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OIG Tells PHMSA to “Immediately Improve” Explosives Approvals, Lab Safety Concerns

On April 7, 2010, the Department of Transportation’s Inspector General issued a Management Advisory on weaknesses in the Pipeline and Hazardous Materials Safety Administration’s safety oversight of its explosives classification approvals.

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The advisory was issued at the request of the House Subcommittee on Railroads, Pipelines, and Hazardous Materials, as a follow-up to the OIG’s March 2010 report on how PHMSA processes explosive classification approvals. In addition, the committee will hold a hearing on PHMSA’s oversight procedures on April 22, 2010.

(In early March 2010, the OIG issued a report stating that new approaches were needed in managing PHMSA’s special permits and approvals process. The March report found inadequate reviews of applicants’ safety histories, the failure to conduct regular compliance reviews of individual and companies holding special permits and approvals, granting special permits and approvals without sufficient data or analysis, etc. See ITT Online Archives or 3/18/10 news, (Ref: 10031825), for BP summary.)

The OIG now states that immediate attention is needed to resolve two overarching concerns:

1. Unclear guidelines for classification approvals. PHMSA lacks an effective evaluation process for reviewing and authorizing explosive classification approvals according to Hazardous Materials Regulations. OIG states that PHMSA lacks uniform, formalized guidelines for classifying and approving explosives, and there is no clear consensus on the definition of a new explosive. As a result the regulations have been applied unevenly.

The agency also does not adhere to regulatory requirements for reclassifying an explosive to a non-explosive class (e.g. approvals occurred without the required authorized testing lab report and despite conflicting chemist conclusions). PHMSA also lacks a formal process and controls for appropriately resolving internally contested safety decisions.

2. Oversight of labs. PHMSA has been ineffective in its oversight of four labs it has authorized to examine and test explosives. Over the last 10 years, PHMSA has not conducted fitness inspections or safety reviews of any of its four approved explosives testing labs, which puts the integrity of its explosives classification program at risk.

Baseline Assessment Also Needed to Ensure PHMSA’s Effectiveness

DOT also states that PHMSA needs to conduct a baseline assessment to reconfigure operations and procedures to ensure it has an effective process to evaluate explosive classification approvals and oversee its authorized testing labs, and should take a more proactive overall approach to resolving safety issues.

(See ITT Online Archives or 09/16/09 news, (Ref: 09091630), for BP summary of Congress, DOT finding problems with PHMSA’s hazmat special permit and approval processes.)

DOT OIG management advisory dated 4/07/10 available at http://transportation.house.gov/Media/file/Rail/PHMSA%20MA.PDF.

House Transportation and Infrastructure Committee press release dated 4/08/10 available at http://transportation.house.gov/News/PRArticle.aspx?NewsID=1158.