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C INTERNA LUS E ONL Y Are there more documents fo rthi s Docke t i n anothe rbox ? *YE S / |N O *Fil l ou t Continuatio n Shee t an d go t o Ste p 2 Interna l SFUN D Bo

xNumbe r Initials/Date : 3/9/200 7 H.T . 4 7 O F 28 3_. P. 2



# . .• ' • •3oo?q-EHS-n-l ••?• /• \ 7 •

PRELIMINAR

YECONOMI C IMPACT ANALYSI S SUPPORTIN GTH E ADVANCE DNOTICE O

F PROPOSE

DRULEMAKIN

GT O DEFIN E COMMERCIA

L EXPLOSIVE S AS EXTREMEL

YHAZARDOUS SUBSTANCE S PURSUAN T T O SECTIO

N 30 2 O F SAR A TITLE II I

Decembe r 20 , 198 9

Prepare d fo r Jerr yNewsome Economic s an

d Technolog

yDivisio n Offic e o f Toxi c Substance s U.S . Environmenta l Protectio n Agenc y Washington , D.C . 2046 0P. 3

ACKNOWLEDGEMENT S Thi s repor t summarize s wor k performe d b yIC F Incorporate d fo r the U.S . Environmenta l Protectio n Agency(EPA ) unde r EP AContrac t No . 68-D8-0116 , Wor k Assignmen t No . 2-20 . EPA' s Wor k Assignmen t Manage r i s Mr . JerryNewsome o f the Offic e o f Toxi c Substances , Offic e o f Pesticide s an d Toxi c Substances . IC F staf f contributing t o thi s repor t includ e Terr i Bimes , Rober t Costa , Jame s Dickson , Susan Kito , Georg e Lowden , NancyO'Connor , an d Elle n Warhit .

DISCLAIME R Thi s documen t ha s bee n reviewe d an d approve d fo r publicatio n b ythe Offic e o f Toxi c Substances , Offic e o f Pesticide s an d Toxi c Substances , U.S . Environmenta l Protectio n Agency . Th e us e o f trad e name s o r commercia l product s doe s no t constitut e an endorsemen t o r recommendatio n fo r us e b ythe U.S . Environmenta l Protectio n Agency .P. 4

TABLE O F CONTENT S Chapte r Pag e
1 . INTRODUCTIO

N1- 1 1.1 . PURPOS E O F THI S REPORT 1- 1 1.2 . ORGANIZATIO

NO F THI S REPORT 1- 2 2 . DESCRIPTIO

N O F TH E POTENTIALL

YREGULATE

DPOPULATIO

N 2- 1 2.1 . DESCRIPTIO

NO F COMMERCIA

L EXPLOSIVE S 2- 1 2.2 . REGULATE D POPULATIO N2- 2 2.2.1 . Manufacturer s 2- 2 2.2.2 . Distributor s an d Importer s 2- 2 2.2.3 . User s 2- 4 2.2.4 . Summar

y2-1 2 3 . COS T ANALYSI S 3- 1 3.1 . ASSUMPTION S . 3- 1 3.1.1 . Stat e EmergencyRespons e Commission s 3- 2 3.1.2 . Loca l EmergencyPlanning Committee s 3- 3 3.1.3 . Privat e Facilitie s 3- 3 3.2 . TOTAL COS T ESTIMATE S ..'.'
. 3- 9 4 . BENEFIT S ANALYSI S 4- 1 5 . SENSITIVITY ANALYSI S AND LIMITATION S 5- 1 5.1 . ESTIMATE D NUMBE R O F FACILITIE S SUBJEC T TO REPORTIN G.. . 5- 1 5.1.1 . Explosive s Manufacturing , Distribution , an d Importatio n , 5- 1 5.1.2 . Mining Site s 5- 2 5.1.3 . Constructio n Facilitie s an d Site s 5- 2 5.1.4 . Othe r Industrie s 5- 2 5.2 . ESTIMATE D ACTIVITIE S O F TEMPORAR Y SITE S 5- 3 APPENDI X A . SUMMAR Y O F AT F REGULATION S A- lLIS T O F TABLE S P. 5

TABLE Pag e 2- 1 Number s o f Facilitie s Potentiall yAffecte d I f Explosive s Ar e Liste d A s EHS s 2- 3 2- 2 198 8 Consumptio n o f Explosive s i n the Unite d State s 2- 5 2- 3 Numbe r o f Meta l an d Non-meta l Mine s 2- 7 3- 1 Uni t Cost s fo r Activitie s Conducte d b ySERC s an

d LEPC s unde r Section s 30 2 an

d 30 3 3- 4 3- 2 Uni t Cost s fo r Permanen t Facilitie s Subjec t t o Reporting unde r Section s 30 2 an

d 30 3 3- 6 3- 3 Uni t Cost s fo r Activitie s a t Transien t Facilitie s unde r Section s 30 2 an d 30 3 3- 7 3- 4 Estimate d Numbe r o f Permanen t Site s an d Additiona l Transien t Site s Affecte d b

ythe Listing o f Explosive s a s EHS s 3-1 0 3- 5 Tota l Estimate d Cost s t o Facilitie s unde r Optio n 1 - - Listing al l Commercia l Explosive s Including Firework s a s EHS s 3-1 2 3- 6 Estimate d Cost s t o SERC s an d LEPC s unde r Option s 1 an d 2 ... . 3-1 3 3- 7 Tota l Estimate d Cos t b yOptio n 3-1 5 A- l License s an

d Permit s Issued b

yAT F A- 3

•ll

-P. 6

1 INTRODUCTIO

N
Th e Comprehensiv e Environmenta l Response , Compensation , an d Liabilit y Ac t o f 198 0 (CERCL

Ao r Superfund ) provide s authorit yfo r Federa l respons e actio n a t certai n site s wher e ther e i s a releas e o r threa t o f releas e o f hazardou s substances . Th e Superfun d Amendment s an

d Reauthorizatio n Ac t o f 198 6 (SARA ) revise s an d extend s the authoritie s establishe d unde r CERCLA . Titl e II I o f SAR

Aestablishe s authoritie s fo r emergencyplanning an d preparedness , emergencyreleas e reporting , Communit yRight-to-Kno winventor y reporting , an

d annua l toxi c chemica l releas e reporting . Titl e II I i s intende d t o encourag e an

d suppor t Stat e an

d loca l planning fo r emergencie s cause d b y the releas e o f hazardou s chemical s an d t o provid e citizen s an d government s wit hinformatio n concerning potentia l chemica l hazard s presen t i n thei r communities . Titl e II I i s organize d int o thre e subtitles . Subtitl e A establishe s a framework fo r Stat e an d loca l emergencyplanning . Unde r sectio n 30 1 o f Subtitl e A , State s have establishe d Stat e EmergencyRespons e Commission s (SERCs) , whic hhave , i n turn , appointe d Loca l EmergencyPlanning Committee s (LEPCs) . Sectio n 30 2 require s th e U.S . Environmenta l Protectio n Agenc y(EPA ) t o designat e Extremel yHazardou s Substance s (EHSs ) an d t o establis hthreshol d planning quantitie s (TPQs ) fo r eac hEHS ; t o date , ther e ar e 36 0 designate d EHS s liste d i n 4 0 CFR Par t 355 . Ever yfacilit ywher e an EH S i s presen t a t o r above it s TP Q i s require d t o notif ythe SERC an d t o cooperat e wit hthe LEP C i n th e planning proces s specifie d unde r sectio n 30 3 o f Titl e III . Sectio n 30 4 o f Titl e II I establishe s reporting requirement s fo r release s o f EHS s an

d hazardou s substance s designate d unde r CERCL Asectio n 102(b) . The owner s o r operator s o f facilitie s mus t notif ythe loca l emergencycoordinato r an d an ypotentiall yaffecte d Stat e a s soo n a s the owne r o r operato r ha s knowledg e o f a releas e o f an EH S o r a CERCL Ahazardou s substance , i f th e releas e equal s o r exceed s a reportabl e quantity(RQ) , o r fo r thos e EHS s tha t have no t bee n assigne d an RQ , one pound . Subtitl e B o f Titl e II I provide s a mechanis mfo r publi c awarenes s o f hazardou s chemical s presen t i n th e community . Subtitl e C o f Titl e II I contain s genera l provision s concerning trade secre t protection , enforcement , citize n suits , an

d publi c availabilit yo f information . 1. 1 PURPOS E O

F THI S REPOR

T I n respons e t o publi c concern abou t explosive s i n the community , EP Ai s considering listing commercia l explosive s a s EHS s unde r sectio n 30 2 o f Titl e II I o f SARA . Commercia l explosive s ca n pos e a n extreme hazar d t o emergency respons e personne l during a fire . EP Ai s considering tw o alternative s fo r listing explosives . The firs t woul d lis t onl ythos e explosive s characterize d b yth e Burea u o f Alcohol , Tobacco , an d Firearm s (ATF ) a s highexplosives , lo w explosives , o r blasting agents . Th e secon d woul d als o includ e firework s tha t ar e exemp t unde r AT F regulations . Th e purpos e o f thi s repor t i s t o estimat e the cost s tha t ma yb e incurre d b ySERCs , LEPCs , an

d the owner s or operator s o f facilitie s tha t manufacture ,P. 7

1- 2 process , store , o r us e commercia l explosive s i f thes e material s wer e t o b e listed a s EHS s unde r SAR ATitl e III . I n thi s report , cost s ar e estimate d fo r activitie s require d b ytw o section s o f Titl e III , section s 30 2 an d 303 . Unde r sectio n 302 , facilitie s tha t stor e EHS s i n quantitie s above thei r TPQ s ar e require d t o notif ythe SER C an d LEP C tha t theyar e covere d facilities . SERCs , i n turn ar e require d t o notif yEPA . Unde r sectio n 303 , LEPC s ar e require d t o prepar e emergency respons e plans . The sectio n mandate s minimu mpla n provision s an d establishe s a framework fo r cooperatio n betwee n covere d facilitie s an d the LEPC . SERC s ar e require d t o reviewan d coordinat e emergencyplans . T o ensur e tha t plan s ar e adequate , sectio n 30 3 require s tha t covere d facilitie s designat e a Facilit yEmergencyCoordinato r an d participat e i n the emergencyplanning process . 1. 2 ORGANIZATIO

NO F THI S REPORT The remainde r o f thi s preliminar yanalysi s i s organize d i n thre e chapters : Chapter 2 describe s the estimate d populatio n o f affecte d facilitie s tha t manufacture , distribute , or us e explosives . Chapte r 3 describe s th e activitie s tha t ar e require d unde r sectio n 30 2 an d 30 3 tha t ar e likel yt o resul t i n cost s t o the regulate d community , an d present s an estimat e o f the cost s t o the affecte d population . Chapte r 4 describe s the benefit s derive d fro mlisting explosive s a s EHSs . Chapter 5 discusse s the limitation s o f the estimate s i n thi s report . Appendi xA

summarize s the regulation s develope d b ythe Burea u o f Alcohol , Tobacco , an d Firearm s fo r manufacturers , distributors , importers , an

d user s o f explosives .P. 8

2 DESCRIPTIO

N O F TH E POTENTIALL

YAFFECTE

DPOPULATIO

N Thi s chapte r provide s backgroun d informatio n o n whic hindustrie s woul d b e affecte d i f explosive s ar e listed a s Extremel yHazardou s Substance s (EHSs) , ho wman yfacilitie s woul d b e affected , an d wha t regulation s currentl yappl yt o facilitie s tha t stor e explosives . 2. 1 DESCRIPTIO

N O F COMMERCIA

L EXPLOSIVE S Th e manufacture , sale , an d storag e o f explosive s i s regulate d b ythe Bureau o f Alcohol , Tobacco , an d Firearm s (ATF) . AT F group s explosive s int o thre e categories : highexplosives , lowexplosives , an d blasting agents . High explosive s wil l detonat e eve n whe n unconfine d (e.g. , dynamite) . Lo w explosive s ar e define d a s material s tha t deflagrat e whe n confine d (e.g. , blac k powder , safetyfuses , igniters , ignite r cords , an d fus e lighters) . Blasting agent s ar e define d a s compound s use d fo r blasting tha t canno t b e detonate d using a numbe r 8 blasting ca p whe n unconfine d (e.g. , ammoniu mnitrate-fue l oi l mixtures , o r ANFO) . Al l thre e categorie s o f explosive s ar e considere d t o b e "commercia l explosives. " The categorizatio n o f explosive s i s use d b yAT F t o ensur e tha t adequat e precaution s (i.e. , storag e facilitie s an d isolatio n distances ) ar e use d t o stor e th e explosives . AT F ha s develope d minimu m criteri a fo r storag e facilitie s tha t mus t b e me t befor e a facilityma ystor e explosives . I f storag e facilitie s ar e designe d fo r mor e powerfu l explosive s (e.g. , highexplosives) , the yma yb e use d t o stor e explosive s i n a lowe r categor y(e.g. , blasting agents) . I t i s importan t t o not e tha t ANFO , whic hconstitute s approximatel y5 0 percen t o f the tota l quantit yo f commercia l explosive s use d i n the Unite d States , i s regulate d onl ya s a mixture . Tha t is , neithe r ammoniu mnitrat e no r fue l oi l i s considere d a commercia l explosive . Man yfacilitie s purchas e ammoniu mnitrat e fo r on-sit e mixtur e o f ANFO . Unti l mixed , th e ammoniu

m nitrat e woul d no t b e considere d an EH S unde r section s 30 2 an d 30 3 o f Titl e III . A t present , EP Aha s no t determine d i f firework s woul d b e specificall y exempte d i f explosive s ar e listed a s EHSs . I n general , firework s ar e mad e using lowexplosives , typicall yblac k powder , perchlorat e mixtures , an d potassiu

mchlorat e bas e explosives . Unde r the AT F regulations , firework s ar e treate d differentl ydepending o n whethe r theyar e categorize d b ythe Departmen t o f Transportatio n a s Clas s "B " explosive s o r Clas s "C " explosives . Clas s "B " explosives , als o referre d t o a s "displa yfireworks " o r "specia l fireworks, " ar e subjec t t o al l AT F regulations . Clas s "C " fireworks , als o referre d t o a s "common fireworks, " ar e no t regulate d b yAT F onc e the

yar e in a finished , package d stat e suitabl e fo r retai l sale . 2. 2 REGULATE D POPULATIO N Fo r purpose s o f thi s report , the potentiall yaffecte d populatio n i s divide d int o thre e categories : manufacturers , distributors , an d users . Fo r purpose s o f thi s analysis , manufacturer s ar e define d t o b e chemica l plant s tha t combin e basi c chemical s t o produc e explosive s an d component s o fP. 9

2- 2 explosives . Distributor s ar e define d t o b e facilitie s tha t sel l explosives . User s ar e define d t o b e facilitie s tha t us e explosives ; theymayeithe r purchas e explosive s o r purchas e the component s o f blasting agent s fo r combinatio n an

d us e on-site . Tabl e 2- 1 summarize s the numbe r o f facilitie s potentiall yaffecte d b ythe listing o f explosive s a $ EH S chemicals . 2.2. 1 Manufacturer s Explosive manufactur e (includin g manufactur e o f highexplosives , blasting accessories , blac k powder , an d relate d products ) i s categorize d i n Standard Industria l Classificatio n (SIC ) cod e 2892 . According t o the 198 2 Censu s o f Manufactures , 7 3 companie s manufacture d explosive s i n 1982 , operating a tota l o f 11 4 establishments . The Censu s dat a include bot h privatel yowne d an

d operate d plant s an d government-owned , contractor-operate d plants . Establishment s primaril yengage d i n the manufactur e o f firework s ar e classifie d i n SI C cod e 2899 , Chemica l Preparations , N.E.C . Th e 198 2 Censu s o f Manufacture s reporte d a tota l o f 1,43 9 establishment s i n thi s SI C code . Fo r purpose s o f thi s analysi s i t i s assume d tha t al l 1,43 9 establishment s i n thi s SI C cod e manufactur e firework s an d woul d b e affecte d i f explosive s ar e liste d a s EH S chemicals . Thi s i s considere d a conservative estimat e becaus e firework s manufacturer s ar e onl yone o f man ytype s o f manufacturer s i n thi s classification . 2.2. 2 Distributor s an d Importer s Al l importer s an

d distributor s o f explosives , othe r than finishe d Clas s "C " fireworks , mus t obtai n a licens e fro mATF . I n 198 9 AT F ha s issued 22 8 license s t o companie s importin g explosives . Als o i n 1989 , AT F ha s als o issued 3,35 8 license s t o companie s distributing blac k powde r an d 1,23 6 license s t o companie s distributing othe r explosives , fo r a tota l o f 4,59 4 distributing facilities . Becaus e AT F require s al l distributor s an d importer s t o obtai n a separat e licens e fo r eac hfacilitya t whic hthe companie s conduc t business , thes e number s shoul d include al l distributor s an d importer s potentiall y subjec t t o section s 30 2 an d 303 .

A s discusse d i n Appendi xA , AT F define s "manufacturing " t o includ e th e mixtur e o f non-explosiv e component s on-sit e t o for mexplosive s (e.g. , combinatio n o f ammoniu mnitrat e an

d fue l oi l t o for

mANFO) . Fo r purpose s o f thi s analysis , site s tha t produc e ANF O fo r us e on-sit e ar e classifie d a s "users " o f explosives . U.S . Bureau o f the Census , "198 2 Censu s o f Manufactures , Industr y Statistics, " Tabl e 2 .P.1 0

2- 3

TABLE 2- 1 ESTIMATE

DNUMBERS O

F FACILITIE S AFFECTE D IF EXPLOSIVE S ARE LISTE DAS EHS s

Industr y Numbe r o f Establishment s 11 4 4,59 4 22 8 4,77 8 2,04 2 9,45 0 18,11 8 98 0 N A N A 6 9 0 20 0 9

1 8 Numbe r o f Site s 11 4 4,59 4 22 8 4,77 8 2,04 2 ,450-56,70 0 ,118-108,70 8 98 0 N A N A 2 0 270-1,08 0 20 0 Explosive Manufacturer s Explosive Distributor s Explosive Importer s Mining Metal/Non-meta l Coa l Heav yConstructio n Highway Non-highwa

y Othe r Drilling - Oi l an d Ga s Drilling - Drinking Wate r Forestr y Demolitio n Seismi c Activit y Specia l Effect s Subtota l Firework s Manufactur e Distributio n - Wholesal e Displa yService s Permit s (Displays ) Distributio n - Retai l Subtota l - Firework s TOTAL (withfireworks ) 40,00 2 40,824-179,44 4 1,43 9 3,77 2 89 2 3,23 5 17,23 3 26,57 1 66,57 3 1 0

3 6 7 7 1,43 9 3,77 2 700-46,38 4 3,23 5 17,23 3 379-72,06 3 203-251,50 7

Source : IC F estimates .P.1 1

2- 4 AT F doe s no t requir e distributor s o r importer s o f "commo n fireworks " an d othe r DO T clas s "C " explosive s t o obtai n a license . Retai l sale s o f firework s fal l int o SI C code 599 9 (part) , Othe r Miscellaneou s Retai l Stores , N.E.C . I n 1982 , the Bureau o f the Censu s categorize d 17,23 3 facilitie s i n SI C cod e 5999 , bu t i t i s likel ytha t onl ya smal l fractio n o f thes e facilitie s distribut e fireworks . Wholesal e sale s o f firework s ar e categorize d i n SI C cod e 509 9 (part) , Othe r Durabl e Goods , whic hhad a tota l o f 3,77 2 facilitie s i n 1982 . T o b e conservative , thi s analysi s assume s tha t al l Miscellaneou s Retai l Store s an

d al l Wholesal e Distributor s o f Othe r Durabl e Good s sel l firework s an

d woul d b e affecte d i f firework s wer e include d o n the EH S list . 2.2. 3 User s B yfar the larges t categor yo f potentiall yaffecte d facilitie s include s facilitie s using explosives . Dat a collecte d b ythe Burea u o f Mine s showfour majo r use s o f explosives : coa l mining , meta l mining , quarrying an d nonmeta l mining , an

d construction . "Othe r uses " accoun t fo r approximatel y3 percen t o f the tota l quantit yo f explosive s sol d i n the Unite d States . Tabl e 2- 2 show s the estimate d quantit yo f explosive s consumptio n i n 1988 , b yuse . Explosive s ma yb e use d b

yman yfirms a t multipl e sites . Consequently , i t i s importan t t o estimat e no t onl ythe numbe r o f firms o r permanen t establishment s tha t ma y stor e explosives , bu t als o the numbe r o f temporary , o r transient , location s a t whic hexplosive s ma yb e used , an

d fo r whic hnotificatio n t o the SERC an d LEP C woul d b e necessary . Thi s sectio n i s organize d b ymajo r categor

yo f use : mining , construction , an d othe r uses . Mining Us e o f explosive s i s prevalen t i n the mining industry . According t o a stud yconducte d b

ythe U.S . Bureau o f Mines , coa l mining facilitie s purchase d 6 7 percen t o f the explosive s manufacture d i n 1987 , meta l mine s purchase d 9 percent , an

d quarrying an

d non-meta l mining purchase d 1 3 percent . (Se e Tabl e 2-2. ) Overall , the mining industr yaccounte d fo r 8 9 percen t o f the explosive s purchase d i n the Unite d State s i n 1988 . Excep t a t quarrying an d

Clas s C explosives , a s describe d b ythe U.S . Departmen t o f Transportatio n regulations , ar e foun d a t 4 9 CFR Par t 173.100(p) , (r) , (t) , an d (x) . 4 U.S . Burea u o f the Census , "198 2 Censu s o f Retai l Trade, " Volume 1 , Tabl e 2 . Numbe r o f establishment s include s 1,66 3 facilitie s operating a t th e en d o f the ye ar bu t no t throughou t the year , an d exclude s 1,29 3 facilitie s no t i n busines s a t th

e en d o f th e year . 5 U.S . Burea u o f the Census , "198 2 Censu s o f Wholesal e Trade, " Volume 1 , Tabl e 4 . "Othe r uses " i s a combine d reporting categor yi n the Burea u o f Mine s survey . Dat a ar e no t collecte d o n whic huse s compris e the "othe r uses " category .TABL E 2- 2 198 8 CONSUMPTIO

N O F EXPLOSIVE S I

N TH E UNITE DSTATE S

Explosive s
Permissible s Othe r hig

hexplosive s Wate r gel s an

d slurrie s Ammoniu mnitrate-fue l oi l blasting agent s Unprocesse d ammoniu m nitrat e TOTA L Coa l Mining 27,00 0 20,00 0 240,00 0 515,00 0

2.335.00 0 3,137,00 0 Meta l Mining

10,00 0 100,00 0 60,00 0 270,00 0 440,00 0 Quarryin g Nonmeta l M 25 0 65,00 0 220,00 0 180,00 0

125.00 0 590,25 0 an

d nin g Constructio n

Wor k 20 0 45,00 0 80,00 0 90,00 0

105.00 0 320,20 0 Al l Othe r

Purpose s

10,00 0 20,00 0 20,00 0 .140 . ooq 190,00 0 Tota l

27,67 0 150,76 9 658,27 3 867,39 3

2.973.80 1 4,677,90 6

Source : Branc ho f Industria l Minerals , U.S . Bureau o f Mines , Minera l Industr ySurveys , "Apparen t Consumptio n o f Industria l Explosive s an d Blasting Agent s in th e Unite d States , 1988, " Augus t 22 , 1989 . Note : Dat a mayno t ad d t o total s show

n becaus e o f independen t rounding . Note : Permissible s ar e define d a s grade s o f hig hexplosive s approve d b ybran d name b

ythe Min e Safet yan d HealthAdministratio n o f the U.S . Burea u o f Mine s fo r us e in undergroun d coa l mines , includin g wate r gel s an

d slurries .P.1 3

2- 6 non-meta l mining facilities , th e mos t commonl ypurchase d explosiv e materia l wa s unprocesse d ammoniu mnitrate . Unprocesse d ammoniu mnitrat e accounte d fo r 7 4 percen t o f the explosive s purchase d b ycoa l mining facilities , 6 1 percen t o f the explosive s purchase d b ythe meta l mining facilities , an d 3 3 percen t o f the explosive s purchase d b yquarrying an

d non-meta l mining facilities . Explosive s ar e use d i n the mining industr yfo r the remova l o f roc k an d fo r the constructio n o f mining shaft s an d tunnels . Virtuall yal l meta l an d nonmeta l mine s ar e believe d t o us e explosives ; coa l mine s us e explosive s t o a lesse r extent . Meta l an

d Nonmeta l Mine s Fo r purpose s o f thi s preliminar yanalysis , i t i s assume d tha t al l non meta l an

d meta l mine s woul d b e affecte d i f commercia l explosive s ar e listed a s EHSs . Tabl e 2- 3 show s the estimate d numbe r o f meta l an d non-meta l mine s in th e Unite d States . A s show n i n th e table , mine s ar e classifie d a s bot h producing an

d intermittent/non-producing . Becaus e i t i s unclea r fro mthe dat a whethe r intermittent/non-producing mine s ar e operating intermittentl yo r ar e closed , thi s analysi s assume s tha t al l 4,77 8 mine s mayoperat e a t som e poin t during the year , an d thu s ma

yhave explosive s o n site . Coa l Mine s The Min e Safetyan

d Healt hAdministratio n (MSHA ) report s tha t ther e ar e currentl y1,30 1 producing an d 29 4 non-producing undergroun d coa l mines , 1,37 9 producing an

d 8 8 non-producing surfac e coa l mine s (stri p o r augur mines) , an d 74 1 producing an

d 8 3 non-producing surfac e facilities . Surfac e facilitie s includ e preparatio n plants , dredging operations , an d reclamatio n projects . Non-producing mine s ar e define d a s active mine s tha t ar e currentl yno t producing an

ycoal . Thes e non-producing mine s includ e ne wfacilitie s tha t coul d potentiall yus e explosive s i n the constructio n o f a shaf t i n anticipatio n o f coa l mining , a s wel l a s mine s tha t ar e temporaril yidle , bu t tha t stil l maintai n ventilatio n o r a sum p pump . Base d o n the type s o f mine s an d the metho d o f mining used , MSH A estimate d that , i n Septembe r 1988 , approximatel y57 5 undergroun d coa l mine s wer e using explosives , including 50 0 smal l an d 7 5 larg e mines . I n additio n

Unprocesse d ammoniu mnitrat e i s lowdensit yammoniu mnitrat e produce d primaril yfo r combinatio n wit hfue l oil .

o Conversatio n wit hPete r Tooker , America n Mining Congress , Novembe r 17 , 1989 . 9 Conversatio n wit hFre d Menke , Min e Safetyan d Healt hAdministration , Departmen t o f Labor , Novembe r 22 , 1989 .

1 0 Ibid .P.1 4

2- 7 TABLE 2- 3 NUMBE RO F META L AN DNON-META

L MINE S 198 9

Min e Typ e Undergroun

d Mine s Ope n Pi t Mine s Quarrie s Tota l Mine s 

### P

r oducin g 24 2 53 3 1,78 0 2,55 5 Intermittent /

No n Producing 17 1 51 5 1,53 7 2,22 3 Tota l Mine s

41 3 1,04 8 3.31 7 4,77 8

Source : Metal/Nonmeta l Division , Min e Safet yan d Healt h Administration , U.S . Departmen t o f Transportation , "Employment/Operation s i n Metal/Nonmeta l Industries, " Jul y8 , 198 9 printout .P.1 5

2- 8 1
_ virtuall yal l above-groun d coa l mine s ar e assume d t o us e explosives . Fo r thi s analysis , i t i s estimate d tha t a tota l o f 2,04 2 coa l mine s wil l b e subjec t t o the sectio n 30 2 an d 30 3 notificatio n an d planning requirements . Thi s estimat e consist s o f al l 1,46 7 producing an d non-producing surfac e mine s an d 57 5 undergroun

d mines . Constructio n A s show n i n Tabl e 2-2 , constructio n facilitie s purchase d 32 0 millio n pound s o f explosive s i n 1988 , o r abou t 7 percen t o f the explosive s sold . Th e mos t commo n explosive purchase d b ythes e facilitie s i s unprocesse d ammoniu m nitrate , whic haccounte d fo r 3 3 percen t o f the explosive s purchase d b y constructio n facilitie s i n 1988 . Wate r gel s an d slurrie s accounte d fo r an additiona l 1 8 percen t o f the sale s t o constructio n facilities . Base d o n preliminarydata , i t appear s tha t th e us e o f explosive s i n constructio n i s veryspecialized . Tha t is , relativel yfewconstructio n contractor s us e explosives ; mos t hir e specialize d explosive s contractor s i f the wor k require s explosive demolition . Thus , althoughrelativel yfew contractor s us e explosives , the explosive specialist s probabl ywor k a t numerou s site s throughou t the cours e o f a year . I n man ycases , explosive s ar e onl ytemporaril ystore d o n site ; the explosive s ar e generall yuse d and/o r remove d withi n 2 4 hours . Explosive s ar e use d b yconstructio n facilitie s fo r severa l purposes : utilit yan

d sewe r line construction , eart hda mo r footwate r project s fo r th e Departmen t o f Agriculture , stree t an d highwa

yconstruction , demolition , tunnelling , an

d excavation . The us e o f explosive s i n severa l o f thes e uses , including utilit ywor k an d highwa

yconstruction , appear s t o b e relativel y rare . Fo r example , mos t excavatio n fo r utilit ywor k i s performe d mechanically . The us e o f explosive s i n ne whighwayconstructio n als o appear s t o b e an exceptio n t o standard practice ; man yhighwaycontractor s us e larg e loader s equippe d wit hripper s t o move soil , unles s a verydeep cu t i s

Conversatio n wit hFre d Menke , Min e Safetyan d Healt hAdministration , Departmen t o f Labor , Decembe r 13 , 1989 .

Branc ho f Industria l Minerals , U.S . Burea u o f Mines , Minera l Industr y Surveys , "Apparen t Consumptio n o f Industria l Explosive s an d Blasting Agent s i n th e Unite d States , 1988, " Augus t 22 , 1989 . Conversatio n wit hDonal d Lahr , Washingto n Metropolita n Are a Transi t Authority , Decembe r 12 , 1989 .

Conversatio n wit hLarr ySchneider , Divisio n o f Explosives , Departmen t o f Mine s an

d Mineral s in Lexington , Kentucky , Novembe r 27 , 1989 ; conversatio n wit hWendel l Moody , Departmen t o f Agriculture , Novembe r 27 , 1989 .P.1 6

2- 9 required . Explosives , however , ma yb e use d fo r tunnelling o r constructio n i n mountains . Fo r purpose s o f thi s analysis , i t i s assume d tha t al l constructio n contractor s (i.e. , 9,45 0 highwaycontractor s an d 18,11 8 non-highwa y contractors ) hav e a t leas t one fixe d facilitya t whic hexplosive s ar e stored i n an amoun t greate r than the TPQ . Thi s estimat e wil l overstat e the numbe r o f facilitie s subjec t t o reporting , becaus e mos t contractor s rel yo n a relativel y smal l numbe r o f explosive s specialists . Thi s analysi s als o assume s that , o n average , eac hcontracto r use s explosive s a t betwee n one an d si xsite s pe r year . Th e rang e i s intende d t o accoun t fo r the wid e variatio n i n th e nee d fo r an

d us e o f explosives . Som e contractor s mayhav e n o site s tha t requir e the us e o f explosives . Othe r contractors , operating i n area s wit hmor e rock ysoil , ma

yrequir e explosive s a t al l sites . Othe r Use s Explosive s ar e use d fo r a larg e numbe r o f purpose s unrelate d t o mining an d construction . Althoughthes e use s collectivel yaccoun t fo r onl y3 percen t o f explosive s consumptio n annually , the tota l estimate d numbe r o f site s subjec t t o sectio n 30 2 an d 30 3 reporting an

d planning requirement s ma yb e quit e large . Othe r explosive s us e include drilling an d wel l perforation , fireworks , forestry , seismi c exploration , specia l effects , wel l perforation , an d automotive uses . Drilling I n 1986 , approximatel y26,00 0 oi l an d ga s well s wer e drille d i n th e Unite d States , a s wel l a s 13,00 0 dr yhole s an

d an unknow

n numbe r o f othe r 1 8 wells . O n Octobe r 3 , 1988 , 98 0 oi l an d ga s drilling crew s wer e operating , althoug hmor e than 1,00 0 wer e operating i n Octobe r 1987. 1 9 The nee d fo r explosive s i n drilling well s depend s o n the geolog yo f th e site . On the eas t

1 5 1 6 Conversatio n wit hEri c Staton , Ai r Power , Inc. , Novembe r 27 , 1989 . Conversatio n wit hTi mMore , Nationa l Associatio n o f Genera l .rs , Novembe r 27 , 1989 . U.S . Burea u o f the Census , "CountyBusines s Patterns , 1986 : Unite d Contractors , Novembe r 27 , 198 9 17 States. " 1 8 America n Petroleu mInstitute , "Basi c Petroleu mDat a Book : Petroleu m Industr yStatistics, " Volume VIII , Numbe r 1 , January1988 , sectio n III , Tabl e 2b . 1 9 Oi l an

d Ga s Journal , Octobe r 10 , 1988 , p . 83 .P.1 7

2-1 0 coast , fo r example , explosive s generall yar e no t use d fo r wate r wells. 2 0 I n the mid-west , however , explosive s mayb e use d i n almos t al l drilling operations , t o perforat e the well , cu t the casing , o r fo r tube cutting . Unde r norma l practices , explosive s ar e brough t t o th e sit e o n the da

yo f th e blast , an

d eithe r use d o r remove d withi n 2 4 hours . Normally , onl yon e wel l wil l b e complete d i n a day . Th e averag e charg e pe r wel l i s estimate d t o b e abou t 5 t o 5 0 pounds , wit hthe explosive s pre-package d a s a "bullet." 2 2 Becaus e the explosive s ar e pre-packaged , i t i s likel ytha t onl yenough explosive i s brough t t o a sit e t o satisf ythe need s o f tha t day' s drilling . Fo r purpose s o f thi s analysis , i t i s assume d tha t al l 98 0 oi l an d ga s drilling crew s hav e a fixe d facilitystoring explosive s i n quantitie s greate r than the TPQ . B

yassuming tha t al l drilling crew s hav e a facilit ysubjec t t o the sectio n 30 2 an

d 30 3 notificatio n an d planning requirements , the estimat e wil l overstat e the numbe r o f oi l an d ga s facilitie s affected , bu t wil l compensat e fo r the lac k o f dat a o n othe r drilling contractors . Th e analysi s furthe r assume s tha t n o well s requir e explosive s i n amount s greate r than the TPQ , an d tha t n o wel l site s woul d b e subjec t t o the sectio n 30 2 an d 30 3 notificatio n an

d planning requirements . Firework s Unde r AT F regulations , a permi t i s require d t o purchas e Clas s "B " firework s outsid e the purchaser' s stat e o f residence . A s o f Augus t 1989 , AT F had issued 3,23 5 one-time permits , mos t o f whic hwer e estimate d t o b e fo r the purchas e o f displa yfireworks. 2 4 One-time "User-Limited " permit s allow the purchas e o f explosive s outsid e o f one' s stat e o f residence . Theyar e vali d fo r one-year , bu t ma yb e use d fo r on e purchas e only . Th e 3,23 5 permit s represen t the annua l numbe r o f facilitie s tha t displa yfireworks . Fo r thi s analysis , i t i s assume d tha t al l 89 2 establishment s i n SI C code 799 9 (part) , Displa yService s an

d Concessio n Operator s o f Amusemen t Devices , ar e pyrotechni c firms tha t stor e explosive s a t level s tha t equa l o r excee d the TPQ . Thes e firms ar e assume d t o produce , o n average , betwee n on e showpe r mont han

d one showpe r wee k (i.e. , operat e a t 1 2 t o 5 2 site s pe r year) . Also ,

Conversatio n wit hClin t Yost , Branha mContractor s Inc. , Pasadena , Maryland , Decembe r 12 , 1989 . 2 1 Conversatio n wit hDavi d Wessen , Decembe r 11 , 1989 . 2 2 Conversatio n wit hDavi d Wessen , Vann Systems , Inc. , Decembe r 13 , 1989 . Burea u o f Alcohol , Tobacco , an d Firearms , monthl ysummar yo f explosive s licensee s an d permitee s fo r the mont hending Augus t 31 , 1989 . Conversatio n wit hBureau o f Alcohol , Tobacco , an d Firearms . U.S . Burea u o f the Census , 198 2 Censu s o f Servic e Industries .P.1 8

2-1 1 thi s analysi s assume s tha t the 3,23 5 purchaser s o f one-time permit s ar e firework s user s purchasing firework s i n quantitie s greate r than the TPQ . Automotiv e Sodiu mazide , an explosive o n ATF' s list , i s use d a s a propellan t i n ai r bag s i n the automobil e industry . Althoughthe ai r bag s i n individua l car s woul d b e exemp t fro mreporting unde r th e consume r product s exemptio n o f SAR A Titl e III , manufacturing plant s mayb e subjec t t o section s 30 2 an d 30 3 i f explosive s ar e listed a s EHSs . Becaus e the onl ydomesti c sodiu mazid e plan t recentl yble wup , ai r ba g vendor s ar e currentl yimporting sodiu mazid e fro

m foreign countries. 2 6 Sodiu mazid e i s currentl ydesignate d a s an EHS , however , s o ther e woul d b e n o incrementa l impac t o n the automobil e industr yi f explosive s ar e liste d a s EHSs . Forestr y Explosive s ar e use d i n forestr yt o buil d trails , roads , ponds , an d fir e lines . Th e us e o f explosive s fo r fighting fire s i s expecte d t o b e relativel y small . The primaryuse r i s assume d t o b e the U.S . Fores t Service . Although Federa l facilitie s ar e encourage d an d expecte d t o compl ywit hTitl e II I requirements , the

yar e no t require d to , s o th e cost s o f forestr

yapplication s ar e no t considere d i n thi s report . Demolitio n Th e us e o f explosive s fo r building demolitio n i s rare . Onl ysi xo f th e member s o f the Nationa l Associatio n o f Demolitio n Contractor s us e explosive s fo r the implosio n o f buildings . Explosive s ofte n canno t b e use d fo r a variet y o f reasons : lac k o f affordabl e insurance , restriction s o n the us e o f explosive s unde r cityordinances , lac k o f roo mfo r saf e demolition , relativel y highcos t o f preparing the building , an d difficult yi n removing concret e sla b floor s i f a building ha s collapse d o n itself . I t wa s estimate d tha t ther e ar e probabl yfewe r than 2 0 demolitio n site s pe r yea r involving explosives . Instead , mos t demolitio n wor k i s performe d b ymechanica l means , using cutting torche s o r wrecking balls . Seismi c Exploratio n Explosive s ar e use d i n minera l prospecting , especiall yoi l an d ga s prospecting . I n 1988 , 18 1 seismi c crew s wer e active , including 15 1 land-base d

2 6 Conversatio n wit hDoug Greenhouse , Nationa l Associatio n o f Automobil e Dealers , Novembe r 27 , 1989 .

Conversatio n wit hMr . Baker , Nationa l Associatio n o f Demolitio n Contractors , Novembe r 21 , 1989 .P.1 9

2-1 2
crew s an

d 3 0 marin e crews . No t al l crew s us e explosives ; som e us e a "vibroseis " tha t mechanicall yvibrate s the ground . Abou t hal f o f the crew s ar e believe d t o us e explosives . Fo r seismi c exploration , the crewwil l establis ha temporar ymagazin e holding enoughexplosive s fo r the duratio n o f the projec t (abou t 5,00 0 pounds) . Individua l charge s rang e fro m5 t o 1 0 pounds , i n well s site d a t 30 0 t o 50 0 foo t intervals . Atypica l exploratio n ma ycove r a te n mil e line , wit h abou t tw

o mile s o f seismi c well s worke d i n a day . Th e duration s o f project s rang e fro

mon e t o four months . Fo r purpose s o f thi s analysis , i t i s assume d tha t 9 0 crew s us e explosive s i n seismi c exploration , an d tha t eac hcrewsurvey s betwee n 3 an d 1 2 site s pe r year . Therefore , thi s analysi s assume s tha t betwee n 27 0 an d 1,08 0 seismi c exploratio n site s wil l hav e explosive s store d i n quantitie s tha t excee d the TPQ . Specia l Effect s Explosive s ar e use d i n man ymovie s fo r specia l effects . Fo r purpose s o f thi s analysis , i t i s assume d tha t ther e woul d b e n o mor e than 20 0 individua l movi e location s using explosive s pe r year . 2.2. 4 Summary Explosive s ar e use d a t a larg e numbe r o f site s fo r a larg e numbe r o f purposes . Som

e o f the facilitie s wher e explosive s come t o b e locate d ar e stationar

yan d permanent ; other s ar e onl ytemporary . Fo r example , facilitie s sucha s mine s an

d explosive s manufacturing an d distributing site s ar e likel y t o b e permanent . Othe r facilitie s tha t us e explosive s do s o onl yfo r temporar

ytim e periods . Us e o f explosive s fo r tunnelling , constructio n excavation , o r drilling i s likel yt o b e o n a short-ter mbasis . The explosive s ma yb e on-sit e fo r tim e period s ranging fro ma half-da

yt o a year . The companie s engage d i n transien t operation s ofte n operat e a t man ysite s ove r th

e cours e o f a year . I f th e amoun t o f explosive s require d o r store d a t eac hsit e equal s o r exceed s the TPQ , the n the SER C an d the LEP C woul d nee d t o b e notifie d tha t a n EH S i s presen t a t th e site .

2 8 Societ yo f Exploratio n Geophysicists , a s reporte d i n the Oi l & Ga s Journal . Octobe r 31 , 1988 , p . 91 .

Conversatio n wit hDonal d Robertson , seismologist , Decembe r 11 , 1989 . U.S . Geophysica l News , Octobe r 15 , 1989 . Abou t 11 3 activ e crew s wer e operating , o f whic h5 6 wer e dynamit e crews . Cite d b yDavi d Wessen , Decembe r 13 , 1989 .

Societ yo f Explosive Engineers , "198 9 Membershi p Directoryan d Des k Reference. "3 COS T ANALYSI S Thi s chapte r discusse s the methodolog yan d assumption s underlying the estimate d cost s tha t woul d b e imposed o n facilities , loca l governments , an d State s i f explosive s wer e t o b e liste d a s EHSs . Al l cost s ar e estimate d i n secon d quarte r 198 9 dollars . Fo r purpose s o f thi s report , site s ar e characterize d a s being eithe r permanen t facilitie s o r transien t facilities . Permanen t facilitie s (e.g. , manufacturing plants , explosive s distributors , an d mines ) ar e assume d t o participat e i n the emergencyplanning proces s i f explosive s ar e liste d a s EHSs . Transien t facilitie s (e.g. , drilling site s an d constructio n sites ) ar e mobile . Althoughthe yar e require d t o repor t t o SERC s an d LEPCs , the

yar e assume d t o stor e explosive s a t a particula r sit e onl ytemporaril yan d woul d be unlikel yt o participat e i n th e emergencyplanning process . Complianc e cost s ar e estimate d b yidentifying the activitie s tha t an individua l facility , Loca l EmergencyPlanning Committe e (LEPC) , o r Stat e EmergencyRespons e Commissio n (SERC ) mus t perfor mt o compl ywit hsection s 30 2 an d 30 3 o f Titl e III . Fo r eac hactivity , estimate s ar e mad e o f th e personne l requirement s an

d labo r cost s t o complet e the activity . Th e tota l cost s pe r affecte d entit y(i.e. , governmen t o r facility ) ar e calculate d b ysumming th

e estimate d cost s t o compl ywit hal l relevan t activitie s fo r eac hentity . Tota l cost s ar e estimate d b ymultiplying the cost s pe r entityb ythe numbe r o f entitie s likel yt o incur the costs . A s discusse d i n Appendi xA , mos t facilitie s using explosive s ar e subjec t t o AT F storag e requirements , whic hrequir e tha t al l explosive s ar e store d i n specific , designate d magazines . I n addition , al l manufacturers , importers , an d distributor s (excep t manufacturer s tha t immediatel yus e the explosive s on site ) mus t maintai n detaile d record s regarding the sourc e an d dispositio n o f explosives , an

d mus t perfor

man annua l inventory . Consequently , owner s an d operator s o f facilitie s regulate d b yAT F woul d incur littl e additiona l cos t t o determin e whethe r explosive s ar e a t thei r facilitie s i n quantitie s tha t equa l o r excee d the TPQ . 3. 1 ASSUMPTION S Unde r sectio n 304 , facilitie s ar e require d t o repor t t o appropriat e emergencyrespons e personne l release s o f EHS s an d CERCL Ahazardou s substance s i n quantitie s equa l t o o r greate r than a reportabl e quantit y(RQ). 1 Sectio n 30 4 specificall yexempt s the reporting o f release s tha t resul t i n exposur e solel yt o person s withi n the facilityboundaries . Becaus e explosive s generall ytak e the for mo f solid s o r semi-solids , the yar e unlikel yt o b e sufficientl yvolatil e tha t release s woul d resul t i n off-sit e exposure . O f course , an explosio n coul d affec t person s off-sit e an d woul d nee d t o b e

I f a substanc e doe s no t hav e a reportabl e quantit yspecifie d b y regulation , the reportabl e quantityi s se t b ydefaul t t o on e pound . 2 4 0 CFR 355.40(a)(2)(i) , 5 2 F R 13396 .P.2 1

3- 2 reporte d t o the Nationa l Respons e Cente r unde r CERCL Asectio n 103(a ) an d t o th e SERC an

d LEP C o f an

yare a likel yt o b e affecte d b ythe releas e unde r sectio n 30 4 o f Titl e III . However , becaus e accidenta l explosion s ar e likel y alread yt o b e reporte d t o the appropriat e authorities , thi s analysi s assume s tha t ther e woul d b e n o incrementa l cost s associate d wit hcomplianc e wit h episodi c releas e reporting . T o develop the cos t estimates , assumption s ar e mad e abou t the personne l tha t woul d b e performing require d activities , the lengt ho f tim e neede d t o complet e the activities , the wag e rate s o f the personnel , an d the numbe r o f affecte d facilities . Th e assume d direc t labo r need s ar e disaggregate d int o management , technical , an d clerica l categories . Industr yaverag e wag e rate s ar e identica l t o thos e use d i n the Apri l 198 7 RIA , bu t hav e bee n update d t o second-quarte r 198 9 dollar s using U.S . Departmen t o f Labo r wag e an d salar y indice s fo r clerical , professiona l specialt yan d technica l occupations , an d manageria l an

d administrative occupationa l categories . Th e section s belo w describ e the natur e o f activitie s expecte d t o resul t i n cost s t o the affecte d population . 3.1. 1 Stat e Emergenc yRespons e Commission s SERC s ar e responsibl e fo r receiving an d storing informatio n o n covere d facilities , notifying EP Ao f covere d facilities , an d reviewing LEP C plans . The listing o f commercia l explosive s a s EH S chemical s woul d increas e the numbe r o f facilitie s require d t o notif ySERC s tha t the yar e subjec t t o th e provision s o f sectio n 30 2 o f Titl e III . Unde r sectio n 302(d ) o f Titl e III , SERC s ar e the n require d t o notif yEP Ao f eac hnotificatio n received . Fo r purpose s o f thi s analysis , i t i s assume d tha t SERC s alread yhav e mechanism s i n plac e t o record an

d transmi t informatio n t o EPA . Consequently , the incrementa l cos t t o SERC s associate d wit hthe additiona l report s i s expecte d t o b e lowrelative t o the cost s t o facilitie s o f reporting the information . Fo r thi s analysis , i t i s assume d tha t SERC s woul d requir e 1 5 minute s o f clerica l tim

e t o receive eac hnotification , record the name o f the facilit y fo r transmitta l t o EPA , an d fil e th

e notification . No othe r incrementa l cost s ar e assume d t o b e incurre d b ySERCs . I n particular , i t i s assume d tha t SERC s woul d no t reviewLEP C plan s solel ybecaus e o f the listing o f explosives , and , therefore , tha t ther e woul d b e n o incrementa l reviewcos t associate d wit hthe listing o f explosives .

U.S . Environmenta l Protectio n Agency , "Regulator yImpac t Analysi s i n Suppor t o f Rulemaking Unde r Section s 302 , 303 , an d 30 4 o f Titl e II I o f the Superfun

d Amendment s an

d Reauthorizatio n Ac t o f 1986, " Offic e o f Toxi c Substances , Apri l 10 , 1987 .

U.S . Departmen t o f Labor , Bureau o f Labo r Statistics , compute r printou t date d Jul y25 , 1989 . The indice s (June 198 9 t o Septembe r 1986 ) ar e administrative - - 146.4:131.7 , professiona l - - 152.1:135.4 , an d executiv e - - 147.3:132.4 .P.2 2

3- 3 3.1. 2 Loca l Emergenc y Plannin

g Committee s The listing o f commercia l explosive s woul d increas e the numbe r o f facilitie s reporting the presenc e o f EHS s t o LEPC s pursuan t t o section s 30 2 an d 303 . Th e increas e i n the numbe r o f report s woul d lead t o additiona l effort s o n the par t o f LEPC s t o lo g i n the notification s an d t o incorporat e site s wit hpermanen t an d temporar

ystorag e o f explosive s int o thei r emergency plans . I n thi s report , the leve l o f effor t require d o f a LEP C i s assume d t o depen d o n the typ e o f facilityreporting . Fo r permanen t facilitie s (i.e. , thos e facilitie s assume d t o permanentl ystor e explosives) , i t i s assume d tha t tw o hour s o f technica l tim e woul d b e neede d t o reviewthe notification , cal l th e facilit yt o verif yth e information , an

d discus s the notificatio n wit h emergencyrespons e personne l (e.g. , th e fir e department) . An additiona l 1 5 minute s o f clerica l tim e woul d b e use d t o receive an d fil e the notification . Fo r site s tha t stor e o r us e explosive s onl yfo r shor t tim e interval s (i.e. , transien t facilities) , i t i s assume d tha t the exten t o f reviewb yLEP C technica l personne l woul d b e muc hshorte r (i.e. , 1 5 minutes) , an d tha t 1 5 additiona l minute s o f clerica l tim e woul d b e require d t o receiv e an d fil e th

e notification . Thi s shorte r reviewtim e reflect s th

e assumptio n that , du e t o the temporar

ynatur e o f the reporting site , the LEP C woul d essentiall ypas s the informatio n along t o the fir e department , withou t extensive planning o r sit e evaluation . Thi s analysi s furthe r assume s tha t LEPC s woul d no t review an d revis e emergencyplan s solel ybecaus e o f the receip t o f notification s o f explosive s facilities . Instead , an ynecessarypla n revision s ar e assume d t o b e incorporate d int o th e annua l pla n reviewprocess , a t n o incrementa l costs . Tabl e 3- 1 summarize s the uni t cos t estimate s use d i n thi s analysi s t o estimat e the impact s o n SERC s an d LEPC s o f listing commercia l explosive s a s EH S chemicals . 3.1. 3 Facilitie s Facilitie s storing commercia l explosive s woul d incur cost s t o compl y wit hsection s 30 2 an d 30 3 i f commercia l explosive s ar e liste d a s EHS s unde r sectio n 302 . The cost s incurre d b ya particula r facilitydepen d o n whethe r the facilit yi s permanen t o r transient . Permanen t facilitie s ar e assume d t o incur highe r cost s becaus e theywoul d b e mor e likel yt o participat e activel y i n th e emergencyplanning process . Transien t facilities , suc ha s drilling an d constructio n sites , ar e assume d t o incur lowe r costs , becaus e explosive s ar e unlikel yt o b e i n plac e lon g enoug ht o warran t participatio n i n the emergency planning process . Cos t estimate s ar e develope d b yfirs t identifying the activitie s likel y t o b e performe d b

yfacilitie s t o mee t the regulator yrequirements . Four activitie s ar e likel yt o b e necessar yfo r compliance :

• Familiarizatio n wit hthe regulator yrequirements ;

• Inventor

ycompariso n wit hthe TPQ ;

• Emergencyplanning notificatio n unde r sectio n 302 ; an dTABL E 3- 1 UNI T COST S FO

R ACTIVITIE S CONDUCTE D B Y SERC s AN D LEPC s UNDE R SECTIONS 30 2 AN D30 3

Lin e No . Complianc e Activitie s Personne l Hour s Clerica l Technica l Manage r Uni t Cost s a / (secon d quarte r 198 9 dollars ) Clerica l Technica l Manage r Othe r Tota l

SERCs , Al l Notification s 1 Fil e Notificatio n LEPCs , Permanen t Facilitie s 2 ReviewNotificatio n 3 Fil e Notificatio n 4 Subtota l LEPCs , Transien t Facilitie s 5 Revie wNotificatio n 6 Fil e Notificatio n 7 Subtota l 0.2 5 XX X XX

X $3.8 6 $0.0 0 $0.0 0 $0.0 0 $3.8 6

XX X 0.2 5 0.2 5 2.0 0

XX X 2.0 0 XX

X XX X 0.0 0 $0.0 0

$3.8 6 $3.8 6 $49.6 8

$0.0 0 $49.6 8 $0.0 0

$0.0 0 $0.0 0 $0.0 0

$0.0 0 $0.0 0 $49.6 8

$3.8 6 $53.5 4

XX X 0.2 5 0.2 5 0.2 5

XX X 0.2 5 XX

X XX X 0.0 0 $0.0 0

$3.8 6 $3.8 6 $6.2 1

$0.0 0 $6.2 1 $0.0 0

$0.0 0 $0.0 0 $0.0 0

$0.0 0 $0.0 0 $6.2 1

$3.8 6 $10.0 7
Note : Assume s al l facilitie s incu r cost s fo r "small " facilities . Source : Apri l 198 7 RIA , Table s B- 3 an d B-4 , U.S . Bureau o f Labo r Statistic s ... , pp . 1 9 an d 20 . a / Cost s update d fro mthir d quarte r 198 6 dollar s t o secon d quarte r 198 9 dollar s usin g Bureau o f Labo r Statistic s Indices : clerica l - - 1.119 , Technica l - - 1.123 , an d Manage r - - 1.113 . Wag e rate s used (secon d quarte r 1989) : clerica l - - $15.45 , technica l - - $24.84 , manageria l - - $38.03 .P.2 4

3- 5

• Coordinatio n wit hthe LEP C unde r sectio n 303 . I t i s assume d i n thi s analysi s tha t al l facilitie s tha t us e explosive s woul d b e subjec t t o the reporting an d planning requirement s o f section s 30 2 an d 30 3 o f Titl e II I fo r the firs t time . Ther e may , however , b e som e facilitie s alread

ysubjec t t o section s 30 2 an d 30 3 becaus e o f thei r us e o f EHS s othe r than explosives . Fo r example , EP Aestimate s tha t abou t 166,00 0 facilitie s i n agriculture , mining , an d constructio n (SI C code s 07 , 08 , 09 , 10 , 11 , 12 , 13 , 14 , 15 , 16 , an d 17) , stor e a t leas t on e EH S i n quantitie s tha t equa l o r excee d the TPQ . Man yo f thes e facilitie s mayals o stor e explosives . I n all , abou t 2 0 percen t o f al l facilitie s wit hmor e than 1 0 employee s i n al l affecte d industrie s ar e estimate d t o b e covere d b ysectio n 30 2 an

d 30 3 notificatio n an

d planning requirements . B yassuming tha t thes e facilitie s wit hexplosive s ar e newl yregulate d facilities , thi s analysi s wil l ten d t o overestimat e the costs , becaus e facilitie s alread ycomplying wit hthe Titl e II I requirement s would , i n reality , incur onl ythe cos t o f reporting a singl e additiona l chemica l t o the SERC s an d LEPCs . Tha t is , facilitie s currentl y reporting unde r section s 30 2 an d 30 3 woul d actuall yincur minima l additiona l cos t fo r rul e familiarizatio n an d emergencyplanning notification , an d n o additiona l cos t f.o

r developmen t o f a tracking syste mo r coordinatio n wit hth e LEPC . Th e remainde r o f thi s sectio n describe s the activitie s assume d t o b e require d o f facilitie s t o compl ywit hsection s 30 2 an d 30 3 o f Titl e III . Table s 3- 2 an

d 3- 3 summariz e thes e activitie s an d the estimate d time s an d uni t cost s use d i n thi s analysis . Familiarizatio n Wit hThe Regulator yRequirement s Eac hpermanen t facilityno t currentl ysubjec t t o the requirement s o f section s 30 2 an

d 30 3 o f Titl e II I i s assume d t o incur a one-time cos t o f $62.8 7 (i.e. , one hou r o f technica l tim e an d one hou r o f manageria l time ) t o become familia r wit hthe regulator yrequirements . Fo r purpose s o f thi s analysis , i t i s assume d tha t onl ythos e facilitie s potentiall ysubjec t t o the reporting requirement s woul d reviewth e regulations . Becaus e explosive s ar e anticipate d a s being liste d a s a clas s o f chemicals , wit hthe tota l quantit y o f explosive s being liste d a s a singl e compound , thi s analysi s furthe r assume s tha t facilitie s woul d no t requir e in-hous e o r outsid e lega l o r environmenta l expertis e t o become familia r wit hthe regulator yrequirements . Transien t facilitie s (i.e , facilitie s tha t us e explosive s periodicall y an d ten d t o hir e explosive s contractor s t o satisf ythei r temporar yneeds ) ar e assume d no t t o incur cost s fo r rul e familiarization . Rather , drilling ri g crew s o r explosive s contracto r crew s ar e assume d t o incur a one-time cos t t o become familia r wit hth e requirements . A s the crew s mov e t o differen t sites ,

5 Apri l 198 7 RIA , Tabl e A-ll . 6 Ibid . Tabl e A-8B .TABL E 3- 3 UNI T COST S FO

RACTIVITIE S A

T TRANSIEN

T FACILITIE S UNDE

RSECTIONS 30 2 AN

D30 3

Lin e No . 1 2 3 4 5 6

7 8 9 1 0 11 1 2

1 3 1 4 Complianc e Activitie s Rul e Familiarizatio n Inventor

yCompariso n Notif ySERC Compos e lette r Typ e lette r Mai l (Postage ) Subtota l b / Designat e FE C & Relate d Activities : Meeting s Trave l Documen t preparatio n -compos e -proces s Mai l (Postage ) ReviewLEP C plannin g activitie s wit hfacilit y managemen t Subtota l c / Tota l d / Clerica l XX X XX X

XX X 0. 5 XX X 0. 5

XX X XX X XX X XX X XX X

XX X 0. 0 0. 5 Personne l

Technic a XX X XX X

XX X XX X XX X XX X

XX X XX X XX X XX X XX X

XX X 0. 0 0. 0 Hour s I Manage r XX X XX X 1. 0 XX X XX X 1. 0

XX X XX X XX X XX X XX X

XX X 0. 0 1. 0 Uni t Cost s a /

(secon d quarte r 198 9 dollars ) Clerica l $0.0 0 $0.0 0 $0.0 0 $7.7 3 $0.0 0 $7.7 3

XX X XX X XX X XX X XX X

XX X $0.0 0 $7.7 3 Technica l

$0.0 0 $0.0 0

XX X XX X XX X XX X

XX X XX X XX X XX X XX X $0.0 0 $0.0 0 $0.0 0 Manage r

$0.0 0 $0.0 0 $38.0 3 $0.0 0 $0.0 0 $38.0 3

XX X XX X XX X XX X XX X $0.0 0 $0.0 0 $38.0 3 Othe r

$0.0 0 $0.0 0 $0.0 0 $0.0 0 $4.0 0 $4.0 0

XX X XX X XX X XX X XX X

XX X $0.0 0 $4.0 0 Tota l

$0.0 0 $0.0 0 $38.0 3 $7.7 3 $4.0 0 $49.7 6

$0.0 0 $0.0 0 $0.0 0 $0.0 0 $0.0 0 $0.0 0 $0.0 0 $49.7 6
Note : Assume s al l facilitie s incur cost s fo r "small " facilities . Source : Apri l 198 7 RIA , Table s B- 3 an d B-4 , U.S . Bureau o f Labo r Statistic s ... , pp . 1 9 an d 20 . a / Cost s update d fro m third quarte r 198 6 dollar s t o secon d quarte r 198 9 dollar s using Bureau o f Labo r Statistic s Indices : clerica l - - 1.119 , Technica l - - 1.123 , an d Manage r - - 1.113 . Wag e rate s used (secon d quarte r 1989) : clerica l - - $15.45 , technica l - - $24.84 , manageria l - - $38.03 . b / Su mo f line s 3 , 4 , an d 5 . c / Su mo f line s 7 , 8 , 9 , 10 , 11 , an d 12 . d / Su mo f line s 1 , 2 , 6 , an d 13 .TABL E 3- 2 UNI T COST S FO

R PERMANEN

T FACILITIE S SUBJEC T T O REPORTIN GUNDE R SECTIONS 30 2 AN D30 3

Lin e No . Complianc e Activitie s Personne l Hour s Uni t Cost s a / (secon d quarte r 198 9 dollars ) Clerica l Technica l Manage r Clerica l Technica l Manage r Othe r Tota l 1 Rul e Familiarizatio n XX X 1. 0 1. 0 $0.0 0 2 Inventor

yCompariso n XX X 0. 5 XX X $0.0 0 Notif ySERC 3 Compos e lette r XX X XX

X 1. 0 $0.0 0 4 Typ e lette r 0. 5 XX X XX

X $7.7 3 5 Mai l (Postage ) XX X XX

X XX

X $0.0 0 6 Subtota l b / 0. 5 XX X 1. 0 $7.7 3 Designat e FE C & Relate d Activities : 7 Meeting s XX X 4. 0 0. 8 XX X 8 Trave l XX X XX

X XX

X XX

X Documen t preparatio n 9 -compos e XX X 4. 0 1. 0 $0.0 0 1 0 -proces s 0. 4 XX X XX

X $6.1 8 1 1 Mai l (Postage ) XX X XX

X XX

X XX

X 1 2 ReviewLEP C planning

activitie s wit hfacilit y managemen t XX X 2. 0 0. 4 XX X 1 3 Subtota l c / 0. 4 10. 0 2. 2 $6.1 8 1 4 Tota l d / 0. 9 11. 5 4. 2 $13.9 1 $24.8 4 $38.0 3 $0.0 0 $62.8 7 $12.4 2 $0.0 0 $0.0 0 $12.4 2

XX X $38.0 3 $0.0 0 $38.0 3 XX X $0.0 0 $0.0 0 $7.7 3 XX X $0.0 0 $4.0 0 $4.0 0 XX X $38.0 3 $4.0 0 $49.7 6

$99.3 6 $30.4 2 XX X $129.7 8 XX X XX

X $25.0 0 $25.0 0 $99.3 6 $38.0 3 XX X $137.3 9 XX X XX

X XX

X $6.1 8 XX X XX

X $4.0 0 $4.0 0 $49.6 8 $15.2 1 XX X $64.8 9 $248.4 0 $83.6 6 $29.0 0 $367.2 4 $285.6 6 $159.7 2 $33.0 0 $492.2 9

Note : Assume s al l facilitie s incu r cost s fo r "small " facilities . Source : Apri l 198 7 RIA , Table s B- 3 an d B-4 , U.S . Bureau o f Labo r Statistic s ... . pp . 1 9 an d 20 . a / Cost s update d fro m third quarte r 198 6 dollar s t o secon d quarte r 198 9 dollar s using Bureau o f Labo r Statistic s Indices : clerica l - - 1.119 , technica l - - 1.123 , an d manage r - - 1.113 . Wag e rate s use d (secon d quarte r 1989) : clerica l - - $15.45 , technica l - - $24.84 , manageria l - - $38.03 . b / Su mo f line s 3 , 4 , an d 5 . c / Su mo f line s 7 , 8 , 9 , 10 , 11 , an d 12 . d / Su mo f line s 1 , 2 , 6 , an d 13 .P.2 7

3- 8 the ywoul d no t nee d t o refamiliariz e themselve s wit hthe requirements . Instead , theyar e assume d t o b e knowledgeabl e an d t o repor t a s appropriate . Inventor

yCompariso n wit hthe TP Q Th e analysi s assume s tha t al l fixed facilitie s wit hexplosive s woul d estimat e whethe r explosive s ar e presen t o n th e premise s i n quantitie s greate r than o r equa l t o th e TP Q t o determin e whethe r the yar e require d t o compl ywit h sectio n 30 2 provisions . Becaus e (1 ) th e existing AT F regulation s o f explosive s requir e facilitie s t o maintai n extensive record s o n the amoun t o f explosive s o n hand , an d (2 ) the listing woul d conside r explosive s a s a singl e categor yo f extremel yhazardou s substance , thi s analysi s assume s tha t facilitie s woul d incur minima l technica l an d managemen t labo r requirement s fo r inventor

ycomparison . I n particular , one-hal f hou r i s assume d t o b e neede d t o verif ytha t the quantit yo f explosive s a t the facility , indeed , equal s o r exceed s the TPQ . Transien t facilities , becaus e theyus e mobil e magazines , ar e assume d no t t o incur cost s t o determin e whethe r the quantit yo f explosive s warrant s reporting unde r sectio n 302 . Theyar e assume d t o kno walread yi f the amoun t o f explosive s i n eac hmagazin e equal s o r exceed s the TPQ . EmergencyPlanning Notificatio n Unde r Sectio n 30 2 Al l facilitie s wit ha t leas t one EH S presen t i n quantitie s equa l t o or above th

e TP Q ar e require d t o notif ythei r SER C an d LEP C tha t the

yar e subjec t t o the requirement s fo r emergencyplanning . Th e analysi s assume s tha t al l fixe d an

d transien t facilitie s wit hexplosive s ar e covere d facilitie s fo r emergencyplanning purpose s unde r section s 30 2 an d 303 . On e hou r o f managemen t tim

e an d one-hal f hou r o f clerica l tim e i s assume d t o b e neede d t o draf t an

d sen d the notificatio n lette r t o the SERC an d LEPC . Tracking SystemDevelopmen t Unde r Sectio n 30 2 Unde r the AT F regulations , manufacturers , importers , an d distributor s ar e alread

yrequire d t o trac k the type s an d quantitie s o f explosive s store d a t thei r facilities . Consequently , i t i s assume d the ywoul d incur n o additiona l cos t unde r thi s regulatio n fo r thes e activities . Becaus e the safety precaution s an

d storag e requirement s fo r explosive s requir e specia l storag e facilities , an

d becaus e user s o f explosive s woul d repor t explosive s a s a singl e substance , thi s analysi s assume s tha t facilitie s woul d incur n o incrementa l cost s t o establis ha tracking system . Coordinatio n Wit hthe LEP C Unde r Sectio n 30 3 Unde r sectio n 303 , th e LEP C i s responsibl e fo r developing a coordinate d emergencyrespons e pla n t o allowrespons e personne l t o dea l wit hemergencie s i n an effective manner . Emergencyrespons e plan s typicall ydelineat e route s fo r respons e personne l t o us e i n an emergency , establis hevacuatio n routes , an d defin e the role s an d interaction s o f the differen t respons e agencie s (e.g. , Stat e police , loca l police , fir e departments , an d hospitals) . Each facilityreporting unde r sectio n 30 2 mus t designat e a facilityemergencyP.2 8

3- 9 coordinato r (FEC ) t o interac t wit hthe LEPC . Th e FE C mus t participat e i n the planning proces s an d respon

d t o the LEP C o n request . Th e activitie s performe d b ythe FE C generall yinclud e meetings , travel , documen t preparatio n (composition , process , an d review) , documen t transmitta l (postage) , an d review o f LEP C planning activitie s wit hmanagement . Fo r purpose s o f thi s analysis , i t i s assume d tha t al l fixe d facilitie s wil l participat e i n the emergencyplanning process . Thes e planning participatio n activitie s ar e assume d t o requir e 0. 4 hour s o f clerica l time , 1 0 hour s o f technica l time , an d 2. 2 hour s o f managemen t time , fo r a tota l planning participatio n cos t o f $367 . Facilitie s tha t ar e assume d t o permanentl ystor e explosives , therefore , wil l incur an estimate d tota l cos t o f abou t $500 . Transien t facilitie s ar e assume d t o b e a t a sit e fo r a n insufficien t duratio n t o warran t designatio n o f the FE C o r participatio n i n the LEP C planning process . Thes e facilitie s ar e assume d t o incur onl ythe notificatio n costs , estimate d t o b e abou t $50 . 3. 2 TOTAL COS T ESTIMATE S T o estimat e the tota l cost s t o facilitie s o f complying wit hsection s 30 2 an d 30 3 o f Titl e II I i f explosive s ar e liste d a s EHSs , facilitie s wer e categorize d a s permanen t establishments , additiona l sites , an d firework s distributio n an

d displa

yfacilities . Tabl e 3- 4 show s the estimate d numbe r o f facilitie s fo r eac hindustr yestimate d t o us e explosives . The estimate d numbe r o f permanen t establishment s i s take n fro m Tabl e 2-1 , an

d represent s th

e estimate d numbe r o f operating facilitie s expecte d t o us e o r stor e explosive s ove r lon g period s o f time . Fo r example , EP Aestimate s tha t ther e ar e approximatel y9 0 seismi c crew s tha t us e explosives ; eac hi s assume d t o operat e fro ma unique , permanen t establishmen t an d coul d incur complianc e cost s o f $50 0 pe r facility . EP Aestimate s tha t abou t 67,00 0 permanen t facilitie s wil l b e subjec t t o sectio n 30 2 an d 30 3 notificatio n an

d planning requirement s unde r Optio n 1 . I f firework s ar e exclude d unde r Optio n 2 , the numbe r o f permanen t facilitie s woul d b e abou t 41,000 . Tabl e 3- 4 als o show s the estimate d numbe r o f additional , transien t site s fo r eac hindustry . Thes e number s ar e take n fro mTabl e 2- 1 b

ysubtracting th

e permanen t facilitie s fro mth e tota l numbe r o f sites . I n Tabl e 2-1 , fo r example , i t wa s estimate d tha t seismi c exploratio n crew s woul d operat e a t betwee n thre e an

d twelve site s pe r year , resulting i n betwee n 27 0 an d 1,08 0 site s pe r yea r tha t coul d b e affecte d b ythe listing o f explosive s a s EHSs . Assuming tha t the crew s onl ynee d t o become familia r wit hthe notificatio n requirement s onc e an d wil l participat e i n the planning proces s onl yi n the locatio n o f thei r permanen t plac e o f business , the estimate d numbe r o fP.2 9

3-1 0 TABLE 3- 4 ESTIMATE

DNUMBE RO F PERMANEN

T SITE S AN

DADDITIONA

L TRANSIEN

T SITE S AFFECTE DB YTH E LISTIN

GO F EXPLOSIVE S AS EHS s

Industr y Number o f Permanent Establishment s Number o f Additiona l Site s Where Explosive s ar

e Locate

d Lo w Hig

h

Explosive s Manufacturer s Explosive s Distributor s Explosive s Importer s Mining Metal/Non-meta l Coa l Heav yConstructio n Highway Non-highwa

y Othe r Drilling - oi l & ga s Drilling - drinking wate r Forestr y Demolitio n Specia l Effect s Seismi c Activit y 4

4 2 9 1 8 11 4 59 4 22 8

77 8 ,04 2 ,45 0 ,11 8 98 0 N A N A 6 20 0 9 0 0

0 0
0 0 0 0 0 0 0 0 0 L8 0 47,25 0

90,59 0 0 0 0 1 4 0 99 0 Subtota l 40,60 0 18 0 138,84 4 Firework s Manufactur e Distributio n - wholesal e Permit s (Displays ) Subtota l DisplayService s Distributio n - retai l Subtota l - firework s TOTAL - - Optio n 1 TOTAL - - Optio n 2 1,43 9 3,77 2 3,23 5 8,44 6 89 2 17,23 3 26,57 1 67,17 1 40,60 0 0 0 0 0 9,81 2 0 9,81 2 9,99 2 18 0 0

0 0 0 45,49 2 0 45,49 2 184,33 6 138,84 4 Source : IC F estimates .P.3 0

3-1 1 "transient " site s fo r thi s industr yi s estimate d t o b e betwee n 18 0 an d 99 0 site s pe r year . (Tha t is , a t th e lowend , 27 0 site s minu s 9 0 permanen t locations ; a t the highend , 1,08 0 site s minu s 9 0 permanen t locations. ) Unde r Optio n 1 , the numbe r o f transien t site s i s estimate d t o rang e fro mabou t 10,00 0 t o abou t 184,00 0 site s pe r year . Unde r Optio n 2 , the numbe r o f transien t site s i s estimate d t o rang e fro mabou t 18 0 t o abou t 139,00 0 site s pe r year . Mos t o f the transien t site s unde r the highestimat e ar e i n the heav yconstructio n industr yan d the firework s displa yservice s industry . A s discusse d above , permanen t establishment s ar e estimate d t o incur tota l cost s o f approximatel y$50 0 pe r facilityan d transien t site s ar e estimate d t o incur tota l cost s o f approximatel y$5 0 pe r facility . Retai l distributio n o f firework s an d firework s displa

yservice s ar e estimate d t o incur intermediat e cost s o f abou t $125 , including cost s fo r rul e familiarization , inventor ycomparison , an

d notificatio n o f the SERC an d LEPC . Theyar e treate d slightl ydifferentl ybecaus e the yar e likel yt o b e permanen t facilitie s bu t ar e assume d no t t o activel yparticipat e i n the planning process . Nevertheless , i t i s assume d tha t the ywil l nee d t o familiariz e themselve s wit hthe regulator yrequirement s an

d perfor

man inventor

yanalysis . Tabl e 3- 5 show s th

e lowan

d highestimate s fo r the cost s t o facilitie s i f explosive s ar e listed a s EHSs . T o obtai n th e estimates , eachnumbe r o f facilitie s show

n i n Tabl e 3- 4 wa s multiplie d b ythe estimate d cos t fo r th e specifi c typ e o f facility . Al l permanen t facilitie s (excep t firework s displa y an d retai l establishments ) wer e assume d t o incur a uni t cos t o f $500 ; transien t facilitie s wer e assume d t o incur a uni t cos t o f $50 ; an d firework s displa yan d retai l establishment s wer e assume d t o incur a uni t cos t o f $125 . Unde r Optio n 1 , the lowestimat e o f abou t $2 7 millio n include s the cost s fo r th e estimate d 67,17 1 permanen t facilitie s an d 9,99 2 transien t facilitie s t o compl ywit hthe regulator yrequirements . Th e highestimat e o f abou t $3 6 millio n include s the cost s fo r th e estimate d 67,17 1 permanen t facilitie s an d 184,33 6 temporar

yfacilitie s t o compl ywit hthe requirements . Unde r Optio n 2 , th e lowestimat e i s abou t $2 0 million , wherea s th e highestimat e i s abou t $2 7 million . Tabl e 3- 6 show s th

e estimate d cost s t o SERC s an d LEPCs . Fo r SERCs , the tota l estimate d numbe r o f report s i s multiplie d b ythe estimate d handling cos t pe r repor t o f abou t $4 . Fo r LEPCs , th e estimate d numbe r o f report s fro m permanen t facilitie s i s multiplie d b ythe estimate d handling cos t o f abou t $5 4 pe r report , wherea s the estimate d numbe r o f report s fro mtransien t facilitie s i s multiplie d b

ythe estimate d handling cos t o f abou t $1 0 pe r report . Unde r Optio n 1 , the tota l cos t t o SERC s an d LEPC s i s estimate d t o rang e fro mabou t $ 4 millio n t o abou t $ 6 millio n pe r year . Unde r Optio n 2 , the estimate d cost s ar e estimate d t o rang e fro mabou t $ 2 millio n t o abou t $ 4 millio n pe r year .

T o the exten t tha t seismi c crew s purchas e explosive s directl yfo r us e a t a site , rathe r than impor t explosive s fro ma fixe d base , thes e estimate s ma yoverestimat e the planning cost s associate d wit hthe "permanent " facilities .P.3 1

TABL E 3- 5 TOTAL ESTIMATE DCOST S T O FACILITIE S UNDE ROPTION

1 - - LISTIN

GAL L COMMERCIAL EXPLOSIVE S INCLUDIN GFIREWORK S A S EHS s ( $ 000 )

Industr y

Explosive s Manufacturer s Explosive s Distributor s Explosive s Importer s Minin g Metal/Non-meta l Coa l HeavyConstructio n H i ghwa y Non-highwa y Othe r Drillin g - oi l & ga s Drillin g - drinkin g wate r Forestr y Demolitio n Specia l Effect s Seismi c Activit y Lo wEstimat e
$5 6 $2,26 2 $11 2 $2,35 2 $1,00 5 $4,65 2 $8,91 9 $48 2 $ 0 $ 0 $ 3 $9 8 $5 3 Hig hEstimat e

$5 6 $2,26 2 $11 2 $2,35 2 $1,00 5 $7,00 3 $13,42 7 $48 2 $ 0 $ 0 $ 4 $9 8 $9 4 Subtota l $19,99 6 $26,89 6 Firework s Manufactur e Distributio n - wholesal e Permit s (Displays ) Subtota l Displa yService s Distributio n - retai l Subtota l - Firework s TOTA L - - Optio n 1 TOTA L - - Optio n 2 $70 8 $1,85 7 $1,59 3 $4,15 8 $60 0 $2,15 5 $6,91 3 $26,90 9 $19,99 6 $70 8 $1,85 7 $1,59 3 $4,15 8 $2,37 5 $2,15 5 $8,68 8 $35,58 4 $26,89 6

Source : IC F estimates .P.3 2

TABLE 3- 6

ESTIMATE

DCOST S T

O SERC s AN

DLEPC s UNDE ROPTIONS 1 AN

D2

Optio n1 - - Firework s include d Lo w Estimat e Number o f Facilitie s Cos t

( $ 000 ) Hig

hEstimat e Number o f Facilitie s Cos t

( $ 000 )

Cost s t o SERC s 77,16 3 $29 8 251,50 7 $97 1 Cost s t o LEPC s Permanen t Facilitie s Transien t Facilitie s 67,17 1 9,99 2 $3,59 6

$10 1 67,17 1

184,33 6 $3,59 6

$1,85 6

TOTAL COS T $3,99 5 $6,42 3

Optio n2 - - Firework s Exclude d Lo w Estima t e Number of Facilitie s Cos t

( $ 000 ) Hig

hEstimat e Number of Facilitie s Cos t

( $ 000 )

Cost s t o SERC s 40,78 0 $15 7 179,44 4 $69 3 Cost s t o LEPC s Permanen t Facilitie s Transien t Facilitie s TOTAL COS T 40,60 0 18 0 $2,17 4

$ 2 $2,33 3 40,60 0

138,84 4 $2,17 4

$1,39 8 $4,26 5

Source : IC F estimates .P.3 3

3-1 4 Tabl e 3- 7 summarize s th e tota l estimate d numbe r o f affecte d facilitie s an d the tota l estimate d cost s unde r eac hOption . Unde r Optio n 1 , the tota l numbe r o f regulate d facilitie s i s estimate d t o b e betwee n 77,00 0 an d 252,000 , wit htota l cost s ranging fro m$3 1 millio n t o $4 2 millio n pe r year . Unde r Optio n 2 , the tota l numbe r o f regulate d facilitie s i s estimate d t o b e betwee n 41,00 0 an

d 180,00 0 facilities , wit hestimate d tota l cost s o f betwee n $2 2 millio n an

d $3 1 millio n pe r year .P.3 4

3-1 5 TABLE 3- 7 TOTA L ESTIMATE

DCOS T B

YOPTIO N (cost s i

nthousan

d198 9 dollars )

Optio n1 Lo w Estimat e Hig

h Estimat e Optio n2 Lo w Hig

h Estimat e Estimat e

Numbe r o f Facilitie s Numbe r o f Site s Numbe r o f Report s 67,17 1 9,99 2 77,16 3 184,33 6

251,50 7 40,60 0

18 0 40,78 0 138,84 4

179,44 4

Tota l Cos t t o Facilitie s $26,90 9 Tota l Cos t t o SERC s $29 8 Tota l Cos t t o LEPC s $3,69 7 $35,58 4 $19,99 6 $26,89 6 $97 1 $15 7 $69 3 $5,45 3 $2,17 6 $3,57 2

TOTAL COST S $30,90 3 $42,00 7 $22,32 9 $31,16 0

Source : IC F estimate sP.3 5

4 . BENEFIT S ANALYSI S Thi s chapte r describe s th e expecte d benefit s t o b e derive d fro mth e listing o f commercia l explosive s a s EH S chemical s unde r sectio n 30 2 o f SAR A Titl e III . Althoughth e benefit s ar e no t quantified , the yar e veryreal , reflecting primaril yth e advantage s tha t ar e derive d fro mincrease d communicatio n an

d informatio n flowbetwee n industr yan d the community . Th e benefit s can b e separate d int o thre e distinc t categories : (1 ) healt hbenefit s derive d fro mimprove d explosive s inventor ymanagemen t b

y facilities ; (2 ) healt hbenefit s derive d fro mimprove d emergencyplanning b y communities/fir e departments ; an d (3 ) increase d informatio n regarding us e an d presenc e o f explosive s i n communitie s throughou t the nation . Improve d Inventor

yManagemen t I f explosive s ar e listed a s EHS s unde r sectio n 30 2 o f Titl e III , facilitie s wit hinventorie s above the threshol d planning quantit y(TPQ ) mus t notif ythe SERC an

d LEP C and , i f requested , mus t participat e i n the planning process . Thes e responsibilitie s provid e a n incentive fo r owner s an d operator s o f facilitie s wh o stor e o r us e explosive s t o minimiz e the amoun t o f explosive s store d on-sit e and , i f possible , t o ensur e tha t inventorie s ar e maintaine d belo wthe TPQ . Reduce d inventorie s wil l reduc e the likelihoo d o f accident s a t facilitie s an

d wil l likel yreduc e the numbe r an d exten t o f injur

yan d damag e whe n accident s do occur . Further , eve n i n case s wher e inventorie s ar e maintaine d above the TP Q an d facilitie s mus t repor t t o th e SERC an

d LEPC , i t i s expecte d tha t owner s an d operator s wil l become mor e awar e o f the method s use d t o stor e an d handl e explosive s a t thei r facilitie s an d wil l b e motivate d t o improve thos e methods . Thi s motivatio n ma

yb e partiall yaugmente d b ythe likel yvisi t o f LEP C official s t o evaluat e the ris k t o th e community , o r ma

yb e self-motivated . I n eithe r case , the fina l resul t wil l b e reduce d risk s t o the communit yfro m explosives . Thes e reduce d risk s wil l translat e int o healt hbenefit s attribute d t o listing explosive s a s EH S chemicals . Improve d Planning fo r Emergencie s Perhap s the grou

p expecte d t o benefi t mos t fro mthe listing o f explosive s a s EH S chemical s ar e the fir e fighter s an d othe r emergencyrespons e personne l wh o wil l b e alerte d i n advanc e o f the presenc e o f explosive s a t a facility . Thi s increase d awarenes s an d abilit yt o pla n fo r emergencie s i s expecte d t o save the live s o f an d reduc e injurie s t o emergencyrespons e personnel . Improve d Informatio n an d Dat a Severa l section s o f th e Titl e II I statut e addres s the desir e o n the par t o f communitie s fo r informatio n abou t th e chemica l an

d physica l hazard s withi n thei r midst . The community' s right-to-knowi s partiall ysatisfie d whe n substance s ar e adde d t o the EH S lis t becaus e i t give s the communit ygreate r acces s t o information . Listing o f explosive s a s EHS s wil l increas eP.3 6

4- 2 informatio n abou t hazardou s material s store d a t facilities . Wit hincrease d informatio n ofte n come s understanding an d reduce d anxiety . Th e publi c derive s benefit s fro

mknowing abou t hazard s i n thei r community ; the increase d knowledg e enable s the publi c t o bette r understan d an d cop e wit hthe risks . Improve d informatio n an d dat a o n explosive us e an d storag e can als o b e use d t o increas e our genera l understanding o f ho wexplosive s ar e use d i n our communitie s an

d t o fil l dat a gap s o n the exten t o f the variou s use s o f explosives . AlthoughAT F regulate s explosives , ther e ar e gap s i n thei r regulator

ycoverage , a s wel l a s i n dat a base s o n explosive s usage . B ylisting commercia l explosive s a s EH S chemicals , man yo f thes e regulator yan d informationa l gap s wil l b e filled .P.3 7

5 . SENSITIVITY ANALYSI S AN DLIMITATIONS

Lac k o f authoritative dat a o n the populatio n potentiall yaffecte d b ythe listing o f explosive s a s EHS s i s on e o f th e primarylimitation s o f thi s analysis . Man

yo f the facilityestimates , especiall ytransien t drilling an d seismi c facilities , wer e obtaine d throug htelephon e call s wit hpeopl e active i n the variou s industries . Becaus e the estimate s hav e no t bee n develope d fro m representative surveydata , the yar e subjec t t o significan t error . 5.1 . ESTIMATE

DNUMBE RO F FACILITIE S SUBJECT T O REPORTIN

G Th e estimate d numbe r o f facilitie s require d t o mee t the sectio n 30 2 an d 30 3 reporting an

d planning requirement s wa s presente d i n Chapte r 2 o f thi s report . Thes e estimates , however , mayb e highe r o r lowe r than the actua l numbe r o f affecte d facilitie s becaus e o f an incorrec t estimatio n o f the numbe r o f reporting firms o r sites . Tabl e 2- 1 summarize s the facilityestimates , presenting bot hthe numbe r o f establishment s an d the numbe r o f site s tha t manufacture , use , o r stor e explosives . Som e estimate s i n the tabl e ar e presente d i n ranges ; however , i n som e cases , thos e range s ma yno t b e sufficientl ybroa d t o reflec t th e true impac t o f the regulation . Man yo f the facilitie s affecte d b ythe listing o f explosive s a s EHS s ma y alread yb e subjec t t o section s 30 2 an d 30 3 becaus e o f thei r us e o f othe r EHSs . I n the Apri l 198 7 RIA , fo r example , abou t 2 1 percen t o f al l constructio n an d mining facilitie s wer e estimate d t o b e require d t o notif ythei r SERC s an d LEPC s o f the storag e o f EHS s an d t o participat e i n the sectio n 30 3 planning process . Chemica l plant s manufacturing explosive s (a s oppose d t o user s o f explosive s tha t mi xblasting agents ) ma yals o b e covere d becaus e o f the storag e o f EHS s on the curren t list . I n the analysi s i n Chapte r 3 , i t wa s assume d tha t al l facilitie s using explosive s stor e explosive s i n quantitie s greate r than the TPQ . Som e application s fo r explosives , however , ma yrequir e relativel ysmal l explosive quantities . B

ybringing onl yth

e require d amoun t o f explosive s t o a site , firms mayb e abl e t o avoi d reporting fo r som e sites . Eve n application s having larg e tota l requirement s fo r explosive s ma yus e incrementa l quantitie s o f explosives . Fo r example , progressive demolitio n o r seismi c exploratio n ma y requir e individua l charge s belo wthe TPQ . B yhaving onl ythe require d charg e a t a sit e a t an

ygive n time , firms ma yb e abl e t o avoi d notifying SERC s an d LEPC s abou t th

e presenc e o f explosives . Th e remainde r o f thi s sectio n wil l discuss , fo r eac ho f the segment s presente d i n Chapte r 2 , the possibl e factor s tha t coul d increas e o r decreas e the estimate d numbe r o f affecte d facilitie s o r sites . 5.1.1 . Explosive s Manufacturing , Distribution , an dImportatio n Th e Agenc yi s confiden t tha t the estimate d number s o f manufacturers , distributors , an

d importer s o f explosive s ar e clos e t o the actua l number s o f facilitie s tha t wil l b e require d t o compl ywit hsection s 30 2 an d 30 3 o f Titl e II I i f explosive s ar e listed a s EHSs . However , the analysi s ha s include d i nP.3 8

5- 2 manufacturing onl ythos e facilitie s tha t ar e categorize d a s explosive s manufacturer s b

yth e Bureau o f the Census ; distributor s wer e estimate d using AT F data . Th e differen t dat a source s wer e use d becaus e distributor s ar e require d t o hav e an AT F licens e fo r eac hplac e o f business , wherea s AT F define s manufacturer s i n sucha waya s t o include man yend-us e industrie s tha t mi xexplosive component s on-site . I t i s possible , therefore , tha t som e distributor s o f explosive s ar e categorize d a s manufacturer s b yAT F an

d thu s have no t bee n include d i n the estimate d numbe r o f distributor s o r manufacturer s i n Chapte r 2 . 5.1.2 . Mining Site s Ther e wa s a consensu s tha t explosive s ar e widel yuse d i n mining , an d th e numbe r o f mining site s i s wel l known . Consequently , the numbe r o f mining site s tha t woul d b e affecte d shoul d b e clos e t o the estimate s presente d i n Tabl e 2-1 . B

yincluding intermitten t an d nonproducing mining sites , however , the analysi s mayoverestimat e the numbe r o f potentiall yaffecte d facilities . 5.1.3 . Constructio n Facilitie s an d Site s Althoughi t i s virtuall ycertai n tha t the numbe r o f constructio n facilitie s incurring ful l complianc e cost s ha s bee n overestimate d i n thi s analysis , the numbe r o f potentiall yaffecte d site s i s probabl ywithi n the rang e develope d i n Chapte r 2 . Thi s analysi s assume s tha t al l constructio n facilitie s ar e potentia l user s o f explosive s i n amount s greate r than the TPQ . A s discusse d i n Chapte r 2 , however , mos t constructio n contractor s wil l us e specialize d explosive s subcontractor s whe n explosive s ar e neede d a t a site . Consequently , i t i s virtuall ycertai n tha t the numbe r o f constructio n facilitie s permanentl ystoring explosive s i s les s than the 27,00 0 establishment s derive d fro mCensu s data . Unfortunately , dat a ar e no t currentl yavailabl e t o bette r defin e th e scop e o f the affecte d community . The analysi s furthe r assume d that , o n average , al l constructio n establishment s woul d us e explosive s a t betwee n 1 an d 6 site s pe r year . Althoughthi s assumptio n i s mean t t o encompas s the minorit yo f contractor s tha t us e explosive s extensively , i t ma ycaus e a significan t overestimatio n o f the tota l numbe r o f affecte d sites . 5.1.4 . Othe r Industrie s Th e dat a use d t o characteriz e severa l othe r o f the end-us e industrie s ar e relativel ypoor . Consequently , the numbe r o f affecte d facilitie s an d site s ma

yb e les s than o r greate r than the estimate s provide d i n Chapte r 2 . Drilling Ther e ma

yb e significan t error s i n the estimate s o f the numbe r o f drilling site s using explosive s i n exces s o f the TPQ . Fo r example , i t i s estimate d tha t the amoun t o f explosive s use d i n drilling application s i s abou t 5 t o 5 0 pound s pe r well . The analysi s assume s tha t 5 0 pound s woul d b e belo w th e TP Q and , therefore , explosive us e i n drilling operation s a t individua l well s woul d no t b e reported . I f the TP Q i s se t a t on e pound , however , theP.3 9

5- 3 numbe r o f well s reporting coul d b e a s higha s 39,000 , whic hrepresent s th e estimate d numbe r o f oi l an d ga s well s (26,000 ) an d dr yhole s (13,000 ) drille d pe r year . Also , estimate s wer e no t availabl e o n the numbe r o f drinking wate r drilling companie s tha t us e explosive s o r the numbe r o f drinking wate r well s drille d annually . I n al l likelihood , the us e o f explosive s fo r drinking wate r well s depend s o n the geolog yo f the site . Seismi c Activit y I n Chapte r 2 , individua l well s drille d fo r seismi c exploratio n ar e assume d no t t o nee d t o b e reporte d becaus e o f the amoun t o f explosive s use d fo r thi s activity . I f th e TP Q wer e se t a t one pound , al l individua l well s woul d b e require d t o report . The numbe r o f reporting well s coul d the n b e a s higha s 190,000 , assuming a 10-mil e exploratio n line , 30 0 foo t interval s betwee n wells , an

d 1 2 site s pe r exploratio n crewpe r year . Firework s Th e numbe r o f site s tha t woul d repor t becaus e o f firework s ma yb e eithe r over - o r underestimated . Th e analysi s assume d tha t al l retai l store s no t otherwis e accounte d fo r i n th e Censu s dat a fo r SI C cod e 590 0 maypotentiall y sel l explosives . Becaus e man ystate s do no t allowfirework s sales , the numbe r o f store s tha t woul d b e require d t o repor t mayb e overestimated . However , the numbe r o f facilitie s tha t sel l firework s mayb e underestimate d i f firework s ar e sol d a t retai l establishment s i n othe r industrie s (e.g. , drug s an d sundries , convenienc e stores , o r retai l moto r fuels) . 5.2 . ESTIMATE D ACTIVITIE S OF TEMPORAR Y SITE S I n Chapte r 3 , temporar ysite s wer e assume d no t t o participat e i n th e planning process . Becaus e explosive s us e i n man yapplication s (e.g. , mos t constructio n activities , drilling , an d seismi c exploration ) require s tha t explosive s b e brough t t o the sit e onl yo n the da ythe yar e needed , i t seems unlikel ytha t the user s o f explosive s a t the site s wil l participat e i n th e emergencyplanning process . Consequently , the analysi s assume d tha t the onl y cos t associate d wit hthe site s i s the cos t t o submi t a notificatio n t o th e SER C an d the LEPC . I t i s conceivable , however , tha t explosive s us e a t som e o f th e site s wil l occur ove r a relativel ylon g tim e span . Fo r example , a constructio n projec t ma yus e explosive s ove r a perio d o f som e months , althoug

h explosive s mayb e use d a t the sit e onl ya fewday s during the period . I t i s possibl e tha t the lon g duratio n ove r whic hexplosive s mayb e use d wil l lea d the operato r o f the sit e t o participat e i n the emergencyplanning process . I f thes e site s do participate , the cos t ma yb e abou t $50 0 pe r site , rathe r than $50 .P.4 0

APPENDI X A . SUMMAR YOF ATF REGULATION S Th e Burea u o f Alcohol , Tobacco , an d Firearm s (ATF ) regulate s the manufacture , sale , an d interstat e transpor t o f explosives . Thi s appendi x describe s the curren t AT F regulations , specificall ythe type s o f activitie s regulate d b

yAT F an

d the numbe r o f facilitie s wit hAT F license s an d permits . AT F regulation s ar e develope d pursuan t t o the authorit yo f Titl e X I o f the Organize d Crim

e Contro l Ac t o f 197 0 (1 8 U.S.C . Chapte r 40) ; AT F regulation s ar e foun d i n Par t 5 5 o f the Cod e o f Federa l Regulations . AT F annuall ypublishe s a lis t o f commercia l explosives ; the mos t recen t lis t o f explosive material s wa s publishe d o n Decembe r 28 , 198 8 (5 3 F R 52561 ) an

d contain s 22 4 items . Th e AT F lis t o f commercia l explosive s i s intende d t o includ e an

yan d al l mixture s tha t contai n an yo f the material s o n the list . Althoughthe lis t i s comprehensive , i t i s no t al l inclusive . Tha t is , material s tha t mee t the statutor ydefinitio n o f explosive s ar e covere d unde r th e AT F regulation s eve n i f the yar e no t explicitl yliste d i n the Federa l Register . Th e AT F regulation s (1 ) requir e tha t facilitie s obtai n a licens e o r permi t t o manufacture , distribute , o r impor t explosives , o r t o us e explosive s i n interstat e commerc e an d (2 ) requir e tha t explosive s b e properl ystored . The AT F regulation s categoriz e explosive s bot hb ytyp e (i.e. , highexplosives , lowexplosives , an

d blasting agents ) an d b yuse . Highexplosive s wil l detonat e eve n whe n unconfine d (e.g. , dynamite) . Lowexplosive s ar e define d a s material s tha t deflagrat e whe n confine d (e.g. , blac k powder , safetyfuses , igniters , ignite r cords , an d fus e lighters) . Blasting agent s ar e define d a s compound s use d fo r blasting tha t canno t b e detonate d using a numbe r 8 blasting ca p whe n unconfine d (e.g. , ammoniu mnitrate-fue l oi l mixtures) . Al l thre e categorie s o f explosive s ar e considere d t o b e "commercia l explosives. " The categorizatio n o f explosive s i s use d b yAT F t o ensur e tha t adequat e precaution s (i.e. , storag e facilitie s an d isolatio n distances ) ar e use d t o stor e the explosives . I f storag e facilitie s ar e designe d fo r mor e powerfu l explosive s (e.g. , highexplosives ) the ymayb e use d t o stor e explosive s i n a lowe r categor

y(e.g. , blasting agents) . AT F ha s develope d minimu mcriteri a fo r storag e facilitie s tha t mus t b e me t befor e a facilit ymaystor e explosives . AT F regulate s thre e principa l categorie s o f explosive use . The firs t categor yinclude s thos e person s wh o manufactur e o r trade i n explosives ; anyon e wishing t o manufacture , distribute , o r impor t explosive s mus t obtai n a license . Th e secon d categor

yinclude s person s wishing t o purchas e explosive s outsid e o f thei r stat e o f residence ; anyon e doing s o mus t obtai n a permit . The third categor

yinclude s person s wh o purchas e explosive s i n thei r stat e o f residence ; ther e i s n o requiremen t t o obtai n eithe r a permi t o r a license , althoughthe explosive s deale r mus t maintai n a record o f the transaction . Ther e ar e currentl yabou t 13,00 0 license s an d permits . Tabl e A- l summarize s the numbe r o f license s an d permit s issued b

yAT F a s o f August , 1989 . Thi s numbe r represent s a lowe r bound o n the numbe r o f site s potentiall y subjec t t o section s 30 2 an d 30 3 o f Titl e III , becaus e the numbe r doe s no t includ e in-stat e purchaser s an d doe s no t includ e al l site s a t whic hexplosive s ar e manufacture d (a s discusse d below) .-«' . I
- * 1 1

*J w

A- 2

TABLE A- l LICENSE S AN

DPERMIT S ISSUE

D

High Permit s Issue d Explosive s License s Manufacturer s 77 1 Importer s 10 0 Dealer s 72 6 Manufacturers

- 4 Limite d Subtota l 1,60 1 Permit s User s 3,16 0 Users-Limite d 3 6 Subtota l 3,19 6 TOTAL 4,79 7

Source : Burea u o f Alcohol , Tobacco , Note : Th e numbe r o f AT F license s an d five years : 9,55 7 i n 1985 ; 1 0 i n 1988 . Low Explosive s

20 5 12 6 48 5 5
82 1
52 6 3,23 5 3,76 1 4,58 2

an d Firearm s permit s hav e 06 0 i n 1986 ; BY ATF

Blasting Agent s

21 7 2 2 5 3
24 7
6 4 5 6 9 31 6

a s o f Au g Blac k

Powde r

3,34 8

3,35 8

3,35 8

us t 31 , 198 9 rise n steadil yove r 10,48 7 i n 1987 ; an

d Tota l

1,19 3 22 8 4,59 4 1 2 6,02 7 3,75 0 3,27 6 7,02 6 13,05 3

the las t 12,29 2 P.4 1P.4 2

A- 3 A. l LICENSE S AT F issue s license s t o individual s o r companie s tha t manufactur e o r sel l explosives . Importers , manufacturers , an d distributor s o f explosive s mus t al l obtai n licenses . Applicant s fo r license s ar e require d t o mee t ag e an d characte r requirements , mus t b e familia r wit hal l publishe d stat e law s an d loca l ordinance s relating t o explosive materials , mus t hav e premise s i n the stat e fro

mwhic hthe

yinten d t o conduc t business , an d mus t no t hav e willfull y violate d an

yo f the provision s o f Titl e X I o f the Organize d Crime Contro l Ac t o f 197 0 o f the AT F regulations . Licens e application s ar e submitte d t o the Servic e Cente r Directo r fo r th e interna l revenu e distric t i n whic hthe busines s premise s ar e t o b e located . Th e applicatio n i s the n forwarde d t o th e regiona l regulator

yadministrator . AT F define s severa l activitie s requiring a license :

• Dealer . An

yperso n engage d i n the busines s o f distributing explosive material s a t wholesal e o r retail .

• Importer . An yperso n engage d i n the busines s o f importing o r bringing explosive material s int o the Unite d State s fo r purpose s o f sal e o r distribution .

• Manufacturer . An yperso n engage d i n the busines s o f manufacturing explosive material s fo r purpose s o f sal e o r distributio n o r fo r hi s ow n use . Unde r the AT F regulations , manufactur e include s the mixing o f binaryagent s (sucha s ammoniu mnitrat e an

d fue l oil ) t o for

mblasting agent s (such a s ammoniu

mnitrate-fue l oi l mixture , referre d t o a s ANFO) .

• Manufacturer-Limited . An yperso n engage d i n the busines s o f manufacturing explosive material s fo r hi s ow n us e an

d no t fo r sal e o r distribution . Manufacturer-limite d license s ar e use d primaril yb

yperson s mixing blasting agent s o n a one tim e basis ; th

e licens e i s vali d fo r 3 0 days . Althoughther e ar e n o routin e reporting requirement s fo r commercia l explosives , licensee s ar e require d t o keep extensive record s o n the sourc e an d dispositio n o f explosive materials . Licensee s mus t tak e physica l inventorie s o f explosive s o n han d a t leas t onc e a yea r an d keep the inventor yrecord o n fil e fo r inspection . Aspecia l inventor yi s require d a t the time o f commencing business , a t th e tim e o f changing the locatio n o f busines s t o anothe r region , a t th e tim e o f discontinuing business , an d a t an ytim e the regiona l regulator

yadministrato r issue s a writte n request . Eac hspecia l inventor

yi s t o b e submitte d t o the regiona l regulator yadministrator , an d a duplicat e i s t o b e retaine d b ythe importer , manufacturer , o r dealer . Licensee s mus t als o record the importation , acquisition , name an d identificatio n mark s o f the manufacturer , quantit yo f explosive s purchased , an d descriptio n o f materials . I f the ydistribut e an

yexplosive material s t o anothe r license e o r permittee , the ymus t record the sam e information , a s wel l a s the licens e o r permi t numbe r o f th e license e o r permitte e t o whomthe explosive material s ar e distributed .P.4 3



### i * A- 4

Alicense d manufacture r i s exemp t fro mthes e record keeping requirement s i f the explosive material s ar e manufacture d fo r hi s ow n us e an

d ar e use d withi n a 24-hour perio d a t the sam e site . Fo r example , the mixing o f ammoniu m nitrat e an

d fue l oi l constitute s "manufacturing " unde r AT F regulations . I f the mixtur e i s use d withi n 2 4 hours , the manufacture r doe s no t nee d t o record it s manufactur e o r use . I f i t i s no t use d withi n 2 4 hour s o r i f i t i s sold , th e manufacture r mus t keep record s o f it s manufactur e an d us e o r sale . Aseparat e licens e mus t b e obtaine d fo r eac hseparat e busines s premis e a t whic hthe applican t i s t o manufacture , import , o r distribut e explosive materials . Aseparat e licens e i s no t required , however , fo r manufacturing fo r on-sit e us e withi n the sam e region . Tha t is , individual s manufacturing explosive s fo r on-sit e use , sucha s the combining o f ammoniu mnitrat e an

d fue l oi l fo r blasting (a s oppose d t o sal e o r distribution) , do no t hav e t o obtai n site-specifi c licenses . The licens e t o manufactur e allow s the licensee s t o manufactur e a t an

ynumbe r o f site s withi n the sam e region .
A. 2 PERMIT S AT F issue s permit s t o individual s o r companie s intending t o purchas e o r shi p explosive s outsid e o f thei r stat e o f residence . Permit s ar e require d fo r individual s wh o inten d t o acquir e explosive s fo r us e i n a stat e othe r than th e one i n whic hthe

yreside , o r fro

ma foreign country . Theyar e als o require d fo r al l person s wh o inten d t o transpor t explosive material s i n interstat e or foreign commerce . Ther e are , however , certai n exception s allowe d b ythe regulations . Fo r example , i t i s no t necessaryt o obtai n a permi t t o acquir e explosive s fro

ma contiguou s stat e i f the stat e i n whic hthe use r reside s ha s enacte d legislatio n specificall yauthorizing resident s t o purchas e explosive material s i n a contiguou s state . Washington , Wyoming , Delaware , Vermont , an d Kentuck ycurrentl yallowsuchpurchases ; Pennsylvani a allow s suc hpurchase s fo r blac k powde r only . Finally , a permi t i s no t require d fo r the lawfu l purchas e o f blac k powde r i n quantitie s tha t do no t excee d 5 0 pound s an d tha t wil l b e use d solel yfo r sporting , recreational , an d fo r othe r specifie d purposes . Ther e ar e certai n non-technica l requirement s tha t mus t b e me t befor e an individua l ma

yobtai n a permit . The applican t mus t b e 2 1 year s o f ag e an d generall ymus t b e o f good character . Permit s ar e denie d t o applicant s wh o ar e unde r indictmen t o r hav e bee n convicte d o f a crime punishabl e b yimprisonmen t fo r a ter

mexceeding one year , wh o ar e fugitive s fro mjustice , wh o us e o r ar e addicte d t o drugs , o r wh o ar e mentall ydefective o r hav e bee n committe d t o a menta l institution . Application s ar e submitte d t o the Servic e Cente r Directo r fo r the interna l revenu e distric t i n whic hthe applican t reside s o r i n whic h hi s busines s i s located . AT F issue s tw o classe s o f permits :

• User . An

yperso n authorize d (a ) t o acquir e fo r hi s ow n us e explosive material s fro ma license e i n a Stat e othe r than the Stat e i n whic hh e reside s o r fro ma foreign country , an d (b ) t o transpor t explosive material s i n interstat e o r foreign commerce .

# A 

# . . 

# , % « P.4 4

A- 5 User-limited . Ause r permi t vali d onl yfo r a singl e purchas e transaction .
A. 3 CONSUMPTIV

E US E Unde r the AT F regulations , user s wh o purchas e an d us e explosive s withi n thei r ow

n stat e ar e no t require d t o obtai n eithe r a permi t o r a license . (A s discusse d above , however , i f the use r combine s tw o compounds , suc ha s ammoniu m nitrat e an

d fue l oil , the n the use r woul d b e a manufacture r subjec t t o licensing requirements. )

A. 4 LIMITATION S AN D EXEMPTIONS Ther e ar e a numbe r o f exemption s t o thes e regulations . Fo r example , th e regulation s do no t cove r severa l classe s o f explosive materials :

Explosiv e material s foun d i n medicine s an

d medicina l agents ; Smal l arms ammunitio n an d component s o f smal l arm s ammunition ; Industria l an

d laborator

ychemical s whic har e intende d fo r us e a s reagents ; Gasoline , fertilizers , an d propellan t actuate d industria l tools ; Blac k powde r i n quantitie s les s than 5 0 pound s (withcertai n exceptions) ; Militaryan

d othe r agencie s an d thei r contractors ; Importatio n an

d distributio n o f firework s classifie d a s Clas s C explosive s an d generall yknow

n a s "commo n fireworks; " Transportatio n o f explosive material s vi a railroad , water , highway , o r ai r (whichi s regulate d b ythe U.S . Departmen t o f Transportation) . I n summary , the AT F dat a fai l t o provid e informatio n o n larg e numbe r o f site s tha t hav e an

d us e commercia l explosives , including (1 ) user s o f explosive s wh o purchas e the explosive s i n thei r stat e o f residence , (2 ) manufacturer s o f blasting agent s license d o n a regiona l basi s wh o manufactur e the blasting agent s on-site , othe r than a t thei r primaryplac e o f business , an d (3 ) mos t firework s dealer s an d users .