HazMat Resources, Inc. — Hazardous Materials Safety Interpretation

Page 1of Transportation U.S. Department 1200 New Jersey Avenue, SE Washington, DC 20590 Pipeline and Hazardous Materials Safety Administration APR 0 2 2018 Mr. Danny Shelton President HazMat Resources, Inc. 124 Rainbow Drive, Suite 2471 Kingsport, TN 37663 Reference No. 17-0040 Dear Mr. Shelton: This letter is in response to your April 25, 2017, letter requesting clarification of the Hazardous Materials Regulations (HMR; 49 CFR Parts 171-180) applicable to marking cargo tank inlets and outlets to indicate whether they communicate with liquid or vapor when the cargo tank is filled to the maximum permitted filling density. You reference a previously-issued letter of interpretation, stating that the guidance therein is too limiting and does not account for the overall intent of the marking requirement. You believe that the intent of § 178.337-9(c) is fulfilled as long as the inlets and outlets are marked so that one can determine whether the inlet or outlet communicates with a liquid or vapor—-whether that marking be on the cargo tank wall, accident protection frame, or the outlets themselves. Your understanding is correct. Provided the marking is readily visible, legible, durable to withstand transport conditions, and clearly associated with the corresponding inlet or outlet, marking in the locations you describe would satisfy the requirements of the HMR. I hope this information is helpful. Please contact us if we can be of further assistance. Sincerely, acke Shane Kelley Director Standards and Rulemaking Division#

Page 2aser 8178-337-9(c Packagy Specs 17-00 H0 HazMat Resources, Inc.!?f April 25, 2017 Mr. Glenn Foster Acting Director, Office of Hazardous Materials Standards U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration East Building, 2nd Floor Mail Stop: E21-317 1200 New Jersey Ave., SE Washington, DC 20590 Re: Marking inlets and outlets on cargo tanks - PHMSA Interpretation 16-0001 Mr. Foster, Please find attached a copy of the Pipeline and Hazardous Materials Safety Administration (PHMSA) Interpretation 16-0001 dated June 3, 2016. The regulation clearly states the following: 178.337-9 (c) Marking inlets and outlets. Except for gauging devices, thermometer wells, and pressure relief valves, each CARGO TANK INLET AND OUTLET must be marked "liquid" or "vapor" to designate whether it communicates with liquid or vapor when the cargo tank is filled to the maximum permitted filling density. A filling line that communicates with vapor may be marked "spray-fill" instead of "vapor." We believe this means that the inlet or outlet on the cargo tank must be marked as follows; EACH CARGO TANK INLET AND OUTLET. The definition of cargo tank does not include piping but tank is TIGHT VESSEL HAVING OPENINGS DESIGNED TO ACCEPT PRESSURE TIGHT FITTINGS OR CLOSURES, clearly defined as A CONTAINER, CONSISTING OF A SHELL AND HEADS, THAT FORMS A PRESSURE BUT EXCLUDES ANY APPURTENANCES, REINFORCEMENTS, FITTINGS, OR CLOSURES. Additionally, in the definition of cargo tank it specifically refers to the definition of "tank" in 178.320. Currently most cargo tank motor vehicle manufacturers use internal valves (versus a back flow check valve) to protect the product inlets and outlets in addition to the required accident damage protection devices to protest from damage that could be caused as a result of an accident. This interpretation expands the marking requirements to include "cargo tank equipment" and "in close proximity" to its respective male/break point. I have not been able to find in the regulation where either one of these terms or phrases are defined and the regulations clearly do not require the marking to be 'in close proximity to" the break point. What is defined by PHMSA is "cargo tank" and "tank" and we are of the opinion that as long as the inlets and outlets on cargo tanks are marked so that one can determine what is an inlet/outlet/spray fill, that certainly fulfills the intent of the marking requirement. There is no question that everyone, even the roadside inspectors knew the function of each inlet/outlet but because the piping was not marked it was determined to be a violation. Most if not all MC331 cargo tanks, including bobtails and transports mark the inlets and outlets as close as practicable to the inlet and outlet. Specific to MC331 bobtail CTMVs the inlets and outlets are marked right on the cargo tank immediately adjacent to the fitting and the piping is protected by the rear end accident damage protection device. Inlets and outlets on transports are marked on the flange that is also marked on the piping protection guard where the delivery hose assembly attached to the cargo tank welded to the cargo tank that contains the internal valve and for convenience to the operator the piping is by means of the acme fitting. I have attached some pictures to illustrate how these outlets are marked to 124 RAINBOW DRIVE, SUITE 2471 • KINGSPORT, TN • 37663 • DSHELTON@HAZMATRESOURCES.COM & 423-863-2252#

Page 3HazMat Resources, Inc. clearly communicate to the operator and emergency response personnel the function of each inlet and We believe that PHMSA should reconsider this interpretation and considering the fact that this determination has expanded the marking requirement to include "cargo tank equipment" and "close proximity to" and neither term has been defined. One can certainly argue that the phrase "close proximity to" and "near" mean the same thing. PHMSA has already provided guidance on what near means regarding the marking of QT near the specification plate and has stated that near means on the same side of the cargo tank as the specification plate. So on the one hand 4 inches is not close enough sense so the industry is just trying to comply and make sense out of a requirement that is, at best, tor one marking yet up to 20 feet is acceptable for another marking. Neither determination makes any ambiguous. This incorrect interpretation has cause great harm and inconvenience to the trucking industry and State vapor or spray fill of the cargo tank. Thank you for your consideration in this matter. Regards Jamil th. Sheiter Daniel G. Shelton President, HazMat Resources, Inc. Cc: Ms. Christina Tackett, Assistant Chief Counsel, Hazmat Safety Mr. Mark Sanborn, Office of the Secretary Mr. Brigham McCown, Office of the Secretary Mr. Charles Whittington, Grammer Industries Mr. Mike Pitts, VP Mississippi Tank Company Mr. David Auxier, VP BT & T Attachments: Photographs of markings that were in violation in Kentucky Two Roadside inspections in Kentucky (1 for a transport and 1 for a bobtail) Photographs of how tanks are really marked 124 RAINBOW DRIVE, SUITE 2471 • KINGSPORT, TN • 37663 • DSHELTON@HAZMATRESOURCES.COM & 423-863-2252#

Page 4Photographs of typical markings of inlets and outlets on MC331 Cargo Tank Motor Vehicles This is a picture of the actual markings on the cargo tank that was written up by the state of Kentucky. LIQUID VAPOR SPRAY FILL VAPOR Typical marking on a transport. Note the cargo tank outlet by definition is marked. VAPOR In addition there are markings on the piping protection but if the piping protection gets damage because the cargo tank outlet is marked one can still determine the function of the opening. SPAY PIL#

Page 5Photographs of typical markings of inlets and outlets on MC331 Cargo Tank Motor Vehicles Closeup of marking on the cargo tank outlet. VAPOR SPRAY FILL TANK C COUN Marking of inlets and outlets SUCTION Marking of inlet and outlets on the cargo tank. SOLARA#

Page 6Photographs of typical markings of inlets and outlets on MC331 Cargo Tank Motor Vehicles Closeup of marking on the piping protection MINSISSI Closeup of marking on the piping protection Marking of inlet and outlets on the cargo tank.#

Page 7Photographs of typical markings of inlets and outlets on MC331 Cargo Tank Motor Vehicles This is a picture of the actual markings a MC331 bobtail that was written up in Kentucky. Same as above just a different angle. Inlets and outlets marked on the cargo tank. This is another CTMV that was written up in Kentucky. LUID SPRAY FILL#

Page 804/06/2017 20:03 812853750500 WIL TRANPORT PAGE 01 04/07 faxed to KY DRIVER/VEHICLE EXAMINATION REPORT Kentucky State Police inSPECT 1.0.96 Commercial Vehicle Enforcement Division Report Number: KYCV44000579 Frankfort, Kentucky 40601 919 Versailles Road Inspection Date: 04/04/2017 Start: 7:30 AM CT End: 8:28 AM CT Fax 502-573-0021 Inspection Lovel: I - Full 6320 E STATE ST GRAMMER INDUSTRIES INCORPORATED HM inspection Type: Bulk Driver: WILLIAMS, LEE A USDOT: 184668 COLUMBUS, IN, 47201 License#: 8907770809 State: IN MC/MX#: 152256 Phone#: (812)579-5655 Date of Birth: 10/07/1963 State#: Fax#: (812)579-5643 License#: CoDriver: State: Location: HENDERSON WEIGH FACILITY Date of Birth: County: HENDERSON Highway: US 0041 Milepost: 21 Origin: NEWBURGH,IN Shipper: GRAMMER INDUSTRIES Destination: CALVERT CITY, KY Bill of Lading: N/A Cargo: HAZARDOUS MATERIALS Unit Iype Make Year State VEHICLE IDENTIFICATION 2 ST MTCI 2010 IN KW 2005 332499 Plate Equipment ID Z83666 702 867 1XKWDB9X35J099493 52000 VIN GUWE CVSA# Issued # DOS Sticker 1MSAT9B2XAV355934 68000 BRAKE ADJUSTMENTS Right Axle # 1 Left 1 3/4 2 Chamber G-24 1 3/4 C-30 1/2 C-30 1/2 C-30 3/4 C-30 1 Section VIOLATIONS 178.337-9C LyDE Unit QOS N Citation t Wait a Walking Discout MC31: Inet and Outlet piling ia not marker as raquired. Required to HazMat: 2.1 LPG Placard: Yes Cargo Tank: 331 . Special Checks: Conducted by Local Jurisdiction Alcohol/Controlled Substance Check Traffic Enforcement X eScreen Inspection Size and Weight Enforcement PASA Conducted Inspection PBBT Inspection Post Crash Inspection Drug Interdiction Search State Information: Driver's Lic. Check (Y or N): Y; Cargo Tank Inspection: Y; Bulk Packaging: N; Carrier Validation (Y or N): Y Goodman (4325) Co-Inspector(s): tention Motor Carrier: If the inspection indicates violations/defects on the driver and or vehicle a signed copy of the inspection shall be retumed witl day to the address shown at the top left of the inspection. An Inspection absent any type of violation/defect does not need to be ratur Motor carriers are required to keep a copy of this inspection on file for 12 months from the date of inspection (49 FR 396.8(d)(3)(il). NOTE: Drivers or carriers may challenge the accuracy or valldity of a commercial vehicle inspection, including the issuance of an Out of Service Order, by contacting the Federal Motor carrier Safety Administration (FMCSA) at: https://dataqs.fmcsa.dot.cov ou can make application through the DataQ syster to have the related out of service order rescindec your citation for a fatigue and or illness violation is dismissed by a prosecutor or judge for lack of probable cause, or you are acquitted of the charge The undersigned certifies that all violations noted have been corrected and compliance achjeved with the Federal Motor Carrier Safety and / or Federal Signature Of Motor Carrier X: 70th 7 MEZuls Hazardous Materials Regulations As applicable to moter carriers and drivers. Tate: aint Date: 04-07-2011 safety Rept. Page 1 of 2 00184668 KY KYCV44000579#

Page 984/06/2017 20:03 812853750500 WIL TRANPORT PAGE 02 DRIVERIVEHICLE EXAMINATION REPORT Commercial Vehicle Enforcement Division Kentucky State Police inSPECT 1.0.96 Roport Number: KYCV44000579 919 Versallles Road Inspection Date: 04/04/2017 POLIS Frankfort, Kentucky 40601 Start: 7:30 AM CT End: 8:28 AM CT Fax 502-573-0021 Inspection Level: 1- Full G. Pointe Report Prepared By: Unit #: Badge #: HM Inspection Type: Bulk x6. Past 4400 4400 Copy Received By: LEE WILLIAMS Page 2 of 2 MARLINIBI 00184668 KY KYCV44000579#

Page 10Highway: KY-0015 Origin: HAZARD,KY Bill of Lading: NA Coumy: KNOTT Destination: WHITESBURG,KY Cargo: HAZARDOUS MATERIALS VEHICLE IDENTIFICATION Unil Type Make Year State Plate Equipment ID VIN GWWR CVSA# issued # OOS SI 1 TR FRHT 2014 KY 308600 5049 3ALACXCYOEDFV4067 33000 BRAKE ADJUSTMENTS:No brake measurements required for level I! or level I!! VIOLATIONS Section Type Unit OOS Citation.# Verity Crash Violations Discovered 178.337-9C F 1 N N N Marking inlets/oullets MC331: Inlets and outlets not marked only marked on tank wall HazMat: 2.1 LPG Placard: Yes Cargo Tank: 331 Special Checks: No data for special checks State Information: Driver's Lic. Check (Y or N): Y; Cargo Tank Inspection: Y; Bulk Packaging: Y; Carrier Validation (Y or N): Y Co-Inspectors): Johnson (4232) Notes: UN1075 Propane Attention Mutor Carner If the inspeclion indicates violations/defects on the driver and or vehicle a signed copy of the inspection shall be returned with 15 days lo the address shown at the top left of the inspection. An inspection absent any type of violation/defect does not need to be returned, Motor carriers are requred to keep a copy of this inspection on file for 12 months from the date of inspection (49 CFR 396. 9(d)(3)(i. NOTE. Divers or carriers may challenge the accuracy or validly of a commercial vehicle inspection, including the issuance of an Out of Service Order Dy contacting the Federal Motor carrier Safety Administralion (FMCSA) al: https://dataqs.imcsa.dot.gov you can make application through the Data system to have the related out of service order rescinded. It your cifation for a faugue and or illness violation is dismissed by a prosecutor or judge for lack of probable cause; or you are acquitted of the charge The ardensgnes carties that all violations noted have been corected and compliance achieved with the Federal Motor Carier Safely and / or Federal Hazardous Materals Regulations as applicable to motor carriers and drivers. Signature Of Motor Carter X Title: Date: Repert Prepared By* Unit #: Badge#: Copy Received By: D issac 4398 4398 JOHN SPARKS#