{"operation":"document","citation":"13-0108R","title":"Eastex Crude Company — Hazardous Materials Safety Interpretation","source_type":"guidance","agency":"Pipeline and Hazardous Materials Safety Administration","status":"guidance","official":true,"published_on":"2014-04-22","effective_on":null,"summary":"13-0108R response to Eastex Crude Company concerning 173.22, 177.800, 177.816.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-interpretation-13-0108r.json","markdown":"https://regulus.evalyn.ai/document/phmsa-interpretation-13-0108r.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-interpretation-13-0108r","source_url":"https://www.phmsa.dot.gov/sites/phmsa.dot.gov/files/legacy/interpretations/Interpretation%20Files/2013/130108R.pdf","body":"<<<PAGE 1>>>\n\nU.S. Department\nof Transportation\nPipeline and Hazardous\nMaterials Safety\nAdministration\n1200 New Jersey Avenue, SE\nWashington, D.C. 20590\n·APR 2 2 2014\nMs. Kathy Harris\nSafety Director\nEastex Crude Company\n10907 Ste Hwy 11 W\nLeesburg, TX 75451\nRef. No.: 13-0108R\nDear Ms. Harris:\nThis is a revised response to your letter requesting clarification of certain requirements\nunder the Hazardous Materials Regulations (HMR; 49 CFR Part 171-180) applicable to the\nhighway transportation of \"High Gravity Condensate,\" in a cargo tank, classified as either\n\"UN1267, Petroleum crude oil, Class 3, Packing Group IIII\" or \"UN1268, Petroleum\nProducts, n.o.s (condensate), Class 3, Packing Group IIII.\"\nIn your letter you indicate that this is a Flammable liquid in Packing Group I or II. We\nwould like to ensure that you are familiar with § 173.22 of the HMR and corresponding\nrequirement for the shipper to properly classify a hazardous material. In addition, we would\nlike to raise your awareness to a January 2, 2014 safety alert issued by PHMSA. The alert\nwarns of crude oil variability and emphasizes proper and sufficient testing to ensure\naccurate characterization and classification. The alert expressed PHMSA' s concern that\nunprocessed crude oil may affect the integrity ofthe packaging or present additional\nhazards, related to corrosivity, sulfur content, and dissolved gas content. Further, on\nFebruary 25,2014, DOT issued an Emergency Order requiring those who offer \"UN1267,\nPetroleum crude oil\" for transportation by rail to ensure that the product is properly tested\nand classified in accordance with Federal safety regulations, which was superseded by a\nrevised Amended Emergency Order on March 6, 2014, clarifying the requirement. The\nMarch 6 Amended Emergency Order requires that all rail shipments of crude oil that is\nproperly classed as a flammable liquid in Packing Group (PG) III be treated as a PG I or II\nmaterial, until further notice. The Amended Emergency Order also authorized PG III\nmaterials to be described as PG III for the purposes of hazard communication. Copies of\nthe safety alert and emergency order enclosed for your convenience.\nYour questions are paraphrased and answered below:\nQ 1. What are the requirements to transport \"High Gravity Condensate\" in a cargo tank in\nTX, LA, OK, and NM?\n\n<<<PAGE 2>>>\n\nAI. The HMR apply to any person that transports or causes to be transported or shipped\nhazardous materials in interstate, intrastate, and foreign commerce, by all modes of\ntransportation (i.e., highway, rail, air, and vessel). The HMR include requirements for\nclassification, packaging, marking, labeling, shipping paper documentation, emergency\nresponse information, placarding, and training.\nQ2. What placard is required for \"High Gravity Consendate\"?\nA2. A cargo tank containing a class 3, packing group I or II material, must display a\nFLAMMABLE placard as described in§ 172.542. In addition, bulk packagings (e.g., cargo\ntanks) must display identification numbers on the placard in accordance with\n§ 172.332(c) or on orange panels in accordance with§ 172.332(b).\nQ3. What are the driver training requirements to transport \"High Gravity Condensate\"?\nA3. The HMR require that the driver must receive hazardous materials training (see\n§§ 177.800(c) and 177.816). This training must include general awareness, function-\nspecific, safety, and security awareness training as specified in§ 172.704(a) of the HMR, as\nwell as driver training in the applicable requirements of Federal Motor Carrier Safety\nRegulations (FMCSR; 49 CFR parts 390 through 397) and the procedures necessary for the\nsafe operation of that motor vehicle. Training conducted to satisfy compliance with the\ncurrent Federal Motor Carrier Safety Administration (FMCSA) requirements for a\nCommercial Driver's License (CDL) with a tank vehicle or hazardous materials\nendorsement may be used to satisfy the training requirements set forth in § 172.704 to the\nextent that such training addresses the training components specified in§ 172.704(a).\nWhere this training does not satisfy the HMR, the employer or self-employed person\nperforming these tasks must provide additional training that satisfies these requirements (see\n§ 177.816(c) and (d)). In addition, CDLs and hazardous materials endorsements are\nregulated by FMCSA in accordance with 49 CFR Part 383. Questions regarding FMCSA\nregulations should be directed to the appropriate FMC SA field office. A list of FMC SA\nfield offices and contact information is available at\n\"http://www.fmcsa.dot.gov/about/contact/offices /displayfieldroster.aspx,\" or you may\ncontact FMCSA at their headquarters offices in Washington, D.C., at (202) 366-6121.\nI hope this information is helpful. If you have further questions, please do not hesitate to\ncontact this office.\nSincerely,\nJoik~\nCharles Be~ \"\"\"'/ ~-\n-\nir ctor\nStandards and Rulemaking Division\n------------------\n\n<<<PAGE 3>>>\n\nU.S. Department ofTransportation\nPipeline and Hazardous Materials\nSafety Administration\n1200 New Jersey Ave, S.E.\nWashington, D.C. 20590\nJ,UL 1 8 tO l3\nMs. Kathy Harris\nSafety Director\nEastex Crude Company\n10907 Ste Hwy 11 W\nLeesburg, TX 75451\nRef. No.: 13-0108\nDear Ms. Harris:\nThis is in response to your letter requesting clarification of certain requirements under the\nHazardous Materials Regulations (HMR; 49 CFR Part 171-180) applicable to the highway\ntransportation of \"High Gravity Condensate,\" in a cargo tank, classified as either \"UN1267,\nPetroleum Crude Oil, Class 3, Packing Group IIII\" or \"UN1268, Petroleum Products, n.o.s\n(condensate), Class 3, Packing Group I/II.\" Your questions are paraphrased and answered\nbelow:\nQl. What are the requirements to transport \"High Gravity Condensate\" in a cargo tank in\nTX, LA, OK, and NM?\nAl. The HMR apply to any person that transports or causes to be transported or shipped\nhazardous materials in interstate, intrastate, and foreign commerce, by all modes of\ntransportation (i.e., highway, rail, air, and vessel). The HMR include requirements for\npackaging, marking; labeling, shipping paper documentation, emergency response\ninformation, placarding, and training.\nQ2. What placard is required for \"High Gravity Consendate\"?\nA2. A cargo tank containing a class 3, packing group I or II material, must display a\nFLAMMABLE placard as described in§ 172.542. In addition, bulk packagings (e.g., cargo\ntanks) must display identification numbers on the placard in accordance with\n§ 172.332( c) or on orange panels in accordance with § 172.332(b ).\nQ3. What are the driver training requirements to transport \"High Gravity Condensate\"?\nA3. The HMR require that the driver must receive hazardous materials training (see\n§§ 177.800( c) and 177.816). This training must include general awareness, function-\nspecific, safety, and security awareness training as specified in § 172.704( a) of the HMR, as\nwell as driver training in the applicable requirements of Federal Motor Carrier Safety\n~~---------------'-.---------------------\n\n<<<PAGE 4>>>\n\nRegulations (FMCSR; 49 CFR parts 390 through 397) and the procedures necessary for the\nsafe operation of that motor vehicle. Training conducted to satisfy compliance with the\ncurrent Federal Motor Carrier Safety Administration (FMCSA) requirements for a\nCommercial Driver's License (CDL) with a tank vehicle or hazardous materials\nendorsement rna y be used to satisfy the training requirements set forth in § 172.704 to the\nextent that such training addresses the training components specified in§ 172.704(a).\nWhere this training does not satisfy the HMR, the employer or self-employed person\nperforming these tasks must provide additional training that satisfies these requirements (see\n§ 177 .816( c) and (d)). In addition, CD Ls and hazardous materials endorsements are\nregulated by FMCSA in accordance with 49 CFR Part 383. Questions regarding FMCSA\nregulations should be directed to the appropriate FMCSA field office. A list of FMCSA\nfield offices and contact information is available at\n\"http://www.fmcsa.dot.gov/about/contact/offices /displayfieldroster.aspx,\" or you may\ncontact FMCSA at their headquarters offices in Washington, D.C., at (202) 366-6121.\nI hope this information is helpful. If you have further questions, please do not hesitate to\ncontact this office.\n4'\n'\n'~ ,F_,·f\" o;/'\nv ;l\nDelmer Billings t\nSenior Regulatory Advisor\nStandards and Rulemaking Division\n\n<<<PAGE 5>>>\n\nFrom:\nSent:\nTo:\nSubject:\nTwitty, Gail (PHMSA)\nTuesday, May 21, 2013 3:02PM\nDrakeford, Carolyn (PHMSA)\nFW: Question\nFrom: Kathy Harris [mailto:kathy.harris@eastexcrude.comJ\nSent: Tuesday, May 21, 2013 2:43 PM\nTo: Twitty, Gail (PHMSA)\nSubject: Question\nMs. Gail,\nI'm not sure if you can help me but hopefully you can point me in the right direction to get answers.\n1) What are the requirements to haul High Gravity Condensate in a pressurized trailer in TX, LA, OK\nandNM?\n2) What placard is for High Gravity Condensate?\n3) Do Driver's have to complete a special class/have training to haul High Gravity Condensate in? If\nso, what is the name of the class and where are the classes located?\nThank you in advance for any help you can give me!\nKathy Harris\nSafety Director\nEastex Crude Company\n10907 State Hwy 11 W\nLeesburg, TX 75451\nOffice: 903-856-2401 x 163\nCell: 903-285~2140\nFax:903~856-5228\nEmail: kathy.harris@eastexcrude.com\n1\n\n<<<PAGE 6>>>\n\nEnCana Corporation Material Safety Data Sheet Condensate (Sweet) Page I of 2\nSECTION 1-MATERIAL IDENTIFICATION AND USE\nMaterial Name: CONDENSATE (SWEET)\nUse: Process stream, fuels production\nWHMIS Classification: Class B, Div. 2; Class D, Div. 2, Sub-Div. A and B\nFire: 4 Reactivity: 0 Health: 3 Inventory No.:\nTDG: UN: 1267 Class: 3\nPacking Group: I (boiling point less than 35 deg. C)\nII (boiling point 35 deg. C or above; and flash point less than 23 de g. C)\nShipping Name: PETROLEUM CRUDE OIL\nManufacturer/Supplier: ENCANA CORPORATION\n#1800, 855-200 Street S.W., P.O. BOX2850\nCALGARY, ALBERTA, T2P 2S5\nEmergency Telephone: 403-645-3333\nChemical Family: C5+ aliphatic and aromatic hydrocarbons.\nSECTION 2- HAZARDOUS INGREDIENTS OF MATERIAL\nHazardous Approximate C.A.S. LD50/LC50\nIngredients Concentrations(%) Nos. Specify Species\n& Route\nExposure\nLimits\nPentanes\nn-Hexane\nButanes\n50-60\n35-50\n<10\n109-66-0\n110-54-3\n106-97-8\nLC50,rat,4 hr,364 g/m3\nLD50,rat,oral,28.7 glkg\nLC50,rat.4 hrs,658 g/m3\n600 ppm (OEL,TLV)\n50·ppm (OEL,TL V)\n1000 ppm (OEL),\n1000 ppm (TLV1)\nBenzene 0.1-1 71-43-2 LD50,rat.oral,930 mglkg 0.5 ppm (OEL),\nLC50,rat,4 hr,l3200 ppm 0.5 ppm (TLV)\nOEL = 8 hr. Alberta Occupational Exposure Limit; TL V =Threshold Limit Value (8 hrs) 1 As Aliphatic hydrocarbon gases\nSECTION 3-PHYSICAL DATA FOR MATERIAL\nPhysical State: Liquid Specific Gravity: 0.6-0.75 Vapour Density (air=l): 2.5-3.0 Percent Volatiles, by volume: 100 pH: N.A v. Coefficient of Water/Oil Distribution: <0.1\nOdou_r & Appearance: colorless/str~w coloured liquid, hydrocarbon odour\n(N.AV. ==not available N.App. =not applicable)\nVapour Pressure (mmHg): 600- 830@ 20 deg. C.\nOdour Threshold (ppm): N.Av.\nEvaporation Rate: N.Av.\nBoiling Pt. (deg.C): 40\nFreezing Pt. ( deg.C): -129 to -60\nSECTION 4- FIRE AND EXPLOSION\nFlammability: Yes Conditions: Material will ignite at normal temperatures.\nMeans of Extinction: Foam, C02, dry chemical. Explosive accumulations can build up in areas of poor ventilation.\nSpecial Procedures: Use water spray to cool fire-exposed containers, and to disperse vapors if spill has not\nignited. If safe, cut off fuel and allow flame to bum out.\nFlash Point (deg.C) & Method: <-40 (TCC)\nUpper Explosive Limit(% by vol.): 8 Lower Explosive Limit(% by vol.): 0.6 Auto-Ignition Temp. { deg.C): 223 Sensitivity to Impact: No\nSensitivity to Static Discharge: Yes, may ignite\nTDG Flammability Classification: 3\nHazardous Combustion Products: Carbon monoxide, carbon dioxide\nSECTION 5-REACTIVITY DATA\nChemical Stability: Yes Conditions: Heat\nIncompatibility: Yes Substances: Oxidizing agents (e.g. chlorine)\nReactivity: Yes Conditions: . Heat, strong sunlight\nHazardous Decomposition Products: Carbon monoxide, carbon dioxide\n\n<<<PAGE 7>>>\n\nEncana Corporation Material Safety Data Sheet Condensate (Sweet) Page 2of2\nSECTION 6- TOXICOLOGICAL PROPERTIES OF PRODUCT\nRoutes of Entry:\nSkin Absorption Yes Skin Contact: Yes (liquid) Eye Contact: Yes\nInhalation: Acute: Yes Chronic: Yes Ingestion: Yes\nEffects of Acute Exposure: Vapour may cause irritation of eyes, nose and throat., dizziness and drowsiness. Contact with\nskin may cause irritation and possibly dermatitis. Absorbed through intact skin. Contact of liquid with eyes may cause\nsevere irritation and possible damage,\nEffects of Chronic Exposure: Due to presence of benzene and n-hexane, long term exposure may increase the risk of\nanaemia, leukaemia and nervous system damage.\nSensitization to Product: No.\nExposure Limits of Product: 0.5 ppm (Alberta 8 hr OEL for benzene)\nIrritancy: Yes\nSynergistic Materials: None reported\nCarcinogenicity: Yes Reproductive Effects: Possibly Teratogenicity: Possibly Mutagenicity: Possibly\nSECTION 7-PREVENTIVE MEASURES ·\nPersonal Protective Equipment: Use positive pressure self-contained breathing apparatus, supplied air breathing\napparatus or cartridge air purifYing respirator approved for organic vapours where concentrations may exceed exposure\nlimits (note: cartridge respirator not suitable for oxygen deficiency or IDLH situations).\nGloves: Viton (nitrile adequate for short exposure to liquid) Respiratory: SCBA, SABA or cartridge APR\nEye: Splash Goggles\nFootwear: As per safety policy Clothing: As per fire protection policy\nEngineering Controls: Use only in well ventilated areas. Mechanical ventilation required in confmed areas. Equipment\nmust be explosion proof.\nLeaks & Spills: Stop leak if safe to do so. Use appropriate personal protective equipment. Use water spray to cool\ncontainers. Remove all ignition sources. Provide explosion-proof clearing ventilation, if possible. Prevent from entering\nconfined spaces. Dyke and pump into containers for recycling or disposal. NotifY appropriate regulatory authorities.\nWaste Disposal:- Contact regulatory authorities for disposal requirements.\nHandling Procedures & Equipment: Avoid contact with liquid. Avoid inhalation. Bond and ground all transfers.\nA void sparking conditions. ·\nStorage Requirements: Store in a cool, dry, well ventilated area away from heat, strong sunlight, and ignition sources.\nSpecial Shipping Information: N.App. ·\nSECTION 8-FIRST AID MEASURES\nSkin:\nFlush skin with water, removing contaminated clothing. Get medical attention if irritation persists or\nlarge area of contact. Decontaminate clothing before re-use.\nEye:\nImmediately flush with large amounts of luke warm water for 15 minutes, lifting upper and lower lids at\nintervals. Seek medical attention if irritation persists.\nInhalation:\nEnsure own safety. Remove victim to fresh air. Give oxygen, artificial respiration, or CPR if needed.\nSeek medical attention immediately.\nIngestion:\nGive 2-3 glasses of milk or water to drink. DO NOT INDUCE VOMITING. Keep warm and at rest.\nGet immediate medical attention.\nSECTION 9- PREPARATION DATE OF MSDS\nPrepared By: EnCana Environment, Health and Safety (EHS)\nPhone Number: (403) 645-2000 Preparation Date: July 1, 2011 Expiry Date: July 1, 2014\n\n<<<PAGE 8>>>\n\n~The\nJ\\dmjn1stration\n~1 200 r.Jevv Jersey /\\venue: SE\nWashington, DC 20590\nvrww. ohrnsa.dot.oov\nSafety Alert-- January 2, 2014\nPreliminary Guidance from OPERATION CLASSIFICATION\nThe PiDeline and Hazardous i\\laterials Safetv Administration (PHMSA) is issuing this safety\nalert to notify the general public, emergency responders and shippers and carriers that recent\nderailments and resulting fires indicate that the type of crude oil being transported from the\nBakken region may be more flammable than traditional heavy crude oil.\nBased upon preliminary inspections conducted after recent rail derailments in North Dakota,\nAlabama and Lac-Megantic, Quebec involving Bakken crude oil, PHMSA is reinforcing the\nrequirement to properly test, characterize, classify, and where appropriate sufficiently degasify\nhazardous materials prior to and during transportation. This advisory is a follow-up to the\nPHMSA and Federal Railroad Administration (FRA) joint safetv advisorv published November\n20, 2013 [78 FR 69745]. As stated in the November Safety Advisory, it is imperative that\nofferors properly classify and describe hazardous materials being offered for transportation. 49\nCFR 173.22. As part of this process, offerors must ensure that all potential hazards of the\nmaterials are properly characterized.\nProper characterization will identify properties that could affect the integrity ofthe packaging or\npresent additional hazards, such as corrosivity, sulfur content, and dissolved gas content. These\ncharacteristics may also affect classification. PHMSA stresses to offerors the importance of\nappropriate classification and packing group (PG) assignment of crude oil shipments, whether\nthe shipment is in a cargo tank, rail tank car or other mode of transportation. Emergency\nresponders should remember that light sweet crude oil, such as that coming from the Bakken\nregion, is typically assigned a packing group I or II. The PGs mean that the material's flashpoint\nis below 73 degrees Fahrenheit and, for packing group I materials, the boiling point is below 95\ndegrees Fahrenheit. This means the materials pose significant fire risk if released from the\npackage in an accident.\nAs part of ongoing investigative efforts, PHMSA and FRA initiated \"Operation Classification,\" a\ncompliance initiative involving unannounced inspections and testing of crude oil samples to\nverify that offerors of the materials have been properly classified and describe the hazardous\nmaterials. Preliminary testing has focused on the classification and packing group assignments\nthat have been selected and certified by offerors of crude oil. These tests measure some of the\ninherent chemical properties of the crude oil collected. Nonetheless, the agencies have found it\nnecessary to expand the scope of their testing to measure other factors that would affect the\nproper characterization and classification of the materials. PHMSA expects to have final test\n\n<<<PAGE 9>>>\n\nresults in the near future for the gas content, corrosivity, toxicity, flammability and certain other\ncharacteristics of the Bakken crude oil, which should more clearly inform the proper\ncharacterization ofthe material.\n\"Operation Classification\" will be an ongoing effort, and PHMSA will continue to collect\nsamples and measure the characteristics of Bakken crude as well as oil from other locations.\nBased on initial field observations, PHMSA expanded the scope of lab testing to include other\nfactors that affect proper characterization and classification such as Reid Vapor Pressure,\ncorrosivity, hydrogen sulfide content and composition/concentration of the entrained gases in the\nmaterial. The results of this expanded testing will further inform shippers and carriers about how\nto ensure that the materials are known and are properly described, classified, and characterized\nwhen being shipped. In addition, understanding any unique hazards of the materials will enable\nofferors, carriers, first responders, as well as PHMSA and FRA to identify any appropriate\nmitigating measures that need to be taken to ensure the continued safe transportation of these\nmaterials.\nPHMSA will share the results of these additional tests with interested parties as they become\navailable. PHMSA also reminds offerors that the hazardous materials regulations require\nofferors of hazardous materials to properly classify and describe the hazardous materials being\noffered for transportation. 49 CFR 173.22. Accordingly, offerors should not delay completing\ntheir own tests while PHMSA collects additional information.\nFor additional information regarding this safety alert, please contact Rick Raksnis, PHMSA Field\nServices Division, (202) 366-4455 or E-mail: Richard.Raksnis.«dot.!Zov. For general\ninformation and assistance regarding the safe transport of hazardous materials, contact PHMSA's\nInformation Center at 1-800-467-4922 or phmsa.hn1-infoc:::nterindor.gov.\n\n<<<PAGE 10>>>\n\nUNITED STATES DEPARTMENT OF TRANSPORTATION\nPetroleum Crude Oil Offerors )\n& )\nPetroleum Crude Oil Rail Carriers ) Docket No. DOT-OST-2014-0025\nAMENDED AND RESTATED E~IERGENt;Y\nRESTRit;TION /PROHIBITION\nORDER\nOn February 25, 2014, the Secretary ofTransportation issued an Emergency Restriction/\nProhibition Order (Original Order) to all persons who offer for transportation, or transport, in tank\ncars by rail in commerce to, from and within the United States, a bulk quantity of petroleum crude\noil (Petroleum Crude Oil Offerors and Rail Carriers).\nThis Amended and Restated Emergency Restriction and Prohibition Order (Amended\nOrder) seeks to clarify the Original Order and supersedes and replaces in its entirety the Original\nOrder. This Amended Order governs shipments of petroleum crude oil offered in transportation, in\ntank cars by rail, in commerce to, from and within the United States and does not cover other\nmodes of transportation (e.g., motor carrier transportation).\nThe legally binding requirements of this Amended Order are set forth under the \"Effective\nImmediately\" and \"Remedial Action\" sections. The remainder of this Amended Order provides\nbackground information and the rationale for the issuance of this Order.\nThis Amended Order constitutes an Emergency Restriction/Prohibition Order by the\nUnited States Department of Transportation (DOT) pursuant to 49 U.S.C. § 512l(d). The\nAmended Order is issued to all persons who offer for transportation, in tank cars by rail, in\ncommerce to, from, and within the United States, UN 1267, Petroleum crude oil, Class 3, PG I, II,\n\n<<<PAGE 11>>>\n\nor III, as described by 49 CFR § 172.10 I of the Hazardous Materials Regulations (HMR; 49 CFR\nParts 171 to 180).\nBy this Amended Order, DOT is:\n* requiring persons who offer bulk quantities of petroleum crude oil for transportation in\ncommerce by rail in rail tank cars to ensure that the material is properly tested (conducted\nwith sufficient frequency and quality) and classed in accordance with this Amended Order\nand theHMR;\n* requiring persons who offer bulk quantities of petroleum crude oil for transportation in\ncommerce by rail in rail tank cars to treat Class 3 petroleum crude oil as a Packing Group\n(PG) I or PG II hazardous material only; and\n*prohibiting persons who ordinarily offer petroleum crude oil for shipment as UN 1267,\npetroleum crude oil, Class 3, PG I, II, or III from reclassifying such crude oil with the\nintent to circumvent the requirements of this Amended Order.\nUpon information derived from recent railroad accidents and subsequent investigations and\ntesting, the Secretary of Transportation has found that violations ofthe Federal Hazmat law (51\nU.S.C. §§ 5101, et seq.) or the Hazardous Materials Regulations (HMR) ( 49 CFR Parts 171 to\n180), and unsafe practices related to the classification and packaging of petroleum crude oil, are\ncausing or otherwise constitute an imminent hazard to the safe transportation of UN 1267,\nPetroleum crude oil, Class 3, PG I, II, or III. For more detailed information, see\n\"Background/Basis for Order\" below.\n2\n\n<<<PAGE 12>>>\n\nEFFECTIVE IMMEDIATELY ANY PERSON IDENTIFIED BY THIS ORDER:\n1) Shall ensure that prior to offering bulk quantities of UN 1267, petroleum crude oil,\nClass 3, into transportation in commerce by rail in tank cars, such petroleum crude oil is properly\ntested and classed in accordance with the requirements of 49 CFR parts 172 and 173. For purposes\nof this Amended Order, testing must have been conducted within the reasonable, recent past to\ndetermine flash point and boiling point in order to assign a proper PG.\n2) Shall ensure that shipments by rail of UN 1267, petroleum crude oil, Class 3, PG III are\ntransported according to the requirements for UN 1267, petroleum crude oil, Class 3, PG I or PG II.\nPG III materials may continue to be described as PG III for the purposes of hazard communication.\n3) Persons who ordinarily offer petroleum crude oil for shipment as UN 1267, petroleum\ncrude oil, Class 3, PG I, II, or III shall not reclassify such crude oil with the intent to circumvent\nthe requirements of this Amended Order.\nThis Amended Order applies to all persons who offer for transportation or transport by rail\nin commerce to, from and within the United States, petroleum crude oil in tank cars by rail, and\ntheir officers, directors, employees, subcontractors, and agents.\nThis Amended Order is effective immediately and remains in effect unless withdrawn in\nwriting by the Secretary, or until it otherwise expires by operation of regulation and/or law.\nJurisdiction\nThe Secretary of Transportation has the authority to regulate the transportation of\npetroleum crude oil in commerce. 49 U.S.C. § 5103(b). The Secretary ofTransportation has\ndesignated UN 1267, petroleum crude oil, Class 3, Packing Group I, II, or III, as a hazardous\nmaterial subject to the requirements ofthe HMR. 49 U.S.C. § 512l(d); 49 U.S.C. § 5103(a).\nPersons who offer for transportation, or transport, petroleum products (i.e., petroleum crude oil) in\n3\n\n<<<PAGE 13>>>\n\ncommerce to, from and within the United States are \"persons,\" as defined by 49 U.S.C. § 51 02(9),\nin addition to being \"persons\" under 1 U.S.C. § 1 and 49 CFR § 171.8. \"Commerce\" is as defined\nby 49 U.S.C. § 5102(1) and 49 CFR § 171.8, and \"transportation\" or \"transport\" are as defined by\n49 U.S.C. § 5102(13) and 49 CFR 171.8. A \"railroad\" is as defined by49 CFR § 171.8. A \"train\"\nis as defined by 49 CFR § 171.8. Accordingly, persons who offer for transportation or transport\npetroleum crude oil in commerce, including by rail, are subject to the authority and jurisdiction of\nthe Secretary, including the authority to impose emergency restrictions, prohibitions, recalls, or\nout-of-service orders, without notice or an opportunity for hearing, to the extent necessary to abate\nthe imminent hazard. 49 U.S.C. § 5121(d).\nBackground/Basis for Order\nAn imminent hazard, as defined by 49 U.S.C. § 51 02(5), constitutes the existence of a\ncondition relating to hazardous materials that presents a substantial likelihood that death, serious\nillness, severe personal injury, or a substantial endangerment to health, property, or the\nenvironment may occur before the reasonably foreseeable completion date of a fonnal proceeding\nbegun to lessen the risk that death, illness, injury or endangerment may occur.\nMisclassification is one of the most dangerous mistakes to be made when dealing with\nhazardous materials because proper classification is the critical first step in determining how to\npackage, handle, communicate about, and safely transport hazardous materials. Misclassification\nmay indicate larger problems with company management, oversight, and quality control.\nPetroleum crude oil may contain dissolved gases or other unanticipated hazardous constituents,\nmay exhibit corrosive properties and also may exhibit toxic properties. Additionally, the\nflammability of petroleum crude oil being shipped by bulk rail poses a significant risk of\nsubstantial endangerment to health, property, or the environment when an explosion occurs.\n4\n\n<<<PAGE 14>>>\n\nIn light of continued dangers associated with petroleum crude oil shipments by rait the\nactions described in this Amended Order are necessary to eliminate unsafe conditions and practices\nthat create an imminent hazard to public health and safety and the environment.\nA. Recent Crude Oil Incidents\nThe United States has experienced a dramatic growth in the quantity of petroleum crude\noil being shipped by rail in recent years. The growth has largely been spurred by developments in\nNorth Dakota, where the Bakken formation in the Williston Basin has become a major source for\noil production in the United States. Much of the Bakken petroleum crude oil is shipped via rail to\nrefineries located near the U.S. Gulf Coast or to pipeline connections, primarily located in\nOklahoma.' Shipping hazardous materials is inherently dangerous. Transporting petroleum crude\noil can be problematic if released into the environment because it both is flammable and causes oil\nspills. This risk of flammability is compounded in the context of rail transportation because\npetroleum crude oil is commonly shipped in bulk quantities on large unit trains. With the rising\ndemand for rail carriage of hazardous materials, occasioned by the current demand for petroleum\ncrude oif throughout the United States, the risk of rail incidents increases. Several accidents since\nlast summer, which caused deaths, injuries and significant property damage, have demonstrated the\nneed for emergency action to address unsafe practices in the shipment of petroleum crude oil by\nrail. The shipments are an imminent hazard when Packing Group I or Packing Group II petroleum\ncrude oil is misclassified as Packing Group III, which could lead to an improper package being\nused to transport the misclassified hazardous material.\n1 See AAR's December 2013 paper \"Moving Petroleum crude oil by Rail\", available online at:\nhttps://www.aar.org/keyissues/Documents/Background-Papers/Crude-oil-by-rail.pdf.\n2 In 2011 there were 65,751 originations of tank car loads of crude oiL In 2012, there were 233,811 originations.\nAssociation of American Railroads, lvfoving Crude Petroleum by Rail,\nhttps://www.aar.org/keyissues/Documents/Background-\nPapers!Moving%20Crude%20Petroleum%20by%20Rail%2020 12-12-1 O.pdf (December 20 12).\n5\n\n<<<PAGE 15>>>\n\nMost recently, on December 30, 2013, a westbound grain train derailed 13 cars near\nCasselton, North Dakota, 3 fouling main track 2. Simultaneously, an eastbound petroleum crude\noil unit train was operating on main track 2. The petroleum crude oil unit train reduced its speed\nand collided with the derailed car that was fouling main track 2, resulting in the derailment of the\nhead-end locomotives and the first 21 cars of the petroleum crude oil unit train. Eighteen of the 21\nderailed tank cars ruptured, and an estimated 400,000 gallons of crude was released. The ruptured\ntank cars ignited causing an explosion. Approximately 1,400 people were evacuated. Damages\nfrom the derailment have been estimated at $8 million. 4\nOn November 8, 2013, a 90-car petroleum crude oil train derailed in a rural area near\nAliceville, Alabama. The petroleum crude oil shipment had originated in North Dakota, and was\nbound for Walnut Hill, Florida, to be transported by a regional pipeline to a refinery in Saraland,\nAlabama. More than 20 cars derailed and the petroleum crude oil of at least 11 cars ignited\nresulting in an explosion and fire. Although there were no reported injuries, an undetermined\namount of petroleum crude oil escaped from derailed cars fouling a wetlands area near the\nderailment site, and the costs are estimated at $3.9 million.\nOn July 6, 2013, a catastrophic railroad accident involving a U.S. railroad company\noccurred in Lac-Megantic, Quebec, Canada, when an unattended freight train transporting crude\noil rolled down a descending grade and subsequently derailed. 5 The derailment resulted in\nmultiple explosions and subsequent fires, which caused the confirmed death of forty-two people\nand presumed death of five more, extensive damage to the town center and the evacuation of\n3 This derailment currently is being investigated by the National Transportation Safety Board (NTSB), and information\nregarding this incident can be found at the NTSB website. See\nhttp:/ /www.ntsb.gov/doclib/reports/20 14/Casselton _ ND _Preliminary. pdf.\n4 Federal Rail Administration\n5 This derailment currently is being investigated by the Transportation Safety Board of Canada and information\nregarding this incident can be found at the TSB website. See\nhttp://www.bst-tsb.gc.ca!eng/enquetes-investigations/rail/2013/Rl3D0054/Rl3D0054.asp\n6\n\n<<<PAGE 16>>>\n\napproximately 2,000 people from the surrounding area. Preliminary estimates of costs exceed over\n$1 billion.\nB. DOT Actions to Increase Safety of Petroleum Crude Oil Shipments\nIn the wake of these and other events, the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) and the Federal Railroad Administration (FRA) have taken a number of\nsteps to increase the safety of petroleum crude oil shipments by rail. Following the Lac-Megantic\nderailment, on August 7, 2013, FRA issued Emergency Order No. 28 (EO 28), establishing\nsecurement requirements for certain unattended trains and rail equipment, including petroleum\ncrude oil unit trains. EO 28 remains in effect until further notice by FRA. In addition, on August\n7, 2013, PHMSA and FRA issued Safety Advisory 2013-06, which made a number of safety-\nrelated recommendations to railroads and hazardous materials offerors operating in the United\nStates, including the recommendation that offerors evaluate their processes to ensure that\nhazardous materials are properly classed and described in accordance with the HMR, and the\nrecommendation that offerors and carriers conduct reviews of their safety and security plans. On\nAugust 27-28, 2013, FRA and PHMSA held a public meeting with industry stakeholders to solicit\ninput on a comprehensive review of safety regulations contained in 49 CPR Part 174 applicable to\nthe safe transportation of hazardous materials by rail. PHMSA and FRA are collaborating to\naddress comments received at the public meeting.\nOn August 29,2013, FRA convened an emergency session of the Railroad Safety\nAdvisory Committee (RSAC). RSAC is a group composed of railroad industry, labor, and\ngovernmental representatives who develop recommendations on new regulatory standards and\nother rail safety programs. During the emergency meeting, RSAC established three collaborative\nworking groups to formulate new rulemaking recommendations regarding hazardous materials\n7\n\n<<<PAGE 17>>>\n\ntransportation by rail, appropriate train crew sizes, and train securement procedures. Each of these\nworking groups has been meeting on a regular basis and each working group is expected to\nproduce formal recommendations for consideration on or before April2014.\nOn September 6, 2013, PHMSA issued an Advanced Notice of Proposed Rulemaking\n(ANPRM) ((HM-251 ); 78 Fed. Reg. 54849) to solicit comments on petitions for rulemaking and\nNational Transportation Safety Board (NTSB) recommendations related to rail hazmat safety,\nincluding regulations regarding operational practices and DOT specification tank cars, most\ncommonly used to move crude oil by rail. The comment period closed on December 5, 2013, and\nPHMSA received 135 comments representing over 150,000 stakeholders. The Department is\nactively working on developing a regulatory proposal.\nPHMSA and FRA issued a supplementary safety advisory, Safety Advisory 2013-07, on\nNovember 20, 2013, to emphasize the importance of proper characterization, classification, and\nselection of a packing group for Class 3 materials (flammable liquids, including petroleum crude\noil), and to reinforce the need to follow the Federal hazardous materials regulations for safety and\nsecurity planning. On January 2, 2014, PHMSA issued a Safety Alert, which warned of crude oil\nvariability and emphasized that unprocessed crude oil may affect the integrity of packaging or\npresent additional hazards related to corrosivity, sulfur content, and dissolved gas content.\nOn January 16, 2014, the Secretary of Transportation met with members of the rail and\nthe petroleum industries in a Call to Action to address the risks associated with the transportation\nof crude oil by rail. As a result, railroads recently committed to voluntary actions to enhance the\nsafety of crude oil transportation by rail, including implementing speed restrictions, increasing rail\nand mechanical inspections, and other safety-enhancing measures.\n8\n\n<<<PAGE 18>>>\n\nNotwithstanding the above DOT actions, in light of continued risks associated with\npetroleum crude oil shipments by rail, the further action described in this Amended Order is\nnecessary to eliminate unsafe conditions and practices related to the classification and packaging\nof petroleum crude oil that create an imminent hazard to public health and safety and the\nenvironment.\nC. Classification and Packaging of Petroleum Crude Oil\nThe proper classification and characterization of a hazardous material is critical and\nrequired under the HMR by Parts 171, 172 and 173, as it dictates additional requirements, such as\noperational controls, emergency response, and proper packaging selection. The HMR is essential\nfor safe transportation. The classification requirements in the HMR dictate the appropriate and\nauthorized selection of packaging, fill densities and outage; accompanying hazard communications\n(markings, labels and placards); transportation safety and operational controls; and safety and\nsecurity planning. Not only can properly classified shipments mitigate injury and damage when\naccidents occur, they are necessary to enable the most effective and informed emergency response.\nIndeed, the accurate classification of hazardous materials in transportation can protect the safety of\nemergency responders and others who may come into contact with the material.\nProper classification and characterization is especially important when dealing with an\norganic material such as mined liquids and gases, as these materials have variable characteristics,\nunlike manufactured products, which are generally consistent. Moreover, crude oil transported by\nrail often derives from different sources and is then blended, further enhancing the potential range\nof appropriate classifications.\nIt is the offeror's responsibility to properly classify and describe the hazardous material in\naccordance with parts 172 and 173 of the HMR. See§§ 171.1 and 171.2 and 173.22. When a\n9\n\n<<<PAGE 19>>>\n\nsingle material meets more than one hazard class, the shipper must select the proper shipping name\nbased on the hazard precedence table in§ 173.2a. Once an offeror has determined the hazard class\nof the material, the offeror must select the most appropriate proper shipping name from the HMR.\nAs with other hazardous materials, an offeror of petroleum crude oil must determine all\nhazardous constituents in order to properly classify and package the petroleum crude oil under the\nHMR. For offerors without sufficient knowledge to classify their petroleum crude oil, in addition\nto the tests required by this Amended Order, testing to characterize and classify the hazardous\nmaterials necessary to comply with the HMR may include, but is not limited to, percentage\npresence of flammable gases; vapor pressure; presence, concentration and content of compounds\nsuch as sulfur/hydrogen sulfide; and corrosivity.\nWith regard to package selection, the HMR requires at § 173 .24(b) that each package\nused for the shipment of hazardous materials shall be designed, constructed, maintained, filled, its\ncontents so limited, and closed, so that under conditions normally incident to transportation there\nwill be no identifiable (without the use of instruments) release of hazardous materials to the\nenvironment, and further requires that the effectiveness of the package will not be substantially\nreduced. Under this requirement, offerors must consider how the properties of the material,\nincluding temperature and pressure, may affect the packaging.\nPHMSA and FRA issued a supplementary safety advisory, Safety Advisory 2013-07, on\nNovember 20,2013, to emphasize the importance of proper characterization, classification, and\nselection of a packing group for Class 3 materials, and to reinforce the need to follow the Federal\nhazardous materials regulations for safety and security planning.\nIn addition, PHMSA and FRA initiated Operation Classification in August 2013, which\ninvolves unannounced inspections requesting samples of the transported pet","truncated":true,"body_characters":56790}