82_FR_5510 82 FR 5499 - Hazardous Materials: Volatility of Unrefined Petroleum Products and Class 3 Materials

82 FR 5499 - Hazardous Materials: Volatility of Unrefined Petroleum Products and Class 3 Materials

DEPARTMENT OF TRANSPORTATION
Pipeline and Hazardous Materials Safety Administration

Federal Register Volume 82, Issue 11 (January 18, 2017)

Page Range5499-5508
FR Document2017-00913

PHMSA is considering revising the Hazardous Materials Regulations (HMR) to establish vapor pressure limits for unrefined petroleum-based products and potentially all Class 3 flammable liquid hazardous materials that would apply during the transportation of the products or materials by any mode. PHMSA is currently assessing the merits of a petition for rulemaking submitted by the Attorney General of the State of New York regarding vapor pressure standards for the transportation of crude oil. The petition requests that PHMSA implement a Reid Vapor Pressure (RVP) limit less than 9.0 pounds per square inch (psi) for crude oil transported by rail. PHMSA will use the comments in response to this ANPRM to help assess and respond to the petition and to evaluate any other potential regulatory actions related to sampling and testing of crude oil and other Class 3 hazardous materials. PHMSA will also evaluate the potential safety benefits and costs of utilizing vapor pressure thresholds within the hazardous materials classification process for unrefined petroleum-based products and Class 3 hazardous materials.

Federal Register, Volume 82 Issue 11 (Wednesday, January 18, 2017)
[Federal Register Volume 82, Number 11 (Wednesday, January 18, 2017)]
[Proposed Rules]
[Pages 5499-5508]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-00913]


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DEPARTMENT OF TRANSPORTATION

Pipeline and Hazardous Materials Safety Administration

49 CFR Parts 171, 172, 173, 174, 177, 178, 179, and 180

[Docket No. PHMSA-2016-0077 (HM-251D)]
RIN 2137-AF24


Hazardous Materials: Volatility of Unrefined Petroleum Products 
and Class 3 Materials

AGENCY: Pipeline and Hazardous Materials Safety Administration (PHMSA), 
Department of Transportation (DOT or Department).

ACTION: Advance notice of proposed rulemaking (ANPRM).

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SUMMARY: PHMSA is considering revising the Hazardous Materials 
Regulations (HMR) to establish vapor pressure limits for unrefined 
petroleum-based products and potentially all Class 3 flammable liquid 
hazardous materials that would apply during the transportation of the 
products or materials by any mode. PHMSA is currently assessing the 
merits of a petition for rulemaking submitted by the Attorney General 
of the State of New York regarding vapor pressure standards for the 
transportation of crude oil. The petition requests that PHMSA implement 
a Reid Vapor Pressure (RVP) limit less than 9.0 pounds per square inch 
(psi) for crude oil transported by rail. PHMSA will use the comments in 
response to this ANPRM to help assess and respond to the petition and 
to evaluate any other potential regulatory actions related to sampling 
and testing of crude oil and other Class 3 hazardous materials. PHMSA 
will also evaluate the potential safety benefits and costs of utilizing 
vapor pressure thresholds within the hazardous materials classification 
process for unrefined petroleum-based products and Class 3 hazardous 
materials.

DATES: Comments must be received by March 20, 2017.

ADDRESSES: You may submit comments identified by the docket number 
PHMSA-2016-0077 (HM-251D) and the relevant petition number by any of 
the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov 
Follow the instructions for submitting comments.
     Fax: 1-202-493-2251.
     Mail: Docket Management System; U.S. Department of 
Transportation, West Building, Ground Floor, Room W12-140, Routing 
Symbol M-30, 1200 New Jersey Avenue SE., Washington, DC 20590.
     Hand Delivery: To the Docket Management System; Room W12-
140 on the ground floor of the West Building, 1200 New Jersey Avenue 
SE., Washington, DC 20590, between 9 a.m. and 5 p.m., Monday through 
Friday, except Federal holidays.
    Instructions: All submissions must include the agency name and 
docket number for this ANPRM at the beginning of the comment. To avoid 
duplication, please use only one of these four methods. All comments 
received will be posted without change to http://www.regulations.gov 
and will include any personal information you provide. All comments 
received will be posted without change to the Federal Docket Management 
System (FDMS), including any personal information.
    Docket: For access to the dockets to read background documents or 
comments received, go to http://www.regulations.gov or DOT's Docket 
Operations Office located at U.S. Department of Transportation, West 
Building, Ground Floor, Room W12-140, Routing Symbol M-30, 1200 New 
Jersey Avenue SE., Washington, DC 20590.
    Privacy Act: Anyone can search the electronic form of all comments 
received into any of our dockets by the name of the individual 
submitting the comments (or signing the comment, if submitted on behalf 
of an association, business, labor union, etc.). DOT posts these 
comments, without edit, including any personal information the 
commenter provides, to www.regulations.gov, as described in the system 
of records notice (DOT/ALL-14 FDMS), which can be reviewed at 
www.dot.gov/privacy.

FOR FURTHER INFORMATION CONTACT: Lad Falat, Director, Engineering and 
Research, (202) 366-4545, Office of Hazardous Materials Safety, 
Pipeline and Hazardous Materials Safety Administration, U.S. Department 
of Transportation, 1200 New Jersey Ave. SE., Suite E21-314, Washington, 
DC 20590-0001.

SUPPLEMENTARY INFORMATION: 

Table of Contents

I. Executive Summary
II. Objective of This ANPRM
III. Petition P-1669 & Other Efforts To Set a Vapor Pressure 
Standard for Crude Oil
    A. Summary & Supporting Data for Petition P-1669
    B. North Dakota Industrial Commission (NDIC) Oil Conditioning 
Order No. 25417
IV. Background Information
    A. Current HMR Requirements for the Classification of Unrefined 
Petroleum-Based Products
    B. High-Hazard Flammable Train (HHFT) Rulemaking
    C. Sandia Study
    D. PHMSA Actions
    E. Pipeline Operators
    F. Accident History and Vapor Pressure Levels
V. Comments and Questions
    A. General Questions
    B. Safety Questions
    C. Vapor Pressure Questions
    D. Packaging Questions
VI. Regulatory Review and Notices
    A. Executive Order 12866, Executive Order 13563, Executive Order 
13610, and DOT Regulatory Policies and Procedures
    B. Executive Order 13132
    C. Executive Order 13175
    D. Regulatory Flexibility Act, Executive Order 13272, and DOT 
Policies and Procedures
    E. Paperwork Reduction Act
    F. Environmental Assessment
    G. Privacy Act
    H. Executive Order 13609 and International Trade Analysis
    I. Statutory/Legal Authority for This Rulemaking
    J. Regulation Identifier Number (RIN)
    K. Executive Order 13211

I. Executive Summary

    On December 1, 2015, PHMSA received a petition for rulemaking from 
the New York State Office of the Attorney General (New York AG) 
proposing amendments to the Hazardous Materials Regulations (HMR; 49 
CFR parts 171-180) applicable to the transportation of crude oil by 
rail. PHMSA designated the petition as

[[Page 5500]]

Petition P-1669 \1\ (P-1669 or the petition). In P-1669, the New York 
AG asks PHMSA to add a new paragraph (a)(6) to existing Sec.  174.310 
requiring all crude oil transported by rail to have a Reid vapor 
pressure (RVP) of less than 9.0 pounds per square inch (psi).\2\ The 
petition is based on the premise that limiting the product's vapor 
pressure will reduce the risk of death or damage from fire or explosion 
in the event of an accident. Separately, the North Dakota Industrial 
Commission (NDIC) implemented a maximum vapor pressure threshold of 
13.7 psi, VPCRx, Reid equivalent.\3\ Therefore, in this ANPRM, PHMSA is 
asking a series of questions seeking input as to whether there should 
be national vapor pressure thresholds for petroleum products and/or 
other Class 3 hazardous materials and, if so, what that thresholds 
should be.
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    \1\ PHMSA placed a copy of the petition in docket number PHMSA-
2015-0253, which is accessible at https://www.regulations.gov/docket?D=PHMSA-2015-0253.
    \2\ RVP was a common measurement of the vapor pressure of 
flammable liquids such as gasoline and crude oil.
    \3\ RVP uses different equipment and procedures than Reid 
equivalent. For example, Reid equivalent is done using closed 
conditions to preserve the lighter ends, while RVP is conducted in 
an open test chamber.
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    PHMSA has long stressed that it is the offeror's responsibility 
under Sec.  173.22 of the HMR to ensure that hazardous materials are 
properly classified. To reinforce this requirement, the HMR also 
require offerors of unrefined petroleum-based products, including crude 
oil, to institute a sampling and testing program in accordance with 
Sec.  173.41.\4\ There are numerous industry standards for sampling and 
determining vapor pressure of crude oil and other Class 3 hazardous 
materials.
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    \4\ ``Unrefined petroleum-based products'' refers to hazardous 
hydrocarbons that are extracted from the earth and have not yet been 
refined. In the high-hazard flammable trains (HHFT) final rule, 
PHMSA replaced ``mined liquids and gases'' with ``unrefined 
petroleum-based products'' based on comments received in response to 
the HHFT NPRM.
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    When taking additional steps to better understand hazardous 
materials and the risks those materials may pose in transportation, DOT 
always strives to rely on the best available science and information to 
inform its decision making. Section 7309 of the ``Fixing America's 
Surface Transportation Act of 2015,'' or the ``FAST Act,'' directs the 
Secretary of Energy, in cooperation with the Secretary of 
Transportation (Secretary), to submit a report to Congress that 
contains results of the Crude Oil Characteristics Research Sampling, 
Analysis and Experiment (SAE) Plan \5\ (the Sandia Study discussed in 
Section IV.C of this ANPRM will implement the SAE Plan), as well as 
recommendations for regulations and legislation based on the findings 
to improve the safe transport of crude oil. The findings of the Sandia 
Study will help inform the Department as it moves forward.
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    \5\ http://energy.gov/sites/prod/files/2016/06/f32/Crude%20Oil%20Characteristics%20Research%20SAE%20Plan.pdf.
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II. Objective of This ANPRM

    Federal hazardous materials law authorizes the Secretary to 
``prescribe regulations for the safe transportation, including 
security, of hazardous materials in intrastate, interstate, and foreign 
commerce.'' 49 U.S.C. 5103(b)(1). The Secretary has delegated this 
authority to PHMSA, 49 CFR 1.97(b). The HMR are designed to achieve 
three primary goals: (1) Help ensure that hazardous materials are 
packaged and handled safely and securely during transportation; (2) 
provide effective communication to transportation workers and emergency 
responders of the hazards of the materials being transported; and (3) 
minimize the consequences of an accident or incident should one occur. 
The hazardous material regulatory system is a risk management system 
that is prevention-oriented and focused on identifying safety or 
security hazards and reducing the probability and consequences of a 
hazardous material release.
    Under the HMR, hazardous materials are categorized into hazard 
classes and packing groups based on analysis of and experience with the 
risks they present during transportation. The HMR: (1) Specify 
appropriate packaging and handling requirements for hazardous materials 
based on this classification and require a shipper to communicate the 
material's hazards through the use of shipping papers, package marking 
and labeling, and vehicle placarding; (2) require shippers to provide 
emergency response information applicable to the specific hazard or 
hazards of the material being transported; and (3) mandate training 
requirements for persons who prepare hazardous materials for shipment 
or transport hazardous materials in commerce. The HMR also include 
operational requirements applicable to each mode of transportation.
    The Administrative Procedure Act (APA), 5 U.S.C. 551, et seq. 
requires Federal agencies to give interested persons the right to 
petition an agency to issue, amend, or repeal a rule. 5 U.S.C. 553(e). 
In accordance with PHMSA's rulemaking procedure regulations in 49 CFR 
part 106, interested persons may ask PHMSA to add, amend, or repeal a 
regulation by filing a petition for rulemaking along with information 
and arguments supporting the requested action (Sec.  106.95).
    The petition is based on the premise that limiting the vapor 
pressure, as measured by RVP, of crude oil in rail transport below 9.0 
psi will reduce the risk of death or damage from fire or explosion in 
the event of an accident. However, in order to grant the petition, 
PHMSA would have to:
     Determine the best metric or combination of metrics (vapor 
pressure or other metric) for measuring and controlling fire and 
explosion risk in crude oil transport;
     Quantify the improvement in safety, if any, due to risk 
reduction from implementation of vapor pressure thresholds at varying 
levels;
     Identify the measurement techniques necessary to establish 
compliance;
     Identify offerors' compliance strategies and market 
impacts with RVP standards at varying levels of stringency, and 
estimate their economic costs and environmental impacts;
     Identify other regulations and industry practices, such as 
volatile organic compound emissions standards imposed through the Clean 
Air Act, or State regulations, or pipeline operator RVP standards, 
potentially affecting compliance strategies and costs, and safety 
benefits;
     Evaluate the extent to which use of DOT Specification 117 
tank cars mitigates the risk of transporting crude oil;
     Compare compliance costs of mitigation strategies with 
risk reduction from adoption of the petition; and
     Balance the benefits and costs in setting the level of the 
chosen metric. If RVP is the best metric, PHMSA would have to determine 
that a particular RVP limit is preferable to any other limit. For 
example, if 9.0 psi is chosen, PHMSA would need to show that 9.0 psi is 
preferable to some other potential limits, such as 8.0 or 11.0. This 
would include considering whether there is a ``safe'' level of RVP 
below which risks are minimal (which would lead to little safety 
benefit from reducing RVP further), or some level of RVP where risks do 
not further increase.
    In this ANPRM, PHMSA is seeking public comment to obtain the views 
of those who are affected by the NDIC Order, as well as those who are 
likely to be impacted by the changes proposed

[[Page 5501]]

in the petition, including those who are likely to benefit from, be 
adversely affected by, or potentially be subject to additional 
regulation. Additionally, PHMSA seeks comment from stakeholders 
regarding the many factors PHMSA must consider when evaluating the need 
for and impacts of regulatory changes. In general, PHMSA requests 
comments on:
     Safety benefits of any proposed regulatory change, 
including the relevant scientific or other empirical support;
     Economic impacts, including data, on the costs and 
benefits; and
     Ease of compliance with the regulatory changes that 
Petition P-1669 requests.
    This ANPRM will provide an opportunity for public participation in 
the development of regulatory amendments and promote greater exchange 
of information and perspectives among the various stakeholders. PHMSA 
issued this notice to help respond to Petition P-1669 and, more 
broadly, to consider a focused and well-developed regulatory path 
forward that reflects the views of all relevant parties.

III. Petition P-1669 & Other Efforts To Set a Vapor Pressure Standard 
for Crude Oil

A. Summary & Supporting Data for P-1669

    In Petition P-1669,\6\ the New York State Office of the Attorney 
General petitioned PHMSA to revise Sec.  174.310 to establish a 
nationwide vapor pressure standard for crude oil shipped by rail 
throughout the United States. The petition states, ``At present, no 
federal regulation exists to limit the volatility of crude oil shipped 
in railroad tank cars. This petition for rulemaking seeks to close that 
loophole and reduce the risk of harm to American communities.'' The 
petition further requests PHMSA to ``assert its rulemaking authority, 
as delegated by the Secretary of Transportation, and establish a 
federal RVP limit for crude oil transported by rail in the United 
States at an appropriate level that is less than 9.0 psi.''
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    \6\ https://www.regulations.gov/docket?D=PHMSA-2015-0253.
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    A copy of the petition is available in the public docket for this 
ANPRM, and can be viewed at either http://www.regulations.gov or DOT's 
Docket Operations Office (see ADDRESSES section above).
    Petition P-1669 makes the following claims to support the 
establishment of a vapor pressure threshold for crude oil. 
Specifically, the petition asserts:
    1. Shipments of Bakken crude oil by rail are vastly expanding;
    2. A disturbing trend of train explosions [exists] involving 
shipments of Bakken crude oil;
    3. Bakken crude oil is highly volatile and extremely flammable; and
    4. The volatility of crude oil can be effectively reduced with 
existing technology.
    The petition also provides the following table to highlight the 
vapor pressures of the crude oil involved in several high-profile train 
accidents:

------------------------------------------------------------------------
                                               Reid Vapor pressure of
                  Source                          Bakken crude oil
------------------------------------------------------------------------
Lac-M[eacute]gantic, Quebec (July 6, 2013)  Average between 9.0 to 9.5
                                             psi.\7\
Heimdal, North Dakota (May 6, 2015).......  10.8 psi.\8\
PHMSA Operation Safe Delivery.............  Average of 12.3 psi.\9\
Mt. Carbon, West Virginia (February 16,     13.9 psi.\10\
 2015).
Lynchburg, Virginia (April 2015)..........  Average of 14.3 psi.\11\
------------------------------------------------------------------------

    In addition, Petition P-1669 summarizes the NDIC Standards 
(discussed in Section IV.E of this ANPRM) and the HHFT final rule 
(discussed in Section IV.B of this ANPRM) arguing in support of a new 
RVP limit of less than 9.0 psi for the safe transportation of crude oil 
by rail. However, the petition did not identify specific costs and 
benefits, or robust empirical information, to support the proposed 
limit.
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    \7\ See Transportation Safety Board (TSB) of Canada Laboratory 
Report LP148/2013, Aug. 19, 2014. The TSB Report notes that the 
vapor pressure measurements of these samples may be lower than the 
vapor pressure of the Bakken crude oil in the Lac-M[eacute]gantic 
accident: ``The occurrence crude oil samples were taken at 
atmospheric pressure. This could lead to an underestimation of the 
crude oil[']s volatility due to evaporation loss of very light 
constituents.''
    \8\ See Stern, M., ``How to Prevent an Oil Train Disaster,'' 
N.Y. Times, May 19, 2015.
    \9\ ``Operation Safe Delivery Update,'' Pipeline and Hazardous 
Materials Safety Administration, at 16, available at: http://www.phmsa.dot.gov/pv_obj_cache/pv_obj_id_8A422ABDC16B72E5F166FE34048CCCBFED3B0500/filename/
07_23_14_Operation_Safe_Delivery_Report_final_clean.pdf.
    \10\ See Gold, R., ``Crude on Derailed Train Contained High 
Level of Gas,'' Wall Street Journal, March 2, 2015.
    \11\ See Sobczak, B., ``Crude in Va. oil-train derailment was 
highly volatile--safety data,'' EnergyWire, E&E Publishing, LLC, 
Aug. 25, 2015.
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B. North Dakota Industrial Commission Oil Conditioning Order No. 25417

    In December 2014, NDIC issued Oil Conditioning Order No. 25417 
(Order), which requires operators of Bakken crude oil produced in the 
state of North Dakota to separate the gaseous and light hydrocarbons 
from all Bakken crude oil.\12\ The Order requires the use of a gas-
liquid separator and/or an emulsion heater-treater capable of 
separating the gaseous and liquid hydrocarbons, prohibits blending of 
Bakken crude oil with specific materials, and requires crude oil 
produced to have a Vapor Pressure (using ASTM D6377) not greater than 
13.7 psi or 1 psi less than the vapor pressure of stabilized crude oil.
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    \12\ See https://www.dmr.nd.gov/oilgas/Approved-or25417.pdf.
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    According to NDIC, the measurements taken under the Order use the 
ASTM D6377 with a vapor to liquid (V/L) ratio of 4 and a temperature of 
100 [deg]F (37.8 [deg]C), which is equivalent to a Reid Vapor Pressure 
measurement. The Order requires the 13.7 psi limit to be measured as 
pounds per square inch absolute (psia) and not pounds per square inch 
gauge (psig). According to NDIC, psia is used to make clear that the 
pressure is relative to a vacuum rather than the ambient atmospheric 
pressure.

IV. Background Information

    In 1990, the Research and Special Programs Administration (RSPA), 
the predecessor agency to PHMSA, published a final rule under Docket 
HM-181 which adopted a new classification system for gases, which 
assigned new divisions for flammable gas (2.1), non-flammable, non-
toxic compressed gas (2.2), and toxic/poisonous gases (2.3). The new 
system defined flammable gases according to their (1) state as a gas at 
ambient conditions (i.e., 14.7 psia (101.4 kPa) and 68 [deg]F (20 
[deg]C)) and (2) flammability, as determined by existing flammability 
limits. There were no vapor pressure requirements.

[[Page 5502]]

    RSPA adopted the definition of a ``gas'' from the United Nations 
(UN) Transport of Dangerous Goods Model Regulation in an effort to 
harmonize its regulations with international standards in 1994. The HM-
181 final rule did not address a particular method of testing vapor 
pressure, or otherwise address how the new definition would impact the 
existing definition of flammable gas in 49 CFR 173.115. However, as 
late as 1990, RSPA's definitions of gases were limited to gases under 
pressure, e.g., compressed gases, cryogenic liquids, and refrigerant or 
dispersant gases. Both the definition of compressed gas, and the 
related definition of flammable compressed gas, contemplated using the 
RVP testing method described in ASTM D 323.

A. Current HMR Requirements for the Classification of Unrefined 
Petroleum-Based Products

    Unrefined petroleum-based products, including crude oil, have 
variable chemical compositions. Differences in the chemical makeup of 
the raw material can vary across different times and wellheads. 
Typically, organic materials from oil and gas production at a wellhead 
are passed through a ``separator'' to separate the gas, oil, and water 
from the crude oil produced. As such, there are multiple hazardous 
liquids that are commonly shipped from the well-site, including crude 
oil, condensate, and natural gas liquids.\13\ A limited separation 
process, which is insufficient to remove the lightest components, could 
increase the volatility of the crude oil. In accordance with Sec.  
173.22 of the HMR, the offeror must consider all hazards when 
classifying a hazardous material. The table below identifies key 
classification considerations for unrefined petroleum-based products: 
\14\
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    \13\ Condensate refers to C5-C8, natural 
gas liquids (NGLs) refers to C2-C8, both 
separated from the crude oil during initial processing.
    \14\ The HMR define three states of matter in 49 CFR 171.8: 
Solid, liquid, or gas. A liquid is a material, other than an 
elevated temperature material, with a melting point or initial 
melting point of 20 [deg]C (68 [deg]F) or lower at a standard 
pressure of 101.3 kPa (14.7 psia). In other words, it is a liquid in 
its normal state at ambient temperature and standard pressure. A gas 
is a material which has a vapor pressure greater than 300 kPa (43.5 
psia) at 50 [deg]C (122 [deg]F) or is completely gaseous at 20 
[deg]C (68 [deg]F) at a standard pressure of 101.3 kPa (14.7 psia). 
A solid is a material which is not a gas or a liquid.
    \15\ kPa: kiloPascals; psia: pounds per square inch absolute; 
psig: pounds per square inch gauge; LC50: Lethal 
Concentration measure.

                 Current Classification Considerations for Unrefined Petroleum-Based Products 15
----------------------------------------------------------------------------------------------------------------
           Class                     Division                      Name                      Definition
----------------------------------------------------------------------------------------------------------------
2.........................  2.1.......................  Flammable Gas............  Any material which is a gas
                                                                                    at 68 [deg]F or less and
                                                                                    14.7 psia of pressure (a
                                                                                    material which has a boiling
                                                                                    point of 68 [deg]F or less
                                                                                    at 14.7 psia) which--
                                                                                   (1) Is ignitable at 14.7 psia
                                                                                    when in a mixture of 13
                                                                                    percent or less by volume
                                                                                    with air; or
                                                                                   (2) Has a flammable range at
                                                                                    14.7 psia with air of at
                                                                                    least 12 percent regardless
                                                                                    of the lower limit.
                            2.2.......................  Non-flammable, Non-        Any material (or mixture)
                                                         poisonous compressed gas.  which--(1) Exerts in the
                                                                                    packaging a gauge pressure
                                                                                    of 200 kPa (29.0 psig/43.8
                                                                                    psia) or greater at 68
                                                                                    [deg]F, is a liquefied gas
                                                                                    or is a cryogenic liquid,
                                                                                    and (2) Does not meet the
                                                                                    definition of Division 2.1
                                                                                    or 2.3.
                            2.3.......................  Gas Poisonous by           A material which is a gas at
                                                         Inhalation.                68 [deg]F or less and a
                                                                                    pressure of 14.7 psia (a
                                                                                    material which has a boiling
                                                                                    point of 68 [deg]F or less
                                                                                    at 14.7 psia) and which--(1)
                                                                                    Is known to be so toxic to
                                                                                    humans as to pose a hazard
                                                                                    to health during
                                                                                    transportation, or (2) In
                                                                                    the absence of adequate data
                                                                                    on human toxicity, is
                                                                                    presumed to be toxic to
                                                                                    humans because when tested
                                                                                    on laboratory animals it has
                                                                                    an LC50 value of not more
                                                                                    than 5000 mL/m\3\ (see Sec.
                                                                                     173.116(a) for assignment
                                                                                    of Hazard Zones A, B, C or
                                                                                    D). LC50 values for mixtures
                                                                                    may be determined using the
                                                                                    formula in Sec.
                                                                                    173.133(b)(1)(i) or CGA P-20
                                                                                    (IBR, see Sec.   171.7).
3.........................  ..........................  Flammable and Combustible  Flammable liquids--liquid
                                                         Liquids.                   with a flash point of 140
                                                                                    [deg]F or less.
                                                                                   Combustible liquids--liquid
                                                                                    with a flash point above 140
                                                                                    [deg]F and below 200 [deg]F
                                                                                    that does not meet any other
                                                                                    hazard class definition.
6.........................  6.1.......................  Poisonous material.......  A material, other than a gas,
                                                                                    which is known to be so
                                                                                    toxic to humans as to afford
                                                                                    a hazard to health during
                                                                                    transportation, or which, in
                                                                                    the absence of adequate data
                                                                                    on human toxicity:
                                                                                   (1) Is presumed to be toxic
                                                                                    to humans because it falls
                                                                                    within any one of the
                                                                                    categories specified in Sec.
                                                                                      173.132(a)(1) (Oral
                                                                                    Toxicity, Dermal Toxicity,
                                                                                    or Inhalation Toxicity) when
                                                                                    tested on laboratory animals
                                                                                    (whenever possible, animal
                                                                                    test data that has been
                                                                                    reported in the chemical
                                                                                    literature should be used);
                                                                                    or
                                                                                   (2) Is an irritating
                                                                                    material, with properties
                                                                                    similar to tear gas, which
                                                                                    causes extreme irritation,
                                                                                    especially in confined
                                                                                    spaces.
8.........................  ..........................  Corrosive material.......  A liquid or solid that causes
                                                                                    full thickness destruction
                                                                                    of human skin at the site of
                                                                                    contact within a specified
                                                                                    period of time. A liquid, or
                                                                                    a solid which may become
                                                                                    liquid during
                                                                                    transportation, that has a
                                                                                    severe corrosion rate on
                                                                                    steel or aluminum based on
                                                                                    the criteria in Sec.
                                                                                    173.137(c)(2) is also a
                                                                                    corrosive material. Whenever
                                                                                    practical, in vitro test
                                                                                    methods authorized in Sec.
                                                                                    173.137 or historical data
                                                                                    authorized in Sec.
                                                                                    173.136(c) should be used to
                                                                                    determine whether a material
                                                                                    is corrosive.
----------------------------------------------------------------------------------------------------------------


[[Page 5503]]

    As illustrated in the above table, an offeror must account for 
whether their crude oil exhibits hazards beyond that of a Class 3 
hazardous material. Below are some examples of the impacts of potential 
hazards and the risks posed if those properties are not identified and 
considered:
     Dissolved gases--may result in pressure build-up inside 
the tank car, increasing the volatility of the material and requiring a 
more robust packaging.
     Corrosivity--may corrode the tank car and its components, 
requiring an inner lining.
     Toxicity--may pose an inhalation hazard to human life upon 
release from the tank car without ignition.
    Part 173 of the HMR contains testing methods for the various hazard 
classes and respective criteria for packing groups. In the event an 
offeror determines a hazardous material meets more than one hazard 
class, the offeror must determine the primary hazard. The HMR (at Sec.  
173.2a) require a hazardous material to be classed according to the 
highest applicable hazard class. The following list illustrates the 
precedence of the hazard classes that are most frequently associated 
with unrefined petroleum-based products:
    (1) Division 2.3 (poisonous gases);
    (2) Division 2.1 (flammable gases);
    (3) Division 2.2 (non-flammable gases);
    (4) Division 6.1 (poisonous liquids), Packing Group I, poisonous-
by-inhalation only;
    (5) Class 3 (flammable and combustible liquids);
    (6) Class 8 (corrosive materials) or Division 6.1 (poisonous 
liquids or solids other than Packing Group I, poisonous-by-inhalation); 
and
    (7) Combustible liquids.
    When making classification determinations, the offeror of the 
hazardous material must also consider the packing groups associated 
with each hazard class. Packing group indicates a grouping according to 
the severity of the hazard presented by hazardous materials. The 
packing group must be determined by applying the following criteria:
1. Class 2 Packing Group Assignment
    Materials meeting the definition of Division 2.1 or 2.2 are not 
assigned packing groups. Division 2.3 materials are assigned hazard 
zones related to the toxicity of the material. See Sec.  173.116.
2. Class 3 Packing Group Assignment

------------------------------------------------------------------------
                                                                Initial
                                       Flash point  (closed-    boiling
            Packing group                       cup)             point
                                                                ([deg]F)
------------------------------------------------------------------------
I...................................  .......................       <=95
II..................................  <73 [deg]F.............        >95
III.................................  >=73 [deg]F, <=140             >95
                                       [deg]F.
------------------------------------------------------------------------

3. Class 6--Division 6.1 Packing Group Assignment

----------------------------------------------------------------------------------------------------------------
                                                                                          Inhalation toxicity by
            Packing group              Oral toxicity LD50  (mg/   Dermal toxicity LD50     dusts and mists LC50
                                                 kg)                    (mg/kg)                   (mg/L)
----------------------------------------------------------------------------------------------------------------
I....................................  <=5.0..................  <=50...................  <=0.2.
II...................................  >5.0 and <=50..........  >50 and <=200..........  >0.2 and <=2.0.
III..................................  >50 and <=300..........  >200 but <=1000........  >2.0 and <=4.0.
----------------------------------------------------------------------------------------------------------------


------------------------------------------------------------------------
           Packing group              Vapor concentration and toxicity
------------------------------------------------------------------------
I (Zone A)........................  V >= 500 LC50 and LC50 <=200 mL/
                                     M\3\.
I (Zone B)........................  V >= 10 LC50; LC50 <=1000 mL/m\3\;
                                     and the criteria for Packing Group
                                     I, Hazard Zone A are not met.
II................................  V >= LC50; LC50 <=3000 mL/m\3\; and
                                     the criteria for Packing Group I,
                                     are not met.
III...............................  V >= .2 LC50; LC50 <=5000 mL/m\3\;
                                     and the criteria for Packing Group
                                     I and II, are not met.
------------------------------------------------------------------------
Note 1: V is the saturated vapor concentration in air of the material in
  mL/m\3\ at 20 [deg]C and standard atmospheric pressure.
Note 2: A liquid in Division 6.1 meeting criteria for Packing Group I,
  Hazard Zones A or B stated in Sec.   173.133(a)(2) is a poisonous by
  inhalation subject to additional hazard communication requirements in
  Sec.  Sec.   172.203(m), 172.313 and table 1 of 172.504(e).

4. Class 8--Packing Group Assignment

------------------------------------------------------------------------
           Packing group                         Corrosivity
------------------------------------------------------------------------
I.................................  Material that causes full thickness
                                     destruction of intact skin tissue
                                     within 60 minutes, starting after
                                     an exposure time of three minutes
                                     or less.
II................................  Material (not meeting packing group
                                     I criteria) that causes full
                                     thickness destruction of intact
                                     skin tissue within 14 days starting
                                     after an exposure time of more than
                                     three minutes but not more than 60
                                     minutes.
III...............................  Material (not meeting packing group
                                     I or II criteria) that causes full
                                     thickness destruction of intact
                                     skin tissue within an observation
                                     period of up to 14 days starting
                                     after the exposure time of more
                                     than 60 minutes but not more than 4
                                     hours; or
                                    Material that does not cause full
                                     thickness destruction of intact
                                     skin tissue but exhibits a
                                     corrosion rate on steel or aluminum
                                     surfaces exceeding 0.25 inch a year
                                     at a test temperature of 130
                                     [deg]F.
------------------------------------------------------------------------

    Proper classification is a critical step in the process for 
ensuring hazardous materials are transported safely. Following the 
selection of a proper hazard class or classes and an appropriate 
packing group for the material, an offeror must select the name from 
the Hazardous Materials Table (HMT; 49 CFR 172.101) most accurately 
describing the material being shipped (e.g., Petroleum crude oil). The 
selected name must account for all hazards present. If there is no 
proper shipping name that accurately describes the material and its 
hazards, an offeror may use a generic shipping description (e.g., 
Hydrocarbon gas mixture, liquefied, n.o.s.). Generic descriptions are 
denoted in the HMT with an ``n.o.s.,'' meaning ``not otherwise 
specified.'' The accurate selection of the shipping description is 
important in determining the proper packaging.
    In 2014, the rail and oil industry, with PHMSA's input, developed a 
recommended practice designed to improve crude oil rail safety through 
proper classification and loading practices. The American Petroleum 
Institute (API) led the effort, which

[[Page 5504]]

resulted in the development of an American National Standards Institute 
(ANSI) recognized recommended practice, API RP 3000, Classifying and 
Loading of Crude Oil Into Rail Tank Cars. The API RP 3000 provides 
guidance on the material characterization, transport classification, 
and quantity measurement for overfill prevention of crude oil for the 
loading of rail tank cars.
    On July 23, 2014, PHMSA and the Federal Railroad Administration 
(FRA) released a report summarizing the analysis of Bakken crude oil 
data gathered from August 2013 to May 2014.\16\ PHMSA and FRA conducted 
tests and obtained results from 135 samples. The majority of crude oil 
analyzed from the Bakken region displayed characteristics consistent 
with those of a Class 3 flammable liquid, packing group I or II.
---------------------------------------------------------------------------

    \16\ See http://phmsa.dot.gov/staticfiles/PHMSA/DownloadableFiles/Hazmat/07_23_14_Operation_Safe_Delivery_Report_final_clean.pdf.
---------------------------------------------------------------------------

B. High-Hazard Flammable Train (HHFT) Rulemaking

    On August 1, 2014, PHMSA, in coordination with FRA, published a 
notice of proposed rulemaking (NPRM) entitled ``Hazardous Materials: 
Enhanced Tank Car Standards and Operational Controls for High-Hazard 
Flammable Trains'' (HM-251; 79 FR 45015) \17\ proposing requirements to 
reduce the consequences and, in some instances, reduce the probability 
of accidents involving trains transporting large quantities of Class 3 
flammable liquids. In the NPRM, PHMSA indicated that the properties of 
unrefined petroleum-based products, including crude oil, are variable 
based on time, method, and location of extraction, whereas manufactured 
goods often undergo a strict quality assurance process designed to 
ensure characteristics are within defined parameters. Unlike 
manufactured goods, organic materials from oil and gas production 
represent a unique challenge in regards to classification. The chemical 
makeup of the raw material can vary over time and geographical 
location. As noted earlier, typically, organic materials from oil and 
gas production at a wellhead are passed through a ``separator'' to 
remove most of the gas, sediment, and water from the crude oil. As 
such, there are multiple hazardous liquids that are commonly shipped 
from the well-site, including crude, natural gas condensate, and 
natural gas liquid.
---------------------------------------------------------------------------

    \17\ See https://www.thefederalregister.org/fdsys/pkg/FR-2014-08-01/pdf/2014-17764.pdf.
---------------------------------------------------------------------------

    Given this variability, PHMSA stressed that it is the offeror's 
responsibility, under Sec.  173.22 of the HMR, to ensure hazardous 
materials are properly classified. To reinforce this requirement, PHMSA 
proposed a new Sec.  173.41 explicitly requiring a sampling and testing 
program for unrefined petroleum-based products, including crude oil.
    In the HHFT NPRM, PHMSA also sought comments from the public on the 
role of vapor pressure in classifying flammable liquids and selecting 
packagings, as well as whether vapor pressure thresholds should be 
established. PHMSA did this based on comments received to the HHFT 
ANPRM (78 FR 54849). Individuals, government organizations, and 
environmental groups, such as the Delaware Riverkeeper Network, 
supported mandating vapor pressure testing that in their words would 
``increase safety and accuracy.'' Environmental groups and offeror 
Quantum Energy also suggested packaging selection should be based on 
vapor pressure. Industry stakeholders, such as the Dangerous Goods 
Advisory Council and the American Fuel and Petrochemical Manufacturers 
(AFPM), stated vapor pressure testing was unnecessary. For example, 
AFPM specifically stated ``Bakken crude oil vapor pressures appear to 
be within operational limits required for transport in pipelines 
(facility piping and transmission lines) and for purposes of storage in 
floating roof tanks; thus operational vapor pressure limits do not 
necessitate stabilization in advance of rail transportation.'' \18\
---------------------------------------------------------------------------

    \18\ https://www.regulations.gov/document?D=PHMSA-2012-0082-3274.
---------------------------------------------------------------------------

    On May 8, 2015, PHMSA, in coordination with FRA, published a final 
rule entitled ``Hazardous Materials: Enhanced Tank Car Standards and 
Operational Controls for High-Hazard Flammable Trains'' (HM-251; 80 FR 
26643) to codify requirements in the HMR to reduce the consequences 
and, in some instances, reduce the probability of accidents involving 
trains transporting large quantities of Class 3 flammable liquids. In 
regard to the classification of unrefined petroleum-based products, the 
final rule, like the NPRM before it, stressed the offeror's 
responsibility to properly classify and describe a hazardous material. 
In the rule, PHMSA codified Sec.  173.41 to require a sampling and 
testing program for unrefined petroleum-based products. PHMSA intended 
Sec.  173.41 to provide the industry with a direct way of establishing 
a program to consider the varying characteristics and properties of 
unrefined petroleum-based products. The program applies to all modes of 
transportation and offerors must certify that a program is in place, 
document the testing and sampling program outcomes, and make 
information available to DOT personnel upon request.
    In the HHFT final rule, PHMSA indicated that it could not adopt any 
other specific changes related to vapor pressure, exceptions for 
packing group, or incentives to reduce volatility, because PHMSA did 
not propose them in the NPRM. 80 FR 26643, 26665.\19\ However, PHMSA 
indicated it might consider addressing these comments in a future 
action. Based on the comments received, and P-1669, PHMSA requests 
comments regarding the role of ``vapor pressure'' in the classification 
process and specifically in regards to unrefined petroleum-based 
products, such as crude oil.
---------------------------------------------------------------------------

    \19\ https://www.thefederalregister.org/fdsys/pkg/FR-2015-05-08/pdf/2015-10670.pdf.
---------------------------------------------------------------------------

C. Sandia Study

    In 2014, the DOT and the U.S. Department of Energy (DOE) 
commissioned a review of available crude oil chemical and physical 
property data literature \20\ to characterize and define tight crude 
oils based on their chemical and physical properties, and identify 
properties that could contribute to increased potential for accidental 
combustion.\21\ Sandia National Laboratories (Sandia) conducted this 
review and focused on crude oil's potential for ignition, combustion, 
and explosion. A partial list of properties surveyed includes density 
(expressed as API gravity), vapor pressure, initial boiling point, 
boiling point distribution, flash point, gas-oil ratio, ``light ends'' 
(dissolved gases--including nitrogen, carbon dioxide, hydrogen sulfide, 
methane, ethane, and propane--and butanes and other volatile liquids) 
composition, and flash gas composition. Although the review yielded a 
large database encompassing a wide variety of crude oils and their 
properties, it also illustrated the difficulty in utilizing available 
data as the basis for accurately defining and meaningfully comparing 
crude oils.
---------------------------------------------------------------------------

    \20\ See http://prod.sandia.gov/techlib/access-control.cgi/2015/151823.pdf.
    \21\ Tight oil is a type of oil extracted from petroleum-bearing 
formations of low permeability (typically shale or tight sandstone). 
These formations produce oil through hydraulic fracturing.

---------------------------------------------------------------------------

[[Page 5505]]

    An important outcome of the review was formal recognition of the 
wide-ranging variability in crude oil sample type, sampling method, and 
analytical method, as well as the acknowledgement that this variability 
limits the adequacy of the available crude oil property data set as the 
basis for establishing effective and affordable safe transport 
guidelines. In recognition of the need for improved understanding of 
crude oil, and especially tight crude oil properties, the Sandia Study 
was designed to characterize tight and conventional crudes based on key 
chemical and physical properties and to identify properties that may 
contribute to increased likelihood and/or severity of combustion events 
that could arise during handling and transport. The work scope 
represents a phased approach, in that knowledge gained from completing 
each task will inform the execution of subsequent tasks to maximize 
efficiency in achieving overall plan objectives. Through four tasks, 
the SAE Plan,\22\ will characterize tight and conventional crudes based 
on identified key chemical and physical qualities and identify 
properties that may contribute to increased likelihood and/or severity 
of combustion events that could arise during handling and transport. 
This project is currently in Task 2, which is designed to determine 
what methods of sampling and analysis are suitable for characterizing 
the physical and chemical properties of different crude oils.
---------------------------------------------------------------------------

    \22\ See http://energy.gov/sites/prod/files/2016/06/f32/Crude%20Oil%20Characteristics%20Research%20SAE%20Plan.pdf.
---------------------------------------------------------------------------

D. PHMSA Actions

    On January 2, 2014, PHMSA issued a safety alert to notify the 
public, emergency responders, shippers, and carriers that crude oil 
from the Bakken region may be more flammable than traditional heavy 
crude oil.\23\ The alert was a follow-up to the PHMSA and FRA joint 
safety advisory entitled, ``Safety and Security Plans for Class 3 
Hazardous Materials Transported by Rail,'' 78 FR 69745, published 
November 20, 2013. The safety advisory stressed that offerors need to 
properly classify and describe hazardous materials being offered for 
transportation in accordance with Sec.  173.22 of the HMR.
---------------------------------------------------------------------------

    \23\ See http://www.phmsa.dot.gov/staticfiles/PHMSA/DownloadableFiles/1_2_14%20Rail_Safety_Alert.pdf.
---------------------------------------------------------------------------

E. Pipeline Operators

    In recent months, the volume of crude oil exported by rail from 
North Dakota has steadily declined to less than 400,000 barrels per 
day. The North Dakota State Pipeline Authority estimates that more than 
500,000 barrels per day of Bakken crude oil moves by pipeline. Pipeline 
operators routinely set upper limits on RVP levels for crude oil that 
will be accepted for transport. A sample of six North Dakota pipeline 
operators indicates that they have set RVP upper limits ranging from 
9.0 to 14.7 psia for acceptable crude oil.\24\ Understanding how oil 
producers comply with pipeline operators' RVP standards, or possibly 
instead ship crude oil with RVP levels that exceed pipeline operator 
limits by rail, would provide useful insights for understanding the 
consequences of setting RVP limits for rail transport.
---------------------------------------------------------------------------

    \24\ Cf. Bakken Oil Express: RVP = 9, http://www.boemidstream.com/wp-content/uploads/2014/02/BOEPL-Rules-Regulations.pdf; Belle Fourche RVP = 13.7, http://www.buttepipeline.com/sites/default/files/tariffs/BFPL%20FERC%20112.17.0.pdf;
    Tesoro High Plains Pipeline (ND): RVP = 13, http://phx.corporate-r.net/External.File?item=UGFyZW50SUQ9MjU1NjYxfENoaWxkSUQ9LTF8VHlwZT0z&t=1;
    Bakken Link: RVP = 9.5, http://bakkenlink.com/data/upfiles/media/rules%20and%20regulations.pdf;
    Enbridge North Dakota Pipeline RVP = 103 kPa (14.7 psia), http:/
/www.enbridge.com/~/media/www/Site%20Documents/
Informational%20Postings/Tariffs/North%20Dakota/NDPL-FERC-No-2-2-
0.pdf;
    Bakken Pipeline Company (Enbridge) says absolute vapor pressure 
per ASTM6377 <13.7. http://www.enbridge.com/~/media/Rebrand/
Documents/Tariffs/2015/Bakken%20US%20FERC%20No%20110.pdf?la=en; and
    Bridger Pipeline: RVP = 9.4 summer/11 winter, http://www.hawthornoiltransportation.com/tariffs/ND_RatesRegs_070112.pdf.
---------------------------------------------------------------------------

F. Accident History and Vapor Pressure Levels

    As shown above, Petition P-1669 included a table highlighting the 
vapor pressures of the crude oil involved in several high-profile train 
accidents. According to the Petition, the vapor pressures of the oil 
involved in the five accidents was, at the low end, an ``average 
between 9.0 and 9.5 psi,'' and at the high end, ``an average of 14.3 
psi.'' It likely would be useful to have more comprehensive information 
regarding the vapor pressure levels of Class 3 flammable liquid 
hazardous materials involved in rail accidents, and information about 
the nature, characteristics and consequences of the accidents. It would 
be useful to have such information for accidents involving other 
transportation modes as well. Such information may inform understanding 
of how a flammable liquid's vapor pressure affects the characteristics 
and consequences of accidents involving the liquid. PHMSA began 
collecting this information for rail after July 2013. The information 
we have has uncertainty since testing may happen after the train is 
moved to a final destination and there may have been different sampling 
and testing techniques used, among other issues. PHMSA may consider 
publishing this information for the NPRM once we review and 
consolidate.

V. Comments and Questions

    PHMSA requests comments on the merits of P-1669.\25\ PHMSA is 
uncertain that the requested action in Petition P-1669 would provide a 
safety benefit and requests comments on the following questions:
---------------------------------------------------------------------------

    \25\ https://www.regulations.gov/docket?D=PHMSA-2015-0253.
---------------------------------------------------------------------------

A. General Questions

    1. To what extent, if at all, would requiring crude oil shipped 
by rail to have a RVP of no greater than 9.0 psi decrease the 
expected degree, consequence, or magnitude of a release or the 
likelihood of a fire during an accident? Please provide relevant 
scientific or other empirical information to support your comment.
    2. What, if any, peer-reviewed or other robust information is 
available that addresses the safety effectiveness and/or cost of 
setting vapor pressure limits for crude oil or other flammable 
liquids during transportation?
    3. How do the consequences resulting from accidents involving 
low-vapor pressure flammable liquids (e.g., ethanol) \26\ compare to 
accidents involving high vapor pressure flammable liquids (e.g., 
certain crude oil)? If the consequences are significantly similar, 
will adopting a vapor pressure limit address the magnitude of 
release or the likelihood of fire during an accident for both 
commodity types?
---------------------------------------------------------------------------

    \26\ The vapor pressure of ethanol is RVP (at 100 F) is 2.0 psi.
---------------------------------------------------------------------------

    4. Would adopting a vapor pressure limit impact trans-border 
shipments? If so, how?
    5. What methods can be employed to measure environmental and 
human health effects of setting a vapor pressure limit for the 
transport of crude oil by rail? How would the benefits of setting a 
vapor pressure limit be quantified?
    6. What options are available for reducing the volatility of 
crude oil before it's offered for transportation and loaded into 
tank cars, such as existing consensus standards or operating 
practices used for conditioning (heating and treating) crude oil? 
What voluntary measures has industry taken to reduce the volatility 
of crude oil shipped in interstate commerce by any mode? If so, what 
are they?
    7. What other regulatory and industry marketability measures are 
in place that restrict the volatility of crude oil in transport, 
such as RVP limits set by pipeline operators, or the impact of 
volatile organic compound emission standards for storage tanks and 
other petroleum facilities?
    8. How many carloads and trains would be affected by setting a 
vapor pressure limit for

[[Page 5506]]

the transport of crude oil by rail? What portion of current carloads 
would be out of compliance with the standard proposed in P-1669? 
Similarly, how many cargo ship shipments, truck shipments and 
barrels of oil transported by pipeline would be affected by adopting 
the standard proposed in P-1669?
    9. What are the expected impacts of establishing a nationwide 
vapor pressure standard for crude oil intended for transportation in 
commerce? Should that standard apply to all modes of transportation 
or be limited to specific modes? What are the costs and benefits of 
those impacts? Please provide information and data, and include 
references and sources for information and data provided.
    10. Should there be different vapor pressure limits depending on 
the specific circumstances of the shipment, such as the mode, the 
quantity of material or whether the shipment will travel through 
populated areas?
    11. Are there other risk factors that should be considered 
instead of, or in addition to, vapor pressure (e.g., a material's 
flammability range, specific heat or heat of vaporization)? How do 
these risk factors affect the magnitude of release or the likelihood 
of fire resulting from an accident?
    12. While offerors would be legally responsible for compliance 
with a volatility standard, it may be that actual compliance would 
be more cost-effectively implemented at some other point in the 
supply chain. What physical, institutional, or legal arrangements 
would be needed for implementation of a vapor pressure standard?
    13. What types of additional technology, equipment, labor, and 
changes to existing operations would be needed for the establishment 
of a nationwide vapor pressure standard for crude oil intended for 
transportation in commerce? What would be the initial and recurring, 
and fixed and variable costs? If changes to existing operations 
would involve additional labor, then please provide the additional 
time by activity and labor category.
    14. To what extent can a vapor pressure standard be implemented 
within the existing system? At what point would additional 
investments be required? What level of infrastructure change would 
be needed? Is this level affected by seasonal and market demands? 
How do the answers to these questions change if crude oil production 
returned to historically high volume levels?
    15. What additional types of training would be needed for the 
establishment of a nationwide vapor pressure standard for crude oil? 
What would be the initial and recurring costs?
    16. Compared to the current baseline, what would be the changes 
to production, pre-treatment, conditioning or stabilization, 
loading, and transport of petroleum crude oil if PHMSA establishes a 
nationwide vapor pressure standard?
    17. How should the effectiveness and benefits of a rulemaking 
establishing a nationwide vapor pressure standard for crude oil be 
measured?
    18. In order to estimate benefits of a rulemaking, what 
consequences would be mitigated or prevented by establishing a 
nationwide vapor pressure standard for crude oil? Have there been 
any U.S. crude-by-rail accidents where a lower vapor pressure would 
have made a difference in the outcome? If yes, please provide all 
relevant details to support the conclusion.
    19. If PHMSA were to adopt the vapor pressure threshold 
requested by the petitioner (or another threshold), what timeframe 
would be needed to comply with the new requirements to implement the 
needed treatment infrastructure throughout the network of offerors?
    20. If PHMSA were to establish a nationwide vapor pressure 
standard, should any other Class 3 hazardous materials besides crude 
oil be subject to a vapor pressure limit? If so, which ones? Please 
provide the basis for your comment.
    21. If PHMSA were to establish a nationwide vapor pressure 
standard, should it apply to the highway mode of transportation? 
What is the impact of a vapor pressure standard on the current 
highway fleet capacity? If highway transportation is included, what 
is the increased exposure for highway deaths and injuries? How does 
this compare to exposure in rail transportation?
    22. What other properties of Class 3 hazardous materials are 
important to consider when setting vapor pressure limits? For 
example, are the following properties important: Lower and upper 
explosive limits, evaporations rates, etc.?
    23. Would the flammable gases removed from the crude oil be 
transported by tank cars or cargo tanks? If so, how many additional 
tank cars or cargo tank shipments of flammable gases would be 
required? What are the safety consequences of transporting such 
materials or how might PHMSA quantify such consequences? How would 
this impact the overall risk assessment?
    24. Given the risks associated with transporting large 
quantities of flammable liquids, are there measures that PHMSA 
should consider as an alternative or in addition to addressing 
material properties such as vapor pressure or flammability range, 
etc.?

B. Safety Questions

    1. Do the current HMR adequately consider the risks that 
flammable liquids containing dissolved flammable or nonflammable 
gases present?
    2. Should vapor pressure be used to delineate gases (and liquids 
with high vapor pressures) from liquids with low vapor pressures? If 
so, is the current definition of a gas sufficient or should a 
different threshold (i.e., vapor pressure or temperature) be 
utilized? Answers should also include specification to measurement 
method (including V/L ratio) and sampling method, if necessary, for 
that determination when recommending different thresholds.
    3. Should unrefined petroleum products not completely gaseous at 
20 [deg]C but having a vapor pressure greater than 300 kPa at 50 
[deg]C be subjected to the testing in Sec.  173.115(a)(2) to 
determine whether that material should be regulated as flammable 
gas? If yes, what affect would this have on other Class 3 hazardous 
materials?
    4. Should PHMSA consider adopting a new Hazardous Materials 
Table (HMT; Sec.  172.101) entry for petroleum crude oil with a 
high-concentration of dissolved gases that is similar to the entry 
for UN3494, Petroleum sour crude oil, flammable, toxic? \27\
---------------------------------------------------------------------------

    \27\ 49 CFR 172.102(c)(1), Special Provision 343--A bulk 
packaging that emits hydrogen sulfide in sufficient concentration 
that vapors evolved from the crude oil can present an inhalation 
hazard must be marked as specified in Sec.  172.327of this part.
---------------------------------------------------------------------------

    5. Do flammable liquids containing dissolved flammable and 
nonflammable gases have implications for the response community, 
such as hazard communication or response considerations, that the 
agency should consider?
    6. If Petition P-1669 were adopted, would there be an impact in 
the transportation of other flammable products, and if so, what 
would they be?

C. Vapor Pressure Questions

    1. Would the use of RVP, True Vapor Pressure, VPCRx, or some 
other standard be the best method for measuring vapor pressure for 
classification and packaging? Does this method appropriately account 
for liquids containing dissolved flammable and non-flammable gases 
under non-equilibrium conditions? What volume to liquid ratio and 
temperature would be most suitable? Why?
    2. Would the definition for ``live'' and ``dead'' crude oils 
from ASTM D6377 and other standards be relevant or useful in setting 
a vapor pressure limit?
    3. Is there a unit of measure for how much dissolved flammable 
and non-flammable gases contribute to the vapor pressure, 
volatility, and flammability of crude oil?
    4. Are there any materials currently classified as a flammable 
liquid within the HMR that would be impacted by a vapor pressure 
threshold?
    5. What are the observed vapor pressures of tight crude oil in 
various stages of production, stabilization, and transportation? 
Please explain the conditions under which sampling and testing was 
performed.
    6. Have any other nations established vapor pressure limits for 
transporting crude oil or other flammable liquids by any mode? If 
so, which nations, what limits do they use, and what information did 
they use to support the specific limits?
    7. Petition P-1669 recommends a RVP of no greater than 9.0 psi. 
In contrast, the NDIC implemented a maximum vapor pressure threshold 
of 13.7 psi, (VPCR4 as defined in ASTM D6377). If PHMSA 
were to establish a national vapor pressure limit, what should it 
be?
    8. Has any source compiled comprehensive and reliable 
information regarding the vapor pressures of Class 3 flammable 
liquid hazardous materials involved in transportation accidents, as 
well as information about the nature, characteristics and 
consequences associated with those accidents? Has any source 
conducted statistical or other scientific analysis regarding the 
relationship between vapor pressure and the consequences of 
transportation accidents?

[[Page 5507]]

D. Packaging Questions

    1. Would further limiting the filling capacity be an effective 
method for reducing the risks associated with Class 3 hazardous 
materials containing dissolved gases?

VI. Regulatory Review and Notices

A. Executive Order 12866, Executive Order 13563, Executive Order 13610, 
and DOT Regulatory Policies and Procedures

    This ANPRM is considered a significant regulatory action under 
section 3(f) of Executive Order 12866 and was reviewed by the Office of 
Management and Budget (OMB). It is considered a significant regulatory 
action under the Regulatory Policies and Procedures order issued by the 
Department of Transportation. 44 FR 11034 (Feb. 26, 1979).
    Executive Orders 12866, ``Regulatory Planning and Review,'' 58 FR 
51735 (Oct. 4, 1993), and 13563, ``Improving Regulation and Regulatory 
Review,'' 76 FR 3821 (Jan. 21, 2011), require agencies to regulate in 
the ``most cost-effective manner,'' to make a ``reasoned determination 
that the benefits of the intended regulation justify its costs,'' and 
to develop regulations that ``impose the least burden on society.'' 
Executive Order 13610, ``Identifying and reducing Regulatory Burdens,'' 
77 FR 28469 (May 14, 2012), urges agencies to conduct retrospective 
analyses of existing rules to examine whether they remain justified and 
whether they should be modified or streamlined in light of changed 
circumstances, including the rise of new technologies.
    Additionally, Executive Orders 12866, 13563, and 13610 require 
agencies to provide a meaningful opportunity for public participation. 
Accordingly, PHMSA invites comments on these considerations, including 
any cost or benefit figures or factors, alternative approaches, and 
relevant scientific, technical and economic data. These comments, along 
with the information provided by the New York State Office of the 
Attorney General, will help PHMSA evaluate whether regulatory action is 
warranted and appropriate.

B. Executive Order 13132

    Executive Order 13132, ``Federalism,'' 64 FR 43255 (Aug. 10, 1999), 
requires agencies to assure meaningful and timely input by State and 
local officials in the development of regulatory policies that may have 
``substantial direct effects on the States, on the relationship between 
the national government and the States, or on the distribution of power 
and responsibilities among the various levels of government.'' PHMSA 
invites State and local governments with an interest in this rulemaking 
to comment on any effect that may result if Petition P-1669 is adopted.

C. Executive Order 13175

    Executive Order 13175, ``Consultation and Coordination and Indian 
Tribal Governments,'' 65 FR 67249 (Nov. 9, 2000), requires agencies to 
assure meaningful and timely input from Indian tribal government 
representatives in the development of rules that significantly or 
uniquely affect Indian communities by imposing ``substantial direct 
compliance costs'' or ``substantial direct effects'' on such 
communities or the relationship and distribution of power between the 
Federal Government and Indian tribes. PHMSA invites Indian tribal 
governments to provide comments on the costs and effects the petitions 
and recommendations could have on them, if adopted.

D. Regulatory Flexibility Act, Executive Order 13272, and DOT Policies 
and Procedures

    Under the Regulatory Flexibility Act of 1980, 5 U.S.C. 601, et 
seq., PHMSA must consider whether a rulemaking would have a 
``significant economic impact on a substantial number of small 
entities.'' ``Small entities'' include small businesses, not-for-profit 
organizations that are independently owned and operated and are not 
dominant in their fields, and governmental jurisdictions with 
populations under 50,000.
    It is possible that if PHMSA proposes to adopt the revisions 
suggested in Petition P-1669, there may be a ``significant economic 
impact on a substantial number of small entities.'' As such, PHMSA 
would like small entities' input on the issues presented in this ANPRM. 
If you believe that revisions to the HMR would have a significant 
economic impact on a substantial number of small entities, please 
provide information on such impacts.
    Any future proposed rule would be developed in accordance with 
Executive Order 13272, ``Proper Consideration of Small Entities in 
Agency Rulemaking,'' 68 FR 7990 (Feb. 19, 2003), and DOT's procedures 
and policies to promote compliance with the Regulatory Flexibility Act 
to ensure that potential impacts on small entities of a regulatory 
action are properly considered.

E. Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act, 44 U.S.C. 3501 et 
seq., 5 CFR 1320.8(d) requires that PHMSA provide interested members of 
the public and affected agencies an opportunity to comment on 
information collection and recordkeeping requests. This ANPRM does not 
impose new information collection requirements. PHMSA specifically 
requests comments on the information collection and recordkeeping 
burdens that may result if Petition P-1669 is adopted.

F. Environmental Assessment

    The National Environmental Policy Act of 1969, 42 U.S.C. 4321-4375, 
requires that Federal agencies analyze proposed actions to determine 
whether the action will have a significant impact on the human 
environment. The Council on Environmental Quality (CEQ) regulations 
require Federal agencies to conduct an environmental review considering 
(1) the need for the proposed action, (2) alternatives to the proposed 
action, (3) probable environmental impacts of the proposed action and 
alternatives, and (4) the agencies and persons consulted during the 
consideration process. See 40 CFR 1508.9(b). PHMSA welcomes any data or 
information related to environmental impacts that may result if 
Petition P-1669 is adopted, as well as possible alternatives and their 
environmental impacts.

G. Privacy Act

    Anyone is able to search the electronic form of any written 
communications and comments received into any of our dockets by the 
name of the individual submitting the document (or signing the 
document, if submitted on behalf of an association, business, labor 
union, etc.). You may review DOT's complete Privacy Act Statement in 
the Federal Register published on April 11, 2000, see 65 FR 19477, or 
you may visit http://www.regulations.gov.

H. Executive Order 13609 and International Trade Analysis

    Under Executive Order 13609, ``Promoting International Regulatory 
Cooperation,'' 77 FR 26413 (May 4, 2012), agencies must consider 
whether the impacts associated with significant variations between 
domestic and international regulatory approaches are unnecessary or may 
impair the ability of American businesses to export and compete 
internationally. In meeting shared challenges involving health, safety, 
labor, security, environmental, and other issues, regulatory approaches 
developed through international cooperation can provide equivalent 
protection to standards developed independently while also minimizing 
unnecessary differences.

[[Page 5508]]

    Similarly, the Trade Agreements Act of 1979, Pub. L. 96-39, as 
amended by the Uruguay Round Agreements Act, Pub. L. 103-465, prohibits 
Federal agencies from establishing any standards or engaging in related 
activities that create unnecessary obstacles to the foreign commerce of 
the United States. For purposes of these requirements, Federal agencies 
may participate in the establishment of international standards, so 
long as the standards have a legitimate domestic objective, such as 
providing for safety, and do not operate to exclude imports that meet 
this objective. The statute also requires consideration of 
international standards and, where appropriate, that they be the basis 
for U.S. standards.
    PHMSA participates in the establishment of international standards 
in order to protect the safety of the American public, and PHMSA has 
assessed the effects of the proposed rule to ensure that it does not 
cause unnecessary obstacles to foreign trade. Accordingly, this 
rulemaking is consistent with Executive Order 13609 and PHMSA's 
obligations under the Trade Agreement Act, as amended.
    PHMSA welcomes any data or information related to international 
impacts that may result if Petition P-1669 is adopted, as well as 
possible alternatives and their international impacts. Please describe 
the impacts and the basis for the comment.

I. Statutory/Legal Authority for This Rulemaking

    This ANPRM is published under the authority of 49 U.S.C. 5103(b), 
which authorizes the Secretary of Transportation to ``prescribe 
regulations for the safe transportation, including security, of 
hazardous materials in intrastate, interstate, and foreign commerce.'' 
The intent of this ANPRM is to address the safety concerns raised by 
Petition P-1669 in respect to the transportation of hazardous materials 
in commerce. Our goal in this ANPRM is to gather the necessary 
information to determine a course of action in a potential Notice of 
Proposed Rulemaking (NPRM).

J. Regulation Identifier Number (RIN)

    A regulation identifier number (RIN) is assigned to each regulatory 
action listed in the Unified Agenda of Federal Regulations. The 
Regulatory Information Service Center publishes the Unified Agenda in 
April and October of each year. The RIN contained in the heading of 
this document can be used to cross-reference this action with the 
Unified Agenda.

K. Executive Order 13211

    Executive Order 13211, 66 FR 28355 (May 22, 2001), requires Federal 
agencies to prepare a Statement of Energy Effects for any ``significant 
energy action.'' Under the executive order, a ``significant energy 
action'' is defined as any action by an agency (normally published in 
the Federal Register) that promulgates, or is expected to lead to the 
promulgation of, a final rule or regulation (including a notice of 
inquiry, ANPRM, and NPRM) that (1)(i) is a significant regulatory 
action under Executive Order 12866 or any successor order and (ii) is 
likely to have a significant adverse effect on the supply, 
distribution, or use of energy; or (2) is designated by the 
Administrator of the Office of Information and Regulatory Affairs as a 
significant energy action.
    PHMSA welcomes any data or information related to energy impacts 
that may result if P-1669 is adopted, as well as possible alternatives 
and their energy impacts. Please describe the impacts and the basis for 
the comment.

    Issued in Washington, DC, on January 10, 2017, under the 
authority of 49 U.S.C. 5103(b).
Anthony R. Foxx,
Secretary of Transportation.
[FR Doc. 2017-00913 Filed 1-17-17; 8:45 am]
 BILLING CODE 4910-60-P



                                                                         Federal Register / Vol. 82, No. 11 / Wednesday, January 18, 2017 / Proposed Rules                                               5499

                                                    environmental performance criteria                      rail. PHMSA will use the comments in                   any personal information the
                                                    developed or adopted by voluntary                       response to this ANPRM to help assess                  commenter provides, to
                                                    consensus standards bodies consistent with              and respond to the petition and to                     www.regulations.gov, as described in
                                                    section 12(d) of the National Technology                evaluate any other potential regulatory                the system of records notice (DOT/ALL–
                                                    Transfer and Advancement Act of 1995 (Pub.
                                                    L. 104–113) and Office of Management and
                                                                                                            actions related to sampling and testing                14 FDMS), which can be reviewed at
                                                    Budget Circular A–119.                                  of crude oil and other Class 3 hazardous               www.dot.gov/privacy.
                                                      (b) Unless approved in writing by the                 materials. PHMSA will also evaluate the                FOR FURTHER INFORMATION CONTACT: Lad
                                                    Contracting Officer, in the performance of              potential safety benefits and costs of                 Falat, Director, Engineering and
                                                    this contract, the Contractor shall—                    utilizing vapor pressure thresholds                    Research, (202) 366–4545, Office of
                                                      (1) Deliver, furnish for Government use;              within the hazardous materials                         Hazardous Materials Safety, Pipeline
                                                      (2) Incorporate into the construction of a            classification process for unrefined                   and Hazardous Materials Safety
                                                    public building or public work; or                      petroleum-based products and Class 3
                                                      (3) Furnish for Contractor use at a
                                                                                                                                                                   Administration, U.S. Department of
                                                                                                            hazardous materials.                                   Transportation, 1200 New Jersey Ave.
                                                    Federally-controlled facility sustainable
                                                    products and services as specified in the               DATES: Comments must be received by                    SE., Suite E21–314, Washington, DC
                                                    contract.                                               March 20, 2017.                                        20590–0001.
                                                      (c) Sustainable products and services must            ADDRESSES: You may submit comments                     SUPPLEMENTARY INFORMATION:
                                                    meet the applicable standard, specifications,           identified by the docket number
                                                    or other program requirements at the time of            PHMSA–2016–0077 (HM–251D) and the                      Table of Contents
                                                    submission of an offer or a quote.
                                                                                                            relevant petition number by any of the                 I. Executive Summary
                                                      (d) Visit the Green Procurement                                                                              II. Objective of This ANPRM
                                                    Compilation at https://www.sftool.gov/                  following methods:
                                                    greenprocurement for a comprehensive list of              • Federal eRulemaking Portal: http://                III. Petition P–1669 & Other Efforts To Set a
                                                                                                            www.regulations.gov Follow the                               Vapor Pressure Standard for Crude Oil
                                                    Federal Governmentwide sustainable product                                                                        A. Summary & Supporting Data for Petition
                                                    and service requirements.                               instructions for submitting comments.
                                                                                                                                                                         P–1669
                                                                                                              • Fax: 1–202–493–2251.                                  B. North Dakota Industrial Commission
                                                       (End of clause)
                                                                                                              • Mail: Docket Management System;                          (NDIC) Oil Conditioning Order No.
                                                    [FR Doc. 2017–00480 Filed 1–17–17; 8:45 am]             U.S. Department of Transportation,                           25417
                                                    BILLING CODE 6820–EP–P                                  West Building, Ground Floor, Room                      IV. Background Information
                                                                                                            W12–140, Routing Symbol M–30, 1200                        A. Current HMR Requirements for the
                                                                                                            New Jersey Avenue SE., Washington,                           Classification of Unrefined Petroleum-
                                                    DEPARTMENT OF TRANSPORTATION                            DC 20590.                                                    Based Products
                                                                                                              • Hand Delivery: To the Docket                          B. High-Hazard Flammable Train (HHFT)
                                                    Pipeline and Hazardous Materials                        Management System; Room W12–140                              Rulemaking
                                                    Safety Administration                                                                                             C. Sandia Study
                                                                                                            on the ground floor of the West                           D. PHMSA Actions
                                                                                                            Building, 1200 New Jersey Avenue SE.,                     E. Pipeline Operators
                                                    49 CFR Parts 171, 172, 173, 174, 177,                   Washington, DC 20590, between 9 a.m.                      F. Accident History and Vapor Pressure
                                                    178, 179, and 180                                       and 5 p.m., Monday through Friday,                           Levels
                                                    [Docket No. PHMSA–2016–0077 (HM–251D)]                  except Federal holidays.                               V. Comments and Questions
                                                                                                              Instructions: All submissions must                      A. General Questions
                                                    RIN 2137–AF24                                           include the agency name and docket                        B. Safety Questions
                                                                                                            number for this ANPRM at the                              C. Vapor Pressure Questions
                                                    Hazardous Materials: Volatility of                                                                                D. Packaging Questions
                                                    Unrefined Petroleum Products and                        beginning of the comment. To avoid
                                                                                                                                                                   VI. Regulatory Review and Notices
                                                    Class 3 Materials                                       duplication, please use only one of
                                                                                                                                                                      A. Executive Order 12866, Executive Order
                                                                                                            these four methods. All comments                             13563, Executive Order 13610, and DOT
                                                    AGENCY: Pipeline and Hazardous                          received will be posted without change                       Regulatory Policies and Procedures
                                                    Materials Safety Administration                         to http://www.regulations.gov and will                    B. Executive Order 13132
                                                    (PHMSA), Department of Transportation                   include any personal information you                      C. Executive Order 13175
                                                    (DOT or Department).                                    provide. All comments received will be                    D. Regulatory Flexibility Act, Executive
                                                    ACTION: Advance notice of proposed                      posted without change to the Federal                         Order 13272, and DOT Policies and
                                                                                                            Docket Management System (FDMS),                             Procedures
                                                    rulemaking (ANPRM).                                                                                               E. Paperwork Reduction Act
                                                                                                            including any personal information.
                                                                                                                                                                      F. Environmental Assessment
                                                    SUMMARY:    PHMSA is considering                          Docket: For access to the dockets to
                                                                                                                                                                      G. Privacy Act
                                                    revising the Hazardous Materials                        read background documents or                              H. Executive Order 13609 and
                                                    Regulations (HMR) to establish vapor                    comments received, go to http://                             International Trade Analysis
                                                    pressure limits for unrefined petroleum-                www.regulations.gov or DOT’s Docket                       I. Statutory/Legal Authority for This
                                                    based products and potentially all Class                Operations Office located at U.S.                            Rulemaking
                                                    3 flammable liquid hazardous materials                  Department of Transportation, West                        J. Regulation Identifier Number (RIN)
                                                    that would apply during the                             Building, Ground Floor, Room W12–                         K. Executive Order 13211
                                                    transportation of the products or                       140, Routing Symbol M–30, 1200 New                     I. Executive Summary
                                                    materials by any mode. PHMSA is                         Jersey Avenue SE., Washington, DC
                                                    currently assessing the merits of a                     20590.                                                    On December 1, 2015, PHMSA
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                                                    petition for rulemaking submitted by the                  Privacy Act: Anyone can search the                   received a petition for rulemaking from
                                                    Attorney General of the State of New                    electronic form of all comments                        the New York State Office of the
                                                    York regarding vapor pressure standards                 received into any of our dockets by the                Attorney General (New York AG)
                                                    for the transportation of crude oil. The                name of the individual submitting the                  proposing amendments to the
                                                    petition requests that PHMSA                            comments (or signing the comment, if                   Hazardous Materials Regulations (HMR;
                                                    implement a Reid Vapor Pressure (RVP)                   submitted on behalf of an association,                 49 CFR parts 171–180) applicable to the
                                                    limit less than 9.0 pounds per square                   business, labor union, etc.). DOT posts                transportation of crude oil by rail.
                                                    inch (psi) for crude oil transported by                 these comments, without edit, including                PHMSA designated the petition as


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                                                    5500                 Federal Register / Vol. 82, No. 11 / Wednesday, January 18, 2017 / Proposed Rules

                                                    Petition P–1669 1 (P–1669 or the                        (SAE) Plan 5 (the Sandia Study                         U.S.C. 553(e). In accordance with
                                                    petition). In P–1669, the New York AG                   discussed in Section IV.C of this                      PHMSA’s rulemaking procedure
                                                    asks PHMSA to add a new paragraph                       ANPRM will implement the SAE Plan),                    regulations in 49 CFR part 106,
                                                    (a)(6) to existing § 174.310 requiring all              as well as recommendations for                         interested persons may ask PHMSA to
                                                    crude oil transported by rail to have a                 regulations and legislation based on the               add, amend, or repeal a regulation by
                                                    Reid vapor pressure (RVP) of less than                  findings to improve the safe transport of              filing a petition for rulemaking along
                                                    9.0 pounds per square inch (psi).2 The                  crude oil. The findings of the Sandia                  with information and arguments
                                                    petition is based on the premise that                   Study will help inform the Department                  supporting the requested action
                                                    limiting the product’s vapor pressure                   as it moves forward.                                   (§ 106.95).
                                                    will reduce the risk of death or damage                                                                           The petition is based on the premise
                                                                                                            II. Objective of This ANPRM                            that limiting the vapor pressure, as
                                                    from fire or explosion in the event of an
                                                    accident. Separately, the North Dakota                     Federal hazardous materials law                     measured by RVP, of crude oil in rail
                                                    Industrial Commission (NDIC)                            authorizes the Secretary to ‘‘prescribe                transport below 9.0 psi will reduce the
                                                    implemented a maximum vapor                             regulations for the safe transportation,               risk of death or damage from fire or
                                                    pressure threshold of 13.7 psi, VPCRx,                  including security, of hazardous                       explosion in the event of an accident.
                                                    Reid equivalent.3 Therefore, in this                    materials in intrastate, interstate, and               However, in order to grant the petition,
                                                    ANPRM, PHMSA is asking a series of                      foreign commerce.’’ 49 U.S.C.                          PHMSA would have to:
                                                    questions seeking input as to whether                   5103(b)(1). The Secretary has delegated                   • Determine the best metric or
                                                    there should be national vapor pressure                 this authority to PHMSA, 49 CFR                        combination of metrics (vapor pressure
                                                    thresholds for petroleum products and/                  1.97(b). The HMR are designed to                       or other metric) for measuring and
                                                    or other Class 3 hazardous materials                    achieve three primary goals: (1) Help                  controlling fire and explosion risk in
                                                    and, if so, what that thresholds should                 ensure that hazardous materials are                    crude oil transport;
                                                    be.                                                     packaged and handled safely and                           • Quantify the improvement in safety,
                                                       PHMSA has long stressed that it is the               securely during transportation; (2)                    if any, due to risk reduction from
                                                    offeror’s responsibility under § 173.22 of              provide effective communication to                     implementation of vapor pressure
                                                    the HMR to ensure that hazardous                        transportation workers and emergency                   thresholds at varying levels;
                                                                                                            responders of the hazards of the                          • Identify the measurement
                                                    materials are properly classified. To
                                                                                                            materials being transported; and (3)                   techniques necessary to establish
                                                    reinforce this requirement, the HMR
                                                                                                            minimize the consequences of an                        compliance;
                                                    also require offerors of unrefined                                                                                • Identify offerors’ compliance
                                                    petroleum-based products, including                     accident or incident should one occur.
                                                                                                            The hazardous material regulatory                      strategies and market impacts with RVP
                                                    crude oil, to institute a sampling and                                                                         standards at varying levels of
                                                    testing program in accordance with                      system is a risk management system that
                                                                                                            is prevention-oriented and focused on                  stringency, and estimate their economic
                                                    § 173.41.4 There are numerous industry                                                                         costs and environmental impacts;
                                                    standards for sampling and determining                  identifying safety or security hazards
                                                                                                            and reducing the probability and                          • Identify other regulations and
                                                    vapor pressure of crude oil and other                                                                          industry practices, such as volatile
                                                    Class 3 hazardous materials.                            consequences of a hazardous material
                                                                                                            release.                                               organic compound emissions standards
                                                       When taking additional steps to better                  Under the HMR, hazardous materials                  imposed through the Clean Air Act, or
                                                    understand hazardous materials and the                  are categorized into hazard classes and                State regulations, or pipeline operator
                                                    risks those materials may pose in                       packing groups based on analysis of and                RVP standards, potentially affecting
                                                    transportation, DOT always strives to                   experience with the risks they present                 compliance strategies and costs, and
                                                    rely on the best available science and                  during transportation. The HMR: (1)                    safety benefits;
                                                    information to inform its decision                      Specify appropriate packaging and                         • Evaluate the extent to which use of
                                                    making. Section 7309 of the ‘‘Fixing                    handling requirements for hazardous                    DOT Specification 117 tank cars
                                                    America’s Surface Transportation Act of                 materials based on this classification                 mitigates the risk of transporting crude
                                                    2015,’’ or the ‘‘FAST Act,’’ directs the                and require a shipper to communicate                   oil;
                                                    Secretary of Energy, in cooperation with                the material’s hazards through the use of                 • Compare compliance costs of
                                                    the Secretary of Transportation                         shipping papers, package marking and                   mitigation strategies with risk reduction
                                                    (Secretary), to submit a report to                      labeling, and vehicle placarding; (2)                  from adoption of the petition; and
                                                    Congress that contains results of the                                                                             • Balance the benefits and costs in
                                                                                                            require shippers to provide emergency
                                                    Crude Oil Characteristics Research                                                                             setting the level of the chosen metric. If
                                                                                                            response information applicable to the
                                                    Sampling, Analysis and Experiment                                                                              RVP is the best metric, PHMSA would
                                                                                                            specific hazard or hazards of the
                                                                                                                                                                   have to determine that a particular RVP
                                                                                                            material being transported; and (3)
                                                       1 PHMSA placed a copy of the petition in docket                                                             limit is preferable to any other limit. For
                                                                                                            mandate training requirements for
                                                    number PHMSA-2015-0253, which is accessible at                                                                 example, if 9.0 psi is chosen, PHMSA
                                                    https://www.regulations.gov/docket?D=PHMSA-
                                                                                                            persons who prepare hazardous
                                                                                                                                                                   would need to show that 9.0 psi is
                                                    2015-0253.                                              materials for shipment or transport
                                                                                                                                                                   preferable to some other potential
                                                       2 RVP was a common measurement of the vapor          hazardous materials in commerce. The
                                                                                                                                                                   limits, such as 8.0 or 11.0. This would
                                                    pressure of flammable liquids such as gasoline and      HMR also include operational
                                                    crude oil.                                                                                                     include considering whether there is a
                                                                                                            requirements applicable to each mode of
                                                       3 RVP uses different equipment and procedures                                                               ‘‘safe’’ level of RVP below which risks
                                                    than Reid equivalent. For example, Reid equivalent
                                                                                                            transportation.
                                                                                                                                                                   are minimal (which would lead to little
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                                                    is done using closed conditions to preserve the            The Administrative Procedure Act
                                                    lighter ends, while RVP is conducted in an open         (APA), 5 U.S.C. 551, et seq. requires                  safety benefit from reducing RVP
                                                    test chamber.                                           Federal agencies to give interested                    further), or some level of RVP where
                                                       4 ‘‘Unrefined petroleum-based products’’ refers to
                                                                                                            persons the right to petition an agency                risks do not further increase.
                                                    hazardous hydrocarbons that are extracted from the                                                                In this ANPRM, PHMSA is seeking
                                                    earth and have not yet been refined. In the high-       to issue, amend, or repeal a rule. 5
                                                                                                                                                                   public comment to obtain the views of
                                                    hazard flammable trains (HHFT) final rule, PHMSA
                                                    replaced ‘‘mined liquids and gases’’ with                 5 http://energy.gov/sites/prod/files/2016/06/f32/    those who are affected by the NDIC
                                                    ‘‘unrefined petroleum-based products’’ based on         Crude%20Oil%20Characteristics%20Research%20            Order, as well as those who are likely
                                                    comments received in response to the HHFT NPRM.         SAE%20Plan.pdf.                                        to be impacted by the changes proposed


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                                                                              Federal Register / Vol. 82, No. 11 / Wednesday, January 18, 2017 / Proposed Rules                                                                  5501

                                                    in the petition, including those who are                           more broadly, to consider a focused and                       rail in the United States at an
                                                    likely to benefit from, be adversely                               well-developed regulatory path forward                        appropriate level that is less than 9.0
                                                    affected by, or potentially be subject to                          that reflects the views of all relevant                       psi.’’
                                                    additional regulation. Additionally,                               parties.                                                         A copy of the petition is available in
                                                    PHMSA seeks comment from                                           III. Petition P–1669 & Other Efforts To                       the public docket for this ANPRM, and
                                                    stakeholders regarding the many factors                            Set a Vapor Pressure Standard for                             can be viewed at either http://
                                                    PHMSA must consider when evaluating                                Crude Oil                                                     www.regulations.gov or DOT’s Docket
                                                    the need for and impacts of regulatory                                                                                           Operations Office (see ADDRESSES
                                                    changes. In general, PHMSA requests                                A. Summary & Supporting Data for P–                           section above).
                                                    comments on:                                                       1669                                                             Petition P–1669 makes the following
                                                       • Safety benefits of any proposed                                  In Petition P–1669,6 the New York                          claims to support the establishment of a
                                                    regulatory change, including the                                   State Office of the Attorney General                          vapor pressure threshold for crude oil.
                                                    relevant scientific or other empirical                             petitioned PHMSA to revise § 174.310 to                       Specifically, the petition asserts:
                                                    support;                                                           establish a nationwide vapor pressure                            1. Shipments of Bakken crude oil by
                                                       • Economic impacts, including data,                             standard for crude oil shipped by rail                        rail are vastly expanding;
                                                    on the costs and benefits; and                                     throughout the United States. The                                2. A disturbing trend of train
                                                       • Ease of compliance with the                                   petition states, ‘‘At present, no federal                     explosions [exists] involving shipments
                                                    regulatory changes that Petition P–1669                            regulation exists to limit the volatility of                  of Bakken crude oil;
                                                    requests.                                                          crude oil shipped in railroad tank cars.                         3. Bakken crude oil is highly volatile
                                                       This ANPRM will provide an                                      This petition for rulemaking seeks to                         and extremely flammable; and
                                                    opportunity for public participation in                            close that loophole and reduce the risk                          4. The volatility of crude oil can be
                                                    the development of regulatory                                      of harm to American communities.’’ The                        effectively reduced with existing
                                                    amendments and promote greater                                     petition further requests PHMSA to                            technology.
                                                    exchange of information and                                        ‘‘assert its rulemaking authority, as                            The petition also provides the
                                                    perspectives among the various                                     delegated by the Secretary of                                 following table to highlight the vapor
                                                    stakeholders. PHMSA issued this notice                             Transportation, and establish a federal                       pressures of the crude oil involved in
                                                    to help respond to Petition P–1669 and,                            RVP limit for crude oil transported by                        several high-profile train accidents:

                                                                                                       Source                                                                    Reid Vapor pressure of Bakken crude oil

                                                    Lac-Mégantic, Quebec (July 6, 2013) .......................................................................       Average between 9.0 to 9.5 psi.7
                                                    Heimdal, North Dakota (May 6, 2015) ......................................................................         10.8 psi.8
                                                    PHMSA Operation Safe Delivery ..............................................................................       Average of 12.3 psi.9
                                                    Mt. Carbon, West Virginia (February 16, 2015) .......................................................              13.9 psi.10
                                                    Lynchburg, Virginia (April 2015) ...............................................................................   Average of 14.3 psi.11



                                                       In addition, Petition P–1669                                    gas-liquid separator and/or an emulsion                       pressure is relative to a vacuum rather
                                                    summarizes the NDIC Standards                                      heater-treater capable of separating the                      than the ambient atmospheric pressure.
                                                    (discussed in Section IV.E of this                                 gaseous and liquid hydrocarbons,
                                                    ANPRM) and the HHFT final rule                                                                                                   IV. Background Information
                                                                                                                       prohibits blending of Bakken crude oil
                                                    (discussed in Section IV.B of this                                 with specific materials, and requires                           In 1990, the Research and Special
                                                    ANPRM) arguing in support of a new                                 crude oil produced to have a Vapor                            Programs Administration (RSPA), the
                                                    RVP limit of less than 9.0 psi for the safe                        Pressure (using ASTM D6377) not                               predecessor agency to PHMSA,
                                                    transportation of crude oil by rail.                               greater than 13.7 psi or 1 psi less than                      published a final rule under Docket
                                                    However, the petition did not identify                             the vapor pressure of stabilized crude                        HM–181 which adopted a new
                                                    specific costs and benefits, or robust                             oil.                                                          classification system for gases, which
                                                    empirical information, to support the
                                                    proposed limit.                                                      According to NDIC, the measurements                         assigned new divisions for flammable
                                                                                                                       taken under the Order use the ASTM                            gas (2.1), non-flammable, non-toxic
                                                    B. North Dakota Industrial Commission                              D6377 with a vapor to liquid (V/L) ratio                      compressed gas (2.2), and toxic/
                                                    Oil Conditioning Order No. 25417                                   of 4 and a temperature of 100 °F (37.8                        poisonous gases (2.3). The new system
                                                      In December 2014, NDIC issued Oil                                °C), which is equivalent to a Reid Vapor                      defined flammable gases according to
                                                    Conditioning Order No. 25417 (Order),                              Pressure measurement. The Order                               their (1) state as a gas at ambient
                                                    which requires operators of Bakken                                 requires the 13.7 psi limit to be                             conditions (i.e., 14.7 psia (101.4 kPa)
                                                    crude oil produced in the state of North                           measured as pounds per square inch                            and 68 °F (20 °C)) and (2) flammability,
                                                    Dakota to separate the gaseous and light                           absolute (psia) and not pounds per                            as determined by existing flammability
                                                    hydrocarbons from all Bakken crude                                 square inch gauge (psig). According to                        limits. There were no vapor pressure
                                                    oil.12 The Order requires the use of a                             NDIC, psia is used to make clear that the                     requirements.
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                                                      6 https://www.regulations.gov/docket?D=PHMSA-                    volatility due to evaporation loss of very light              23_14_Operation_Safe_Delivery_Report_
                                                    2015-0253.                                                         constituents.’’                                               final_clean.pdf.
                                                      7 See Transportation Safety Board (TSB) of                         8 See Stern, M., ‘‘How to Prevent an Oil Train                 10 See Gold, R., ‘‘Crude on Derailed Train

                                                    Canada Laboratory Report LP148/2013, Aug. 19,                      Disaster,’’ N.Y. Times, May 19, 2015.                         Contained High Level of Gas,’’ Wall Street Journal,
                                                    2014. The TSB Report notes that the vapor pressure                   9 ‘‘Operation Safe Delivery Update,’’ Pipeline and          March 2, 2015.
                                                    measurements of these samples may be lower than                    Hazardous Materials Safety Administration, at 16,
                                                                                                                                                                                        11 See Sobczak, B., ‘‘Crude in Va. oil-train

                                                    the vapor pressure of the Bakken crude oil in the                                                                                derailment was highly volatile—safety data,’’
                                                                                                                       available at: http://www.phmsa.dot.gov/pv_
                                                    Lac-Mégantic accident: ‘‘The occurrence crude oil                                                                               EnergyWire, E&E Publishing, LLC, Aug. 25, 2015.
                                                                                                                       obj_cache/pv_obj_id_8A422ABDC16B72E5F166
                                                    samples were taken at atmospheric pressure. This                                                                                    12 See https://www.dmr.nd.gov/oilgas/Approved-

                                                    could lead to an underestimation of the crude oil[’]s              FE34048CCCBFED3B0500/filename/07_                             or25417.pdf.



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                                                    5502                         Federal Register / Vol. 82, No. 11 / Wednesday, January 18, 2017 / Proposed Rules

                                                       RSPA adopted the definition of a                                    the related definition of flammable                      ‘‘separator’’ to separate the gas, oil, and
                                                    ‘‘gas’’ from the United Nations (UN)                                   compressed gas, contemplated using the                   water from the crude oil produced. As
                                                    Transport of Dangerous Goods Model                                     RVP testing method described in ASTM                     such, there are multiple hazardous
                                                    Regulation in an effort to harmonize its                               D 323.                                                   liquids that are commonly shipped from
                                                    regulations with international standards                                                                                        the well-site, including crude oil,
                                                                                                                           A. Current HMR Requirements for the
                                                    in 1994. The HM–181 final rule did not                                                                                          condensate, and natural gas liquids.13 A
                                                                                                                           Classification of Unrefined Petroleum-
                                                    address a particular method of testing                                                                                          limited separation process, which is
                                                                                                                           Based Products
                                                    vapor pressure, or otherwise address                                                                                            insufficient to remove the lightest
                                                    how the new definition would impact                                      Unrefined petroleum-based products,                    components, could increase the
                                                    the existing definition of flammable gas                               including crude oil, have variable                       volatility of the crude oil. In accordance
                                                    in 49 CFR 173.115. However, as late as                                 chemical compositions. Differences in                    with § 173.22 of the HMR, the offeror
                                                    1990, RSPA’s definitions of gases were                                 the chemical makeup of the raw                           must consider all hazards when
                                                    limited to gases under pressure, e.g.,                                 material can vary across different times                 classifying a hazardous material. The
                                                    compressed gases, cryogenic liquids,                                   and wellheads. Typically, organic                        table below identifies key classification
                                                    and refrigerant or dispersant gases. Both                              materials from oil and gas production at                 considerations for unrefined petroleum-
                                                    the definition of compressed gas, and                                  a wellhead are passed through a                          based products: 14

                                                                            CURRENT CLASSIFICATION CONSIDERATIONS FOR UNREFINED PETROLEUM-BASED PRODUCTS 15
                                                          Class                  Division                                Name                                                               Definition

                                                    2 ...................    2.1 ...............      Flammable Gas ................................    Any material which is a gas at 68 °F or less and 14.7 psia of pressure (a
                                                                                                                                                          material which has a boiling point of 68 °F or less at 14.7 psia)
                                                                                                                                                          which—
                                                                                                                                                        (1) Is ignitable at 14.7 psia when in a mixture of 13 percent or less by
                                                                                                                                                          volume with air; or
                                                                                                                                                        (2) Has a flammable range at 14.7 psia with air of at least 12 percent re-
                                                                                                                                                          gardless of the lower limit.
                                                                             2.2 ...............      Non-flammable,             Non-poisonous          Any material (or mixture) which—(1) Exerts in the packaging a gauge
                                                                                                        compressed gas.                                   pressure of 200 kPa (29.0 psig/43.8 psia) or greater at 68 °F, is a liq-
                                                                                                                                                          uefied gas or is a cryogenic liquid, and (2) Does not meet the definition
                                                                                                                                                          of Division 2.1 or 2.3.
                                                                             2.3 ...............      Gas Poisonous by Inhalation ...........           A material which is a gas at 68 °F or less and a pressure of 14.7 psia (a
                                                                                                                                                          material which has a boiling point of 68 °F or less at 14.7 psia) and
                                                                                                                                                          which—(1) Is known to be so toxic to humans as to pose a hazard to
                                                                                                                                                          health during transportation, or (2) In the absence of adequate data on
                                                                                                                                                          human toxicity, is presumed to be toxic to humans because when test-
                                                                                                                                                          ed on laboratory animals it has an LC50 value of not more than 5000
                                                                                                                                                          mL/m3 (see § 173.116(a) for assignment of Hazard Zones A, B, C or
                                                                                                                                                          D). LC50 values for mixtures may be determined using the formula in
                                                                                                                                                          § 173.133(b)(1)(i) or CGA P–20 (IBR, see § 171.7).
                                                    3 ...................     .....................   Flammable and Combustible Liquids                 Flammable liquids—liquid with a flash point of 140 °F or less.
                                                                                                                                                        Combustible liquids—liquid with a flash point above 140 °F and below
                                                                                                                                                          200 °F that does not meet any other hazard class definition.
                                                    6 ...................    6.1 ...............      Poisonous material ...........................    A material, other than a gas, which is known to be so toxic to humans as
                                                                                                                                                          to afford a hazard to health during transportation, or which, in the ab-
                                                                                                                                                          sence of adequate data on human toxicity:
                                                                                                                                                        (1) Is presumed to be toxic to humans because it falls within any one of
                                                                                                                                                          the categories specified in § 173.132(a)(1) (Oral Toxicity, Dermal Tox-
                                                                                                                                                          icity, or Inhalation Toxicity) when tested on laboratory animals (when-
                                                                                                                                                          ever possible, animal test data that has been reported in the chemical
                                                                                                                                                          literature should be used); or
                                                                                                                                                        (2) Is an irritating material, with properties similar to tear gas, which
                                                                                                                                                          causes extreme irritation, especially in confined spaces.
                                                    8 ...................     .....................   Corrosive material ............................   A liquid or solid that causes full thickness destruction of human skin at
                                                                                                                                                          the site of contact within a specified period of time. A liquid, or a solid
                                                                                                                                                          which may become liquid during transportation, that has a severe cor-
                                                                                                                                                          rosion rate on steel or aluminum based on the criteria in
                                                                                                                                                          § 173.137(c)(2) is also a corrosive material. Whenever practical, in vitro
                                                                                                                                                          test methods authorized in § 173.137 or historical data authorized in
                                                                                                                                                          § 173.136(c) should be used to determine whether a material is corro-
                                                                                                                                                          sive.
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                                                      13 Condensate refers to C –C , natural gas liquids
                                                                                5  8                                       material, with a melting point or initial melting        completely gaseous at 20 °C (68 °F) at a standard
                                                    (NGLs) refers to C2–C8, both separated from the                        point of 20 °C (68 °F) or lower at a standard            pressure of 101.3 kPa (14.7 psia). A solid is a
                                                    crude oil during initial processing.                                   pressure of 101.3 kPa (14.7 psia). In other words,       material which is not a gas or a liquid.
                                                      14 The HMR define three states of matter in 49                       it is a liquid in its normal state at ambient              15 kPa: kiloPascals; psia: pounds per square inch
                                                                                                                           temperature and standard pressure. A gas is a
                                                    CFR 171.8: Solid, liquid, or gas. A liquid is a                        material which has a vapor pressure greater than         absolute; psig: pounds per square inch gauge; LC50:
                                                    material, other than an elevated temperature                           300 kPa (43.5 psia) at 50 °C (122 °F) or is              Lethal Concentration measure.




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                                                                                  Federal Register / Vol. 82, No. 11 / Wednesday, January 18, 2017 / Proposed Rules                                                                                                     5503

                                                      As illustrated in the above table, an                                        HMR (at § 173.2a) require a hazardous                                     grouping according to the severity of the
                                                    offeror must account for whether their                                         material to be classed according to the                                   hazard presented by hazardous
                                                    crude oil exhibits hazards beyond that                                         highest applicable hazard class. The                                      materials. The packing group must be
                                                    of a Class 3 hazardous material. Below                                         following list illustrates the precedence                                 determined by applying the following
                                                    are some examples of the impacts of                                            of the hazard classes that are most                                       criteria:
                                                    potential hazards and the risks posed if                                       frequently associated with unrefined
                                                    those properties are not identified and                                        petroleum-based products:                                                 1. Class 2 Packing Group Assignment
                                                    considered:                                                                       (1) Division 2.3 (poisonous gases);
                                                                                                                                      (2) Division 2.1 (flammable gases);                                      Materials meeting the definition of
                                                      • Dissolved gases—may result in                                                                                                                        Division 2.1 or 2.2 are not assigned
                                                    pressure build-up inside the tank car,                                            (3) Division 2.2 (non-flammable
                                                                                                                                   gases);                                                                   packing groups. Division 2.3 materials
                                                    increasing the volatility of the material                                                                                                                are assigned hazard zones related to the
                                                                                                                                      (4) Division 6.1 (poisonous liquids),
                                                    and requiring a more robust packaging.                                                                                                                   toxicity of the material. See § 173.116.
                                                                                                                                   Packing Group I, poisonous-by-
                                                      • Corrosivity—may corrode the tank
                                                                                                                                   inhalation only;                                                          2. Class 3 Packing Group Assignment
                                                    car and its components, requiring an                                              (5) Class 3 (flammable and
                                                    inner lining.                                                                  combustible liquids);
                                                      • Toxicity—may pose an inhalation                                               (6) Class 8 (corrosive materials) or
                                                                                                                                                                                                                                                                        Initial
                                                                                                                                                                                                                                              Flash point              boiling
                                                    hazard to human life upon release from                                         Division 6.1 (poisonous liquids or solids                                  Packing group                  (closed-cup)               point
                                                    the tank car without ignition.                                                 other than Packing Group I, poisonous-                                                                                                (°F)
                                                      Part 173 of the HMR contains testing                                         by-inhalation); and
                                                    methods for the various hazard classes                                            (7) Combustible liquids.                                               I .......................    ..........................        ≤95
                                                    and respective criteria for packing                                               When making classification                                             II ......................    <73 °F ..............             >95
                                                    groups. In the event an offeror                                                determinations, the offeror of the                                        III .....................    ≥73 °F, ≤140 °F                   >95
                                                    determines a hazardous material meets                                          hazardous material must also consider
                                                    more than one hazard class, the offeror                                        the packing groups associated with each                                   3. Class 6—Division 6.1 Packing Group
                                                    must determine the primary hazard. The                                         hazard class. Packing group indicates a                                   Assignment

                                                                                                                                                                                                                                            Inhalation toxicity by dusts
                                                                                                                                                        Oral toxicity LD50                         Dermal toxicity LD50
                                                                                     Packing group                                                                                                                                                and mists LC50
                                                                                                                                                             (mg/kg)                                    (mg/kg)                                       (mg/L)

                                                    I ........................................................................................   ≤5.0 ....................................    ≤50 .....................................     ≤0.2.
                                                    II .......................................................................................   >5.0 and ≤50 .....................           >50 and ≤200 ....................             >0.2 and ≤2.0.
                                                    III ......................................................................................   >50 and ≤300 ....................            >200 but ≤1000 .................              >2.0 and ≤4.0.


                                                                     Packing group                                                                                        Vapor concentration and toxicity

                                                    I (Zone A) ........................................          V   ≥   500 LC50 and LC50 ≤200                mL/M3.
                                                    I (Zone B) ........................................          V   ≥   10 LC50; LC50 ≤1000 mL/m3; and the criteria for Packing Group I, Hazard Zone A are not met.
                                                    II ......................................................    V   ≥   LC50; LC50 ≤3000 mL/m3; and the criteria for Packing Group I, are not met.
                                                    III .....................................................    V   ≥   .2 LC50; LC50 ≤5000 mL/m3; and the criteria for Packing Group I and II, are not met.
                                                       Note 1: V is the saturated vapor concentration in air of the material in mL/m3 at 20 °C and standard atmospheric pressure.
                                                       Note 2: A liquid in Division 6.1 meeting criteria for Packing Group I, Hazard Zones A or B stated in § 173.133(a)(2) is a poisonous by inhala-
                                                    tion subject to additional hazard communication requirements in §§ 172.203(m), 172.313 and table 1 of 172.504(e).


                                                    4. Class 8—Packing Group Assignment

                                                                     Packing group                                                                                                           Corrosivity

                                                    I .......................................................    Material that causes full thickness destruction of intact skin tissue within 60 minutes, starting after an expo-
                                                                                                                  sure time of three minutes or less.
                                                    II ......................................................    Material (not meeting packing group I criteria) that causes full thickness destruction of intact skin tissue
                                                                                                                  within 14 days starting after an exposure time of more than three minutes but not more than 60 minutes.
                                                    III .....................................................    Material (not meeting packing group I or II criteria) that causes full thickness destruction of intact skin tis-
                                                                                                                  sue within an observation period of up to 14 days starting after the exposure time of more than 60 min-
                                                                                                                  utes but not more than 4 hours; or
                                                                                                                 Material that does not cause full thickness destruction of intact skin tissue but exhibits a corrosion rate on
                                                                                                                  steel or aluminum surfaces exceeding 0.25 inch a year at a test temperature of 130 °F.



                                                      Proper classification is a critical step                                     shipped (e.g., Petroleum crude oil). The                                  specified.’’ The accurate selection of the
                                                    in the process for ensuring hazardous                                          selected name must account for all                                        shipping description is important in
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                                                    materials are transported safely.                                              hazards present. If there is no proper                                    determining the proper packaging.
                                                    Following the selection of a proper                                            shipping name that accurately describes                                     In 2014, the rail and oil industry, with
                                                    hazard class or classes and an                                                 the material and its hazards, an offeror                                  PHMSA’s input, developed a
                                                    appropriate packing group for the                                              may use a generic shipping description                                    recommended practice designed to
                                                    material, an offeror must select the                                           (e.g., Hydrocarbon gas mixture,                                           improve crude oil rail safety through
                                                    name from the Hazardous Materials                                              liquefied, n.o.s.). Generic descriptions                                  proper classification and loading
                                                    Table (HMT; 49 CFR 172.101) most                                               are denoted in the HMT with an                                            practices. The American Petroleum
                                                    accurately describing the material being                                       ‘‘n.o.s.,’’ meaning ‘‘not otherwise                                       Institute (API) led the effort, which


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                                                    5504                 Federal Register / Vol. 82, No. 11 / Wednesday, January 18, 2017 / Proposed Rules

                                                    resulted in the development of an                       crude, natural gas condensate, and                     the industry with a direct way of
                                                    American National Standards Institute                   natural gas liquid.                                    establishing a program to consider the
                                                    (ANSI) recognized recommended                              Given this variability, PHMSA                       varying characteristics and properties of
                                                    practice, API RP 3000, Classifying and                  stressed that it is the offeror’s                      unrefined petroleum-based products.
                                                    Loading of Crude Oil Into Rail Tank                     responsibility, under § 173.22 of the                  The program applies to all modes of
                                                    Cars. The API RP 3000 provides                          HMR, to ensure hazardous materials are                 transportation and offerors must certify
                                                    guidance on the material                                properly classified. To reinforce this                 that a program is in place, document the
                                                    characterization, transport                             requirement, PHMSA proposed a new                      testing and sampling program outcomes,
                                                    classification, and quantity                            § 173.41 explicitly requiring a sampling               and make information available to DOT
                                                    measurement for overfill prevention of                  and testing program for unrefined                      personnel upon request.
                                                    crude oil for the loading of rail tank                  petroleum-based products, including
                                                                                                                                                                      In the HHFT final rule, PHMSA
                                                    cars.                                                   crude oil.
                                                                                                               In the HHFT NPRM, PHMSA also                        indicated that it could not adopt any
                                                       On July 23, 2014, PHMSA and the                      sought comments from the public on the                 other specific changes related to vapor
                                                    Federal Railroad Administration (FRA)                   role of vapor pressure in classifying                  pressure, exceptions for packing group,
                                                    released a report summarizing the                       flammable liquids and selecting                        or incentives to reduce volatility,
                                                    analysis of Bakken crude oil data                       packagings, as well as whether vapor                   because PHMSA did not propose them
                                                    gathered from August 2013 to May                        pressure thresholds should be                          in the NPRM. 80 FR 26643, 26665.19
                                                    2014.16 PHMSA and FRA conducted                         established. PHMSA did this based on                   However, PHMSA indicated it might
                                                    tests and obtained results from 135                     comments received to the HHFT                          consider addressing these comments in
                                                    samples. The majority of crude oil                      ANPRM (78 FR 54849). Individuals,                      a future action. Based on the comments
                                                    analyzed from the Bakken region                         government organizations, and                          received, and P–1669, PHMSA requests
                                                    displayed characteristics consistent                    environmental groups, such as the                      comments regarding the role of ‘‘vapor
                                                    with those of a Class 3 flammable                       Delaware Riverkeeper Network,                          pressure’’ in the classification process
                                                    liquid, packing group I or II.                          supported mandating vapor pressure                     and specifically in regards to unrefined
                                                                                                            testing that in their words would                      petroleum-based products, such as
                                                    B. High-Hazard Flammable Train                                                                                 crude oil.
                                                                                                            ‘‘increase safety and accuracy.’’
                                                    (HHFT) Rulemaking
                                                                                                            Environmental groups and offeror                       C. Sandia Study
                                                       On August 1, 2014, PHMSA, in                         Quantum Energy also suggested
                                                    coordination with FRA, published a                      packaging selection should be based on                    In 2014, the DOT and the U.S.
                                                    notice of proposed rulemaking (NPRM)                    vapor pressure. Industry stakeholders,                 Department of Energy (DOE)
                                                    entitled ‘‘Hazardous Materials:                         such as the Dangerous Goods Advisory                   commissioned a review of available
                                                    Enhanced Tank Car Standards and                         Council and the American Fuel and                      crude oil chemical and physical
                                                    Operational Controls for High-Hazard                    Petrochemical Manufacturers (AFPM),                    property data literature 20 to
                                                    Flammable Trains’’ (HM–251; 79 FR                       stated vapor pressure testing was                      characterize and define tight crude oils
                                                    45015) 17 proposing requirements to                     unnecessary. For example, AFPM                         based on their chemical and physical
                                                    reduce the consequences and, in some                    specifically stated ‘‘Bakken crude oil                 properties, and identify properties that
                                                    instances, reduce the probability of                    vapor pressures appear to be within                    could contribute to increased potential
                                                    accidents involving trains transporting                 operational limits required for transport              for accidental combustion.21 Sandia
                                                    large quantities of Class 3 flammable                   in pipelines (facility piping and                      National Laboratories (Sandia)
                                                    liquids. In the NPRM, PHMSA indicated                   transmission lines) and for purposes of                conducted this review and focused on
                                                    that the properties of unrefined                        storage in floating roof tanks; thus                   crude oil’s potential for ignition,
                                                    petroleum-based products, including                     operational vapor pressure limits do not               combustion, and explosion. A partial
                                                    crude oil, are variable based on time,                  necessitate stabilization in advance of                list of properties surveyed includes
                                                    method, and location of extraction,                     rail transportation.’’ 18                              density (expressed as API gravity),
                                                    whereas manufactured goods often                           On May 8, 2015, PHMSA, in                           vapor pressure, initial boiling point,
                                                    undergo a strict quality assurance                      coordination with FRA, published a                     boiling point distribution, flash point,
                                                    process designed to ensure                              final rule entitled ‘‘Hazardous Materials:             gas-oil ratio, ‘‘light ends’’ (dissolved
                                                    characteristics are within defined                      Enhanced Tank Car Standards and                        gases—including nitrogen, carbon
                                                    parameters. Unlike manufactured goods,                  Operational Controls for High-Hazard                   dioxide, hydrogen sulfide, methane,
                                                    organic materials from oil and gas                      Flammable Trains’’ (HM–251; 80 FR                      ethane, and propane—and butanes and
                                                    production represent a unique challenge                 26643) to codify requirements in the                   other volatile liquids) composition, and
                                                    in regards to classification. The                       HMR to reduce the consequences and,                    flash gas composition. Although the
                                                    chemical makeup of the raw material                     in some instances, reduce the                          review yielded a large database
                                                    can vary over time and geographical                     probability of accidents involving trains              encompassing a wide variety of crude
                                                    location. As noted earlier, typically,                  transporting large quantities of Class 3               oils and their properties, it also
                                                    organic materials from oil and gas                      flammable liquids. In regard to the                    illustrated the difficulty in utilizing
                                                    production at a wellhead are passed                     classification of unrefined petroleum-                 available data as the basis for accurately
                                                    through a ‘‘separator’’ to remove most of               based products, the final rule, like the               defining and meaningfully comparing
                                                    the gas, sediment, and water from the                   NPRM before it, stressed the offeror’s                 crude oils.
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                                                    crude oil. As such, there are multiple                  responsibility to properly classify and
                                                    hazardous liquids that are commonly                     describe a hazardous material. In the                     19 https://www.gpo.gov/fdsys/pkg/FR-2015-05-08/


                                                    shipped from the well-site, including                   rule, PHMSA codified § 173.41 to                       pdf/2015-10670.pdf.
                                                                                                                                                                      20 See http://prod.sandia.gov/techlib/access-
                                                                                                            require a sampling and testing program
                                                                                                                                                                   control.cgi/2015/151823.pdf.
                                                      16 See http://phmsa.dot.gov/staticfiles/PHMSA/
                                                                                                            for unrefined petroleum-based products.                   21 Tight oil is a type of oil extracted from
                                                    DownloadableFiles/Hazmat/07_23_14_Operation_            PHMSA intended § 173.41 to provide                     petroleum-bearing formations of low permeability
                                                    Safe_Delivery_Report_final_clean.pdf.                                                                          (typically shale or tight sandstone). These
                                                      17 See https://www.gpo.gov/fdsys/pkg/FR-2014-           18 https://www.regulations.gov/                      formations produce oil through hydraulic
                                                    08-01/pdf/2014-17764.pdf.                               document?D=PHMSA-2012-0082-3274.                       fracturing.



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                                                                         Federal Register / Vol. 82, No. 11 / Wednesday, January 18, 2017 / Proposed Rules                                                     5505

                                                       An important outcome of the review                   400,000 barrels per day. The North                     began collecting this information for rail
                                                    was formal recognition of the wide-                     Dakota State Pipeline Authority                        after July 2013. The information we
                                                    ranging variability in crude oil sample                 estimates that more than 500,000 barrels               have has uncertainty since testing may
                                                    type, sampling method, and analytical                   per day of Bakken crude oil moves by                   happen after the train is moved to a
                                                    method, as well as the                                  pipeline. Pipeline operators routinely                 final destination and there may have
                                                    acknowledgement that this variability                   set upper limits on RVP levels for crude               been different sampling and testing
                                                    limits the adequacy of the available                    oil that will be accepted for transport. A             techniques used, among other issues.
                                                    crude oil property data set as the basis                sample of six North Dakota pipeline                    PHMSA may consider publishing this
                                                    for establishing effective and affordable               operators indicates that they have set                 information for the NPRM once we
                                                    safe transport guidelines. In recognition               RVP upper limits ranging from 9.0 to                   review and consolidate.
                                                    of the need for improved understanding                  14.7 psia for acceptable crude oil.24
                                                    of crude oil, and especially tight crude                                                                       V. Comments and Questions
                                                                                                            Understanding how oil producers
                                                    oil properties, the Sandia Study was                    comply with pipeline operators’ RVP                      PHMSA requests comments on the
                                                    designed to characterize tight and                      standards, or possibly instead ship                    merits of P–1669.25 PHMSA is uncertain
                                                    conventional crudes based on key                        crude oil with RVP levels that exceed                  that the requested action in Petition P–
                                                    chemical and physical properties and to                 pipeline operator limits by rail, would                1669 would provide a safety benefit and
                                                    identify properties that may contribute                 provide useful insights for                            requests comments on the following
                                                    to increased likelihood and/or severity                 understanding the consequences of                      questions:
                                                    of combustion events that could arise                   setting RVP limits for rail transport.                 A. General Questions
                                                    during handling and transport. The
                                                    work scope represents a phased                          F. Accident History and Vapor Pressure                    1. To what extent, if at all, would requiring
                                                                                                            Levels                                                 crude oil shipped by rail to have a RVP of
                                                    approach, in that knowledge gained                                                                             no greater than 9.0 psi decrease the expected
                                                    from completing each task will inform                      As shown above, Petition P–1669                     degree, consequence, or magnitude of a
                                                    the execution of subsequent tasks to                    included a table highlighting the vapor                release or the likelihood of a fire during an
                                                    maximize efficiency in achieving overall                pressures of the crude oil involved in                 accident? Please provide relevant scientific
                                                    plan objectives. Through four tasks, the                several high-profile train accidents.                  or other empirical information to support
                                                    SAE Plan,22 will characterize tight and                 According to the Petition, the vapor                   your comment.
                                                    conventional crudes based on identified                 pressures of the oil involved in the five                 2. What, if any, peer-reviewed or other
                                                                                                                                                                   robust information is available that addresses
                                                    key chemical and physical qualities and                 accidents was, at the low end, an                      the safety effectiveness and/or cost of setting
                                                    identify properties that may contribute                 ‘‘average between 9.0 and 9.5 psi,’’ and               vapor pressure limits for crude oil or other
                                                    to increased likelihood and/or severity                 at the high end, ‘‘an average of 14.3                  flammable liquids during transportation?
                                                    of combustion events that could arise                   psi.’’ It likely would be useful to have                  3. How do the consequences resulting from
                                                    during handling and transport. This                     more comprehensive information                         accidents involving low-vapor pressure
                                                    project is currently in Task 2, which is                regarding the vapor pressure levels of                 flammable liquids (e.g., ethanol) 26 compare
                                                    designed to determine what methods of                   Class 3 flammable liquid hazardous                     to accidents involving high vapor pressure
                                                    sampling and analysis are suitable for                                                                         flammable liquids (e.g., certain crude oil)? If
                                                                                                            materials involved in rail accidents, and
                                                                                                                                                                   the consequences are significantly similar,
                                                    characterizing the physical and                         information about the nature,                          will adopting a vapor pressure limit address
                                                    chemical properties of different crude                  characteristics and consequences of the                the magnitude of release or the likelihood of
                                                    oils.                                                   accidents. It would be useful to have                  fire during an accident for both commodity
                                                    D. PHMSA Actions                                        such information for accidents                         types?
                                                                                                            involving other transportation modes as                   4. Would adopting a vapor pressure limit
                                                       On January 2, 2014, PHMSA issued a                   well. Such information may inform                      impact trans-border shipments? If so, how?
                                                    safety alert to notify the public,                      understanding of how a flammable                          5. What methods can be employed to
                                                    emergency responders, shippers, and                                                                            measure environmental and human health
                                                                                                            liquid’s vapor pressure affects the                    effects of setting a vapor pressure limit for
                                                    carriers that crude oil from the Bakken                 characteristics and consequences of
                                                    region may be more flammable than                                                                              the transport of crude oil by rail? How would
                                                                                                            accidents involving the liquid. PHMSA                  the benefits of setting a vapor pressure limit
                                                    traditional heavy crude oil.23 The alert
                                                                                                                                                                   be quantified?
                                                    was a follow-up to the PHMSA and FRA                      24 Cf. Bakken Oil Express: RVP = 9, http://             6. What options are available for reducing
                                                    joint safety advisory entitled, ‘‘Safety                www.boemidstream.com/wp-content/uploads/2014/          the volatility of crude oil before it’s offered
                                                    and Security Plans for Class 3                          02/BOEPL-Rules-Regulations.pdf; Belle Fourche          for transportation and loaded into tank cars,
                                                    Hazardous Materials Transported by                      RVP = 13.7, http://www.buttepipeline.com/sites/        such as existing consensus standards or
                                                                                                            default/files/tariffs/BFPL%20FERC%20112.17.0.
                                                    Rail,’’ 78 FR 69745, published                          pdf;
                                                                                                                                                                   operating practices used for conditioning
                                                    November 20, 2013. The safety advisory                                                                         (heating and treating) crude oil? What
                                                                                                              Tesoro High Plains Pipeline (ND): RVP = 13,
                                                    stressed that offerors need to properly                 http://phx.corporate-r.net/External.File?item=         voluntary measures has industry taken to
                                                    classify and describe hazardous                         UGFyZW50SUQ9MjU1NjYxfENoaWxkSUQ9                       reduce the volatility of crude oil shipped in
                                                                                                            LTF8VHlwZT0z&t=1;                                      interstate commerce by any mode? If so, what
                                                    materials being offered for                                                                                    are they?
                                                                                                              Bakken Link: RVP = 9.5, http://bakkenlink.com/
                                                    transportation in accordance with                       data/upfiles/media/rules%20and%20regulations.             7. What other regulatory and industry
                                                    § 173.22 of the HMR.                                    pdf;                                                   marketability measures are in place that
                                                                                                              Enbridge North Dakota Pipeline RVP = 103 kPa         restrict the volatility of crude oil in transport,
                                                    E. Pipeline Operators                                   (14.7 psia), http://www.enbridge.com/∼/media/          such as RVP limits set by pipeline operators,
                                                      In recent months, the volume of crude                 www/Site%20Documents/Informational                     or the impact of volatile organic compound
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                                                                                                            %20Postings/Tariffs/North%20Dakota/NDPL-               emission standards for storage tanks and
                                                    oil exported by rail from North Dakota                  FERC-No-2-2-0.pdf;
                                                    has steadily declined to less than                                                                             other petroleum facilities?
                                                                                                              Bakken Pipeline Company (Enbridge) says
                                                                                                                                                                      8. How many carloads and trains would be
                                                                                                            absolute vapor pressure per ASTM6377 <13.7.
                                                      22 See http://energy.gov/sites/prod/files/2016/06/    http://www.enbridge.com/∼/media/Rebrand/
                                                                                                                                                                   affected by setting a vapor pressure limit for
                                                    f32/Crude%20Oil%20Characteristics%20Research            Documents/Tariffs/2015/Bakken%20US%20FERC
                                                    %20SAE%20Plan.pdf.                                      %20No%20110.pdf?la=en; and                               25 https://www.regulations.gov/
                                                      23 See http://www.phmsa.dot.gov/staticfiles/            Bridger Pipeline: RVP = 9.4 summer/11 winter,        docket?D=PHMSA-2015-0253.
                                                    PHMSA/DownloadableFiles/1_2_14%20Rail_                  http://www.hawthornoiltransportation.com/tariffs/        26 The vapor pressure of ethanol is RVP (at 100

                                                    Safety_Alert.pdf.                                       ND_RatesRegs_070112.pdf.                               F) is 2.0 psi.



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                                                    5506                 Federal Register / Vol. 82, No. 11 / Wednesday, January 18, 2017 / Proposed Rules

                                                    the transport of crude oil by rail? What                mitigated or prevented by establishing a                 4. Should PHMSA consider adopting a new
                                                    portion of current carloads would be out of             nationwide vapor pressure standard for crude           Hazardous Materials Table (HMT; § 172.101)
                                                    compliance with the standard proposed in P–             oil? Have there been any U.S. crude-by-rail            entry for petroleum crude oil with a high-
                                                    1669? Similarly, how many cargo ship                    accidents where a lower vapor pressure                 concentration of dissolved gases that is
                                                    shipments, truck shipments and barrels of oil           would have made a difference in the                    similar to the entry for UN3494, Petroleum
                                                    transported by pipeline would be affected by            outcome? If yes, please provide all relevant           sour crude oil, flammable, toxic? 27
                                                    adopting the standard proposed in P–1669?               details to support the conclusion.                       5. Do flammable liquids containing
                                                       9. What are the expected impacts of                     19. If PHMSA were to adopt the vapor                dissolved flammable and nonflammable
                                                    establishing a nationwide vapor pressure                pressure threshold requested by the                    gases have implications for the response
                                                    standard for crude oil intended for                     petitioner (or another threshold), what                community, such as hazard communication
                                                    transportation in commerce? Should that                 timeframe would be needed to comply with               or response considerations, that the agency
                                                    standard apply to all modes of transportation           the new requirements to implement the                  should consider?
                                                    or be limited to specific modes? What are the           needed treatment infrastructure throughout               6. If Petition P–1669 were adopted, would
                                                    costs and benefits of those impacts? Please             the network of offerors?                               there be an impact in the transportation of
                                                    provide information and data, and include                  20. If PHMSA were to establish a                    other flammable products, and if so, what
                                                    references and sources for information and              nationwide vapor pressure standard, should
                                                                                                                                                                   would they be?
                                                    data provided.                                          any other Class 3 hazardous materials besides
                                                       10. Should there be different vapor                  crude oil be subject to a vapor pressure limit?        C. Vapor Pressure Questions
                                                    pressure limits depending on the specific               If so, which ones? Please provide the basis               1. Would the use of RVP, True Vapor
                                                    circumstances of the shipment, such as the              for your comment.                                      Pressure, VPCRx, or some other standard be
                                                    mode, the quantity of material or whether the              21. If PHMSA were to establish a                    the best method for measuring vapor pressure
                                                    shipment will travel through populated                  nationwide vapor pressure standard, should
                                                    areas?                                                                                                         for classification and packaging? Does this
                                                                                                            it apply to the highway mode of
                                                       11. Are there other risk factors that should                                                                method appropriately account for liquids
                                                                                                            transportation? What is the impact of a vapor
                                                    be considered instead of, or in addition to,                                                                   containing dissolved flammable and non-
                                                                                                            pressure standard on the current highway
                                                    vapor pressure (e.g., a material’s flammability                                                                flammable gases under non-equilibrium
                                                                                                            fleet capacity? If highway transportation is
                                                    range, specific heat or heat of vaporization)?                                                                 conditions? What volume to liquid ratio and
                                                                                                            included, what is the increased exposure for
                                                    How do these risk factors affect the                                                                           temperature would be most suitable? Why?
                                                                                                            highway deaths and injuries? How does this
                                                    magnitude of release or the likelihood of fire          compare to exposure in rail transportation?               2. Would the definition for ‘‘live’’ and
                                                    resulting from an accident?                                22. What other properties of Class 3                ‘‘dead’’ crude oils from ASTM D6377 and
                                                       12. While offerors would be legally                  hazardous materials are important to                   other standards be relevant or useful in
                                                    responsible for compliance with a volatility            consider when setting vapor pressure limits?           setting a vapor pressure limit?
                                                    standard, it may be that actual compliance              For example, are the following properties                 3. Is there a unit of measure for how much
                                                    would be more cost-effectively implemented              important: Lower and upper explosive limits,           dissolved flammable and non-flammable
                                                    at some other point in the supply chain.                evaporations rates, etc.?                              gases contribute to the vapor pressure,
                                                    What physical, institutional, or legal                     23. Would the flammable gases removed               volatility, and flammability of crude oil?
                                                    arrangements would be needed for                        from the crude oil be transported by tank cars            4. Are there any materials currently
                                                    implementation of a vapor pressure                      or cargo tanks? If so, how many additional             classified as a flammable liquid within the
                                                    standard?                                               tank cars or cargo tank shipments of                   HMR that would be impacted by a vapor
                                                       13. What types of additional technology,             flammable gases would be required? What                pressure threshold?
                                                    equipment, labor, and changes to existing               are the safety consequences of transporting               5. What are the observed vapor pressures
                                                    operations would be needed for the                      such materials or how might PHMSA                      of tight crude oil in various stages of
                                                    establishment of a nationwide vapor pressure            quantify such consequences? How would this             production, stabilization, and transportation?
                                                    standard for crude oil intended for                     impact the overall risk assessment?                    Please explain the conditions under which
                                                    transportation in commerce? What would be                  24. Given the risks associated with                 sampling and testing was performed.
                                                    the initial and recurring, and fixed and                transporting large quantities of flammable                6. Have any other nations established
                                                    variable costs? If changes to existing                  liquids, are there measures that PHMSA                 vapor pressure limits for transporting crude
                                                    operations would involve additional labor,              should consider as an alternative or in                oil or other flammable liquids by any mode?
                                                    then please provide the additional time by              addition to addressing material properties             If so, which nations, what limits do they use,
                                                    activity and labor category.                            such as vapor pressure or flammability range,          and what information did they use to support
                                                       14. To what extent can a vapor pressure              etc.?                                                  the specific limits?
                                                    standard be implemented within the existing                                                                       7. Petition P–1669 recommends a RVP of
                                                    system? At what point would additional                  B. Safety Questions                                    no greater than 9.0 psi. In contrast, the NDIC
                                                    investments be required? What level of                     1. Do the current HMR adequately consider           implemented a maximum vapor pressure
                                                    infrastructure change would be needed? Is               the risks that flammable liquids containing            threshold of 13.7 psi, (VPCR4 as defined in
                                                    this level affected by seasonal and market              dissolved flammable or nonflammable gases              ASTM D6377). If PHMSA were to establish
                                                    demands? How do the answers to these                    present?                                               a national vapor pressure limit, what should
                                                    questions change if crude oil production                   2. Should vapor pressure be used to                 it be?
                                                    returned to historically high volume levels?            delineate gases (and liquids with high vapor              8. Has any source compiled comprehensive
                                                       15. What additional types of training                pressures) from liquids with low vapor                 and reliable information regarding the vapor
                                                    would be needed for the establishment of a              pressures? If so, is the current definition of         pressures of Class 3 flammable liquid
                                                    nationwide vapor pressure standard for crude            a gas sufficient or should a different                 hazardous materials involved in
                                                    oil? What would be the initial and recurring            threshold (i.e., vapor pressure or                     transportation accidents, as well as
                                                    costs?                                                  temperature) be utilized? Answers should               information about the nature, characteristics
                                                       16. Compared to the current baseline, what           also include specification to measurement              and consequences associated with those
                                                    would be the changes to production, pre-                method (including V/L ratio) and sampling              accidents? Has any source conducted
                                                    treatment, conditioning or stabilization,               method, if necessary, for that determination           statistical or other scientific analysis
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                                                    loading, and transport of petroleum crude oil           when recommending different thresholds.                regarding the relationship between vapor
                                                    if PHMSA establishes a nationwide vapor                    3. Should unrefined petroleum products              pressure and the consequences of
                                                    pressure standard?                                      not completely gaseous at 20 °C but having             transportation accidents?
                                                       17. How should the effectiveness and                 a vapor pressure greater than 300 kPa at 50
                                                    benefits of a rulemaking establishing a                 °C be subjected to the testing in                        27 49 CFR 172.102(c)(1), Special Provision 343—
                                                    nationwide vapor pressure standard for crude            § 173.115(a)(2) to determine whether that              A bulk packaging that emits hydrogen sulfide in
                                                    oil be measured?                                        material should be regulated as flammable              sufficient concentration that vapors evolved from
                                                       18. In order to estimate benefits of a               gas? If yes, what affect would this have on            the crude oil can present an inhalation hazard must
                                                    rulemaking, what consequences would be                  other Class 3 hazardous materials?                     be marked as specified in § 172.327of this part.



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                                                                         Federal Register / Vol. 82, No. 11 / Wednesday, January 18, 2017 / Proposed Rules                                            5507

                                                    D. Packaging Questions                                  State and local governments with an                    opportunity to comment on information
                                                      1. Would further limiting the filling                 interest in this rulemaking to comment                 collection and recordkeeping requests.
                                                    capacity be an effective method for reducing            on any effect that may result if Petition              This ANPRM does not impose new
                                                    the risks associated with Class 3 hazardous             P–1669 is adopted.                                     information collection requirements.
                                                    materials containing dissolved gases?                                                                          PHMSA specifically requests comments
                                                                                                            C. Executive Order 13175
                                                    VI. Regulatory Review and Notices                                                                              on the information collection and
                                                                                                              Executive Order 13175, ‘‘Consultation                recordkeeping burdens that may result if
                                                    A. Executive Order 12866, Executive                     and Coordination and Indian Tribal                     Petition P–1669 is adopted.
                                                    Order 13563, Executive Order 13610,                     Governments,’’ 65 FR 67249 (Nov. 9,
                                                    and DOT Regulatory Policies and                         2000), requires agencies to assure                     F. Environmental Assessment
                                                    Procedures                                              meaningful and timely input from                          The National Environmental Policy
                                                       This ANPRM is considered a                           Indian tribal government representatives               Act of 1969, 42 U.S.C. 4321–4375,
                                                    significant regulatory action under                     in the development of rules that                       requires that Federal agencies analyze
                                                    section 3(f) of Executive Order 12866                   significantly or uniquely affect Indian                proposed actions to determine whether
                                                    and was reviewed by the Office of                       communities by imposing ‘‘substantial                  the action will have a significant impact
                                                    Management and Budget (OMB). It is                      direct compliance costs’’ or ‘‘substantial             on the human environment. The
                                                    considered a significant regulatory                     direct effects’’ on such communities or                Council on Environmental Quality
                                                    action under the Regulatory Policies and                the relationship and distribution of                   (CEQ) regulations require Federal
                                                    Procedures order issued by the                          power between the Federal Government                   agencies to conduct an environmental
                                                    Department of Transportation. 44 FR                     and Indian tribes. PHMSA invites                       review considering (1) the need for the
                                                    11034 (Feb. 26, 1979).                                  Indian tribal governments to provide                   proposed action, (2) alternatives to the
                                                       Executive Orders 12866, ‘‘Regulatory                 comments on the costs and effects the                  proposed action, (3) probable
                                                    Planning and Review,’’ 58 FR 51735                      petitions and recommendations could                    environmental impacts of the proposed
                                                    (Oct. 4, 1993), and 13563, ‘‘Improving                  have on them, if adopted.                              action and alternatives, and (4) the
                                                    Regulation and Regulatory Review,’’ 76                                                                         agencies and persons consulted during
                                                                                                            D. Regulatory Flexibility Act, Executive
                                                    FR 3821 (Jan. 21, 2011), require agencies                                                                      the consideration process. See 40 CFR
                                                                                                            Order 13272, and DOT Policies and
                                                    to regulate in the ‘‘most cost-effective                                                                       1508.9(b). PHMSA welcomes any data
                                                                                                            Procedures
                                                    manner,’’ to make a ‘‘reasoned                                                                                 or information related to environmental
                                                    determination that the benefits of the                     Under the Regulatory Flexibility Act
                                                                                                                                                                   impacts that may result if Petition P–
                                                    intended regulation justify its costs,’’                of 1980, 5 U.S.C. 601, et seq., PHMSA
                                                                                                                                                                   1669 is adopted, as well as possible
                                                    and to develop regulations that ‘‘impose                must consider whether a rulemaking
                                                                                                                                                                   alternatives and their environmental
                                                    the least burden on society.’’ Executive                would have a ‘‘significant economic
                                                                                                                                                                   impacts.
                                                    Order 13610, ‘‘Identifying and reducing                 impact on a substantial number of small
                                                    Regulatory Burdens,’’ 77 FR 28469 (May                  entities.’’ ‘‘Small entities’’ include small           G. Privacy Act
                                                    14, 2012), urges agencies to conduct                    businesses, not-for-profit organizations
                                                                                                            that are independently owned and                         Anyone is able to search the
                                                    retrospective analyses of existing rules
                                                                                                            operated and are not dominant in their                 electronic form of any written
                                                    to examine whether they remain
                                                                                                            fields, and governmental jurisdictions                 communications and comments
                                                    justified and whether they should be
                                                                                                            with populations under 50,000.                         received into any of our dockets by the
                                                    modified or streamlined in light of
                                                                                                               It is possible that if PHMSA proposes               name of the individual submitting the
                                                    changed circumstances, including the
                                                                                                            to adopt the revisions suggested in                    document (or signing the document, if
                                                    rise of new technologies.
                                                       Additionally, Executive Orders 12866,                Petition P–1669, there may be a                        submitted on behalf of an association,
                                                    13563, and 13610 require agencies to                    ‘‘significant economic impact on a                     business, labor union, etc.). You may
                                                    provide a meaningful opportunity for                    substantial number of small entities.’’                review DOT’s complete Privacy Act
                                                    public participation. Accordingly,                      As such, PHMSA would like small                        Statement in the Federal Register
                                                    PHMSA invites comments on these                         entities’ input on the issues presented in             published on April 11, 2000, see 65 FR
                                                    considerations, including any cost or                   this ANPRM. If you believe that                        19477, or you may visit http://
                                                    benefit figures or factors, alternative                 revisions to the HMR would have a                      www.regulations.gov.
                                                    approaches, and relevant scientific,                    significant economic impact on a                       H. Executive Order 13609 and
                                                    technical and economic data. These                      substantial number of small entities,                  International Trade Analysis
                                                    comments, along with the information                    please provide information on such
                                                    provided by the New York State Office                   impacts.                                                  Under Executive Order 13609,
                                                    of the Attorney General, will help                         Any future proposed rule would be                   ‘‘Promoting International Regulatory
                                                    PHMSA evaluate whether regulatory                       developed in accordance with Executive                 Cooperation,’’ 77 FR 26413 (May 4,
                                                    action is warranted and appropriate.                    Order 13272, ‘‘Proper Consideration of                 2012), agencies must consider whether
                                                                                                            Small Entities in Agency Rulemaking,’’                 the impacts associated with significant
                                                    B. Executive Order 13132                                                                                       variations between domestic and
                                                                                                            68 FR 7990 (Feb. 19, 2003), and DOT’s
                                                      Executive Order 13132, ‘‘Federalism,’’                procedures and policies to promote                     international regulatory approaches are
                                                    64 FR 43255 (Aug. 10, 1999), requires                   compliance with the Regulatory                         unnecessary or may impair the ability of
                                                    agencies to assure meaningful and                       Flexibility Act to ensure that potential               American businesses to export and
                                                    timely input by State and local officials               impacts on small entities of a regulatory              compete internationally. In meeting
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                                                    in the development of regulatory                        action are properly considered.                        shared challenges involving health,
                                                    policies that may have ‘‘substantial                                                                           safety, labor, security, environmental,
                                                    direct effects on the States, on the                    E. Paperwork Reduction Act                             and other issues, regulatory approaches
                                                    relationship between the national                         In accordance with the Paperwork                     developed through international
                                                    government and the States, or on the                    Reduction Act, 44 U.S.C. 3501 et seq.,                 cooperation can provide equivalent
                                                    distribution of power and                               5 CFR 1320.8(d) requires that PHMSA                    protection to standards developed
                                                    responsibilities among the various                      provide interested members of the                      independently while also minimizing
                                                    levels of government.’’ PHMSA invites                   public and affected agencies an                        unnecessary differences.


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                                                    5508                 Federal Register / Vol. 82, No. 11 / Wednesday, January 18, 2017 / Proposed Rules

                                                       Similarly, the Trade Agreements Act                  K. Executive Order 13211                               catch of Pacific bluefin tuna (Thunnus
                                                    of 1979, Pub. L. 96–39, as amended by                      Executive Order 13211, 66 FR 28355                  orientalis) in waters of the eastern
                                                    the Uruguay Round Agreements Act,                       (May 22, 2001), requires Federal                       Pacific Ocean (EPO) for 2017 and 2018.
                                                    Pub. L. 103–465, prohibits Federal                      agencies to prepare a Statement of                     This action is necessary for the United
                                                    agencies from establishing any                          Energy Effects for any ‘‘significant                   States to satisfy its obligations as a
                                                    standards or engaging in related                        energy action.’’ Under the executive                   member of the IATTC.
                                                    activities that create unnecessary                      order, a ‘‘significant energy action’’ is              DATES: Comments on the proposed rule
                                                    obstacles to the foreign commerce of the                defined as any action by an agency                     and supporting documents must be
                                                    United States. For purposes of these                    (normally published in the Federal                     submitted in writing by February 17,
                                                    requirements, Federal agencies may                      Register) that promulgates, or is                      2017.
                                                    participate in the establishment of                     expected to lead to the promulgation of,
                                                    international standards, so long as the                                                                        ADDRESSES:   You may submit comments
                                                                                                            a final rule or regulation (including a
                                                    standards have a legitimate domestic                                                                           on this document, identified by NOAA–
                                                                                                            notice of inquiry, ANPRM, and NPRM)
                                                    objective, such as providing for safety,                                                                       NMFS–2016–0141, by any of the
                                                                                                            that (1)(i) is a significant regulatory
                                                    and do not operate to exclude imports                                                                          following methods:
                                                                                                            action under Executive Order 12866 or
                                                    that meet this objective. The statute also              any successor order and (ii) is likely to                 • Electronic Submission: Submit all
                                                    requires consideration of international                 have a significant adverse effect on the               electronic public comments via the
                                                    standards and, where appropriate, that                  supply, distribution, or use of energy; or             Federal e-Rulemaking Portal. Go to
                                                    they be the basis for U.S. standards.                   (2) is designated by the Administrator of              www.regulations.gov/
                                                       PHMSA participates in the                            the Office of Information and Regulatory               #!docketDetail;D=NOAA–NMFS–2016–
                                                    establishment of international standards                Affairs as a significant energy action.                0141, click the ‘‘Comment Now!’’ icon,
                                                    in order to protect the safety of the                      PHMSA welcomes any data or                          complete the required fields, and enter
                                                    American public, and PHMSA has                          information related to energy impacts                  or attach your comments.
                                                    assessed the effects of the proposed rule               that may result if P–1669 is adopted, as                  • Mail: Submit written comments to
                                                    to ensure that it does not cause                        well as possible alternatives and their                Celia Barroso, NMFS West Coast Region
                                                    unnecessary obstacles to foreign trade.                 energy impacts. Please describe the                    Long Beach Office, 501 W. Ocean Blvd.,
                                                    Accordingly, this rulemaking is                         impacts and the basis for the comment.                 Suite 4200, Long Beach, CA 90802.
                                                    consistent with Executive Order 13609                                                                          Include the identifier ‘‘NOAA–NMFS–
                                                    and PHMSA’s obligations under the                         Issued in Washington, DC, on January 10,
                                                                                                                                                                   2016–0141’’ in the comments.
                                                                                                            2017, under the authority of 49 U.S.C.
                                                    Trade Agreement Act, as amended.                        5103(b).                                                  Instructions: Comments must be
                                                       PHMSA welcomes any data or                           Anthony R. Foxx,                                       submitted by one of the above methods
                                                    information related to international                                                                           to ensure they are received,
                                                                                                            Secretary of Transportation.
                                                    impacts that may result if Petition P–                                                                         documented, and considered by NMFS.
                                                                                                            [FR Doc. 2017–00913 Filed 1–17–17; 8:45 am]
                                                    1669 is adopted, as well as possible                                                                           Comments sent by any other method, to
                                                    alternatives and their international                    BILLING CODE 4910–60–P
                                                                                                                                                                   any other address or individual, or
                                                    impacts. Please describe the impacts                                                                           received after the end of the comment
                                                    and the basis for the comment.                                                                                 period, may not be considered. All
                                                                                                            DEPARTMENT OF COMMERCE                                 comments received are a part of the
                                                    I. Statutory/Legal Authority for This
                                                                                                                                                                   public record and will generally be
                                                    Rulemaking                                              National Oceanic and Atmospheric                       posted for public viewing on
                                                       This ANPRM is published under the                    Administration                                         www.regulations.gov without change.
                                                    authority of 49 U.S.C. 5103(b), which                                                                          All personal identifying information
                                                    authorizes the Secretary of                             50 CFR Part 300                                        (e.g., name, address, etc.) submitted
                                                    Transportation to ‘‘prescribe regulations               [Docket No. 161031999–7017–01]                         voluntarily by the sender will be
                                                    for the safe transportation, including                                                                         publicly accessible. Do not submit
                                                    security, of hazardous materials in                     RIN 0648–BG41                                          confidential business information, or
                                                    intrastate, interstate, and foreign                                                                            otherwise sensitive or protected
                                                                                                            International Fisheries; Pacific Tuna
                                                    commerce.’’ The intent of this ANPRM                                                                           information. NMFS will accept
                                                                                                            Fisheries; 2017 and 2018 Commercial
                                                    is to address the safety concerns raised                                                                       anonymous comments (enter ‘‘N/A’’ in
                                                                                                            Fishing Restrictions for Pacific Bluefin
                                                    by Petition P–1669 in respect to the                                                                           the required fields if you wish to remain
                                                                                                            Tuna in the Eastern Pacific Ocean
                                                    transportation of hazardous materials in                                                                       anonymous).
                                                    commerce. Our goal in this ANPRM is                     AGENCY:  National Marine Fisheries                        Copies of the draft Regulatory Impact
                                                    to gather the necessary information to                  Service (NMFS), National Oceanic and                   Review (RIR) and other supporting
                                                    determine a course of action in a                       Atmospheric Administration (NOAA),                     documents are available via the Federal
                                                    potential Notice of Proposed                            Commerce.                                              eRulemaking Portal:
                                                    Rulemaking (NPRM).                                      ACTION: Proposed rule; request for                     www.regulations.gov, docket NOAA–
                                                    J. Regulation Identifier Number (RIN)                   comments.                                              NMFS–2016–0141, or contact with the
                                                                                                                                                                   Regional Administrator, Barry A. Thom,
                                                       A regulation identifier number (RIN)                 SUMMARY:   The National Marine                         NMFS West Coast Region, 1201 NE
                                                    is assigned to each regulatory action                   Fisheries Service (NMFS) is proposing                  Lloyd Blvd., Suite 1100, Portland, OR
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                                                    listed in the Unified Agenda of Federal                 regulations under the Tuna Conventions                 97232–1274, or
                                                    Regulations. The Regulatory Information                 Act to implement Resolution C–16–08                    RegionalAdministrator.WCRHMS@
                                                    Service Center publishes the Unified                    (Measures for the Conservation and                     noaa.gov.
                                                    Agenda in April and October of each                     Management of Bluefin Tuna in the
                                                    year. The RIN contained in the heading                  Eastern Pacific Ocean). This Inter-                    FOR FURTHER INFORMATION CONTACT:
                                                    of this document can be used to cross-                  American Tropical Tuna Commission                      Celia Barroso, NMFS, 562–432–1850,
                                                    reference this action with the Unified                  (IATTC) Resolution establishes annual                  Celia.Barroso@noaa.gov.
                                                    Agenda.                                                 and trip catch limits on commercial                    SUPPLEMENTARY INFORMATION:



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Document Created: 2018-02-01 15:19:00
Document Modified: 2018-02-01 15:19:00
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionAdvance notice of proposed rulemaking (ANPRM).
DatesComments must be received by March 20, 2017.
ContactLad Falat, Director, Engineering and Research, (202) 366-4545, Office of Hazardous Materials Safety, Pipeline and Hazardous Materials Safety Administration, U.S. Department of Transportation, 1200 New Jersey Ave. SE., Suite E21-314, Washington, DC 20590-0001.
FR Citation82 FR 5499 
RIN Number2137-AF24
CFR Citation49 CFR 171
49 CFR 172
49 CFR 173
49 CFR 174
49 CFR 177
49 CFR 178
49 CFR 179
49 CFR 180

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