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--- schema: federal-register doc_type: fedreg source_file: FR-2006-03-30.xml --- 71 61 Thursday, March 30, 2006 Contents Agricultural Agricultural Marketing Service RULES Spearmint oil produced in— Far West, 16015-16019 06-3080 Agriculture Agriculture Department See Agricultural Marketing Service See Forest Service NOTICES Agency information collection activities; proposals, submissions, and approvals, E6-4615 16113-16114 E6-4637 Antitrust Antitrust Division NOTICES Competitive impact statements and proposed consent judgments:
Watchmakers of Switzerland Information Center, Inc., 16180 06-3059 Army Army Department See Engineers Corps Arts Arts and Humanities, National Foundation See National Foundation on the Arts and the Humanities Civil Civil Rights Commission NOTICES Meetings; Sunshine Act, 16127 06-3150 Coast Guard Coast Guard RULES Drawbridge operations: New York, 16043 06-3043 PROPOSED RULES Ports and waterways safety; regulated navigation areas, safety zones, security zones, etc.: Broad Bay, Virginia Beach, VA, 16070-16072 E6-4610 Commerce Commerce Department See International Trade Administration See National Oceanic and Atmospheric Administration See Patent and Trademark Office Commission of Fine Commission of Fine Arts NOTICES Meetings, 16127 06-3069 Defense Defense Department See Engineers Corps See Navy Department NOTICES Meetings:
Defense Policy Board Advisory Committee, 16127 06-3074 Privacy Act; systems of records, 16127-16130 06-3076 Education Education Department NOTICES Meetings: Tribal Colleges and Universities, President's Board of Advisors, 16131 06-3077 Energy Energy Department See Federal Energy Regulatory Commission Engineers Engineers Corps NOTICES Meetings: Coastal Engineering Research Board; correction, 16190 C6-2859 EPA Environmental Protection Agency RULES Air pollution control; new motor vehicles and engines:
Tier 2 motor vehicles; light-duty diesel emissions, 16053-16060 06-2979 Air quality implementation plans; approval and promulgation; various States: Iowa, 16048-16053 06-3032 06-3036 PROPOSED RULES Air pollution control; new motor vehicles and engines: Tier 2 motor vehicles; light-duty diesel emissions, 16087-16090 06-2980 Air quality implementation plans; approval and promulgation; various States: Iowa, 06-3033 16086-16087 06-3035 NOTICES Meetings: Mid-Atlantic/Northeast Visibility Union, 16154-16155 06-3040 FAA Federal Aviation Administration RULES Airworthiness directives:
Airbus, 16021-16033 06-2959 06-2961 06-3119 Boeing, 16019-16021 06-2958 Bombardier, 16023-16025 06-2960 Cirrus Design Corp., 16027-16029 06-2982 PROPOSED RULES Airworthiness directives: Boeing, 16061-16066 E6-4619 E6-4620 Gulfstream, 16066-16070 E6-4621 Federal Energy Federal Energy Regulatory Commission NOTICES Agency information collection activities; proposals, submissions, and approvals, 16132-16134 E6-4591 E6-4592 Complaints filed: H-P Energy Resources, LLC, 16137 E6-4644 Electric rate and corporate regulation combined filings, 16137-16140 E6-4596 E6-4597 E6-4656 Environmental statements; availability, etc.:
PacifiCorp et al., 16140-16141 E6-4648 South Carolina Electric & Gas Co., 16141 E6-4588 Environmental statements; notice of intent: Kinder Morgan Louisiana Pipeline, L.L.C., 16141-16143 E6-4643 Southern LNG, Inc., et al., 16143-16148 E6-4654 Hydroelectric applications, E6-4593 16148-16154 E6-4646 E6-4647 E6-4649 E6-4650 E6-4651 E6-4652 E6-4653 *Applications, hearings, determinations, etc.:* California Independent System Operator Corp., 16134 E6-4590 Dominion Transmission, Inc., 16134-16135 E6-4594 E6-4655 Enbridge Offshore Facilities, LLC, 16135-16136 E6-4645 Northwest Pipeline Corp., 16136-16137 E6-4589 Federal Highway Federal Highway Administration NOTICES Highway planning and construction; licenses, permits, approvals, etc.:
Lackawanna County, PA, 16186 06-3070 FTC Federal Trade Commission NOTICES Agency information collection activities; proposals, submissions, and approvals, 16155-16158 06-3086 Fine Arts Fine Arts Commission See Commission of Fine Arts Fish Fish and Wildlife Service PROPOSED RULES Endangered and threatened species: Preble's meadow jumping mouse; delisting, 16090-16091 E6-4572 NOTICES Endangered and threatened species: Gray bat, Iowa Pleistocene snail, decurrent false aster, Pitcher's thistle, and western prairie fringed orchid; 5-year review, 16176-16177 E6-4616 Food Food and Drug Administration RULES Organization, functions, and authority delegations:
Combination Products Office; telephone number change, 16033 06-3046 Foreign Foreign Assets Control Office RULES Libyan, Angola, and rough diamond (Liberia) sanctions regulations; CFR parts removed, 16042-16043 06-3024 Forest Forest Service NOTICES Meetings: Resource Advisory Committees— Crook County, 16114 06-3079 Lincoln County, 16114 06-3071 National Forest System lands: Secure Rural Schools Program; land sales initiative, 16114-16115 06-3087 Government Government Ethics Office NOTICES Agency information collection activities; proposals, submissions, and approvals, 16158-16160 E6-4661 Health Health and Human Services Department See Food and Drug Administration See Health Resources and Services Administration See Indian Health Service See National Institutes of Health See Substance Abuse and Mental Health Services Administration Health Health Resources and Services Administration NOTICES Agency information collection activities; proposals, submissions, and approvals, 16160-16161 E6-4608 Homeland Homeland Security Department See Coast Guard NOTICES Meetings:
National Infrastructure Advisory Council, 16174-16175 E6-4634 Housing Housing and Urban Development Department NOTICES Agency information collection activities; proposals, submissions, and approvals, 16175 E6-4583 Indian Indian Health Service NOTICES Agency information collection activities; proposals, submissions, and approvals, 16161-16162 06-3057 Grants and cooperative agreements; availability, etc.: Children and Youth Projects, 16162-16169 06-3008 Interior Interior Department See Fish and Wildlife Service See Minerals Management Service NOTICES Committees; establishment, renewal, termination, etc.:
Sport Fishing and Boating Partnership Advisory Council, 16175-16176 E6-4618 International International Trade Administration NOTICES Antidumping: Artist canvas from— China, 16116-16120 E6-4657 Petroleum wax candles from— China, 16120 E6-4658 Softwood lumber products from— Canada, 16120-16121 E6-4659 Antidumping and countervailing duties: Brass sheet and strip from— Brazil and Canada, 16115-16116 E6-4660 International International Trade Commission NOTICES Import investigations:
Ammonium nitrate from— Russia, 16177-16178 E6-4640 Carbon steel products from— Various countries, 16178-16179 E6-4642 U.S.-Malaysia Free Trade Agreement; duty-free imports, probable economic effect, 16179-16180 E6-4609 Justice Justice Department See Antitrust Division Labor Labor Department NOTICES Organization, functions, and authority delegations: Job Corps Office, 16192 06-3081 Minerals Minerals Management Service RULES Outer Continental Shelf; oil, gas, and sulphur operations:
Geological and geophysical explorations; proprietary terms and data disclosure, 16033-16040 06-3009 National Foundation National Foundation on the Arts and the Humanities NOTICES Agency information collection activities; proposals, submissions, and approvals, 16180-16181 06-3056 Meetings: Humanities Panel, 16181-16182 E6-4638 NIH National Institutes of Health NOTICES Committees; establishment, renewal, termination, etc.: National Cancer Institute Clinical Trials Advisory Committee, 16169 06-3096 Inventions, Government-owned; availability for licensing, 16169-16170 E6-4611 Meetings:
Director's Council of Public Representatives, 16170-16171 06-3094 National Institute of Allergy and Infectious Diseases, 16171-16172 06-3092 06-3095 National Institute of Child Health and Human Development, 16172 06-3098 National Institute of General Medical Sciences, 16172 06-3097 National Institute of Neurological Disorders and Stroke, 16171-16172 06-3093 National Library of Medicine, 16173 06-3054 Scientific Review Center, 16173-16174 06-3053 NOAA National Oceanic and Atmospheric Administration PROPOSED RULES Fishery conservation and management:
Northeastern United States fisheries— Atlantic sea scallop, 16091-16111 06-3039 Northeast multispecies, 16111-16112 E6-4665 NOTICES Agency information collection activities; proposals, submissions, and approvals, E6-4613 16121-16122 E6-4614 Fishery conservation and management: Northeastern United States fisheries— Northeast multispecies, 16122-16125 E6-4664 Grants and cooperative agreements; availability, etc.: Faculty and Student Intern Research Program, 16125-16126 06-3084 Navy Navy Department NOTICES Privacy Act; systems of records, 16130-16131 06-3075 Patent Patent and Trademark Office PROPOSED RULES Patent cases:
Ex parte and inter partes reexamination requirements; revisions and technical corrections, 16072-16086 06-2962 Postal Postal Service RULES Domestic Mail Manual: Parcel Return Service; permanent classification, 16043-16048 06-3117 SEC Securities and Exchange Commission NOTICES Agency information collection activities; proposals, submissions, and approvals, E6-4623 16182-16183 E6-4624 E6-4625 Self-regulatory organizations; proposed rule changes: NYSE Arca, Inc., 16183-16185 E6-4612 State State Department NOTICES Culturally significant objects imported for exhibition:
Gospel of Judas, 16185 E6-4635 Substance Substance Abuse and Mental Health Services Administration NOTICES Meetings: SAMHSA National Advisory Council, 16174 E6-4617 Transportation Transportation Department See Federal Aviation Administration See Federal Highway Administration NOTICES Aviation proceedings: Agreements filed; weekly receipts, 16185-16186 E6-4630 Treasury Treasury Department See Foreign Assets Control Office RULES Currency and foreign transactions; financial reporting and recordkeeping requirements:
USA PATRIOT Act; implementation— Anti-money laundering programs; special due diligence programs for foreign accounts, 16040-16042 06-3045 NOTICES Agency information collection activities; proposals, submissions, and approvals, 16186-16189 E6-4626 E6-4627 E6-4628 E6-4629 E6-4632 Separate Parts In This Issue Part II Labor Department, 16192 06-3081 Reader Aids Consult the Reader Aids section at the end of this issue for phone numbers, online resources, finding aids, reminders, and notice of recently enacted public laws.
To subscribe to the Federal Register Table of Contents LISTSERV electronic mailing list, go to http://listserv.access.gpo.gov and select Online mailing list archives, FEDREGTOC-L, Join or leave the list (or change settings); then follow the instructions. 71 61 Thursday, March 30, 2006 Rules and Regulations DEPARTMENT OF AGRICULTURE Agricultural Marketing Service 7 CFR Part 985 [Docket No. FV05-985-2 FIR A] Marketing Order Regulating the Handling of Spearmint Oil Produced in the Far West;
Revision of the Salable Quantity and Allotment Percentage for Class 1 (Scotch) and Class 3 (Native) Spearmint Oil for the 2005-2006 Marketing Year AGENCY: Agricultural Marketing Service, USDA. ACTION: Final rule. SUMMARY: The Department of Agriculture
(USDA)is adopting, as a final rule, without change, the provisions of two interim final rules that increased the quantity of Class 1 (Scotch) and Class 3 (Native) spearmint oil that handlers may purchase from, or handle for, producers during the 2005-2006 marketing year. This rule continues in effect the actions that increased the Scotch spearmint oil salable quantity by an additional 385,489 pounds from 677,409 pounds to 1,062,898 pounds, and the allotment percentage by an additional 20 percent from 35 percent to 55 percent. In addition, this rule continues in effect the actions that increased the Native spearmint oil salable quantity by an additional 303,497 pounds from 867,958 pounds to 1,171,455 pounds, and the allotment percentage by an additional 14 percent from 40 percent to 54 percent. The marketing order regulates the handling of spearmint oil produced in the Far West and is administered locally by the Spearmint Oil Administrative Committee (Committee). The Committee recommended this rule for the purpose of avoiding extreme fluctuations in supplies and prices and to help maintain stability in the Far West spearmint oil market. DATES: *Effective Date:* May 1, 2006. FOR FURTHER INFORMATION CONTACT: Susan M. Hiller, Northwest Marketing Field Office, Marketing Order Administration Branch, Fruit and Vegetable Programs, AMS, USDA; Telephone:
(503)326-2724, Fax:
(503)326-7440; or George Kelhart, Technical Advisor, Marketing Order Administration Branch, Fruit and Vegetable Programs, AMS, USDA, 1400 Independence Avenue, SW., STOP 0237, Washington, DC 20250-0237; Telephone:
(202)720-2491, Fax:
(202)720-8938. Small businesses may request information on complying with this regulation by contacting Jay Guerber, Marketing Order Administration Branch, Fruit and Vegetable Programs, AMS, USDA, 1400 Independence Avenue, SW., STOP 0237, Washington, DC 20250-0237; Telephone:
(202)720-2491, Fax:
(202)720-8938, or E-mail: *Jay.Guerber@usda.gov.* SUPPLEMENTARY INFORMATION: This rule is issued under Marketing Order No. 985 (7 CFR part 985), as amended, regulating the handling of spearmint oil produced in the Far West (Washington, Idaho, Oregon, and designated parts of Nevada and Utah), hereinafter referred to as the “order.” The 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.” USDA is issuing this rule in conformance with Executive Order 12866. This rule has been reviewed under Executive Order 12988, 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 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 USDA 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 USDA 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 to review USDA's ruling on the petition, provided an action is filed not later than 20 days after the date of the entry of the ruling. The initial salable quantities and allotment percentages for Scotch and Native spearmint oil for the 2005-2006 marketing year was recommended by the Committee at its October 6, 2004, meeting. The Committee recommended salable quantities of 677,409 pounds and 867,958 pounds, and allotment percentages of 35 percent and 40 percent, respectively, for Scotch and Native spearmint oil. A proposed rule was published in the **Federal Register** on January 12, 2005 (70 FR 2027). Comments on the proposed rule were solicited from interested persons until February 11, 2005. No comments were received. Subsequently, a final rule establishing the salable quantities and allotment percentages for Scotch and Native spearmint oil for the 2005-2006 marketing year was published in the **Federal Register** on March 24, 2005 (70 FR 14969). Pursuant to authority contained in §§ 985.50, 985.51, and 985.52 of the order, the Committee has made recommendations to increase the quantity of Scotch and Native spearmint oil that handlers may purchase from, or handle for, producers during the 2005-2006 marketing year, which ends on May 31, 2006. The first revision was published as an interim final rule in the **Federal Register** on September 23, 2005 (70 FR 55713), which increased the 2005-2006 marketing year salable quantities and allotment percentages for Scotch and Native spearmint oil to 1,062,898 pounds and 55 percent, and 1,019,600 pounds and 47 percent, respectively. The second revision was published as an amended interim final rule in the **Federal Register** on December 5, 2005 (70 FR 72355), which further increased the Native spearmint oil salable quantity by an additional 151,855 pounds from 1,019,600 pounds to 1,171,455 pounds and the allotment percentage by an additional 7 percent from 47 percent to 54 percent. The Committee did not make a recommendation to increase the Scotch spearmint oil salable quantity or allotment percentage by an additional amount due to stable market conditions. Thus, taking into consideration the following discussion on adjustments, the 2005-2006 marketing year salable quantity and allotment percentage for Scotch spearmint oil is increased to 1,062,898 pounds and 55 percent, respectively. The 2005-2006 marketing year salable quantity and allotment percentage for Native spearmint oil is increased to 1,171,455 pounds and 54 percent, respectively. The salable quantity is the total quantity of each class of oil that handlers may purchase from, or handle for, producers during the marketing year. 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 individual allotment base for the applicable class of spearmint oil. The total industry allotment base for Scotch spearmint oil for the 2005-2006 marketing year was estimated by the Committee at the October 6, 2004, meeting at 1,935,455 pounds. This was later revised at the beginning of the 2005-2006 marketing year to 1,932,542 pounds to reflect a 2004-2005 marketing year loss of 2,913 pounds of base due to non-production of some producers' total annual allotments. When the revised total allotment base of 1,932,542 pounds is applied to the originally established allotment percentage of 35 percent, the initially established 2005-2006 marketing year salable quantity of 677,409 pounds is effectively modified to 676,390 pounds. The same situation applies to Native spearmint oil where the Committee estimated that the total industry allotment base for the 2005-2006 marketing year was 2,169,894 pounds, and was revised at the beginning of the 2005-2006 marketing year to 2,169,362 pounds to reflect a 2004-2005 marketing year loss of 532 pounds of base due to non-production of some producers' total annual allotments. When the revised total allotment base of 2,169,362 pounds is applied to the originally established allotment percentage of 40 percent, the initially established 2005-2006 marketing year salable quantity of 867,958 pounds is effectively modified to 867,745 pounds. By increasing the salable quantity and allotment percentage, this final rule adopts the provisions of two interim final rules that made an additional amount of Scotch and Native spearmint oil available by releasing oil from the reserve pool. When applied to each individual producer, this allotment percentage increase allows each producer to take up to an amount equal to their allotment base from their respective oil reserve. In addition, pursuant to §§ 985.56 and 985.156, producers with excess oil are not able to transfer such excess oil to other producers to fill deficiencies in annual allotments after October 31 of each marketing year. The following table summarizes the Committee recommendation: Scotch Spearmint Oil Recommendation
(A)Estimated 2005-2006 Allotment Base—1,935,455 pounds. This is the estimate on which the original 2005-2006 Scotch spearmint oil salable quantity and allotment percentage was based.
(B)Revised 2005-2006 Allotment Base—1,932,542 pounds. This is 2,913 pounds less than the estimated allotment base of 1,935,455 pounds. This is less because some producers failed to produce all of their 2004-2005 allotment.
(C)Initial 2005-2006 Allotment Percentage—35 percent. This was recommended by the Committee on October 6, 2004.
(D)Initial 2005-2006 Salable Quantity—677,409. This figure is 35 percent of 1,935,455 pounds.
(E)Initial Adjustment to the 2005-2006 Salable Quantity—676,390 pounds. This figure reflects the salable quantity initially available after the beginning of the 2005-2006 marketing year due to the 2,913 pound reduction in the industry allotment base to 1,932,542 pounds.
(F)First Revision to the 2005-2006 Salable Quantity and Allotment Percentage:
(1)Increase in Allotment Percentage—20 percent. The Committee recommended a 20 percent increase at its August 24, 2005, meeting.
(2)2005-2006 Allotment Percentage—55 percent. This figure is derived by adding the increase of 20 percent to the initial 2005-2006 allotment percentage of 35 percent.
(3)Calculated Revised 2005-2006 Salable Quantity—1,062,898 pounds. This figure is 55 percent of the revised 2005-2006 allotment base of 1,932,542 pounds.
(4)Computed Increase in the 2005-2006 Salable Quantity—386,508 pounds. This figure is 20 percent of the revised 2005-2006 allotment base of 1,932,542 pounds.
(G)No Second Revision to the 2005-2006 Salable quantity and Allotment Percentage. In making this recommendation, the Committee considered all available information on price, supply, and demand. The Committee also considered reports and other information from handlers and producers in attendance at the meeting and reports given by the Committee manager from handlers who were not in attendance. The 2005-2006 marketing year began on June 1, 2005. Handlers have reported purchases and committed sales of 861,579 pounds of Scotch spearmint oil for the period of June 1, 2005, through February 21, 2006. This amount is 117 percent of the total sales for the five-year average of 736,991 pounds. Handlers estimated the total demand for the 2005-2006 marketing year could be between 917,745 pounds to 937,745 pounds. These amounts exceed the five-year average for an entire marketing year by 180,754 pounds to 200,754 pounds. Therefore, based on past history, the industry may not be able to meet market demand without this increase. When the Committee made its initial recommendation for the establishment of the Scotch spearmint oil salable quantity and allotment percentage for the 2005-2006 marketing year, it had anticipated that the year would end with an ample available supply. Native Spearmint Oil Recommendation
(A)Estimated 2005-2006 Allotment Base—2,169,894 pounds. This is the estimate on which the original 2005-2006 Native spearmint oil salable quantity and allotment percentage was based.
(B)Revised 2005-2006 Allotment Base—2,169,362 pounds. This is 532 pounds less than the estimated allotment base of 2,169,894 pounds. This is less because some producers failed to produce all of their 2004-2005 allotment.
(C)Initial 2005-2006 Allotment Percentage—40 percent. This was recommended by the Committee on October 6, 2004.
(D)Initial 2005-2006 Salable Quantity—867,958. This figure is 40 percent of 2,169,894 pounds.
(E)Initial Adjustment to the 2005-2006 Salable Quantity—867,745 pounds. This figure reflects the salable quantity initially available after the beginning of the 2005-2006 marketing year due to the 532 pound reduction in the industry allotment base to 2,169,362 pounds.
(F)First Revision to the 2005-2006 Salable Quantity and Allotment Percentage:
(1)Increase in Allotment Percentage—7 percent. The Committee recommended a 7 percent increase at its August 24, 2005, meeting.
(2)2005-2006 Allotment Percentage—47 percent. This figure is derived by adding the increase of 7 percent to the initial 2005-2006 allotment percentage of 40 percent.
(3)Calculated Revised 2005-2006 Salable Quantity—1,019,600 pounds. This figure is 47 percent of the revised 2005-2006 allotment base of 2,169,362 pounds.
(4)Computed Increase in the 2005-2006 Salable Quantity—151,855 pounds. This figure is 7 percent of the revised 2005-2006 allotment base of 2,169,362 pounds.
(G)Second Revision to the 2005-2006 Salable Quantity and Allotment Percentage:
(1)Increase in Allotment Percentage—7 percent. The Committee recommended a 7 percent increase at its October 5, 2005, meeting.
(2)2005-2006 Allotment Percentage—54 percent. This figure is derived by adding the increase of 7 percent to the first revised 2005-2006 allotment percentage of 47 percent.
(3)Calculated Revised 2005-2006 Salable Quantity—1,171,455 pounds. This figure is 54 percent of the revised 2005-2006 allotment base of 2,169,362 pounds.
(4)Computed Increase in the 2005-2006 Salable Quantity—151,855 pounds. This figure is 7 percent of the revised 2005-2006 allotment base of 2,169,362 pounds. In making this recommendation, the Committee considered all available information on price, supply, and demand. The Committee also considered reports and other information from handlers and producers in attendance at the meeting and reports given by the Committee manager from handlers who were not in attendance. The 2005-2006 marketing year began on June 1, 2005. Handlers have reported purchases and committed sales of 1,060,441 pounds of Native spearmint oil for the period of June 1, 2005, through February 21, 2006. This amount is 110 percent of the total sales for the five-year average of 962,377 pounds. Handlers estimated the total demand for the 2005-2006 marketing year could be between 1,100,000 pounds to 1,300,000 pounds. These amounts exceed the five-year average for an entire marketing year by 137,623 pounds to 337,623 pounds. Therefore, based on past history, the industry may not be able to meet market demand without these increases. When the Committee made its initial recommendation for the establishment of the Native spearmint oil salable quantity and allotment percentage for the 2005-2006 marketing year, it had anticipated that the year would end with an ample available supply. Based on its analysis of available information, USDA has determined that the salable quantity and allotment percentage for Scotch spearmint oil for the 2005-2006 marketing year should be increased to 1,062,898 pounds and 55 percent, respectively. In addition, USDA has determined that the salable quantity and allotment percentage for Native spearmint oil for the 2005-2006 marketing year should be increased to 1,171,455 pounds and 54 percent, respectively. This rule finalizes two interim final rules that relaxed the regulation of Scotch and Native spearmint oil and will allow producers to meet market needs and improve returns. In conjunction with the issuance of this rule, the Committee's revised marketing policy statement for the 2005-2006 marketing year has been reviewed by USDA. The Committee's marketing policy statement, a requirement whenever the Committee recommends implementing volume regulations or recommends revisions to existing volume regulations, meets the intent of § 985.50 of the order. During its discussion of revising the 2005-2006 salable quantities and allotment percentages, the Committee considered:
(1)The estimated quantity of salable oil of each class held by producers and handlers;
(2)the estimated demand for each class of oil;
(3)prospective production of each class of oil;
(4)total of allotment bases of each class of oil for the current marketing year and the estimated total of allotment bases of each class for the ensuing marketing year;
(5)the quantity of reserve oil, by class, in storage;
(6)producer prices of oil, including prices for each class of oil; and
(7)general market conditions for each class of oil, including whether the estimated season average price to producers is likely to exceed parity. Conformity with USDA's “Guidelines for Fruit, Vegetable, and Specialty Crop Marketing Orders” has also been reviewed and confirmed. The increases in the Scotch and Native spearmint oil salable quantities and allotment percentages allows for anticipated market needs for both classes of oil. In determining anticipated market needs, consideration by the Committee included historical sales, and changes and trends in production and demand. Final Regulatory Flexibility Analysis Pursuant to requirements set forth in the Regulatory Flexibility Act (RFA), the Agricultural Marketing Service
(AMS)has considered the economic impact of this action on small entities. Accordingly, AMS has prepared this final regulatory flexibility analysis. 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 the 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 subject to regulation under the order, and approximately 59 producers of Scotch spearmint oil and approximately 91 producers of Native spearmint oil in the regulated production area. Small agricultural service firms are defined by the Small Business Administration
(SBA)(13 CFR 121.201) as those having annual receipts of less than $6,000,000, and small agricultural producers are defined as those having annual receipts of less than $750,000. Based on the SBA's definition of small entities, the Committee estimates that 2 of the 8 handlers regulated by the order could be considered small entities. Most of the handlers are large corporations involved in the international trading of essential oils and the products of essential oils. In addition, the Committee estimates that 19 of the 59 Scotch spearmint oil producers and 21 of the 91 Native spearmint oil producers could be classified as small entities under the SBA definition. Thus, a majority of handlers and producers of Far West spearmint oil may not 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 is not exclusively dependent on the production of spearmint oil. A typical spearmint oil-producing operation has enough acreage for rotation such that the total acreage required to produce the crop is about one-third spearmint and two-thirds rotational crops. Thus, the typical spearmint oil producer has to have considerably more acreage than is planted to spearmint during any given season. Crop rotation is an essential cultural practice in the production of spearmint for weed, insect, and disease control. To remain economically viable with the added costs associated with spearmint oil production, most spearmint oil-producing farms fall into the SBA category of large businesses. Small spearmint oil producers generally are not as extensively diversified as larger ones and as such are more at risk to market fluctuations. Such small producers generally need to market their entire annual crop and do not have the luxury of having other crops to cushion seasons with poor spearmint oil returns. Conversely, large diversified producers have the potential to endure one or more seasons of poor spearmint oil markets because income from alternative crops could support the operation for a period of time. Being reasonably assured of a stable price and market provides small producing entities with the ability to maintain proper cash flow and to meet annual expenses. Thus, the market and price stability provided by the order potentially benefit the small producer more than such provisions benefit large producers. Even though a majority of handlers and producers of spearmint oil may not be classified as small entities, the volume control feature of this order has small entity orientation. This final rule adopts, without change, the provisions of the interim final rule published in the **Federal Register** on September 23, 2005 (70 FR 55713) and amended on December 5, 2005 (70 FR 72355). Specifically, the rule published on September 23, 2005, increased the 2005-2006 marketing year salable quantities and allotment percentages for Scotch and Native spearmint oil to 1,062,898 pounds and 55 percent, and 1,019,600 pounds and 47 percent, respectively. The rule that subsequently amended the interim final rule was published on December 5, 2005, increased the Native spearmint oil salable quantity by an additional 151,855 pounds from 1,019,600 pounds to 1,171,455 pounds, and the allotment percentage by an additional 7 percent from 47 percent to 54 percent. The Committee did not make a recommendation to further increase the Scotch spearmint oil salable quantity or allotment percentage due to stable market conditions. This rule finalizes two interim final rules that relaxed the Scotch and Native spearmint oil volume regulations and allows producers to meet market needs and improve returns. An econometric model was used to assess the impact that volume control has on the prices producers receive for their commodity. Without volume control, spearmint oil markets would likely be over-supplied, resulting in low producer prices and a large volume of oil stored and carried over to the next crop year. The model estimates how much lower producer prices would likely be in the absence of volume controls. The recommended allotment percentages, upon which 2005-2006 producer allotments are based, are 55 percent for Scotch (a 20 percentage point increase from the original allotment percentage of 35 percent) and 54 percent for Native (a 14 percentage point increase from the original salable percentage of 40 percent). Without volume controls, producers would not be limited to these allotment levels, and could produce and sell additional spearmint oil. The econometric model estimated a $1.32 decline in the season average producer price per pound (for both classes of spearmint oil) resulting from the higher quantities that would be produced and marketed if volume controls were not used ( *i.e.* , if the salable percentages were set at 100 percent). Loosening the volume control restriction by increasing the allotment percentages resulted in this revised price decline estimate of $1.32 per pound if volume controls were not used. The initial price decline estimate of $1.60 per pound was based on the 2005-2006 allotment percentages (35 percent for Scotch and 40 percent for Native) published in the **Federal Register** on March 24, 2005 (70 FR 14969). The 2004 Far West producer price for both classes of spearmint oil was $9.48 per pound. The surplus situation for the spearmint oil market that would exist without volume controls in 2005-2006 also would likely dampen prospects for improved producer prices in future years because of the buildup in stocks. The use of volume controls allows the industry to fully supply spearmint oil markets while avoiding the negative consequences of over-supplying these markets. The use of volume controls is believed to have little or no effect on consumer prices of products containing spearmint oil and will not result in fewer retail sales of such products. Based on projections available at the meetings, the Committee considered alternatives to each of the increases finalized herein. The Committee not only considered leaving the salable quantity and allotment percentage unchanged, but also looked at various increases ranging from 0 percent to 100 percent. The Committee reached each of its recommendations to increase the salable quantity and allotment percentage for Scotch and Native spearmint oil after careful consideration of all available information, and believes that the levels recommended will achieve the objectives sought. Without the increases, the Committee believes the industry would not be able to meet market needs. This rule will not impose any additional reporting or recordkeeping requirements on either small or large spearmint oil handlers. As with all Federal marketing order programs, reports and forms are periodically reviewed to reduce information requirements and duplication by industry and public sector agencies. AMS is committed to compliance with the Government Paperwork Elimination Act (GPEA), which requires Government agencies in general to provide the public the option of submitting information or transacting business electronically to the maximum extent possible. In addition, USDA has not identified any relevant Federal rules that duplicate, overlap or conflict with this rule. Further, the Committee meetings were widely publicized throughout the spearmint oil industry and all interested persons were invited to attend and participate in Committee deliberations. Like all Committee meetings, the August 24, 2005, and October 5, 2005, meetings were public meetings and all entities, both large and small, were able to express their views on modification of the 2005-2006 salable quantities and allotment percentages. The first revision was published as an interim final rule in the **Federal Register** on September 23, 2005. Comments on the interim final rule were solicited from interested persons until November 22, 2005. No comments were received. The second revision was published as an amended interim final rule in the **Federal Register** on December 5, 2005. Comments on the amended interim final rule were solicited from interested persons until February 3, 2006. No comments were received. Copies of each of these rules were mailed by the Committee's staff to all committee members, producers, handlers, and other interested persons. In addition, each of these rules was made available through the Internet by USDA and the Office of the Federal Register. A small business guide on complying with fruit, vegetable, and specialty crop marketing agreements and orders may be viewed at: *http://www.ams.usda.gov/fv/moab.html* . Any questions about the compliance guide should be sent to Jay Guerber at the previously mentioned address in the FOR FURTHER INFORMATION CONTACT section. After consideration of all relevant material presented, including the Committee's recommendation, and other information, it is found that finalizing the interim final rules, without change, as published in the **Federal Register** (70 FR 55713, September 23, 2005, and 70 FR 72355, December 5, 2005) 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. PART 985—MARKETING ORDER REGULATING THE HANDLING OF SPEARMINT OIL PRODUCED IN THE FAR WEST Accordingly, the interim final rules amending 7 CFR part 985, which were published at 70 FR 55713 on September 23, 2005 and 70 FR 72355 on December 5, 2005, are adopted as a final rule without change. Dated: March 27, 2006. Lloyd C. Day, Administrator, Agricultural Marketing Service. [FR Doc. 06-3080 Filed 3-29-06; 8:45 am]
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- 7 CFR 985
- 7 USC 601-674
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