# Eastex Crude Company — Hazardous Materials Safety Interpretation - **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:** Not available - **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:** <<>> U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration 1200 New Jersey Avenue, SE Washington, D.C. 20590 ·APR 2 2 2014 Ms. Kathy Harris Safety Director Eastex Crude Company 10907 Ste Hwy 11 W Leesburg, TX 75451 Ref. No.: 13-0108R Dear Ms. Harris: This is a revised response to your letter requesting clarification of certain requirements under the Hazardous Materials Regulations (HMR; 49 CFR Part 171-180) applicable to the highway transportation of "High Gravity Condensate," in a cargo tank, classified as either "UN1267, Petroleum crude oil, Class 3, Packing Group IIII" or "UN1268, Petroleum Products, n.o.s (condensate), Class 3, Packing Group IIII." In your letter you indicate that this is a Flammable liquid in Packing Group I or II. We would like to ensure that you are familiar with § 173.22 of the HMR and corresponding requirement for the shipper to properly classify a hazardous material. In addition, we would like to raise your awareness to a January 2, 2014 safety alert issued by PHMSA. The alert warns of crude oil variability and emphasizes proper and sufficient testing to ensure accurate characterization and classification. The alert expressed PHMSA' s concern that unprocessed crude oil may affect the integrity ofthe packaging or present additional hazards, related to corrosivity, sulfur content, and dissolved gas content. Further, on February 25,2014, DOT issued an Emergency Order requiring those who offer "UN1267, Petroleum crude oil" for transportation by rail to ensure that the product is properly tested and classified in accordance with Federal safety regulations, which was superseded by a revised Amended Emergency Order on March 6, 2014, clarifying the requirement. The March 6 Amended Emergency Order requires that all rail shipments of crude oil that is properly classed as a flammable liquid in Packing Group (PG) III be treated as a PG I or II material, until further notice. The Amended Emergency Order also authorized PG III materials to be described as PG III for the purposes of hazard communication. Copies of the safety alert and emergency order enclosed for your convenience. Your questions are paraphrased and answered below: Q 1. What are the requirements to transport "High Gravity Condensate" in a cargo tank in TX, LA, OK, and NM? <<>> AI. The HMR apply to any person that transports or causes to be transported or shipped hazardous materials in interstate, intrastate, and foreign commerce, by all modes of transportation (i.e., highway, rail, air, and vessel). The HMR include requirements for classification, packaging, marking, labeling, shipping paper documentation, emergency response information, placarding, and training. Q2. What placard is required for "High Gravity Consendate"? A2. A cargo tank containing a class 3, packing group I or II material, must display a FLAMMABLE placard as described in§ 172.542. In addition, bulk packagings (e.g., cargo tanks) must display identification numbers on the placard in accordance with § 172.332(c) or on orange panels in accordance with§ 172.332(b). Q3. What are the driver training requirements to transport "High Gravity Condensate"? A3. The HMR require that the driver must receive hazardous materials training (see §§ 177.800(c) and 177.816). This training must include general awareness, function- specific, safety, and security awareness training as specified in§ 172.704(a) of the HMR, as well as driver training in the applicable requirements of Federal Motor Carrier Safety Regulations (FMCSR; 49 CFR parts 390 through 397) and the procedures necessary for the safe operation of that motor vehicle. Training conducted to satisfy compliance with the current Federal Motor Carrier Safety Administration (FMCSA) requirements for a Commercial Driver's License (CDL) with a tank vehicle or hazardous materials endorsement may be used to satisfy the training requirements set forth in § 172.704 to the extent that such training addresses the training components specified in§ 172.704(a). Where this training does not satisfy the HMR, the employer or self-employed person performing these tasks must provide additional training that satisfies these requirements (see § 177.816(c) and (d)). In addition, CDLs and hazardous materials endorsements are regulated by FMCSA in accordance with 49 CFR Part 383. Questions regarding FMCSA regulations should be directed to the appropriate FMC SA field office. A list of FMC SA field offices and contact information is available at "http://www.fmcsa.dot.gov/about/contact/offices /displayfieldroster.aspx," or you may contact FMCSA at their headquarters offices in Washington, D.C., at (202) 366-6121. I hope this information is helpful. If you have further questions, please do not hesitate to contact this office. Sincerely, Joik~ Charles Be~ """'/ ~- - ir ctor Standards and Rulemaking Division ------------------ <<>> U.S. Department ofTransportation Pipeline and Hazardous Materials Safety Administration 1200 New Jersey Ave, S.E. Washington, D.C. 20590 J,UL 1 8 tO l3 Ms. Kathy Harris Safety Director Eastex Crude Company 10907 Ste Hwy 11 W Leesburg, TX 75451 Ref. No.: 13-0108 Dear Ms. Harris: This is in response to your letter requesting clarification of certain requirements under the Hazardous Materials Regulations (HMR; 49 CFR Part 171-180) applicable to the highway transportation of "High Gravity Condensate," in a cargo tank, classified as either "UN1267, Petroleum Crude Oil, Class 3, Packing Group IIII" or "UN1268, Petroleum Products, n.o.s (condensate), Class 3, Packing Group I/II." Your questions are paraphrased and answered below: Ql. What are the requirements to transport "High Gravity Condensate" in a cargo tank in TX, LA, OK, and NM? Al. The HMR apply to any person that transports or causes to be transported or shipped hazardous materials in interstate, intrastate, and foreign commerce, by all modes of transportation (i.e., highway, rail, air, and vessel). The HMR include requirements for packaging, marking; labeling, shipping paper documentation, emergency response information, placarding, and training. Q2. What placard is required for "High Gravity Consendate"? A2. A cargo tank containing a class 3, packing group I or II material, must display a FLAMMABLE placard as described in§ 172.542. In addition, bulk packagings (e.g., cargo tanks) must display identification numbers on the placard in accordance with § 172.332( c) or on orange panels in accordance with § 172.332(b ). Q3. What are the driver training requirements to transport "High Gravity Condensate"? A3. The HMR require that the driver must receive hazardous materials training (see §§ 177.800( c) and 177.816). This training must include general awareness, function- specific, safety, and security awareness training as specified in § 172.704( a) of the HMR, as well as driver training in the applicable requirements of Federal Motor Carrier Safety ~~---------------'-.--------------------- <<>> Regulations (FMCSR; 49 CFR parts 390 through 397) and the procedures necessary for the safe operation of that motor vehicle. Training conducted to satisfy compliance with the current Federal Motor Carrier Safety Administration (FMCSA) requirements for a Commercial Driver's License (CDL) with a tank vehicle or hazardous materials endorsement rna y be used to satisfy the training requirements set forth in § 172.704 to the extent that such training addresses the training components specified in§ 172.704(a). Where this training does not satisfy the HMR, the employer or self-employed person performing these tasks must provide additional training that satisfies these requirements (see § 177 .816( c) and (d)). In addition, CD Ls and hazardous materials endorsements are regulated by FMCSA in accordance with 49 CFR Part 383. Questions regarding FMCSA regulations should be directed to the appropriate FMCSA field office. A list of FMCSA field offices and contact information is available at "http://www.fmcsa.dot.gov/about/contact/offices /displayfieldroster.aspx," or you may contact FMCSA at their headquarters offices in Washington, D.C., at (202) 366-6121. I hope this information is helpful. If you have further questions, please do not hesitate to contact this office. 4' ' '~ ,F_,·f" o;/' v ;l Delmer Billings t Senior Regulatory Advisor Standards and Rulemaking Division <<>> From: Sent: To: Subject: Twitty, Gail (PHMSA) Tuesday, May 21, 2013 3:02PM Drakeford, Carolyn (PHMSA) FW: Question From: Kathy Harris [mailto:kathy.harris@eastexcrude.comJ Sent: Tuesday, May 21, 2013 2:43 PM To: Twitty, Gail (PHMSA) Subject: Question Ms. Gail, I'm not sure if you can help me but hopefully you can point me in the right direction to get answers. 1) What are the requirements to haul High Gravity Condensate in a pressurized trailer in TX, LA, OK andNM? 2) What placard is for High Gravity Condensate? 3) Do Driver's have to complete a special class/have training to haul High Gravity Condensate in? If so, what is the name of the class and where are the classes located? Thank you in advance for any help you can give me! Kathy Harris Safety Director Eastex Crude Company 10907 State Hwy 11 W Leesburg, TX 75451 Office: 903-856-2401 x 163 Cell: 903-285~2140 Fax:903~856-5228 Email: kathy.harris@eastexcrude.com 1 <<>> EnCana Corporation Material Safety Data Sheet Condensate (Sweet) Page I of 2 SECTION 1-MATERIAL IDENTIFICATION AND USE Material Name: CONDENSATE (SWEET) Use: Process stream, fuels production WHMIS Classification: Class B, Div. 2; Class D, Div. 2, Sub-Div. A and B Fire: 4 Reactivity: 0 Health: 3 Inventory No.: TDG: UN: 1267 Class: 3 Packing Group: I (boiling point less than 35 deg. C) II (boiling point 35 deg. C or above; and flash point less than 23 de g. C) Shipping Name: PETROLEUM CRUDE OIL Manufacturer/Supplier: ENCANA CORPORATION #1800, 855-200 Street S.W., P.O. BOX2850 CALGARY, ALBERTA, T2P 2S5 Emergency Telephone: 403-645-3333 Chemical Family: C5+ aliphatic and aromatic hydrocarbons. SECTION 2- HAZARDOUS INGREDIENTS OF MATERIAL Hazardous Approximate C.A.S. LD50/LC50 Ingredients Concentrations(%) Nos. Specify Species & Route Exposure Limits Pentanes n-Hexane Butanes 50-60 35-50 <10 109-66-0 110-54-3 106-97-8 LC50,rat,4 hr,364 g/m3 LD50,rat,oral,28.7 glkg LC50,rat.4 hrs,658 g/m3 600 ppm (OEL,TLV) 50·ppm (OEL,TL V) 1000 ppm (OEL), 1000 ppm (TLV1) Benzene 0.1-1 71-43-2 LD50,rat.oral,930 mglkg 0.5 ppm (OEL), LC50,rat,4 hr,l3200 ppm 0.5 ppm (TLV) OEL = 8 hr. Alberta Occupational Exposure Limit; TL V =Threshold Limit Value (8 hrs) 1 As Aliphatic hydrocarbon gases SECTION 3-PHYSICAL DATA FOR MATERIAL Physical 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 Odou_r & Appearance: colorless/str~w coloured liquid, hydrocarbon odour (N.AV. ==not available N.App. =not applicable) Vapour Pressure (mmHg): 600- 830@ 20 deg. C. Odour Threshold (ppm): N.Av. Evaporation Rate: N.Av. Boiling Pt. (deg.C): 40 Freezing Pt. ( deg.C): -129 to -60 SECTION 4- FIRE AND EXPLOSION Flammability: Yes Conditions: Material will ignite at normal temperatures. Means of Extinction: Foam, C02, dry chemical. Explosive accumulations can build up in areas of poor ventilation. Special Procedures: Use water spray to cool fire-exposed containers, and to disperse vapors if spill has not ignited. If safe, cut off fuel and allow flame to bum out. Flash Point (deg.C) & Method: <-40 (TCC) Upper Explosive Limit(% by vol.): 8 Lower Explosive Limit(% by vol.): 0.6 Auto-Ignition Temp. { deg.C): 223 Sensitivity to Impact: No Sensitivity to Static Discharge: Yes, may ignite TDG Flammability Classification: 3 Hazardous Combustion Products: Carbon monoxide, carbon dioxide SECTION 5-REACTIVITY DATA Chemical Stability: Yes Conditions: Heat Incompatibility: Yes Substances: Oxidizing agents (e.g. chlorine) Reactivity: Yes Conditions: . Heat, strong sunlight Hazardous Decomposition Products: Carbon monoxide, carbon dioxide <<>> Encana Corporation Material Safety Data Sheet Condensate (Sweet) Page 2of2 SECTION 6- TOXICOLOGICAL PROPERTIES OF PRODUCT Routes of Entry: Skin Absorption Yes Skin Contact: Yes (liquid) Eye Contact: Yes Inhalation: Acute: Yes Chronic: Yes Ingestion: Yes Effects of Acute Exposure: Vapour may cause irritation of eyes, nose and throat., dizziness and drowsiness. Contact with skin may cause irritation and possibly dermatitis. Absorbed through intact skin. Contact of liquid with eyes may cause severe irritation and possible damage, Effects of Chronic Exposure: Due to presence of benzene and n-hexane, long term exposure may increase the risk of anaemia, leukaemia and nervous system damage. Sensitization to Product: No. Exposure Limits of Product: 0.5 ppm (Alberta 8 hr OEL for benzene) Irritancy: Yes Synergistic Materials: None reported Carcinogenicity: Yes Reproductive Effects: Possibly Teratogenicity: Possibly Mutagenicity: Possibly SECTION 7-PREVENTIVE MEASURES · Personal Protective Equipment: Use positive pressure self-contained breathing apparatus, supplied air breathing apparatus or cartridge air purifYing respirator approved for organic vapours where concentrations may exceed exposure limits (note: cartridge respirator not suitable for oxygen deficiency or IDLH situations). Gloves: Viton (nitrile adequate for short exposure to liquid) Respiratory: SCBA, SABA or cartridge APR Eye: Splash Goggles Footwear: As per safety policy Clothing: As per fire protection policy Engineering Controls: Use only in well ventilated areas. Mechanical ventilation required in confmed areas. Equipment must be explosion proof. Leaks & Spills: Stop leak if safe to do so. Use appropriate personal protective equipment. Use water spray to cool containers. Remove all ignition sources. Provide explosion-proof clearing ventilation, if possible. Prevent from entering confined spaces. Dyke and pump into containers for recycling or disposal. NotifY appropriate regulatory authorities. Waste Disposal:- Contact regulatory authorities for disposal requirements. Handling Procedures & Equipment: Avoid contact with liquid. Avoid inhalation. Bond and ground all transfers. A void sparking conditions. · Storage Requirements: Store in a cool, dry, well ventilated area away from heat, strong sunlight, and ignition sources. Special Shipping Information: N.App. · SECTION 8-FIRST AID MEASURES Skin: Flush skin with water, removing contaminated clothing. Get medical attention if irritation persists or large area of contact. Decontaminate clothing before re-use. Eye: Immediately flush with large amounts of luke warm water for 15 minutes, lifting upper and lower lids at intervals. Seek medical attention if irritation persists. Inhalation: Ensure own safety. Remove victim to fresh air. Give oxygen, artificial respiration, or CPR if needed. Seek medical attention immediately. Ingestion: Give 2-3 glasses of milk or water to drink. DO NOT INDUCE VOMITING. Keep warm and at rest. Get immediate medical attention. SECTION 9- PREPARATION DATE OF MSDS Prepared By: EnCana Environment, Health and Safety (EHS) Phone Number: (403) 645-2000 Preparation Date: July 1, 2011 Expiry Date: July 1, 2014 <<>> ~The J\dmjn1stration ~1 200 r.Jevv Jersey /\venue: SE Washington, DC 20590 vrww. ohrnsa.dot.oov Safety Alert-- January 2, 2014 Preliminary Guidance from OPERATION CLASSIFICATION The PiDeline and Hazardous i\laterials Safetv Administration (PHMSA) is issuing this safety alert to notify the general public, emergency responders and shippers and carriers that recent derailments and resulting fires indicate that the type of crude oil being transported from the Bakken region may be more flammable than traditional heavy crude oil. Based upon preliminary inspections conducted after recent rail derailments in North Dakota, Alabama and Lac-Megantic, Quebec involving Bakken crude oil, PHMSA is reinforcing the requirement to properly test, characterize, classify, and where appropriate sufficiently degasify hazardous materials prior to and during transportation. This advisory is a follow-up to the PHMSA and Federal Railroad Administration (FRA) joint safetv advisorv published November 20, 2013 [78 FR 69745]. As stated in the November Safety Advisory, it is imperative that offerors properly classify and describe hazardous materials being offered for transportation. 49 CFR 173.22. As part of this process, offerors must ensure that all potential hazards of the materials are properly characterized. Proper characterization will identify properties that could affect the integrity ofthe packaging or present additional hazards, such as corrosivity, sulfur content, and dissolved gas content. These characteristics may also affect classification. PHMSA stresses to offerors the importance of appropriate classification and packing group (PG) assignment of crude oil shipments, whether the shipment is in a cargo tank, rail tank car or other mode of transportation. Emergency responders should remember that light sweet crude oil, such as that coming from the Bakken region, is typically assigned a packing group I or II. The PGs mean that the material's flashpoint is below 73 degrees Fahrenheit and, for packing group I materials, the boiling point is below 95 degrees Fahrenheit. This means the materials pose significant fire risk if released from the package in an accident. As part of ongoing investigative efforts, PHMSA and FRA initiated "Operation Classification," a compliance initiative involving unannounced inspections and testing of crude oil samples to verify that offerors of the materials have been properly classified and describe the hazardous materials. Preliminary testing has focused on the classification and packing group assignments that have been selected and certified by offerors of crude oil. These tests measure some of the inherent chemical properties of the crude oil collected. Nonetheless, the agencies have found it necessary to expand the scope of their testing to measure other factors that would affect the proper characterization and classification of the materials. PHMSA expects to have final test <<>> results in the near future for the gas content, corrosivity, toxicity, flammability and certain other characteristics of the Bakken crude oil, which should more clearly inform the proper characterization ofthe material. "Operation Classification" will be an ongoing effort, and PHMSA will continue to collect samples and measure the characteristics of Bakken crude as well as oil from other locations. Based on initial field observations, PHMSA expanded the scope of lab testing to include other factors that affect proper characterization and classification such as Reid Vapor Pressure, corrosivity, hydrogen sulfide content and composition/concentration of the entrained gases in the material. The results of this expanded testing will further inform shippers and carriers about how to ensure that the materials are known and are properly described, classified, and characterized when being shipped. In addition, understanding any unique hazards of the materials will enable offerors, carriers, first responders, as well as PHMSA and FRA to identify any appropriate mitigating measures that need to be taken to ensure the continued safe transportation of these materials. PHMSA will share the results of these additional tests with interested parties as they become available. PHMSA also reminds offerors that the hazardous materials regulations require offerors of hazardous materials to properly classify and describe the hazardous materials being offered for transportation. 49 CFR 173.22. Accordingly, offerors should not delay completing their own tests while PHMSA collects additional information. For additional information regarding this safety alert, please contact Rick Raksnis, PHMSA Field Services Division, (202) 366-4455 or E-mail: Richard.Raksnis.«dot.!Zov. For general information and assistance regarding the safe transport of hazardous materials, contact PHMSA's Information Center at 1-800-467-4922 or phmsa.hn1-infoc:::nterindor.gov. <<>> UNITED STATES DEPARTMENT OF TRANSPORTATION Petroleum Crude Oil Offerors ) & ) Petroleum Crude Oil Rail Carriers ) Docket No. DOT-OST-2014-0025 AMENDED AND RESTATED E~IERGENt;Y RESTRit;TION /PROHIBITION ORDER On February 25, 2014, the Secretary ofTransportation issued an Emergency Restriction/ Prohibition Order (Original Order) to all persons who offer for transportation, or transport, in tank cars by rail in commerce to, from and within the United States, a bulk quantity of petroleum crude oil (Petroleum Crude Oil Offerors and Rail Carriers). This Amended and Restated Emergency Restriction and Prohibition Order (Amended Order) seeks to clarify the Original Order and supersedes and replaces in its entirety the Original Order. This Amended Order governs shipments of petroleum crude oil offered in transportation, in tank cars by rail, in commerce to, from and within the United States and does not cover other modes of transportation (e.g., motor carrier transportation). The legally binding requirements of this Amended Order are set forth under the "Effective Immediately" and "Remedial Action" sections. The remainder of this Amended Order provides background information and the rationale for the issuance of this Order. This Amended Order constitutes an Emergency Restriction/Prohibition Order by the United States Department of Transportation (DOT) pursuant to 49 U.S.C. § 512l(d). The Amended Order is issued to all persons who offer for transportation, in tank cars by rail, in commerce to, from, and within the United States, UN 1267, Petroleum crude oil, Class 3, PG I, II, <<>> or III, as described by 49 CFR § 172.10 I of the Hazardous Materials Regulations (HMR; 49 CFR Parts 171 to 180). By this Amended Order, DOT is: * requiring persons who offer bulk quantities of petroleum crude oil for transportation in commerce by rail in rail tank cars to ensure that the material is properly tested (conducted with sufficient frequency and quality) and classed in accordance with this Amended Order and theHMR; * requiring persons who offer bulk quantities of petroleum crude oil for transportation in commerce by rail in rail tank cars to treat Class 3 petroleum crude oil as a Packing Group (PG) I or PG II hazardous material only; and *prohibiting persons who ordinarily offer petroleum crude oil for shipment as UN 1267, petroleum crude oil, Class 3, PG I, II, or III from reclassifying such crude oil with the intent to circumvent the requirements of this Amended Order. Upon information derived from recent railroad accidents and subsequent investigations and testing, the Secretary of Transportation has found that violations ofthe Federal Hazmat law (51 U.S.C. §§ 5101, et seq.) or the Hazardous Materials Regulations (HMR) ( 49 CFR Parts 171 to 180), and unsafe practices related to the classification and packaging of petroleum crude oil, are causing or otherwise constitute an imminent hazard to the safe transportation of UN 1267, Petroleum crude oil, Class 3, PG I, II, or III. For more detailed information, see "Background/Basis for Order" below. 2 <<>> EFFECTIVE IMMEDIATELY ANY PERSON IDENTIFIED BY THIS ORDER: 1) Shall ensure that prior to offering bulk quantities of UN 1267, petroleum crude oil, Class 3, into transportation in commerce by rail in tank cars, such petroleum crude oil is properly tested and classed in accordance with the requirements of 49 CFR parts 172 and 173. For purposes of this Amended Order, testing must have been conducted within the reasonable, recent past to determine flash point and boiling point in order to assign a proper PG. 2) Shall ensure that shipments by rail of UN 1267, petroleum crude oil, Class 3, PG III are transported according to the requirements for UN 1267, petroleum crude oil, Class 3, PG I or PG II. PG III materials may continue to be described as PG III for the purposes of hazard communication. 3) Persons who ordinarily offer petroleum crude oil for shipment as UN 1267, petroleum crude oil, Class 3, PG I, II, or III shall not reclassify such crude oil with the intent to circumvent the requirements of this Amended Order. This Amended Order applies to all persons who offer for transportation or transport by rail in commerce to, from and within the United States, petroleum crude oil in tank cars by rail, and their officers, directors, employees, subcontractors, and agents. This Amended Order is effective immediately and remains in effect unless withdrawn in writing by the Secretary, or until it otherwise expires by operation of regulation and/or law. Jurisdiction The Secretary of Transportation has the authority to regulate the transportation of petroleum crude oil in commerce. 49 U.S.C. § 5103(b). The Secretary ofTransportation has designated UN 1267, petroleum crude oil, Class 3, Packing Group I, II, or III, as a hazardous material subject to the requirements ofthe HMR. 49 U.S.C. § 512l(d); 49 U.S.C. § 5103(a). Persons who offer for transportation, or transport, petroleum products (i.e., petroleum crude oil) in 3 <<>> commerce to, from and within the United States are "persons," as defined by 49 U.S.C. § 51 02(9), in addition to being "persons" under 1 U.S.C. § 1 and 49 CFR § 171.8. "Commerce" is as defined by 49 U.S.C. § 5102(1) and 49 CFR § 171.8, and "transportation" or "transport" are as defined by 49 U.S.C. § 5102(13) and 49 CFR 171.8. A "railroad" is as defined by49 CFR § 171.8. A "train" is as defined by 49 CFR § 171.8. Accordingly, persons who offer for transportation or transport petroleum crude oil in commerce, including by rail, are subject to the authority and jurisdiction of the Secretary, including the authority to impose emergency restrictions, prohibitions, recalls, or out-of-service orders, without notice or an opportunity for hearing, to the extent necessary to abate the imminent hazard. 49 U.S.C. § 5121(d). Background/Basis for Order An imminent hazard, as defined by 49 U.S.C. § 51 02(5), constitutes the existence of a condition relating to hazardous materials that presents a substantial likelihood that death, serious illness, severe personal injury, or a substantial endangerment to health, property, or the environment may occur before the reasonably foreseeable completion date of a fonnal proceeding begun to lessen the risk that death, illness, injury or endangerment may occur. Misclassification is one of the most dangerous mistakes to be made when dealing with hazardous materials because proper classification is the critical first step in determining how to package, handle, communicate about, and safely transport hazardous materials. Misclassification may indicate larger problems with company management, oversight, and quality control. Petroleum crude oil may contain dissolved gases or other unanticipated hazardous constituents, may exhibit corrosive properties and also may exhibit toxic properties. Additionally, the flammability of petroleum crude oil being shipped by bulk rail poses a significant risk of substantial endangerment to health, property, or the environment when an explosion occurs. 4 <<>> In light of continued dangers associated with petroleum crude oil shipments by rait the actions described in this Amended Order are necessary to eliminate unsafe conditions and practices that create an imminent hazard to public health and safety and the environment. A. Recent Crude Oil Incidents The United States has experienced a dramatic growth in the quantity of petroleum crude oil being shipped by rail in recent years. The growth has largely been spurred by developments in North Dakota, where the Bakken formation in the Williston Basin has become a major source for oil production in the United States. Much of the Bakken petroleum crude oil is shipped via rail to refineries located near the U.S. Gulf Coast or to pipeline connections, primarily located in Oklahoma.' Shipping hazardous materials is inherently dangerous. Transporting petroleum crude oil can be problematic if released into the environment because it both is flammable and causes oil spills. This risk of flammability is compounded in the context of rail transportation because petroleum crude oil is commonly shipped in bulk quantities on large unit trains. With the rising demand for rail carriage of hazardous materials, occasioned by the current demand for petroleum crude oif throughout the United States, the risk of rail incidents increases. Several accidents since last summer, which caused deaths, injuries and significant property damage, have demonstrated the need for emergency action to address unsafe practices in the shipment of petroleum crude oil by rail. The shipments are an imminent hazard when Packing Group I or Packing Group II petroleum crude oil is misclassified as Packing Group III, which could lead to an improper package being used to transport the misclassified hazardous material. 1 See AAR's December 2013 paper "Moving Petroleum crude oil by Rail", available online at: https://www.aar.org/keyissues/Documents/Background-Papers/Crude-oil-by-rail.pdf. 2 In 2011 there were 65,751 originations of tank car loads of crude oiL In 2012, there were 233,811 originations. Association of American Railroads, lvfoving Crude Petroleum by Rail, https://www.aar.org/keyissues/Documents/Background- Papers!Moving%20Crude%20Petroleum%20by%20Rail%2020 12-12-1 O.pdf (December 20 12). 5 <<>> Most recently, on December 30, 2013, a westbound grain train derailed 13 cars near Casselton, North Dakota, 3 fouling main track 2. Simultaneously, an eastbound petroleum crude oil unit train was operating on main track 2. The petroleum crude oil unit train reduced its speed and collided with the derailed car that was fouling main track 2, resulting in the derailment of the head-end locomotives and the first 21 cars of the petroleum crude oil unit train. Eighteen of the 21 derailed tank cars ruptured, and an estimated 400,000 gallons of crude was released. The ruptured tank cars ignited causing an explosion. Approximately 1,400 people were evacuated. Damages from the derailment have been estimated at $8 million. 4 On November 8, 2013, a 90-car petroleum crude oil train derailed in a rural area near Aliceville, Alabama. The petroleum crude oil shipment had originated in North Dakota, and was bound for Walnut Hill, Florida, to be transported by a regional pipeline to a refinery in Saraland, Alabama. More than 20 cars derailed and the petroleum crude oil of at least 11 cars ignited resulting in an explosion and fire. Although there were no reported injuries, an undetermined amount of petroleum crude oil escaped from derailed cars fouling a wetlands area near the derailment site, and the costs are estimated at $3.9 million. On July 6, 2013, a catastrophic railroad accident involving a U.S. railroad company occurred in Lac-Megantic, Quebec, Canada, when an unattended freight train transporting crude oil rolled down a descending grade and subsequently derailed. 5 The derailment resulted in multiple explosions and subsequent fires, which caused the confirmed death of forty-two people and presumed death of five more, extensive damage to the town center and the evacuation of 3 This derailment currently is being investigated by the National Transportation Safety Board (NTSB), and information regarding this incident can be found at the NTSB website. See http:/ /www.ntsb.gov/doclib/reports/20 14/Casselton _ ND _Preliminary. pdf. 4 Federal Rail Administration 5 This derailment currently is being investigated by the Transportation Safety Board of Canada and information regarding this incident can be found at the TSB website. See http://www.bst-tsb.gc.ca!eng/enquetes-investigations/rail/2013/Rl3D0054/Rl3D0054.asp 6 <<>> approximately 2,000 people from the surrounding area. Preliminary estimates of costs exceed over $1 billion. B. DOT Actions to Increase Safety of Petroleum Crude Oil Shipments In the wake of these and other events, the Pipeline and Hazardous Materials Safety Administration (PHMSA) and the Federal Railroad Administration (FRA) have taken a number of steps to increase the safety of petroleum crude oil shipments by rail. Following the Lac-Megantic derailment, on August 7, 2013, FRA issued Emergency Order No. 28 (EO 28), establishing securement requirements for certain unattended trains and rail equipment, including petroleum crude oil unit trains. EO 28 remains in effect until further notice by FRA. In addition, on August 7, 2013, PHMSA and FRA issued Safety Advisory 2013-06, which made a number of safety- related recommendations to railroads and hazardous materials offerors operating in the United States, including the recommendation that offerors evaluate their processes to ensure that hazardous materials are properly classed and described in accordance with the HMR, and the recommendation that offerors and carriers conduct reviews of their safety and security plans. On August 27-28, 2013, FRA and PHMSA held a public meeting with industry stakeholders to solicit input on a comprehensive review of safety regulations contained in 49 CPR Part 174 applicable to the safe transportation of hazardous materials by rail. PHMSA and FRA are collaborating to address comments received at the public meeting. On August 29,2013, FRA convened an emergency session of the Railroad Safety Advisory Committee (RSAC). RSAC is a group composed of railroad industry, labor, and governmental representatives who develop recommendations on new regulatory standards and other rail safety programs. During the emergency meeting, RSAC established three collaborative working groups to formulate new rulemaking recommendations regarding hazardous materials 7 <<>> transportation by rail, appropriate train crew sizes, and train securement procedures. Each of these working groups has been meeting on a regular basis and each working group is expected to produce formal recommendations for consideration on or before April2014. On September 6, 2013, PHMSA issued an Advanced Notice of Proposed Rulemaking (ANPRM) ((HM-251 ); 78 Fed. Reg. 54849) to solicit comments on petitions for rulemaking and National Transportation Safety Board (NTSB) recommendations related to rail hazmat safety, including regulations regarding operational practices and DOT specification tank cars, most commonly used to move crude oil by rail. The comment period closed on December 5, 2013, and PHMSA received 135 comments representing over 150,000 stakeholders. The Department is actively working on developing a regulatory proposal. PHMSA and FRA issued a supplementary safety advisory, Safety Advisory 2013-07, on November 20, 2013, to emphasize the importance of proper characterization, classification, and selection of a packing group for Class 3 materials (flammable liquids, including petroleum crude oil), and to reinforce the need to follow the Federal hazardous materials regulations for safety and security planning. On January 2, 2014, PHMSA issued a Safety Alert, which warned of crude oil variability and emphasized that unprocessed crude oil may affect the integrity of packaging or present additional hazards related to corrosivity, sulfur content, and dissolved gas content. On January 16, 2014, the Secretary of Transportation met with members of the rail and the petroleum industries in a Call to Action to address the risks associated with the transportation of crude oil by rail. As a result, railroads recently committed to voluntary actions to enhance the safety of crude oil transportation by rail, including implementing speed restrictions, increasing rail and mechanical inspections, and other safety-enhancing measures. 8 <<>> Notwithstanding the above DOT actions, in light of continued risks associated with petroleum crude oil shipments by rail, the further action described in this Amended Order is necessary to eliminate unsafe conditions and practices related to the classification and packaging of petroleum crude oil that create an imminent hazard to public health and safety and the environment. C. Classification and Packaging of Petroleum Crude Oil The proper classification and characterization of a hazardous material is critical and required under the HMR by Parts 171, 172 and 173, as it dictates additional requirements, such as operational controls, emergency response, and proper packaging selection. The HMR is essential for safe transportation. The classification requirements in the HMR dictate the appropriate and authorized selection of packaging, fill densities and outage; accompanying hazard communications (markings, labels and placards); transportation safety and operational controls; and safety and security planning. Not only can properly classified shipments mitigate injury and damage when accidents occur, they are necessary to enable the most effective and informed emergency response. Indeed, the accurate classification of hazardous materials in transportation can protect the safety of emergency responders and others who may come into contact with the material. Proper classification and characterization is especially important when dealing with an organic material such as mined liquids and gases, as these materials have variable characteristics, unlike manufactured products, which are generally consistent. Moreover, crude oil transported by rail often derives from different sources and is then blended, further enhancing the potential range of appropriate classifications. It is the offeror's responsibility to properly classify and describe the hazardous material in accordance with parts 172 and 173 of the HMR. See§§ 171.1 and 171.2 and 173.22. When a 9 <<>> single material meets more than one hazard class, the shipper must select the proper shipping name based on the hazard precedence table in§ 173.2a. Once an offeror has determined the hazard class of the material, the offeror must select the most appropriate proper shipping name from the HMR. As with other hazardous materials, an offeror of petroleum crude oil must determine all hazardous constituents in order to properly classify and package the petroleum crude oil under the HMR. For offerors without sufficient knowledge to classify their petroleum crude oil, in addition to the tests required by this Amended Order, testing to characterize and classify the hazardous materials necessary to comply with the HMR may include, but is not limited to, percentage presence of flammable gases; vapor pressure; presence, concentration and content of compounds such as sulfur/hydrogen sulfide; and corrosivity. With regard to package selection, the HMR requires at § 173 .24(b) that each package used for the shipment of hazardous materials shall be designed, constructed, maintained, filled, its contents so limited, and closed, so that under conditions normally incident to transportation there will be no identifiable (without the use of instruments) release of hazardous materials to the environment, and further requires that the effectiveness of the package will not be substantially reduced. Under this requirement, offerors must consider how the properties of the material, including temperature and pressure, may affect the packaging. PHMSA and FRA issued a supplementary safety advisory, Safety Advisory 2013-07, on November 20,2013, to emphasize the importance of proper characterization, classification, and selection of a packing group for Class 3 materials, and to reinforce the need to follow the Federal hazardous materials regulations for safety and security planning. In addition, PHMSA and FRA initiated Operation Classification in August 2013, which involves unannounced inspections requesting samples of the transported pet - **truncated:** true - **body characters:** 56790