Chevron Phillips Chemical Company LP — Hazardous Materials Safety Interpretation

Page 1Chevron Phillips Chemical Company LP 10001 Six Pines Drive The Woodlands, TX 77380 Reference No. 17-0014 Dear Mr. Norl Jr.: This letter is in response to your February 2, 2017, email and letter requesting clarification of the Hazardous Materials Regulations (HMR; 49 CFR Parts 171-180) applicable to the Materials of Trade (MOTs) exception. Specifically, you present two scenarios where companies transport small quantities of samples to laboratories for analysis using company owned/leased vehicles. • Scenario 1: A company transports small quantities of samples for analysis to the sample collector's laboratory while using a company owned/leased vehicle. You believe this is acceptable under the definition of MOTs in § 171.8. • Scenario 2: A company transports small quantities of samples for analysis to a "client's" laboratory or another company's laboratory. You believe this is not authorized for the MOTs exception and, therefore, that these samples are considered fully regulated in accordance with the HMR. To meet the MOTs definition, the material must be carried on a motor vehicle by a private motor carrier (including vehicles operated by a rail carrier) in direct support of a principal business that is other than transportation by motor vehicle. If a company's principal business is collecting and analyzing samples and it's in direct support of their business as per the definition of MOTs in § 171.8, then a company is eligible for the MOTs exception, provided the samples meet the requirements in § 173.6. See the following two examples for applicability of the MOTs exception: Example 1: The principal business of "Company A" is the collection and analysis of samples for testing purposes. "Company A" collects the samples and has their employees transport those samples to either their own facility or a third-party facility for testing while using a company owned/leased vehicle. This shipment of samples would be authorized under the MOTs exception in § 173.6. Example 2: The principal business of "Company A" is the collection and analysis of samples for testing purposes. "Company A" collects the samples but hires a carrier to transport those samples to either "Company A's" facility or a third-party facility for#

Page 2Sincerely, RAM pit Dirk Der Kinderer Chief, Standards Development Branch Standards and Rulemaking Division#

Page 3Please submit this as a letter of interpretation. Mr. Norl spoke with Jodi. Please let me know if you have any questions. Thanks, Jordan From: Norl Jr., Richard [mailto:NORLR@cpchem.com] Sent: Thursday, February 02, 2017 1:01 PM To: PHMSA HM InfoCenter <PHMSAHMInfoCenter@dot.gov> Subject: Request for Materials of Trade Interpretation Richard Morl 9r. Distribution Safety Analyst Chevron Phillips Chemical Company LP 10001 Six Pines Drive | The Woodlands, TX 77380 2 Office: 832.813.4277 LEts norr@pchem.com • Business Cell: 832.571.7851#

Page 4Distribution Safety Analyst 1200 New Jersey Avenue, 10001 Six Pines Drive , SE. The Woodlands, TX 77380 Washington, DC 20590-0001 Telephone: 832-813-4277 Re: Request for Materials of Trade Interpretation Cell: 832-571-7851 norr@cpchem.com Dear Sir/Madam: www.cpchem.com There are numerous PHMSA interpretations regarding 49 CFR §173.6 - Materials of Trade. It appears that the majority of questions referred for interpretation are related to the transport of hazardous materials by "a private motor carrier" in "direct support of a principal business". The Hazardous Materials Regulations (HMR) do not define "private motor carrier" or "direct support of a principle business" that is other than transportation. 49 U.S. Code § 13102 defines the term "motor private carrier" as "a person, other than a motor carrier". "transporting property by motor vehicle" when— (a) the transportation experienced is as provided in section 13501 of this title; (b) the person is the owner, lessee, or bailee of the property being transported; and (c) the property is being transported for sale, lease, rent, or bailment or to further a commercial enterprise. The term "motor carrier" is defined as "a person providing motor vehicle transportation for compensation" The Federal Motor Carrier Safety Administration (FMCSA) defines private motor carrier as: "A company that provides truck transportation of its own cargo, usually as part of a business that produces, uses, sells and/or buys the cargo being hauled https://www.tmcsa.dot.gov/protect- your-move/glossary). The agency states on its Q&A site: "A private motor carrier transports its own cargo, usually as a part of a business that produces, uses, sells and/or buys the cargo that is being hauled. id/247) PHMSA states the following in a MOT interpretation (Reference No. 13- 0051) dated 18 February 2014 - "The intent of the MOT exception is to provide relief for a "private carrier" that permits him or her to transport by motor vehicle certain hazardous materials, other than hazardous waste, that are used in direct support of the carrier's principle business "other Han no min he neplese moane to company a rene porting its own business products for the purpose of carrying out the activities#

Page 5There are companies whose principal business is cargo inspection, gauging, sample collection and/or analysis of their clients' products. These companies have their own laboratories. It seems clear to me that the transport of small quantities of samples from chemical companies and/or refineries, marine terminals and/or marines vessels, etc., in the sampling companies' vehicles, to their own laboratories and/or retention facilities, meets the definition of private carrier in 49 U.S. Code § 13102 and the FMCSA regulations, as well as PHMSA's intent with respect to the meaning of "direct support of a principle business," therefore the MOT exception would apply. However, if the samples are not being transported to the sample collectors' own laboratories for subsequent analysis and/or retention, but are being transported to their "clients' laboratories or to other companies laboratories", then they "do not meet the definition of private carrier" or the "intent to directly support their principle businesses" "therefore the MOT exception does not apply." They would be considered a motor carrier as defined by the FMCSA and are subject to full compliance with the HMR. Please clarify whether or not my statements herein are correct. Thank you in advance for your assistance in this matter.#