Guidanceguidance
15-0175
Mr. Elliot Apland — Hazardous Materials Safety Interpretation
Current as of source date Government source
RegulusPipeline researchRegulusPipeline research15-0175
Page 1U.S. Department of Transportation Pipeline and. Hazardous Materials Safety Administration 1200 New Jersey Avenue, SE Washington, D.C. 20590 FEB 2 4 2016 Mr. Elliot Apland Crude Oil Sales Representative 455 N. Poplar P.O. Drawer 2360 Casper, WY 82601 Reference No. 15-0175 Dear Mr. Apland: This responds to your August 17, 2015 email requesting clarification of the Hazardous Materials Regulations (HMR; 49 CFR Parts 171-180). Specifically, you provide a sample bill oflading (BOL) for a crude oil rail shipment and outline the roles of several parties involved in the shipment. You state in your email that Company A owns the crude oil and railcars. Company C owns the crude oil loading unit train terminal in Wyoming. Company C has a contractor, Contractor 1, who provides moving and loading services at the loading terminal. Contractor 1 arranges for Company A's crude to be loaded into Company A's railcars and prepares the railcars for shipment, including preparing shipping papers. Contractor 1 signs the certification indicating everything was done in accordance with the regulations. You ask if the Pipeline and Hazardous Materials Safety Administration (PHMSA) takes exception with listing Company A as the shipper on the BOL. The answer is no. Company A may be listed as the shipper on the BOL. Under the HMR, any person performing functions of an offeror, as defined in§ 171.8, must take responsibili.ty for performing those functions in accordance with the applicable requirements. Based on your description, Contractor 1, at the direction of or through contractual arrangement with Company C, performs offeror (shipper) functions, such as preparing the railcars for shipment#
Page 22 and signing the certification. Listing Company A as the shipper on the BOL does not necessarily relieve Contractor 1 or Company C of its offeror responsibilities. The degree of regulatory liability is usually determined on a case-by-case basis and is dependent on the facts of the specific situation. I hope this satisfies your inquiry. Please feel free to contact us if you need further assistance. Sincerely, ~--;----~) l.i·a;,-~JL- /:-(. ·1::~ / . ______ _,,,.,, . . r----·-·-·il ,-(( Duane Pfund y \ International Standards Coordinator Office of Standards and Rulemaking#
Page 3Goodall, Shante CTR (PHMSA) From: Foster, Glenn (PHMSA) Sent: To: Cc: Subject: Monday, August 17, 2015 10:21 AM Wolsey, Shawn (PHMSA); Betts, Charles (PHMSA) Dodd, Alice (PHMSA); Goodall, Shante CTR (PHMSA) RE: "Shipper" question information 8-13-15 Hello Shawn. Not a problem. I will have the inquiry below checked in as a request for interpretation. Thanks, Glenn -----Original Message----- From: Wolsey, Shawn (PHMSA) Sent: Monday, August 17, 2015 10:19 AM To: Betts, Charles (PHMSA) Cc: Foster, Glenn (PHMSA) Subject: FW: "Shipper" question information 8-13-15 Good morning Gentlemen, Could you set this in to have an interpretation drafted? Thanks, Shawn Shawn C. Wolsey Division 1200 New Jersey Avenue, SE., PHC-10, Room E24-320 Washington, D.C. 20590 {202) 366-0299 (Phone) (202) 366-7041 (Fax) Pipeline and Hazardous Materials Safety Administration Senior Attorney-Advisor Hazardous Materials Safety Law This transmission may contain material that is confidential, privileged, and/or attorney work product for the sole use of the intended recipient. Any review, reliance, or distribution by others or forwarding without express permission is strictly prohibited. Public availability is to be determined pursuant to the Freedom of Information Act, 5 USC 552. -----Original Message----- F ro m : E Iii ot Ap I and LC"-'-·"·c.;.=""'···"''·" '·"-'"'''-"'-'.::::C' .. O.:·:C.'-~'-""·'·'": "'-"'"'''-'·'"-'''--'·'·-" Sent: Thursday, August 13, 2015 3:26 PM To: Wolsey, Shawn (PHMSA) Subject: "Shipper" question information 8-13-15 1#
Page 4Shawn, Please see the below updated question/attachment for the standards group. Thank you for your time again today. Elliot Attached is a sample BOL outlining the parties I will be discussing. COMPANY Cowns a crude loading unit train terminal in Wyoming. COMPANY Chas a contractor, CONTRACTOR 1, who provides the train moving and railcar loading services at the loading terminal. In the case of this sample BOL, we are working with COMPANY A on this particular train. COMPANY C arranges for COMPANY A's oil to be transported into one of the rail facility's loading tanks via pipeline (no trucks involved). COMPANY A owns the oil throughout the entire scenario. COMPANY Chas a lab(s) that carries out our quality testing and classification program and that information is shared with CONTRACTOR 1. COMPANY A schedules their railcars with BNSF Railway to arrive at the facility to be filled with their crude oil. Once the train arrives, CONTRACTOR 1 arranges for COMPANY A's crude to be moved from the loading tank to the loading rack and into COMPANY A's railcars. CONTRACTOR 1 secures the railcars and gets it ready for shipment. CONTRACTOR 1 prepares the shipping papers. COMPANY A has provided the emergency response numbers to COMPANY C and COMPANY Chas passed that to CONTRACTOR 1 in order to put on shipping paper. CONTRACTOR 1 and COMPANY A review the shipping paper to verify compliance. CONTRACTOR 1 manager (Anthony Fike) signs the certification indicating everything was done according to regulations. As you can see on the BOL, COMPANY A is listed as the Shipper/Consignee, Care Of Party is COMPANY B (destination), Third Party payer of freight is COMPANY C, shipped from the Account Of CONTRACTOR 1, and Ship From COMPANY C. Based on the above information, does PHMSA take any exception to the BOL and specifically any exception to who is listed as the Shipper? Any other comments/Questions? Thanks for your time, Elliot Elliot Apland Crude Oil Sales Representative 455 N Poplar PO Drawer 2360 Casper, WY 82601 307-266-0426 office 303-990-0730 mobile 2#
Page 5Consignee COMPANY A MONTREAL PQ HlB5B4 3500 BROADWAY Care Of COMPANY B EAST.MONTREAL PQ HlB 5B4 3500 BROADWAY Third Party Pay COMPANY C CASPER WY 82602 455 N POPLAR ST Account of CONTRACTER 1 CLARKS NE Canadian customs BrokerCHARTER CANADA BROKERAGE CALGARY AB T2P 3N3 140-4TH AVENUE SW SUITE 2610 Ship From COMPANY C FT LARAMIE WY 82212 Origin: FT LARAMIE WY Destination: MONTREAL PQ Sec 7 (YIN): No Freight Charges: "To Be Prepaid" Prepared by: Phone Number: ANTHONY FIKE 307-701-0057 Patron Code: Route: BNSF CHGO CN Origin Switch Road: Junction: Rule 11 (YIN): No Contract(s) #: PETROL 4910191 Loaded 100 US Census Exemption Number: NDR 3036 Delivery Switch Road: Tank Car No Weights Estimated Weights 18,992,400 Pounds HAZARDOUS MATERIALS 100Tank II 30,450 Gallon UN1267 II PETROLEUM CRUDE OIL 3 II PG I ERP 2-1933-029 TEL 403-296-3000 24 EMERGENCY CONTACT LPGERC 800-265-0212 EMERGENCY CONTACT : 403-296-3000 SHIPPER CONTACT : COMPANY A HAZMAT STCC = 4910191 This is to certify that the above-named materials are properly classified, described, packaged, marked and labeled, and are in proper condition for transportation according to the applicable regulations of the department of transportation. ANTHONY FIKE - CONTRACTER 1 BNSFC 310038-XXX BNSFC 310039 BNSFC 310207 INIT NUMBER WEIGHT CTCX 743837 189924 CTCX 743842 189924 CTCX 743848 189924 CTCX 743841 189924 CTCX 743839 189924 CTCX 743665 189924 CTCX 743546 189924 CTCX 743651 189924 CTCX 743642 189924 CTCX 743654 189924 CTCX 743561 189924 CTCX 743551 189924 CTCX 743570 189924 CTCX 743845 189924 CTCX 743823 189924 CTCX 743815 189924 CTCX 743818 189924 CTCX 743826 189924 SEALS DUNNAGE REFERENCE 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0#
Page 6BILL OF LADING Shipper COMPANY A Consignee COMPANY A 3500 BROADWAY Care Of COMPANY B 3500 BROADWAY Third Party Pay COMPANY C 455 N POPLAR ST Account of CONTRACTOR 1 Canadian customs BrokerCN CUSTOMS BROKERAGE SERVICES 5B6 FT LARAMIE MONTREAL EAST MONTREAL CASPER CLARKS MISSISSAUGA 55 DEVON ROAD Ship From COMPANY C FT LARAMIE Origin: FT LARAMIE 'WY Prepared by: Destination: MONTREAL PQ Phone Number: Sec 7 (YIN): No Freight Charges: "To Be Prepaid" Patron Code: ANTHONY FIKE 307-701-0057 Route: BNSF CHGO CN Origin Switch Road: Junction: Delivery Switch Road: Rule 11 (Y/N): No Contract(s) #: SAND, INDUSTRIAL 1441310 Loaded 2 Tank Car No Weights US Census Exemption Number: NDR 3036 'WY PQ HlB5B4 PQ HlB 5B4 'WY 82602 NE ON L6T 'WY 82212 Estimated Weights 160,000 Pounds Buff er Car BNSFC 310038-XXX BNSFC 310039 BNSFC 310207 INIT NUMBER WEIGHT SEALS BNSF 808651 80000 BNSF 808046 80000 DUNNAGE REFERENCE 0 0 BILL OF LADING Shipper COMPANY A FT LARAMIE 'WY#
Page 7CTCX 743809 189924 0 CTCX 743830 189924 0 CTCX 743554 189924 0 CTCX 743537 189.924 0 CTCX 743587 189924 0 CTCX 743618 189924 0 CTCX 743609 189924 0 CTCX 743535 189924 0 CTCX 743553 189924 0 CTCX 743584 189924 0 CTCX 743616 189924 0 CTCX 743731 189924 0 CTCX 717799 189924 0 CTCX 717790 189924 0 CTCX 717789 189924 0 CTCX 717786 189924 0 CTCX 717820 189924 0 CTCX 71 7838 189924 0 CTCX 743849 189924 0 CTCX 743822 189924 0 CTCX 743851 189924 0 CTCX 743850 189924 0 CTCX 743816 189924 0 CTCX 743811 189924 0 CTCX 743805 189924 0 CTCX 743835 189924 0 CTCX 743840 189924 0 CTCX 743847 189924 0 CTCX 743810 189924 0 CTCX 743844 189924 0 CTCX 743843 189924 0 CTCX 743578 189924 0 CTCX 743573 189924 0 CTCX 743657 189924 0 CTCX 743704 189924 0 CTCX 743824 189924 0 CTCX 743586 189924 0 CTCX 743681 189924 0 CTCX 743743 189924 0 CTCX 743729 189924 0 CTCX 743679 189924 0 CTCX 743685 189924 0 CTCX 743694 189924 0 CTCX 743608 189924 0 CTCX 743838 189924 0 CTCX 743853 189924 0 CTCX 743846 189924 0 CTCX 743832 189924 0 CTCX 743648 189924 0 CTCX 743624 189924 0 CTCX 743619 189924 0 CTCX 743814 189924 0 CTCX 743638 189924 0 CTCX 743747 189924 0 CTCX 743775 189924 0 CTCX 743773 189924 0 CTCX 743622 189924 0 CTCX 743735 189924 0 CTCX 743688 189924 0 CTCX 743650 189924 0 CTCX 743819 189924 0 CTCX 743821 189924 0 CTCX 71 7061 189924 0 CTCX 743854 189924 0 CTCX 743827 189924 0 CTCX 743831 189924 0 CTCX 743727 189924 0 CTCX 743567 189924 0 CTCX 743531 189924 0 CTCX 743598 189924 0 CTCX 743568 189924 0 CTCX 717926 189924 0 CTCX 743799 189924 0 CTCX 743655 189924 0 CTCX 743658 189924 0#
Page 8CTCX 743701 189924 0 CTCX 743751 189924 0 CTCX 743607 189924 0 CTCX 743852 189924 0 CTCX 743817 189924 0 CTCX 743833 189924 0 CTCX 743836 189924 0#
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