Digital Audio Disc Corporation — Hazardous Materials Safety Interpretation

Page 1of Transportation U.S.Department 00 Seventh Street, S.W Vashington, D.C. 2059( Special Programs Research and Administration JUL 9 1998 Mr. Gary J. Garrahan Ref. No: 98-0038 Environmental Engineer Digital Audio Disc Corporation P.O. Box 3710 Terre Haute, Indiana 47803-0710 Dear Mr. Garrahan: This is in response to your letter of April 30, 1998, requesting clarification of the materials of trade (MOTs) exception provided in the Hazardous Materials Regulations (HMR; 49 CFR parts 171- 180). You presented the following scenario: Your manufacturing operations consist of two buildings separated by a road with public access. Occasionally you may have a need material) from one building to the other. to transport a small quantity le:g., 1 gallon of a Class 3, PG II This, is not a normal business practice, it would occur only when necessary. The material is transported by a private carrier and is used to directly support your manufacturing process. The above scenario qualifies for transportation as MOTs provided all requirements in $ 173.6 are met. I hope this satisfies your request. Sincerely, Delmer E. Billings Chief, Standards Development Office of Hazardous Materials Standards#

Page 2LAVAIle - - MOTS 1800 North Fruitridge Avenue Digital Terre Haute, Indiana 47803-0710 P.O. Box 3710 Phone: (812) 462-8100 Audio Disc Facsimile: (812) 462-8755 Corporation April 30, 1998 Mr. Edward Mazzullo, Director Office of Hazardous Material Standards (DHM-10) U.S. Department of Transportation 400 7th Street SW Washington, D.G. 20590 RE: Clarification on Materials of Trade Exception - --- Mr. Mazzullo: On April 29, I spoke by phone with Mr. Mark Berger of your office, regarding a clarification to the Materials of Trade exception. I would like to formally verify the answer to my questions. Simply put, my question is: Does the Materials of Trade exception apply to the transportation of hazardous materials which are used in a manufacturing process? Consider the following scenario: Our manufacturing operations consist of two buildings separated by a public way. Occasionally, an unforeseen situation may arise where we deplete our inventory of a particular raw material or manufacturing aid to the point where it may impair the manufacturing process prior to receipt of a new shipment. Under such a circumstance, in order to keep the manufacturing process operating, it would be convenient to transport a small quantity (e.g., one gallon of a Class 3, Packing Group II liquid) from one building to the other by our company truck, under the Materials of Trade exception, until the inventory of this material is replenished through normal business means. In other words, this transportation would be infrequent and would only occur as a result of an immediate, urgent and necessary business need, as opposed to a regular business practice. We believe that the transportation of such small quantities of hazardous materials would be allowed due to the definition: A Subsidiary of Sony Corporatiön of America#

Page 3• "Mr. Edward Mazzullo page 2 April 30, 1998 - - • - -- Material of trade means a hazardous material, other than a hazardous waste, that is carried on a motor vehicle- (1) For the purpose of protecting the health and safety of the motor vehicle operator or passengers; (2) For the purpose of supporting the operation or maintenance of a motor vehicle (including its auxiliary equipment); or (3) 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. The fact that the carriage of the hazardous material would be for the purpose of directly supporting our manufacturing process would seem to fit the definition. While a scenario such as the one we have described may not have been considered during the development of §173.6, we believe that interpreting $173.6-to include-such a -- - scenario does meet the spirit and intent of the exception for the following reasons: 1. The materials in question are in small quantity (thus affording low hazard); 2. They are transported for the sole purpose of supporting a principal business (i.e., manufacturing); 3. The transportation of these materials is infrequent, as it is inefficient to transport such small quantities on a routine basis. In speaking with Mr. Berger, who stated that he discussed this scenario with several people in your office who helped develop §173.6, it appeared that our interpretation did, in fact, meet the definition of a material of trade, particularly since such transportation would be deemed inefficient, thus occurring infrequently. We thank you for consideration of our inquiry and look forward to your response. Sincerely, Lay 9. Manchar Gary J. Garrahan Environmental Engineer, Digital Audio Disc Corporation DOT MOT.DOC#