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59 Founded in 1972, Rutherford Hill Winery pioneered the development of California merlot. The grape growers who began this winery carefully studied the geography of the region and capitalized on climate and soil conditions that resembled those of Pomerol, the small but distinctive merlot-growing region of Bordeaux. And what a promising discovery that was. The land has borne plenty of fruit, namely the lush, purple-black grapes that have contributed so much to Rutherford Hill's success. By the early 1980s Rutherford Hill was making a considerable amount of wine. With the creation of the tunnel at Far Niente and new caves up at Schramsberg and Carmenet recently completed, the buzz about caves was in the air. While the S. Anderson cave was in progress, Alf Burtleson was contacted by Bill Jaeger, managing partner of Rutherford Hill, and asked to design and create a cave to house the 6,500 barrels that were being warehoused in the valley. The owners wanted to use a pallet-stacking system going four barrels high. This required the design of tall tunnels with space for maneuverability of forklifts. It would be the most massive project at the time. The material through which the Rutherford Hill caves run was a mixture of strata from four distinctive geologic zones. The first phase of cave construction ran from 1984 to 1985 and included two portals and six caves. It wasn't easy. Dale Wondergem recalls, "Not long into the project we hit fractured rock and lots of water and had to change directions. Then we ran into real soft material. When you are doing tunnels you have adequate means to support the face where you are working—if you are working a 13-foot-wide tunnel, you've got a bare area 13 feet wide by 13 and a half or 14 feet tall, or however tall it is. So you have a huge face that just stands there, and if you are in really soft material, that face wants to blow out, it wants to slough off, and usually when the face falls it takes part of the top with it. On our first four jobs the ground had been decent, and we had only cut a diameter that the machine could reach. Rutherford Hill was a big learning curve for all of us because the caves were so tall and we had to do them in stages. We had to do the top section, and then come back and mine out of the bottom in very difficult material. I wasn't using a laser in those days— just going by line-of-sight with my plumb-lines and measuring." As the winery began using the finished caves, the two cellar workers, normally busy every week topping those 6,500 barrels, found they had very little to do. The wine wasn't evaporating in the cool, humid caves. The savings of approximately a case of premium wine per barrel for topping each year, plus rent fees and labor, allowed the winery to pay off the total cost of construction in two years. In a valley where information was shared readily, the economic advantages of caves were starting to make sense. The second phase, from 1990 to 1991, included a series of short connecting tunnels, a back cave and a dining grotto for special events. The capacity of the cave was increased to house 8,000 French and American oak barrels. The entire system extends for nearly one mile and maintains an ideal, consistent storage environment of 59 degrees with up to 90-percent humidity. When the Terlato family of the Terlato Wine Group, Lake Bluff, Illinois, purchased the winery in 1996, they immediately began to apply their guiding principle: Quality is a way of life. The pursuit of excellence began with a comprehensive review of all aspects of the facility that resulted in significant enhancements. Aesthetic improvements to the caves were begun in February 2000, including a fresh layer of shotcrete on the interior cave walls and an additional lighting system with sconces and chandeliers. The continuous attention to detail displayed in the construction and ongoing enrichments to the cave system exemplifies the commitment to quality of the Terlato family and underscores their dedication to excellence in all fields. 1984 Rutherford Hill Winery Cave Size: 40,000 square feet Cave Designer: Alf Burtleson Cave Contractor: Alf Burtleson Construction Wine Specialties: Merlot, Chardonnay, Cabernet Sauvignon, Rosé, Merlot Reserve

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