U.S. Water Services — Hazardous Materials Safety Interpretation

Page 1U.S. Department of Transportation 1200 New Jersey Avenue, SE Washington, D.C. 20590 Pipeline and Hazardous Materials Safety Administration Ms. Lisa L. Neumann Logistics Manager U.S. Water Services FEB 0 8 2016 330 Cleveland St. S Cambridge, MN 55008 Reference No. 15-0158 Dear Ms. Neumann: This responds to your July 29, 2015 email in which you request clarification of the Hazardous Materials Regulations (HMR; 49 CFR Parts 171-180) with regard to the provisions of § 172.202(a)(7). You include a copy of a letter from the Minnesota Department of Transportation citing your company for "incorrectly indicating the type of package on a shipping paper." You also attach copies of the inspection report forms that identify each violation. In accordance with § 172.202(a)(7), the shipping description of a hazardous material on a shipping paper must include the number and type of packages (e.g., "10 cylinders per box" and "5 fiberboard boxes") either before or after the required basic description. In addition, § 172.202(a)(5) requires that, except for bulk packages, cylinders, and packages containing only hazardous material residue, the total quantity, including the unit of measurement of the hazardous materials covered by the description, be included in the shipping papers. Total quantity may be entered as net weight, gross weight, capacity, or as otherwise appropriate. Based on your description of the package (a 55 gallon plastic drum), it is the opinion of this Office that the descriptions, "503LB55 gal drum" and "541LB55 gal drum," would satisfy the requirements of § 172.202(a)(7). However, to avoid potential frustration of shipments, we advise that you include a space between the net quantity of hazardous material and the type of packaging (e.g., "503LB 55 gal drum") on your shipping paper. I trust this satisfies your inquiry. Please feel free to contact us if you need further assistance. Sincerely, Duane A. Rfe Duane A. Pfund International Standards Coordinator Standards and Rulemaking Division#

Page 2Antonielli §172.202 (a) (7) Shipping Papers Dodd, Alice (PHMSA) 15-0158 From: Geller, Shelby CTR (PHMSA) Sent: To: Thursday, July 30, 2015 10:57 AM Hazmat Interps Subject: FW: Request for Interpretation Attachments: SKM_C364e15071511042.pdf Dear Shante and Alice, Please see the below request for a formal letter of interpretation. Ms Neumann spoke with Eamonn Patrick in the HMIC Thanks, Shelby From: Lisa Neumann [mailto:Ineumann@uswaterservices.com] To: PHMSA HM InfoCenter Sent: Wednesday, July 29, 2015 6:36 PM Subject: Request for Interpretation I received the attached violation, but according to section 172.202(a)(7), the requirement is for the number and type of packages. The example provided has "12 drums" and the packaging specification number may be included. Can you please clarify the interpretation of this? Thank you. Lisa L. Neumann Logistics Manager US Water Services 380 Cleveland St. S Cambridge, MN 55008 Direct 763-497-8772 Cell 763-248-4711#

Page 3pen Office of freight and Commercial Vehicle Operations Minnesota Department of Transportation 395 John Ireland Boulevard, M.S. 470 Saint Paul, MN 55155 Date: July 9, 2015 Name: U S Water Services Inc. Address: 330 South Cleveland Street Cambridge, MN 55008 Dear Shipper: During a recent hazardous materials shipment review conducted by one of our inspectors at a motor carrier facility, a shipment originating from your company was found to be in violation of Federal Hazardous Materials Regulation(s) (49CFR 100-177): These regulations were adopted by reference under Minnesota Statutes. Attached are copies of the specific Hazardous Materials inspection report form(s) that identify each violation. An officer from your company must review the attached inspection report forms), certify that the noted Hazardous Material violations were corrected, then sign and return the attached inspection report form(s) by July 30, 2015 • Please return the attached forms) with this cover letter to the address listed above on our letterhead. Your company must also take internal action at this time to ensure future compliance with the applicable Hazardous Materials regulations. If it is deemed necessary, a MnDOT representative may contact you to conduct an on-site review of your hazardous material's programs. There is a return signature block area under the Hazardous materials inspector's signature on each attached Hazardous Materials inspection report form(s). Under each Hazardous Materials inspector's signature, you must do the following: 1. Print your name 2. Sign your name 3. Print the date of your response Please call the MnDOT Hazardous Materials Enforcement Unit at (651) 366-3676 if you have questions concerning any of the violations listed. Thank you. Sincerely, Mike McKay Enforcement Supervisor An Equal Opportunity Employer#

Page 4HAZARDOUS MATERIALS PACKAGE INSPECTION Federal Motor Carrier Safety Administration INSPECTION LOCATION Inspection Date: 05/11/2015 Report Number: NGXL.2015-42362-MN0669 Location: Dock Facility Name: CON-WAY FREIGHT INC Street: 51 81ST AVENUE NE. City: FRIDLEY State: MINNESOTA Zip: 55432 SHIPPER INFORMATION USDOT: 00816626 Shipper Name: US WATER SERVICES INC PHMSA: Enforcement Case: Street Address: 330 SOUTH CLEVELAND STREET City: CAMBRIDGE State: MINNESOTA Zip: 55008 Country: UNITED STATES Phone: SHIPMENT INFORMATION Ship Date: 05/11/2015 Shipping Name: SLSO192030 CORROSIVE LIQUID N.O.S. Shipping Paper#: Shipping Paper Source: Hazard Class: 8 Corrosive Material Shipper Origin City: Destination CAMBRIDGE City: ALEXANDRIA State: MINNESOTA State: MINNESOTA Country: UNITED STATES Country: UNITED STATES UN/NA Nbr: UN1760 Packing Group: III Nbr of Pkgs: 1 Pkg Size: 55 Pkg Type: PLASTIC DRUM Units: GL Pkg Spec#: 1H1 CARRIER INFORMATION Carrier Type: Carrier USDOT: Highway 00241829 Carrier Name: CON-WAY FREIGHT INC PHMSA: Enforcement Case: VIOLATION INFORMATION Section Number: 172.202(a)(7) Nbr Checked: 1 Nbr Discovered: 1 Enforce: No Description: Incorrectly indicating the type of package on shipping paper.#

Page 51 55-gallon plastic drum loose. S.P. had "503lb55 gal drum" in packaging column. NOTES INSPECTOR SIGNATURE Inspector Office: Minnesota inspector U g. Code: FMCSA Inspector Name: Inspector Signature: J. T. James Inspector Number: mn0669 | Company Officer's Nanse (Please Print). Company Ordeer's Signature Cartilylog What The Wolations Voted In This Inspection Notice Mame Buen Comaste#

Page 6STRAIGHT BILL OF LADING FROM: U.S. Water-Cambridge Conway ORDER DATE AT: 330 S. Cleveland St. Driver's signature acknowledges recsipt of freight onty, Re 05/07/15 Cambridge, MN 55008 fions of lazisty det forth in tan! CNNY 199. any, olheroise sublack to the terms, bonditlors and ORDER NO. (see wan.MyContay.com) SLSO192030 S H Arrowwood Resort Conf. Cntr P 2100 Arrowwood Lane Arrowwood Resort Conf. Cntr Alexandria, MN 56308 2100 Arrowwood Lane Alexandria, MN 56308 CUST NO. USER ID SHIP VIA CUSTOMER PO # 11037-000 VDOTEN USW Truck 4/17/2015-RS QUANTITY SHIPPED PACKAGING HM DESCRIPTION NET WEIGHT GROSS CLASS FRT 1 503LB55 gal drum X UN 1760, Corrosive Liquid N.O.S. 503 Ibs 525lbs 8,, PG III (Phosphoric acid, Zinc chioride) cronas-c 3 65) 06860866 Lot/Serial No: Shipper Notes: Non 50227-1 Weights: Total LeO 503Ibs 525lbs Nole-Where the rale is dependent on value, shippers are This is to verify thed the above-named materals sre The agreed or declared valus f the property is hereby property classifled, described, packaged, marked and Sublect to Section 7 of the conditions, if thls shipment is to be delivered to oscidcally stated by the shipper to be not axoceding according to the applicable reguletions of the Dopartmont of Trensportation. labeled and are in proper conditon for transportation following statement: the consignee without recourse on the consignor, the consignor shall sign the FOR CHEMICAL freight and sil other lawful charges. The cares shall not make delivery of this shipment without payment of CALL CHEM-TEL EMERGENCY RECEIVED, subject to the classifications and lawfully filed tariffs in effect on the date of the lesue of this Bli of Lading, tha Signature (Signeture of Consignor) 1-800-255-3924 MIS 0004281 croperty described above in apperent good order, except as noted (contents and condition of contents under the contract) understood throughout this contract as meaning any person or corporation in possession of the property of packages unknown), marked, consigned, and destined as indicaled above which sald carfer (the word canter being any of said proparty, that avery service to be performed hereundor shall be subjecto ail the bill of of, sald property over all or any portion of said route to destination and as to caci party al any time interested in all or lo its usual placa of delivery al sald destination, lE on is route, otherwiso to deliver to lading tens and conditions in the goveming classification on the date of shipment. classificetion and the sald terms and collions are hereby agreed to by the shipper and accopied for himself and his assigns. Slipper hereby certifies that he is famillar with all the bill of loding terms and conditions in the govering SHIPPER CARRIER PLACARDS OFFERED COD Amt:$ 0.00 DRIVER PLEASE INITIAL. PLACARED O USINS NAME OF PLACARD FREIGHT CHARGE TO BE PREPAID Callys TOTAL NO. OF PACKAGES REC'D#

Page 7HAZARDOUS MATERIALS PACKAGE INSPECTION Federal Motor Carrier Safety Administration INSPECTION LOCATION Inspection Date: 05/11/2015 Report Number: NGXL.2015-42361-MN0669 Location: Dock Facility Name: CON-WAY FREIGHT ING Street: 51 81ST AVENUE N.E. City: FRIDLEY State: MINNESOTA Zip: 55432 SHIPPER INFORMATION USDOT: 00816626 Shipper Name: PHMSA: U S WATER SERVICES INC Enforcement Case: Street Address: 330 SOUTH CLEVELAND STREET City: CAMBRIDGE State: MINNESOTA Country: UNITED STATES Zip: 55008 Phone: SHIPMENT INFORMATION Ship Date: 05/11/2015 Shipping Paper#: SLSO191975 Shipping Name: 8 Corrosive Material Shipping Paper Source: CORROSIVE LIQUID N.O.S. Hazard Class: Shipper Origin City: State: CAMBRIDGE MINNESOTA City: Destination State: HANCOCK Country: UNITED STATES Country: MINNESOTA UNITED STATES UN/NA Nbr: UN1760 Packing Group: Ill Nor of Pkgs: 2 Pkg Size: 55 Pkg Type: PLASTIC DRUM Pkg Spec#: 1H1 Units: GL. CARRIER INFORMATION Carrier Type: Carrier USDOT: Highway Carrier Name: 00241829 PHMSA: CON-WAY FREIGHT INC Enforcement Case: VIOLATION INFORMATION Section Number: 172.202(a)(7) Nbr Checked: 1 Nbr Discovered: 1 Enforce: No Description: Incorrectly indicating the type of package on shipping paper.#

Page 82 55-gallon plastic drums loose. S.P. had "541LB55 gal drum" in "packaging" column. NOTES INSPECTOR SIGNATURE Inspector Office: Minnesota inspector Org. Code: FMCSA Inspector Name: Inspector Signature: Inspector Number: mn0669 Company Officer's Name (Please Print) Company Officer's Signsture Carilying Thet The Violations Noted in This napection Notfee Have Been Correctad (Signals) .#

Page 9STRAIGHT BIL OF LANG Conway ORDER DATE FROM U.S. Water-Cambridge 05/07/15 AT 330 S. Cleveland St : Cambridge, MN 55008 352-527948 Conway ORDER NO. SLS0191975 H 17 Atlantic Ave Hancock Concrete Products Inc/MN Hancock Concrete Products Inc/MN Hancock, MN 56244 D 17 Atlantic Ave T Hancock, MN 56244 CUST NO. USER ID SHIP VIA CUSTOMER PO$ 10832-000 VDOTEN Common Carrier Collect on customer's acct 166061 QUANTITY SHIPPED PACKAGING HM DESCRIPTION WEIGHT NET WEIGHT GROSS CLASS FRT 2 541LB55 gal drum X UN 1760, Corrosive Liquid N.O.S. 1,082 Ibs 1,126 Ibs (Pottasium hydroxide) 8,,PG III LoSera -8 278(50658620 Lot/Serial No:_ nmFc 50227-1 Shipper Notes conway acent # HANZDXBD000 OLEISO Total Weights: 1,082 Ibs 1,126 Ibs declared value of the property. Note-Where the rate is dependent on value, shippers are raguired to stata specifically in writing the agread or This Is to verly that the abovo-named materials are specifcally staled by the shipper to be not exceeding. The agreed or declared value f the proporty is hereby according to the applicable regulstions of the xoperty classilled, described, packaged, marked anc Depertment pi abeled and are in ander condition for Irancandatin he consigned without recourse on the consignor, the consignor shall sign the Bubiect lo Section 7 of the conditions. Y this shirment is lo he daliverns to ransportalion. following statamant: FOR CHEMICAL reight and all other lawful charges The carter shall not make delivery of this shipment without payment o CALL CHEM-TEL EMERGENCY RECEIVED, subject to the classificatione and lawfully filed tariffs in effect on the date of the issue of this Bill of Lacing, the _Signature (aignatura of Consignor) 1-800-255-3924 MIS 0004281 property described above In apparent good order, except as notad (contents and condition of contents undarstood troughout this contract as meaning any person or corporation in possession of the property under the contract egrees to carry to Re usual place of delivary at sald destination, If on Its routo, atherwise to deliver to of packages unknown), marked, consigned, and dastined as Indicated above which oald carter the word carter baing lading terms and conditions in the govering classiffcation on the data of shipment. ly of sald property, that every servloe to be perfomed hereunder shall bo sublock to all the bill o , sald property over all or any portion of seld route to destination and as to each party at any fime interested in sil another carler on the route to said destination. it is mutually agreed as to each camar of all or any classiflestion and the said terms and conditions are hereby agroed to by the shipper and accepted for himself and his Shipper hereby cortifies that he is familiar with at the bill of lading terms and condillons in the governing SHIPPER assigns. CARRIER PLACARDS OFFERED COD Amt:$ 0.00 USWS DRIVER PLEASE INITIAL. NAME OF PLAÇARD PLACARED FREIGHT CHARGE Sara AGENT AND S025 s/alis GIOBEPREPAD Collect TOTAL: NO. OF PACKAGES RECD 2. 552o lor from#