46836 Federal Register / Vol. 73, No. 156 / Tuesday, August 12, 2008 / Proposed Rules 

DEPARTMENT OF THE TREASURY 

Alcohol and Tobacco Tax and Trade 

Bureau 

27 CFR Part 9 

[Notice No. 87; Docket No. TTB–2008–0006] 

RIN 1513–AB42 

Proposed Establishment of the Lake 

Chelan Viticultural Area (2007R–103P) 

AGENCY: Alcohol and Tobacco Tax and 

Trade Bureau, Treasury. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: The Alcohol and Tobacco Tax 

and Trade Bureau proposes to establish 

the 24,040-acre ‘‘Lake Chelan’’

American viticultural area in Chelan 

County, Washington. It lies within the 

larger Columbia Valley viticultural area 

in north-central Washington. 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. We invite comments on this 

proposed addition to our regulations. 

DATES: We must receive written 

comments on or before October 14, 

2008. 

ADDRESSES: You may send comments on 

this notice to one of the following 

addresses: 

• http://www.regulations.gov (via the 

online comment form for this notice as 

posted within Docket No. TTB–2008–

0006 at ‘‘Regulations.gov,’’ the Federal 

e-rulemaking portal); or 

• Director, Regulations and Rulings 

Division, Alcohol and Tobacco Tax and 

Trade Bureau, P.O. Box 14412, 

Washington, DC 20044–4412. 

See the Public Participation section of 

this notice for specific instructions and 

requirements for submitting comments, 

and for information on how to request 

a public hearing. 

You may view copies of this notice, 

selected supporting materials, and any 

comments we receive about this 

proposal at http://www.regulations.gov 

within Docket No. TTB–2008–0006. A 

link to that docket is posted on the TTB 

Web site at http://www.ttb.gov/wine/ 

wine_rulemaking.shtml under Notice 

No. 87. You also may view copies of this 

notice, all related petitions, maps and 

other supporting materials, and any 

comments we receive about this 

proposal by appointment at the TTB 

Information Resource Center, 1310 G 

Street, NW., Washington, DC 20220. 

Please call 202–927–2400 to make an 

appointment. 

FOR FURTHER INFORMATION CONTACT: N.A. 

Sutton, Regulations and Rulings 

Division, Alcohol and Tobacco Tax and 

Trade Bureau, 925 Lakeville St., No. 

158, Petaluma, CA 94952; telephone 

415–271–1254. 

SUPPLEMENTARY INFORMATION: 

Background on Viticultural Areas 

TTB Authority 

Section 105(e) of the Federal Alcohol 

Administration Act (FAA Act), 27 

U.S.C. 205(e), authorizes the Secretary 

of the Treasury to prescribe regulations 

for the labeling of wine, distilled spirits, 

and malt beverages. The FAA Act 

requires that these regulations, among 

other things, prohibit consumer 

deception and the use of misleading 

statements on labels, and ensure that 

labels provide the consumer with 

adequate information as to the identity 

and quality of the product. The Alcohol 

and Tobacco Tax and Trade Bureau 

(TTB) administers the regulations 

promulgated under the FAA Act. 

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 geographic 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 geographic 

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. 

Lake Chelan Petition 

Alan J. Busacca, PhD, a geologist 

licensed in Washington State and a 

nationally certified professional soil 

scientist with Vinitas Vineyard 

Consultants, submitted a petition on 

behalf of the Lake Chelan Wine Growers 

Association to establish the 24,040-acre 

Lake Chelan American viticultural area 

in north-central Washington. Some of 

the petition evidence and 

documentation provided relies on the 

previous research and writings of Dr. 

Busacca. Additional petition resources 

include Government-published climatic, 

topographic, and soils data, as well as 

maps, municipal resources, commercial 

publications, personal correspondence, 

and anecdotal information. 

The Lake Chelan Valley lies about 112 

miles east-northeast of Seattle, 

according to USGS and commercial 

maps. The petitioner explains that the 

proposed Lake Chelan viticultural area 

lies entirely within the large, 

established Columbia Valley viticultural 

area (27 CFR 9.74). TTB notes that the 

Lake Chelan region lies to the east of the 

Puget Sound viticultural area (27 CFR 

9.151) and to the north of other 

Washington State viticultural areas. The 

proposed Lake Chelan viticultural area 

also is not adjacent to nor does it 

include any portion of any other 

Washington State viticultural area 

except the Columbia Valley viticultural 

area. 

The petitioner explains that the 

proposed Lake Chelan viticultural area 

includes the southern and eastern 

portions of the large body of water 

known as Lake Chelan and its 

surrounding lands suitable for 

viticulture. According to the petitioner, 

at the time of the 2006 petition filing 

with TTB, the proposed viticultural area 

included 13 bonded wineries, 140 acres 

of vineyards, and another 50 acres to be 

planted to grape vines. 


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According to the petitioner, 

distinguishing features of the proposed 

Lake Chelan viticultural area include its 

geology, geography, soils, and climate as 

directly influenced by past alpine 

glacial activity of the Cascade region. 

Lake Chelan Valley is the only valley in 

the Cascade Range in Oregon or 

Washington that holds a natural lake of 

its size. The climate of the agricultural 

and viticultural lands surrounding the 

lower (eastern) end of the lake is 

strongly moderated by the thermal effect 

of the lake on the air temperatures. The 

glacier that formed during the last ice 

age and traveled from the Cascade crest 

to the eastern end of the modern lake 

left a defining imprint on the landforms 

of the Lake Chelan Valley. In addition, 

the petitioner claims that pumice and 

ash from eruptions of volcanoes in the 

Cascade Range, principally Glacier Peak 

to the west of the proposed viticultural 

area, formed soils that are ashier and 

more pumiceous than those in any other 

established viticultural area in 

Washington State. 

We summarize below the supporting 

evidence submitted with the petition. 

Name Evidence 

The ‘‘Chelan’’ geographic name 

derives from the name that Alexander 

Ross, an American fur trader, in about 

1824 used to describe the ‘‘Tsill-anes,’’

a native people living along the south 

shore of Lake Chelan, according to 

‘‘Chelan County—Thumbnail History,’’

an article from the Washington State 

Department of Archaeology and Historic 

Preservation, The Online Encyclopedia 

of Washington State History at 

www.historylink.org. 

The ‘‘Lake Chelan’’ name appears on 

the USGS Chelan, Manson, and 

Winesap quadrangle maps. The USGS 

Chelan map, sections 11 and 12, T27N 

and R23N, identifies an area to the 

north-northwest of the small town of 

Chelan as the ‘‘Lake Chelan Golf and 

Country Club.’’ The DeLorme 

Washington Atlas and Gazetteer 

identifies ‘‘Lake Chelan’’ on page 83, 

sections A7, B7, and B8. The American 

Automobile Association map, Oregon 

Washington State Series, identifies 

‘‘Lake Chelan’’ as a long slender lake 

extending northwest from the North 

Cascades National Park southeast to the 

Chelan Dam, approximately 2 miles 

northwest of the Columbia River. 

An article entitled ‘‘Chelan and 

Stehekin, WA,’’ dated August 12, 2006, 

on http://www.nwsource.com, a 

northwest travel and outdoors Web site, 

states that Lake Chelan is one of 

Washington’s favorite summer 

recreation areas. 

Boundary Evidence 

According to the petitioner and the 

written boundary description, the 

proposed Lake Chelan viticultural area 

encompasses the southernmost and 

easternmost 12 miles of the 55-mile-long 

lake and surrounding lands. A bedrock 

ridge, with a pinnacle at a 1,526-foot 

elevation, divides the approximately 

1,200-foot elevation of the south Lake 

Chelan region from the 707-foot 

elevation of the Columbia River, 

according to USGS maps of the area and 

the petitioner. Lands to the east and 

southeast of the proposed viticultural 

area are within the Columbia River 

airshed and watershed, and have 

different climates, geology, and soils. 

The upper 43 miles of Lake Chelan 

and its shoreline lie outside of the 

proposed viticultural area, according to 

the written boundary description 

provided in the petition. According to 

the petitioner, in the northern lake 

region the surrounding Cascade Range 

provides significant downward cold air 

drainage from peaks to valley floor and 

blocks the sun from the adjacent valley 

lands. The cold air and shade combine 

with a steep shoreline terrain to create 

a region unsuitable for grape growing. 

Additionally, the North Cascades 

National Park surrounds the north end 

of Lake Chelan, and commercial 

agricultural development is prohibited 

within its borders. 

Lands with viticultural potential in 

the Lake Chelan Valley area, the 

petitioner states, are generally at or 

below 2,000 feet in elevation. High 

mountains ridges, beyond the boundary 

of the proposed Lake Chelan viticultural 

area, rise over 5,000 feet in elevation to 

the north and west and to 3,800 feet to 

the south, cradling the Lake Chelan 

Valley region on three sides, according 

to the petitioner and USGS maps. The 

petition explains that these high 

mountains, which have cold climates 

and forested terrain, are unsuited to 

viticulture. 

History of Viticulture 

According to the Chelan Valley Mirror 

dated May 1, 1947, Urban DeGrassi, a 

Jesuit priest, spent several years in the 

Lake Chelan region teaching agriculture. 

Based on Father DeGrassi’s teachings, in 

1881, John and Peter Wapato, Native 

Americans of Chelan Valley, started 

planting fruit eventually including 

grapes and cherries. 

According to an article in the August 

6, 1891, edition of the Chelan Falls 

Leader, Louis Conti, an Italian 

immigrant, owned a 60-acre vineyard in 

the Lake Chelan area. The article stated 

that a colony of Italian immigrants, 

living on the sunnier south side of the 

lake, planted grape vines on their 

claimed lands. 

Two 1905 photographs from the 

Chelan County Historical Society show 

grapes growing in the Lake Chelan area. 

A photo of grapes on the vine is labeled 

‘‘Black Hamburg Grapes—Lake Chelan.’’

The petitioner explains that the 

common name for those grapes is Black 

Muscat. The other photo, which shows 

a little boy sitting on the ground beside 

grapes hanging heavily from a vine, is 

labeled ‘‘Lake Chelan Grapes.’’

The Faletto family continued growing 

grapes into the early 1900s, according to 

an e-mail dated November 22, 2005, 

from family member Rich Faletto. Mr. 

Faletto stated of his grandfather, ‘‘Old 

John was the vintner and winery 

operator in the valley, producing great 

wine from [grapevines] brought to the 

area by a group of Italians.’’

The Chelan and Manson areas, within 

the proposed viticultural area, 

comprised 154 acres of producing 

vineyards, according to a November 17, 

1949, newspaper article written by 

Harry R. McMullen. According to the 

article, that year grape growers received 

2 cents a pound, or $40 a ton, from the 

Welch Company. 

Modern Viticulture 

The petitioner states that in 1998, 

Steve Kludt and Bob Christopher 

replanted apple orchards to grapes 

within the proposed Lake Chelan 

viticultural area. Also, in 2000 the Kludt 

family opened the first bonded winery 

in the area and in 2001 started selling 

wine. Vineyard production in the Lake 

Chelan region increased from over 90 

acres in 2004 to 140 acres by 2006. 

According to the petitioner, 13 bonded 

wineries operated in the Lake Chelan 

area as of the 2006 petition submission 

date. 

Proposed Boundary Line 

The petitioner explains that the 

proposed boundary line uses a 2,000- 

foot elevation line and USGS map 

section lines in conjunction with roads, 

mountain peaks, and other map 

markings in providing a clear, simple 

perimeter. The proposed Lake Chelan 

viticultural area boundary line includes 

lands adjacent to the southernmost 12 

miles of the lake, according to the 

petition. 

In determining the proposed 

boundary line, the petitioner includes in 

the proposed viticultural area only the 

valley areas with a significant ‘‘lake 

effect’’ climate. The lake affects 

surrounding lands, the petitioner 

explains, by favorably moderating the 

climate, increasing the length of the 


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growing season, and reducing the 

frequency of damaging or killing vine 

freezes. The petitioner states that the 

proposed boundary line excludes from 

the proposed viticultural area the 

surrounding mountainous areas and the 

northern 43 miles of the lake and 

adjacent lands, all unsuitable for 

viticulture. 

TTB notes that the northeast portion 

of boundary of the proposed Lake 

Chelan viticultural area coincides with 

17 miles of the 2,000-foot boundary line 

of the Columbia Valley viticultural area. 

In the original petition, the proposed 

northeast boundary line incorporated a 

series of map section lines and 90- 

degree turns. After discussions with 

TTB, the petitioner modified the 

northeast portion of the boundary line 

to coincide with the boundary line of 

the Columbia Valley viticultural area. 

The petitioner provides an aerial 

photo of agriculture within and 

immediately outside of the proposed 

Lake Chelan viticultural area. The 

planted orchards and vineyards are 

clustered on the low, flat elevations 

adjoining the northern and southern 

shorelines of the lake. The petitioner 

explains that viticulture fails to thrive 

outside the proposed boundary line 

because of high elevations, steep terrain, 

cold temperatures, and the absence of a 

moderating lake effect climate. 

Other boundary line considerations 

include properties of the soil, the 

influences of the watershed and airshed, 

the elevations of the surrounding 

mountains, and the steepness of the 

terrain. 

Distinguishing Features 

Cascade Range Geographic Province 

The proposed Lake Chelan 

viticultural area, a part of the Cascade 

Range geographic province, the 

petitioner explains, includes distinctive 

geology, geography, soils, and climate 

that contrast to those of the surrounding 

areas. The geology, the petitioner notes, 

includes the advance of Cascade alpine 

glaciers that occurred 14,000 to 18,000 

years ago. 

The Cascade Mountain Range runs 

north-south through Washington and 

Oregon and divides western and eastern 

Washington, the petitioner explains. 

The range creates, to the east, a rain 

shadow that limits precipitation in the 

Lake Chelan Valley and on the 

Columbia Plateau in eastern 

Washington. The range protects areas to 

its east from Arctic and Pacific winter 

storms and further moderates climate. 

Lake Chelan Valley is the only valley 

that the Cascade glacier created in 

Washington and Oregon and that holds 

a large natural lake of Lake Chelan’s 

size. The lake is the third deepest lake 

in the U.S., the petitioner emphasizes. 

The soils in the valley formed in glacial 

sediments layered below the more 

recent windblown deposition of 

volcanic pumice and ash. Also, the large 

glacial lake acts as a heat reservoir to 

produce a unique climate of 

consistently moderated temperatures. 

Columbia Plateau Geographic Province 

Most Washington vineyards, the 

petitioner states, lie on the Columbia 

Plateau geographic province, the 

features of which contrast significantly 

in several important ways from the Lake 

Chelan Valley in the Cascade Range 

geographic province. The distinguishing 

features of the Columbia Plateau include 

the bedrock of Tertiary-age basaltic 

lavas, sediments derived from 

cataclysmic outburst floods of Lake 

Missoula, and bench-and-riser 

landforms that the recurrent Missoula 

Floods created through erosion of the 

lavas. The topography varies from near 

moonscapes to megasized gravel bars 

and slackwater terraces. 

The petitioner states that another 

distinguishing feature of the Columbia 

Plateau is the predominant east-west 

trending valley-and-ridge system that 

affects the elevation, slope, aspect, heat 

accumulation, winds, and air drainage 

of the plateau. Also, plateau elevations 

vary from 460 feet at the Wahluke Slope 

viticultural area (27 CFR 9.192) to 970 

feet at the Walla Walla Valley 

viticultural area (27 CFR 9.91), a 

topography with a significantly lower 

elevation than that of the Lake Chelan 

area of the Cascade Range. 

The separate climates of the Columbia 

Plateau viticultural areas share low 

winter temperatures with complete vine 

dormancy and significant fall daytime 

and nighttime temperature variations. 

The viticultural areas of the Columbia 

Plateau lie within the rain shadow of 

the Cascade Range, and have a drier 

climate as compared to western 

Washington. The combination of 

distinguishing features in the 

viticultural areas on the Columbia 

Plateau, the petitioner concludes, 

creates a unique annual growing season 

that contrasts with the Lake Chelan 

Valley region in the Cascade Range 

geographic province. 

Geology 

The petitioner explains that the most 

recent ice-age events of the Earth, 

14,000 to 18,000 years ago, played 

significant roles in creating the differing 

geological records within the Cascade 

Range and the Columbia Plateau. 

The region encompassing the 

proposed Lake Chelan viticultural area, 

according to the petitioner, includes 

camel-backed bedrock landforms that 

the Cascade Range alpine glaciers 

eroded into the dominantly granitic 

bedrock of the Lake Chelan area, lake 

sediments that the alpine glaciers 

deposited, and bedrock that consists of 

Cretaceous-age igneous and older 

metamorphic rocks. The glaciers 

crushed bedrock in the Lake Chelan 

region, creating glacial till and outwash 

sediments that have coarse sandy 

textures and that are rich in biotite 

mica. The glacial lake sediments, silty to 

clayey in texture, include substantive 

amounts of quartz and mica. As a result, 

the soil’s deep rooting zone for grape 

vines has distinguishable textures, 

mineralogy, and nutrients. 

The petitioner provides a geologic 

map of the proposed Lake Chelan 

viticultural area from the USGS 

Miscellaneous Investigations Series Map 

I–1661, Geologic Map of the Chelan, 30- 

Minute by 60-Minute Quadrangle, 

Washington, accessed online on June 

26, 2006. The map identifies the 

Cretaceous-age bedrock and the 

Quaternary age surface sediments in the 

Lake Chelan Valley area. The 

Cretaceous-age units consist of dark, 

intrusive igneous tonalites, the 

petitioner explains. TTB notes that 

tonalite is an igneous plutonic 

(intrusive) rock having greater than 20 

percent quartz and quartz diorite with 5 

to 20 percent quartz. Also, the 

Quaternary-age units consist of glacial 

moraines, terraces, lake deposits, and 

postglacial landslides and alluvial 

sediments. 

According to the petitioner, the 

Columbia Plateau geologic history, in 

contrast, stems from the force of a lobe 

of the western Canadian ice sheet that 

blocked the Clark Fork River in Idaho 

and created the huge glacial Lake 

Missoula in Montana. When the glacial 

ice dams repeatedly failed, the largest 

floods of water ever documented on 

Earth occurred. The floods 

overwhelmed the Columbia River and 

flowed across eastern Washington, 

eroding channels in the basalt bedrock 

and depositing gravel bars in the main 

basins and fine sandy and silty 

sediments in the river valleys. 

Geography 

Elevations vary from approximately 

1,100 feet at lake level to 3,276 feet at 

an unnamed peak in the northwest 

portion of the proposed Lake Chelan 

viticultural area, 1.8 miles northwest of 

Lake Chelan State Park on the USGS 

Manson quadrangle map. The lower 

elevations, which have gently rising 


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slopes, are along the southern and 

eastern shoreline of Lake Chelan, as 

shown on the USGS maps of the region. 

The petitioner explains that the lower 

lakeside elevations are known for 

successful fruit growing. The higher 

elevations enveloping the Lake Chelan 

Valley region generally correlate with 

steep terrain, as shown on the USGS 

maps of the proposed viticultural area. 

According to the petitioner, when the 

Cascade alpine glaciers descended from 

the mountain crests to lower elevations, 

they created the distinctive U-shaped 

Lake Chelan Valley topography, 

including the lake depression. The term 

‘‘camel-backed’’ describes the landforms 

of the Lake Chelan Valley at low 

elevations and adjacent surrounding 

mountains. The Cascade alpine glaciers 

created other valleys in the region with 

similar landscapes, including camelbacked topography, and layers of glacial 

sediment, but not lake basins. Thus, 

only Lake Chelan Valley, in contrast to 

the other regional glacial valleys, has a 

climate-moderating lake effect. 

Climate 

According to local growers and 

temperature statistics, a lake effect 

moderates air temperature extremes in 

both summer and winter in the 

proposed Lake Chelan viticultural area. 

The combination of moderating summer 

high and winter low temperatures 

creates a suitable environment for both 

viticulture and tree fruit agriculture. 

According to the petitioner, the strong 

lake effect moderates the air 

temperatures of planted areas adjacent 

north and south of the eastern part of 

the lake. In those areas, the waters of 

Lake Chelan create a heat reservoir that 

absorbs warming solar energy in 

summer and then reradiates heat energy 

into cold air in winter. The table below 

compares the climate in the areas along 

Lake Chelan to that in similar areas 

nearby but without lakes. 

CLIMATIC INDICES FOR WINE GRAPES FOR THREE SITES IN WASHINGTON STATE, 1994–2003 

Area * Distance from Lake Chelan 

(miles) 

Cool climate 

viticulture 

suitability 

index ** 

(days) 

Number of 

days a year 

<32 °F 

Number of 

days a year 

>95 °F 

Lake Chelan .................................................................................... 0 ................................................. 244 89.6 7.1 

Methow Valley ................................................................................. 30, north ..................................... 176 147.9 13.6 

Wenatchee Valley ........................................................................... 30, south .................................... 230 102.3 14.1 

* Based on data from the National Climate Data Center. 

** Number of days between <29 °F in spring and the first temperature <29 °F in fall. 

The petitioner uses a cool-climate 

viticultural suitability index (CCVSI) 

formulated at Cornell University as an 

analytical tool for the Lake Chelan 

Valley climate. The CCVSI emphasizes 

the impact of temperature moderation 

on viticulture. The petitioner explains 

that the CCVSI compiles the sum of the 

days from the last occurrence of 29 

degrees Fahrenheit or lower in spring 

until the first occurrence of 29 degrees 

Fahrenheit or lower in fall. The larger 

total numbers, in days, generally 

correlate to the better viticultural 

regions. 

For the Lake Chelan Valley region, the 

CCVSI 10-year average of 244 days is 

significantly higher than the glacially 

formed Methow Valley in the Cascade 

Range to the north and higher than the 

Wanatchee Valley to the south. 

In another measure of the lake effect 

on the proposed Lake Chelan 

viticultural area, the petitioner uses the 

annual average number of days with 

temperatures of 32 degrees Fahrenheit 

or lower in winter and 95 degrees 

Fahrenheit or higher in summer. The 

petitioner compares the climates in Lake 

Chelan Valley, Methow Valley, and 

Wenatchee Valley using this method. 

All three valleys are located within 60 

miles of each other, were created 

partially or totally by Cascade alpine 

glaciers, and have other similar 

geographic features. Lake Chelan Valley 

averages 7 days a year above 95 degrees 

Fahrenheit, and Methow Valley and 

Wenatchee Valley average 14 days a 

year, according to data from the 

National Climate Data Center included 

with the petition. Fewer hot days in the 

Lake Chelan Valley correlate with better 

fruit quality, since temperatures above 

95 degrees shut down most 

photosynthesis in grapes, according to 

the petitioner. The Lake Chelan Valley 

averages only 90 days a year colder than 

32 degrees Fahrenheit in winter, while 

the Methow Valley averages 148 days 

and the Wenatchee Valley averages 102 

days. 

Northwest of the proposed viticultural 

area, temperatures are too low for 

viticulture because of cold air drainage 

from the high Cascades and severe 

shading from steep mountainsides close 

to the lake. To the east and northeast of 

the proposed viticultural area, a ridge 

holds the lake-affected air masses in the 

lake basin. That ridge is used as the 

proposed eastern boundary. 

To further demonstrate the 

moderating lake effect, the petitioner 

provides evidence concerning vinekilling freezes which, according to the 

petitioner, occur less frequently in the 

proposed Lake Chelan viticultural area 

than in other viticultural areas in 

eastern Washington State. Winemaker 

Charles Ray Sandidge III, in an October 

2, 2006, e-mail to the petitioner, states 

that he conducted a study of weather 

data in the period 1934–84 in the 

regions of Wahluke Slope, Walla Walla, 

Chelan, East Wenatchee, and Roosevelt. 

Results, based on cold temperature 

readings, indicated that the Lake Chelan 

area averaged a killing freeze once in 17 

years, while the other Washington 

viticultural areas studied averaged 6 to 

8 years between vine-killing freezes. 

Mr. Sandidge states that Lake Chelan 

averages a heavy crop loss and a light 

vine loss every 17 years. Also, fall 

temperatures cool more rapidly and 

rains arrive about a week earlier than in 

areas to the south. Mr. Sandidge 

theorizes that while the Lake Chelan 

area experiences milder winter 

temperatures, the later spring bud break 

relates to the close proximity of the 

proposed viticultural area to the 

surrounding mountains. 

Soils 

According to the petitioner, the soils 

of the Lake Chelan Valley include layers 

of glacial debris, sediment from normal 

stream erosion and deposition after the 

glacial age, and airborne volcanic and 

nonvolcanic sediments. The lower parts 

of the deeper soils, 20 to 60 inches 

below the surface, predominantly 

formed in glacial sediments. The upper 

part of the soils formed in a mixture of 

large amounts of airborne volcanic 

pumice and ash from Glacier Peak and 

very small amounts of loess (windtransported material) overlying the 

glacial sediments. Thus, the soils 


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downwind from Glacier Peak and the 

north Cascades, including the soils in 

the proposed Lake Chelan viticultural 

area, are rich, about 3 to 40 percent by 

volume, in volcanic pumice and ash 

from a massive eruption of the Glacier 

Peak volcano about 12,000 years ago. 

The petitioner explains that bedrock 

in the proposed Lake Chelan viticultural 

area consists of Cretaceous-age granitic 

rocks and older metamorphic rocks, 

including amphibolite, schist, and 

biotite gneiss. Glaciers shattered and 

crushed the Cascade crystalline 

bedrock, creating glacial till and glacial 

outwash sediments that include biotite 

mica-rich cobbly, bouldery, gravelly, 

and coarse sandy materials. 

The soils in Lake Chelan Valley that 

are close to the surface, according to the 

petitioner, include sand- and fine 

gravel-sized pumice from the volcanic 

eruption of Glacier Peak to the 

northwest. Soils that have significant 

amounts of volcanic ash and pumice or 

clays weathered from glass have an 

unusually high available water capacity. 

The petitioner believes that the high 

content of volcanic material in the soils 

is a significant contributory factor to the 

successful regional viticulture and 

pomology over the past 100 years. 

The United States Department of 

Agriculture, National Cooperative Soil 

Survey, has identified 11 soil series 

within the proposed Lake Chelan 

viticultural area. Eight of these series 

consist of soils derived from volcanic 

glass, including ashy, cindery, 

pumiceous, glassy, vitrandic, medial, 

and amorphic soils, the petitioner 

explains. Only the Margerum and 

Dragoon series are silt loam, which is 

common on the Columbia Plateau. The 

information in the soil table below is 

from the Official Soil Series 

Descriptions accessed on October 18, 

2006, at the U.S. Department of 

Agriculture Web site, at: http:// 

soils.usda.gov/technical/classification/ 

osd/index.html. 

Soil series Soil order Excerpt from official description 

Margerum .................................................................. Mollisols .................................................................... Considerable pumice. 

Chelan ....................................................................... Mollisols .................................................................... Volcanic ash and pumice. 

Springdale .................................................................. Inceptisols ................................................................. Volcanic ash in the upper part. 

Kartar ......................................................................... Inceptisols ................................................................. Volcanic ash in the surface. 

Entiat .......................................................................... Mollisols .................................................................... Volcanic ash. 

Dinkelman .................................................................. Mollisols .................................................................... A component of volcanic ash. 

Tyee ........................................................................... Mollisols .................................................................... Volcanic ash. 

Swakane .................................................................... Mollisols .................................................................... Volcanic ash in the upper part. 

Psuga ......................................................................... Spodosols ................................................................. Volcanic ash. 

Mansonia ................................................................... Mollisols .................................................................... Volcanic ash and pumice. 

Dragoon ..................................................................... Mollisols .................................................................... Volcanic ash. 

The petitioner explains that many 

agricultural soils on the Columbia 

Plateau are silt loam throughout the soil 

profile, and are unlike those with a high 

content of volcanic pumice and ash in 

the Lake Chelan area and Cascade 

Range. Also, the mineralogy of the 

Columbia Plateau basalt sediments, 

deposited as alluvium derived from 

basaltic lavas, includes neither quartz 

nor mica, which are commonly found in 

the sediments in the Lake Chelan Valley 

area. 

A sampling of soils taken by the 

petitioner across the Columbia Plateau 

shows that the dominant parent 

materials are loess and dunes and have 

an average content of only 12 percent 

volcanic glass. This is substantially 

different from the high glass content of 

soils in the proposed viticultural area. 

The Pasco and Umatilla Basins, to the 

south of the proposed viticultural area, 

were the origins of most of the loess 

throughout the Columbia Plateau. Over 

the millennia the Lake Chelan Valley, 

outside the path of most of the wind 

transporting the loess, has received only 

minor deposits of loess. The petitioner 

asserts that the differences in soil 

between the Lake Chelan Valley and the 

Columbia Plateau impact infiltration 

and runoff of water, aeration of the soils, 

root penetration, and available water 

capacity. 

TTB Determination 

TTB concludes that this petition to 

establish the 24,040-acre Lake Chelan 

American viticultural area merits 

consideration and public comment, as 

invited in this notice. 

Boundary Description 

See the narrative boundary 

description of the petitioned-for 

viticultural area in the proposed 

regulatory text published at the end of 

this notice. 

Maps 

The petitioner provided the required 

maps, and we list them below in the 

proposed regulatory text. 

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. If we 

establish this proposed viticultural area, 

its name, ‘‘Lake Chelan,’’ will be 

recognized as a name of viticultural 

significance under 27 CFR 4.39(i)(3). 

The text of the proposed regulation 

clarifies this point. 

In addition, based on the evidence 

submitted, we believe that ‘‘Chelan’’

standing alone is locally and/or 

nationally known as referring to the 

region in Washington State 

encompassed by the proposed ‘‘Lake 

Chelan’’ viticultural area, and we 

therefore believe that consumers and 

vintners could reasonably attribute the 

quality, reputation, or other 

characteristic of wine made from grapes 

grown in the proposed ‘‘Lake Chelan’’

viticultural area to the name ‘‘Chelan’’

itself. Therefore, the proposed part 9 

regulatory text set forth in this 

document specifies both ‘‘Lake Chelan’’

and ‘‘Chelan’’ as terms of viticultural 

significance for purposes of part 4 of the 

TTB regulations. Also see 27 CFR 

4.39(i)(3), which provides that a name 

has viticultural significance when so 

determined by a TTB officer. 

Consequently, if this proposed text is 

adopted as a final rule, wine bottlers 

using ‘‘Lake Chelan’’ or ‘‘Chelan’’ 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 full name as an 

appellation of origin. 

For a wine to be labeled with a 

viticultural area name or with a brand 

name that includes a viticultural area 

name or other term specified as having 

viticultural significance in part 9 of the 

TTB regulations, at least 85 percent of 

the wine must be derived from grapes 

grown within the area represented by 

that name or other term, and the wine 

must meet the other conditions listed in 

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


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Federal Register / Vol. 73, No. 156 / Tuesday, August 12, 2008 / Proposed Rules 46841 

eligible to use the viticultural area name 

as an appellation of origin and that 

name or other term of viticultural 

significance 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 

or other term of viticultural significance 

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 previously 

approved label uses the name ‘‘Lake 

Chelan’’ or ‘‘Chelan’’ for a wine that 

does not meet the 85 percent standard, 

the previously approved label will be 

subject to revocation, upon the effective 

date of the approval of the Lake Chelan 

viticultural area. 

Different rules apply if a wine has a 

brand name containing a viticultural 

area name or other term of viticultural 

significance that was used as a brand 

name on a label approved before July 7, 

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

Public Participation 

Comments Invited 

We invite comments from interested 

members of the public on whether we 

should establish the proposed 

viticultural area. We are interested in 

receiving comments on the sufficiency 

and accuracy of the name, climatic, 

boundary, and other required 

information submitted in support of the 

petition. In addition, we are interested 

in receiving comments on the proposal 

to identify ‘‘Lake Chelan’’ and ‘‘Chelan’’

as terms of viticultural significance. 

Please provide any available specific 

information in support of your 

comments. We are also particularly 

interested in any comments on whether 

the evidence regarding name and 

distinguishing geographical features is 

sufficient to warrant the establishment 

of this new viticultural area within the 

existing Columbia Valley viticultural 

area. 

Because of the potential impact of the 

establishment of the proposed Lake 

Chelan viticultural area on wine labels 

that include the words ‘‘Lake Chelan’’ or 

the word ‘‘Chelan’’ as discussed above 

under Impact on Current Wine Labels, 

we are particularly interested in 

comments regarding whether there will 

be a conflict between the proposed area 

name and currently used brand names. 

If a commenter believes that a conflict 

will arise, the comment should describe 

the nature of that conflict, including any 

anticipated negative economic impact 

that approval of the proposed 

viticultural area will have on an existing 

viticultural enterprise. We are also 

interested in receiving suggestions for 

ways to avoid conflicts, for example by 

adopting a modified or different name 

for the viticultural area. 

Submitting Comments 

You may submit comments on this 

notice by using one of the following two 

methods: 

• Federal e-Rulemaking Portal: You 

may send comments via the online 

comment form posted with this notice 

within Docket No. TTB–2008–0006 on 

‘‘Regulations.gov,’’ the Federal erulemaking portal, at http:// 

www.regulations.gov. A direct link to 

that docket is available under Notice 

No. 87 on the TTB Web site at http:// 

www.ttb.gov/wine/ 

wine_rulemaking.shtml. Supplemental 

files may be attached to comments 

submitted via Regulations.gov. For 

complete instructions on how to use 

Regulations.gov, visit the site and click 

on ‘‘User Guide’’ under ‘‘How to Use 

this Site.’’

• U.S. Mail: You may send comments 

via postal mail to the Director, 

Regulations and Rulings Division, 

Alcohol and Tobacco Tax and Trade 

Bureau, P.O. Box 14412, Washington, 

DC 20044–4412. 

Please submit your comments by the 

closing date shown above in this notice. 

Your comments must reference Notice 

No. 87 and include your name and 

mailing address. Your comments also 

must be made in English, be legible, and 

be written in language acceptable for 

public disclosure. We do not 

acknowledge receipt of comments, and 

we consider all comments as originals. 

If you are commenting on behalf of an 

association, business, or other entity, 

your comment must include the entity’s 

name as well as your name and position 

title. If you comment via 

Regulations.gov, please enter the 

entity’s name in the ‘‘Organization’’

blank of the online comment form. If 

you comment via postal mail, please 

submit your entity’s comment on 

letterhead. 

You may also write to the 

Administrator before the comment 

closing date to ask for a public hearing. 

The Administrator reserves the right to 

determine whether to hold a public 

hearing. 

Confidentiality 

All submitted comments and 

attachments are part of the public record 

and subject to disclosure. Do not 

enclose any material in your comments 

that you consider to be confidential or 

inappropriate for public disclosure. 

Public Disclosure 

We will post, and you may view, 

copies of this notice, selected 

supporting materials, and any online or 

mailed comments we receive about this 

proposal within Docket No. TTB–2008–

0006 on the Federal e-rulemaking 

portal, Regulations.gov, at http:// 

www.regulations.gov. A direct link to 

that docket is available on the TTB Web 

site at http://www.ttb.gov/wine/ 

wine_rulemaking.shtml under Notice 

No. 87. You may also reach the relevant 

docket through the Regulations.gov 

search page at http:// 

www.regulations.gov. For instructions 

on how to use Regulations.gov, visit the 

site and click on ‘‘User Guide’’ under 

‘‘How to Use this Site.’’

All posted comments will display the 

commenter’s name, organization (if 

any), city, and State, and, in the case of 

mailed comments, all address 

information, including e-mail addresses. 

We may omit voluminous attachments 

or material that we consider unsuitable 

for posting. 

You also may view copies of this 

notice, all related petitions, maps and 

other supporting materials, and any 

electronic or mailed comments we 

receive about this proposal by 

appointment at the TTB Information 

Resource Center, 1310 G Street, NW., 

Washington, DC 20220. You may also 

obtain copies at 20 cents per 8.5- x 11- 

inch page. Contact our information 

specialist at the above address or by 

telephone at 202–927–2400 to schedule 

an appointment or to request copies of 

comments or other materials. 

Regulatory Flexibility Act 

We certify that this proposed 

regulation, if adopted, would not have 

a significant economic impact on a 

substantial number of small entities. 

The proposed regulation imposes no 

new reporting, recordkeeping, or other 

administrative requirement. Any benefit 

derived from the use of a viticultural 

area name would be 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 proposed rule is not a significant 

regulatory action as defined by 

Executive Order 12866. Therefore, it 

requires no regulatory assessment. 

Drafting Information 

N.A. Sutton of the Regulations and 

Rulings Division drafted this notice. 

List of Subjects in 27 CFR Part 9 

Wine. 


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46842 Federal Register / Vol. 73, No. 156 / Tuesday, August 12, 2008 / Proposed Rules 

Proposed Regulatory Amendment 

For the reasons discussed in the 

preamble, we propose to 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. Amend subpart C by adding § 9.___ 

to read as follows: 

§ 9.___ Lake Chelan. 

(a) Name. The name of the viticultural 

area described in this section is ‘‘Lake 

Chelan’’. For purposes of part 4 of this 

chapter, ‘‘Lake Chelan’’ and ‘‘Chelan’’

are terms of viticultural significance. 

(b) Approved maps. The five United 

States Geological Survey 1:24,000 scale 

topographic maps used to determine the 

boundary of the Lake Chelan viticultural 

area are titled: 

(1) Manson Quadrangle, 

Washington—Chelan Co., 1968, 

photorevised 1987; 

(2) Cooper Ridge Quadrangle—

Washington, 1968, photorevised 1987; 

(3) Chelan Quadrangle—Washington, 

1968, photorevised 1987; 

(4) Chelan Falls Quadrangle—

Washington, 1968, photorevised 1981; 

and 

(5) Winesap Quadrangle—

Washington, 1968, photorevised 1987. 

(c) Boundary. The Lake Chelan 

viticultural area is located in Chelan 

County, Washington. The boundary of 

the Lake Chelan viticultural area is as 

described below: 

(1) The beginning point is on the 

Manson map at the intersection of the 

east shore of Lake Chelan and the north 

boundary line of section 15, T28N/ 

R21E, north of Greens Landing. From 

the beginning point, proceed straight 

east 1.6 miles along the northern 

boundary line of sections 15 and 4 to its 

intersection with the 2,000-foot 

elevation line, T28N/R21E; then 

(2) Follow the meandering 2,000-foot 

elevation line generally southeast onto 

the Cooper Ridge map, crossing 

Purtterman Gulch; continue southeast 

onto the Chelan map and follow the 

meandering 2,000-foot elevation line 

onto the Chelan Falls map, over the 

Cagle Gulch, and then return to the 

Chelan map; continue generally 

southeast onto the Chelan Falls map and 

follow the 2,000-foot elevation line to 

section 8, T27N/R23E, to a point 0.3 

mile due north of BM 1404 at the 

intersection of U.S. Route 97 and State 

Route 151, T27N/ R23E; then 

(3) Proceed in a straight southsoutheast line 1.35 miles to its 

intersection with the section 20 north 

boundary line and the 1,000-foot 

elevation line, T27N/R23E; then 

(4) Proceed south-southwest along the 

1,000-foot contour line to its 

intersection with the section 20 south 

boundary line, south of Chelan Station 

and immediately west of State Route 

151, T27N/R23E; then 

(5) Proceed straight west along the 

south boundary line of sections 20 and 

19 for 0.75 mile to its intersection with 

the light-duty Gorge Road, as identified 

on the adjoining Chelan map, and the 

penstock flowing to the surge tank, 

T27N/R23E; then 

(6) Proceed northwest along Gorge 

Road, crossing onto the Chelan map, to 

the southeast corner of section 13, 

T27N/R22E; then 

(7) Proceed straight west along the 

south boundary line of sections 13, 14, 

15, 16, 17, and 18, and crossing onto the 

Winesap map in section 18, to its 

intersection with the R21E/R22E line, 

T27N; then 

(8) Proceed straight north along the 

R21E/R22E line to its intersection with 

the south boundary line of section 13 

and the 2,440-foot contour line, T27N/ 

R21E; then 

(9) Proceed straight west to the 

southwest corner of section 13, T27N/ 

R21E; then 

(10) Proceed straight north along the 

section 14 east boundary line to the 

northeast corner of section 14, T27N/ 

R21E; then 

(11) Proceed straight west along the 

section 14 north boundary line to the 

northwest corner of section 14, T27N/ 

R21E; then 

(12) Proceed straight north along the 

east boundary line of section 10 for 0.3 

mile to its intersection with the 2,520- 

foot contour line and a 90-degree turn 

in the Wenatchee National Forest (WNF) 

boundary line, T27N/R21E; then 

(13) Proceed straight west along the 

WNF boundary line 0.3 mile to its 

intersection with the 2,600-foot contour 

line and a 90-degree turn in the WNF 

boundary line, T27N/R21E; then 

(14) Proceed straight south along the 

WNF boundary line 0.3 mile to its 

intersection with the south boundary 

line of section 10, T27N/R21E; then 

(15) Proceed straight west along the 

south boundary lines of sections 10 and 

9 to the southeast corner of section 8, 

T27N/R21E; then 

(16) Proceed straight north along the 

east boundary line of section 8 to the 

northeast corner of section 8, T27N/ 

R21E; then 

(17) Proceed straight west along the 

north boundary line of section 8 to the 

northwest corner of section 8, T27N/ 

R21E; then 

(18) Proceed generally north along the 

east boundary line of section 6, crossing 

onto the Manson map, and continue 

along the east boundary lines of sections 

31 and 30, to the northeast corner of 

section 30, T28N/R21E; then 

(19) Proceed straight east along the 

north boundary lines of sections 29 and 

28 to the intersection with the east 

shoreline of Lake Chelan; and 

(20) Proceed generally northwest and 

northeast along the east shoreline of 

Lake Chelan to the point of beginning. 

Signed: July 8, 2008. 

John J. Manfreda, 

Administrator. 

[FR Doc. E8–18534 Filed 8–11–08; 8:45 am] 

BILLING CODE 4810–31–P 

DEPARTMENT OF THE TREASURY 

Alcohol and Tobacco Tax and Trade 

Bureau 

27 CFR Part 9 

[Notice No. 88; Docket No. TTB–2008–0007] 

RIN 1513–AB40 

Proposed Establishment of the Upper 

Mississippi River Valley Viticultural 

Area (2007R–055P) 

AGENCY: Alcohol and Tobacco Tax and 

Trade Bureau, Treasury. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: The Alcohol and Tobacco Tax 

and Trade Bureau proposes to establish 

the 29,914-square mile ‘‘Upper 

Mississippi River Valley’’ American 

viticultural area in portions of southeast 

Minnesota, southwest Wisconsin, 

northwest Illinois, and northeast Iowa. 

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. We invite comments on this 

proposed addition to our regulations. 

DATES: We must receive written 

comments on or before October 14, 

2008. 

ADDRESSES: You may send comments on 

this notice to one of the following 

addresses: 

• http://www.regulations.gov (via the 

online comment form for this notice as 

posted within Docket No. TTB–2008–

0007 at ‘‘Regulations.gov,’’ the Federal 

e-rulemaking portal); or 


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