miles of coastline and almost 7 degrees of latitude and covered 22,000 square miles. It encompassed shoreline, coastal plains, 5,000-foot high mountain ranges, and interior basins and valleys.

ATF determined that the petitioned California Coast viticultural area failed to meet regulatory requirements for the establishment of such areas for two primary reasons. First, commonly understood, the name "California Coast" applies to a longer coastal region than was included in the petitioned area. The petitioned California Coast boundaries did not reflect the public's understanding of the "California Coast" name or meet the definition standards for viticultural areas or wine labeling purposes. ATF believes the term "California Coast" refers to the State of California's entire coastal area, which extends from Mexico to the Oregon Border. Second, significant climatic diversity exists within the petitioned area due to its great north-south span and the differing ocean currents found offshore, a cold current flowing south from Alaska and a warm current flowing from Mexico.

Finally, evaluation of the California Coast petition led inevitably to ATF's conclusion that climate diversity could only increase in any proposed viticultural area that included the entire California coastline from Mexico to Oregon. Such a redefined area would necessarily fail to meet the regulatory requirements for a viticultural area.

Winery Owner Convicted for Mail Fraud

By Harriett Bobo (415)947-5110

On August 8, 2002, after a one-week jury trial, David Chatfield Sproul, owner of Chatfield Winery of Lodi, California, was convicted of two counts of 18 U.S.C. 1341 (Mail Fraud) in United States District Court, Eastern Judicial District of California.

The conviction stems from the Bureau of Alcohol and Firearm's (ATF) investigation into reimbursements fraud involving wine excise taxes. At trial, the government demonstrated that Sproul fraudulently induced a receiver for one of Chatfield Winery's clients to reimburse him for his payment of Federal excise tax on wine under the receiver's control at a higher rate than what he actually paid. The evidence showed that Sproul told the receiver that the tax rate on the wine was $1.07 per gallon and billed her at that rate in spite of the fact that, by virtue of the small producer's tax credit, he actually paid only $.17 per gallon. ATF Special agent in Charge John A. Torres said, "In ATF's ongoing efforts to protect the integrity of the wine industry, we will continue to vigorously pursue all criminal and regulatory violations of law and regulations.

Sentencing for Mr. Sproul is scheduled for October 21, 2002, at 9:00 AM in United States District Court, Eastern District of California.