GEO Dynamics Inc. — Hazardous Materials Safety Interpretation

Page 1of Transportation U.S. Department 1200 New Jersey Avenue, SE Washington, D.C. 20590 Materials Safety Pipeline and Hazardous Administration AUG 1 8 2016 Mr. Brett T. Lehman Security, Regulatory & Compliance Manager GEODynamics Inc. Engineered Perforating Solutions 10500 West Interstate 20 Millsap, TX 76066 Reference No. 16-0039 Dear Mr. Lehman: This letter is in response to your March 3, 2016, email requesting clarification of the Hazardous Materials Regulations (HMR; 49 CFR Parts 171-180) applicable to an overpack. Your particular scenario involves non-bulk packages of Division 1.4D explosives that are shrink-wrapped together on a warehouse skid. The packages of explosives are covered by § 172.504(e), Table 2, and have an aggregate gross weight over 1,001 Ibs. Specifically, you ask whether the tarpaulin cover required by § 177.835(h) is considered an overpack, as defined in § 171.8, and therefore subject to the provisions of § 173.25. The answer is no. The tarpaulin required by § 177.835(h) is considered environmental protection and is not an overpack. Likewise, if all the required marks and labels are visible on the packages through the shrink-wrapped skid protected by the tarpaulin cover, no further action is necessary. If any of the required marks and labels are not visible on the packages through the shrink-wrap, the shrink-wrapped skid is considered an overpack and is required to be marked and labeled for every shipping description in the overpack as prescribed in § 173.25(a)(2). Further, as prescribed in § 173.25(a)(4), the word "OVERPACK" is only required to be marked on the shrink-wrapped skid if package specification markings, when required, are not visible through the shrink wrap. I hope this information is helpful. Please contact us if we can be of further assistance. Sincerely, T. Glenn Foster Chief, Regulatory Review and Reinvention Branch Standards and Rulemaking Division#

Page 2Stevens 3 / 73.25 Dodd, Alice (PHMSA) Packagung specs From: Foster, Glenn (PHMSA) 16-0039 Sent: Tuesday, March 08, 2016 1:17 PM To: Dodd, Alice (PHMSA); Goodall, Shante CTR (PHMSA) Cc: Stevens, Michael (PHMSA) Subject: Request for Interpretation Letter Attachments: IMG_20160301_135642668.jpg; IMG_20160301_135609117_HDR.jpg; IMG_20160301_ 135625766.jpg; How to UNZIP.html; SecureZIP Attachments.zip Importance: High Alice / Shante, Please have this letter checked in as a request for Interp and assign to Michael Stevens. This letter will serve as his next turn in the rotation of assigning letters. Thanks, Glenn From: Brett Lehman [mailto:Brett.Lehman@perf.com] Sent: Thursday, March 03, 2016 2:15 PM To: Foster, Glenn (PHMSA) Subject: Request for Interpretation Letter Importance: High Mr. Glenn Foster, We are requesting an Interpretation Letter for the below: We had a level 2 roadside conducted on March 1" with one of my driver's in Midland, TX. The trooper cited my driver for not properly marking an OVER-PACK. However, I don't agree that this would be considered OVER-PACK. So the trooper is saying that they TARP is considered an OVER-PACK... He didn't remove the tarp to see that the boxes on the pallet were shrink wrapped and that you could clearly see all markings through the shrink wrap on the charge boxes. You can see in the pictures; we are completely placard. We have NEVER had to label OVER-PACK on the shrink wrap. I'm thinking, the way the tarp is wrapped around the charges, the trooper is considering this as an "OVER-PACK" but that's incorrect. The tarp is required by DOT to protect from weather, etc. We are required to see a Judge in April and I want to provide the Judge with an Interpretation letter to help us fight this citation. The cite below clearly states that when a tarp is used placards are required, not "overpack." Even when using shrink wrap if the markings and labels are visible through the wrap you don't have to remark or label the exterior. The tarp is a required cover from the elements not an overpack because the tarp doesn't stay with the product once unloaded like an overpack does. All you need is a placard. 177.835(b) Class 1 materials (1) Whenever tarpaulins are used for covering Class 1 (explosive) materials, they shall be secured by means of rope, wire, or other equally efficient tie downs. Class 1 (explosive) materials placards or markings required by §177.823 shall be secured, in the appropriate locations, directly to the equipment transporting the Class 1 (explosive) materials. If the vehicle is provided with placard boards, the placards must be applied to these boards.#

Page 3§177.823 Movement of motor vehicles in emergency situations. (a) A carrier may not move a transport vehicle containing a hazardous material unless the vehicle is marked and placarded in accordance with part 172 or as authorized in §171.12a of this subchapter §173.25 Authorized packagings and overpacks (2) The overpack is marked with the proper shipping name and identification number, when applicable, and is labeled as required by this subchapter for each hazardous material contained therein, unless marking and labels representative of each hazardous material in the overpack are visible. §177.835 Class 1 materials (h).......Class 1 (explosive) materials other than black powder may be transported on flat-bed vehicles if the explosive portion of the load on each vehicle is packed in fire and water resistant containers or covered with a fire and water resistant tarpaulin. This information was also provided by Ernest G Quail - Hazardous Materials Investigator - Field Operations & Enforcement, Southern Region BRETT T LEHMAN Security, Regulatory & Compliance Manager GEl Dynamics Engineered Perforating Solutions 10500 West Interstate 20 Millsap, TX 76066 [C] +1.817.229.4717 [0] +1.817.341.5341 www.pert.com addressed. If you are not the intended recipient. be advised that any dissemination, distribution or copying of this communication is prohibited. It This e-mail communication is privileged and may contain confidential information intended only for the use of the individual to whom it was you received this message in error, please contact the sender and delete it from your computer. 2#

Page 4FBR-7014 TEXAS EXPLOSIVES 1.4#

Page 51 Tan Cono D FBR+7014 EXPLOSIVES TEXAS 14#

Page 6USDOT 1983250#

Page 7Incar CVE-3(c88) TXDPS COMMERCIAL VEHICLE ENFORCEMENT Level TX4K0D0VBUQ4 COUNTY: MIDLAND DATE: 2016-03-01 12:56 CP# 0799750 OWNER: GEODYNAMICS INC HWY: FM-1788 MP-324 in MIDLAND co. NOTE TO MOTOR CARRIER: TRC Chapter 644 requires the Motor Carrier to Addr: 10500 WEST INTERSTATE 20 MILLSAP, IX 76066 execute the certification at the end and return this report to Texas Department 78773-0001 within fifteen (15) days of Public Safety, Motor Carrier Safety Section, PO Box 4087, Austin, Texas 18175341-5300 983251 ICC/MC#: DL# 06646464 DMV: OPERATOR: ADAGBON Address: 2512 REDFIELD DR 22386581 SUNDAY TAN MORA MESQUITE; TX 75181-0000 CLASS: A NOTE TO DRIVER: This report must'be furnished to the motor carrier whose RACE/SEX: BM DOB:1965-11-28 MED CARD: 05/18/2016 name appears on this report. B ACCIDENT ACCIDENT •TES CONSTRUCTION SONE UNIT TYPEMAKE COI M NO OCCUPIED • ALCH O TR CHEV 3127 FBR7014 PLARE: (ST/VTH SW TE DS TX 1GB4KYC86FF163127 Axles: X RG WT #1/13200 RG NT #2 GWR #1 13200 VIOLATIONS DISCOVERED 3VWR #2 TICKET VIOL. CITE # Unit#| 605 DISP bos POST Yes 172.400 (a) ACC FAD TO PABLOCKAGE/CONTAINER OF HM (FMCSR 172.400(a)) 172.602 (c) (1) MAN TENANTED CENTENSE INFORMATION (EMOSR 172.602(0) 173.25 (a) FAN ON OVERFACKVERPACK CONDITIONS (FMCSR 173.25(a)) - MISSING UN# / 173.25 (a) | LARKING MEET OVERPACK CONDITIONS (FMCSR 173.25(a)) - NO "OVERPACK" DISPOSITIONS 8. Towed/Escorted co Repair Service D.other A. Repaired at Scene / cocained Cret. Auth. N. Drivet 00s y. Unenown SEAL #'S REMOVED: DEFT. SEAL 6: INSTALLED Shipping#: 4066 Commodity: EXPLOSIVES Origin: MIDLAND, T> HM CATEGORT Dest: MIDLAND, TX NON BULK SPEC. TANE PLACARDS REO? CODE RO?| EW? ED/ RESION/DISTRICT/AREA CHARGES FILED BI: K MaClatchy 11871 4 A 0I 11871 4 A 01 PREPARED BIK Mcclatchy 40 BOX UN0440 CHARGES SHAPED, TIME COMELETED 14:02 UN0323 CARTRIDGES POWER DEVICE 1.4S PEII TARP CREATING AN OVERPACK. JUDGE: Hon. Terry Luck in Midland Co. YOU ARE HEREBY NOTIFIED TO APPEAR BEFORE ADDRESS: 400 S. MAIN MIDLAND OX 19701 8 April, 2016 PHONE: (432) 688-4721 THIS NOTICE. I MEREET PROMISE TO APPEAR AT (This is not a plea of guilty) THE TIME AND PLACE DESIGNATED T#

Page 8Incar CVE-3(r88) TXDPS COMMERCIAL VEHICLE ENFORCEMENT 2J Level DATE: 2016-03-01 12:56 TX4K0D0VBUQ4 COUNTY: MIDLAND CP# 0799750 HWY: FM-1788 MP-324 in MIDLAND CO. R4430V400017W OWNER: GEODYNAMICS INC NOTE TO MOTOR CARRIER: TRC Chapter 644 requires the Motor Carrier to AddI: 10500 WEST INTERSTATE 20 MILLSAP, TX 76066 of Public Safety. Motor Carrier Safety Section, PO Box 4087, Austin, Texas execute the certification at the end and return this report to Texas Department 78773-0001 within fifteen (15) days. E8975541-5300 ICC/MC#: SUNDAY TANTMOEX CLASS: A 006645464C Address: 2512 REDFIELD DOB: 1965-11-28 ESQUITE; IX 75181-001 NOTE TO DRIVER: This report mustbe furnished to the motor carrier whose IRD: 05/18/20 name appears on this report. co Regar ACCIDENT DIES CONSTRUCTION BONE • NO D OCCUPIED • ALCH O OUTS PYRE MAKE SPLAIR: (ST VE SW • TE TR CHEV 3127 * FBR7014 TX /1GB4KYC86FF163127 Axles: X RG WT #1 13200 RG WT #2 GVWR #1 (13200 VIOLATIONS DISCOVERED GVWR #2 TICKET | VIOL. CITE # Unit# 005 DISP DOS POST Yes 172.400 (a) ACC FAD TO PARE SACKAGE/CONTAINER OF HM (FMCSR 172.400(3)) 172.602 (c) (1) MAI -TE CLOSEB CENTRECONSESPONSE INFORMATION (FMCSR 172.602(6) 173,25 (a) PS ON OERPACKVERPACK CONDITIONS (FMCSR 173.25(a)) - MISSING UN# / 173.25(a) GALENG MEET OVERPACK CONDITIONS (FMCR 173.25(a)) - NO "OVERPACK" BROSITION 3. Bowedested to pala service the s N. Desser 00s Jaknown SEAL #'S REMOVED: DEPT. SEAL #: INSTALLED Shipping#: 4066 Commodity: EXPLOSIVES Origin: MIDLAND, TX Dest: MIDLAND, TX HM CATEGORY NON BULK" SPBC. TANK PLACARDS REQ? CODE 1.4 ROSES? TID/REGION/DISTRICT/AREA CHARGES FILED BY: K MeClatchy 11871 4 A 01 11871 4 A 01 [REPARED BY |* Meciatchy TIME COMELETED 14: 02 CODES FOR PACKARS ATE NOT VISIBLE MOUTH OVERACK TAUS MUST BE MARKED "OVERPACK" ON OUTSIDE JUDGE: Hon. Terry Luck in Midland Co. YOU ARE HEREBY NOTIFIED TO APPEAR BEFORE DOES 4305-474 MINARD 879701 @ APE:L, 2016 THIS NOTICE. I HEREBY PROMISE TO APPEAR AT THE TINE AND PLACE DESTSNETED TO (This is not a plea of guilty)#