{"operation":"document","citation":"17-0014","title":"Chevron Phillips Chemical Company LP — Hazardous Materials Safety Interpretation","source_type":"guidance","agency":"Pipeline and Hazardous Materials Safety Administration","status":"guidance","official":true,"published_on":"2017-05-25","effective_on":null,"summary":"17-0014 response to Chevron Phillips Chemical Company LP concerning 171.8, 173.6.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-interpretation-17-0014.json","markdown":"https://regulus.evalyn.ai/document/phmsa-interpretation-17-0014.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-interpretation-17-0014","source_url":"https://www.phmsa.dot.gov/sites/phmsa.dot.gov/files/legacy/interpretations/Interpretation%20Files/2017/170014.pdf","body":"<<<PAGE 1>>>\n\nChevron Phillips Chemical Company LP\n10001 Six Pines Drive\nThe Woodlands, TX 77380\nReference No. 17-0014\nDear Mr. Norl Jr.:\nThis letter is in response to your February 2, 2017, email and letter requesting clarification of the\nHazardous Materials Regulations (HMR; 49 CFR Parts 171-180) applicable to the Materials of\nTrade (MOTs) exception. Specifically, you present two scenarios where companies transport\nsmall quantities of samples to laboratories for analysis using company owned/leased vehicles.\n• Scenario 1: A company transports small quantities of samples for analysis to the sample\ncollector's laboratory while using a company owned/leased vehicle. You believe this is\nacceptable under the definition of MOTs in § 171.8.\n• Scenario 2: A company transports small quantities of samples for analysis to a \"client's\"\nlaboratory or another company's laboratory. You believe this is not authorized for the\nMOTs exception and, therefore, that these samples are considered fully regulated in\naccordance with the HMR.\nTo meet the MOTs definition, the material must be carried on a motor vehicle by a private motor\ncarrier (including vehicles operated by a rail carrier) in direct support of a principal business that\nis other than transportation by motor vehicle. If a company's principal business is collecting and\nanalyzing samples and it's in direct support of their business as per the definition of MOTs in\n§ 171.8, then a company is eligible for the MOTs exception, provided the samples meet the\nrequirements in § 173.6.\nSee the following two examples for applicability of the MOTs exception:\nExample 1: The principal business of \"Company A\" is the collection and analysis of\nsamples for testing purposes. \"Company A\" collects the samples and has their employees\ntransport those samples to either their own facility or a third-party facility for testing\nwhile using a company owned/leased vehicle. This shipment of samples would be\nauthorized under the MOTs exception in § 173.6.\nExample 2: The principal business of \"Company A\" is the collection and analysis of\nsamples for testing purposes. \"Company A\" collects the samples but hires a carrier to\ntransport those samples to either \"Company A's\" facility or a third-party facility for\n\n<<<PAGE 2>>>\n\nSincerely,\nRAM pit\nDirk Der Kinderer\nChief, Standards Development Branch\nStandards and Rulemaking Division\n\n<<<PAGE 3>>>\n\nPlease submit this as a letter of interpretation. Mr. Norl spoke with Jodi.\nPlease let me know if you have any questions.\nThanks,\nJordan\nFrom: Norl Jr., Richard [mailto:NORLR@cpchem.com]\nSent: Thursday, February 02, 2017 1:01 PM\nTo: PHMSA HM InfoCenter <PHMSAHMInfoCenter@dot.gov>\nSubject: Request for Materials of Trade Interpretation\nRichard Morl 9r.\nDistribution Safety Analyst\nChevron Phillips Chemical Company LP\n10001 Six Pines Drive | The Woodlands, TX 77380\n2 Office: 832.813.4277 LEts norr@pchem.com\n• Business Cell: 832.571.7851\n\n<<<PAGE 4>>>\n\nDistribution Safety Analyst\n1200 New Jersey Avenue,\n10001 Six Pines Drive\n, SE.\nThe Woodlands, TX 77380\nWashington, DC 20590-0001\nTelephone: 832-813-4277\nRe: Request for Materials of Trade Interpretation\nCell: 832-571-7851\nnorr@cpchem.com\nDear Sir/Madam:\nwww.cpchem.com\nThere are numerous PHMSA interpretations regarding 49 CFR §173.6 -\nMaterials of Trade. It appears that the majority of questions referred for\ninterpretation are related to the transport of hazardous materials by \"a\nprivate motor carrier\" in \"direct support of a principal business\".\nThe Hazardous Materials Regulations (HMR) do not define \"private motor\ncarrier\" or \"direct support of a principle business\" that is other than\ntransportation. 49 U.S. Code § 13102 defines the term \"motor private\ncarrier\" as \"a person, other than a motor carrier\". \"transporting property by motor\nvehicle\" when— (a) the transportation experienced is as provided in section\n13501 of this title; (b) the person is the owner, lessee, or bailee of the\nproperty being transported; and (c) the property is being transported for\nsale, lease, rent, or bailment or to further a commercial enterprise.\nThe\nterm \"motor carrier\" is defined as \"a person providing motor vehicle\ntransportation for compensation\"\nThe Federal Motor Carrier Safety Administration (FMCSA) defines private\nmotor carrier as: \"A company that provides truck transportation of its\nown cargo, usually as part of a business that produces, uses, sells\nand/or buys the cargo being hauled https://www.tmcsa.dot.gov/protect-\nyour-move/glossary). The agency states on its Q&A site: \"A private motor\ncarrier transports its own cargo, usually as a part of a business that\nproduces, uses, sells and/or buys the cargo that is being\nhauled. id/247)\nPHMSA states the following in a MOT interpretation (Reference No. 13-\n0051) dated 18 February 2014 - \"The intent of the MOT exception is to\nprovide relief for a \"private carrier\" that permits him or her to transport by\nmotor vehicle certain hazardous materials, other than hazardous waste, that\nare used in direct support of the carrier's principle business \"other\nHan no min he neplese moane to company a rene porting\nits own business products for the purpose of carrying out the activities\n\n<<<PAGE 5>>>\n\nThere are companies whose principal business is cargo inspection, gauging, sample collection\nand/or analysis of their clients' products. These companies have their own laboratories. It\nseems clear to me that the transport of small quantities of samples from chemical companies\nand/or refineries, marine terminals and/or marines vessels, etc., in the sampling companies'\nvehicles, to their own laboratories and/or retention facilities, meets the definition of private\ncarrier in 49 U.S. Code § 13102 and the FMCSA regulations, as well as PHMSA's intent with\nrespect to the meaning of \"direct support of a principle business,\" therefore the MOT exception\nwould apply.\nHowever, if the samples are not being transported to the sample collectors' own laboratories\nfor subsequent analysis and/or retention, but are being transported to their \"clients'\nlaboratories or to other companies laboratories\", then they \"do not meet the definition of\nprivate carrier\" or the \"intent to directly support their principle businesses\" \"therefore the\nMOT exception does not apply.\" They would be considered a motor carrier as defined by the\nFMCSA and are subject to full compliance with the HMR.\nPlease clarify whether or not my statements herein are correct.\nThank you in advance for your assistance in this matter.","truncated":false,"body_characters":6500}