1. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration WELCOME DOT DESIGNATED APPROVAL AGENCIES March 17, 2014 Thomas J Lynch, Investigator Southwest Region, Houston, TX

2. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration IM Portable Tank - 2 -

3. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration IM Portable Tank - 3 -

4. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration IM Portable Tank - 4 -

5. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration IM Portable Tank - 5 -

6. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Inspection Data - 6 - Based upon my review of the data base: 7 DAA inspections: 2 Enforcement actions; 3 Warning letters; 2 No further actions 11 Inspections of tank companies; 6 Enforcement reports 3 Tickets 2 No further actions

7. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Inspection Data (con’t) - 7 - 16 Recertify - Retest –Repair facilities 3 Enforcement Reports 3 Tickets 5 Warning letters 5 No Further Actions

8. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Inspection Data (con’t) - 8 - 3 Fitness reviews of DAA’s 3 No Further Actions 2 Accident/Failure investigations 2 Enforcement reports (issued NOPV’s)

9. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Noted Compliance issues - 9 - 1. Manufacturing of IM portable tanks which did not match drawings; manufacturing of IM portable tanks not in accordance with the ASME Code; manufacturing IM portable tanks with relief valve not in proper location; manufacturing IM portable tanks without using a Designated Approval Agency being independent from the manufacturer. 2. Manufacturing of IM portable tanks where the approval agency did not witness the testing of pressure relief devices.

10. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Noted Compliance issues 3 Manufacturer of IM portable tanks using plans approved by the DAA but not available for review for inspection by manufacturer and/or representative of the DOT. 4 Manufacture, repair, modify, and or rebuilding IM portable tanks under the terms of an issued DOT special permit that did not meet the terms of the special permit. - 10 -

11. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Noted Compliance issues 5. Manufacture IM portable tanks w/o internal valves and correct nozzles. 6. Offering non-specification portable tanks (cutting boxes) for transportation subject to the requirements of 49 CFR 176.340 and the requirements of a DOT specification 57 portable tank when the pressure relief device of the tank are set to open prior to 5 psig. [49 CFR §§ 171.2(g), and 176.340(b)(8)] - 11 -

12. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Noted Compliance issues 7. Representing and certifying UN portable tanks as meeting the requirements of the HMR, when records of retest and inspection are missing test and inspection specifics. 8 Allowing employees to perform functions subject to the requirements of the HMR, when general awareness, function- specific and security awareness training had not been provided. [49 CFR §§ 172.702(b) and 172.704(a)] - 12 -

13. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Noted Compliance issues 9. Allowing hazmat employees to perform functions subject to the requirements of the HMR, while failing to provide recurrent general awareness, function-specific, and security awareness training. [49 CFR §§ 171.2(a), (c), (g), 172.702(b) and 172.704(c)(2)] 10. Allowing hazmat employees to perform functions subject to the requirements of the HMR, while failing to create and retained training records for such training. [49 CFR § 172.704(d)] - 13 -