{"operation":"document","citation":"16-0128","title":"Cimarron Oil LLC — Hazardous Materials Safety Interpretation","source_type":"guidance","agency":"Pipeline and Hazardous Materials Safety Administration","status":"guidance","official":true,"published_on":"2016-11-02","effective_on":null,"summary":"16-0128 response to Cimarron Oil LLC concerning 171.1, 171.8, 173.41.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-interpretation-16-0128.json","markdown":"https://regulus.evalyn.ai/document/phmsa-interpretation-16-0128.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-interpretation-16-0128","source_url":"https://www.phmsa.dot.gov/sites/phmsa.dot.gov/files/legacy/interpretations/Interpretation%20Files/2016/160128.pdf","body":"<<<PAGE 1>>>\n\nManager\nCimarron Oil LLC\n9251 Brunello Ct\nBakersfield, CA 93314\nRef. No. 16-0128\nDear Mr. Rausin:\nThis responds to your July 26, 2016 letter requesting clarification of the Hazardous Materials\nRegulations (HMR; 49 CFR Parts 171-180) applicable to the definition of \"offeror\" as it relates\nto § 1.73.41. In your scenario, you describe a producer of crude oil that sells to a purchaser.\nUnder contract, ownership of the oil passes to the purchaser as it flows through the valve on the\n(producer's) storage tank. You note your belief that the purchaser is the \"offeror\" based on\nperformance of a variety of functions including certain hazardous material pre-transportation\nfunctions, e.g., loading the crude oil from a storage tank to a transport vehicle, sampling and\nrestions provided, whether thaurchaser of the crude oil is the offeror as defined in $ 171.8.\nBased on the information provided, the purchaser is an offeror. However, there may be multiple\nofferors during transportation. As defined in § 171.8, a person who offers or offeror means any\nperson who does either or both of the following: (1) performs, or is responsible for performing,\nany pre-transportation function required under this subchapter for transportation of the hazardous\nmaterial in commerce; or (2) tenders or makes the hazardous material available to a carrier for\ntransportation in commerce. Any person that is determining the hazard class of a hazardous\nmaterial, selecting a packaging, filling a package, securing a closure, or marking a package to\nindicate that it contains a hazardous material, etc. is an offeror (see § 171.1(b)).\nI trust this satisfies your inquiry. Please contact us if we can be of further assistance.\nSincerely,\nChief, Standards Development Branch\nStandards and Rulemaking Division\n\n<<<PAGE 2>>>\n\nPlease submit this as a letter of interpretation.\nPlease let me know if you have any questions.\nThank you,\nJordan\nFrom: anthony044 [mailto:anthony044@earthlink.net]\nSent: Wednesday, July 27, 2016 3:55 PM\nTo: PHMSA HM InfoCenter\nSubject: Request for Rule Interpretation\nPlease find attached, a letter requesting a rule interpretation on CFR49 section 173.41. If you would please acknowledge\nreceipt of this letter, I would appreciate it.\nThank you\nAnthony Rausin\nManager\nCimarron OIl LLC\n\n<<<PAGE 3>>>\n\nU.S. DOT\n7/26/2016\nPHMSA Office of Hazardous Materials Standards\nAttn: PHH - 10\nEast Building\n1200 New Jersey Ave., SE\nWashington, DC 20590-0001\nRe: Request for Interpretation of Regulations\nCimarron Oil LLC would like to request an interpretation of 49CFR section 173.41, specifically\nas it relates to the definition of \"offeror\".\nCimarron Oil LLC is a producer ( the producer ) of crude oil and sells that crude oil to Shell\nTrading, ( the purchaser ). Under my purchase contract, the title to the crude oil passes to the\npurchaser as the oil passes through the valve on my storage tank. It is my opinion that the\npurchaser is the offeror for the following reasons.\n1. The purchaser is physically loading it's property, the crude oil.\nThe purchaser contracts with the carrier to transport the crude oil by truck.\n3. The purchaser is paying for the transport of the crude oil.\n4. The purchaser samples and tests the crude oil for gravity and water content.\n5. The purchaser provides the carrier with the necessary information to prepare current\nhazmat paperwork.\n6. The purchaser determines the destination of the crude oil.\n7. The purchaser is responsible for all liability regarding the transport of the crude oil.\nBased on the above conditions, I believe that the purchaser is the offeror in this case. Cimarron\nOil LLC currently has absolutely no duties or responsibilities concerning transportation of the\ncrude oil. The purchaser is offering the crude oil for transportation and is performing all of the\npre transportation functions necessary to transport the crude oil.\n\n<<<PAGE 4>>>\n\nAnthony Rausin\nManager\nCimarron Oil LLC\nE mail: anthony044@earthlink.net\nP.S. I you would acknowledge receipt of this letter, I would appreciate it.","truncated":false,"body_characters":4059}