{"operation":"document","citation":"03-0190","title":"Graef E&S Consulting Services — Hazardous Materials Safety Interpretation","source_type":"guidance","agency":"Pipeline and Hazardous Materials Safety Administration","status":"guidance","official":true,"published_on":"2003-08-08","effective_on":null,"summary":"03-0190 response to Graef E&S Consulting Services concerning 172.800.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-interpretation-03-0190.json","markdown":"https://regulus.evalyn.ai/document/phmsa-interpretation-03-0190.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-interpretation-03-0190","source_url":"https://www.phmsa.dot.gov/sites/phmsa.dot.gov/files/legacy/interpretations/Interpretation%20Files/2003/030190.pdf","body":"<<<PAGE 1>>>\n\nof Transportation\nU.S. Department\n400 Seventh St., S.W.\nSpecial Programs\nResearch and\nAUG\n8 2003\nWashington, D.C. 20590\nAdministration\nMr. Warren D. Graef, BAAS, CHMM\nReference No.: 03-0190\nGraef E&S Consulting Services\n12323 Meadow Gate\nStafford, Texas 77477\nDear Mr. Graef:\nThis responds to your letter concerning the applicability of new security requirements adopted in\na final rule issued under Docket HM-232. Your letter states that your client produces crude oil\nand moves it via flow lines to a storage tank where it is accumulated. The accumulated crude oil\nis offered for sale to an oil refiner or other oil company. The buyer accepts, transfers and\narranges for the oil to be transported to its own storage facilities. Specifically, you ask if your\nclient is subject to the security requirements.\nAssuming the crude oil meets the definition of a hazardous material under the Hazardous\nMaterials Regulations (HMR; 49 CFR Parts 171-180), the answer is yes. The HMR, in the\nnewly adopted § 172.800(b), require persons who offer for transportation or persons who\ntransport hazardous materials in quantities that require placarding in accordance with subpart F,\nPart 172, of the HMR to develop and implement security plans. From your letter, it appears that\nthe crude oil is being transferred to and transported in a cargo tank motor vehicle. Section\n172.504 requires placarding of all bulk packagings, i.e., a packaging which has a maximum\ncapacity greater than 450 L (119 gallons). Therefore, as an offeror, your client is subject to the\nsecurity requirements. Also see Fact Pattern #3 on page 6762 of the enclosed formal\ninterpretation.\nAs we suggested in the preamble to the HM-232 final rule, we expect offerors to work with\ncarriers to address en route security risks for the materials covered by the security plan. The\nregulation provides the flexibility necessary to enable offerors and carriers to determine the best\nmethods for addressing en route security issues. An offeror and carrier may have a joint plan or\nthey may have two separate security plans. An offeror should satisfy itself that the carrier that\nissessed security risks of the material to be transported, including risks related to the storage of\nvill be transporting its material has a security plan in place that adequately addresses the\nI hope this satisfies your inquiry.\nHothe z mitchel\nHattie L. Mitchell\nChief, Regulatory Review and Reinvention\nOffice of Hazardous Materials Standards\nEnclosure\n172.800\n030190\n\n<<<PAGE 2>>>\n\nGRAEF E&S CONSULTING SERVICES\n12323 Meadow Gate\nCorbin\nStafford, Texas 77477\nTelephone (281) 240-7171\n$172.800\nJuly 17, 2003'\nSecurity Plans\n03 - 0190\nMr. Edward Mazzulio\nDirector for the Office of Hazardous Materials Security\nUS DOT/RSPA (PHM-10)\n400 zi St. SW\nWashington D.C. 20590\nRe: HM-232 requirements for Security Plan\nDear Mr. Mazzullo:\nI am an environmental and safety consultant with several Oil and Gas Production clients in\nTexas. We are aware of the new requirements stated in HIM 232 but are having difficulty\ndetermining applicability to my client's operations. The client produces CRUDE OIL from\ngeological formations below the surface of the earth and moves it into a storage tank via flow\nlines to a tank battery. When in the tank, it is accumulated until about 200 barrels or less have\nbeen accumulated where it is offered for sale to an oil refiner or other oil company. Custody of\nthe oil physically transfers from my clients to the oil company at the tank. The amount of\ntransfer is measured by a meter in the transfer line. The oil company buying the oil accepts\ntransfer and arranges for transportation of the crude oil to its own storage facilities. My clients\nare not involved in the transfer operation and in many cases are not even on site when the\nmaterial is transferred. We do not know if the truck hauling the material is placarded or not\nsince transportation is not our responsibility but rather the responsibility of the custody company.\nWith this in mind, are the requirements for a security plan applicable to my clients since they are\nneither in the transportation business nor packaging for shipment any hazardous materials? We\nwould like a ruling and an official interpretation of the rule as it applies to Oil and Gas\nThank you for your assistance.\nSincerely,\nConsultant\nWarren D. Graef, BAAS, CHAM","truncated":false,"body_characters":4365}