Interpretation Response #03-0190
Below is the interpretation response detail and a list of regulations sections applicable to this response.
Interpretation Response Details
Aug 8, 2003
Mr. Warren D. Graef, BAAS, CHMM Reference No. 03-0190
Graef E&S Consulting Services
12323 Meadow Gate
Stafford, Texas 77477
Dear Mr. Graef:
This responds to your letter concerning the applicability of new security requirements adopted in a final rule issued under Docket HM-232. Your letter states that your client produces crude oil and moves it via flow lines to a storage tank where it is accumulated. The accumulated crude oil is offered for sale to an oil refiner or other oil company. The buyer accepts, transfers and arranges for the oil to be transported to its own storage facilities. Specifically, you ask if your client is subject to the security requirements.
Assuming the crude oil meets the definition of a hazardous material under the Hazardous Materials Regulations (HMR; 49 CFR Parts 171-180), the answer is yes. The HMR, in the newly adopted § 172.800(b), require persons who offer for transportation or persons who transport hazardous materials in quantities that require placarding in accordance with subpart F, Part 172, of the HMR to develop and implement security plans. From your letter, it appears that the crude oil is being transferred to and transported in a cargo tank motor vehicle. Section 172.504 requires placarding of all bulk packagings, i.e., a packaging which has a maximum capacity greater than 450 L (119 gallons). Therefore, as an offeror, your client is subject to the security requirements. Also see Fact Pattern #3 on page 6762 of the enclosed formal interpretation.
As we suggested in the preamble to the HM-232 final rule, we expect offerors to work with carriers to address en route security risks for the materials covered by the security plan the regulation provides the flexibility necessary to enable offerors and carriers to determine the best methods for addressing en route security issues. An offeror and carrier may have a joint plan or they may have two separate security plans. An offeror should satisfy itself that the carrier that will be transporting its material has a security plan in place that adequately addresses the assessed security risks of the material to be transported, including risks related to the storage of the material during transportation.
I hope this satisfies your inquiry.
Hattie L. Mitchell
Chief, Regulatory Review and Reinvention
Office of Hazardous Materials Standards
|§ 172.800||Purpose and applicability|