[Federal Register Volume 61, Number 113 (Tuesday, June 11, 1996)]
[Rules and Regulations]
[Pages 29459-29461]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-14755]



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Rules and Regulations
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Federal Register / Vol. 61, No. 113 / Tuesday, June 11, 1996 / Rules 
and Regulations

[[Page 29459]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 985

[Docket No. FV96-985-1FIR]


Spearmint Oil Produced in the Far West; Revision of the Salable 
Quantity and Allotment Percentages for Class 1 (Scotch) Spearmint Oil 
the 1995-96 Marketing Year

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: The Department of Agriculture (Department) is adopting as a 
final rule, without change, the provisions of an interim final rule 
increasing the quantity of Class 1 (Scotch) 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 for the purpose of avoiding extreme fluctuations in supplies and 
prices and thus help to maintain stability in the spearmint oil market.

EFFECTIVE DATE: July 11, 1996.

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, D.C. 20090-6456; telephone: (202) 720-8139; Tershirra 
Yeager, Marketing Order Administration Branch, Fruit and Vegetable 
Division, AMS, USDA, Room 2525, South Building, P.O. Box 96456, 
Washington, D.C. 20090-6456; telephone: (202) 690-0992.

SUPPLEMENTARY INFORMATION: This final 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 is issuing this rule in conformance 
with Executive Order 12866.
    This final 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 
final rule increases the quantity of Scotch spearmint oil produced in 
the Far West, by class, that may be purchased from or handled for 
producers by handlers during the 1995-96 marketing year, which ends on 
May 31, 1996. This final 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 an action 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 Agricultural Marketing Service (AMS) has considered the 
economic impact of this rule 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 small 
entities acting on their own behalf. Thus, both statutes have small 
entity orientation and compatibility.
    There are eight spearmint oil handlers who are subject to 
regulation under the respective marketing 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 finalizes an interim final rule that increased the 
quantity of Scotch 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 908,531 
pounds to 997,317 pounds and the allotment percentage from 51

[[Page 29460]]

percent to 56 percent for Scotch 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 base for the applicable class of spearmint 
oil.
    The initial salable quantity and allotment percentages for Scotch 
and Native percentages 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 
percentage 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). The Committee met again on February 22, 
1995, to recommend an increase in the salable quantity and allotment 
percentage for Native spearmint oil. An interim final rule increasing 
the salable quantity and allotment percentage for Native spearmint oil 
by 98,527 and 5 percent, respectively, was published in the Federal 
Register on April 14, 1995 (60 FR 18950). Comments were solicited on 
the interim final rule until May 15, 1995. No comments were received. 
Accordingly, based upon analysis of available information, a final rule 
establishing as the salable quantity and allotment percentage for 
Native spearmint oil for the 1995-96 marketing year was published in 
the June 12, 1995, issue of the Federal Register (60 FR 30785).
    Pursuant to authority contained in Secs. 985.50, 985.51, and 985.52 
of the order, February 27, 1996, meeting, the Committee unanimously 
recommended, that allotment percentage for Scotch spearmint oil for the 
1995-96 marketing year be increased by 5 percent from 51 percent to 56 
percent. The 1995-96 marketing year salable quantity of 908,531 pounds 
would therefore be increased by 89,046 pounds to 997,317 pounds.
    However, some Scotch spearmint oil producers did not produce all of 
their individual salable quantities for the 1995-96 marketing year, or 
fill their deficiencies from the prior year's production. The marketing 
order authorizes such producers to have their deficiencies filled by 
other producers who have production in excess of their salable 
quantities. This is optional for producers, but must be done before 
November 1 of each marketing year. Although the Scotch spearmint oil 
salable quantity for 1995-96 was established at 908,531 pounds, only 
887,093 pounds were actually made available. Unfilled deficiencies 
totaled 21,178 pounds.
    In addition, for the Scotch spearmint oil the total industry 
allotment base of 1,781,433 pounds was revised to 1,780,923 pounds to 
reflect loss of base due to non-production of their total annual 
allotments. This adjustment resulted in a 510 pound loss of total 
industry base, which is reflected in the calculations for the revised 
salable quantity.
    This final rule continues to permit an additional amount of Scotch 
spearmint oil available by increasing the salable quantity which 
releases oil from the reserve pool. Only producers with Scotch 
spearmint oil in the reserve pool will be able to use this increase in 
the salable quantity. Prior to November 1, 1995, producers without 
reserve pool oil or producers with an insufficient supply of reserve 
oil could have deficiencies in meeting their salable quantities filled 
by producers having excess Scotch spearmint oil. If all producers could 
use their salable quantity, this 5 percent increase in the allotment 
percentage would have made an additional 89,046 pounds of Scotch 
spearmint oil available. However, Scotch spearmint oil producers having 
21,260 pounds of Scotch spearmint oil will not be able to use their 
reserve pool deficiencies this marketing year. Thus, rather than 89,046 
additional pounds being made available, this action makes 67,786 
additional pounds of Scotch spearmint oil available to the market.
    The following table summarizes the Committee recommendation:

Scotch Spearmint Oil Recommendation

(a) Actual Carry In on June 1, 1995: 150,637 pounds
(b) 1995-96 Salable Quantity: 908,531 pounds
(c) 1995-96 Available Supply: 1,059,168 pounds (a+b)
(d) Total Sales as of February 27, 1996: 883,959 pounds
(e) Calculated Available Supply as of February 27, 1996: 175,209 pounds 
(c-d)
(f) Unfilled Deficiencies in producers' salable quantities prior to 
November 1, 1995: 21,178 pounds
(g) Unusable salable quantities due to producers not having reserve 
pool oil: 21,260 pounds
(h) Total Deficiency Affecting Salable Quantity: 42,438 pounds (f+g)
(i) Actual Available Supply (2/27/96): 153,771 pounds (e-f)
(j) Revised Total Allotment Base: 1,780,923 pounds
(k) Recommended Allotment Percentage (2/27/96): 56 percent
(l) Calculated Revised Salable Quantity: 997,317 pounds (j x k)
(m) Actual Oil Available as Salable Quantity: 954,879 pounds (l-h)

    In making this latest recommendation, the Committee considered all 
available information on supply and demand. The 1996-97 marketing year 
begins on June 1, 1996. Handlers have indicated that with this action, 
the available supply of both Scotch and Native spearmint oils appears 
adequate to meet anticipated demand through May 31, 1996. However, with 
increases in Scotch spearmint oil production elsewhere over the past 
two years, the Committee has embarked on a strategy of maintaining an 
abundance of Scotch spearmint oil available for market in an attempt to 
regain lost market share. With 153,771 pounds of Scotch spearmint oil 
available as of February 27, 1996, the Committee, believes that the 
increase would ensure that ample supplies of Scotch spearmint oil are 
available throughout the remainder of the current marketing year. When 
the Committee made its initial recommendation for the establishment of 
the Scotch spearmint oil salable quantity and allotment percentage for 
the 1995-96 marketing year, it had anticipated that the year would end 
with an ample available supply. An interim final rule was published in 
the Federal Register [61 FR 15697]. Comments on the interim final rule 
were solicited from interested persons until May 9, 1996. No comments 
were received. With this latest revision, 221,557 pounds of Scotch 
spearmint oil is made available. The Scotch spearmint oil is made 
available for market during the remainder of the 1995-96 marketing 
year.
    The Department, based on its analysis of available information, has 
determined

[[Page 29461]]

that an allotment percentage of 56 percent should be established for 
Scotch spearmint oil for the 1995-96 marketing year. This percentage 
will provide an increased calculated salable quantity of 997,317 
pounds, the actual additional amount of Scotch spearmint oil being made 
available by this final rule is 67,786 pounds. This results in an 
actual salable quantity of 954,879 pounds of Scotch spearmint oil.
    Therefore, based on available information, AMS has determined that 
the issuance of this 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 quantity and allotment percentage 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 section 985.214 (60 FR 8524) to change the salable 
quantity and allotment percentage for Scotch spearmint oil, as 
hereinafter set forth, will tend to effectuate the declared policy of 
the Act.

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

    Accordingly, the interim final rule amending 7 CFR part 985 which 
was published at 61 FR 15695 on April 9, 1996, is adopted as a final 
rule without change.

    Dated: June 3, 1996.
Sharon Bomer Lauritsen,
Acting Director, Fruit and Vegetable Division.
[FR Doc. 96-14755 Filed 6-10-96; 8:45 am]
BILLING CODE 3410-02-P