[Federal Register: August 15, 2003 (Volume 68, Number 158)]
[Proposed Rules]
[Page 48839-48843]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr15au03-17]
[[Page 48839]]
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DEPARTMENT OF THE TREASURY
Alcohol and Tobacco Tax and Trade Bureau
27 CFR Part 9
RIN: 1513-AA50
[Notice No. 14]
Proposed Dundee Hills Viticultural Area (2002R-218P)
AGENCY: Alcohol and Tobacco Tax and Trade Bureau (TTB), Treasury.
ACTION: Notice of proposed rulemaking.
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SUMMARY: The Alcohol and Tobacco Tax and Trade Bureau proposes to
establish the Dundee Hills viticultural area in Yamhill County, Oregon.
Located entirely within the established Willamette Valley viticultural
area, the proposed Dundee Hills area covers 6,490 acres, of which 1,264
are planted to grapes. We invite comments on this proposal.
DATES: We must receive written comments on or before October 14, 2003.
ADDRESSES: You may send comments to any of the following addresses:
[sbull] Chief, Regulations and Procedures Division, Alcohol and
Tobacco Tax and Trade Bureau, PO Box 50221, Washington, DC 20091-0221
(Attn: Notice No. 14);
[sbull] (202) 927-8525 (facsimile);
[sbull] nprm@ttb.gov (e-mail); or
[sbull] http://www.ttb.gov (An online comment form is posted with
this notice on our Web site.)
You may view copies of this notice and any comments received at
http://www.ttb.gov/alcohol/rules/ or by appointment at the ATF
Reference Library, 650 Massachusetts Avenue, NW., Washington, DC 20226;
phone (202) 927-7890.
See the ``Public Participation'' section of this notice for
specific instructions and requirements, and for information on how to
request a public hearing.
FOR FURTHER INFORMATION CONTACT: N. A. Sutton, Specialist, Regulations
and Procedures Division (Oregon), TTB, 946 NW Circle Blvd.,
286, Corvallis, OR 97330; telephone (415) 271-1254.
SUPPLEMENTARY INFORMATION:
Background on Viticultural Areas
TTB Authority
The Federal Alcohol Administration Act (FAA Act) at 27 U.S.C.
205(e) requires that alcohol beverage labels provide the consumer with
adequate information regarding a product's identity, while prohibiting
the use of deceptive information on such labels. The FAA Act also
authorizes the Secretary of the Treasury to issue regulations to carry
out the Act's provisions. The Secretary has delegated this authority to
the Alcohol and Tobacco Tax and Trade Bureau (TTB).
Regulations in 27 CFR part 4, Labeling and Advertising of Wine,
allow the establishment of definitive viticultural areas and the use of
their names as appellations of origin on wine labels and in wine
advertisements. Title 27 CFR part 9, American Viticultural Areas,
contains the list of approved viticultural areas.
Definition
Title 27 CFR 4.25a(e)(1) defines an American viticultural area as a
delimited grape-growing region distinguishable by geographic features
whose boundaries have been delineated in subpart C of part 9. The
establishment of viticultural areas allows the identification of
regions where a given quality, reputation, or other characteristics of
the wine is essentially attributable to its geographic origin. We
believe that the establishment of viticultural areas allows wineries to
describe more accurately the origin of their wines to consumers and
helps consumers identify the wines they purchase. Establishment of a
viticultural area is neither an approval nor endorsement by TTB of the
wine produced there.
Requirements
Section 4.25a(e)(2) outlines the procedure for proposing an
American viticultural area. Anyone interested may petition TTB to
establish a grape-growing region as a viticultural area. The petition
must include--
[sbull] Evidence that the proposed viticultural area is locally
and/or nationally known by the name specified in the petition;
[sbull] Historical or current evidence that the boundaries of the
proposed viticultural area are as specified in the petition;
[sbull] Evidence that the proposed area's growing conditions, such
as climate, soils, elevation, physical features, etc., distinguish it
from surrounding areas;
[sbull] A description of the proposed viticultural area's specific
boundaries, based on features found on maps approved by the United
States Geological Survey (USGS); and
[sbull] A copy of the appropriate USGS-approved map(s) with the
boundaries prominently marked.
Impact on Current Wine Labels
If this proposed viticultural area is established, bottlers who use
brand names like the name of the viticultural area may be affected.
Such bottlers must ensure that their existing products are eligible to
use the name of the viticultural area as an appellation of origin. For
a wine to be eligible, at least 85 percent of the grapes in the wine
must have been grown within the viticultural area and must meet the
other conditions listed in 27 CFR 4.25a(e)(3).
If the wine is not eligible to use the appellation, the bottler
must change the brand name of that wine and obtain approval of a new
label. Different rules apply to a wine in this category bearing a brand
name traceable to a label approved before July 7, 1986. See 27 CFR
4.39(i) for details. In addition, if you use the viticultural area name
on a wine label in a context other than an appellation of origin, the
general prohibitions against misleading representation in 27 CFR part 4
apply.
Dundee Hills Petition
TTB has received a petition from Mr. Alex Sokol Blosser, secretary
of the North Willamette Valley AVA Group, proposing the establishment
of a new viticultural area to be called ``Dundee Hills'' in Yamhill
County, Oregon. The petition states that within the 6,490-acre proposed
viticultural area, 1,264 acres are currently planted to grapes with
another 800 acres available for future vineyard use.
This proposed area is entirely within the northern portion of the
established Willamette Valley viticultural area in northwestern Oregon.
It is located about 28 miles southwest of Portland, Oregon, and about
40 miles inland from the Pacific Ocean near the town of Newberg. The
township of Dundee straddles the proposed area's eastern border, the
Yamhill River runs near its southern boundary, Millican Creek and the
Trappist Abbey of Our Lady of Guadalupe anchor its west side, and the
Chehalem Valley lies beyond its northern boundary.
The Dundee Hills rise above the low, flat floors of the surrounding
Willamette and Chehalem Valleys. These hills have peaks generally above
700 feet in elevation, with the highest rising to 1,067 feet. The
petition states that in addition to their higher elevation, the hills
have warmer nighttime temperatures and less low-elevation fog and frost
than the surrounding valleys.
The North Willamette Valley AVA Group originally proposed the name
``Red Hills,'' but upon learning of other
[[Page 48840]]
petitioners proposing the same (or a similar) name for other
viticultural areas, the Group amended its petitioned name to ``Red
Hills of Dundee.'' After continuing concern, the Group again renamed
petitioned area ``Dundee Hills'' to avoid confusion with other domestic
and international ``Red Hill'' or ``Red Hills'' viticultural areas.
Name Evidence
The revised petition states that local residents, vintners, and
others know the proposed viticultural area as the ``Dundee Hills.''
Noting that several area businesses use the Dundee Hills name, the
petition includes references to the October 2002 Yamhill County,
Oregon, Verizon Super Pages telephone book, which lists ``Dundee Hills
Estate,'' and the ``Shop Newberg'' Web site, which lists ``Dundee Hills
Farm.''
The updated petition also includes over 30 other examples of the
proposed name's use from academic journals, magazines, newspapers, and
Web sites. These include Ellen C. McCornack's March 1912 Oregon
Historical Society Quarterly article, ``A Glimpse into Prehistoric
Oregon.'' The Willamette Valley was, she noted, a large, prehistoric
body of water, and that ``[a]cross a narrow straight from Chehalem was
the island of the Dundee Hills * * *.''
An article in the fall/winter 1998 issue of Wine Press Northwest,
``In with the New World,'' lists several pioneer Oregon wine growers,
including David Lett, who arrived in 1965 with:
a degree in viticulture from the University of California-Davis and
a plan to find a cool climate suitable for planting pinot noir and
other varieties from Burgundy. Lett decided on the Dundee Hills in
the Willamette Valley * * *. Another early pioneer is Dick Erath of
Erath Vineyards, also still producing great wine in the Dundee Hills
near Newberg.
Fred Delkin, in a 2002 Oregon Magazine article, ``Papa Pinot Still
Preaching Gospel That Created an Industry,'' also notes that, in 1966,
Lett planted ``Pinot Noir and its cousin, Pinot Gris, in the Dundee
hills area.'' A November 14, 2002, Seattle Times article, ``Wine Is the
Main Course this Thanksgiving Celebration,'' adds, ``Erath Vineyards,
high in the Dundee hills, is one of the Willamette Valley's pioneer
wineries.''
The 1989 Parker's Wine Buyer's Guide (page 814) explains that
``Pinot Noir from the Dundee Hills, a subregion of the Willamette
Valley, has a more herbaceous, bing-cherry fruitiness.'' In Marne
Coggan's Vineyards and Winery Management article, ``Vineyard Land
Values Part 2: What's Happening Beyond the North Coast'' (Vol. 27, No.
4, 2001), states:
The premier Oregon wine growing area is called the Dundee Hills
* * * Vacant land values in the Dundee Hills have climbed from
$8,000-$10,000 to $10,000-$15,000 per acre. But those prices drop
dramatically as you head south toward Salem and the Polk County
area, where values are probably half of the Dundee Hills levels.
In addition, the revised petition contains an October 2001 Oregon
Wine Magazine article (page 20) that describes a French-owned gravity-
fed winery, Domaine Drouhin, which ``clings to the heights of the
Dundee Hills.'' The revised petition's remaining name evidence contains
similar references to Dundee Hills.
Boundary Evidence
According to the petition, the proposed Dundee Hills viticultural
area's boundaries are based on a combination of geographical features,
including elevation, terrain, climate, and soil, as well as the modern
viticultural history of the area.
The proposed area consists of a single, continuous uplifted
landmass that rises above the surrounding valley floors. The petition
states that the level lands along the Willamette River and its
tributary, the Yamhill River, define the Dundee Hills to the east and
south. Millican Creek, a southward flowing tributary of the Yamhill
River, and a smaller drainage flowing north into Chehalem Creek, which
empties into the Willamette River, border the hills to the west. The
petition notes that the Chehalem Valley defines the hills' northern
limits.
The area's proposed boundary line is an irregular circle
encompassing the Dundee Hills. The 200-foot contour line constitutes
most of the proposed area's boundary line, which, the petition states,
divides the base of the hills' slopes from the surrounding valley
floors. On much of its western side, a roadway that varies between 200
and 300 feet in elevation is used in lieu of the 200-foot elevation
line, which, the petition notes, meanders far from the logical
perimeter of the proposed viticultural area.
Wine grapes planted in 1969 at Erath Vineyards produced 216 cases
of Pinot noir in 1972, and, in 1971, five acres of Pinot noir grapes
were planted at the Sokol Blosser vineyard, according to the petition.
Statistics from the petition show the viticultural growth of the
proposed Dundee Hills area:
Viticulture Growth in Dundee Hills Area
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Decade Decade Decade
ending 1980 ending 1990 ending 2000 As of 2002
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Acreage................................................. 299 577 1,161 1,264
Vineyards............................................... 13 22 38 44
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Growing Conditions
A combination of elevation, terrain, climate, and soil factors that
contrast with the surrounding valley floors define the proposed
viticultural area, according to the petition. As noted earlier, the
200-foot contour line defines most of the boundary between the proposed
Dundee Hills viticultural area and the surrounding, flatter valley
floors. The petition proposes to use a roadway to mark much of the
area's western boundary.
Elevation and Terrain
The proposed area's elevation rises from the 200-foot contour line
to the highest hill's peak of 1,067 feet. These heights contrast with
the Chehalem and Willamette Valleys, which flank the north, east, and
south sides of the proposed area. The petition states that the western
boundary line, along Abbey and Kuehne Roads, is marked by a natural
depression with drainage south to the Yamhill River via Millican Creek,
while a smaller, unnamed drainage flows north into the Chehalem Valley.
The proposed Dundee Hills viticultural area's topography consists
of a north-south spine with ridges and small valleys on the east, south
and west sides. This hilly area is above the Willamette and Chehalem
Valleys' flood plains. Numerous small streams originate in the hills'
higher elevations, according to the petitioner, and the proposed area
is dotted with small reservoirs. Light-duty and unimproved dirt roads
service the proposed area.
The petition cites the 5th edition of the ``Geology of Oregon'' by
Elizabeth
[[Page 48841]]
and William Orr to explain that the geological history of the Dundee
Hills area dates back 66 million years with the uplifting of the North
American tectonic plate, which formed the Coast Range of mountains and
the inland ridges and valleys. Lava flows, dating back 15 million
years, pushed into the area from northeast Oregon, depositing Columbia
River basalts and restructuring the landscape with hills and broken
ridges, according to the petition.
To the west, the Coast Range, a huge uplifted landmass paralleling
the Pacific Ocean coastline, provides a rain shadow for the Dundee
Hills proposed viticultural area, according to the petition. The
Yamhill-Carlton area is between the petitioned area and the Coast
Range, to the immediate northwest and west of the Dundee Hills area.
The petition notes that the Yamhill-Carlton area has small uplifted
slopes that drain entirely into the Yamhill River system, while only
the west side of the Dundee Hills area drains into this watershed.
To the north, the petition states that the Chehalem Mountains, with
an east to west orientation, have a large footprint covering more land
surface area than the proposed viticultural area. Taller than the
Dundee Hills, these mountains provide some protection to the petitioned
area from climatic extremes created by the Columbia River Gorge to the
north.
The petition also explains that to the east and immediate south of
the proposed area, the lower-elevation Willamette Valley floor has
different growing conditions and is subject to standing water in the
winter and spring.
The petitioner adds that the Eola Hills, 20 miles south of the
proposed Dundee Hills viticultural area, have a north-south
orientation, a large footprint, and a strong marine climate. The Van
Duzer Corridor, a mountain gap in the Coast Range, pushes the cooling
marine summer breezes inland toward the Eola Hills area and Salem,
Oregon.
Climate
The petition also examines the differences in climate between the
proposed Dundee Hills viticultural area and the surrounding regions.
The petition states that the Dundee Hills is a foothill area protected
from great climatic variations, with warmer nights and less frost than
the adjacent valley floors. The mountain ranges to the west and north
lessen the climatic effect of the strong Pacific Ocean winds and
storms. These mountain ranges also lessen the influence of the Columbia
River Gorge effect.
In examining these climatic differences, the petition notes, for
example, that the proposed Dundee Hills viticultural area lies in the
rain shadow of the Coast Range. The proposed viticultural area receives
30 to 45 inches of rain annually, while the Coast Range annually
receives 90 to 135 inches, about three times as much rain as the
proposed area. The Coast Range is also cooler in the summer and warmer
in the winter, the petition comments, based on its proximity to the
Pacific Ocean's marine influence. It also states that this mountain
range buffers the proposed area from the Pacific Ocean's heavy rainfall
pattern, windy storms, and temperature-moderating marine influence.
The Yamhill-Carlton area is located between the Coast Range and the
Dundee Hills proposed viticultural area. This district averages 60
inches of annual precipitation, has 150 fewer degree-growing days, and
receives a stronger marine influence, with more wind and rainfall, than
the proposed Dundee Hills viticultural area, according to the
petitioner.
The petition also explains that the Columbia River Gorge funnels
cold air in the winter, and warm air in the summer, into the Willamette
Valley area from the interior of northern Oregon. With the Chehalem
Mountains standing between the Columbia River Gorge and the proposed
Dundee Hills viticultural area, the petition notes that these large
mountains protect the petitioned area from the climatic influences of
the Columbia River Gorge weather effect.
In addition, the petitioner states that the Willamette Valley
floor, to the east and south of the Dundee Hills area, has seasonal fog
and frost. Cool night air drains from the higher elevation hillsides
onto the valley floor, creating fall and spring fog and frost.
The petition also explains that the Eola Hills, 20 miles to the
south, receive a strong cooling marine influence that pushes inland
from the Pacific Ocean through the Van Duzer Corridor, an opening in
the Coast Range. This marine effect loses most of its cooling benefit
before reaching north to the proposed Dundee Hills area, according to
the petition.
Soils
The petition relies on the ``Soil Survey of the Yamhill Area,
Oregon,'' issued by the U.S. Department of Agriculture's Soil
Conservation Service in January 1974 for its evidence regarding the
proposed viticultural area's soils. The petition states that the
reddish color in the proposed area's soil is derived from the Columbia
River basalt lavas, including the Jory soil series that covers
approximately 80 percent of the proposed area. These lava-based soils
decompose quickly with the high rain levels of the northwest Oregon
area and produce the Jory series reddish silt, clay, and loam soils.
This soil series, found predominantly on the Dundee Hills's eastern
side, is moderately fertile and well-drained, with slight to moderate
erosion levels, according to the petition.
The petition adds that the west side of the proposed viticultural
area, with its steeper slopes, is primarily covered by the sedimentary-
derived Willakenzie soil series. This series is categorized as well
drained with moderate to high erosion levels. A smaller amount of the
Jory series exists on the area's western side where the Columbia River
lava flows cover the sedimentary formations, the petition notes.
The petition states that, outside the petitioned area's boundaries,
the soils of the Coast Range, the Yamhill-Carlton area, the Chehalem
Mountains, the Willamette Valley floor, and the Eola Hills contrast
with the soils found within the proposed Dundee Hills viticultural
area. The petition explains that the Coast Range to the west has marine
volcanic and sediment soils, with high water holding capacity silts and
basalt layers sandwiched between marine sediments. The Yamhill-Carlton
area, to the west and northwest, has soils derived from marine
sediments and ocean floor volcanic basalt with high water holding
capacity. The Chehalem Mountains, to the north and northeast, have the
Columbia River basalt, ocean sedimentation, and wind-blown loess
derivation soil types. The Willamette Valley floor, to the east and
south, has deep, alluvial soils with high water holding capacity. The
Eola Hills area, to the south, has predominantly Gelderman and Ritner
basalt soil series that are characterized by their low water holding
capacity, slow permeability, and moderate erosion level.
Boundary Description
The proposed Dundee Hills viticultural area covers 6,490 acres, of
which 1,264 acres are planted to wine grapes. It is located entirely
within the established Willamette Valley viticultural area and Yamhill
County, Oregon. The area is west of the town of Newberg, approximately
28 miles southwest of Portland and 40 miles east and inland from the
Pacific Ocean coastline. Portions of the townships of Dundee and
Lafayette are included within the proposed area where the 200-
[[Page 48842]]
foot contour line crosses their boundaries of incorporation.
Oregon State Route 99W, a heavy-duty road to the east and south,
and State Route 240, a medium-duty road to the north, are generally
outside the proposed boundary line, but occasionally cross into the
proposed Dundee Hills viticultural area. See the narrative boundary
description in the proposed regulation below.
Maps
The USGS maps required for determining the boundary of the proposed
Dundee Hills viticultural area are: (1) Dundee Quadrangle, Oregon, 7.5
Minute Series, 1956, revised 1993; (2) Newberg Quadrangle, Oregon, 7.5
Minute Series, 1961, photorevised 1985; and (3) Dayton Quadrangle,
Oregon, 7.5 Minute Series, 1957, revised 1992. The petitioner submitted
the required maps, and we list them in the proposed regulation below.
Public Participation
Comments Sought
We request comments from anyone interested. Please support your
comments with specific information about the proposed area's name,
growing conditions, or boundaries. All comments must include your name
and mailing address, reference this notice number, and be legible and
written in language acceptable for public disclosure.
Although we do not acknowledge receipt, we will consider your
comments if we receive them on or before the closing date. We will
consider comments received after the closing date if we can. We regard
all comments as originals.
Confidentiality
We do not recognize any submitted material as confidential. All
comments are part of the public record and subject to disclosure. Do
not enclose in your comments any material you consider confidential or
inappropriate for disclosure.
Submitting Comments
You may submit comments in any of four ways:
[sbull] By mail: You may send written comments to TTB at the
address listed in the ADDRESSES section.
[sbull] By facsimile: You may submit comments by facsimile
transmission to 202-927-8525. Faxed comments must--
(1) Be on 8.5- by 11-inch paper;
(2) Contain a legible, written signature; and
(3) Be five or less pages long. This limitation assures electronic
access to our equipment. We will not accept faxed comments that exceed
five pages.
[sbull] By e-mail: You may e-mail comments to nprm@ttb.gov.
Comments transmitted by electronic-mail must--
(1) Contain your e-mail address;
(2) Reference this notice number on the subject line; and
(3) Be legible when printed on 8.5- by 11-inch paper.
[sbull] By online form: We provide a comment form with the online
copy of this notice on our Web site at http://www.ttb.gov/alcohol/rules/.
Select ``Send comments via e-mail'' under this notice number.
You may also write to the Administrator before the comment closing
date to ask for a public hearing. The Administrator reserves the right
to determine, in light of all circumstances, whether a public hearing
will be held.
Disclosure
You may view copies of the petition, the proposed regulation, the
appropriate maps, and any comments received by appointment at the ATF
Reference Library, 650 Massachusetts Avenue, NW., Washington, DC 20226.
You may also obtain copies at 20 cents per 8.5-x 11-inch page. Contact
the ATF Librarian at the above address or telephone 202-927-7890 to
schedule an appointment or to request copies of comments.
For your convenience, we will post this notice and the comments
received on the TTB Web site. All posted comments will show the names
of commenters but not street addresses, telephone numbers, or e-mail
addresses. We may also omit voluminous attachments or material that we
consider unsuitable for posting. In all cases, the full comment will be
available in the TTB Reference Library. To access the online copy of
this notice, visit http://www.ttb.gov/alcohol/rules/ and select the
``View Comments'' link under this notice number to view the posted
comments.
Regulatory Analyses and Notices
Paperwork Reduction Act
We propose no requirement to collect information. Therefore, the
provisions of the Paperwork Reduction Act of 1995, 44 U.S.C. 3507, and
its implementing regulations, 5 CFR part 1320, do not apply.
Regulatory Flexibility Act
We certify that this proposed regulation, if adopted, will not have
a significant economic impact on a substantial number of small
entities. This proposed regulation imposes no new reporting,
recordkeeping, or other administrative requirement. Any benefit derived
from the use of a viticultural area name would be the result of a
proprietor's efforts and consumer acceptance of wines from that area.
Therefore, no regulatory flexibility analysis is required.
Executive Order 12866
This proposed rule is not a significant regulatory action as
defined by Executive Order 12866, 58 FR 51735. Therefore, it requires
no regulatory assessment.
Drafting Information
The principal author of this document is N.A. Sutton (Oregon),
Regulations and Procedures Division, Alcohol and Tobacco Tax and Trade
Bureau.
List of Subjects in 27 CFR Part 9
Wine.
Authority and Issuance
For the reasons discussed in the preamble, we propose to amend
Title 27, Code of Federal Regulations, Part 9, American Viticultural
Areas, as follows:
PART 9--AMERICAN VITICULTURAL AREAS
1. The authority citation for part 9 continues to read as follows:
Authority: 27 U.S.C. 205.
2. Subpart C is amended by adding Sec. 9.-------- to read as
follows:
Subpart C--Approved American Viticultural Areas
Sec. 9.-------- Dundee Hills.
(a) The name of the viticultural area described in this section is
``Dundee Hills''.
(b) Approved maps. The appropriate maps for determining the
boundaries of the Dundee Hills viticultural area are three 1:24,000
Scale U.S.G.S. topography maps. They are titled:
(1) Dundee Quadrangle, Oregon, 1956, revised 1993;
(2) Newberg Quadrangle, Oregon, 1961, photorevised 1985;
(3) Dayton Quadrangle, Oregon, 1957, revised 1992.
(c) Boundaries. The Dundee Hills viticultural area is located
entirely within the Willamette Valley viticultural area and Yamhill
County, Oregon, near the town of Newberg.
(1) Beginning on the Dundee Quadrangle map at the intersection of
the 200-foot contour line with Kuehne Road at the common boundary line
of Section 47 and 48, T3S, R3W, proceed east, followed by south, along
the
[[Page 48843]]
meandering 200-foot contour line, crossing over to and back off the
Newberg Quadrangle map, and then cutting diagonally southwest through
Dundee township to Hess Creek, Section 34, T3S, R3W (Dundee
Quadrangle); then
(2) Proceed south, followed by west and then northeast, along the
meandering 200-foot contour line, twice crossing over to and back off
the Dayton Quadrangle map, to its intersection with Abbey Road after
the 200-foot contour line passes a quarry and crosses the two forks of
Millican Creek in Section 52, T3S, R3W (Dundee Quadrangle); then
(3) Proceed generally north on Abbey Road to Kuehne Road and follow
Kuehne Road northeast, returning to the point of beginning.
Signed: August 5, 2003.
Arthur J. Libertucci,
Administrator.
[FR Doc. 03-20914 Filed 8-14-03; 8:45 am]
BILLING CODE 4810-31-P