Federal Register / Vol. 70, No. 234 / Wednesday, December 7, 2005 / Rules and Regulations 72713 

Impact on Current Wine Labels 

General 

Part 4 of the TTB regulations prohibits 

any label reference on a wine that 

indicates or implies an origin other than 

the wine’s true place of origin. With the 

adoption of this modification of the 

name for the Santa Rita Hills viticultural 

area, the abbreviated ‘‘Sta. Rita Hills’’

name will be recognized as a name of 

viticultural significance. Consequently, 

wine bottlers using ‘‘Sta. Rita Hills’’ in 

a brand name, including a trademark, or 

in another label reference as to the 

origin of the wine, will have to ensure 

that the product is eligible to use the 

viticultural area’s name as an 

appellation of origin. Accordingly, the 

amended regulatory text set forth below 

in § 9.162(a) specifies that ‘‘Sta. Rita 

Hills’’ is a term of viticultural 

significance for purposes of part 4 of the 

TTB regulations. 

For a wine to be eligible to use as an 

appellation of origin the name of a 

viticultural area specified in part 9 of 

the TTB regulations, at least 85 percent 

of the grapes used to make the wine 

must have been grown within the area 

represented by that name. If the wine is 

not eligible to use the viticultural area 

name as an appellation of origin and 

that name appears in the brand name, 

then the label is not in compliance and 

the bottler must change the brand name 

and obtain approval of a new label. 

Similarly, if the viticultural area name 

appears in another reference on the 

label in a misleading manner, the bottler 

would have to obtain approval of a new 

label. Accordingly, if a new label or a 

previously approved label uses the 

name ‘‘Sta. Rita Hills’’ for a wine that 

does not meet the 85 percent standard, 

the new label will not be approved, and 

the previously approved label will be 

subject to revocation. 

Different rules apply if a wine has a 

brand name containing a viticultural 

area name that was used as a brand 

name on a label approved before July 7, 

1986. See 27 CFR 4.39(i)(2) for details. 

Use of the Name ‘‘Santa Rita Hills’’

Since July 30, 2001, the name of this 

viticultural area has been expressed as 

‘‘Santa Rita Hills.’’ After the effective 

date of this final rule, we will approve 

wine labels showing ‘‘Sta. Rita Hills,’’

and not ‘‘Santa Rita Hills,’’ as the 

viticultural area appellation. 

The final rule includes, under our 

authority pursuant to 27 CFR 

13.72(a)(2), a transition period during 

which vintners may continue to use 

approved labels that carry ‘‘Santa Rita 

Hills’’ as the name of the viticultural 

area. However, one year after the 

effective date of that final rule, 

certificates of label approval showing 

‘‘Santa Rita Hills’’ as an appellation of 

origin will be revoked by operation of 

that final rule (see 27 CFR 13.51). We 

have added a statement to this effect as 

a new paragraph (d) in § 9.162. 

Regulatory Flexibility Act 

We certify that this regulation will not 

have a significant economic impact on 

a substantial number of small entities. 

This regulation imposes no new 

reporting, recordkeeping, or other 

administrative requirement. Any benefit 

derived from the use of a viticultural 

area name is the result of a proprietor’s 

efforts and consumer acceptance of 

wines from that area. Therefore, no 

regulatory flexibility analysis is 

required. 

Executive Order 12866 

This rule is not a significant 

regulatory action as defined by 

Executive Order 12866 (58 FR 51735). 

Therefore, it requires no regulatory 

assessment. 

Drafting Information 

Rita Butler of the Regulations and 

Rulings Division drafted this document. 

List of Subjects in 27 CFR Part 9 

Wine. 

The Regulatory Amendment 

■ For the reasons discussed in the 

preamble, we amend title 27, chapter 1, 

part 9, Code of Federal Regulations, as 

follows: 

PART 9—AMERICAN VITICULTURAL 

AREAS 

■ 1. The authority citation for part 9 

continues to read as follows: 

Authority: 27 U.S.C. 205. 

Subpart C—Approved American 

Viticultural Areas 

■ 2. In subpart C, amend § 9.162 by 

revising the section heading, revising 

paragraph (a) and the introductory text 

of paragraphs (b) and (c), and adding a 

new paragraph (d), to read as follows: 

§ 9.162 Sta. Rita Hills. 

(a) Name. The name of the viticultural 

area described in this section is ‘‘Sta. 

Rita Hills’’. For purposes of part 4 of 

this chapter, ‘‘Sta. Rita Hills’’ is a term 

of viticultural significance. 

(b) Approved Maps. The appropriate 

maps for determining the boundary of 

the Sta. Rita Hills viticultural area are 

five United States Geological Survey 

(USGS) 7.5 Minute Series maps titled: 

* * * * * 

(c) Boundary. The Sta. Rita Hills 

viticultural area is located in Santa 

Barbara County, California. The 

boundary is as follows: 

* * * * * 

(d) From July 30, 2001, until January 

5, 2006, this viticultural area was named 

‘‘Santa Rita Hills’’. Effective January 6, 

2006, the name of this viticultural area 

is ‘‘Sta. Rita Hills’’. Existing certificates 

of label approval showing ‘‘Santa Rita 

Hills’’ as the appellation of origin are 

revoked by operation of this regulation 

on January 6, 2007. 

Signed: August 25, 2005. 

John J. Manfreda, 

Administrator. 

Approved: November 3, 2005. 

Timothy E. Skud, 

Deputy Assistant Secretary (Tax, Trade, and 

Tariff Policy). 

[FR Doc. 05–23682 Filed 12–6–05; 8:45 am] 

BILLING CODE 4810–31–P 

DEPARTMENT OF THE TREASURY 

Alcohol and Tobacco Tax and Trade 

Bureau 

27 CFR Part 9 

[T.D. TTB–38; Re: Notice No. 25] 

RIN 1513–AA77 

Establishment of the Texoma 

Viticultural Area (2003R–110P) 

AGENCY: Alcohol and Tobacco Tax and 

Trade Bureau, Treasury. 

ACTION: Final rule; Treasury decision. 

SUMMARY: This Treasury decision 

establishes the Texoma viticultural area 

in north-central Texas, in Montague, 

Cooke, Grayson, and Fannin Counties. 

The proposed area covers approximately 

3,650 square miles on the south side of 

Lake Texoma and the Red River, along 

the Texas-Oklahoma Stateline. We 

designate viticultural areas to allow 

vintners to better describe the origin of 

their wines and to allow consumers to 

better identify wines they may 

purchase. 

EFFECTIVE DATE: January 6, 2006. 

FOR FURTHER INFORMATION CONTACT: 

Jennifer Berry, Alcohol and Tobacco 

Tax and Trade Bureau, Regulations and 

Rulings Division, P.O. Box 18152, 

Roanoke, VA 24014; telephone 540–

344–9333. 

SUPPLEMENTARY INFORMATION: 

72714 Federal Register / Vol. 70, No. 234 / Wednesday, December 7, 2005 / Rules and Regulations 

Background on Viticultural Areas 

TTB Authority 

Section 105(e) of the Federal Alcohol 

Administration Act (the FAA Act, 27 

U.S.C. 201 et seq.) requires that alcohol 

beverage labels provide the consumer 

with adequate information regarding a 

product’s identity and prohibits the use 

of misleading information on such 

labels. The FAA Act also authorizes the 

Secretary of the Treasury to issue 

regulations to carry out its provisions. 

The Alcohol and Tobacco Tax and 

Trade Bureau (TTB) administers these 

regulations. 

Part 4 of the TTB regulations (27 CFR 

part 4) allows the establishment of 

definitive viticultural areas and the use 

of their names as appellations of origin 

on wine labels and in wine 

advertisements. Part 9 of the TTB 

regulations (27 CFR part 9) contains the 

list of approved viticultural areas. 

Definition 

Section 4.25(e)(1)(i) of the TTB 

regulations (27 CFR 4.25(e)(1)(i)) defines 

a viticultural area for American wine as 

a delimited grape-growing region 

distinguishable by geographical 

features, the boundaries of which have 

been recognized and defined in part 9 

of the regulations. These designations 

allow vintners and consumers to 

attribute a given quality, reputation, or 

other characteristic of a wine made from 

grapes grown in an area to its 

geographic origin. The establishment of 

viticultural areas allows vintners to 

describe more accurately the origin of 

their wines to consumers and helps 

consumers to identify wines they may 

purchase. Establishment of a viticultural 

area is neither an approval nor an 

endorsement by TTB of the wine 

produced in that area. 

Requirements 

Section 4.25(e)(2) of the TTB 

regulations outlines the procedure for 

proposing an American viticultural area 

and provides that any interested party 

may petition TTB to establish a grapegrowing region as a viticultural area. 

Section 9.3(b) of the TTB regulations 

requires the petition to include—

• Evidence that the proposed 

viticultural area is locally and/or 

nationally known by the name specified 

in the petition; 

• Historical or current evidence that 

supports setting the boundary of the 

proposed viticultural area as the 

petition specifies; 

• Evidence relating to the 

geographical features, such as climate, 

soils, elevation, and physical features, 

that distinguish the proposed 

viticultural area from surrounding areas; 

• A description of the specific 

boundary of the proposed viticultural 

area, based on features found on United 

States Geological Survey (USGS) maps; 

and 

• A copy of the appropriate USGS 

map(s) with the proposed viticultural 

area’s boundary prominently marked. 

Texoma Petition and Rulemaking 

General Background 

The Texoma Appellation Committee, 

in Denison, Texas, petitioned TTB to 

establish the ‘‘Texoma’’ viticultural area 

in north-central Texas. Located along 

the Texas-Oklahoma Stateline on the 

south side of Lake Texoma and the Red 

River, the proposed area covers 

approximately 3,650 square miles, or 

about 2.3 million acres, in Montague, 

Cooke, Grayson, and Fannin Counties. 

The proposed viticultural area contains 

four wineries and a number of small 

vineyards with approximately 55 acres 

planted to vines. Both native Texas 

grape varieties and Vitis vinifera 

varieties thrive in the proposed area. 

Below, we summarize the evidence 

presented in the petition. 

Name Evidence 

The name ‘‘Texoma’’ originates with 

Lake Texoma, a large man-made lake on 

the Texas-Oklahoma Stateline. People 

have referred to the region within the 

proposed viticultural area as ‘‘Texoma’’

for over 60 years, roughly since the 

completion of Lake Texoma in 1938. 

The petition provided numerous 

examples of the use of the name 

‘‘Texoma’’ by businesses and 

governments serving the four-county 

(Montague, Cooke, Grayson, and 

Fannin) region, including the Texoma 

Regional Health Care System, the 

Texoma Association of Realtors, and the 

Texoma Council of Governments. 

In addition, an Internet search of the 

word ‘‘Texoma’’ returned several 

thousand website listings, with 

references to Montague, Cooke, Grayson, 

and Fannin Counties in Texas, as well 

as the region of south-central Oklahoma 

bordering Lake Texoma. 

Boundary Evidence 

The proposed Texoma viticultural 

area boundary line corresponds to the 

Texoma region of north-central Texas. 

The Red River, Lake Texoma, and the 

Texas-Oklahoma Stateline form the 

proposed area’s northern boundary. The 

ridge between the Red River drainage 

basin and the Trinity River drainage 

basin forms the southern boundary of 

the proposed area. The Montague 

County line forms most of the proposed 

area’s western boundary, while the 

Fannin County line forms most of its 

eastern boundary. 

Historical evidence in the petition for 

the proposed boundaries includes the 

contributions of the Texoma region to 

world viticulture. Renowned 19th 

century viticulturalist Thomas Volney 

(T.V.) Munson chose the Texoma area as 

the site for his experimental vineyards. 

An expert on native grape varieties, it 

was reported that he was particularly 

excited by the varieties of native grapes 

found within the region, calling the area 

his ‘‘grape paradise.’’ He developed over 

300 new grape varieties from the wild 

grapes growing along the bluffs of the 

Red River and its tributaries. Today, the 

T.V. Munson Memorial Vineyard at 

Grayson County College in Denison, 

Texas, carries on Munson’s legacy. The 

vineyard grows 65 of the 300 grape 

varieties developed by Munson, and the 

college, unlike most junior colleges in 

the nation, bestows an associate degree 

in viticulture. 

Because of the importance of native 

grape species to the viticultural history 

and identity of the Texoma region, the 

petitioner bases the southern boundary 

in part on the distribution of wild 

grapevines through the area. The 

proposed Texoma viticultural area 

southern boundary excludes some 

southern portions of the four counties 

since wild grapevines generally do not 

grow on the south-facing slopes beyond 

the ridge that divides the Red River and 

Trinity River drainage basins. 

Distinguishing Features 

Topography 

Much of the terrain in the Texoma 

region slopes downward and northward 

toward the Red River. The elevation 

ranges from a low of 597 feet above sea 

level in northeast Fannin County to a 

high of 1,271 feet on ridges in southeast 

Montague County. Evening breezes off 

the Texoma bluffs and rolling hillsides 

temper the intense heat of the day, and 

cool the vineyards. Numerous small 

creeks flow northward to Lake Texoma 

and the Red River throughout the 

Texoma area. Several varieties of wild 

grapes grow freely in these creek beds, 

just as they did in the days of T.V. 

Munson. 

The north-facing slopes (3 percent to 

12 percent incline) in the proposed 

Texoma viticultural area diminish the 

power of the summer sun and thus 

provide excellent conditions for 

vineyards. Recent research indicates 

that 15-degree north-facing slopes can 

reduce the sunlight index in June from 

107 to 86. (The sunlight index is a scale 

Federal Register / Vol. 70, No. 234 / Wednesday, December 7, 2005 / Rules and Regulations 72715 

measuring the amount of solar radiation 

received by plants.) This results in 

significantly less heat stress on the 

vines. In September, the effect is even 

greater, with the sunlight index reduced 

from 122 to 70. The petitioner contrasts 

the sunlight index with land south of 

the proposed Texoma viticultural area. 

For example, in the Dallas-Fort Worth 

area, the land slopes south, resulting in 

a much higher sunlight index and 

greater heat stress on grape vines. 

The Texoma area has numerous lakes 

and ponds, including Lake Texoma, all 

of which provide ample irrigation 

sources. The numerous bodies of water 

also provide sunlight reflection, which 

helps to ripen grapes. A similar 

reflective effect occurs in the Finger 

Lakes region of New York and in the 

Mosel and Rhine River valleys of 

Germany. Additionally, gentle breezes 

off Lake Texoma provide advection 

warming to the surrounding hillsides 

during cool autumn nights. 

Climate 

Nighttime temperatures in the 

proposed Texoma viticultural area from 

November through February generally 

are 5.3 to 6.7 degrees cooler than those 

in areas to the south and southeast, such 

as the Dallas-Fort Worth area (which 

averages 33.6 °F) and Greenville, Texas 

(which averages 34.9 °F). The nighttime 

winter temperatures in the Texoma 

region, ranging in the mid- to upper-20s, 

are cold enough to kill the insect that 

spreads the toxic Pierce’s disease, but 

are not cold enough to cause damage to 

the vines. Vineyards to the south with 

warmer winter temperatures, 

specifically in the Dallas-Fort Worth 

area, typically suffer extensive damage 

from Pierce’s disease. 

Areas north and west of the Texoma 

area, including Oklahoma and 

northwestern Texas, have winter 

temperatures that are 4 to 6 degrees 

colder than in the proposed Texoma 

viticultural area. Colder temperatures 

increase the risk of damage to vines. 

Freeze and thaw cycles in these areas 

can split vine trunks, while the milder 

winter temperatures in the Texoma area 

prevent such damage. 

The Texoma region receives an 

annual rainfall of 30 to 40 inches, which 

is sufficient when coupled with the 

ample sources of irrigation in the region. 

To the west of the Texoma region, the 

climate is increasingly dry. Wichita 

Falls, Texas, for example, receives only 

28 inches of rain a year, an amount that 

cannot sustain vineyards. Few sources 

of water for irrigation, such as Lake 

Texoma, exist west of the Texoma 

region. Areas east of the Texoma region 

receive much heavier rainfall, as much 

as 51 inches annually in Texarkana. 

Such heavy rainfall often results in 

standing water, which can cause root rot 

and kill vines. 

Soils 

The soils found in the proposed 

Texoma viticultural area differ from the 

soils in surrounding areas. The 

proposed Texoma area contains sandy, 

loamy soils that provide good drainage 

for vineyards. Conversely, the 

surrounding areas outside the proposed 

Texoma viticultural area boundary line 

contain black-land soils, which do not 

provide good drainage for vineyards. 

The sandy soils found in the proposed 

viticultural area are also a natural 

deterrent to phylloxera. 

The petitioner submitted a detailed 

soil report on the proposed Texoma 

viticultural area prepared by a 

committee of soil scientists consisting of 

Maurice Jurena and Jerry Rives from the 

Natural Resources Conservation Service 

of the U.S. Department of Agriculture, 

Dr. George McEachern of Texas A&M 

University, and Dr. Charles E. Pehl, a 

private consultant. The report lists 36 

soil series suitable for viticulture in the 

proposed area and refers to maps that 

show these soil series throughout the 

Texoma area. According to the soil 

report authors, these soils have the 

characteristics needed for productive 

vineyards—good internal drainage, 

adequate soil depth, and good waterholding capacity. Based on available 

soil surveys of the region, the soil report 

authors specify that about one-third of 

the proposed viticultural area, an 

estimated 690,000 acres (1,078 sq. 

miles), should be suitable for productive 

viticulture. The report describes three 

soils of particular interest: 

The Hicota series consists of fine sandy 

loams that are deep, moderately well 

drained, slowly permeable, and have good 

water holding capacity. These soils are found 

on the high terraces mainly along the Red 

River. Formed in loamy alluvium, their 

slopes range from 0 to 3 percent * * *. 

The Freestone series consists of fine sandy 

loams that are very deep, moderately well 

drained, slowly permeable, and have good 

water holding capacity. These soils are found 

on Pleistocene terraces of remnant terraces 

on upland positions. Formed in loamy and 

clayey sediments, their slopes vary from 0 to 

5 percent. The soils have aquic soil moisture 

conditions due to an extremely thin area of 

episaturation above the clay layer in the 

spring at a depth of 20 to 40 inches during 

most years. 

The Frioton series consists of silty clay 

loams that are very deep, well drained, 

moderately slowly permeable, with good 

water holding capacity. Formed in loamy and 

clayey Pleistocene sediments on nearly level 

flood plains, their slopes range from 0 to 1 

percent. They may be flooded for very brief 

periods during the months of February to 

July. 

As additional soil evidence, the 

petitioner submitted soil survey maps 

published by the Natural Resources 

Conservation Service, U.S. Department 

of Agriculture, for each of the four 

counties in the proposed area. These 

maps consistently describe the various 

soils of the proposed Texoma 

viticultural area, including those 

detailed in the soil report submitted 

with the petition as either ‘‘loamy and 

sandy’’ or ‘‘loamy and clayey.’’

Boundary Description 

See the narrative boundary 

description of the viticultural area in the 

regulatory text published at the end of 

this notice. 

Maps 

The petitioner(s) provided the 

required maps, and we list them below 

in the regulatory text. 

Notice of Proposed Rulemaking and 

Comments Received 

On November 30, 2004, TTB 

published in the Federal Register (69 

FR 69557) a notice of proposed 

rulemaking regarding the establishment 

of the Texoma viticultural area as 

(Notice No. 25). In that notice, TTB 

requested comments by January 31, 

2005, from all interested persons. TTB 

received three comments in response. 

A Montague County vineyard owner 

opposed the petition on several 

grounds. Regarding the petition’s name 

and boundary evidence, the commenter 

states that his region of Montague 

County, which is within the proposed 

viticultural area, is not known by the 

Texoma name. He also notes that T.V. 

Munson chose ‘‘the Denison area to do 

his research, not Texoma,’’ a name 

which ‘‘did not exist until 1938.’’ While 

acknowledging that a north Texas radio 

station does identify its listening area as 

‘‘Texoma Land,’’ the commenter states 

that this name usage is not adequate 

justification to propose a viticultural 

area. In addition, the commenter notes 

the dual Texas/Oklahoma nature of the 

Texoma name and contends that 

Oklahoma vineyards ‘‘would not want 

to be confused with Texas vineyards.’’

The commenter also states that 

Montague County has two soil types 

suitable for viticulture, including the 

Antlers Sands, which, he states, ‘‘do not 

exist in Fannin or Grayson Counties.’’

The comment also contends that the 

climate and elevation of the proposed 

area are ‘‘simply too diverse’’ to be 

included within one viticultural area. 

In response to the opposing comment 

regarding name and boundary evidence, 

72716 Federal Register / Vol. 70, No. 234 / Wednesday, December 7, 2005 / Rules and Regulations 

a petitioner submitted a rebuttal 

providing additional information to 

demonstrate the use of the ‘‘Texoma’’

name in Montague County. The 

petitioner also expressed concern over 

the accuracy of the opposing comment’s 

soil and climatic information, calling 

the opposing comment a matter of 

personal opinion that lacked 

substantiating facts. 

TTB has carefully evaluated these two 

comments with reference to the 

submitted supporting information. 

Regarding the proposed name and 

boundary evidence, the opposing 

comment provided no specific evidence 

to show that Montague County is not 

part of the generally recognized 

‘‘Texoma’’ area. We believe the 

petitioner’s evidence supports the use of 

the Texoma name in the portion of 

Montague County that lies within the 

proposed viticultural area. 

In response to the comment regarding 

T.V. Munson, we note that the purpose 

of presenting the grape-growing history 

of a proposed viticultural area is to 

document previous grape growing in the 

area. Reference to the innovative 

individuals responsible for the early 

plantings in the area is of some 

historical viticultural interest, but grapegrowing history is not an absolute 

requirement for the establishment of an 

American viticultural area. In response 

to the commenter’s statements on the 

subject of Oklahoma vineyards, we note 

that we did not receive any comments 

from Oklahoma vineyard industry 

members regarding the proposed 

Texoma viticultural area. 

We also note that the Montague 

County soil, elevation, and climate 

information offered in the opposing 

comment generally conforms to the 

overall petition evidence, except for the 

lower annual precipitation rate in 

Montague County. TTB believes that the 

variances referred to by the commenter 

are minor differences that should not 

affect the decision on whether to 

establish the proposed viticultural area. 

With regard to comments on soils that 

were submitted, we note that while soil 

characteristics are an important factor in 

assessing a proposed viticultural area, it 

would be overly restrictive and thus 

inappropriate to require uniformity of 

soil types throughout a proposed 

viticultural area. 

The third comment expresses concern 

over a possible name conflict between 

the proposed Texoma viticultural area 

and the commenter’s planned ‘‘Texoma 

Vineyards’’ and ‘‘Texoma Winery.’’ The 

commenter supports the viticultural 

area’s establishment as long as his 

future business is allowed to use the 

Texoma Vineyard or Texoma Winery 

names ‘‘in the name and address area of 

the label’’ regardless of the wine’s 

origin. 

With regard to this third comment, 

TTB does not believe that the 

commenter’s future winery operations 

should have any bearing on the 

establishment of the proposed Texoma 

viticultural area. We make our decision 

based on the facts presented to us, not 

based on hypothetical future events. It 

was for this purpose that, in the 

comment notification of Notice No. 25, 

we specifically invited comments on the 

impact that the proposed viticultural 

area might have on an existing (not 

future) viticultural enterprise. 

According to the information provided 

by the commenter, he has not 

commenced winery operations and has 

not filed for label approvals using the 

‘‘Texoma Vineyard’’ or ‘‘Texoma 

Winery’’ brand names. In the future, 

should the commenter wish to bottle 

and label wine using those names, he 

must ensure that the wine meets the 

appellation of origin requirements set 

forth in 27 CFR part 4 and summarized 

in the Impact on Current Wine Labels 

discussion below. 

TTB Finding 

After careful review of the petition 

and the comments received, TTB finds 

that the evidence submitted supports 

the establishment of the proposed 

viticultural area. Therefore, under the 

authority of the Federal Alcohol 

Administration Act and part 4 of our 

regulations, we establish the ‘‘Texoma’’

viticultural area in north-central Texas 

in Montague, Cooke, Grayson, and 

Fannin Counties, effective 30 days from 

publication of this document. 

Impact on Current Wine Labels 

Part 4 of the TTB regulations prohibits 

any label reference on a wine that 

indicates or implies an origin other than 

the wine’s true place of origin. With the 

establishment of this viticultural area 

and its inclusion in part 9 of the TTB 

regulations, its name, ‘‘Texoma,’’ is 

recognized as a name of viticultural 

significance. Consequently, wine 

bottlers using ‘‘Texoma’’ in a brand 

name, including a trademark, or in 

another label reference as to the origin 

of the wine, must ensure that the 

product is eligible to use the viticultural 

area’s name as an appellation of origin. 

For a wine to be eligible to use as an 

appellation of origin the name of a 

viticultural area specified in part 9 of 

the TTB regulations, at least 85 percent 

of the grapes used to make the wine 

must have been grown within the area 

represented by that name, and the wine 

must meet the other conditions listed in 

27 CFR 4.25(e)(3). If the wine is not 

eligible to use the viticultural area name 

as an appellation of origin and that 

name appears in the brand name, then 

the label is not in compliance and the 

bottler must change the brand name and 

obtain approval of a new label. 

Similarly, if the viticultural area name 

appears in another reference on the 

label in a misleading manner, the bottler 

would have to obtain approval of a new 

label. 

Different rules apply if a wine has a 

brand name containing a viticultural 

area name that was used as a brand 

name on a label approved before July 7, 

1986. See 27 CFR 4.39(i)(2) for details. 

Regulatory Flexibility Act 

We certify that this regulation will not 

have a significant economic impact on 

a substantial number of small entities. 

This regulation imposes no new 

reporting, recordkeeping, or other 

administrative requirement. Any benefit 

derived from the use of a viticultural 

area name is the result of a proprietor’s 

efforts and consumer acceptance of 

wines from that area. Therefore, no 

regulatory flexibility analysis is 

required. 

Executive Order 12866 

This rule is not a significant 

regulatory action as defined by 

Executive Order 12866 (58 FR 51735). 

Therefore, it requires no regulatory 

assessment. 

Drafting Information 

Nancy Sutton of the Regulations and 

Rulings Division drafted this document. 

List of Subjects in 27 CFR Part 9 

Wine. 

The Regulatory Amendment 

■ For the reasons discussed in the 

preamble, we amend 27 CFR, chapter 1, 

part 9, as follows: 

PART 9—AMERICAN VITICULTURAL 

AREAS 

■ 1. The authority citation for part 9 

continues to read as follows: 

Authority: 27 U.S.C. 205. 

Subpart C—Approved American 

Viticultural Areas 

■ 2. Amend subpart C by adding § 9.185 

to read as follows: 

§ 9.185 Texoma. 

(a) Name. The name of the viticultural 

area described in this section is 

‘‘Texoma’’. For purposes of part 4 of this 

chapter, ‘‘Texoma’’ is a term of 

viticultural significance. 

Federal Register / Vol. 70, No. 234 / Wednesday, December 7, 2005 / Rules and Regulations 72717 

(b) Approved Maps. The appropriate 

maps for determining the boundaries of 

the Texoma viticultural area are two 

United States Geological Survey, 

1:250,000 scale, topographic maps. They 

are titled: 

(1) Sherman, Texas; Oklahoma, 1954, 

revised 1977; and 

(2) Texarkana, Tex.; Ark.; Okla.; La., 

1953, revised 1972. 

(c) Boundary. The Texoma viticultural 

area is located in Montague, Cooke, 

Grayson, and Fannin Counties, Texas. 

The boundary is defined as follows: 

(1) The beginning point is the 

northwest corner of Montague County 

(at the Red River, which is also the 

Texas-Oklahoma State line) on the 

Sherman map. From this point, the 

boundary line: 

(2) Follows the Red River eastward 

along the Texas-Oklahoma State line, 

passes onto the Texarkana map, and 

continues to the northeast corner of 

Fannin County; then 

(3) Continues southward along the 

eastern Fannin County line to a point 

approximately three miles west of Petty, 

Texas, where a power line shown on the 

Texarkana map crosses the county line; 

then 

(4) Continues southwest in a straight 

line for approximately 13 miles to the 

intersection of State Routes 34/50 and 

State Route 64 at Ladonia, Texas; then 

(5) Follows State Route 34 west to its 

intersection with State Route 68; then 

(6) Continues west-southwesterly in a 

straight line from that intersection to the 

intersection of U.S. Highway 69 and 

State Route 78 at Leonard, Texas, on the 

Sherman map; then 

(7) Continues northwest on U.S. 

Highway 69 for approximately 6 miles 

to the intersection of U.S. Highway 69 

and State Route 121 at Trenton, Texas; 

then 

(8) Continues westerly in a straight 

line to the intersection of State Routes 

160 and 121, and then continues west 

on State Route 121 to its intersection 

with U.S. Highway 75 at Van Alstyne, 

Texas; then 

(9) Continues south along U.S. 

Highway 75 to the Grayson County line; 

then 

(10) Continues west along the 

southern Grayson County line and then 

the southern Cooke County line to the 

county line’s intersection with Interstate 

35; then 

(11) Continues north along Interstate 

35 to its intersection with State Route 

922 in Valley View, Texas; then 

(12) Follows State Route 922 west for 

approximately 17 miles to Rosston, 

Texas; then 

(13) Continues west-southwest from 

Rosston in a straight line for 

approximately 19 miles to the 

intersection of U.S. Highway 287 and 

State Route 101 at Sunset, Texas; then 

(14) Follows U.S. 287 northwest 

approximately 17 miles to the western 

Montague County line; and 

(15) Continues north along the 

western Montague County line to the 

beginning point at the northwest corner 

of Montague County. 

Signed: September 28, 2005. 

John J. Manfreda, 

Administrator. 

Approved: November 3, 2005. 

Timothy E. Skud, 

Deputy Assistant Secretary (Tax, Trade, and 

Tariff Policy). 

[FR Doc. 05–23683 Filed 12–6–05; 8:45 am] 

BILLING CODE 4810–31–P 

DEPARTMENT OF THE TREASURY 

Alcohol and Tobacco Tax and Trade 

Bureau 

27 CFR Part 9 

[T.D. TTB–39; Re: Notice No. 38] 

RIN 1513–AA94 

Establishment of the Ramona Valley 

Viticultural Area (2003R–375P) 

AGENCY: Alcohol and Tobacco Tax and 

Trade Bureau, Treasury. 

ACTION: Final rule; Treasury decision. 

SUMMARY: This Treasury decision 

establishes the 89,000-acre Ramona 

Valley viticultural area in central San 

Diego County, California. The proposed 

area is entirely within the established 

South Coast viticultural area. We 

designate viticultural areas to allow 

vintners to better describe the origin of 

their wines and to allow consumers to 

better identify wines they may 

purchase. 

DATES: Effective Date: January 6, 2006. 

FOR FURTHER INFORMATION CONTACT: 

Nancy Sutton, Regulations and 

Procedures Division, Alcohol and 

Tobacco Tax and Trade Bureau, 925 

Lakeville St., No. 158, Petaluma, 

California 94952; telephone 415–271–

1254. 

SUPPLEMENTARY INFORMATION: 

Background on Viticultural Areas 

TTB Authority 

Section 105(e) of the Federal Alcohol 

Administration Act (the FAA Act, 27 

U.S.C. 201 et seq.) requires that alcohol 

beverage labels provide the consumer 

with adequate information regarding a 

product’s identity and prohibits the use 

of misleading information on such 

labels. The FAA Act also authorizes the 

Secretary of the Treasury to issue 

regulations to carry out its provisions. 

The Alcohol and Tobacco Tax and 

Trade Bureau (TTB) administers these 

regulations. 

Part 4 of the TTB regulations (27 CFR 

part 4) allows the establishment of 

definitive viticultural areas and the use 

of their names as appellations of origin 

on wine labels and in wine 

advertisements. Part 9 of the TTB 

regulations (27 CFR part 9) contains the 

list of approved viticultural areas. 

Definition 

Section 4.25(e)(1)(i) of the TTB 

regulations (27 CFR 4.25(e)(1)(i)) defines 

a viticultural area for American wine as 

a delimited grape-growing region 

distinguishable by geographical 

features, the boundaries of which have 

been recognized and defined in part 9 

of the regulations. These designations 

allow vintners and consumers to 

attribute a given quality, reputation, or 

other characteristic of a wine made from 

grapes grown in an area to its 

geographic origin. The establishment of 

viticultural areas allows vintners to 

describe more accurately the origin of 

their wines to consumers and helps 

consumers to identify wines they may 

purchase. Establishment of a viticultural 

area is neither an approval nor an 

endorsement by TTB of the wine 

produced in that area. 

Requirements 

Section 4.25(e)(2) of the TTB 

regulations outlines the procedure for 

proposing an American viticultural area 

and provides that any interested party 

may petition TTB to establish a grapegrowing region as a viticultural area. 

Section 9.3(b) of the TTB regulations 

requires the petition to include—

• Evidence that the proposed 

viticultural area is locally and/or 

nationally known by the name specified 

in the petition; 

• Historical or current evidence that 

supports setting the boundary of the 

proposed viticultural area as the 

petition specifies; 

• Evidence relating to the 

geographical features, such as climate, 

soils, elevation, and physical features, 

that distinguish the proposed 

viticultural area from surrounding areas; 

• A description of the specific 

boundary of the proposed viticultural 

area, based on features found on United 

States Geological Survey (USGS) maps; 

and 

• A copy of the appropriate USGS 

map(s) with the proposed viticultural 

area’s boundary prominently marked.