[Federal Register Volume 78, Number 109 (Thursday, June 6, 2013)]
[Notices]
[Pages 34156-34160]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-13354]
-----------------------------------------------------------------------
DEPARTMENT OF TRANSPORTATION
Pipeline and Hazardous Materials Safety Administration
[Docket No. PHMSA-2013-0123, Notice No.13-09]
Hazardous Materials: Emergency Recall Order
AGENCY: Pipeline and Hazardous Materials Safety Administration (PHMSA),
DOT.
ACTION: Emergency Recall Order.
-----------------------------------------------------------------------
SUMMARY: This notice publishes Emergency Recall Order 2013-002 (DOT
Docket Number PHMSA-2013-0123), issued on May 24, 2013 to The Lite
Cylinder Company, Inc. The Office of Hazardous Materials Safety issued
this Emergency Order pursuant to authority granted in 49 U.S.C. 5121(d)
and 49 CFR 109.17(c), and is published in accordance with 49 CFR
109.19(f)(2)(iv). Emergency Order 2013-002 mandates a recall of (1) all
cylinders manufactured by The Lite Cylinder Company, Inc. and marked as
authorized under DOT-SP 14562 (and DOT-SP 13957 as authorized therein)
and DOT-SP 13105, (2) any cylinder requalified under H706, and (3) any
cylinders manufactured under M5729 (collectively, ``the affected
packaging''), and was issued after PHMSA's finding that the affected
packaging constitutes, or are causing, an imminent hazard to public
safety.
DATES: Effective Date:
May 24, 2013.
FOR FURTHER INFORMATION CONTACT: Adam Horsley, Attorney, Office of the
Chief Counsel, PHMSA, 202-366-4400.
SUPPLEMENTARY INFORMATION: The full text of Emergency Recall Order
2013-002 is as follows:
This notice constitutes an Emergency Recall Order by the United
States Department of Transportation (DOT) pursuant to 49 U.S.C. 5121(d)
and 49 CFR 109.17(c); and pursuant to delegation of authority to the
Associate Administrator, Pipeline and Hazardous Materials Safety
Administration (PHMSA), Office of Hazardous Materials Safety. By this
Order, PHMSA is mandating a recall of all cylinders manufactured by The
Lite Cylinder Company, Inc. (Lite Cylinder) and marked as authorized
under DOT-SP 14562 (and DOT-SP 13957 as authorized therein), DOT-SP
13105; any cylinder requalified under H706; and any cylinders
manufactured under M5729 (hereinafter referred to as affected
packaging(s)). In addition, this order applies to any person who is in
possession of an affected packaging subject to this order.
PHMSA finds that the affected packagings constitute or are causing
an imminent hazard to public safety. For more detailed information see
``Background/Basis for Order'' below.
This Order Applies to
(1) Lite Cylinder, its officers, directors, employees,
subcontractors, investors and agents (``Lite Cylinder''); and
(2) Any person who is in possession of an affected packaging,
including any officers, directors, employees, subcontractors,
investors, and agents of said person (for purposes of this Order,
``Cylinder Owners'').
Under no circumstances should a cylinder described in this
emergency recall order be filled, refilled, or used for the
transportation of hazardous materials.
Effective Immediately, Lite Cylinder Must
(1) Contact all Cylinder Owners to whom affected packagings have
been
[[Page 34157]]
sold and inform them of the Emergency Recall Order and provide them the
proper and necessary instruction and information for the safe handling
and discharge of hazardous material and for the return shipment of
cylinders no later than five business days of this Order. The
information must include instruction that directs Cylinder Owners to
use only qualified persons, trained in handling cylinders in accordance
with Federal regulations, and to safely discharge, purge, and remove
the valve from, the cylinder.
(2) Confirm that the returned cylinders are purged and emptied.
(3) Ensure that the purged and empty cylinders are returned to the
manufacturer at the following address: The Lite Cylinder Company, 139
Southeast Parkway Court, Franklin, TN 37064.
(4) Provide by email the serial number of each returned cylinder to
PHMSA at [email protected] (referencing ``Lite Cylinder'' in the
subject line) by the close of business daily. Please note any problems
that may have been witnessed with the cylinder (e.g. leakage, damage,
etc.).
(5) Permanently obliterate the special permit specification
markings and render them incapable of holding pressure within five
business days of possession, including those in inventory.
PHMSA Urgently Advises Cylinder Owners to
(1) Take proper safeguards in identifying and handling the affected
packagings identified in this Order,
(2) Use the instruction and information provided by Lite Cylinder
for the safe handling and discharge of hazardous material and for the
return shipment of cylinders. This information will guide Cylinder
Owners to use only qualified persons, trained in handling cylinders in
accordance with Federal regulations, and to safely discharge, purge,
and remove the valve from, the cylinder.
(3) Return the purged and empty cylinders to the manufacturer at
the following address: The Lite Cylinder Company, 139 Southeast Parkway
Court, Franklin, TN 37064.
This Order is effective immediately and remains in effect unless
withdrawn in writing by the Associate Administrator or his designee, or
until it otherwise expires by operation of law.
Information Gathering
Any person who is aware of a failure or incident relating to any
cylinder marked DOT-SP 14562, DOT-SP 13957, DOT-SP 13105; any cylinder
requalified under H706; and other cylinder manufactured under M5729 is
requested to contact PHMSA, as instructed in the Emergency Contact
Official section below, as soon as possible. PHMSA requests information
on all cylinders made under the foregoing special permits and
approvals, which include 10-pound, 20-pound, 25-pound and 33-pound
cylinders.
Jurisdiction
Lite Cylinder manufactures or has manufactured, marked, certified
and sold composite cylinders as meeting DOT-SP 14562, DOT-SP 13957, and
DOT-SP 13105; performed cylinder requalification under approval H706;
and manufactured cylinders under Registration Number M5729, which are
used to transport hazardous materials within the United States and
therefore is a ``person,'' as defined by 49 U.S.C. 5102(9), and, a
``person'' under 1 U.S.C. 1. Accordingly, Lite Cylinder, or any person
in possession of an affected packaging, is subject to the authority and
jurisdiction of the Associate Administrator, including the authority to
impose emergency restrictions, prohibitions, recalls, or out-of-service
orders, without notice or an opportunity for hearing, to the extent
necessary to abate the imminent hazard (49 U.S.C. 5121(d)).
Background/Basis for Order
On October 10, 2012, PHMSA suspended Lite Cylinder's special
permits DOT-SP 14562, (and DOT-SP 13957 as authorized therein), and
DOT-SP 13105, cylinder requalification approval H706 and manufacturer`s
Registration Number approval M5729, and proposed termination of the
above approvals and special permits unless Lite Cylinder could show
cause why such action should not be taken. Concurrent with this action
today, PHMSA has terminated the above special permits and approvals for
cylinder requalification, and manufacturer's Registration Numbers. Upon
reliable and credible information received in the course of
investigations, PHMSA has learned that Lite Cylinder has:
1. Failed to notify the Associate Administrator for Hazardous
Materials Safety, in writing, of incidents involving DOT-SP 14562
cylinder failures, as required by DOT-SP 14562, Paragraph 12.
Paragraph 12 of DOT-SP 14562 requires the grantee to notify the
Associate Administrator for Hazardous Materials Safety, in writing, of
any incident involving a package (including a cylinder failure),
shipment or operation conducted under the terms of the special permit.
PHMSA discovered that Lite Cylinder failed to report three cylinder
failures in service and one cylinder failure during production testing,
in violation of DOT-SP 14562. PHMSA obtained (1) a copy of a settlement
agreement Lite Cylinder entered into with Robert Nicholson on January
20, 2012 after a DOT-SP 14562 cylinder ruptured and damaged a gas grill
in New Jersey, which Lite Cylinder's owner admitted was a result of a
flaw in the seam, (2) signed employee statements regarding an injury to
an Independent Inspection Authority (IIA) employee during a low
pressure test at Lite Cylinder's facility, and (3) a report from
Freudenberg Texbond regarding a cylinder that separated at their Macon,
Georgia facility on September 7, 2012. Lite Cylinder employees also
described a cylinder failure that injured several people in the
Dominican Republic, which involved 33-pound DOT-SP 13957 cylinders.
In addition to the failures described above, PHMSA discovered that,
from January 14, 2009 to September 25, 2012, approximately 19 cylinder
owners had returned DOT-SP 14652 cylinders due to sidewall or bottom
leaks. Lite Cylinder documented most of these returns in their
complaint log, but failed to report them to PHMSA.
2. Failed to comply with PHMSA Notice of Suspension dated May 10,
2007, which required Lite Cylinder to cease the sales of all DOT-SP
13957 cylinders.
On May 10, 2007, the PHMSA issued a Notice of Suspension of DOT-SP
13957, which prohibited the manufacture and continued use of 33-pound
DOT-SP 13957 cylinders. PHMSA's investigators obtained an Invoice
2070, dated July 17, 2008, which shows that Lite Cylinder
sold and shipped one thousand cylinders to Cocigas SA in Canabacos,
Santiago Dominican Republic. The invoice listed the cylinders as
``33 Composite Lite Cylinder Complete'' and provided
instructions on how to obtain a copy of DOT-SP 14562, the special
permit that PHMSA issued which allowed resumed use of 10 pound and 20
pound DOT-SP 13957 cylinder under the authority of DOT-SP 14562 without
remarking. Several Lite Cylinder employees, including Mr.
Reifschneider, Lite Cylinder's President, provided signed statements
saying that the cylinders sold to Cocigas were manufactured under DOT-
SP 13957. Furthermore, PHMSA has obtained photographs showing that
cylinders sold to Cocigas remained marked as DOT-SP cylinders.
According to the statements, one of
[[Page 34158]]
these cylinders subsequently failed during transportation and injured
several occupants of the transport vehicle.
3. Failed to test DOT-SP 14562 cylinders at the minimum test
pressure of 480 psi as required by Paragraph 7.a.1 of the Fifth
Revision issued on October 19, 2011.
On October 19, 2011, PHMSA granted Lite Cylinder's request for a
5th Revision to DOT-SP 14562, which increased the maximum service
pressure for these cylinders to 320 psi and the minimum test pressure
to 480 psi. Lite Cylinder's manufacturer's reports to PHMSA indicate
that it has tested 11,416 DOT-SP 14562 cylinders at 441 psi since the
5th Revision became effective on October 19, 2011.
4. Failed to conduct cycle and burst testing at random intervals,
as required by DOT-SP 14562, Paragraphs 7.a.10.ii-.iii.
DOT-SP 14562 requires cycle testing for one cylinder taken at
random from each group of 1000 cylinders, and burst testing for one
cylinder taken at random from each run of 200 cylinders or less. Lite
Cylinder's records show that the company conducted all of the required
cycle and burst tests at the beginning of each lot manufacturing
process, rather than taking random samples.
5. Failed to manufacture DOT-SP 14562 cylinders in accordance with
the Quality Systems Manual (QSM) on file with PHMSA's Permits and
Approvals Division, as required by Paragraph 7.a of DOT-SP 14562.
PHMSA's review of Lite Cylinder's manufacturing records show that
the company failed to follow the requirements of the QSM on file with
PHMSA. Specifically, Lite Cylinder:
Continued manufacturing DOT-SP 14562 cylinders after puck
tests failed to meet the required hardness test limits;
Failed to perform and document grinding wheel adjustments
and inspections to ensure that the joiner was properly aligned and
operating as required; and
Failed to perform burst testing following a cylinder
failure during the manufacturing process.
6. Failed to notify PHMSA of changes to its QSM as required by
Paragraph 7.a of DOT-SP 14562.
DOT-SP 14562 required Lite Cylinder to manufacture cylinders in
accordance with the QSM on file with PHMSA, and to provide written
notice to PHMSA of any changes to the QSM. Lite Cylinder made
significant changes to its QSM on February 14, 2008 (e.g. puck testing
procedures, joiner maintenance requirements, resin and hardener flow
metering), but never submitted the revisions to PHMSA.
7. Marked and sold ``DOT-SP 14562'' cylinders that were not
designed and manufactured in conformance with TLCCI drawings D10DOT,
D10DOTAS, D20DOT, D20DOTAS, DOT 33-100-D0001, DOT 33-100-D0002, DOT 33-
100-D0003, DOT 33-D0004 on file with PHMSA's Office of Hazardous
Materials Safety--Approvals and Permits as required by Paragraph 7.a of
DOT-SP 14562.
On May 17, 2013, PHMSA discovered that a prototype cylinder
manufactured by Lite Cylinder had separated circumferentially while in
service powering a lawn mower. Upon further investigation, PHMSA
discovered that Lite Cylinder had sold 40 similar cylinders marked as
``DOT-SP 14562'' to Onyx, a retailer in Stanley, North Carolina. On May
22, 2013, PHMSA obtained samples of the 29 composite cylinders
delivered to Onyx, which included 20 pound, 2-hole cylinders, and
discovered that the serial numbers for the sample cylinders
corresponded to a 2-hole design classified as ``DC20 2 Hole'' in Lite
Cylinder's master list of cylinders manufactured since 2007. There is
no approved design drawing on file with PHMSA authorizing the 20 pound,
2-hole design.
PHMSA also obtained cylinders from Mesa, Arizona with a 10 pound,
3-hole design, that were marked ``DOT-SP 14562.'' There is no approved
design drawing on file with PHMSA authorizing a 10 pound, 3-hole
design.
Based on this evidence, PHMSA finds that Lite Cylinder marked, sold
and offered for transportation unapproved cylinders in violation of
Paragraph 7.a of DOT-SP 14562. This further demonstrates Lite
Cylinder's pattern of making unilateral changes to its manufacturing
process, quality control oversight, and cylinder designs without first
seeking PHMSA's approval.
Additional Unsafe Conditions and Practices
During the September 28, 2012 inspection, PHMSA noted several
equipment issues related to Lite Cylinder's production process. Lite
Cylinder had installed an alarm and automatic shutdown device to stop
manufacturing if the hardening catalyst required to chemically weld the
cylinder seams was not being properly added during the gluing process.
Several Lite Cylinder employees provided statements that the alarm and
automatic shutdown process had never functioned as designed, and
indicated that the shutdown device had not stopped the manufacturing
process when it should have detected insufficient hardening catalyst.
PHMSA is also concerned about the increasing failure rate that Lite
Cylinder's test reports indicate for DOT-SP 14562 cylinders. PHMSA's
investigation revealed that in 2009, DOT-SP cylinders had a failure
rate of 4%. From 2009-2012, that failure rate has doubled to 9.4%. This
failure rate may have been even higher from October 19, 2011 to present
if Lite Cylinder had been testing at 480 psi, as required by DOT-SP
14562, rather than the 441 psi at which they were testing. This trend
toward higher failure rates has given PHMSA serious concerns regarding
the safety of cylinders manufactured by Lite Cylinder. The following
table summarizes failure rates by year and cylinder volume:
Failure Rates for DOT-SP 14562 Cylinders
----------------------------------------------------------------------------------------------------------------
2009 2010 2011 2012
(percent) (percent) (percent) (percent)
----------------------------------------------------------------------------------------------------------------
10 lb....................................................... 4 6 7 7
20 lb....................................................... 1 5 14 9
25 lb....................................................... 5 3 2 N/A
33 lb....................................................... N/A 65 16 36
Overall..................................................... 4 7 11 9.4
----------------------------------------------------------------------------------------------------------------
At the time of the suspension and proposal to terminate on October
10, 2012, Lite Cylinder had approximately 1,952 cylinders that were
manufactured and marked prior to October 9, 2012. The company requested
permission to sell these cylinders. To evaluate the level of safety of
the cylinders and the approximately 55,000 currently in
[[Page 34159]]
service, PHMSA developed a testing protocol (Test Plan) to determine
whether these cylinders met the prescribed designs and the minimum
safety level. The Test Plan mandated pressure testing of each cylinder,
and sample ambient cycle testing and environmental cycle testing of
cylinders from each of the manufacturing lots represented. Cylinders
subjected to the cycle tests were then put through the hydrostatic
pressure test to burst.
Each cylinder was also subjected to a pneumatic pressure test at
test pressure (1.5 x service pressure), followed by a pneumatic leak
pressure test conducted at service pressure in a water bath. During the
leak pressure test, leaks can be detected by bubbles leaving the
cylinder. The leak pressure test ensures that the cylinder will not
leak hazardous materials at the maximum charge pressure it will
experience in service.
Of the 1,952 cylinders that Lite Cylinder had on hand, PHMSA
concluded that approximately 804 were not manufactured in accordance
with the hardness ``puck test'' requirements of DOT-SP 14562 and
excluded these from testing. Of the 1,148 remaining cylinders that Lite
Cylinder certified as meeting the special permit requirements, 53
leaked during the pneumatic leak pressure testing, demonstrating a
failure rate of approximately 4.6% in violation of the requirements of
DOT-SP 14562 and the QSM. These cylinders were previously tested during
the manufacturing process, and Lite Cylinder certified them as meeting
all requirements of the special permit. Therefore, the entire sample
should have been leak-free.
PHMSA believes that the cylinders previously sold by Lite Cylinder,
although tested during the manufacturing process, may also exhibit
leakage in service. These cylinders are commonly used to contain
flammable gas. PHMSA considers the risk of fire due to leaking DOT-SP
14562 cylinders containing flammable gas to be unacceptable. In order
to avoid potential injury or damage, PHMSA is removing from service all
DOT-SP 14562 cylinders.
Finding of Imminent Hazard
Based on the foregoing, PHMSA finds that (1) Lite Cylinder marked
and sold ``DOT-SP 14562'' cylinders that were not designed and
manufactured in conformance with approved design drawings on file with
PHMSA, (2) DOT-SP 14562 cylinders have been involved in unreported
cylinder failures resulting in at least one serious injury and property
damage, (3) Lite Cylinder has failed to conduct required testing,
maintain quality control procedures, and exhibited an increasing
failure rate in its manufacture of DOT-SP 14562 cylinders, (4) Lite
Cylinder has failed to detect and condemn leaking cylinders during its
manufacturing process and has marked and offered leaking cylinders for
transportation in commerce. Therefore, the forgoing violations and
unsafe conditions and practices are presenting a substantial likelihood
of severe personal injury or a substantial endangerment to health,
property or the environment and constitute or are causing an imminent
hazard to the public safety.
Remedial Action
In order to avoid any potential injury or damage, PHMSA is
requiring the removal from service of all affected packagings.
Effective immediately, Lite Cylinder must:
(1) Contact all Cylinder Owners to whom affected packagings have
been sold and inform them of the Emergency Recall Order and provide
them the proper and necessary instruction and information for the safe
handling and discharge of hazardous material and for the return
shipment of cylinders no later than five business days of this Order.
The information must include instruction that directs Cylinder Owners
to use only qualified persons, trained in handling cylinders in
accordance with Federal regulations, and to safely discharge, purge,
and remove the valve from, the cylinder.
(2) Confirm that the returned cylinders are purged and emptied.
(3) Ensure that the purged and empty cylinders are returned to the
manufacturer at the following address: The Lite Cylinder Company, 139
Southeast Parkway Court, Franklin, TN 37064.
(4) Provide by email the serial number of each returned cylinder to
PHMSA at [email protected] (referencing ``Lite Cylinder'' in the
subject line) by the close of business daily. Please note any problems
that may have been witnessed with the cylinder (e.g. leakage, damage,
etc.).
(5) Permanently obliterate the special permit specification
markings and render them incapable of holding pressure within five
business days of possession, including those in inventory.
Information Gathering
Any person who is aware of a failure or incident relating to any
cylinder marked DOT-SP 14562, DOT-SP 13957, DOT-SP 13105; any cylinder
requalified under H706; and other cylinder manufactured under M5729 is
requested to contact PHMSA, as instructed in the Emergency Contact
Official section below, as soon as possible. PHMSA requests information
on all cylinders made under the foregoing special permits and
approvals, which include 10-pound, 20-pound, 25-pound and 33-pound
cylinders,
Rescission of this Order
Before this order can be rescinded, Lite Cylinder must be able to
demonstrate adequately to the Associate Administrator that you have
taken actions to remedy the unsafe conditions and practices and that
such actions taken have, in fact, resulted in an imminent hazard no
longer existing. If Lite Cylinder is able to make such a demonstration,
the Associate Administrator will issue a Rescission Order
Failure to Comply
Any person failing to comply with this Emergency Recall Order is
subject to civil penalties of up to $175,000 for each violation or for
each day they are found to be in violation (49 U.S.C. 5123). A person
violating this Emergency Recall Order is also subject to criminal
prosecution, which may result in fines under title 18, imprisonment of
up to ten years, or both (49 U.S.C. 5124).
Right to Review
Any person to whom the Associate Administrator has issued an
Emergency Recall Order is entitled to review of the order pursuant to
49 U.S.C. 5121(d)(3) and in accordance with section 554 of the
Administrative Procedure Act (APA), 5 U.S.C. 500 et seq. Any petition
seeking relief must be filed within 20 calendar days of the date of
this order (49 U.S.C. 5121(d)(3)), and include one copy addressed to
the Chief Safety Officer (CSO) for the Pipeline and Hazardous Materials
Safety Administration, United States Department of Transportation, 1200
New Jersey Avenue SE., Washington DC 20590-0001 (ATTENTION: Office of
Chief Counsel) (electronically to [email protected]) and one
copy addressed to U.S. DOT Dockets, U.S. Department of Transportation,
1200 New Jersey Avenue SE., Room W12-140, Washington, DC 20590 (http://Regulations.gov under Docket PHMSA-2013-0123). Furthermore, a
petition for review must state the material facts at issue which the
petitioner believes dispute the existence of an imminent hazard and
must include all evidence and exhibits to be considered. The petition
must also state
[[Page 34160]]
the relief sought. Within 30 days from the date the petition for review
is filed, the CSO must approve or deny the relief in writing; or find
that the imminent hazard continues to exist, and extend the original
Emergency Recall Order. In response to a petition for review, the CSO
may grant the requested relief in whole or in part; or may order other
relief as justice may require (including the immediate assignment of
the case to the Office of Hearings for a formal hearing on the record).
In order to request a formal hearing in accordance with 5 U.S.C.
554, the petition must state that a formal hearing is requested, and
must identify the material facts in dispute giving rise to the request
for a hearing. A petition which requests a formal hearing must include
an additional copy addressed to the Chief Administrative Law Judge,
U.S. Department of Transportation, Office of Hearings, M-20, Room E12-
320, 1200 New Jersey Avenue SE., Washington, DC 20590 (FAX: (202) 366-
7536).
Emergency Contact Official
If you have any questions concerning this Emergency Restriction/
Prohibition Order you should contact John Heneghan, Regional Director,
at (404) 832-1140, [email protected], or 233 Peachtree Street,
Suite 602, Atlanta, GA 30303 or Aaron Mitchell, Director Field Services
Support, at (202) 366-4455, [email protected] or 1200 New Jersey
Avenue SE., Washington, DC 20590.
Issued in Washington, DC, on May 31, 2013.
Magdy El-Sibaie,
Associate Administrator for Hazardous Materials Safety, Pipeline and
Hazardous Materials Safety Administration.
[FR Doc. 2013-13354 Filed 6-5-13; 8:45 am]
BILLING CODE 4910-60-P