{"operation":"document","citation":"15-0147","title":"Argus Petroleum Transportation North America — Hazardous Materials Safety Interpretation","source_type":"guidance","agency":"Pipeline and Hazardous Materials Safety Administration","status":"guidance","official":true,"published_on":"2015-10-06","effective_on":null,"summary":"15-0147 response to Argus Petroleum Transportation North America concerning 173.41.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-interpretation-15-0147.json","markdown":"https://regulus.evalyn.ai/document/phmsa-interpretation-15-0147.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-interpretation-15-0147","source_url":"https://www.phmsa.dot.gov/sites/phmsa.dot.gov/files/legacy/interpretations/Interpretation%20Files/2015/150147.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\nOCT 0 6 2015\nMr. Mark Babineck\nEditor\nArgus Petroleum Transportation North America\n2929 Allen Parkway, Suite 700\nHouston, Texas 77019\nReference No. 15-0147\nDear Mr. Babinek:\nThis is in response to your July 14, 2015 letter requesting clarification of the Hazardous\nMaterials Regulations (HMR; 49 CFR Parts 171-180) applicable to the requirements for\nunrefined petroleum-based products. Specifically, you ask whether \"stabilized condensates that\nqualify for export under Bureau of Industry and Security rules\" meet the definition of an\n\"unrefined petroleum-based product\" and are therefore subject to the sampling and testing\nrequirements as specified in new § 173.41. This new section was added under a final rule\nentitled \"Hazardous Materials: Enhanced Tank Car Standards and Operational Controls for\nHigh-Hazard Flammable Trains,\" and published on May 8, 2015 [80 FR 26644].\nFor the purposes of the HMR, the term, \"unrefined petroleum-based products\" would be any\nmaterial that is petroleum based, and has not undergone refinement. Condensates refer to a wide\nrange of products, and may include products from the treatment of crude oil for transportation or\na product of refinement. In order to determine whether condensate meets the definition of an\nunrefined petroleum-based product, information about the specific processing and treatment of\nmaterial prior to transportation is necessary. Heat treating to reduce vapor pressure or to remove\nthe dissolved gasses in crude oil so that it may be transported for refinement would not meet the\nAmerican Fuel & Petrochemical Manufacturers (AFPM) or other industry definitions of\nrefining. However, AFPM includes the heating and separation of hot gasses through a\ndistillation column as a refinement process.\nThe Department of Commerce (DOC) Bureau of Industry and Security (BIS) regulations for the\nexport of petroleum products do not provide a definition for \"stabilized condensates.\" Under 15\n. CFR 754.2(a) of the BIS requirements, condensate which has \"been processed through a crude\noil distillation tower\" may be considered a \"petroleum product\" and therefore subject to fewer\nexport provisions.\n\n<<<PAGE 2>>>\n\nThese materials would be considered \"refined\" for the purposes of the HMR, and would not be\nsubject to the requirements of§ 173.41 for \"unrefined\" products.\nI hope this satisfies your request.\nSincerely,\n-\n~~~-vo6d;;_\nT. Glenn Foster\nChief, Regulatory Review and Reinvention Branch\nStandards and Rulemaking Division\n\n<<<PAGE 3>>>\n\nDodd, Alice (PHMSA)\nFrom:\nSent:\nTo:\nGeller, Shelby CTR (PHMSA)\nTuesday, July 14, 2015 12:45 PM\nHazmat Interps\nSubject: FW: HMR intepretation request\nDear Shante and Alice,\nForwarded is a request for a formal letter of interpretation. Jordan spoke with Victoria Lehman in regards to this\nrequest for a formal letter.\nThanks,\nShelby\nFrom: Mark Babineck [mailto:mark.babineck@argusmedia.com]\nSent: Friday, July 10, 2015 2:24 PM\nTo: INFOCNTR (PHMSA)\nSubject: HMR intepretation request\nStandards and Rulemaking Division\nPipeline and Hazardous Materials Safety Administration\nAttn: PHH-10\nUS Department of Transportation, East Building\n1200 New Jersey Ave. SE\nWashington, DC 20590-0001\nTo whom it may concern:\nI am seeking clarification on PHMSA's 1 May tank car standard rulemaking, Docket No. PHMSA-2012-0082 (HM-251).\nSpecifically I'm looking for clarification on this line, found on page 226:\nSpecifying \"unrefined petroleum-based products\" refers to hazardous hydrocarbons that are extracted from the earth\nand have not yet been refined. This includes petroleum-based liquid and gas wastes and byproducts, such as\ncondensates, which exhibit variability.\nDoes \"condensates\" in this instance include stabilized condensates that qualify for export under Bureau of Industry and\nSecurity rules? That agency has determined those liquids to be refined products, with predictable characteristics, and\nnot analogous to crude.\nThank you,\nMark Babineck\nEditor\nArgus Petroleum Transportation North America\nwww.argusmedia.com\nDirect + 1 713 429 6335\nEmail: mark.babineck@argusmedia.com\n1\n\n<<<PAGE 4>>>\n\nTel + 1 713 968 0000\nArgus Media Inc., 2929 Allen Parkway, Suite 700, Houston, Texas 77019, USA\nSTAY CONNECTED:\nThe information contained in this email and its attachments is confidential and may be the subject of legal, professional or other\nprivilege. 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