82_FR_57152 82 FR 56922 - Marketing Order Regulating the Handling of Spearmint Oil Produced in the Far West; Revision of the Salable Quantity and Allotment Percentage for Class 3 (Native) Spearmint Oil for the 2017-2018 Marketing Year

82 FR 56922 - Marketing Order Regulating the Handling of Spearmint Oil Produced in the Far West; Revision of the Salable Quantity and Allotment Percentage for Class 3 (Native) Spearmint Oil for the 2017-2018 Marketing Year

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 82, Issue 230 (December 1, 2017)

Page Range56922-56926
FR Document2017-25965

This proposed rule would implement a recommendation from the Far West Spearmint Oil Administrative Committee (Committee) to revise the quantity of Class 3 (Native) spearmint oil that handlers may purchase from, or handle on behalf of, producers during the 2017-2018 marketing year, which began on June 1, 2017. This proposal would increase the Native spearmint oil salable quantity and the allotment percentage. The Committee recommended this action for the purpose of avoiding extreme fluctuations in supplies and prices and to help maintain stability in the Far West spearmint oil market. This proposal also contains a formatting change to subpart references to bring the language into conformance with the Office of the Federal Register requirements.

Federal Register, Volume 82 Issue 230 (Friday, December 1, 2017)
[Federal Register Volume 82, Number 230 (Friday, December 1, 2017)]
[Proposed Rules]
[Pages 56922-56926]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-25965]


========================================================================
Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

========================================================================


Federal Register / Vol. 82, No. 230 / Friday, December 1, 2017 / 
Proposed Rules

[[Page 56922]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 985

[Doc. No. AMS-SC-16-0107; SC17-985-1A PR]


Marketing Order Regulating the Handling of Spearmint Oil Produced 
in the Far West; Revision of the Salable Quantity and Allotment 
Percentage for Class 3 (Native) Spearmint Oil for the 2017-2018 
Marketing Year

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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

SUMMARY: This proposed rule would implement a recommendation from the 
Far West Spearmint Oil Administrative Committee (Committee) to revise 
the quantity of Class 3 (Native) spearmint oil that handlers may 
purchase from, or handle on behalf of, producers during the 2017-2018 
marketing year, which began on June 1, 2017. This proposal would 
increase the Native spearmint oil salable quantity and the allotment 
percentage. The Committee recommended this action for the purpose of 
avoiding extreme fluctuations in supplies and prices and to help 
maintain stability in the Far West spearmint oil market. This proposal 
also contains a formatting change to subpart references to bring the 
language into conformance with the Office of the Federal Register 
requirements.

DATES: Comments must be received by December 18, 2017.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this proposed rule. Comments must be sent to the Docket 
Clerk, Marketing Order and Agreement Division, Specialty Crops Program, 
AMS, USDA, 1400 Independence Avenue SW., STOP 0237, Washington, DC 
20250-0237; Fax: (202) 720-8938; or internet: http://www.regulations.gov. All comments should reference the document number 
and the date and page number of this issue of the Federal Register and 
will be made available for public inspection in the Office of the 
Docket Clerk during regular business hours, or can be viewed at: http://www.regulations.gov. All comments submitted in response to this rule 
will be included in the record and will be made available to the 
public. Please be advised that the identity of the individuals or 
entities submitting the comments will be made public on the Internet at 
the address provided above.

FOR FURTHER INFORMATION CONTACT: Dale Novotny, Marketing Specialist, or 
Gary D. Olson, Regional Director, Northwest Marketing Field Office, 
Marketing Order and Agreement Division, Specialty Crops Program, AMS, 
USDA; Telephone: (503) 326-2724, Fax: (503) 326-7440, or Email: 
[email protected] or [email protected].
    Small businesses may request information on complying with this 
regulation by contacting Richard Lower, Marketing Order and Agreement 
Division, Specialty Crops Program, AMS, USDA, 1400 Independence Avenue 
SW., STOP 0237, Washington, DC 20250-0237; Telephone: (202) 720-2491, 
Fax: (202) 720-8938, or Email: [email protected].

SUPPLEMENTARY INFORMATION: This action, pursuant to 5 U.S.C. 553, 
proposes an amendment to regulations issued to carry out a marketing 
order as defined in 7 CFR 900.2(j). This proposed 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). Part 985 (referred to 
as ``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.'' The Committee locally administers the 
Marketing Order and is comprised of spearmint oil producers operating 
within the area of production, and a public member.
    The Department of Agriculture (USDA) is issuing this proposed rule 
in conformance with Executive Orders 13563 and 13175. This action falls 
within a category of regulatory actions that the Office of Management 
and Budget (OMB) exempted from Executive Order 12866 review. 
Additionally, because this proposed rule does not meet the definition 
of a significant regulatory action it does not trigger the requirements 
contained in Executive Order 13771. See OMB's Memorandum titled 
``Interim Guidance Implementing Section 2 of the Executive Order of 
January 30, 2017, titled `Reducing Regulation and Controlling 
Regulatory Costs'[thinsp]'' (February 2, 2017).
    This proposal has been reviewed under Executive Order 12988, Civil 
Justice Reform. Under the provisions of the Order now in effect, 
salable quantities and allotment percentages may be established for 
classes of spearmint oil produced in the Far West. This proposed rule 
would increase the quantity of Native spearmint oil produced in the Far 
West that handlers may purchase from, or handle on behalf of, producers 
during the 2017-2018 marketing year, which ends on May 31, 2018.
    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.
    This proposal invites comments on revisions to the quantity of 
Native spearmint oil that handlers may purchase from, or handle on 
behalf of, producers during the 2017-2018 marketing year under the 
Order. Prior to this proposed rule, the salable quantity and allotment 
percentage for Native spearmint oil was initially established at 
1,075,051 pounds and 44 percent, respectively, in a final rule 
published May 25, 2017 (82 FR 24001). This proposed rule would increase 
the Native spearmint oil salable quantity from 1,075,051 pounds to 
1,514,902 pounds

[[Page 56923]]

and the allotment percentage from 44 percent to 62 percent.
    Under the volume regulation provisions of the Order, the Committee 
meets each year to adopt a marketing policy for the ensuing year. When 
the Committee's marketing policy considerations indicate a need for 
limiting the quantity of spearmint oil available to the market to 
establish or maintain orderly marketing conditions, the Committee 
submits a recommendation to the Secretary of Agriculture for volume 
regulation.
    Volume regulation under the Order is effectuated through the 
establishment of a salable quantity and allotment percentage applicable 
to each class of spearmint oil handled in the production area during a 
marketing year. The salable quantity is the total quantity of each 
class of oil that handlers may purchase from, or handle on behalf of, 
producers during a given marketing year. The allotment percentage for 
each class of oil is derived by dividing the salable quantity by the 
total industry allotment base for that same class of oil. The total 
industry allotment base is the aggregate of all allotment base held 
individually by producers. Producer allotment base is the quantity of 
each class of spearmint oil that the Committee has determined is 
representative of a producer's spearmint oil production. Each producer 
is allotted a pro rata share of the total salable quantity of each 
class of spearmint oil each marketing year. Each producer's annual 
allotment is determined by applying the allotment percentage to the 
producer's individual allotment base for each applicable class of 
spearmint oil.
    The full Committee met on October 19, 2016, to consider its 
marketing policy for the 2017-2018 marketing year. At that meeting, the 
Committee determined that marketing conditions indicated a need for 
volume regulation of both classes of spearmint oil for the 2017-2018 
marketing year. The Committee recommended salable quantities of 774,645 
pounds and 1,075,051 pounds, and allotment percentages of 36 percent 
and 44 percent, respectively, for Scotch and Native spearmint oil. A 
proposed rule to that effect was published in the Federal Register on 
March 31, 2017 (82 FR 16001). Comments on the proposed rule were 
solicited from interested persons until May 1, 2017. No comments were 
received. Subsequently, a final rule establishing the salable 
quantities and allotment percentages for Scotch and Native spearmint 
oil for the 2017-2018 marketing year was published in the Federal 
Register on May 25, 2017 (82 FR 24001).
    Pursuant to authority contained in Sec. Sec.  985.50, 985.51, and 
985.52, the full eight-member Committee met again on September 25, 
2017, and October 25, 2017, to evaluate the current year's volume 
control regulation. At the meetings, the Committee assessed the current 
market conditions for spearmint oil in relation to the salable 
quantities and allotment percentages established for the 2017-2018 
marketing year. The Committee considered a number of factors, including 
the current and projected supply, estimated future demand, production 
costs, and producer prices for all classes of spearmint oil. The 
Committee determined that the established salable quantity and 
allotment percentage in effect for Native spearmint oil for the 2017-
2018 marketing year should be increased to take into account the 
unanticipated rise in market demand for that class of spearmint oil.
    At the September 25, 2017, meeting, the Committee recommended 
increasing the 2017-2018 marketing year Native spearmint oil salable 
quantity from 1,075,051 pounds to 1,221,696 pounds and the allotment 
percentage from 44 percent to 50 percent. The recommendation to 
increase the salable quantity and allotment percentage passed with a 
vote of seven members in favor and one opposed. The member opposed to 
the recommendation favored increasing the Native spearmint oil salable 
quantity and allotment percentage for the 2017-2018 marketing year, but 
at an undetermined level lower than what was recommended.
    At the October 25, 2017, meeting, the Committee met again to 
consider an additional increase to the 2017-2018 marketing year salable 
quantity and allotment percentage for Native spearmint oil. The 
Committee recommended further increasing the 2017-2018 marketing year 
Native spearmint oil salable quantity from 1,221,696 pounds to 
1,514,902 pounds and the allotment percentage from 50 percent to 62 
percent. The recommendation to further increase the salable quantity 
and allotment percentage passed with a unanimous vote.
    Thus, this proposal would make additional amounts of Native 
spearmint oil available to the market by increasing the salable 
quantity and allotment percentage previously established under the 
Order for the 2017-2018 marketing year. This proposed rule would 
increase the Native spearmint oil salable quantity by 439,851 pounds, 
to 1,514,902 pounds, and would raise the allotment percentage 18 
percentage points, to 62 percent. Such additional oil would come from 
releasing Native spearmint oil held by producers in the reserve pool. 
As of May 31, 2017, the Committee records show that the reserve pool 
for Native spearmint oil contained 996,050 pounds of oil, an amount 
considered excessive relative to market conditions.
    At both the September and October 2017 meetings, the Committee 
staff reported that demand for Native spearmint oil has been greater 
than previously anticipated. Committee records indicate that 2017-2018 
marketing year sales to date (945,683 pounds) are tracking fairly 
closely to sales for the same period in the 2016-2017 marketing year 
(1,095,112 pounds). However, handlers reported to the Committee that an 
additional 345,446 pounds of Native spearmint oil are committed to be 
sold, which would leave a deficit of 216,078 pounds of oil (1,075,051 
pounds salable quantity minus 945,683 pounds sold to date and 345,446 
pounds committed) to supply the market until May 31, 2018. Another 
factor that contributed to the short supply was that only 143,011 
pounds of salable product carried over from the 2016-2017 marketing 
year into the 2017-2018 marketing year, which was 46,809 pounds less 
than expected. The Committee initially estimated in October 2016 that 
the total available supply of Native spearmint oil for the 2017-2018 
marketing year would be 1,264,871 pounds, but that amount was reduced 
to 1,218,158 when the smaller carry-in quantity is accounted for.
    The Committee initially estimated the trade demand for Native 
spearmint oil for the 2017-2018 marketing year to be 1,250,000. At the 
September 25, 2017, meeting, the Committee revised the expected trade 
demand for the 2017-2018 marketing year to be 1,338,820. At the October 
25, 2017, meeting, the Committee further revised the expected trade 
demand for the 2017-2018 marketing year to 1,600,000 pounds. If 
realized, trade demand would be 381,842 pounds above the quantity of 
Native spearmint oil available under the volume control levels 
implemented in May 2017 (1,218,158 pounds available prior to this rule 
minus 1,600,000 pounds estimated demand equals a deficit of 381,842 
pounds). Without increasing the salable quantity and allotment 
percentage, the market for Native spearmint oil may be shorted. The 
increased quantity of Native spearmint oil (439,851 pounds) that would 
be made available to the market as a result of this rulemaking would 
ensure that market demand is fully satisfied in the current year and 
that there would be approximately 20,171

[[Page 56924]]

pounds of Native spearmint oil salable inventory available to the 
market for the start of the 2018-2019 marketing year, which begins on 
June 1, 2018.
    In making the recommendation to increase the salable quantity and 
allotment percentage of Native spearmint oil, the Committee considered 
all currently available information on the price, supply, and demand of 
Native spearmint oil. The Committee also considered reports and other 
information from handlers and producers in attendance at the meeting. 
Lastly, the Committee manager presented information and reports that 
were provided to the Committee staff by handlers and producers.
    This proposal would increase the 2017-2018 marketing year Native 
spearmint oil salable quantity by 439,851 pounds, to a total of 
1,514,902 pounds. However, the Committee expects that not all producers 
have Native spearmint oil held in reserve. As such, the Committee 
calculates that 37,796 pounds of the Native spearmint oil salable 
quantity will go unfulfilled. Therefore, the total supply of Native 
spearmint oil that the Committee anticipates actually being available 
to the market over the course of the 2017-2018 marketing year would be 
increased to 1,620,117 pounds (2017-2018 marketing year salable 
quantity plus salable carry-in of 143,011 pounds from the 2016-2017 
marketing year minus an unused allotment of 37,796 pounds due to lack 
of pool oil). Actual sales of Native spearmint oil for the 2016-2017 
marketing year totaled 1,287,691 pounds. The 5-year average of Native 
spearmint oil sales is 1,309,793 pounds.
    The Committee estimates that this action would result in 20,171 
pounds of salable Native spearmint oil being carried into the 2018-2019 
marketing year. While 20,171 pounds is a relatively low quantity of 
salable Native spearmint oil to end the marketing year, reserve pool 
oil could be released into the market under a future relaxation of the 
volume regulation should it be necessary to adequately supply the 
market prior to the beginning of the 2018-2019 marketing year. The 
Committee estimates that a total of 1,237,237 pounds of Native 
spearmint oil would be available from the reserve pool if needed.
    As mentioned previously, when the original 2017-2018 marketing 
policy statement was drafted, handlers estimated the demand for Native 
spearmint oil for the 2017-2018 marketing year to be 1,250,000 pounds. 
The Committee's initial recommendation for the establishment of the 
Native spearmint oil salable quantity and allotment percentage for the 
2017-2018 marketing year was based on that estimate. The Committee did 
not anticipate the increase in demand for Native spearmint oil that the 
market is currently experiencing and did not make allowances for it 
when the marketing policy was initially adopted.
    At the September 25, 2017, meeting, the Committee revised its 
estimate of the current trade demand to 1,338,820 pounds, and further 
increased that estimate to 1,600,000 pounds at the October 25, 2017, 
meeting. The Committee now believes that the supply of Native spearmint 
oil available to the market under the initially established salable 
quantity and allotment percentage would be insufficient to satisfy the 
current level of demand for oil at reasonable price levels. The 
Committee further believes that the increase in the salable quantity 
and allotment percentage proposed in this action is vital to ensuring 
an adequate supply of Native spearmint oil is available to the market 
moving forward.
    The Committee's stated intent in the use of the Order's volume 
control regulation is to keep adequate supplies available to meet 
market needs and to maintain orderly marketing conditions. With that in 
mind, the Committee developed its recommendation for increasing the 
Native spearmint oil salable quantity and allotment percentage for the 
2017-2018 marketing year based on the information discussed above, as 
well as the summary data outlined below.
    (A) Initial estimated 2017-2018 Native Allotment Base--2,443,297 
pounds. This is the allotment base estimate on which the original 2017-
2018 salable quantity and allotment percentage was based.
    (B) Revised 2017-2018 Native Allotment Base--2,443,391 pounds. This 
is 94 pounds more than the initial estimated allotment base of 
2,443,297 pounds. The difference is the result of annual adjustments 
made to the allotment base according to the provisions of the Order.
    (C) Initial 2017-2018 Native Allotment Percentage--44 percent. This 
was unanimously recommended by the Committee on October 19, 2016.
    (D) Initial 2017-2018 Native Salable Quantity--1,075,051 pounds. 
This figure is 44 percent of the original estimated 2017-2018 allotment 
base of 2,443,297 pounds.
    (E) Adjusted Initial 2017-2018 Native Salable Quantity--1,075,092 
pounds. This figure reflects the salable quantity actually available at 
the beginning of the 2017-2018 marketing year. This quantity is derived 
by applying the initial 44-percent allotment percentage to the revised 
allotment base of 2,443,391.
    (F) Proposed Revision to the 2017-2018 Native Salable Quantity and 
Allotment Percentage:
    (1) Proposed Increase in the Native Allotment Percentage--18 
percent. The Committee recommended an increase of six percentage points 
at its September 25, 2017, meeting, and a further 12 percentage points 
at its October 25, 2017, meeting for a total increase of 18 percentage 
points over the initial Native allotment percentage.
    (2) Proposed Revised 2017-2018 Native Allotment Percentage--62 
percent. This number was derived by adding the increase of 18 
percentage points to the initially established 2017-2018 allotment 
percentage of 44 percent.
    (3) Proposed Revised 2017-2018 Native Salable Quantity--1,514,902 
pounds. This amount is 62 percent of the revised 2017-2018 allotment 
base of 2,443,391 pounds.
    (4) Computed Increase in the 2017-2018 Native Salable Quantity as a 
Result of the Proposed Revision--439,851 pounds. This figure represents 
18 percent of the 2017-2018 revised allotment base.
    (5) Expected Actual Increase in the Native Spearmint Oil Available 
to the Market for the 2017-2018 Marketing Year--402,055 pounds. This 
amount is based on the Committee's estimation of Native spearmint oil 
that is actually held by producers in the reserve pool that may enter 
the market as a result of this proposal. The Committee estimates that 
approximately 37,796 pounds of the computed increase would go 
unfulfilled due to producers who do not have sufficient Native 
spearmint oil in reserve to utilize their full allotted salable 
quantity.
    Scotch spearmint oil is also regulated by the Order. As mentioned 
previously, a salable quantity and allotment percentage for Scotch 
spearmint oil was established in a final rule published in the Federal 
Register on May 25, 2017 (82 FR 24001). At the September 25, 2017, 
meeting, the Committee considered the current production, inventory, 
and marketing conditions for Scotch spearmint oil. After receiving 
reports from the Committee staff and comments from the industry, the 
consensus of the Committee was that the previously established salable 
quantity and allotment percentage for Scotch spearmint oil was 
appropriate for the current market conditions. As such, the Committee 
took no further action with regards to Scotch spearmint oil for the 
2017-2018 marketing year.

[[Page 56925]]

    This proposed rule would relax the regulation of Native spearmint 
oil and would allow producers to meet market demand while improving 
producer returns. In conjunction with the issuance of this proposed 
rule, the Committee's revised marketing policy statement for the 2017-
2018 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 Sec.  985.50. During 
its discussion of revisions to the 2017-2018 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) the estimated 
production of each class of oil; (4) the 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 proposed increase in the Native spearmint oil salable quantity 
and allotment percentage would account for the anticipated market needs 
for that class of oil. In determining anticipated market needs, the 
Committee considered changes and trends in historical sales, 
production, and demand.

Initial Regulatory Flexibility Analysis

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) (5 U.S.C. 601-612), the Agricultural Marketing Service (AMS) 
has considered the economic impact of this action on small entities. 
Accordingly, AMS has prepared this initial regulatory flexibility 
analysis.
    The purpose of the RFA is to fit regulatory actions to the scale of 
businesses 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.
    There are eight spearmint oil handlers subject to regulation under 
the Order, and approximately 41 producers of Scotch spearmint oil and 
approximately 94 producers of Native spearmint oil in the regulated 
production area. Small agricultural service firms are defined by the 
Small Business Administration (SBA) as those having annual receipts of 
less than $7,500,000, and small agricultural producers are defined as 
those having annual receipts of less than $750,000 (13 CFR 121.201).
    Based on the SBA's definition of small entities, the Committee 
estimates that only two of the eight 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 12 of the 39 Scotch spearmint oil producers and 31 of 
the 94 Native spearmint oil producers could be classified as small 
entities under the SBA definition. Thus, the majority of handlers and 
producers of Far West spearmint oil may not be classified as small 
entities.
    The use of volume control regulation allows the spearmint oil 
industry to fully supply spearmint oil markets while avoiding the 
negative consequences of over-supplying these markets. Without volume 
control regulation, the supply and price of spearmint oil would likely 
fluctuate widely. Periods of oversupply could result in low producer 
prices and a large volume of oil stored and carried over to future crop 
years. Periods of undersupply could lead to excessive price spikes and 
drive end users to source flavoring needs from other markets, 
potentially causing long-term economic damage to the domestic spearmint 
oil industry. The Order's volume control provisions have been 
successfully implemented in the domestic spearmint oil industry since 
1980 and provide benefits for producers, handlers, manufacturers, and 
consumers.
    This proposed rule would increase the quantity of Native spearmint 
oil that handlers may purchase from, or handle on behalf of, producers 
during the 2017-2018 marketing year, which ends May 31, 2018. The 2017-
2018 Native spearmint oil salable quantity was initially established at 
1,075,051 pounds and the allotment percentage initially set at 44 
percent. This proposed rule would increase the Native spearmint oil 
salable quantity to 1,514,902 pounds and the allotment percentage to 62 
percent.
    Based on the information and projections available at the September 
25, 2017, and October 25, 2017, meetings, the Committee considered 
several alternatives to this increase. The Committee considered leaving 
the salable quantity and allotment percentage unchanged, and also 
considered other potential levels of increase. The Committee reached 
its recommendation to increase the salable quantity and allotment 
percentage for Native spearmint oil after careful consideration of all 
available information and input from all interested industry 
participants, and believes that the levels recommended would achieve 
the desired objectives. Without the increase, the Committee believes 
the industry would not be able to satisfactorily meet market demand.
    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), the Order's information collection requirements have been 
previously approved by OMB and assigned OMB No. 0581-0178 (Generic 
Specialty Crops). No changes are necessary in those requirements as a 
result of this action. Should any changes become necessary, they would 
be submitted to OMB for approval.
    This proposed rule would relax the volume regulation requirements 
established under the Order. Accordingly, this action would 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 complying with the E-Government Act, to promote 
the use of the Internet and other information technologies to provide 
increased opportunities for citizen access to Government information 
and services, and for other purposes.
    USDA has not identified any relevant Federal rules that duplicate, 
overlap or conflict with this action.
    In addition, the Committee's meeting was widely publicized 
throughout the Far West spearmint oil industry and all interested 
persons were invited to attend the meeting and participate in Committee 
deliberations on all issues. The September 25, 2017, and October 25, 
2017, meetings were public and all entities, both large and small, were 
able to express views on this issue. Finally, interested persons are 
invited to submit comments on this proposed rule, including the 
regulatory and

[[Page 56926]]

information collection impacts of this action on small businesses.
    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/rules-regulations/moa/small-businesses. Any questions 
about the compliance guide should be sent to Richard Lower at the 
previously mentioned address in the FOR FURTHER INFORMATION CONTACT 
section.
    A 15-day comment period is provided to allow interested persons to 
respond to this proposal. Fifteen days is deemed appropriate because 
handlers are aware of this action, which was recommended by the 
Committee at a public meeting, and the subject matter of this proposal 
is not complex. All written comments timely received will be considered 
before a final determination is made on this matter.

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 
proposed to be amended as follows:

PART 985--MARKETING ORDER REGULATING THE HANDLING OF SPEARMINT OIL 
PRODUCED IN THE FAR WEST

0
1. The authority citation for 7 CFR part 985 continues to read as 
follows:

    Authority: 7 U.S.C. 601-674.

[Subpart Redesignated as Subpart A]

0
2. Redesignate ``Subpart--Order Regulating Handling'' as ``Subpart A--
Order Regulating Handling''.

[Subpart Redesignated as Subpart B and Amended]

0
3. Redesignate ``Subpart--Administrative Rules and Regulations'' as 
subpart B and revise the heading to read as follows:

Subpart B--Administrative Requirements

0
4. In Sec.  985.236, revise paragraph (b) to read as follows:


Sec.  985.236   Salable quantities and allotment percentages--2017-2018 
marketing year.

* * * * *
    (b) Class 3 (Native) oil--a salable quantity of 1,514,902 pounds 
and an allotment percentage of 62 percent.

    Dated: November 28, 2017.
Bruce Summers,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 2017-25965 Filed 11-30-17; 8:45 am]
 BILLING CODE 3410-02-P



                                                    56922

                                                    Proposed Rules                                                                                                Federal Register
                                                                                                                                                                  Vol. 82, No. 230

                                                                                                                                                                  Friday, December 1, 2017



                                                    This section of the FEDERAL REGISTER                    document number and the date and                      because this proposed rule does not
                                                    contains notices to the public of the proposed          page number of this issue of the Federal              meet the definition of a significant
                                                    issuance of rules and regulations. The                  Register and will be made available for               regulatory action it does not trigger the
                                                    purpose of these notices is to give interested          public inspection in the Office of the                requirements contained in Executive
                                                    persons an opportunity to participate in the            Docket Clerk during regular business                  Order 13771. See OMB’s Memorandum
                                                    rule making prior to the adoption of the final
                                                                                                            hours, or can be viewed at: http://                   titled ‘‘Interim Guidance Implementing
                                                    rules.
                                                                                                            www.regulations.gov. All comments                     Section 2 of the Executive Order of
                                                                                                            submitted in response to this rule will               January 30, 2017, titled ‘Reducing
                                                    DEPARTMENT OF AGRICULTURE                               be included in the record and will be                 Regulation and Controlling Regulatory
                                                                                                            made available to the public. Please be               Costs’ ’’ (February 2, 2017).
                                                    Agricultural Marketing Service                          advised that the identity of the                         This proposal has been reviewed
                                                                                                            individuals or entities submitting the                under Executive Order 12988, Civil
                                                    7 CFR Part 985                                          comments will be made public on the                   Justice Reform. Under the provisions of
                                                                                                            Internet at the address provided above.               the Order now in effect, salable
                                                    [Doc. No. AMS–SC–16–0107; SC17–985–1A
                                                    PR]                                                     FOR FURTHER INFORMATION CONTACT: Dale                 quantities and allotment percentages
                                                                                                            Novotny, Marketing Specialist, or Gary                may be established for classes of
                                                    Marketing Order Regulating the                          D. Olson, Regional Director, Northwest                spearmint oil produced in the Far West.
                                                    Handling of Spearmint Oil Produced in                   Marketing Field Office, Marketing Order               This proposed rule would increase the
                                                    the Far West; Revision of the Salable                   and Agreement Division, Specialty                     quantity of Native spearmint oil
                                                    Quantity and Allotment Percentage for                   Crops Program, AMS, USDA;                             produced in the Far West that handlers
                                                    Class 3 (Native) Spearmint Oil for the                  Telephone: (503) 326–2724, Fax: (503)                 may purchase from, or handle on behalf
                                                    2017–2018 Marketing Year                                326–7440, or Email: DaleJ.Novotny@                    of, producers during the 2017–2018
                                                                                                            ams.usda.gov or GaryD.Olson@                          marketing year, which ends on May 31,
                                                    AGENCY:  Agricultural Marketing Service,                ams.usda.gov.
                                                    USDA.                                                                                                         2018.
                                                                                                               Small businesses may request
                                                    ACTION: Proposed rule.                                  information on complying with this                       The Act provides that administrative
                                                                                                            regulation by contacting Richard Lower,               proceedings must be exhausted before
                                                    SUMMARY:   This proposed rule would                                                                           parties may file suit in court. Under
                                                                                                            Marketing Order and Agreement
                                                    implement a recommendation from the                                                                           section 608c(15)(A) of the Act, any
                                                                                                            Division, Specialty Crops Program,
                                                    Far West Spearmint Oil Administrative                                                                         handler subject to an order may file
                                                                                                            AMS, USDA, 1400 Independence
                                                    Committee (Committee) to revise the                                                                           with USDA a petition stating that the
                                                                                                            Avenue SW., STOP 0237, Washington,
                                                    quantity of Class 3 (Native) spearmint                                                                        order, any provision of the order, or any
                                                                                                            DC 20250–0237; Telephone: (202) 720–
                                                    oil that handlers may purchase from, or                                                                       obligation imposed in connection with
                                                                                                            2491, Fax: (202) 720–8938, or Email:
                                                    handle on behalf of, producers during                                                                         the order is not in accordance with law
                                                                                                            Richard.Lower@ams.usda.gov.
                                                    the 2017–2018 marketing year, which                                                                           and request a modification of the order
                                                                                                            SUPPLEMENTARY INFORMATION: This
                                                    began on June 1, 2017. This proposal                                                                          or to be exempted therefrom. A handler
                                                    would increase the Native spearmint oil                 action, pursuant to 5 U.S.C. 553,
                                                                                                            proposes an amendment to regulations                  is afforded the opportunity for a hearing
                                                    salable quantity and the allotment                                                                            on the petition. After the hearing, USDA
                                                    percentage. The Committee                               issued to carry out a marketing order as
                                                                                                            defined in 7 CFR 900.2(j). This proposed              would rule on the petition. The Act
                                                    recommended this action for the                                                                               provides that the district court of the
                                                    purpose of avoiding extreme                             rule is issued under Marketing Order
                                                                                                            No. 985 (7 CFR part 985), as amended,                 United States in any district in which
                                                    fluctuations in supplies and prices and                                                                       the handler is an inhabitant, or has his
                                                    to help maintain stability in the Far                   regulating the handling of spearmint oil
                                                                                                            produced in the Far West (Washington,                 or her principal place of business, has
                                                    West spearmint oil market. This                                                                               jurisdiction to review USDA’s ruling on
                                                    proposal also contains a formatting                     Idaho, Oregon, and designated parts of
                                                                                                            Nevada and Utah). Part 985 (referred to               the petition, provided an action is filed
                                                    change to subpart references to bring the                                                                     not later than 20 days after the date of
                                                    language into conformance with the                      as ‘‘the Order’’) is effective under the
                                                                                                            Agricultural Marketing Agreement Act                  the entry of the ruling.
                                                    Office of the Federal Register
                                                                                                            of 1937, as amended (7 U.S.C. 601–674),                  This proposal invites comments on
                                                    requirements.
                                                                                                            hereinafter referred to as the ‘‘Act.’’ The           revisions to the quantity of Native
                                                    DATES: Comments must be received by                     Committee locally administers the                     spearmint oil that handlers may
                                                    December 18, 2017.                                      Marketing Order and is comprised of                   purchase from, or handle on behalf of,
                                                    ADDRESSES: Interested persons are                       spearmint oil producers operating                     producers during the 2017–2018
                                                    invited to submit written comments                      within the area of production, and a                  marketing year under the Order. Prior to
                                                    concerning this proposed rule.                          public member.                                        this proposed rule, the salable quantity
jstallworth on DSKBBY8HB2PROD with PROPOSALS




                                                    Comments must be sent to the Docket                        The Department of Agriculture                      and allotment percentage for Native
                                                    Clerk, Marketing Order and Agreement                    (USDA) is issuing this proposed rule in               spearmint oil was initially established at
                                                    Division, Specialty Crops Program,                      conformance with Executive Orders                     1,075,051 pounds and 44 percent,
                                                    AMS, USDA, 1400 Independence                            13563 and 13175. This action falls                    respectively, in a final rule published
                                                    Avenue SW., STOP 0237, Washington,                      within a category of regulatory actions               May 25, 2017 (82 FR 24001). This
                                                    DC 20250–0237; Fax: (202) 720–8938; or                  that the Office of Management and                     proposed rule would increase the Native
                                                    internet: http://www.regulations.gov. All               Budget (OMB) exempted from Executive                  spearmint oil salable quantity from
                                                    comments should reference the                           Order 12866 review. Additionally,                     1,075,051 pounds to 1,514,902 pounds


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                                                                           Federal Register / Vol. 82, No. 230 / Friday, December 1, 2017 / Proposed Rules                                         56923

                                                    and the allotment percentage from 44                       Pursuant to authority contained in                 come from releasing Native spearmint
                                                    percent to 62 percent.                                  §§ 985.50, 985.51, and 985.52, the full               oil held by producers in the reserve
                                                       Under the volume regulation                          eight-member Committee met again on                   pool. As of May 31, 2017, the
                                                    provisions of the Order, the Committee                  September 25, 2017, and October 25,                   Committee records show that the
                                                    meets each year to adopt a marketing                    2017, to evaluate the current year’s                  reserve pool for Native spearmint oil
                                                    policy for the ensuing year. When the                   volume control regulation. At the                     contained 996,050 pounds of oil, an
                                                    Committee’s marketing policy                            meetings, the Committee assessed the                  amount considered excessive relative to
                                                    considerations indicate a need for                      current market conditions for spearmint               market conditions.
                                                    limiting the quantity of spearmint oil                  oil in relation to the salable quantities                At both the September and October
                                                    available to the market to establish or                 and allotment percentages established                 2017 meetings, the Committee staff
                                                    maintain orderly marketing conditions,                  for the 2017–2018 marketing year. The                 reported that demand for Native
                                                    the Committee submits a                                 Committee considered a number of                      spearmint oil has been greater than
                                                    recommendation to the Secretary of                      factors, including the current and                    previously anticipated. Committee
                                                    Agriculture for volume regulation.                      projected supply, estimated future                    records indicate that 2017–2018
                                                       Volume regulation under the Order is                 demand, production costs, and producer                marketing year sales to date (945,683
                                                    effectuated through the establishment of                prices for all classes of spearmint oil.              pounds) are tracking fairly closely to
                                                    a salable quantity and allotment                        The Committee determined that the                     sales for the same period in the 2016–
                                                    percentage applicable to each class of                  established salable quantity and                      2017 marketing year (1,095,112
                                                    spearmint oil handled in the production                 allotment percentage in effect for Native             pounds). However, handlers reported to
                                                    area during a marketing year. The                       spearmint oil for the 2017–2018                       the Committee that an additional
                                                    salable quantity is the total quantity of               marketing year should be increased to                 345,446 pounds of Native spearmint oil
                                                    each class of oil that handlers may                     take into account the unanticipated rise              are committed to be sold, which would
                                                    purchase from, or handle on behalf of,                  in market demand for that class of                    leave a deficit of 216,078 pounds of oil
                                                    producers during a given marketing                      spearmint oil.                                        (1,075,051 pounds salable quantity
                                                    year. The allotment percentage for each                    At the September 25, 2017, meeting,                minus 945,683 pounds sold to date and
                                                    class of oil is derived by dividing the                 the Committee recommended increasing                  345,446 pounds committed) to supply
                                                    salable quantity by the total industry                  the 2017–2018 marketing year Native                   the market until May 31, 2018. Another
                                                    allotment base for that same class of oil.              spearmint oil salable quantity from                   factor that contributed to the short
                                                    The total industry allotment base is the                1,075,051 pounds to 1,221,696 pounds                  supply was that only 143,011 pounds of
                                                    aggregate of all allotment base held                    and the allotment percentage from 44                  salable product carried over from the
                                                    individually by producers. Producer                     percent to 50 percent. The                            2016–2017 marketing year into the
                                                    allotment base is the quantity of each                  recommendation to increase the salable                2017–2018 marketing year, which was
                                                    class of spearmint oil that the                         quantity and allotment percentage                     46,809 pounds less than expected. The
                                                    Committee has determined is                             passed with a vote of seven members in                Committee initially estimated in
                                                    representative of a producer’s spearmint                favor and one opposed. The member                     October 2016 that the total available
                                                    oil production. Each producer is allotted               opposed to the recommendation favored                 supply of Native spearmint oil for the
                                                    a pro rata share of the total salable                   increasing the Native spearmint oil                   2017–2018 marketing year would be
                                                    quantity of each class of spearmint oil                 salable quantity and allotment                        1,264,871 pounds, but that amount was
                                                    each marketing year. Each producer’s                    percentage for the 2017–2018 marketing                reduced to 1,218,158 when the smaller
                                                    annual allotment is determined by                       year, but at an undetermined level lower              carry-in quantity is accounted for.
                                                    applying the allotment percentage to the                than what was recommended.                               The Committee initially estimated the
                                                    producer’s individual allotment base for                   At the October 25, 2017, meeting, the              trade demand for Native spearmint oil
                                                    each applicable class of spearmint oil.                 Committee met again to consider an                    for the 2017–2018 marketing year to be
                                                       The full Committee met on October                    additional increase to the 2017–2018                  1,250,000. At the September 25, 2017,
                                                    19, 2016, to consider its marketing                     marketing year salable quantity and                   meeting, the Committee revised the
                                                    policy for the 2017–2018 marketing                      allotment percentage for Native                       expected trade demand for the 2017–
                                                    year. At that meeting, the Committee                    spearmint oil. The Committee                          2018 marketing year to be 1,338,820. At
                                                    determined that marketing conditions                    recommended further increasing the                    the October 25, 2017, meeting, the
                                                    indicated a need for volume regulation                  2017–2018 marketing year Native                       Committee further revised the expected
                                                    of both classes of spearmint oil for the                spearmint oil salable quantity from                   trade demand for the 2017–2018
                                                    2017–2018 marketing year. The                           1,221,696 pounds to 1,514,902 pounds                  marketing year to 1,600,000 pounds. If
                                                    Committee recommended salable                           and the allotment percentage from 50                  realized, trade demand would be
                                                    quantities of 774,645 pounds and                        percent to 62 percent. The                            381,842 pounds above the quantity of
                                                    1,075,051 pounds, and allotment                         recommendation to further increase the                Native spearmint oil available under the
                                                    percentages of 36 percent and 44                        salable quantity and allotment                        volume control levels implemented in
                                                    percent, respectively, for Scotch and                   percentage passed with a unanimous                    May 2017 (1,218,158 pounds available
                                                    Native spearmint oil. A proposed rule to                vote.                                                 prior to this rule minus 1,600,000
                                                    that effect was published in the Federal                   Thus, this proposal would make                     pounds estimated demand equals a
                                                    Register on March 31, 2017 (82 FR                       additional amounts of Native spearmint                deficit of 381,842 pounds). Without
                                                    16001). Comments on the proposed rule                   oil available to the market by increasing             increasing the salable quantity and
                                                    were solicited from interested persons                  the salable quantity and allotment                    allotment percentage, the market for
jstallworth on DSKBBY8HB2PROD with PROPOSALS




                                                    until May 1, 2017. No comments were                     percentage previously established under               Native spearmint oil may be shorted.
                                                    received. Subsequently, a final rule                    the Order for the 2017–2018 marketing                 The increased quantity of Native
                                                    establishing the salable quantities and                 year. This proposed rule would increase               spearmint oil (439,851 pounds) that
                                                    allotment percentages for Scotch and                    the Native spearmint oil salable quantity             would be made available to the market
                                                    Native spearmint oil for the 2017–2018                  by 439,851 pounds, to 1,514,902                       as a result of this rulemaking would
                                                    marketing year was published in the                     pounds, and would raise the allotment                 ensure that market demand is fully
                                                    Federal Register on May 25, 2017 (82                    percentage 18 percentage points, to 62                satisfied in the current year and that
                                                    FR 24001).                                              percent. Such additional oil would                    there would be approximately 20,171


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                                                    56924                  Federal Register / Vol. 82, No. 230 / Friday, December 1, 2017 / Proposed Rules

                                                    pounds of Native spearmint oil salable                  quantity and allotment percentage for                 initial 44-percent allotment percentage
                                                    inventory available to the market for the               the 2017–2018 marketing year was                      to the revised allotment base of
                                                    start of the 2018–2019 marketing year,                  based on that estimate. The Committee                 2,443,391.
                                                    which begins on June 1, 2018.                           did not anticipate the increase in                       (F) Proposed Revision to the 2017–
                                                       In making the recommendation to                      demand for Native spearmint oil that                  2018 Native Salable Quantity and
                                                    increase the salable quantity and                       the market is currently experiencing and              Allotment Percentage:
                                                    allotment percentage of Native                          did not make allowances for it when the                  (1) Proposed Increase in the Native
                                                    spearmint oil, the Committee                            marketing policy was initially adopted.               Allotment Percentage—18 percent. The
                                                    considered all currently available                         At the September 25, 2017, meeting,                Committee recommended an increase of
                                                    information on the price, supply, and                   the Committee revised its estimate of                 six percentage points at its September
                                                    demand of Native spearmint oil. The                     the current trade demand to 1,338,820                 25, 2017, meeting, and a further 12
                                                    Committee also considered reports and                   pounds, and further increased that                    percentage points at its October 25,
                                                    other information from handlers and                     estimate to 1,600,000 pounds at the                   2017, meeting for a total increase of 18
                                                    producers in attendance at the meeting.                 October 25, 2017, meeting. The                        percentage points over the initial Native
                                                    Lastly, the Committee manager                           Committee now believes that the supply                allotment percentage.
                                                    presented information and reports that                  of Native spearmint oil available to the                 (2) Proposed Revised 2017–2018
                                                    were provided to the Committee staff by                 market under the initially established                Native Allotment Percentage—62
                                                    handlers and producers.                                 salable quantity and allotment                        percent. This number was derived by
                                                       This proposal would increase the                     percentage would be insufficient to                   adding the increase of 18 percentage
                                                    2017–2018 marketing year Native                         satisfy the current level of demand for               points to the initially established 2017–
                                                    spearmint oil salable quantity by                       oil at reasonable price levels. The                   2018 allotment percentage of 44 percent.
                                                    439,851 pounds, to a total of 1,514,902                 Committee further believes that the                      (3) Proposed Revised 2017–2018
                                                    pounds. However, the Committee                          increase in the salable quantity and                  Native Salable Quantity—1,514,902
                                                    expects that not all producers have                     allotment percentage proposed in this                 pounds. This amount is 62 percent of
                                                    Native spearmint oil held in reserve. As                action is vital to ensuring an adequate               the revised 2017–2018 allotment base of
                                                    such, the Committee calculates that                     supply of Native spearmint oil is                     2,443,391 pounds.
                                                    37,796 pounds of the Native spearmint                   available to the market moving forward.
                                                                                                                                                                     (4) Computed Increase in the 2017–
                                                    oil salable quantity will go unfulfilled.                  The Committee’s stated intent in the
                                                    Therefore, the total supply of Native                                                                         2018 Native Salable Quantity as a Result
                                                                                                            use of the Order’s volume control
                                                    spearmint oil that the Committee                                                                              of the Proposed Revision—439,851
                                                                                                            regulation is to keep adequate supplies
                                                    anticipates actually being available to                                                                       pounds. This figure represents 18
                                                                                                            available to meet market needs and to
                                                    the market over the course of the 2017–                                                                       percent of the 2017–2018 revised
                                                                                                            maintain orderly marketing conditions.
                                                    2018 marketing year would be increased                                                                        allotment base.
                                                                                                            With that in mind, the Committee
                                                    to 1,620,117 pounds (2017–2018                          developed its recommendation for                         (5) Expected Actual Increase in the
                                                    marketing year salable quantity plus                    increasing the Native spearmint oil                   Native Spearmint Oil Available to the
                                                    salable carry-in of 143,011 pounds from                 salable quantity and allotment                        Market for the 2017–2018 Marketing
                                                    the 2016–2017 marketing year minus an                   percentage for the 2017–2018 marketing                Year—402,055 pounds. This amount is
                                                    unused allotment of 37,796 pounds due                   year based on the information discussed               based on the Committee’s estimation of
                                                    to lack of pool oil). Actual sales of                   above, as well as the summary data                    Native spearmint oil that is actually
                                                    Native spearmint oil for the 2016–2017                  outlined below.                                       held by producers in the reserve pool
                                                    marketing year totaled 1,287,691                           (A) Initial estimated 2017–2018                    that may enter the market as a result of
                                                    pounds. The 5-year average of Native                    Native Allotment Base—2,443,297                       this proposal. The Committee estimates
                                                    spearmint oil sales is 1,309,793 pounds.                pounds. This is the allotment base                    that approximately 37,796 pounds of the
                                                       The Committee estimates that this                    estimate on which the original 2017–                  computed increase would go unfulfilled
                                                    action would result in 20,171 pounds of                 2018 salable quantity and allotment                   due to producers who do not have
                                                    salable Native spearmint oil being                      percentage was based.                                 sufficient Native spearmint oil in
                                                    carried into the 2018–2019 marketing                       (B) Revised 2017–2018 Native                       reserve to utilize their full allotted
                                                    year. While 20,171 pounds is a                          Allotment Base—2,443,391 pounds.                      salable quantity.
                                                    relatively low quantity of salable Native               This is 94 pounds more than the initial                  Scotch spearmint oil is also regulated
                                                    spearmint oil to end the marketing year,                estimated allotment base of 2,443,297                 by the Order. As mentioned previously,
                                                    reserve pool oil could be released into                 pounds. The difference is the result of               a salable quantity and allotment
                                                    the market under a future relaxation of                 annual adjustments made to the                        percentage for Scotch spearmint oil was
                                                    the volume regulation should it be                      allotment base according to the                       established in a final rule published in
                                                    necessary to adequately supply the                      provisions of the Order.                              the Federal Register on May 25, 2017
                                                    market prior to the beginning of the                       (C) Initial 2017–2018 Native                       (82 FR 24001). At the September 25,
                                                    2018–2019 marketing year. The                           Allotment Percentage—44 percent. This                 2017, meeting, the Committee
                                                    Committee estimates that a total of                     was unanimously recommended by the                    considered the current production,
                                                    1,237,237 pounds of Native spearmint                    Committee on October 19, 2016.                        inventory, and marketing conditions for
                                                    oil would be available from the reserve                    (D) Initial 2017–2018 Native Salable               Scotch spearmint oil. After receiving
                                                    pool if needed.                                         Quantity—1,075,051 pounds. This                       reports from the Committee staff and
                                                       As mentioned previously, when the                    figure is 44 percent of the original                  comments from the industry, the
jstallworth on DSKBBY8HB2PROD with PROPOSALS




                                                    original 2017–2018 marketing policy                     estimated 2017–2018 allotment base of                 consensus of the Committee was that
                                                    statement was drafted, handlers                         2,443,297 pounds.                                     the previously established salable
                                                    estimated the demand for Native                            (E) Adjusted Initial 2017–2018 Native              quantity and allotment percentage for
                                                    spearmint oil for the 2017–2018                         Salable Quantity—1,075,092 pounds.                    Scotch spearmint oil was appropriate
                                                    marketing year to be 1,250,000 pounds.                  This figure reflects the salable quantity             for the current market conditions. As
                                                    The Committee’s initial                                 actually available at the beginning of the            such, the Committee took no further
                                                    recommendation for the establishment                    2017–2018 marketing year. This                        action with regards to Scotch spearmint
                                                    of the Native spearmint oil salable                     quantity is derived by applying the                   oil for the 2017–2018 marketing year.


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                                                                           Federal Register / Vol. 82, No. 230 / Friday, December 1, 2017 / Proposed Rules                                          56925

                                                       This proposed rule would relax the                      There are eight spearmint oil handlers                Based on the information and
                                                    regulation of Native spearmint oil and                  subject to regulation under the Order,                projections available at the September
                                                    would allow producers to meet market                    and approximately 41 producers of                     25, 2017, and October 25, 2017,
                                                    demand while improving producer                         Scotch spearmint oil and approximately                meetings, the Committee considered
                                                    returns. In conjunction with the                        94 producers of Native spearmint oil in               several alternatives to this increase. The
                                                    issuance of this proposed rule, the                     the regulated production area. Small                  Committee considered leaving the
                                                    Committee’s revised marketing policy                    agricultural service firms are defined by             salable quantity and allotment
                                                    statement for the 2017–2018 marketing                   the Small Business Administration                     percentage unchanged, and also
                                                    year has been reviewed by USDA. The                     (SBA) as those having annual receipts of              considered other potential levels of
                                                    Committee’s marketing policy                            less than $7,500,000, and small                       increase. The Committee reached its
                                                    statement, a requirement whenever the                   agricultural producers are defined as                 recommendation to increase the salable
                                                    Committee recommends implementing                       those having annual receipts of less than             quantity and allotment percentage for
                                                    volume regulations or recommends                        $750,000 (13 CFR 121.201).                            Native spearmint oil after careful
                                                    revisions to existing volume regulations,                  Based on the SBA’s definition of                   consideration of all available
                                                    meets the intent of § 985.50. During its                small entities, the Committee estimates               information and input from all
                                                    discussion of revisions to the 2017–2018                that only two of the eight handlers                   interested industry participants, and
                                                    salable quantities and allotment                        regulated by the Order could be                       believes that the levels recommended
                                                    percentages, the Committee considered:                  considered small entities. Most of the                would achieve the desired objectives.
                                                    (1) The estimated quantity of salable oil               handlers are large corporations involved              Without the increase, the Committee
                                                    of each class held by producers and                     in the international trading of essential             believes the industry would not be able
                                                    handlers; (2) the estimated demand for                  oils and the products of essential oils.              to satisfactorily meet market demand.
                                                    each class of oil; (3) the estimated                    In addition, the Committee estimates                     In accordance with the Paperwork
                                                    production of each class of oil; (4) the                that 12 of the 39 Scotch spearmint oil                Reduction Act of 1995 (44 U.S.C.
                                                    total of allotment bases of each class of               producers and 31 of the 94 Native                     Chapter 35), the Order’s information
                                                    oil for the current marketing year and                  spearmint oil producers could be                      collection requirements have been
                                                    the estimated total of allotment bases of               classified as small entities under the                previously approved by OMB and
                                                    each class for the ensuing marketing                    SBA definition. Thus, the majority of                 assigned OMB No. 0581–0178 (Generic
                                                    year; (5) the quantity of reserve oil, by               handlers and producers of Far West                    Specialty Crops). No changes are
                                                    class, in storage; (6) producer prices of               spearmint oil may not be classified as                necessary in those requirements as a
                                                    oil, including prices for each class of oil;            small entities.                                       result of this action. Should any changes
                                                    and (7) general market conditions for                      The use of volume control regulation               become necessary, they would be
                                                    each class of oil, including whether the                allows the spearmint oil industry to                  submitted to OMB for approval.
                                                    estimated season average price to                       fully supply spearmint oil markets                       This proposed rule would relax the
                                                    producers is likely to exceed parity.                   while avoiding the negative                           volume regulation requirements
                                                    Conformity with USDA’s ‘‘Guidelines                     consequences of over-supplying these                  established under the Order.
                                                    for Fruit, Vegetable, and Specialty Crop                markets. Without volume control                       Accordingly, this action would not
                                                    Marketing Orders’’ has also been                        regulation, the supply and price of                   impose any additional reporting or
                                                    reviewed and confirmed.                                 spearmint oil would likely fluctuate                  recordkeeping requirements on either
                                                       The proposed increase in the Native                  widely. Periods of oversupply could                   small or large spearmint oil handlers. As
                                                    spearmint oil salable quantity and                      result in low producer prices and a large             with all Federal marketing order
                                                    allotment percentage would account for                  volume of oil stored and carried over to              programs, reports and forms are
                                                    the anticipated market needs for that                   future crop years. Periods of                         periodically reviewed to reduce
                                                    class of oil. In determining anticipated                undersupply could lead to excessive                   information requirements and
                                                    market needs, the Committee                             price spikes and drive end users to                   duplication by industry and public
                                                    considered changes and trends in                        source flavoring needs from other                     sector agencies.
                                                    historical sales, production, and                       markets, potentially causing long-term                   AMS is committed to complying with
                                                    demand.                                                 economic damage to the domestic                       the E-Government Act, to promote the
                                                                                                            spearmint oil industry. The Order’s                   use of the Internet and other
                                                    Initial Regulatory Flexibility Analysis
                                                                                                            volume control provisions have been                   information technologies to provide
                                                       Pursuant to requirements set forth in                successfully implemented in the                       increased opportunities for citizen
                                                    the Regulatory Flexibility Act (RFA)                    domestic spearmint oil industry since                 access to Government information and
                                                    (5 U.S.C. 601–612), the Agricultural                    1980 and provide benefits for producers,              services, and for other purposes.
                                                    Marketing Service (AMS) has                             handlers, manufacturers, and                             USDA has not identified any relevant
                                                    considered the economic impact of this                  consumers.                                            Federal rules that duplicate, overlap or
                                                    action on small entities. Accordingly,                     This proposed rule would increase                  conflict with this action.
                                                    AMS has prepared this initial regulatory                the quantity of Native spearmint oil that                In addition, the Committee’s meeting
                                                    flexibility analysis.                                   handlers may purchase from, or handle                 was widely publicized throughout the
                                                       The purpose of the RFA is to fit                     on behalf of, producers during the                    Far West spearmint oil industry and all
                                                    regulatory actions to the scale of                      2017–2018 marketing year, which ends                  interested persons were invited to
                                                    businesses subject to such actions in                   May 31, 2018. The 2017–2018 Native                    attend the meeting and participate in
jstallworth on DSKBBY8HB2PROD with PROPOSALS




                                                    order that small businesses will not be                 spearmint oil salable quantity was                    Committee deliberations on all issues.
                                                    unduly or disproportionately burdened.                  initially established at 1,075,051 pounds             The September 25, 2017, and October
                                                    Marketing orders issued pursuant to the                 and the allotment percentage initially                25, 2017, meetings were public and all
                                                    Act, and the rules issued thereunder, are               set at 44 percent. This proposed rule                 entities, both large and small, were able
                                                    unique in that they are brought about                   would increase the Native spearmint oil               to express views on this issue. Finally,
                                                    through group action of essentially                     salable quantity to 1,514,902 pounds                  interested persons are invited to submit
                                                    small entities acting on their own                      and the allotment percentage to 62                    comments on this proposed rule,
                                                    behalf.                                                 percent.                                              including the regulatory and


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                                                    56926                  Federal Register / Vol. 82, No. 230 / Friday, December 1, 2017 / Proposed Rules

                                                    information collection impacts of this                    Dated: November 28, 2017.                            information below for special
                                                    action on small businesses.                             Bruce Summers,                                         instructions.
                                                       A small business guide on complying                  Acting Administrator, Agricultural Marketing           FOR FURTHER INFORMATION CONTACT:
                                                    with fruit, vegetable, and specialty crop               Service.                                               Sarang V. Damle, General Counsel and
                                                    marketing agreements and orders may                     [FR Doc. 2017–25965 Filed 11–30–17; 8:45 am]           Associate Register of Copyrights, by
                                                    be viewed at: http://www.ams.usda.gov/                  BILLING CODE 3410–02–P                                 email at sdam@loc.gov, Regan A. Smith,
                                                    rules-regulations/moa/small-businesses.                                                                        Deputy General Counsel, by email at
                                                    Any questions about the compliance                                                                             resm@loc.gov, or Anna Chauvet,
                                                    guide should be sent to Richard Lower                   LIBRARY OF CONGRESS                                    Assistant General Counsel, by email at
                                                    at the previously mentioned address in                                                                         achau@loc.gov, or any of them by
                                                    the FOR FURTHER INFORMATION CONTACT                     U.S. Copyright Office                                  telephone at 202–707–8350.
                                                    section.                                                                                                       SUPPLEMENTARY INFORMATION:
                                                                                                            37 CFR Part 201
                                                       A 15-day comment period is provided                                                                         I. Background
                                                    to allow interested persons to respond                  [Docket No. 2005–6]
                                                                                                                                                                      Section 111 of the Copyright Act
                                                    to this proposal. Fifteen days is deemed
                                                                                                            Statutory Cable, Satellite, and DART                   (‘‘Act’’), title 17 of the United States
                                                    appropriate because handlers are aware
                                                                                                            License Reporting Practices                            Code, provides cable operators with a
                                                    of this action, which was recommended
                                                                                                                                                                   statutory license to retransmit a
                                                    by the Committee at a public meeting,                   AGENCY: U.S. Copyright Office, Library                 performance or display of a work
                                                    and the subject matter of this proposal                 of Congress.                                           embodied in a ‘‘primary transmission’’
                                                    is not complex. All written comments
                                                                                                            ACTION: Notice of proposed rulemaking.                 made by a television station licensed by
                                                    timely received will be considered                                                                             the Federal Communications
                                                    before a final determination is made on                 SUMMARY:     The U.S. Copyright Office                 Commission (‘‘FCC’’). Cable operators
                                                    this matter.                                            (‘‘Office’’) is seeking comment on                     that retransmit broadcast signals in
                                                    List of Subjects in 7 CFR Part 985                      proposed rules governing the royalty                   accordance with this provision are
                                                                                                            reporting practices of cable operators                 required to pay royalty fees to the
                                                      Marketing agreements, Oils and fats,                  under section 111 and proposed                         Copyright Office (‘‘Office’’), among
                                                    Reporting and recordkeeping                             revisions to the Statement of Account                  other requirements. Payments made
                                                    requirements, Spearmint oil.                            forms, and on proposed amendments to                   under section 111 are remitted semi-
                                                                                                            the Statement of Account filing                        annually to the Office, which invests the
                                                      For the reasons set forth in the                      requirements. With this Notice of
                                                    preamble, 7 CFR part 985 is proposed to                                                                        royalties in United States Treasury
                                                                                                            Proposed Rulemaking, the Office                        securities pending distribution of these
                                                    be amended as follows:                                  intends to resolve issues raised in an                 funds to copyright owners eligible to
                                                    PART 985—MARKETING ORDER                                earlier Notice of Inquiry directed                     receive a share of the royalties.2 In
                                                    REGULATING THE HANDLING OF                              towards cable reporting practices,1 as                 conjunction with royalty payments,
                                                    SPEARMINT OIL PRODUCED IN THE                           well as address additional issues that                 cable operators must also complete and
                                                    FAR WEST                                                have subsequently arisen. Further, to                  file statements of account (‘‘SOAs’’),
                                                                                                            the extent this rulemaking proposes                    which provide a record regarding the
                                                                                                            changes to the Office’s section 111                    cable operators’ retransmissions and
                                                    ■ 1. The authority citation for 7 CFR                   regulations governing the processing of                royalty payments to ‘‘promote uniform
                                                    part 985 continues to read as follows:                  refunds, supplemental or amended                       and accurate reporting, assist cable
                                                        Authority: 7 U.S.C. 601–674.                        payments, or calculation of interest, as               operators in meeting their obligations
                                                                                                            well as case management procedures,                    under the Act and regulations, and aid
                                                    [Subpart Redesignated as Subpart A]                     the Office proposes similar changes                    copyright owners, the Copyright Office,
                                                                                                            with regard to the regulations governing               and the Copyright [Royalty Judges] in
                                                    ■ 2. Redesignate ‘‘Subpart—Order                        the statutory licenses for satellite                   reviewing and using the information
                                                    Regulating Handling’’ as ‘‘Subpart A—                   carriers and digital audio recording                   provided.’’ 3 Information provided on
                                                    Order Regulating Handling’’.                            devices or media.                                      SOAs includes, among other things, the
                                                    [Subpart Redesignated as Subpart B                      DATES: Written comments must be                        number of channels on which the cable
                                                    and Amended]                                            received no later than 11:59 p.m.                      system made secondary transmissions,
                                                                                                            Eastern Time on January 16, 2018.                      the number of subscribers to the cable
                                                    ■ 3. Redesignate ‘‘Subpart—                             ADDRESSES: For reasons of government                   system, and the gross amount paid to
                                                    Administrative Rules and Regulations’’                  efficiency, the Copyright Office is using              the cable system by subscribers for the
                                                    as subpart B and revise the heading to                  the regulations.gov system for the                     basic service of providing secondary
                                                    read as follows:                                        submission and posting of public                       transmissions.4 Cable operators file the
                                                                                                            comments in this proceeding. All                       SOAs with the Office using an
                                                    Subpart B—Administrative                                comments are therefore to be submitted                 appropriate form provided by the
                                                    Requirements                                            electronically through regulations.gov.                Office.5
                                                                                                            Specific instructions for submitting
                                                                                                                                                                     2 The Office distributes those royalties in
                                                    ■ 4. In § 985.236, revise paragraph (b) to              comments are available on the
jstallworth on DSKBBY8HB2PROD with PROPOSALS




                                                                                                                                                                   accordance with periodic distribution orders
                                                    read as follows:                                        Copyright Office Web site at https://                  entered by the Copyright Royalty Board.
                                                                                                            copyright.gov/rulemaking/section111. If                  3 42 FR 61051, 61054 (Dec. 1, 1977) (explaining
                                                    § 985.236 Salable quantities and allotment
                                                    percentages—2017–2018 marketing year.                   electronic submission of comments is                   benefits of using a standard SOA form, referencing
                                                                                                            not feasible due to lack of access to a                the Copyright Royalty Tribunal, a precursor to the
                                                    *      *     *    *     *                               computer and/or the internet, please
                                                                                                                                                                   current Copyright Royalty Judges system).
                                                                                                                                                                     4 37 CFR 201.17(e)(5)–(7).
                                                       (b) Class 3 (Native) oil—a salable                   contact the Office using the contact                     5 Id. 201.17(d). The SOA forms are available in
                                                    quantity of 1,514,902 pounds and an                                                                            PDF and Excel format on the Office’s Web site at
                                                    allotment percentage of 62 percent.                       1 71   FR 45749 (Aug. 10, 2006).                     https://www.copyright.gov/licensing/sec_111.html.



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Document Created: 2018-10-25 10:45:50
Document Modified: 2018-10-25 10:45:50
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionProposed rule.
DatesComments must be received by December 18, 2017.
ContactDale Novotny, Marketing Specialist, or Gary D. Olson, Regional Director, Northwest Marketing Field Office, Marketing Order and Agreement Division, Specialty Crops Program, AMS, USDA; Telephone: (503) 326-2724, Fax: (503) 326-7440, or Email: [email protected] or [email protected]
FR Citation82 FR 56922 
CFR AssociatedMarketing Agreements; Oils and Fats; Reporting and Recordkeeping Requirements and Spearmint Oil

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