Gislason & Hunter LLP — Hazardous Materials Safety Interpretation

Page 1U.S. Department of Transportation Washington, D.C. 20590 400 Seventh St., S.W. Special Programs Research and Administration JUL 24 2002 Mr. Gary W. Koch Gislason & Hunter LLP Ref No. 02-0157 P.O. Box 458 New Ulm, MN 56073-0458 Dear Mr. Koch: This responds to your letter dated June 3, 2002, regarding marking and labeling requirements and exceptions for certain explosives under the Hazardous Materials Regulations (HMR; 49 CFR Parts 171-180). Specifically, you request confirmation that your client may reclassify imported packages of shot gun cartridges from Division 1.4S to ORM-D. In addition, you inquire whether these packages may contain multiple (international and domestic U.S.) markings and :labels. For international transport, each UN0012" and labeled "1.4S", and for domestic U.S. package of cartridges would be marked "Cartridges, small arms, would be marked "Cartridges, small arms, ORM-D." transport, As prescribed in § 173.63 (b), small arms cartridges which have been classed as a Division 1.4S explosive may be reclassed, offered for transportation, ana transported as ORM-D material when packaged in accordance with § 173.63 (b) (2). In addition, the HMR do not prohibit multiple markings and labels on packages when required by authorized regulatory agencies. To maintain the effectiveness of these markings and labels, we suggest that their placement on the package be clearly distinguishable from each other. I trust this satisfies your inquiry. be of further Please contact us if we can assistance. Sincerely, Hothe a mitchel Hattie I. Mitchell Chief, Regulatory Review and Reinvention Office of Hazardous Materials Standards#

Page 2- GISLASON&HUNTER LIP ATTORNEYS AT LAW OF COUNSEL NEW ULM MINNEAPOLIS MANKATO MAPLETON DEs MOINES Sidney P, O: 1985) RoberM 145-1993) Daniel A. Gislasor June 14, 2002 Thomas Wilso larlin R. Kunar Barry G. Vermeer* lavid D. Also Timothy P. Tobin 2*+ Gary W. Koch1, VIA FACSIMILE AND MAIL Roger H R. Stephen Tillitt"* David W. Sturgest Mr. Edward Mazzulo - MarkS. Ullery Director Office of Hazardous Materials Standard Jeff C. Braegelmann Wade R. Wacholz Reed H. Glawe! DHM-10 Research Special Programs Administration Laura L. Myslis' Noel L. Phiter Federal Motor Carrier Safety Administration ndrew A. Willae 400 7ih Street SW, Room 8422 Washington, D.C. 20590 Dustan J. Cross Loree A. Nelson6 Re: Orion Cartridge Company Charin K. For. Sanduist Our File No. 13530-002 Matthew H. Morgar eter D. Favorte Jon Breyer Dear Mr. Mazulo: Aaron J. Glade7 Sara N. Wilson Alex W. Russell$ Christopher P. Rosengren I attach another copy of my June 3, 2002 letter addressed to you. Kathleen M. Loucks Gregory L. Sattizahn After we spoke, I sent you an additional copy. I am in need of a written response as soon as possible. The absence of a response is preventing Tatthew P. Kostolni shipment of product. Could you please advise as soon as possible. ngela B. Forsyth‹ NEW ULM OFFICE Thank you for your attention. 2700 Sinh, B 073 Very truly yours, P.O. Box 458 MAILING ADDRESS New Uim, MN 56073-0458 FAX: PHONE: 507-354-3111 507-354-8447 Gary W. Koch WEBSITE: www.gislason.com GWK:jah Enclosure 1 Iowa Also admitted in: " Illinois 2 Wisconsin CC: Mike Stevens (via fax w/enc.) 5 South Dakora * Admitted only in Virginia Joe Cantey (via fax w/enc.) Nebraska 6 Admitted only in lowa NULIB:102924.1 - Carpay it Species State Bar Association certified by the Minnesota + Qualified ADR Neutral # Certified Public Accountant#

Page 3GISLASON&HUNTER LLP ATTORNEYS A T L A W OF COUNSEL NEW MINALS MANKAtO MAPLETON DES MOINES Donald F. Hunter3t C. Allen Doslandt James h. Maleck Ruth Ann Webste Daniel A. Gislasont June 3, 2002 Marlin R. Kunard C. Thomas Wilson David D. Alsop Gary W. Koch1,2 Barry G. Vermeerl*t Timothy P. Tobin?*+ Kurt D. Johnson# VIA FACSIMILE AND MAIL Mr. Edward Mazzulo DHM-I0 Director Office of Hazardous Materials Standard Reed H. Glawe! Noel L. Phifer Wade R. Wacholz Research Special Programs Administration Laura L. Myslist Federal Motor Carrier Safety Administration Andrew A. Willaert Steven J. Vatnda|2** Daniel A. Beckman 400 7" Street SW, Room 8422 Washington, D.C. 20590 Michael S. Dove Dustan J. Cross! Loree A. Nelson Re: Orion Cartridge Company Kaarin K. Foede Christopher E. Sandquist Our File No. 13530-002 Matthew H Morgan Peter D. Favorite Jon Breyer Dear Mr. Mazulo: Sara N. Wilson Aaron J. Glade? Alex W. Russellf Caristopher P. Rosengren This letter will follow my recent telephone conversations with Mr. James Kathleen M. Loucks Gregory L, Sattizahn' Simmons, who is with the Federal Motor Carrer Safety Administration offices in Columbia, South Carolina. The subject of our Angela B. Forsythet Matthew P. Kostolnik discussion was the above named company, which our office represents. We are seeking a letter from you, after talking to Mr. Simmons and NEW ULM OFFICE his associates, that will confirm our client's ability to import shot gun cartridges and thereafter have them shipped domestically with package - MAILING ADDRESS * markings-as described below..We have had some confusion, on our end, New Um, MN 56073-0458 P.O. Box 458 with respect to the proper markings on the boxes. I believe the matter has been resolved to the satisfaction of Mr. Simmons, but we would ask that you FAX: PHONE: 507-3543111 507-354-8447 send us the letter of confirmation so that our shippers may have the comfort of knowing that we have made the necessary due diligence. WEBSTE: www.gisl202.com You are advised: 2 Wisconsin * Iliaois Adriarad only ia Virginia 1. The items that are imported and distributed by our client, 6 Admirad oaly in lones § South Dakoz consists of shot gun cartridges. "Nebraska Cal Properle Specialt 2. Pursuant to 49 C.F.R. § 172.301, the boxes are marked with Stace Ber Association rified by the Minnesc the proper shipping name ("cartridges, small arms") and the identification i Qualified ADR Neur ; Certified Public Accountar#

Page 4• GISLASON & HUNTER LLP Page 2 June 3, 2002 number ("UN0012"). In addition, the Orion Cartridge Company boxes also include the designation 1.4S, which indicates the hazard class or division pursuant to the section 172.101 hazardous materials table. 3. Pursuant to § 173.63, we believe it is appropriate that small arms cartridges - classified as division 1.45 explosives may be re-classified and offered for transportation domestically as "ORM-D material". Orion "Cartridge Company has labeled its boxes ..- accordingly, again using the proper shipping name and the identification number under the table found at section 172.101. 4. Prior to this time, the boxes also contained a designation of "Consumer Commodity." This item has been covered up on old boxes and will be removed on new manufacture. 5. We do not believe that the regulations prohibit the marking of the packaging with both sets of markings as described above. We ask that your office issue a letter confirming the accuracy of our understanding of the regulations. Such a letter is necessary for the comfort of our domestic shippers. We would ask that if possible, you expedite your response so that we can provide the document to those shippers and begin moving Orion Cartridge Company's product. Please call with any questions. Thank you for your attention. .._. Gary W. Koch GWK:jah CC: Joe Cantey P.S. For your convenience, I also attach a copy of the our May 24, 2002, letter which was sent to Ms. Angela Hagen in Columbia, SC and which she circulated to Mr. Simmons. NULIB:101466.1#

Page 5GISLASON&HUNTER LLP ATTORNEYS AT LA W OF COUNSEL NEW ULM MINNEAPOLIS MANKATO MAPLETON DES MOINES Sidney F.08-1985) Robert M. Halvorsor (1945-1993 Daniel A. Gislasont May 24, 2002 Marlin R. Kunard C. Thomas Wilson David D. Alsop Barry G. Vermeer *t Timocky P. Tobin?* Gary W. Koch!? Kurt D. Johnson*t Roger H. Gross* VIA FACSIMILE AND U.S. MAIL R. Stephen Tilltt*1 David W. Sturges t Jett C. Braegelmann Mark S. Ullery _Ms. Angela Hagen Federal Program Specialist - ---- - • Reed H. Glawe! NoelL. Phifer Wade R. Wacholz Federal Motor Carrier Safety Administration Laura L. Myslis! 1835 Assembly Street Daniel A. Beckman Andrew A. Willaert Suite 1253 Michael S. Dove Steven J. Vatndal2** Columbia, SC 29201 Loree A. Nelson Dustan T. Cross! Re: Orion Cartridge Company Kaarin K. Foede Christopher E. Sandquist Our File No. 13530-002 Matthew H. Morgan Peter D. Favorite Jon Breyer Dear Ms. Hagen: Aaron J. Glade? Sara N. Wilson Christopher P. Rosengren This will confirm our recent telephone conversations regarding Alex W. Russell# markings on boxes that my client is using to ship shotgun cartridges. Cation M Louiss Matthew P. Kostolnik As I informed you, an issue has arisen about whether the cartridge Angela B. Forsythet Because my client imports the shells from Spain, it wishes to mark the boxes boxes can be "marked" in two ways pursuant to the applicable regulations. Suite 215E MINNEAPOLIS OFFICE under two applicable regulations that do not appear to us to be in conflict. -Minnetonka, MN 55343-9666 9900 Bren Road East Those regulations are as follows: .- MAILING ADDRESS 1. Under 49 C.F.R. § 172.301. This section requires that the Hopkins, MN 55343-2297 PO Box 5297 boxes be marked with the proper shipping name (in this case "cartridges, PHONE: 952-933-9900 small arms") and the identification number (in this case "UN0012"). It is my FAX: 952-933-0242 understanding that the Orion Cartridge Company boxes are labeled in this WEBSITE: www.gislason.com fashion and include the designation 1.4S which indicates the hazard class or division pursuant to the section 172.101 hazardous materials table. Also acciated in: 1 Wiscoasin 1 loma 2. Under § 173.63, it also appears appropriate that small arms cartridges classed as division 1.4S explosives may be re-classed and offered for transportation as "ORM-D material." Orion Cartridge Company has labeled its boxes accordingly, again using the proper shipping name and the Col Property Law Spoi identification number under the table found at section 172.101. ified by the Minnes#

Page 6! : GISLASON & HUNTER LLP Page 2 May 24, 2002 As we discussed in our telephone conversation, I could find nothing in the regulations which prohibits a package from carrying markings under both sections 173.63 and 172.301, provided of course that the markings are proper for the material being packaged. It appears in this case that marking the packages under both sections of the regulations is appropriate in that they are small arms cartridges and qualify for the described markings under both séctions of the regulations. Based on our conversations, I understand that you could not find anything in the regulations that prohibited using both sets of markings. I understand you also discussed the matter with Lt. James Hooten of the hazardous materials section of the state transportation police. I would appreciate it if your office could confirm to Orion Cartridge Company, in writing, that the markings we have discussed would be appropriate under the regulatory scheme. Mr. James Simmons of your office has previously discussed this matter with Mr. Joe Cantey of the Orion Cartridge Company and has raised some question about the appropriateness of marking the boxes in both fashions. This has inhibited our ability to ship product. As a side note, our research indicates that other cartridge companies mark their boxes with both types of markings and that those boxes regularly move in commerce and are deemed to be in compliance with the regulatory scheme. written clarification or approval of our proposed marking. This issue is of some urgency so we would request your prompt reply to our request for Yours truly. --.. Wade R. Wacholz wHacholz@gislason.com WRW/kcm CC: Mr. Joe Cantey Mr. Gary W. Koch MPLIB:89061.1#

Page 7ser. GISLASON&HUNTER uP ATTORNEYS AT LAW NEW ULM MINNEAPOLIS MANKATO MAPLETON DES MOINES Sidney 8:195) obert M. Halvors 945-199 June 3, 2002 Barry G. Vermeer!" gary W. Koch1, VIA FACSIMILE AND MAIL David W. Sturgestf - Mark S. Ullery. R. Stephen Tilltt*+ Mr. Edward Mazzulo DHM-10™ Director Office of Hazardous Materials Standard jett C. Braegelmanr Wade R. Wacholz Reed H. Glawel Research Special Programs Administration Laura L. Myslis! Federal Motor Carrier Safety Administration 400 7ih Street SW, Room 8422 Washington, D.C. 20590 Justan J. Cross oree A. Nelson Re: Orion Cartridge Company Cario . For Sandquist Our File No. 13530-002 ter D. Favor atthew H. More Dear Mr. Mazulo: Sara N. Wilson Aaron J. Glade? Christopher P. Rosengres This letter will follow my recent telephone conversations with Mr. Gregory L. SattizahnS Alex W. Russell+ James Simmons, who is with the Federal Motor Carrier Safety Kathleen M. Loucks Administration offices in Columbia, South Carolina. The subject of our atthew P. Kostoln 1gela B. Forsvt] discussion was the above named company, which our office represents. NEW ULM OFFICE We are seeking a letter from you, after talking to Mr. Simmons and 2700 SIm, MA S673 his associates, that will confirm our client's ability to import shot gun cartridges and thereafter have them shipped domestically with package MAILING ADDRESS -- markings-as described below. _We have had some confusion, on our end,.. P.O. Box 458 with respect to the proper markings on the boxes. I believe the matter has ---.. New Ulm, MIN 56073-0458 been resolved to the satisfaction of Mr. Simmons, but we would ask that you send us the letter of confirmation so that our shippers may have the comfort WEBSTTE: www.gislason.com of knowing that we have made the necessary due diligence. 1Iowa Also admitted in: You are advised: 3 Illinois 2 Wisconsin § South Dakora *Admitted only in Virginia 1. The items that are imported and distributed by our client, 6 Admitted only in lowa consists of shot gun cartridges. 7 Nebraska *Ral Proper i peatit 2. Pursuant to 49 C.F.R. § 172.301, the boxes are marked with State Bar Association cerified by the Minnesora the proper shipping name ("cartridges, small arms") and the identification * Crite or Account#

Page 8- GISLASON & HUNTER LLP Page 2 June 3, 2002 number ("UN0012"). In addition, the Orion Cartridge Company boxes also include the designation 1.4S, which indicates the hazard class or division pursuant to the section 172.101 hazardous materials table. 3. Pursuant to § 173.63, we believe it is appropriate that small arms cartridges classified as division 1.4S explosives may be re-classified and offered for transportation domestically as "ORM-D material". Orion Cartridge Company has labeled its boxes accordingly, again using the proper shipping name and the identification number under the table found at section 172.101. 4. Prior to this time, the boxes also contained a designation of "Consumer Commodity." This item has been covered up on old boxes and will be removed on new manufacture. both sets of markings as described above. 5. We do not believe that the regulations prohibit the marking of the packaging with understanding of the regulations. Such a littor is necesary for the comfort of our domestic We ask that your office issue a letter confirming the accuracy of our shippers. We would ask that if possible, you expedite your response so that we can provide the document to those shippers and begin moving Orion Cartridge Company's product. Please call with any questions. Thank you for your attention. Very truly yours, - - Gary W. Koch GWK:jah CC: Joe Cantey P.S. For your convenience, I also attach a copy of the our May 24, 2002, letter which was sent to Ms. Angela Hagen in Columbia, SC and which she circulated to Mr. Simmons. NULIB: 101466.1#

Page 9• GISLASON&HUNTER LLP ATTORNEYS L A W OF CONSE NEW UIM MINNEAPOLIS MANKATO MAPLETON DES MOINES : Allen Doslandt May 24, 2002 VIA FACSIMILE AND U.S. MAIL Ms. Angela Hagen. Federal Program Specialist * .- -----. NoelL. Phifer Wade R. Wacholz Federal Motor Carrier Safety Administration Laura L. Myslis! 1835 Assembly Street Andrew A. Willaert Steven J. Vatudal2*» Daniel A. Beckmar Suite 1253 Columbia, SC 29201 Michael S. Dove ustan j. Cros: oree A. Nelsor Re: Orion Cartridge Company Laarın K * ario K. For. Sandiquis Our File No. 13530-002 on Breve Dear Ms. Hagen: aron J. Glade ara N. Wilso This will confirm our recent telephone conversations regarding Alex V. Ruse Rosengren markings on boxes that my client is using to ship shotgun cartridges. Catien M. Louds Matthew P. Kostolnik Angela B. Forsythet As I informed you, an issue has arisen about whether the cartridge boxes can be "marked" in two ways pursuant to the applicable regulations. Suite 215E MINNEAPOLIS OFFICE Because my client imports the shells from Spain, it wishes to mark the boxes under two applicable regulations that do not appear to us to be in conflict. - - 9900 Bren Road East Minnetonka, MN 55343-9666. ---_ PO Box 5297 MAILING ADDRESS 1. Under 49 C.F.R. § 172.301. This section requires that the Hopkins, MN 55343-2297 boxes be marked with the proper shipping name (in this case "cartridges, FAX: 952-933-0242 PHONE: 952-933-9900 small arms") and the identification number (in this case "UN0012"). It is my understanding that the Orion Cartridge Company boxes are labeled in this WEBSITE:www.gislason.com fashion and include the designation 1.4S which indicates the hazard class or division pursuant to the section 172.101 hazardous materials table. 2 Wisconsin 3 Ilinois 2. Under § 173.63, it also appears appropriate that small arms 5 South Dakota * Admitted only in Virginia cartridges classed as division 1.4S explosives may be re-classed and offered for transportation as "ORM-D material." Orion Cartridge Company has labeled its boxes accordingly, again using the proper shipping name and the • Get Properla specialis identification number under the table found at section 172.101. cate Bar Associatio entified by the Minnesor#

Page 10GISLASON & HUNTER LLP Page 2 May 24, 2002 As we discussed in our telephone conversation, I could find nothing in the regulations which prohibits a package from carrying markings under both sections 173.63 and 172.301, provided of course that the markings are proper for the material being packaged. It appears in this case that marking the packages under both sections of the regulations is appropriate in that they are small arms cartridges and qualify for the described markings under both sections of the-- regulations. Based on our conversations, I understand that you could not find anything in the regulations that prohibited using both sets of markings. I understand you also discussed the police. matter with It. James Hooten of the hazardous materials section of the state transportation I would appreciate it if your office could confirm to Orion Cartridge Company, in writing, that the markings we have discussed would be appropriate under the regulatory scheme. Mr. James Simmons of your office has previously discussed this matter with Mr. Joe Cantey of the Orion Cartridge Company and has raised some question about the appropriateness of marking the boxes in both fashions. This has inhibited our ability to ship product. As a side note, our research indicates that other cartridge companies mark their boxes with both types of with the regulatory scheme. markings and that those boxes regularly move in commerce and are deemed to be in compliance written clarification or approval of our proposed marking. This issue is of some urgency so we would request your prompt reply to our request for ----_ -- ... - Yours truly, Wade R. Wacholz wwacholz@gislason.com WRW/kem CC: Mr. Joe Cantey Mr. Gary W. Koch MPLIB:89061.1#

Page 11GISLASON&HUNTER LIP ATTORNEYS AT LAW 2700 SOUTH BROADWAY JUN 0 3'02 NEW ULM, MINNESOTA 56073-0458 P.O. Box 458 70414571 PBMETER MR. EDWARD MAZZULO DIRECTOR OFFICE OF HAZARDOUS MATERIALS STANDARD DHM-10 RESEARCH SPECIAL PROGRAMS ADMINISTRATION FEDERAL MOTOR CARRIER SAFETY ADMINISTRATION 400 7TH STREET SW, ROOM 8422 WASHINGTON, D.C. 20590#

Page 12-GISLASON&HUNTER uP ATTORNEYS AT LAW 2700 SOUTH BROADWAY JUN 14'02 P.O. Box 458 PBMETER NEW ULM, MINNESOTA 56073-0458 7041457 U.s. MR. EDWARD MAZZULO DIRECTOR OFFICE OF HAZARDOUS MATERIALS STANDARD DHM-10 RESEARCH SPECIAL PROGRAMS ADMINISTRATION FEDERAL MOTOR CARRIER SAFETY ADMINISTRATION 400 7TH STREET SW, ROOM 8422 WASHINGTON, D.C. 20590 20530+0001#

Page 13TO_ TELEPHONED PLEASE C CALLED TO SEE YOU RETURNEI DATE _ 6-14 TMe 917 WILL CALL AGAIN URGENT PHONE CALLS MESSAGE _ "WHILE OUT" RECORD ORion Sart L. Garytook KOCH PHONE 5073543111 NUMBER EXTENSION TAKEN BY:#