National Propane Gas Ass'n v. United States Department of Transportation

43 F. Supp. 2d 665, 29 Envtl. L. Rep. (Envtl. Law Inst.) 21261, 48 ERC (BNA) 1554, 1999 U.S. Dist. LEXIS 3109, 1999 WL 150322
CourtDistrict Court, N.D. Texas
DecidedMarch 17, 1999
Docket3:97-cv-02576
StatusPublished
Cited by3 cases

This text of 43 F. Supp. 2d 665 (National Propane Gas Ass'n v. United States Department of Transportation) is published on Counsel Stack Legal Research, covering District Court, N.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
National Propane Gas Ass'n v. United States Department of Transportation, 43 F. Supp. 2d 665, 29 Envtl. L. Rep. (Envtl. Law Inst.) 21261, 48 ERC (BNA) 1554, 1999 U.S. Dist. LEXIS 3109, 1999 WL 150322 (N.D. Tex. 1999).

Opinion

FITZWATER, District Judge.

This is a suit to stay the effectiveness of, and to enjoin defendants from enforcing, a *668 final rule of the Research and Special Programs Administration (“RSPA”) of the United States Department of Transportation (“DOT”) entitled, “Hazardous Materials: Cargo Tank Motor Vehicles in Liquefied Compressed Gas Service,” codified at 49 C.F.R. § 171.5(a)(l)(iii) (1997) (the “Final Rule”), and defendants’ interpretation of another regulation, 49 C.F.R. § 177.834(f) (1997) (the “Attendance Regulation”). Plaintiffs allege various violations of the Administrative Procedure Act, 5 U.S.C. § 551 et seq. (“APA”), and the Regulatory Flexibility Act, 5 U.S.C. §§ 601-612 (“RFA”). The court upholds the Final Rule and defendants’ interpretation of the Attendance Rule.

I

A

Liquefied compressed gases, including propane, are delivered by cargo tank motor vehicles. 1 These vehicles are classified by DOT as specification MC 331 large highway transport tank vehicles and specification MC 330 small local delivery vehicles (bobtail trucks). 2 Large vehicles deliver propane primarily to bulk storage and industrial facilities; small vehicles, by contrast, distribute propane chiefly to consumer-size tanks at houses, farms, and other smaller-volume users. These vehicles are regulated by Hazardous Material Regulations (“HMR”), codified at 49 C.F.R. pts. 171-180, first issued by the Interstate Commerce Commission in 1941, and periodically modified thereafter by RSPA. RSPA or its predecessor promulgated the HMR under authority delegated from the Secretary of Transportation (the “Secretary”), see 49 C.F.R. § 1.53 (1998), whom Congress authorized by statute to promote public safety by regulating the transportation of hazardous materials.

Among the HMR safety provisions is the emergency discharge control regulation. 49 C.F.R. § 178.337-ll(a) (1997). This rule requires that cargo tank motor vehicle product discharge openings be protected with an excess flow valve or an internal self-closing stop valve, either of which must automatically close if any tank attachment is sheared off or any attached hoses or piping are separated. 49 C.F.R. §§ 178.337-ll(a)(l)(i) & 178.337-8(a)(2) (1997). The mandatory use of emergency discharge control systems is intended to mitigate large-scale releases of hazardous materials that could result in personal injury and property destruction. The HMR also include the Attendance Regulation. 49 C.F.R. § 177.834®. This rule mandates operator attendance during unloading operations, thereby ensuring that operator-dependent emergency countermeasures can be taken in the event of partial hose or piping rupture, separation, or leak.

In 1997 RSPA adopted the Final Rule in response to what it concluded were serious threats to public safety caused by noncom-plianee with the requirements of § 178.337-ll(a) and the attendance requirements of § 177.834(i)(3).

B

The investigation of a September 8,1996 incident in Sanford, North Carolina— which revealed widespread industry noncompliance with the HMR — in principal part prompted the rulemaking process at issue in this case. In the Sanford accident more than 35,000 gallons of propane were released during a delivery by a specification MC 331 cargo tank motor vehicle at a bulk storage facility. This mishap occurred when the discharge hose from the cargo tank separated at its hose coupling at the storage tank inlet connection, resulting in the release of most of the vehicle’s *669 9,800 gallons and more than 30,000 gallons from the storage tanks. According to RSPA, when the driver became aware of the system failure he immediately shut down the engine, which in turn stopped the discharge pump, but he could not access the remote closure control to close the internal stop valve. The emergency discharge control system’s excess flow feature did not function and propane continued to be released. The back flow check valve on the storage tank did not function, resulting in the additional release of propane from the storage tanks.

Based on preliminary information from Sanford, RSPA published on December 13, 1996 an advisory notice in' the Federal Register, alerting persons involved in the design, manufacture, or use of specification MC 330 and MC 331 cargo tank motor vehicles of the problem with the excess flow feature, and reminding them that these tanks and their components must conform to the HMR. See 61 Fed.Reg. 65480 (1996). In response to the notice, plaintiff National Propane Gas Association (“NPGA”) and Mississippi Tank Company (“MTC”), a manufacturer of specification MC 331 cargo tank motor vehicles, submitted emergency éxemption applications from the HMR. 3 These requests led RSPA to find that the problem concerning failure of the excess flow feature with the emergency discharge control systems was more extensive than originally believed. For example, MTC provided preliminary information in support of its exemption application that prompted RSPA to conclude “that there is reason to suspect the problem may be common to nearly all cargo tank motor vehicles used in liquefied compressed gas service within the United States” and that the problem may also exist in non-specification cargo tanks. 62 Fed.Reg. 7638, 7639 (1997).

Based on the emergency exemption applications, discussions with the applicants, information developed by the Federal Highway Administration (“FHWA”) investigation of the Sanford incident, the regulatory history related to the issues, and knowledge of the liquefied compressed gas industry, RSPA and FHWA developed certain information and opinions related to the failure of the excess flow feature with the emergency discharge control system on cargo tanks used to transport liquefied compressed gases. They found that emergency discharge control systems on cargo tanks that transport liquefied gases incorporate as their two basic safety features (1) an excess flow feature designed to stop the flow of gas automatically when piping, fittings, or hoses rupture or separate, and (2) a remotely controlled internal self-closing stop valvfe. RSPA concluded that most specification MC 330 and MC 331 cargo tank motor vehicles are fitted with an internal self-closing stop valve that incorporates an excess flow feature. Section 178.337~ll(a)(l)(i) does not mandate that an internal self-closing stop valve have an excess flow feature.

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43 F. Supp. 2d 665, 29 Envtl. L. Rep. (Envtl. Law Inst.) 21261, 48 ERC (BNA) 1554, 1999 U.S. Dist. LEXIS 3109, 1999 WL 150322, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-propane-gas-assn-v-united-states-department-of-transportation-txnd-1999.