# SMBC Rail Services LLC — Hazardous Materials Safety Interpretation

- **operation:** document
- **citation:** 22-0134
- **title:** SMBC Rail Services LLC — Hazardous Materials Safety Interpretation
- **source type:** guidance
- **agency:** Pipeline and Hazardous Materials Safety Administration
- **status:** guidance
- **official:** true
- **published on:** 2023-03-02
- **effective on:** Not available
- **summary:** 22-0134 response to SMBC Rail Services LLC concerning 180.509.
- **machine formats:** - **json:** https://regulus.evalyn.ai/document/phmsa-interpretation-22-0134.json
- **markdown:** https://regulus.evalyn.ai/document/phmsa-interpretation-22-0134.md
- **app url:** https://regulus.evalyn.ai/document/phmsa-interpretation-22-0134
- **source url:** https://www.phmsa.dot.gov/sites/phmsa.dot.gov/files/docs/standards-rulemaking/hazmat/interpretations/77426/220134.pdf
**body:**

<<<PAGE 1>>>

U.S. Department
of Transportation
Pipeline and Hazardous
Materials Safety
Administration
March 2, 2023
Dan Welch
Vice President – Sourcing & Regulatory Compliance
SMBC Rail Services LLC
300 South Riverside Plaza
Suite 1925
Chicago, IL 60606
Reference No. 22-0134
Dear Mr. Welch:
This letter is in response to your December 12, 2022, email requesting clarification of the
Hazardous Materials Regulations (HMR; 49 CFR Parts 171-180) applicable to tank car lining
qualification. Specifically, you ask whether an owner of the internal coating or lining of a tank
car must receive approval from the Federal Railroad Administration (FRA) Associate
Administrator for Railroad Safety in order to qualify tank car internal coatings or linings with an
interval of more than eight (8) years between qualification events.
The answer is yes. In accordance with § 180.509(i)(2), the owner of the tank car internal coating
or lining must use its knowledge of the service life of each coating or lining and commodity
combination to establish an appropriate inspection interval for that coating or lining and
commodity combination. This interval may only exceed eight (8) years if the coating or lining
owner can establish, document, and show that the service history or scientific analysis of the
coating or lining and commodity pairing supports a longer inspection interval. The authorization
in § 180.509(i)(2) to exceed an 8-year qualification interval is an alternate inspection and test
procedure than what is specified by rule in § 180.509; therefore, subject to § 180.509(l) and
approval by the Associate Administrator for Railroad Safety, FRA.
I hope this information is helpful. Please contact us if we can be of further assistance.
Sincerely,
1200 New Jersey Avenue, SE
Washington, DC 20590
Dirk Der Kinderen
Chief, Standards Development Branch
Standards and Rulemaking Division

<<<PAGE 2>>>

Patrick
22-0134
From: Patrick, Eamonn (PHMSA)
To: Dodd, Alice (PHMSA)
Cc: DerKinderen, Dirk (PHMSA); Freeman, Cheryl (PHMSA); Majors, Leonard (PHMSA)
Subject: FW: SMBC Rail Services Request for Interpretation
Date: Monday, December 12, 2022 4:16:00 PM
Attachments: image001.png
SMBC Rail LOI Request 2022.pdf
Good afternoon Alice,
Please assign the attached as a request for a Letter of Interpretation.
-Eamonn
From: Dan Welch <Dan.Welch@smbcrail.com>
Sent: Monday, December 12, 2022 4:13 PM
To: INFOCNTR (PHMSA) <INFOCNTR.INFOCNTR@dot.gov>
Cc: Keltz, Randy (FRA) <randy.keltz@dot.gov>; Gildea, David (FRA) <david.gildea@dot.gov>; Strouse,
Larry (FRA) <larry.strouse@dot.gov>; Konrad, Adam (FRA) <adam.konrad@dot.gov>; Fairbanks, Gary
(FRA) <gary.fairbanks@dot.gov>; King, Charles (FRA) <charles.king@dot.gov>; Henriksen, Lucinda
(FRA) <lucinda.henriksen@dot.gov>; Stewart, Roberta (FRA) <roberta.stewart@dot.gov>; Baxley,
Richard (FRA) <richard.baxley@dot.gov>; Maday, Mark (FRA) <mark.maday@dot.gov>; Alexy, Karl
(FRA) <karl.alexy@dot.gov>; Patrick, Eamonn (PHMSA) <eamonn.patrick@dot.gov>; DerKinderen,
Dirk (PHMSA) <Dirk.DerKinderen@dot.gov>; Freeman, Cheryl (PHMSA) <cheryl.freeman@dot.gov>;
Majors, Leonard (PHMSA) <leonard.majors@dot.gov>; Schoonover, William (PHMSA)
<william.schoonover@dot.gov>; Larry Loman - AllTranstek LLC (loman@alltranstek.com)
<loman@alltranstek.com>; Perry Fix <Perry.Fix@smbcrail.com>; Ashish Seth
<Ashish.Seth@smbcrail.com>; Mike McCarthy <Mike.McCarthy@smbcrail.com>
Subject: SMBC Rail Services Request for Interpretation
CAUTION: This email originated from outside of the Department of Transportation (DOT). Do
not click on links or open attachments unless you recognize the sender and know the content
is safe.
To Whom It May Concern,
Please find attached SMBC Rail Services LLC’s request for interpretation on 49 CFR 180.509(i)(2).
As noted, please contact me if there are any questions or concerns.
Thank you,
Dan Welch
VP, Sourcing and Regulatory Compliance
Phone: 312-559-4804
Fax: 312-559-4829
Cell: 312-256-3434

<<<PAGE 3>>>

Email: dan.welch@smbcrail.com
www.smbcrail.com
This message, including any attachments, may contain information that is privileged, confidential
and/or protected by copyright, and is subject to the terms available at:
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Services, please forward an email to the following address smbcunsubscribe@smbcgroup.com

<<<PAGE 4>>>

SMBC Rail Services, LLC
300 South Riverside Plaza
Suite 1925
Chicago, IL 60606
Telephone (312) 559-4804
Fax (312) 559-4829
E-mail dan.welch@smbcrail.com
Monday, December 12, 2022
To:
Standards and Rulemaking Division
Pipeline and Hazardous Materials Safety Administration
Attn: PHH–10, U.S. Department of Transportation, East Building
1200 New Jersey Avenue, SE.
Washington, DC 20590–0001
Ref: Request for Interpretation of 180.509(i)(2)
To Whom It May Concern,
SMBC Rail Services LLC requests PHMSA confirmation of our interpretation that when an inspection
interval meets the requirements of 180.509(i)(2), it does not require specific application and approval
as an alternative testing program under 180.509(l).
SMBC recognizes that 49 CFR 180.509(i)(2) allows intervals in excess of 8 years when:
“(This interval must not exceed eight (8) years, unless) the coating or lining owner can
establish, document, and show that the service history or scientific analysis of the coating or
lining and commodity pairing supports a longer inspection interval. The owner must
maintain at its principal place of business a written procedure for collecting and
documenting the performance of the coating or lining applied within the tank car for its
service life. The internal coating or lining owner must provide this documentation, including
inspection and test, repair, removal, and application procedures, to the FRA or car owner
upon request.”
FRA personnel have told SMBC that they interpret Sub Part F to read that a coating/lining interval
greater than 8 years requires specific application and approval for an alternative testing program listed
under 180.509(l) regardless of an owner’s ability to meet the requirements of 180.509(i)(2), and that
any cars marked with an interval more than 8 years without an approved alternative testing program
per 180.509(l) are non-compliant.

<<<PAGE 5>>>

SMBC Rail Services Request for Interpretation
December 12, 2022
As additional background:
• An interval of more than eight years was proposed to Karl Alexy of the FRA in 2011 by
SMBC Rail’s predecessor, American Railcar Leasing as meeting these requirements, and was
agreed to in spite of the fact that 180.509(l) existed at that time. In his agreement, Mr. Alexy
did not require or direct our employees to request an alternate approval under 180.509(l).
• 180.509(i)(2) was added in 2012 (when 180.509(l) was already in place) without any reference
to requirements under180.509(l).
Should you have any questions or concerns, please let us know.
Sincerely,
Dan Welch
Vice President – Sourcing & Regulatory Compliance
SMBC Rail Services LLC
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