1. Explosives Precursors Outreach Program CIE13 Oviedo, April 2013

2. OVERVIEW  Restricted Components Regulations  Inspection-Compliance-Enforcement  Observations-Concerns  Explosives regulations, 2013  Outreach Program

3. 3 BACKGROUND  The Explosives Safety and Security Branch (ESSB) of Natural Resources Canada administers the Explosives Act and Regulations  The Act and Regulations control the importation, manufacture, storage and sale of commercial explosives, fireworks and pyrotechnics  Following 9/11 explosives legislation and programs were re-evaluated from a security perspective  One of the outcomes of this was the development of the Restricted Components Regulations

4. 4 BACKGROUND (Cont’d)  Restricted Components (explosives precursors) are materials used to produce explosives, but which are not themselves classified or regulated as explosives  They are often used to manufacture home-made explosives for criminal or terrorist purposes  The objective of the Regulations is to secure these materials by increasing physical security by placing controls on consumer sales The aim is to prevent criminal or terrorist acquisition, while not unnecessarily impeding bona fide sales

5. 5 BACKGROUND (Cont’d)  The regulations require controls on sales of 9 common explosives precursors such as ammonium nitrate (AN)  Follow guidelines proposed by US National Research Council study following Oklahoma City bombing  The study identified many chemicals used to produce illegal explosives, and proposed a short list of key precursors for control

6. 6 BACKGROUND (Cont’d) Short List Criteria 1.The chemical should be an essential component in an explosive system…with a potential for significant use as measured in deaths, injuries and property damage 2.The chemical should be reasonably adaptable and available…for making large bombs 3.The chemical should be a critical precursor, i.e., one not easily replaced

7. RESTRICTED COMPONENTS REGULATIONS Regulates Sellers of Restricted Components 9 Restricted Components Ammonium Nitrate (solid & ≥28% nitrogen content - NPK ≥ 80% AN) Nitromethane Sodium nitrate Potassium nitrate Sodium chlorate Potassium chlorate Potassium perchlorate Hydrogen peroxide (30%+) Nitric acid (68%+)

8. SUMMARY OF REGULATIONS Performance-based written  All sellers must enroll with ERD Valid for 5 years Amend for changes  All sellers need to abide with the five criteria for control Secure chemical & Investigate/Report tampering & theft Control access to Chemical & Records Track inventory & Investigate/Report tampering & theft Know your customer Keep records of sale

9. RESTRICTED COMPONENTS REGULATIONS (Cont’d) Provisions of secure storage Maintenance of a list of employees who have access to Restricted Components Reconciliation of incoming and outgoing quantities Weekly inspection of stock for theft Examination of purchaser identification prior to sale Denial of sale for suspicious purposes Maintenance & securing of detailed sales records Maintenance of all records-documents for min 2 years Reporting of suspicious activities: theft, tampering or from sales

10. A FEW STATISTICS A seller may sell more than 1 RC: the overall count of Chemicals being sold is 1332 times

11. 11 Number of sites and Sellers  1295 total RC sites 334 (25%) are sites having AN or AN+  869 total RC sellers 157 (18%) are sellers of AN or AN+  103 (66%) are in Eastern Canada  77 (49%) have AN only  80 (51%) have AN and + *Data: Feb. 2012

12. Learnings from inspections  Processes that are generally in place Securing the Product Avoiding suspicious attempts to purchase  Processes needing improvement Securing the records Providing notices to end-users and to transporters Securing transport Weekly inspections Understanding ownership of product all through the supply chain (e.g.: 3 rd party transport, Import/Export, Wholesales vs. Retail sales)

13. Requirements for Reporting  Mandatory requirements Losses Theft Tampering Refusal to sell  suspicious attempt; and,  excess quantity.  Mandatory reporting To ERD; and, Local Police.  Consequences Loss of enrolment - No sales Fines (up to $50K)

14. Chemical Precursors Outreach Program Are regulations the best approach to ensure secure sales for chemicals of concerns? A regulatory approach requires resources for conducting compliance verifications Most incidents recorded were due to a lack of awareness or failure to follow procedures

15. Outreach Program – 2012/13  Workshops were/are provided as needed on the regulated 9 chemicals  Controls over additional chemicals of concern are being addressed via outreach material for voluntary control  Hexamine  Powdered metals  Ketones  Potassium permanganate  Strong acids  CAN  Urea

16. OUTREACH & EDUCATION PROGRAM  Precursor controls continues to be discussed at various fora  Industry-run programs are being implemented re flexibility, speed of reaction  In parallel, NRCan is developing educational materials and contacting industry associations for support for an expanded information and training program 16

17. OUTREACH : Chemicals of Concern The following 6 chemicals were added to the voluntary control program and some outreach material that has been already distributed. ChemicalNormal Use MEK & AcetoneSolvent, nail polish remover UreaDe-icer, resin intermediates HexamineCamping fuel tablets Sulphuric AcidBattery acid, drain cleaner Citric AcidFood additive UreaFertilizer CANFertilizer 17

18. OUTREACH MATERIAL … Point-of-sale Precautions  Ask technical questions to see if customer knows their business and has a legitimate need for the chemicals  Observe and note suspicious behaviors (i.e., customer seems nervous, hesitates when asked for info, insists on paying in cash)  Refuse to sell to questionable customers  Write down a description of the customer’s physical appearance  Save any paper on which they may have written a name or address. Handle this paper as little as possible, to preserve fingerprints  Example-guidance is available… 18

19. OUTREACH MATERIAL (Cont’d) To detect suspicious activity, consider: Does the customer fit the usual profile? Is the order unusually small, large, repetitious or out of season? Is the intended use of product responsible? Is the mode of payment logical? or, Does the mode of delivery or of pick up fit? 19

20. OUTREACH MATERIAL (Cont’d) To secure your product and records, consider: Is access to your chemicals limited and controlled? Is your chemical secured during delivery? Do you maintain good inventory practices? or, Are sales records and inventory accessible to only those that need access? If you suspect misuse – immediately report it to the RCMP National Security Line at 1-800-420-5805 20

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22. FINAL WORD & WAY FORWARD  Sales of precursors such as AN & HNO3 must be controlled, as they were previously used for HMEs  The current control measures have proven to be of use for preventing inappropriate sales  Appropriate measures are being reviewed periodically  The list of regulated chemicals versus non- regulated is also to be reviewed periodically

23. Comments ?  To increase awareness from sellers for chemicals of concern can only be successfully achieved with the help of efficient sharing of information + experience + knowledge with: Industry Other Government Departments Other Countries How does this compare to your regulatory practices ?

24.  Jean-Luc Arpin  Explosives Regulatory Division / Explosives Safety and Security Branch  jarpin@nrcan.gc.ca