PHMSA letter of interpretation

Crude oil pipeline operator as a "shipper"

Pipeline and Hazardous Materials Safety Administration · May 17, 1993 · Reference No. 93-0010

PHMSA says to use caution with this letter.

Interprets: 49 CFR § 107.601, 49 CFR § 171.8, 49 CFR § 176.5

This is in response to your September 25, 1992 letter requesting clarification on the hazardous materials registration and fee assessment program. Specifically, you asked whether a common carrier who is a crude oil pipeline operator and who loads marine vessels, such as barges or tankers, would be covered as a "shipper" (i.e., offeror). In a subsequent telephone conversation with Ms. Beth Romo of my staff, you stated that the crude oil is transported by pipeline to a storage tank or from a storage tank into a pipeline and then loaded directly into the hold of a vessel

The bulk transportation of hazardous materials in the manner described in your letter is not subject to the Hazardous Materials Regulations (HMR; 49 CFR Parts 171-180). The transport of hazardous materials through pipelines is subject to the Pipeline Safety Regulations contained in 49 CFR Parts 190-199. The bulk carriage of hazardous materials loaded directly into the hold of cargo vessels or barges without containers, (e.g., in tank vessels) is subject to U.S. Coast Guard regulations contained in 46 CFR chapter I, subchapters D, I, N, and O. See 49 CFR 176.5(d). Examples of vessel shipments subject to the HMR are hazardous materials packaged in non-bulk packages (e.g., metal drums, fiberboard boxes, cylinders, etc.) and in "bulk packagings" as defined in 49 CFR 171.8 (e.g., cargo tanks, portable tanks, freight containers). Therefore, if the oil pipeline carrier you described does not perform any activities covered in § 107.601 (such as offering the specified quantities of hazardous materials in non-bulk or bulk packagings), the carrier is not subject to the registration and fee requirements contained in 49 CFR, Part 107, subpart G.

I hope this information is helpful. Please contact this office if you require additional assistance.

A letter of interpretation applies the regulations to the facts the requester described. It isn’t a regulation and isn’t legal advice. The agency’s copy.