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T.D. ATF 454; Ref: Notice No

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T.D. ATF 454; Ref: Notice No 29476 Federal Register / Vol. 66, No. 105 / Thursday, May 31, 2001 / Rules and Regulations publications issued by the Railroad Background approximately 500 acres of planted Retirement Board. The merchandise also On August 23, 1978, ATF published varietal winegrapes. Currently two (2) bears the seal of the Railroad Retirement Treasury Decision ATF–53 (43 FR wineries and seventeen (17) vineyards Board. 37672, 54624) revising regulations in 27 exist within the Santa Rita Hills area. CFR part 4. These regulations allow the Two additional vineyards are being § 396.5 Penalty for misuse of the seal. developed. Unauthorized use of the seal of the establishment of defined viticultural Railroad Retirement Board may result in areas. The regulations also allow the Comments criminal prosecution under applicable name of an approved viticultural area to On September 11, 1998, ATF law. be used as an appellation of origin in published a notice of proposed the labeling and advertising of wine. Dated: May 22, 2001. rulemaking, Notice 866, in the Federal On October 2, 1979, ATF published Register, soliciting comments on the By Authority of the Board. Treasury Decision ATF–60 (44 FR proposed vitucultural area. Beatrice Ezerski, 56692) which added a new part 9 to 27 Secretary to the Board. CFR, providing for the listing of Analysis of Comments [FR Doc. 01–13654 Filed 5–30–01; 8:45 am] approved American viticultural areas. ATF received a total of 35 comments BILLING CODE 7905–01–P Section 4.25a(e)(1), Title 27, CFR, concerning this petition. Eleven letters defines an American Viticultural Area of support from various persons familiar (AVA) as a delimited grape-growing with the proposed AVA were submitted region distinguishable by geographical with the petition. These letters of DEPARTMENT OF THE TREASURY features, the boundaries of which have support included industry ‘‘experts,’’ been recognized and defined in subpart vintners, consultants, local politicians Bureau of Alcohol, Tobacco and C of part 9. Section 4.25a(e)(2) outlines (such as the Chair for the Santa Barbara Firearms the procedure for proposing an AVA. County Board of Supervisors and the Any interested person may petition ATF Mayor of the city of Lompoc), and 27 CFR Part 9 to establish a grape-growing region as a viticulturists. Seven of the eleven viticultural area. The petition should comments were from persons who had [T.D. ATF 454; Ref: Notice No. 866] include: also signed the petition. All 11 (a) Evidence that the name of the comments attested to the uniqueness of RIN 1512–AA07 proposed viticultural area is locally the area, its distinctive characteristics and/or nationally known as referring to (geological, geographic, and climatic) Establishment of Santa Rita Hills the area specified in the petition; and the local recognition of the area by Viticultural Area (98R–129 P) (b) Historical or current evidence that the proposed name. AGENCY: Bureau of Alcohol, Tobacco the boundaries of the viticultural area ATF received 24 comments that and Firearms (ATF), Department of the are as specified in the petition; opposed the establishment of the Santa Treasury. (c) Evidence relating to the Rita Hills AVA. Most of these geographical features (climate, soil, ACTION: Final rule; Treasury decision. commenters were foreign/international elevation, physical features, etc.) which importers and distributors. The SUMMARY: This final rule establishes a distinguish the viticultural features of opposition in each response revolved viticultural area located in Santa the proposed area from surrounding around the similarity of the proposed Barbara County, California, to be known areas; name to an already established ‘‘Santa as ‘‘Santa Rita Hills.’’ The proposed area (d) A description of the specific Rita’’ brand of wine from Chile. boundaries of the viticultural area, occupies more than 48 square miles. All Commenters Opposing the This action is being taken as a result of based on features which can be found on United States Geological Survey Establishment of the ‘‘Santa Rita Hills’’ a petition from viticulturists and Viticultural Area Presented the vintners of the proposed area under the (U.S.G.S.) maps of the largest applicable scale; and Following To Support Their Contention direction of J. Richard Sanford (Sanford That the Petition To Establish the Santa Winery), Bryan Babcock (Babcock (e) A copy (or copies) of the appropriate U.S.G.S. map(s) with the Rita Hills Viticultural Area Should Be Vineyards and Winery), and Wesley D. Denied Hagen (Vineyard Manager of Clos Pepe boundaries prominently marked. There is already a well known and Vineyards). Petition The establishment of viticultural areas established ‘‘Santa Rita’’ vineyard and and the subsequent use of viticultural ATF received a petition under the winery located in Chile, Vina Santa area names as appellations of origin in direction of J. Richard Sanford (Sanford Rita, which was founded in 1880 and is wine labeling and advertising allow Winery) which was written by Wesley known worldwide. Vina Santa Rita is a wineries to designate the specific areas D. Hagen (Vineyard Manager of Clos public company whose shares are where the grapes used to make the wine Pepe Vineyards), on behalf of traded on the Santiago Stock Exchange. are grown and enable consumers to viticulturists and vintners working in This ‘‘Santa Rita’’ winery is the second better identify the wines they purchase. Santa Barbara County, California. The largest winery in Chile, with consumer petition, which was signed by 22 brand recognition in the Chilean wine EFFECTIVE DATE: July 30, 2001. people, 14 of whom are local wine grape industry. Large sums of money have FOR FURTHER INFORMATION CONTACT: growers, proposed to establish a been invested by both the ‘‘Santa Rita’’ Joyce A. Drake, ATF Specialist, viticultural area surrounded by but winery in Chile and various importers Regulations Division, Bureau of separate from the Santa Ynez Valley and distributors worldwide to advertise Alcohol, Tobacco and Firearms, 650 AVA of California to be known as and promote the ‘‘Santa Rita’’ (Chile) Massachusetts Avenue, NW., ‘‘Santa Rita Hills.’’ The boundary of the brand. Washington, DC 20091–0221 (202)-927– viticultural area encloses an estimated The opposing commenters contend 8210. area slightly greater than forty-eight (48) that the establishment of a ‘‘Santa Rita SUPPLEMENTARY INFORMATION: square miles and contains Hills’’ viticultural area would confuse VerDate 11<MAY>2000 15:47 May 30, 2001 Jkt 194001 PO 00000 Frm 00028 Fmt 4700 Sfmt 4700 E:\FR\FM\31MYR1.SGM pfrm11 PsN: 31MYR1 Federal Register / Vol. 66, No. 105 / Thursday, May 31, 2001 / Rules and Regulations 29477 wine consumers who already associate enologically for producing world class petition.) The patent issued included the name ‘‘Santa Rita’’ with the Chilean cool-climate grapes such as Pinot Noir 13,316 acres within the boundary of the wine. One commenter stated that, since and Chardonnay, because of the unique Santa Rita Land Grant. the names are phonetically identical climatic and geographical influences of The names ‘‘Santa Rita’’ and ‘‘Santa (sans the last word ‘‘Hills’’), a product the area. Rita Hills’’ are both well documented in labeled of a ‘‘Santa Rita Hills’’ the petition and are both supported by appellation may be seen as a variety of Discussion written comments evidencing local the Chilean ‘‘Santa Rita’’ as the Chilean Evidence of Name recognition of the name as referring to the area specified in the petition. ATF ‘‘Santa Rita’’ is surrounded by hills and ATF is satisfied that the petitioner mountains. Also, since both names finds that the name ‘‘Santa Rita Hills’’ provided evidence that the name ‘‘Santa would refer to the same product (wine), is appropriate to identify the viticultural Rita Hills’’ is locally known as referring the likelihood of consumer confusion area based upon evidence submitted to the area specified in the petition. In would increase. with the petition, including The opponents believe Chile’s ‘‘Santa the exhibits and maps furnished with commenters’ support of the name Rita’’ owns a U.S. trademark and, the petition, there are numerous ‘‘Santa Rita Hills’’ to describe the therefore, the establishment of the references to both ‘‘Santa Rita’’ and viticultural area and U.S.G.S maps ‘‘Santa Rita Hills’’ viticultural area ‘‘Santa Rita Hills.’’ identifying the area as ‘‘Santa Rita would result in an infringement of the Evidence submitted with the petition Hills’’. ‘‘Santa Rita’’ registered mark under the relating to name includes: As to potential confusion between a Lanham Act. (a) The U.S.G.S. Lompoc, Lompoc product labeled with a ‘‘Santa Rita The opponents’ view is that the Hills, Los Alamos, and Santa Rosa Hills’’ AVA and wines labeled with the establishment of a ‘‘Santa Rita Hills’’ Quadrangle maps used to show the name ‘‘Santa Rita,’’ a similar issue was AVA would violate the U.S. obligations boundaries of the proposed area use the raised when ATF was presented with a under the Paris Convention and General name ‘‘Santa Rita Hills’’ to identify the petition to establish a ‘‘Madera’’ AVA Agreement on Tariffs and Trade area. back in 1984. Some commenters to the (GATT), including Trade-Related (b) The U.S.G.S. Water-Resources petition, including the Portuguese Aspects of Intellectual Property Rights Investigations Report 970–4056 Embassy, objected to the appellation of (TRIPS). (Evaluation of Ground Water Flow and ‘‘Madera’’ due to possible confusion Solute Transport in the Lompoc Area, with the Portuguese island of Madeira Arguments Supporting the Santa Barbara County, California) which had produced world famous Establishment of the ‘‘Santa Rita Hills’’ discusses the ‘‘Santa Rita Upland wine for over 500 years. The Viticultural Area Basin.’’ The report indicates that ‘‘Santa commenters were concerned that the The name ‘‘Santa Rita Hills’’ is locally Rita’’ is a recognized geological, use of the appellation’’Madera’’ would and/or nationally known as referring to geographical, and hydrological cause possible confusion with Madeira the specified area through maps, land appellation in Santa Barbara County, wine (a class and type of dessert wine).
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