[Federal Register Volume 60, Number 72 (Friday, April 14, 1995)]
[Rules and Regulations]
[Pages 18950-18952]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-9294]



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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 985

[FV95-985-3IFR]


Spearmint Oil Produced in the Far West; Revision of the Salable 
Quantity and Allotment Percentage for Class 3 (Native) Spearmint Oil 
for the 1995-96 Marketing Year

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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SUMMARY: This interim final rule increases the quantity of Class 3 
(Native) spearmint oil produced in the Far West that handlers may 
purchase from, or handle for, producers during the 1995-96 marketing 
year. This rule was recommended by the Spearmint Oil Administrative 
Committee (Committee), the agency responsible for local administration 
of the marketing order for spearmint oil produced in the Far West. The 
Committee recommended this rule to avoid extreme fluctuations in 
supplies and prices and thus help to maintain stability in the Far West 
spearmint oil market.

DATES: Effective on April 14, 1995; comments received by May 15, 1995 
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 in triplicate to the Docket 
Clerk, Fruit and Vegetable Division, AMS, USDA, room 2525, South 
Building, P.O. Box 96456, Washington, DC 20090-6456; Fax: (202) 720-
5698. All comments should reference the docket number and the date and 
page number of this issue of the Federal Register and will be made 
available for public inspection in the Office of the Docket Clerk 
during regular business hours.

FOR FURTHER INFORMATION CONTACT: Robert J. Curry, Northwest Marketing 
Field Office, Marketing Order Administration Branch, Fruit and 
Vegetable Division, AMS, USDA, 1220 SW. Third Avenue, room 369, 
Portland, Oregon 97204-2807; telephone: (503) 326-2724; or Caroline C. 
Thorpe, Marketing Order Administration Branch, Fruit and Vegetable 
Division, AMS, USDA, room 2525, South Building, P.O. Box 96456, 
Washington, DC 20090-6456; telephone: (202) 720-8139.

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing Order 
No. 985 (7 CFR Part 985), regulating the handling of spearmint oil 
produced in the Far West (Washington, Idaho, Oregon, and designated 
parts of California, Nevada, Montana, and Utah), hereinafter referred 
to as the ``order.'' This order is effective under the Agricultural 
Marketing Agreement Act of 1937, as amended (7 U.S.C. 601-674), 
hereinafter referred to as the ``Act.''
    The Department of Agriculture (Department) is issuing this rule in 
conformance with Executive Order 12866.
    This rule has been reviewed under Executive Order 12778, Civil 
Justice Reform. Under the provisions of the marketing order now in 
effect, salable quantities and allotment percentages may be established 
for classes of spearmint oil produced in the Far West. This rule 
increases the quantity of Class 3 spearmint oil produced in the Far 
West that may be purchased from or handled for producers by handlers 
during the 1995-96 marketing year, which ends on May 31, 1996. This 
rule will not preempt any state or local laws, regulations, or 
policies, unless they present an irreconcilable conflict with this 
rule.
    The Act provides that administrative proceedings must be exhausted 
before parties may file suit in court. Under section 608c(15)(A) of the 
Act, any handler subject to an order may file with the Secretary a 
petition stating that the order, any provision of the order, or any 
obligation imposed in connection with the order is not in accordance 
with law and request a modification of the order or to be exempted 
therefrom. A handler is afforded the opportunity for a hearing on the 
petition. After the hearing the Secretary would rule on the petition. 
The Act provides that the district court of the United States in any 
district in which the handler is an inhabitant, or has his or her 
principal place of business, has jurisdiction in equity to review the 
Secretary's ruling on the petition, provided a bill in equity is filed 
not later than 20 days after date of the entry of the ruling.
    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA), the Administrator of the Agricultural Marketing Service 
(AMS) has considered the economic impact of this action on small 
entities.
    The purpose of the RFA is to fit regulatory actions to the scale of 
business subject to such actions in order that small businesses will 
not be unduly or disproportionately burdened. Marketing orders issued 
pursuant to the Act, and rules issued thereunder, are unique in that 
they are brought about through group action of essentially 
[[Page 18951]] 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 260 producers of spearmint oil in the 
regulated production area. Of the 260 producers, approximately 160 
producers hold Class 1 (Scotch) spearmint oil allotment base, and 
approximately 145 producers hold Class 3 (Native) spearmint oil 
allotment base. Small agricultural service firms have been defined by 
the Small Business Administration (13 CFR 121.601) as those having 
annual receipts of less than $5,000,000, and small agricultural 
producers are defined as those whose annual receipts are less than 
$500,000. A minority of handlers and producers of Far West spearmint 
oil may 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 are not exclusively dependent on 
the production of spearmint oil. The U.S. production of spearmint oil 
is concentrated in the Far West, primarily Washington, Idaho, and 
Oregon (part of the area covered by the order). Spearmint oil is also 
produced in the Midwest. The production area covered by the order 
normally accounts for approximately 75 percent of the annual U.S. 
production of spearmint oil.
    This rule increases the quantity of Native spearmint oil that 
handlers may purchase from, or handle for, producers during the 1995-96 
marketing year, which ends on May 31, 1996. This rule increases the 
salable quantity from 906,449 pounds to 1,004,976 pounds and the 
allotment percentage from 46 percent to 51 percent for Native spearmint 
oil for the 1995-96 marketing year.
    The salable quantity is the total quantity of each class of oil 
that handlers may purchase from, or handle for, producers during a 
marketing year. The salable quantity calculated by the Committee is 
based on the estimated trade demand. The total salable quantity is 
divided by the total industry allotment base to determine an allotment 
percentage. Each producer is allotted a share of the salable quantity 
by applying the allotment percentage to the producer's allotment base 
for the applicable class of spearmint oil.
    The initial salable quantity and allotment percentages for Scotch 
and Native spearmint oils for the 1995-96 marketing year were 
recommended by the Committee at its October 5, 1994, meeting. The 
Committee recommended salable quantities of 908,531 pounds and 906,449 
pounds, and allotment percentages of 51 percent and 46 percent, 
respectively, for Scotch and Native spearmint oils. A proposed rule was 
published in the December 15, 1994, issue of the Federal Register (59 
FR 64625). Comments on the proposed rule were solicited from interested 
persons until January 17, 1995. No comments were received. Accordingly, 
based upon analysis of available information, a final rule establishing 
the Committee's recommendation as the salable quantities and allotment 
percentages for Scotch and Native spearmint oils for the 1995-96 
marketing year was published in the February 15, 1995, issue of the 
Federal Register (60 FR 8524).
    Pursuant to authority contained in Secs. 985.50, 985.51, and 985.52 
of the order, at its February 22, 1995, meeting, the Committee 
recommended, with one member voting in opposition, that the salable 
quantity for Native spearmint oil for the 1995-96 marketing year be 
increased from 906,449 pounds to 1,004,976 pounds. The member voting in 
opposition did not favor an increase in the salable quantity and 
allotment percentage because he believed it was too early to determine 
what the market conditions will be during the 1995-96 marketing year. 
Based on the total allotment base of 1,970,542 pounds, the allotment 
percentage for Native spearmint oil is increased from 46 percent to 51 
percent, resulting in a 98,527 pound increase in the salable quantity.

Native Spearmint Oil Recommendations

(1) Salable Quantity
  October 5, 1994
906,449 pounds
  February 22, 1995
1,004,976 pounds
(2) Allotment Base
  October 5, 1994
1,970,542 pounds
  February 22, 1995
1,970,542 pounds
(3) Allotment Percentage
  October 5, 1994
46 percent
  February 22, 1995
51 percent

    In making this latest recommendation, the Committee considered all 
available information on supply and demand. The 1995-96 marketing year 
begins on June 1, 1995. Handlers have indicated that the available 
supply of Scotch spearmint oil appears adequate to meet anticipated 
demand through May 31, 1996. Handlers have indicated, however, that 
demand for Native spearmint oil is currently fairly strong and 
anticipate that this trend will likely continue into the next marketing 
year. Based upon this strengthening demand, as well as historical data 
that indicates the annual average of sales for the last eight years is 
1,006,512 pounds, the Committee believes that an increase in the 
salable quantity to 1,004,976 pounds is necessary to meet anticipated 
demand. This level of demand was not anticipated by the Committee when 
it made its initial recommendation for the establishment of the Native 
spearmint oil salable quantity and allotment percentage for the 1995-96 
marketing year.
    The recommended salable quantity of 1,004,976 pounds of Native 
spearmint oil (an increase of 98,527 pounds), combined with a revised 
estimated carry-in of 100,000 pounds on June 1, 1995, results in a 
revised 1995-96 estimated available supply of 1,104,976 pounds. Thus, 
the revised estimate for the 1995-96 marketing year Native spearmint 
oil available supply is approximately 100,000 pounds higher than the 
annual average of sales for the past eight years. With this revision, 
the Committee anticipates that demand for Native spearmint oil during 
the 1995-96 marketing year will be adequately met.
    The Department, based on its analysis of available information, has 
determined that an allotment percentage of 51 percent should be 
established for Native spearmint oil for the 1995-96 marketing year. 
This percentage will provide an increased salable quantity of 1,004,976 
pounds of Native spearmint oil.
    Based on available information, the Administrator of the AMS has 
determined that the issuance of this interim final rule will not have a 
significant economic impact on a substantial number of small entities.
    After consideration of all relevant matter presented, including 
that contained in the prior proposed and final rules in connection with 
the establishment of the salable quantities and allotment percentages 
for Scotch and Native spearmint oils for the 1995-96 marketing year, 
the Committee's recommendation and other available information, it is 
found that to revise Sec. 985.214 (60 FR 8524) to change the salable 
quantity and allotment percentage for Native spearmint oil, as 
hereinafter set forth, will tend to effectuate the declared policy of 
the Act.
    Pursuant to 5 U.S.C. 553, it is also found and determined upon good 
cause that it is impracticable, unnecessary, and contrary to 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 interim final rule increases the quantity of Native 
spearmint oil that may be marketed during the marketing year beginning 
on June 1, 1995; (2) The quantity of Native [[Page 18952]] spearmint 
planted for the 1995-96 marketing year may be affected, thus handlers 
and producers should be apprised as soon as possible of the salable 
quantity and allotment percentage of Native spearmint oil contained in 
this interim final rule; and (3) This rule provides a 30-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--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. Sec. 985.214 is amended by revising the introductory text and 
paragraph (b) to read as follows:

    Note: This section will not appear in the annual Code of Federal 
Regulations.


Sec. 985.214  Salable quantities and allotment percentages--1995-96 
marketing year.

    The salable quantity and allotment percentage for each class of 
spearmint oil during the marketing year beginning on June 1, 1995, 
shall be as follows:
* * * * *
    (b) Class 3 (Native) oil--a salable quantity of 1,004,976 pounds 
and an allotment percentage of 51 percent.

    Dated: April 7, 1995.
Sharon Bomer Lauritsen,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 95-9294 Filed 4-13-95; 8:45 am]
BILLING CODE 3410-02-P