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Federal Register / Vol. 50, No. 29 / Tuesday, February 12, 1985 / Proposed Rules 5775 Proven Property Owned by Such (2) Partnerships,Trusts, and Estates

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Federal Register / Vol. 50, No. 29 / Tuesday, February 12, 1985 / Proposed Rules 5775 Proven Property Owned by Such (2) Partnerships,Trusts, and Estates Federal Register / Vol. 50, No. 29 / Tuesday, February 12, 1985 / Proposed Rules 5775 proven property owned by such (2) Partnerships,trusts, and estates. In Only one such certificate need be filed landowner. the case of a partnership, the even though the producer may furnish (iii) Exclusion for productionfrom partnership's economic interest in the certificates to more than one operator, certain transferredproperties-A) In crude oil shall be allocated among the purchaser, partnership, or other general. In the case of a transfer of an partners on the basis of each partner's disburser. interest in any property, the qualified proportionate share of the partnership's * * * * * royalty production of the transferee income from the crude oil, and the Roscoe L.Egger, Jr. shall not include any production partner to whom the crude oil is Commissioner of InternalRevenue. attributable to an interest that has been allocated shall be treated as the transferred after June 9, 1981, in a producer of the crude oil. In the case of [FR Doc. 85-2719 Filed 2-11-85; 8:45 am] transfer which is described in section a trust (other than a grantor trust, i.e., a BILLING CODE 4830-01-M 613A(c)(9)(A). For the purpose of the trust where the grantor or another preceding sentence, a transfer includes a person is treated as substantial owner of Bureau of Alcohol, Tobacco and the trust under subpart E of subchapter J sublease and property held by an estate Firearms shall be treated as owned both by the of chapter I of the Internal Revenue estate and proportionately by the Code) or an estate, the entity is the 27 CFR Part 9 beneficiaries of the estate. producer rather than the benficiaries. In (B) Exception for certain transfersat the case of a grantor trust, to the extent [Notice No. 556] death or among certain relatedpersons. that a person or entity (the grantor or The transfer rule of paragraph another person) is treated for purposes Mimbres Valley; Establishment of (f)(3](iii)(A) of this section does not of income taxation under subchapter J of Viticultural Area apply to any transfer described in chapter 1 of the Internal Revenue Code section 613A(c)(9)(B) (relating to certain as the owner of a crude oil interest held AGENCY: Bureau of Alcohol, Tobacco transfers at death or among certain by such trust, such person or entity shall and Firearms (ATF), Department of the related persons). be deemed to be the producer of the Treasury. (C) Exception for certain transfers crude oil attributable to such interest for ACTION: Notice of proposed rulemaking. where the transferorand the transferee purposes of section 4996(a)(1). (See also are requiredto share the royalty limit. § 51.4994-1 for special rules concerning SUMMARY: The Bureau of Alcohol, The transfer rule of paragraph the treatment of trusts and estates for Tobacco and Firearms (ATF) is (f)(3)(iii)(A) of this section shall not purposes of determining the considering the establishment of a apply to any transfer so long as the applicability of certain exemptions from viticultural area located in Luna and transferor and the transferee are the windfall profit tax.) Grant Counties in southwestern New required to share the royalty limit in Mexico to be known as the "Mimbres accordance with the rules of paragraph Par. 3. Paragraph (b)(1) of § 51.4995-2 Valley." The southern boundary of the (f){4) of this section, but only if the is revised to read as follows: -proposed viticultural area reaches the production from the property was U.S./Mexico International border. This § 51.4995-2 Producer's certificate. qualified royalty production of the proposal is the result of a petition transferor. submitted by Ms. Pam Ray, President of (4) Royalty limit-(i) In general.A (b) Exemption certificate-1)In the Southwest Chapter of the New qualified royalty owner's qualified general.For purposes of this section, an Mexico Vine and Wine Society. New royalty production is determined by exemption certificate is a written Mexico State University, College of applying section 4994(f)(2)(A). statement certifying that all of the Agriculture and Home Economics (ii) Productionexceeds limitation. If a producer's crude oil from a property is located at Las Cruces, New Mexico, qualified royalty owner's qualified exempt from the tax imposed by section participated in gathering. evidence for royalty production for any quarter 4986 because the crude oil constitutes the petition of this proposed viticultural exempt Indian oil or exceeds the royalty limit in section exempt royalty oil area. The establishment of viticultural 4994(f)(2)(A) for such quarter, the or the oil is from a qualified areas and the subsequent use of royalty owner may allocate the royalty governmental interest or a qualified viticultural area names in wine labeling charitable limit for such quarter to any qualified interest. In the case of a trust and advertising will enable industry to or estate described in paragraphs (b)(4) royalty production that the royalty label wines more precisely and will help or (c)(3) of § 51.4994-1, the exemption consumers to better identify the wines owner selects. certificate may certify that a percentage (iii) Allocation of royalty limit among they may purchase. of the oil from that property is exempt taxpayers. For the purpose of allocating DATE: Written comments must be from the tax imposed by section 4986 the royalty limit in section 4994(f)(2)(A) because that portion of the oil is oil from received by March 29, 1985. among taxpayers, section 6429(c) (2) a qualified charitable or governmental ADDRESSES' Send w~itten comments to: thru (4) will be applied except that the interest. The percentage referred to in Chief, FAA, Wine and Beer Branch, royalty limit determined under section the preceding sentence may be based on Bureau of Alcohol, Tobacco and 4994(f)(2)(A) is substituted in place of a reasonable estimate of the percentage Firearms, P.O. Box 385, Washington, DC $2,500 each time it appears in section of the oil from the property that is held 20044-0385, (Attn: Notice No. 556.) 6429(c) (2) thru (4). for the benefit of a qualified charity or Copies of the petition, the proposed (g) Exempt stripper well oil. governmental unit for that taxable regulations, the appropriate maps, and [Reserved] period. Any producer who furnishes an the written comments will be available Par. 2. Paragraph (b)(2) of § 51.4996-1 exemption certificate (other than an for public inspection during normal is revised to read as follows: exempt royalty owner's certificate) to an business hours at: ATF Reading Room, operator, purchaser, partnership, or Office of Public Affairs and Disclosure, § 51.4996-1 Definitions. other disburser shall also file an Room 4407, Federal Building, 12th and * * * * * (b} Producer* * exemption certificate with the Internal Pennsylvania Avenue, NW, Washington, Revenue Service Center, Austin, Texas. DC. 5776 Federal Register / Vol. 50, No. 29 / Tuesday, February 12, 1985 / Proposed Rules FOR FURTHER INFORMATION CONTACT: Columbus on the New Mexico, U.S./ fruit trees were planted on the church Edward A. Reisman, FAA, Wine and Mexico border. It consists of 995 square grounds. Beer Branch, Bureau of Alcohol, miles of land (636,800 acres) on which (e) Emanuel Vocale who resides on Tobacco and Firearms, 1200 there is one bonded winery and 12 land near Deming has 220 viens of tokay Pennsylvania Avenue, NW, Washington, private grape-growers. The one bonded grapes that were planted by his father in DC 20226 (202-556-7626). winery is located near Deming, New 1932. SUPPLEMENTARY INFORMATION: Mexico. Currently there are (f) The names of Mimbres Valley is in approximately 1,500 acres of grapes Background widespread usage today. Since 1850 the planted for viticulture in the proposed name has been applied to natural and On August 23, 1978, ATF published Mimbres Valley viticultural area. Local manmade landmarks in the Mimbres Treasury Decision ATF-53 (43 FR 37672, experts predict that during the next few Valley. It also appears in literature and 54624) revising regulations in 27 CFR years, grape acreage and viticultural maps of the area. Some uses of the name Part 4. These regulations allow the activity is expected to increase that are found within or near the estblishment of definite viticultural dramaticially in the Mimbres Valley. boundaries of the proposed viticultural areas. The regulations also allow the The petitioner claims that the area are Mimbres, Mimbres Valley, name of an approved viticultural area to proposed viticultural area is distinguised Mimbres Peak, Mimbres River, Camp be used as an appellation of origin on from the surrounding areas based on the Mimbres, soil associations including wine labels and in wine advertisements. following evidence submitted to ATF: Mimbres (Mimbres-Verhalen, Hondale- On October 2, 1979, ATF published (1) Evidence that the name "Mimbres Mimbres-Bluepoint) and also the Treasury Decision ATF-60 (44 FR 56692) Valley" is locally and/ornationally Mimbres Underground Water Basin. which added a new Part 9 to 27 CFR, known as referring to the area specified These references all appear on U.S.G.S. providing-for the listing of approved in the petition. and Soil Conservation Service maps American viticultural areas, the names (a) The Mimbres Valley derives its submitted by the petitioner. According of which may be used as appellations of name from the Mimbres Indians who to the petitioner, these names have long origin. inhabited the valley between 1100 and been established to clearly and closely Section 4.25a(e)(1), Title 27, CFR, 1300 A.D. Today, ruins of their dwellings associate the identity of the Mimbres defines an American viticultural area as are still found in the valley.
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