[Federal Register Volume 61, Number 124 (Wednesday, June 26, 1996)]
[Rules and Regulations]
[Pages 32922-32924]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-16303]



-----------------------------------------------------------------------


DEPARTMENT OF AGRICULTURE
7 CFR Part 985

[Docket No. AO-79-2; FV95-985-4]


Spearmint Oil Produced in the Far West Order Amending the Order

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This final rule amends the marketing order for spearmint oil 
produced in the Far West. The Department of Agriculture (Department) 
proposed this amendment, which was favored by spearmint oil producers 
in a referendum. Previously, the order included in the regulated 
production area the States of Washington, Idaho, Oregon, and portions 
of Utah, Nevada, Montana, and California. This amendment redefines the 
``production area'' to remove the portions of the States of Montana and 
California. This amendment is designed to improve the administration, 
operation, and function of the Far West spearmint oil program.

EFFECTIVE DATE: June 27, 1996.

FOR FURTHER INFORMATION CONTACT: Caroline C. Thorpe, Marketing 
Specialist, Marketing Order Administration Branch, Fruit and Vegetable 
Division, AMS, USDA, P.O. Box 96456, Room 2522-S, Washington, D.C. 
20090-6456, telephone (202) 720-5127; or Robert Curry, Marketing 
Specialist, 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.

SUPPLEMENTARY INFORMATION: Prior documents in this proceeding: Notice 
of Hearing was issued on October 4, 1995, and published in the Federal 
Register on October 11, 1995 (60 FR 52869). Notice of Public Hearing: 
Correction was issued on November 8, 1995, and published in the Federal 
Register on November 13, 1995 (60 FR 57144). A Notice of order filed on 
proposed rulemaking was issued on November 30, 1995, and published in 
the Federal Register December 5, 1995 (60 FR 62229). The Emergency 
Final Decision and Referendum Order was issued on February 13, 1996, 
and published in the Federal Register on February 20, 1996 (61 FR 
6329).
    This administrative action is governed by the provision of sections 
556 and 557 of title 5 of the United States Code, and is therefore 
excluded from the requirements of Executive Order 12866.
    This rule has been reviewed under Executive Order 12778, 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 Agricultural Marketing Agreement Act of 1937 (Act), as amended 
(7 U.S.C. 601 et seq.) 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.

Preliminary Statement

    This final rule was formulated on the record of a public hearing 
held in Spokane, Washington, on November 14, 1995, to consider the 
proposed amendment of Marketing Order No. 985, regulating the handling 
of spearmint oil produced in the Far West, hereinafter referred to as 
the ``order.'' The hearing was held pursuant to the provisions of the 
Act and the applicable rules of practice and procedure governing 
proceedings to formulate marketing agreements and marketing orders (7 
CFR Part 900). The Notice of Hearing contained an amendment proposal 
recommended by the Department.
    The Department proposed this action to determine if portions of 
both the States of California and Montana should continue to be 
regulated under the order.
    Upon the basis of evidence introduced at the hearing and the record 
thereof, the Assistant Secretary for Marketing and Regulatory Programs 
on February 13, 1996, filed with the Hearing Clerk, Department of 
Agriculture, an Emergency Final Decision and Referendum Order, 
directing that a referendum be conducted during the period March 2 
through March 15, 1996, among all known producers of spearmint oil 
produced in the Far West. The proposed amendment was favored by more 
than the requisite two-thirds of spearmint oil producers voting in the 
referendum. Based upon the referendum and other available information 
the Department determined that the ``production area,'' the area 
regulated under the order, no longer include portions of the states of 
California and Montana.
    There is no amended marketing agreement effective with this 
amendment of the order. The original order was published in the April 
14, 1980, Federal Register (45 FR 25040), as a final rule. At that 
time, a marketing agreement was not approved by spearmint oil handlers 
representing 50 percent or more of the volume of spearmint oil handled 
by all handlers during the representative period.
    The information collection requirements contained in the order and 
regulation have been previously approved by the Office of Management 
and Budget (OMB) under the provisions of the Paperwork Reduction Act of 
1995 (Pub. L. 104-13) and have been assigned OMB numbers 0581-0065 for 
Far West spearmint oil.

[[Page 32923]]

    This rule will have no impact on the reporting burden of 
approximately 8 handlers of spearmint oil as none of the handlers have 
a history of receiving commercial production from the portions of 
California or Montana removed from regulation under the order.

Small Business Consideration

    In accordance with the provisions of the Regulatory Flexibility Act 
(RFA) (5 U.S.C. 601 et seq.), the Agricultural Marketing Service has 
determined that this action will not have a significant economic impact 
on a substantial number of small entities. Small agricultural producers 
have been defined by the Small Business Administration (SBA) (13 CFR 
121.601) as those having annual receipts of less than $500,000. Small 
agricultural service firms, which include handlers under this order, 
are defined as those with annual receipts of less than $5 million.
    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 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 the RFA and the Act have small entity orientation 
and compatibility. Interested persons were invited to present evidence 
at the hearing on the probable impact that the proposed amendment to 
the order would have on small businesses.
    During the 1994-95 marketing year from June 1, 1994, through May 
31, 1995, 8 handlers were regulated under the order. In addition, there 
are approximately 260 producers of spearmint oil in the regulated 
production area. The Act requires the application of uniform rules on 
regulated handlers. A minority of handlers and producers of Far West 
spearmint oil may be classified as small entities. The order itself is 
tailored to the size and nature of these small entities. Thus, both the 
RFA and the Act are compatible with respect to small entities.
    This amendment removes from the regulated production area the 
portions of California and Montana currently regulated by the order. 
This amendment is designed to enhance the administration and 
functioning of the marketing order to the benefit of the industry.

Order Amending the Order Regulating the Handling of Spearmint Oil 
Produced in the Far West

Findings and Determinations

    The findings and determinations hereinafter set forth are 
supplementary and in addition to the findings and determinations 
previously made in connection with the issuance of the order; and all 
of said previous findings and determinations are hereby ratified and 
affirmed, except insofar as such findings and determinations may be in 
conflict with the findings and determinations set forth herein.
    (a) Findings and Determinations Upon the Basis of the Hearing 
Record. Pursuant to the provisions of the Agricultural Marketing 
Agreement Act of 1937, as amended (7 U.S.C. 601 et seq.), and the 
applicable rules of practice and procedure effective thereunder (7 CFR 
Part 900), a public hearing was held upon the proposed amendment to 
Marketing Order No. 985 (7 CFR Part 985), regulating the handling of 
spearmint oil produced in the Far West.
    Upon the basis of the evidence introduced at such hearing and the 
record thereof, it is found that:
    (1) The order, as hereby amended, and all of the terms and 
conditions thereof, will tend to effectuate the declared policy of the 
Act;
    (2) The order, as hereby amended, regulates the handling of 
spearmint oil grown in the production area in the same manner as, and 
is applicable only to persons in the respective classes of commercial 
and industrial activity specified in the marketing order upon which 
hearings have been held;
    (3) The order, as hereby amended, is limited in application to the 
smallest regional production area which is practicable, consistent with 
carrying out the declared policy of the Act, and the issuance of 
several orders applicable to subdivisions of the production area would 
not effectively carry out the declared policy of the Act; and
    (4) All handling of spearmint oil grown in the production area is 
in the current of interstate or foreign commerce or directly burdens, 
obstructs, or affects such commerce.
    (b) Additional findings. It is necessary and in the public interest 
to make this order amendment effective upon publication in the Federal 
Register.
    A later effective date would unnecessarily delay the implementation 
of the order amendment and the improvement in operation of the 
marketing order program. There has been uncertainty within the 
spearmint oil industry for some time with respect to the possible 
redefinition of the order's production area. Such uncertainty has the 
potential of hampering the ability of individual producers and handlers 
to make sound economic decisions concerning their operations. The 
amendment could affect planting, contracting, lending and other 
important economic decisions of those in the industry.
    In view of the foregoing, it is hereby found and determined that 
good cause exists to making this amendatory order effective upon 
publication in the Federal Register, and that it would be contrary to 
the public interest to delay the effective date of this order for 30 
days after publication in the Federal Register (Sec. 553(d), 
Administrative Procedure Act; 5 U.S.C. 551-559).
    (c) Determinations. It is hereby determined that:
    (1) Handlers (excluding cooperative associations of producers who 
are not engaged in processing, distribution, or shipping the commodity 
covered by the said order, as hereby amended) who, during the period 
June 1, 1994, through May 31, 1995, handled not less than 50 percent of 
the volume of such spearmint oil covered by the said order, as hereby 
amended, have not signed a marketing agreement;
    (2) The issuance of this amendatory order, amending the aforesaid 
order, is favored or approved by at least two-thirds of the producers 
who participated in a referendum on the question of its approval or 
produced for market at least two-thirds of the volume of such commodity 
represented in the referendum, all such producers, during the period 
June 1, 1994, through May 31, 1995 (which has been deemed to be a 
representative period), having been engaged within the production area 
in the production of such spearmint oil; and
    (3) In the absence of signed marketing agreements, the issuance of 
this amendatory order is the only practical means pursuant to the 
declared policy of the Act of advancing the interest of producers of 
spearmint oil in the production area.

Order Relative to Handling

    It is therefore ordered, That on and after the effective date 
hereof, all handling of spearmint oil grown in the production area 
shall be in conformity to, and in compliance with, the terms and 
conditions of the said order as hereby amended as follows:
    The provisions of the proposed marketing order amending the order 
contained in the Emergency Final Decision issued by the Assistant 
Secretary on February 13, 1996, and

[[Page 32924]]

published in the Federal Register on February 20, 1996, shall be and 
are the terms and provisions of this order amending the order and are 
set forth in full herein.

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. Section 985.5 is revised to read as follows:


Sec. 985.5  Production area.

    Production area means all the area within the States of Washington, 
Idaho, Oregon, and that portion of Nevada north of the 37th parallel 
and that portion of Utah west of the 111th meridian. The area shall be 
divided into the following districts:
    (a) District 1. State of Washington
    (b) District 2. The State of Idaho and that portion of the States 
of Nevada and Utah included in the production area.
    (c) District 3. The State of Oregon.

    Dated: June 19, 1996.
Michael V. Dunn,
Assistant Secretary, Marketing and Regulatory Programs.
[FR Doc. 96-16303 Filed 6-25-96; 8:45 am]
BILLING CODE 3410-02-P