34204 .. Federal Register /:'Vol.'51, N6*1 87]'/ riday, September 26,'1986, / Rules and Regulations 34204 Federal Register I 'Vol. 51, Nd. 187 f Friday, September 26, 1986 / Rules and Regulations Examples. The following example in the State of Arkansas to be known as No comments have been received. -illustrates the principles of this section: "Arkansas Mountain." This decision is Therefore, this document establishes the Example (1) Assume Corporation M, an S the result of a petition submitted by Mr. "Arkansas Mountain" viticultural area corporation, has for its taxable year total Al Wiederkehr, a winery owner and with boundaries as proposed in Notice gross receipts of $200,000, passive investment grape grower in the area. The No. 588. income of $100,000; $60,000 of which is establishment of viticultural areas and interest income, and expenses directly the subsequent use of viticultural area Name of the Area connected with the production of such names in wine labeling and advertising The following evidence, submitted by interest income in the amount of $10,000. enables winemakers to label wines the petitioner, establishes that the new Assume also that at the end of the taxable more precisely and helps consumers to viticultural area is known by the name year Corporation M has Subchapter C better identify the wines they purchase. of "Arkansas Mountain": earnings and profits. Since more than 25 percent of the Corporation M's total gross EFFECTIVE DATE: October 27, 1986. (a] The name "Arkansas Mountain" receipts are passive investment income, and FOR FURTHER INFORMATION CONTACT. has been used on wine labels by the since Corporation M has Subchapter C Mr. Steve Simon, FAA, Wine and Beer petitioner to designate wines from this earnings and profits at the end of the taxable Branch, Bureau of Alcohol, Tobacco and area since 1974. year, Corporation M will be subject to the tax Firearms, 1200 Pennsylvania Avenue (b) Published descriptions of the area imposed by section 1375. The amount of NW, Washington, DC 20226 (202-566- have referred to it as the "Arkansas excess net passive investment income is 7626). Mountains." For example, the "Holiday $45,000 ($90,000 X (50,000/100,000)). Assume that the other $40,000 of passive investment SUPPLEMENTARY INFORMATION: Inn Magazine for Travelers," in an income is attributable to net capital gain and October 1969 article entitled "Vineyard that there are no expenses directly connected Background Village," stated: "Finding the grape- with such gain. Under these facts, $20,000 of ATF regulations in 27 CFR Part 4 laden vineyards, a colorful chalet with the excess net passive income is attributable provide for the establishment of definite gay window boxes, and huge wine to the net capital gain ($45,000x ($40,000/ viticultural areas. The regulations also cellars in the Arkansas mountains is an $90,000)). Accordingly, the amount of gain allow the name of an approved . unexpected adventure to most tourists. taken into account under section 1374[b)1) viticultural area to be used as an Yet the colony has been there for more and the taxable income of Corporation M than 80 years." Further, the Rev. under section 1374(b)[2) shall be reduced by appellation of origin on wine labels and $20,000. in wine advertisements. Placidus Oechsle, in his Historical Part 9 of 27 CFR provides for the Sketch of the Congregationof Our Lady listing of approved American viticultural of PerpetualHelp (1930], wrote as PART 602-[AMENDED] areas, the names of which may be used follows: "The Baron ... praised the Par. 4. as appellations of origin. thrifty and industrious settlers of The authority for Part 602 Section Teutonic blood, who had made in a few continues to read as follows: 4.25a(e)(1), Title 27 CFR, defines an American viticultural area as years a garden spot of a wilderness. Authority: 26 U.S.C. 7805 * . * a delimited grape-growing region They had selected the Arkansas Par. 5. Section 602.101(c) is amended distinguishable by geographical Mountains ... to become their home." by inserting in the appropriate place in features. Section 4.25a(e)(2) outlines the (c) The origin of the term "Arkansas the table procedures for proposing an American Mountain" was described by the viticultural area. Any interested person petitioner as follows: "Dr. John L. " 1.1374-iA (d ... 1545-0130". may petition ATF to establish a grape- Ferguson states the following Roscoe L. Egger, Jr., growing region as a viticultural area. information in reference to the Arkansas Commissionerof InternalRevenue. Petition Mountains. The name Arkansas came Approved: September 3, 1986. before Ozark or 'Aux Arcs' which ATF received a petition from Mr. Al means of the Arkansas or from among 1. Roger Mentz, Wiederkehr, Chairman of the Board and the Arkansas. The name Arkansas Assistant Secretary of the Treasury. Chief Executive Officer of Wiederkehr comes from the Arkansas Indians who [FR Doc. 86-21723 Filed 9-25-86; 8:45 am] Wine Cellars, Inc., proposing an area in lived in the area. The Arkansas River ILLING CODE 4030-01-M northwestern Arkansas as a viticultural was given its name to indicate that it area to be known as "Arkansas was the river of the Arkansas (Indians); Mountain." The area contains about .therefore the Arkansas River. The DEPARTMENT OF THE TREASURY 4,500 square miles. Within the area, mountains in the vicinity of the approximately 1,200 acres are currently Arkansas River were also given that Bureau of Alcohol, Tobacco and planted to grapes. The area is located in Firearms name to mean also the mountains of the the mountainous region of Arkansas, Arkansas (Indians); therefore the both north and south of the Arkansas Arkansas Mountains." 27 CFR Part 9 River. There are six bonded wineries or [I.D. AFT-235; Ref. Notice No, 588] bonded wine cellars authorized to Geography of the Area operate within the area. The following evidence establishes Establishment of Arkansas Mountain that Viticultural Area Notice of Proposed Rulemaking the new viticultural area is In response to the petition, ATF distinguished geographically from its AGENCY: Bureau of Alcohol, Tobacco published a notice of proposed surrounding areas: and Firearms, Department of the rulemaking, Notice No. 588, in the (a) To the north and west, the area is Treasury. Federal Register on Monday, April 7, distinguished from neighboring areas on ACTION: Final rule; Treasury decision. 1986 (51 FR 11753). That notice proposed the basis of mean winter minimum establishment of the "Arkansas temperature. The petitioner submitted SUMMARY: The Bureau of Alcohol, data collected over 50 years from 42 } Mountain" viticultural area and solicited Tobarco and Firearms (ATF has public comment concerning the locations (7 inside the area and 35 decided to establish a viticultural area proposal. outside of it). The data showed that Federal Register / Vol. 51,: No. 187 / Friday, September 26,, 1986 /I Rules and Regulations 34205 locations to the north and west of the The "Arkansas Mountain" boundaries (c) Significant adverse effects on area regularly experience significantly entirely enclose the approved "Altus" competition, employment, investment, colder mean winter minimum viticultural area. Further, the "Arkansas productivity, or on the ability of United temperatures. According to Professor Mountain" area is itself entirely States-based enterprises to compete Justin R. Morris of the University of enclosed within the approved "Ozark with foreign-based enterprises in Arkansas Division of Agriculture, this Mountain" area. In establishing a domestic or export markets. distinction "is due to the effects of the viticultural area based on geographical Paperwork Reduction Act mountains." The protective effects of the features which affect viticultural Arkansas mountains were described by, features, ATF recognizes that the The provisions of the Paperwork the petitioner, quoting at length from distinctions between a smaller area and Reduction Act of 1980, Pub. L..96-511, 44 NaturalResources of the State of its surroundings are more refined than U.S.C. Chapter 35, and its implementing Arkansas (1869) by James M. Lewis. In the differences between a larger area regulations, 5 CFR Part 1320, do not that book, Mr. Lewis claimed that and its surroundings. It is possible for a apply to this final rule, because no protection from cold northern weather is large viticultural area to contain requirement to collect information is due to the fact that the Ozark and approved viticultural areas, if each area imposed. Ouachita Mountains range east and fulfills the requirements for List of Subjects in 27 CFR Part 9 west, rather than north and south (as establishment of a viticultural area. within the Appalachians, for example). Administrative practice and Miscellaneous Consequently, Mr. Lewis said, the , procedures, Consumer protection, mountains provide shelter from violent ATF does not want to'give the Viticultural areas, Wine. - winds and sudden changes in impression by approving "Arkansas Drafting Information - temperature coming from the north; Mountain" as a viticultural area that it (b) To the east, the data is ambiguous is approving or endorsing the quality of The principal author of this document as to the existence of a temperature the wine from this area. ATF is is Steve Simon, FAA, Wine and Beer difference as described above. approving this area as being distinct but Branch, Bureau of Alcohol, Tobacco and However, the eastern boundary does not better than other areas. By Firearms. correspond approximately to a approving this area, ATF will allow Issuance topographical change, where the Boston wine producers to claim a distinction on and Ouachita Mountains begiftheir labels and advertisements as to the Accordingly, 27 CFR Part 9 is descent to the alluvial plain of the origin of the grapes. Any'commercial amended as follovs: advantage can only come'from MississippiRiver. This topographical PART 9--AMERICAN VITICULTURAL change is reflected in a change in the consumer acceptance of "Arkansas character of the soil; for instance, the Mountain" wines. AREAS Leadville-Taft soils begin to occur much Regulatory Flexibility Act Paragraph A. The authority citation more frequently; and, within the Linker for Part 9 continues to read as follows: The provisions of the Regulatory and Mountainburg soils, there is an V7 increasing predominance of the Linker Flexibility Act relating to a final Authority: U.S.C. 205. variety and a corresponding drop-off in regulatory flexibility analysis (5 U.S.C. Par. B. The table of sections in 27 CFR the Mountainburg. 604) are not applicable to this final rule, Part 9, Subpart C, is revised to add the (c) To the south, the boundary of the because it will not have a significant title of § 9.112, to read as follows: area delineates the extent of "soil types economic impact on a substantial Subpart C-Approved American Viticultural suitable for grape production" number of small entities. The final rule Areas (according to Professor Morris). is not expected to have significant Additionally, Professor Morris stated, secondary or incidental effects-on a Sec. "All areas south of the Arkansas substantial number of small entities. Mountain area would be considered in Further, the final rule.will not impose, or 9.112 Arkansas Mountain. the Pierce's disease region and in these otherwise cause, a significant increase areas, the Vitis rotundifolia are best in the reporting, recordkeeping, or other Par. C. Subpart C of 27 CFR Part 9 is adapted since they are resistant or compliance burdens on a substantial amended by adding § 9.112, which reads tolerant to Pierce's disease." Pierce's number of small entities. as follows: Accordingly, it is hereby certified disease is a vine-destroying disease,' § 9.112 Arkansas Mountain. associated with warm climates, which under the provisions of section 3 of the attacks vines of the Vitis vinifera Regulatory Flexibility Act (5 U.S.C. (a) Name. The'name of the viticultural species (the species from which most of 605(b)) that'this final rule will not have a area described in this section is the world's wines are produced). Vitis significant economic impact on a "Arkansas Mountain." vinifera is grown in the Arkansas substantial number of small entities. (b) Approved maps. The appropriate maps for determining the boundary of Mountain area, but has not been grown Executive Order 12291 successfully in the region to the south of the Arkansas Mountain viticultural area it. In compliance with Executive Order are two U.S.G.S. maps, titled: ' 12291 of Feb. 17, 1981, the Bureau has (1) Russellville, Arkansas, 1:250,000 Boundaries of the Area determined that this final rule is not a series compiled in 1954. The boundaries of the new viticultural major rule since it will not result in: (2) Fort Smith, Arkansas-Oklahoma, area are found on two U.S.G.S maps in (a) An annual effect on the economy 1:250,000 series, 1978. the scale of 1:250,000, titled Russellville, of $100 million or more; (c) Boundary-{1) General.The Arkansas, and Fort Smith, Arkansas- (b) A major increase in costs or prices Arkansas Mountain viticultural area is Oklahoma. The boundaries are as for consumers, individual industries, located in northwestern Arkansas. described in new § 9.112, which is added Federal, State, or local government Starting at the point where Frog Bayou to regulations by this Treasury decision. agencies, or geographical regions; or converges withthe Arkansas River, near 34206 Federal Register /Vol. ,51, No. 187 /. Friday, September g6, 1986 / Rules and Regulations 34206 Federal Register / Vol.51, No. 187 I Friday, September 26, 1986 I Rules and Regulations Yoestown, Arkansas (or the Fort Smith Signed: August 15,1986. submission and approval are set forth in map), the boundary proceeds: Stephen E.Higgins, regulations at 29 CFRPart 1902. If the (2) Boundary Description.(i) Director, Assistant Secretary, applying the Southwestward along the Arkansas Approved: September 8, 1986. criteria set forth in section 18(c) of the River to Vache Grasse Creek. Michael H. Lane, Act and 29 CFR 1902.3 and 1902.4, finds' that the plan provides or will provide for (ii) Then southeastward and Deputy Assistant Secretary(Regulatory, Trade, and Tariff Enforcement) State standards and enforcement whidh southwestward following Vache Grasse are "at least as effective" as Federal Creek to the place where it is crossed by IFR Doe. 86-21850 Filed 9-25-88; 8:45 am] standards and enforcement, initial Arkansas Highway 10i near Greenwood, BILLING CODE 4910-31-M approval is granted. Arkansas. A State may commence operations (iii) From there westward along DEPARTMENT OF LABOR under its plan after this determination is Highway 10 to U.S. Highway 71. (Note: made, but the Assistant Secretary Highway 10 is the primary highway - Occupational Safety and Health retains discretionary Federal leading to Greenwood to Hackett, Administration enforcement authority during the initial Arkansas.) approval period as provided by section 29 CFR Part 1952 18(e) of the Act. A State plan may (iv) Then southward and eastward receive initial approval even though; along Highway 71 until it crosses Rock [Docket No. T-0201 upon submission, it does not fully meet Creek. Indiana State Plan; Final Approval the criteria set forth in 9 CFR 1902.3 (v) Then northeastward along Rock Determination and 1902.4 if it includes satisfactory Creek to Petit Jean Creek. assurances by the State that it Will take AGENCY: Department of Labor, the necessary "developmental steps" to' (vi) Then generally northeastward and Occupational Safety and Health meet the criteria within a 3-year period. eastward along Petit jean Creek until it Administration (OSHA). 29 CFR 1902.2(b). The Assistant becomes the Petit Jean River (on the ACTION: Final State plan approval. Secretary publishes a notice of. Russellville map). "certification of completion of SUMMARY: This document amends developmental steps" when all of a" (vii) Then generally eastward along Subpart Z of 29 CFR Part 1952 to reflect , the Petit Jean River, flowing through State's developmental commitments the Assistant Secretary's decision have been satisfactorily met. 29 CFR Blue Mountain Lake, until the Petit Jean granting final approval to the Indiana 1902.34. River joins the Arkansas River. State plan. As a result of this affirmative When a State plan that has been (viii) Then generally eastward along determination under section 18(e) of the granted initial approval is developed the Arkansas River to Cadron Creek. Occupational Safety and Health Act of sufficiently to warrant a suspension of 1970, Federal OSHA standards and concurrent Federal enforcement activity, (ix) Then generally northward and enforcement authority no longer apply northeastward along Cadron Creek to it becomes eligible to enter into an to occupational safety and health issues "operational status agreement" with the place where it is crossed by U.S. covered by the Indiana plan, and Highway OSHA. 29 CFR 1954.3(fn. A State must 65. authority for Federal concurrent have enacted its enabling legislation, (x} From there northward along jurisdiction is relinquished, Federal promulgated State standards, achieved Highway 65 to its intersection with enforcement jurisdiction is retained over an adequate level of qualified personnel. Arkansas Highway 16 near Clinton, maritime employment in the private and established a system for review of Arkansas. sector and private-sector hazardous- contested enforcement actions; Under waste disposal facilities designated as these voluntary agreements, concurrent (xi) From there following Highway 16 Superfund sites. Federal jurisdiction generally westward to its intersection Federal enforcement will not be remains in effect with respect to Federal initiated with regard to Federal with Arkansas Highway 23 in Brashears, Government employers and employees. Arkansas. occupational safety and health EFFECTIVE DATE: September 20, 1986. standards in (xii) From there southward along those issues covered by the FOR FURTHER INFORMATION CONTACT: State plan, where the State program is Highway 23 to the Madison County- James Foster, Director, Office of providing an acceptable level of Franklin County line. Information and Consumer Affairs, protection. (xiii) Then westward and southward Occupational Safety and Health Following the initial approval of a along that county line to the Madison Administration, U.S. Department of complete plan, or the certification of a County-Crawford County line. Labor, Room N-3637, 200 Constitution developmental plan, the Assistant (xiv) Then westward along that Avenue, NW., Washington, DC 20210. Secretary must monitor and evaluate county line to the Washington County- Telephone (202) 523-8148. actual operations under the plan for a Crawford County.line. SUPPLEMENTARY INFORMATION: period of a least one year to determine, on the basis of actual operations (xv) Then westward along that county Introduction under line to Jones Fork (on the Fort Smith the plan, whether the criteria set forth in map). Section 18 of the Occupational Safety section 18(c) of the Act and 29 CFR (xvi) Then southward along Jones and Health Act of 1970 (the "Act") 1902.3, 1902.4 and 1902.37 are being provides that States Fork which desire to applied. An affirmative determination until it joins Frog Bayou near assume responsibility for the Winfrey, Arkansas. under section 18(e) of the Act (usually development and enforcement of referred to as ' final approval" of the (xvii] Then generally southward along occupational safety and health State plan) results in the relinquishment Frog Bayou, flowing through Lake standards may do so by submitting, and of authority for Federal concurrent Shepherd Springs and Lake Fort Smith, obtaining Federal approval of, a State jurisdiction in the State with respect to to the starting point. plan. Procedures for State plan occupational safety and health issues