Total Energy — Hazardous Materials Safety Interpretation

Page 1U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration 1200 New Jersey Avenue, SE Washington, D.C. 20590 Jennifer D. Janelle, Esq. General Counsel Total Energy 2 Hardscrabble Road North Salem, NY 10560 Reference No. 09-01 33 Dear Ms. Janelle: This letter replaces my July 1,2009 response to your April 8, 2009 letter concerning the applicability of the Hazardous Materials Regulations (HMR; 49 CFR Parts 171-180) to the transportation of storage tanks that are 30,000 gallons or more in size and contain liquefied petroleum gas (LPG). Specifically, you ask whether the storage tanks must be placarded. According to your letter, the 30,000 galloll or larger storage tanks art: built to an American Society of Mechanical Engineers (ASME) standard, transported from decommissioned LPG plants to various locations, and purged to 80 to 85 percent of the lower explosive lilllit (LEL). You also state the Gas Pipeline Safety Unjt of the Connecticut Department of Public Utility Control requires the tanks only be purged to SO perceilt LEL, to conform with the recommendations of the American Gas Association, and transported as non-hazardous materials. In accordance with $$ L72.504(a) and 172.5 14 of the HMR, a bulk package, defined as a package with a capacity greater than 119 gallons, containing any quantity of hazardous material, as well as thr: transport vehicle on which it is transported if the placards on the package are obscured, must be placarded on each side and each end. A bulk packaging that is sufficiently cleaned of residue and purged of vapors to remove any potential hazard is considered empty and, thus, is not subject to any requirements under the HMR, including those for placarding. See 55 173.29(b) and 172.514(b). The methods and limits used for determining what qualifies as a "cleaned and purged" under the HMR are intentionally not defined because they vary greatly depending on the properties of the particular hazardous#

Page 2material and type of packaging. In the case of LPG, other variables such as purge medium, temperature conditions and the capacity of the packaging are also factors. We would consider the storage tank to be sufficiently cleaned and purged when the vapors in the tank are no longer capable of sustaining combustion. I hope this satisfies your request and apologize for the confusion caused by the earlier response. Hattie L. Mitchell Chief, Regulatory Review and Reinvention Office of Hazardous Materials Standards#

Page 3April 8,2009 United States Department of Transportation Pipeline and Hazardous Materials Safety Administration East Building, 2nd Floor Mail Stop E24-455 1200 New Jersey Avenue, SE Washington, DC 20590 Re: Interpretation of Transport Requirements for LP Gas Shipments Dear Sirmadam: I am writing to request a written interpretation as to the applicability of the Department of Transportation's regulations concerning the transport of LP Gas containers, specifically ASME tanks sized 30,000 gallons and greater, to the circumstances described herein. Total Energy is in the business of flaring, purging, dismantling, transporting, repairing, modifying and installing ASME pressure vessels, includig vessels located at propane peak-shaving plants across North America. As part of its routine business practices, Total Energy adheres to DOT regulations and safety guidance documents for the transport of its tanks, including 49 CFR 5 172.504(~)(1), which provides in pertinent part that placards are not required on "a transport vehicle or fieight container which contains less than 1,001 pound aggregate gross weight of hazardous materials covered by table 2 of paragraph (e) of this section." In accordance with Compliance Guide No. DOT 28, in determining whether or not placarding is required, the aggregate gross weight of the hazardous mate~ial includes the weight of the container. In compliance with this regulation, Total Energy's standard business practice is to flarelpurge the ASME propane tanks to 0 LEL before transporting, so that there is absolutely no hazardous materials. In such cases, Total Energy does not placard and transport as a hazardous material. However, Total Energy has been contracted to flarelpurge four (4) propane peak-shaving plants owned and operated by Yankee Gas in Connecticut. After flaring and purging, these plants will subsequently in the future be dismantled and the ASME tanks removed. As these plants constitute pipeline facilities, they fall under the jurisdiction 6f the federal Department of Transportation's Pipeline and Hazardous Materials Safety Administration ("PHMSA"), whose authority has been delegated to the Connecticut Department of Public Utility Control's Gas Pipeline Safety Unit ("GPSU"). The GPSU requires the submission and approval of a flarelpwge plan 2 Hardscrabble Road North Salem, NY 10560 T.914.276.0490 F.914.276.0229#

Page 4TNERGY PRODUCTS & SERVICES WORLOWlDF prior to the commencement of any work. Yankee Gas has provided Total Energy's flare/purge plan to the GPSU and received comments back from the GPSU. One ofthose comments requires that the tanks only be purged to 80% LEL in accordance with AGA recommendations. Total Energy believes that all of these tanks must be placarded and transported as hazardous materials when they leave the respective plant, as the gross weight of the container is well in excess of 1,001 pounds (most of these tanks weight over 100,000 pounds). However, the GPSU and another contractor in the state (CMM, Inc. d/b/a Gas Services) currently decommissioning two other plants owned by Connecticut Natural Gas and Southern Connecticut Natural Gas dispute Total Energy's interpretation. CMM, Inc. d/b/a Gas Services is not placarding or transporting the tanks as hazardous materials. CMM, Inc. d/b/a Gas Services has actually performed other peak shaving plant decommissionings where the tanks were not purged to 0 LEL, but were transported without hazardous materials placards. Total Energy believes that Compliance Guide No. DOT 28 makes it clear that tanks not purged to 0 LEL must be placarded and transported as hazardous materials. This opinion is reinforced by the NPGA's transport certification guide. Accordingly, in light of these facts, Total Energy respectfully requests an interpretation answering the following questions: 1. Is 49 CFR 172.504(c)(l) applicable to the circumstances described herein, namely where 30,000 gallon and larger ASME tanks are being transported out of propane air peak shaving facilities to various destinations? 3. Is a tank flaredlpurged to only 85% LEL eligible for transport without being placarded as a hazardous material? As the projects described above are all currently underway and the Connecticut Natural Gas and Southern Connecticut Natural Gas plants are currently being purged and flared and scheduled for removal, your prompt attention this request for an interpretation is greatly appreciated. Thank you for your attention to this matter and we look forward to hearing fiom you soon. General Counsel 2 Hardscrabble Road North Salem, NY 10560 T.914.276.0490 F.914.276.0229 www. totatenergy.com#