus, the market 

and price stability provided by the order 

potentially benefit small producers 

more than such provisions benefit large 

producers. 

This proposal would revise the 

procedure for issuing additional 

allotment base by reducing the number 

of additional allotment bases issued to 

new producers from three to two, for 

each class of spearmint oil. In addition, 

this action would increase the required 

retention period prior to transferability 

of additional allotment base issued to 

new producers from two years to five 

years following issuance. 

This proposal would also temporarily 

change the procedures for the allocation 

of additional allotment base by class to 

take into account existing producers 

that are below the MEE threshold. This 

revision is intended to help existing 

small spearmint oil producers by 

increasing their individual allotment 

bases to a level that approximates the 

MEE required for spearmint oil 

production. The action would help 

ensure that small existing spearmint oil 

producers have sufficient allotment base 

to remain economically viable in the 

future. Also, this proposal would 

provide that additional allotment base 

issued to existing small producers could 

not be used to replace allotment base 

which has been previously transferred 

away. Finally, this action would provide 

that additional allotment base issued 

under the revised procedure could not 

be transferred for at least five years 

following issuance. The proposed 

procedure revising the method by which 

additional allotment base is allocated to 

existing producers would be in effect 

temporarily through May 31, 2017, for 

Scotch spearmint oil, and May 31, 2018, 

for Native spearmint oil, or until all 

producers who are eligible and apply 

have received enough allotment base to 

bring them up to the respective MEE 

level for each class of oil. Authority for 

this action is provided in § 985.53(d)(3) 

of the order. 

At the meeting on November 6, 2013, 

the Committee discussed the impact of 

the proposed revisions on handlers and 

producers in terms of costs and returns. 

Under the order, the Committee is 

responsible for determining the size of 

the MEE required to produce each class 

of spearmint oil. The Committee 

determined the MEE size for the 2014– 

2015 and subsequent marketing years to 

be 5,121 pounds for Scotch spearmint 

oil and 5,812 pounds for Native 

spearmint oil. Taking this information 

into consideration, the Committee 

calculated that the number of new 

producers issued additional allotment 

bases each year would need to be 

reduced from three to two for each class 

of oil. While this action would reduce 

the number of new producers issued 

additional allotment bases each year, 

each new producer would have a larger 

initial allotment base, thereby 

enhancing their long term economic 

viability in the spearmint oil industry. 

Additionally, the Committee 

estimates there are 21 producers of 

Scotch spearmint oil whose allotment 

bases are below the MEE threshold and 

it would take a total of 21,913 pounds 

of additional allotment base to raise 

these producers’ allotment bases up to 

the Scotch spearmint oil MEE threshold. 

Likewise, the Committee estimates there 

are also 30 producers of Native 

spearmint oil whose allotment bases are 

below the MEE level, and it would take 

a total of 43,456 pounds of additional 

allotment base to raise these producers’ 

allotment bases to the size of the MEE 

required to produce Native spearmint 

oil. 

While the amount of additional 

allotment base necessary to bring all 

spearmint oil producers’ allotment bases 

up to the MEE threshold is a fraction of 

the total allotment base, the benefits of 

the proposed revision would be 

significant to these small producers, 

because it would improve their 

economic viability into the future. 

Without the revision, small spearmint 

oil producers are at a greater risk of not 

being able to continue to produce 

spearmint oil. Therefore, the benefits of 

this proposed rule are expected to be 

greater for small producers than for 

larger entities. 

The Committee discussed several 

alternatives to the recommendations 

contained in this proposed rule, 

including not making any changes to the 

procedures as currently prescribed in 

the order. However, the Committee 

determined that not taking the MEE 

threshold into consideration when 

issuing additional base would have 

negative impacts primarily affecting 

new and existing small producers. The 

Committee concluded that the most 

effective option was to revise the 

procedure for issuing additional 

allotment base in order to improve the 

economic viability of new and existing 

producers whose allotment bases are 

below the MEE threshold. 

The Committee also considered 

alternative MEE thresholds before 

deciding on the levels that were most 

representative of the production 

economics for each class of spearmint 

oil. The Committee considers the size of 

the MEE for the production of each class 

of spearmint oil is accurate and 

appropriate given the information 

available. 

In addition, the Committee 

considered the length of time that new 

and existing producers should be 

expected to hold onto additional 

allotment base issued under the 

proposed revised procedure before such 

allotment base could be transferred. The 

Committee considered other retention 


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periods other than the proposed five 

years, including maintaining the current 

two year retention period. However, it 

concluded that a five year retention 

requirement prior to transfer of 

additional allotment base issued under 

the proposed revised procedure was a 

sufficient period for new and existing 

producers to demonstrate viability in 

spearmint oil production and should 

not present an undue hardship on the 

producers being issued the additional 

allotment base. 

In its deliberations, the Committee 

considered all available information, 

including its determination of the size 

of the MEE required for spearmint oil 

production, historical statistics relating 

to the locations of the producers 

applying for the annual additional 

allotment base, and other factors such as 

the number of producers in the 

regulated production area and the 

amount of allotment base held by such 

producers. Based on those 

determinations, the full eight-member 

Committee unanimously recommended 

revising the procedure for issuing 

additional allotment base to new and 

existing spearmint oil producers, for 

each class of oil, as proposed herein. 

In accordance with the Paperwork 

Reduction Act of 1995 (44 U.S.C. 

Chapter 35), the order’s information 

collection requirements is currently 

approved by the Office of Management 

and Budget (OMB) and assigned OMB 

No. 0581–0178, Generic Vegetable and 

Specialty Crops. Upon publication of 

the final rule, we will submit a 

Justification of Change to make minor 

modifications changing the appearance 

of two forms and adjusting the burden, 

accordingly. 

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. 

USDA has not identified any relevant 

Federal rules that duplicate, overlap or 

conflict with this proposed rule. 

In addition, the Committee meetings 

were widely publicized throughout the 

spearmint oil industry and all interested 

persons were invited to attend the 

meetings and participate in Committee 

deliberations on all issues. Like all 

Committee meetings, the March 6, 2013, 

and the November 6, 2013, meetings 

were public meetings and all entities, 

both large and small, were able to 

express views on this issue. Finally, 

interested persons are invited to submit 

comments on this proposed rule, 

including 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. 

A 15-day comment period is provided 

to allow interested persons to respond 

to this proposal. Fifteen days is deemed 

appropriate because: (1) The 2014–2015 

fiscal period begins on June 1, 2014; (2) 

affected spearmint oil producers need to 

be informed as soon as possible of any 

changes in base allotment allocation in 

order to plan their plantings 

accordingly; and (3) spearmint oil 

producers are aware of this action, 

which was unanimously recommended 

by the Committee at a public meeting 

and is similar to previous actions 

recommended by the Committee and 

approved by the Secretary. 

List of Subjects in 7 CFR Part 985 

Marketing agreements, Oils and fats, 

Reporting and recordkeeping 

requirements, Spearmint oil. 

For the reasons set forth in the 

preamble, 7 CFR part 985 is proposed to 

be amended as follows: 

PART 985—MARKETING ORDER 

REGULATING THE HANDLING OF 

SPEARMINT OIL PRODUCED IN THE 

FAR WEST 

■ 1. The authority citation for 7 CFR 

part 985 continues to read as follows: 

Authority: 7 U.S.C. 601–674. 

■ 2. In § 985.153, redesignate and revise 

paragraphs (c)(1)(ii) as (c)(1)(iii) and 

(c)(2)(ii) as (c)(2)(iv), add new 

paragraphs (c)(1)(ii), (c)(2)(ii) and 

(c)(2)(iii), and revise paragraph (d) to 

read as follows: 

§ 985.153 Issuance of additional allotment 

base to new and existing producers. 

* * * * * 

(c) * * * 

(1) * * * 

(ii) The Committee shall review all 

requests from new producers for 

additional allotment base made 

available pursuant to § 985.53(d)(1). 

(iii) Each year, the Committee shall 

determine the size of the minimum 

economic enterprise required to 

produce each class of oil. The 

Committee shall thereafter calculate the 

number of new producers who will 

receive allotment base under this 

section for each class of oil. The 

Committee shall include that 

information in its announcements to 

new producers in each region informing 

them when to submit requests for 

allotment base. The Committee shall 

determine whether the new producers 

requesting additional base have the 

ability to produce spearmint oil. The 

names of all eligible new producers 

from each region shall be placed in 

separate lots per class of oil. For each 

class of oil, separate drawings shall be 

held from a list of all applicants from 

Region A and from a list of all 

applicants from Region B. If, in any 

marketing year, there are no requests for 

additional base in a class of oil from 

eligible new producers in a region, such 

unallocated additional allotment base 

shall be issued to an eligible new 

producer whose name is selected by 

drawing from a list containing the 

names of all remaining eligible new 

producers from the other region for that 

class of oil. The Committee shall 

immediately notify each new producer 

whose name was drawn and issue that 

producer an allotment base in the 

appropriate amount. Allotment base 

issued to new producers under this 

section shall not be transferred for at 

least five years following issuance. 

(2) * * * 

(ii) Class 1 base. With respect to the 

issuance of additional Class 1 allotment 

base to existing producers for the 2014– 

2015 through the 2016–2017 marketing 

years, existing producers with less than 

5,121 pounds of allotment base as of 

October 17, 2012, who request 

additional allotment base and who have 

the ability to produce additional 

quantities of Class 1 spearmint oil, shall 

be issued additional allotment base 

sufficient to bring them up to a level not 

to exceed 5,121 pounds: Provided, That 

such additional Class 1 allotment base 

shall be allocated to eligible producers 

on a pro-rata basis from available 

additional Class 1 allotment base: 

Provided further, That additional 

allotment base shall not be issued to any 

person if such additional allotment base 

would replace all or part of an allotment 

base that such person has previously 

transferred to another producer. 

Additional allotment base in excess of 

the amount needed to bring eligible 

producers up to 5,121 pounds of Class 

1 allotment base shall be distributed on 

a prorated basis among all existing 

producers who apply and who have the 

ability to produce additional quantities 

of spearmint oil. 

(iii) Class 3 base. With respect to the 

issuance of additional Class 3 allotment 

base for existing producers for the 2014– 

2015 through the 2017–2018 marketing 

years, existing producers with less than 


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Federal Register / Vol. 79, No. 87 / Tuesday, May 6, 2014 / Proposed Rules 25715 

5,812 pounds of allotment base as of 

October 17, 2012, who request 

additional allotment base and who have 

the ability to produce additional 

quantities of Class 3 spearmint oil, shall 

be issued additional allotment base 

sufficient to bring them up to a level not 

to exceed 5,812 pounds: Provided, That 

such additional Class 3 allotment base 

shall be allocated to eligible producers 

on a pro-rata basis from available 

additional Class 3 allotment base: 

Provided further, That additional 

allotment base shall not be issued to any 

person if such additional allotment base 

would replace all or part of an allotment 

base that such person has previously 

transferred to another producer. 

Additional allotment base in excess of 

the amount needed to bring eligible 

producers up to 5,812 pounds of Class 

3 allotment base shall be distributed on 

a prorated basis among all existing 

producers who apply and who have the 

ability to produce additional quantities 

of spearmint oil. 

(iv) For each marketing year after 

2016–2017 for Class 1 oil and 2017– 

2018 for Class 3 oil, each existing 

producer of a class of spearmint oil who 

requests additional allotment base, and 

who has the ability to produce 

additional quantities of that class of 

spearmint oil, shall be eligible to receive 

a share of the additional allotment base 

issued for that class of oil. Additional 

allotment base issued by the Committee 

for a class of oil shall be distributed on 

a prorated basis among the eligible 

producers for that class of oil. The 

Committee shall immediately notify 

each producer who is to receive 

additional allotment base by issuing that 

producer an allotment base in the 

appropriate amount. Allotment base 

issued to existing producers under this 

section shall not be transferred for at 

least two years following issuance, 

except that additional allotment base 

allocated pursuant to paragraph (c)(2)(ii) 

and (c)(2)(iii) of this section shall not be 

transferred for at least five years 

following issuance. 

(d) The person receiving additional 

allotment base pursuant to this section 

shall submit to the Committee evidence 

of an ability to produce and sell oil from 

such allotment base in the first 

marketing year following issuance of 

such base. 

Dated: April 29, 2014. 

Rex A. Barnes, 

Associate Administrator, Agricultural 

Marketing Service. 

[FR Doc. 2014–10132 Filed 5–5–14; 8:45 am] 

BILLING CODE P 

NUCLEAR REGULATORY 

COMMISSION 

10 CFR Part 52 

[NRC–2010–0135] 

RIN 3150–AI85 

ESBWR Design Certification 

AGENCY: Nuclear Regulatory 

Commission. 

ACTION: Supplemental proposed rule. 

SUMMARY: The U.S. Nuclear Regulatory 

Commission (NRC) is proposing to 

amend its regulations to certify the 

Economic Simplified Boiling-Water 

Reactor (ESBWR) standard plant design. 

The proposed ESBWR design 

certification rule was published for 

public comment on March 24, 2011. The 

NRC is publishing this supplemental 

proposed rule to provide an opportunity 

for the public to comment on two 

matters. The first is proposed changes 

related to the analysis methodology 

supporting the ESBWR steam dryer 

design that were made after the close of 

the public comment period for the 

proposed ESBWR design certification 

rule. The second is the NRC’s proposed 

clarification of its intent to treat 50 

referenced documents within Revision 

10 of the ESBWR design control 

document (DCD) as requirements and 

matters resolved in subsequent licensing 

and enforcement actions for plants 

referencing the ESBWR design 

certification. In addition, the 

supplemental proposed rule clarifies 

that the NRC intends to obtain approval 

for incorporation by reference from the 

Director of the Office of the Federal 

Register for the generic DCD and 20 

publicly-available documents that are 

referenced in the DCD that are intended 

by the NRC to be requirements. The 

supplemental proposed rule does not 

offer an opportunity for public comment 

on this clarification of the NRC’s intent. 

Finally, the supplemental proposed rule 

updates the version of the DCD (from 

Revision 9 to Revision 10) which the 

NRC proposes to obtain approval for 

incorporation by reference from the 

Office of the Federal Register. Revision 

10 of the DCD was needed to address 

the previously described matters. The 

applicant for certification of the ESBWR 

design is GE-Hitachi Nuclear Energy 

(GEH). 

DATES: Submit comments by June 5, 

2014. The NRC will not address any 

comments received after this date, 

except as discussed in Section I.B of the 

SUPPLEMENTARY INFORMATION section of 

this document. 

ADDRESSES: You may submit comments 

by any of the following methods (unless 

this document describes a different 

method for submitting comments on a 

specific subject): 

• Federal rulemaking Web site: Go to 

http://www.regulations.gov and search 

for Docket ID NRC–2010–0135. Address 

questions about NRC dockets to Carol 

Gallagher; telephone: 301–287–3422; 

email: Carol.Gallagher@nrc.gov. For 

technical questions contact the 

individuals listed in the FOR FURTHER

INFORMATION CONTACT section of this 

proposed rule. 

• Email comments to: 

Rulemaking.Comments@nrc.gov. If you 

do not receive an automatic email reply 

confirming receipt, then contact us at 

301–415–1677. 

• Fax comments to: Secretary, U.S. 

Nuclear Regulatory Commission at 301– 

415–1101. 

• Mail comments to: Secretary, U.S. 

Nuclear Regulatory Commission, 

Washington, DC 20555–0001, ATTN: 

Rulemakings and Adjudications Staff. 

• Hand deliver comments to: 11555 

Rockville Pike, Rockville, Maryland 

20852, between 7:30 a.m. and 4:15 p.m. 

(Eastern Time) Federal workdays; 

telephone: 301–415–1677. 

For additional direction on obtaining 

information and submitting comments, 

see ‘‘Obtaining Information and 

Submitting Comments’’ in the 

SUPPLEMENTARY INFORMATION section of 

this document. 

FOR FURTHER INFORMATION CONTACT: 

George M. Tartal, telephone: 301–415– 

0016, email: George.Tartal@nrc.gov; or 

David Misenhimer, telephone: 301–415– 

6590, email: David.Misenhimer@

nrc.gov. Both of the Office of New 

Reactors, U.S. Nuclear Regulatory 

Commission, Washington DC 20555– 

0001. 

SUPPLEMENTARY INFORMATION: 

Table of Contents 

I. Obtaining Information and Submitting 

Comments 

A. Obtaining Information 

1. Documents Related To Changes 

Associated With the Analysis 

Methodology Supporting the ESBWR 

Steam Dryer Design 

2. 50 Non-Public Documents Which the 

NRC Regards As Requirements and Are 

Matters Resolved 

B. Additional Information on Submitting 

Comments 

II. Background 

III. Discussion 

A. ESBWR Steam Dryer Design 

1. Correction of Information Related to the 

Steam Dryer Design 

2. Designation of Revised Steam Dryer 

Analysis Methodology as Tier 2* 


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