Federal Register / Vol. 70, No. 184 / Friday, September 23, 2005 / Rules and Regulations 55713 

Based on Committee data, there are 8 

producers and 8 handlers in the 

production area subject to regulation 

under the order. Small agricultural 

producers are defined by the Small 

Business Administration (13 CFR 

121.201) as those having annual receipts 

of less than $750,000, and small 

agricultural service firms are defined as 

those whose annual receipts are less 

than $6,000,000. 

Based on the total number of Colorado 

Area No. 3 potato producers (8), 2003 

fresh potato production of 1,041,958 

hundredweight (Committee records), 

and the average 2003 producer price of 

$5.05 per hundredweight as reported by 

National Agricultural Statistics Service 

(NASS), average annual revenue per 

producer from the sale of potatoes can 

be estimated at approximately $657,736. 

In addition, based on Committee records 

and an estimated average 2003 f.o.b. 

price of $7.15 per hundredweight ($5.05 

per hundredweight NASS producer 

price plus Committee estimated packing 

and handling costs of $2.10 per 

hundredweight), all of the Colorado 

Area No. 3 potato handlers ship under 

$6,000,000 worth of potatoes. In view of 

the foregoing, it can be concluded that 

the majority of the Colorado Area No. 3 

potato producers and handlers may be 

classified as small entities. 

This rule continues in effect the 

action that decreased the assessment 

rate established for the Committee and 

collected from handlers for the 2005–

2006 and subsequent fiscal periods from 

$0.03 to $0.02 per hundredweight of 

potatoes. The assessment rate of $0.02 is 

$0.01 less than the 2004–2005 rate. The 

quantity of assessable potatoes for the 

2005–2006 fiscal period is estimated at 

585,475 hundredweight. Income derived 

from handler assessments, along with 

interest income and funds from the 

Committee’s authorized reserve, will be 

adequate to cover budgeted expenses. 

Funds in the reserve ($42,701 as of July 

1, 2005) will be kept within the 

maximum of approximately two fiscal 

periods’ operational expenses as 

authorized by the order (§ 948.78). 

The major expenditures 

recommended by the Committee for the 

2005–2006 fiscal period include $8,610 

for salary, $3,000 for office rent, $1,750 

for office expenses, and $1,000 for 

utilities. These budgeted expenses are 

the same as those approved for the 

2004–2005 fiscal period. 

Due to increased potato yields and a 

reduction in expenses, the Committee’s 

reserve has increased more than 

anticipated. Therefore, the Committee 

recommended a decreased assessment 

rate to enable an increased draw on the 

reserve, thus maintaining the level of 

the reserve within program limits of 

approximately two fiscal periods’

operational expenses. 

The Committee discussed alternatives 

to this rule, including alternative 

expenditure levels, but determined that 

the recommended expenses were 

reasonable and necessary to adequately 

cover program operations. Lower 

assessment rates were considered, but 

not recommended because they would 

not generate the income necessary to 

administer the program. 

A review of historical information and 

preliminary information pertaining to 

the current crop year indicates that the 

producer price for the 2005–2006 season 

could range between $5.05 and $7.75 

per hundredweight. Therefore, the 

estimated assessment revenue for the 

2005–2006 fiscal period as a percentage 

of total producer revenue could range 

between 0.40 and 0.26 percent. 

This action continues in effect the 

action that decreased the assessment 

obligation imposed on handlers. 

Assessments are applied uniformly on 

all handlers, and some of the costs may 

be passed on to producers. However, 

decreasing the assessment rate reduces 

the burden on handlers, and may reduce 

the burden on producers. In addition, 

the Committee’s meeting was widely 

publicized throughout the Colorado 

potato industry and all interested 

persons were invited to attend and 

participate in the Committee’s 

deliberations on all issues. Like all 

Committee meetings, the May 12, 2005, 

meeting was a public meeting and all 

entities, both large and small, were able 

to express views on these issues. 

This action imposes no additional 

reporting or recordkeeping requirements 

on either small or large Colorado potato 

handlers. As with all Federal marketing 

order programs, reports and forms are 

periodically reviewed to reduce 

information requirements and 

duplication by industry and public 

sector agencies. 

USDA has not identified any relevant 

Federal rules that duplicate, overlap, or 

conflict with this rule. 

An interim final rule concerning this 

action was published in the Federal 

Register on June 27, 2005 (70 FR 36814). 

Copies of that rule were also mailed or 

sent via facsimile to all Area No. 3 

Colorado potato handlers. Finally, the 

interim final rule was made available 

through the Internet by USDA and 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 August 26, 2005, and no 

comments were received. 

A small business guide on complying 

with fruit, vegetable, and specialty crop 

marketing agreements and orders may 

be viewed at: http://www.ama.usda.gov/ 

fv/moab.html. Any questions about the 

compliance guide should be sent to Jay 

Guerber at the previously mentioned 

address in the FOR FURTHER INFORMATION

CONTACT section. 

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 this rule, as hereinafter set forth, 

will tend to effectuate the declared 

policy of the Act. 

List of Subjects in 7 CFR Part 948 

Marketing agreements, Potatoes, 

Reporting and recordkeeping 

requirements. 

PART 948—IRISH POTATOES GROWN 

IN COLORADO 

■ Accordingly, the interim final rule 

amending 7 CFR part 948 which was 

published at 70 FR 36814 on June 27, 

2005, is adopted as a final rule without 

change. 

Dated: September 19, 2005. 

Lloyd C. Day, 

Administrator, Agricultural Marketing 

Service. 

[FR Doc. 05–18990 Filed 9–22–05; 8:45 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 985 

[Docket No. FV05–985–2 IFR] 

Marketing Order Regulating the 

Handling of Spearmint Oil Produced in 

the Far West; Revision of the Salable 

Quantity and Allotment Percentage for 

Class 1 (Scotch) and Class 3 (Native) 

Spearmint Oil for the 2005–2006 

Marketing Year 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Interim final rule with request 

for comments. 

SUMMARY: This rule revises the quantity 

of Class 1 (Scotch) and Class 3 (Native) 

spearmint oil that handlers may 

purchase from, or handle for, producers 

during the 2005–2006 marketing year. 

This rule increases the Scotch spearmint 

oil salable quantity from 677,409 

pounds to 1,062,898 pounds, and the 

allotment percentage from 35 percent to 

55 percent. In addition, this rule 

55714 Federal Register / Vol. 70, No. 184 / Friday, September 23, 2005 / Rules and Regulations 

increases the Native spearmint oil 

salable quantity from 867,958 pounds to 

1,019,600 pounds, and the allotment 

percentage from 40 percent to 47 

percent. The order regulates the 

handling of spearmint oil produced in 

the Far West and is administered locally 

by the Spearmint Oil Administrative 

Committee (Committee). The Committee 

recommended this rule for the purpose 

of avoiding extreme fluctuations in 

supplies and prices and to help 

maintain stability in the Far West 

spearmint oil market. 

DATES: Effective June 1, 2005, through 

May 31, 2006; comments received by 

November 22, 2005 will be considered 

prior to issuance of a final rule. 

ADDRESSES: Interested persons are 

invited to submit written comments 

concerning this rule. Comments must be 

sent to the Docket Clerk, Marketing 

Order Administration Branch, Fruit and 

Vegetable Programs, AMS, USDA, 1400 

Independence Avenue SW., STOP 0237, 

Washington, DC 20250–0237; Fax: (202) 

720–8938; E-mail: 

moab.docketclerk@usda.gov; or Internet: 

http://www.regulations.gov. 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, or 

can be viewed at: http:// 

www.ams.usda.gov/fv/moab.html. 

FOR FURTHER INFORMATION CONTACT: 

Susan M. Hiller, Northwest Marketing 

Field Office, Marketing Order 

Administration Branch, Fruit and 

Vegetable Programs, AMS, USDA; 

Telephone: (503) 326–2724, Fax: (503) 

326–7440; or George Kelhart, Technical 

Advisor, Marketing Order 

Administration Branch, Fruit and 

Vegetable Programs, AMS, USDA, 1400 

Independence Avenue SW., STOP 0237, 

Washington, DC 20250–0237; 

Telephone: (202) 720–2491, Fax: (202) 

720–8938. 

Small businesses may request 

information on complying with this 

regulation by contacting Jay Guerber, 

Marketing Order Administration 

Branch, Fruit and Vegetable Programs, 

AMS, USDA, 1400 Independence 

Avenue SW., STOP 0237, Washington, 

DC 20250–0237; Telephone: (202) 720–

2491, Fax: (202) 720–8938, or E-mail: 

Jay.Guerber@usda.gov. 

SUPPLEMENTARY INFORMATION: This rule 

is issued under Marketing Order No. 

985 (7 CFR part 985), as amended, 

regulating the handling of spearmint oil 

produced in the Far West (Washington, 

Idaho, Oregon, and designated parts of 

Nevada and Utah), hereinafter referred 

to as the ‘‘order.’’ The order is effective 

under the Agricultural Marketing 

Agreement Act of 1937, as amended (7 

U.S.C. 601–674), hereinafter referred to 

as the ‘‘Act.’’

The Department of Agriculture 

(USDA) is issuing this rule in 

conformance with Executive Order 

12866. 

This rule has been reviewed under 

Executive Order 12988, Civil Justice 

Reform. This rule is not intended to 

have retroactive effect. 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 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. 

The initial salable quantity and 

allotment percentages for Scotch and 

Native spearmint oil for the 2005–2006 

marketing year were recommended by 

the Committee at its October 6, 2004, 

meeting. The Committee recommended 

salable quantities of 677,409 pounds 

and 867,958 pounds, and allotment 

percentages of 35 percent and 40 

percent, respectively, for Scotch and 

Native spearmint oil. A proposed rule 

was published in the Federal Register 

on January 12, 2005 (70 FR 2027). 

Comments on the proposed rule were 

solicited from interested persons until 

February 11, 2005. No comments were 

received. Subsequently, a final rule 

establishing the salable quantities and 

allotment percentages for Scotch and 

Native spearmint oil for the 2005–2006 

marketing year was published in the 

Federal Register on March 24, 2005 (70 

FR 14969). 

This rule revises the quantity of 

Scotch and Native spearmint oil that 

handlers may purchase from, or handle 

for, producers during the 2005–2006 

marketing year, which ends on May 31, 

2006. Pursuant to authority contained in 

§§ 985.50, 985.51, and 985.52 of the 

order, the Committee met on August 24, 

2005, and in two separate motions, 

recommended that the 2005–2006 

Scotch and Native spearmint oil 

allotment percentages be increased by 

20 percent and 7 percent, respectively. 

With seven of the eight members 

present at the meeting, each of the 

recommendations passed with six 

members in favor and one member 

opposed. In both cases, the members 

opposing the recommendations favored 

larger increases. 

Thus, taking into consideration the 

following discussion on adjustments to 

the Scotch and Native spearmint oil 

salable quantities, this rule increases the 

2005–2006 marketing year salable 

quantities and allotment percentages for 

Scotch and Native spearmint oil to 

1,062,898 pounds and 55 percent, and 

1,019,600 pounds and 47 percent, 

respectively. 

The salable quantity is the total 

quantity of each class of oil that 

handlers may purchase from, or handle 

for, producers during the marketing 

year. 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 original total industry allotment 

base for Scotch spearmint oil for the 

2005–2006 marketing year was 

established at 1,935,455 pounds and 

was revised at the beginning of the 

2005–2006 marketing year to 1,932,542 

pounds to reflect a 2004–2005 

marketing year loss of 2,913 pounds of 

base due to non-production of some 

producers’ total annual allotments. 

When the revised total allotment base of 

1,932,455 pounds is applied to the 

originally established allotment 

percentage of 35 percent, the 2005–2006 

marketing year salable quantity of 

677,409 is effectively modified to 

676,390 pounds. 

The same situation applies to Native 

spearmint oil where the original total 

industry allotment base for the 2005–

2006 marketing year was established at 

2,169,894 pounds and was revised at the 

beginning of the 2005–2006 marketing 

year to 2,169,362 pounds to reflect a 

2004–2005 marketing year loss of 532 

pounds of base due to non-production 

of some producers’ total annual 

allotments. When the revised total 

allotment base of 2,169,362 pounds is 

applied to the originally established 

allotment percentage of 40 percent, the 

2005–2006 marketing year salable 

quantity of 867,958 is effectively 

modified to 867,745 pounds. 

Federal Register / Vol. 70, No. 184 / Friday, September 23, 2005 / Rules and Regulations 55715 

By increasing the salable quantity and 

allotment percentage, this rule makes an 

additional amount of Scotch and Native 

spearmint oil available by releasing oil 

from the reserve pool. When applied to 

each individual producer, the allotment 

percentage increases allow each 

producer to take up to an amount equal 

to their allotment base from their 

reserve for each respective class of oil. 

Before November 1, 2005, a producer 

may also transfer excess oil to another 

producer to enable that producer to fill 

a deficiency in that producer’s annual 

allotment for that class of oil. 

The following tables summarize the 

Committee recommendations: 

Scotch Spearmint Oil Recommendation 

(A) Estimated 2005–2006 Allotment 

Base—1,935,455 pounds. This is the 

estimate on which the original 2005–

2006 Scotch spearmint oil salable 

quantity and allotment percentage was 

based. 

(B) Revised 2005–2006 Allotment 

Base—1,932,542 pounds. This is 2,913 

pounds less than the estimated 

allotment base of 1,935,455 pounds. 

This is less because some producers 

failed to produce all of their 2004–2005 

allotment. 

(C) Initial 2005–2006 Allotment 

Percentage—35 percent. This was 

recommended by the Committee on 

October 6, 2004. 

(D) Initial 2005–2006 Salable 

Quantity—677,409. This figure is 35 

percent of 1,935,455 pounds. 

(E) Initial Adjustment to the 2005–

2006 Salable Quantity—676,390 

pounds. This figure reflects the salable 

quantity initially available after the 

beginning of the 2005–2006 marketing 

year due to the 2,913 pound reduction 

in the industry allotment base to 

1,932,542 pounds. 

(F) Increase in Allotment 

Percentage—20 percent. The Committee 

recommended a 20 percent increase at 

its August 24, 2005, meeting. 

(G) 2005–2006 Allotment 

Percentage—55 percent. This figure is 

derived by adding the increase of 20 

percent to the initial 2005–2006 

allotment percentage of 35 percent. 

(H) Calculated Revised 2005–2006 

Salable Quantity—1,062,898 pounds. 

This figure is 55 percent of the revised 

2005–2006 allotment base of 1,932,542 

pounds. 

(I) Computed Increase in the 2005–

2006 Salable Quantity—386,508 

pounds. This figure is 20 percent of the 

revised 2005–2006 allotment base of 

1,932,542 pounds. 

In making this recommendation, the 

Committee considered all available 

information on price, supply, and 

demand. The Committee also 

considered reports and other 

information from handlers and 

producers in attendance at the meeting 

and reports given by the Committee 

manager from handlers who were not in 

attendance. The 2005–2006 marketing 

year began on June 1, 2005. Handlers 

have reported purchases and committed 

sales of 682,547 pounds of Scotch 

spearmint oil for the period of June 1, 

2005, through August 24, 2005. This 

amount is 93 percent of the total sales 

for the five-year average of 736,991 

pounds. Handlers estimated the total 

demand for the 2005–2006 marketing 

year could be between 917,745 pounds 

to 937,745 pounds. These amounts 

exceed the five-year average for an 

entire marketing year by 180,754 

pounds to 200,754 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 Scotch spearmint oil salable 

quantity and allotment percentage for 

the 2005–2006 marketing year, it had 

anticipated that the year would end 

with an ample available supply. 

Native Spearmint Oil Recommendation 

(A) Estimated 2005–2006 Allotment 

Base—2,169,894 pounds. This is the 

estimate on which the original 2005–

2006 Native spearmint oil salable 

quantity and allotment percentage was 

based. 

(B) Revised 2005–2006 Allotment 

Base—2,169,362 pounds. This is 532 

pounds less than the estimated 

allotment base of 2,169,894 pounds. 

This is less because some producers 

failed to produce all of their 2004–2005 

allotment. 

(C) Initial 2005–2006 Allotment 

Percentage—40 percent. This was 

recommended by the Committee on 

October 6, 2004. 

(D) Initial 2005–2006 Salable 

Quantity—867,958. This figure is 40 

percent of 2,169,894 pounds. 

(E) Initial Adjustment to the 2005–

2006 Salable Quantity—867,745 

pounds. This figure reflects the salable 

quantity initially available after the 

beginning of the 2005–2006 marketing 

year due to the 532 pound reduction in 

the industry allotment base to 2,169,362 

pounds. 

(F) Increase in Allotment 

Percentage—7 percent. The Committee 

recommended a 7 percent increase at its 

August 24, 2005, meeting. 

(G) 2005–2006 Allotment 

Percentage—47 percent. This figure is 

derived by adding the increase of 7 

percent to the initial 2005–2006 

allotment percentage of 40 percent. 

(H) Calculated Revised 2005–2006 

Salable Quantity—1,019,600 pounds. 

This figure is 47 percent of the revised 

2005–2006 allotment base of 2,169,362 

pounds. 

(I) Computed Increase in the 2005–

2006 Salable Quantity—151,855 

pounds. This figure is 7 percent of the 

revised 2005–2006 allotment base of 

2,169,362 pounds. 

In making this recommendation, the 

Committee considered all available 

information on price, supply, and 

demand. The Committee also 

considered reports and other 

information from handlers and 

producers in attendance at the meeting 

and reports given by the Committee 

manager from handlers who were not in 

attendance. The 2005–2006 marketing 

year began on June 1, 2005. Handlers 

have reported purchases and committed 

sales of 742,221 pounds of Native 

spearmint oil for the period of June 1, 

2005, through August 24, 2005. This 

amount is 77 percent of the total sales 

for the five-year average of 962,377 

pounds. Handlers estimated the total 

demand for the 2005–2006 marketing 

year could be between 1,122,221 

pounds to 1,222,221 pounds. These 

amounts exceed the five-year average for 

an entire marketing year by 159,844 

pounds to 259,844 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 2005–2006 marketing year, it had 

anticipated that the year would end 

with an ample available supply. 

Based on its analysis of available 

information, USDA has determined that 

the salable quantity and allotment 

percentage for Scotch spearmint oil for 

the 2005–2006 marketing year should be 

increased to 1,062,898 pounds and 55 

percent, respectively. In addition, USDA 

has determined that the salable quantity 

and allotment percentage for Native 

spearmint oil for the 2005–2006 

marketing year should be increased to 

1,019,600 pounds and 47 percent, 

respectively. 

This rule relaxes the regulation of 

Scotch and Native spearmint oil and 

will allow for market needs and 

improve producer returns. In 

conjunction with the issuance of this 

rule, the Committee’s revised marketing 

policy statement for the 2005–2006 

marketing year has been reviewed by 

USDA. The Committee’s marketing 

policy statement, a requirement 

55716 Federal Register / Vol. 70, No. 184 / Friday, September 23, 2005 / Rules and Regulations 

whenever the Committee recommends 

implementing volume regulations or 

recommends revisions to existing 

volume regulations, meets the intent of 

§ 985.50 of the order. During its 

discussion of revising the 2005–2006 

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 USDA’s ‘‘Guidelines 

for Fruit, Vegetable, and Specialty Crop 

Marketing Orders’’ has also been 

reviewed and confirmed. 

The increases in the Scotch and 

Native spearmint oil salable quantities 

and allotment percentages allows for 

anticipated market needs for both 

classes of oil. In determining anticipated 

market needs, consideration by the 

Committee was given to historical sales, 

and changes and trends in production 

and demand. 

Initial Regulatory Flexibility Analysis 

Pursuant to requirements set forth in 

the Regulatory Flexibility Act (RFA), the 

Agricultural Marketing Service (AMS) 

has considered the economic impact of 

this action on small entities. 

Accordingly, AMS has prepared this 

initial regulatory flexibility analysis. 

The purpose of the RFA is to fit 

regulatory actions to the scale of 

business subject to such actions in order 

that small businesses will not be unduly 

or disproportionately burdened. 

Marketing orders issued pursuant to the 

Act, and the 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 eight spearmint oil handlers 

subject to regulation under the order, 

and approximately 56 producers of 

Scotch spearmint oil and approximately 

88 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 $6,000,000, 

and small agricultural producers are 

defined as those having annual receipts 

of less than $750,000. 

Based on the SBA’s definition of 

small entities, the Committee estimates 

that 2 of the 8 handlers regulated by the 

order could be considered small 

entities. Most of the handlers are large 

corporations involved in the 

international trading of essential oils 

and the products of essential oils. In 

addition, the Committee estimates that 

14 of the 56 Scotch spearmint oil 

producers and 18 of the 88 Native 

spearmint oil producers could 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. 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 for weed, insect, and disease 

control. To remain economically viable 

with the added costs associated with 

spearmint oil production, most 

spearmint oil-producing 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 to market fluctuations. 

Such small producers generally need to 

market their entire annual crop and do 

not have the luxury of having other 

crops to cushion seasons with poor 

spearmint oil returns. Conversely, large 

diversified producers have the potential 

to endure one or more seasons of poor 

spearmint oil markets because income 

from alternate crops could support the 

operation for a period of time. Being 

reasonably assured of a stable price and 

market provides small producing 

entities with the ability to maintain 

proper cash flow and to meet annual 

expenses. Thus, the market and price 

stability provided by the order 

potentially benefit the small producer 

more than such provisions benefit large 

producers. Even though a majority of 

handlers and producers of spearmint oil 

may not be classified as small entities, 

the volume control feature of this order 

has small entity orientation. 

This rule revises the quantity of 

Scotch and Native spearmint oil that 

handlers may purchase from, or handle 

for, producers during the 2005–2006 

marketing year, which ends on May 31, 

2006. This rule increases the Scotch 

spearmint oil salable quantity from 

677,409 pounds to 1,062,898 pounds, 

and the allotment percentage from 35 

percent to 55 percent. In addition, this 

rule increases the Native spearmint oil 

salable quantity from 867,958 pounds to 

1,019,600 pounds, and the allotment 

percentage from 40 percent to 47 

percent. 

An econometric model was used to 

assess the impact that volume control 

has on the prices producers receive for 

their commodity. Without volume 

control, spearmint oil markets would 

likely be over-supplied, resulting in low 

producer prices and a large volume of 

oil stored and carried over to the next 

crop year. The model estimates how 

much lower producer prices would 

likely be in the absence of volume 

controls. 

The recommended allotment 

percentages, upon which 2005–2006 

producer allotments are based, are 55 

percent for Scotch (a 20 percentage 

point increase from the original 

allotment percentage of 35 percent) and 

47 percent for Native (a 7 percentage 

point increase from the original salable 

percentage of 40 percent). Without 

volume controls, producers would not 

be limited to these allotment levels, and 

could produce and sell additional 

spearmint oil. The econometric model 

estimated a $1.38 decline in the season 

average producer price per pound (from 

both classes of spearmint oil) resulting 

from the higher quantities that would be 

produced and marketed if volume 

controls were not used (i.e., if the 

salable percentages were set at 100 

percent). 

Loosening the volume control 

restriction by increasing the allotment 

percentages resulted in this revised 

price decline estimate of $1.38 per 

pound if volume controls were not used. 

A previous price decline estimate of 

$1.60 per pound was based on the 

2005–2006 allotment percentages (35 

percent for Scotch and 40 percent for 

Native) published in the Federal 

Register on March 24, 2005 (70 FR 

14969). The 2004 Far West producer 

price for both classes of spearmint oil 

was $9.48 per pound. 

The surplus situation for the 

spearmint oil market that would exist 

without volume controls in 2005–2006 

also would likely dampen prospects for 

improved producer prices in future 

years because of the buildup in stocks. 

Federal Register / Vol. 70, No. 184 / Friday, September 23, 2005 / Rules and Regulations 55717 

1 16 U.S.C. 825d(b). 

2 18 CFR part 45. 

The use of volume controls allows the 

industry to fully supply spearmint oil 

markets while avoiding the negative 

consequences of over-supplying these 

markets. The use of volume controls is 

believed to have little or no effect on 

consumer prices of products containing 

spearmint oil and will not result in 

fewer retail sales of such products. 

Based on projections available at the 

meeting, the Committee considered 

alternatives to the increases. The 

Committee not only considered leaving 

the salable quantity and allotment 

percentage unchanged, but also looked 

at various increases ranging from 0 

percent to 100 percent. The Committee 

reached its recommendations to 

increase the salable quantity and 

allotment percentage for Scotch and 

Native spearmint oil after careful 

consideration of all available 

information, and believes that the levels 

recommended will achieve the 

objectives sought. Without the 

increases, the Committee believes the 

industry would not be able to meet 

market needs. 

This rule will not impose any 

additional reporting or recordkeeping 

requirements on either small or large 

spearmint oil handlers. As with all 

Federal marketing order programs, 

reports and forms are periodically 

reviewed to reduce information 

requirements and duplication by 

industry and public sector agencies. 

In addition, USDA has not identified 

any relevant Federal rules that 

duplicate, overlap or conflict with this 

rule. 

Further, the Committee’s meeting was 

widely publicized throughout the 

spearmint oil industry and all interested 

persons were invited to attend the 

meeting and participate in Committee 

deliberations. Like all Committee 

meetings, the August 24, 2005, meeting 

was a public meeting and all entities, 

both large and small, were able to 

express their views on this issue. 

Finally, interested persons are invited to 

submit information on the regulatory 

and informational impacts of this action 

on small businesses. 

A small business guide on complying 

with fruit, vegetable, and specialty crop 

marketing agreements and orders may 

be viewed at: http://www.ams.usda.gov/ 

fv/moab.html. Any questions about the 

compliance guide should be sent to Jay 

Guerber at the previously mentioned 

address in the FOR FURTHER INFORMATION

CONTACT section. 

This rule invites comments on a 

change to the salable quantities and 

allotment percentages for Scotch and 

Native spearmint oil for the 2005–2006 

marketing year. Any comments received 

will be considered prior to finalization 

of this rule. 

After consideration of all relevant 

material presented, including the 

Committee’s recommendation, and 

other information, it is found that this 

interim final rule, as hereinafter set 

forth, will tend to effectuate the 

declared policy of the Act. 

Pursuant to 5 U.S.C. 553, it is also 

found and determined upon good cause 

that it is impracticable, unnecessary, 

and contrary to the public interest to 

give preliminary notice prior to putting 

this rule into effect and that good cause 

exists for not postponing the effective 

date of this rule until 30 days after 

publication in the Federal Register 

because: (1) This rule increases the 

quantity of Scotch and Native spearmint 

oil that may be marketed during the 

marketing year which ends on May 31, 

2005; (2) the current quantity of Scotch 

and Native spearmint oil may be 

inadequate to meet demand for the 

remainder of the marketing year, thus 

making the additional oil available as 

soon as is practicable is beneficial to 

both handlers and producers; (3) the 

Committee recommended these changes 

at a public meeting and interested 

parties had an opportunity to provide 

input; and (4) this rule provides a 60- 

day comment period and any comments 

received will be considered prior to 

finalization of this rule. 

List of Subjects in 7 CFR Part 985 

Marketing agreements, Oils and fats, 

Reporting and recordkeeping 

requirements, Spearmint oil. 

■ For the reasons set forth in the 

preamble, 7 CFR part 985 is amended as 

follows: 

PART 985—MARKETING ORDER 

REGULATING THE HANDLING OF 

SPEARMINT OIL PRODUCED IN THE 

FAR WEST 

■ 1. The authority citation for 7 CFR 

part 985 continues to read as follows: 

Authority: 7 U.S.C. 601–674. 

■ 2. In § 985.224 paragraph (a) and (b) 

are revised to read as follows: 

Note: This section will not appear in the 

annual Code of Federal Regulations. 

§ 985.224 Salable quantities and allotment 

percentages—2005–2006 marketing year. 

* * * * * 

(a) Class 1 (Scotch) oil—a salable 

quantity of 1,062,898 pounds and an 

allotment percentage of 55 percent. 

(b) Class 3 (Native) oil—a salable 

quantity of 1,019,600 pounds and an 

allotment percentage of 47 percent. 

Dated: September 20, 2005. 

Lloyd C. Day, 

Administrator, Agricultural Marketing 

Service. 

[FR Doc. 05–19084 Filed 9–21–05; 9:55 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF ENERGY 

Federal Energy Regulatory 

Commission 

18 CFR Part 45 

[Docket No. RM05–6–000; Order No. 664] 

Commission Authorization To Hold 

Interlocking Positions 

September 16, 2005. 

AGENCY: Federal Energy Regulatory 

Commission. 

ACTION: Final rule. 

SUMMARY: The Federal Energy 

Regulatory Commission (Commission) is 

amending its regulations to clarify the 

time frame within which individuals 

must file applications for authorization 

to hold interlocking positions, and the 

information provided in certain 

informational reports required for 

automatic authorization of certain 

interlocking positions. 

EFFECTIVE DATE: The amended 

regulations will become effective 

October 24, 2005. 

FOR FURTHER INFORMATION CONTACT: 

James Akers (Technical Information), 

Office of Markets, Tariffs and Rates, 

Federal Energy Regulatory 

Commission, 888 First Street, NE., 

Washington, DC 20426, (202) 502–

8101. 

Melissa Mitchell (Legal Information), 

Office of the General Counsel, Federal 

Energy Regulatory Commission, 888 

First Street, NE., Washington, DC 

20426, (202) 502–6038. 

SUPPLEMENTARY INFORMATION: 

Before Commissioners: Joseph T. 

Kelliher, Chairman; Nora Mead 

Brownell, and Suedeen G. Kelly. 

1. In this final rule, to meet its 

responsibility under section 305(b) of 

the Federal Power Act (FPA),1 the 

Commission amends part 45 of its 

regulations 2 to clarify that individuals 

seeking Commission authorization to 

hold interlocking positions must obtain 

such authorization from the 

Commission prior to holding that 

interlocking position. The Commission 

also clarifies the regulations to define