Document ID: PHMSA-2013-0123-0005
Agency: phmsa
Document Type: Notice
Title: Hazardous Materials: Lite Cylinder Co., Inc., Emergency Recall Order
Posted Date: 2013-06-06T04:00Z

[Federal Register Volume 78, Number 109 (Thursday, June 6, 2013)]
[Notices]
[Pages 34156-34160]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-13354]

-----------------------------------------------------------------------

DEPARTMENT OF TRANSPORTATION

Pipeline and Hazardous Materials Safety Administration

[Docket No. PHMSA-2013-0123, Notice No.13-09]

Hazardous Materials: Emergency Recall Order

AGENCY: Pipeline and Hazardous Materials Safety Administration (PHMSA), 
DOT.

ACTION: Emergency Recall Order.

-----------------------------------------------------------------------

SUMMARY: This notice publishes Emergency Recall Order 2013-002 (DOT 
Docket Number PHMSA-2013-0123), issued on May 24, 2013 to The Lite 
Cylinder Company, Inc. The Office of Hazardous Materials Safety issued 
this Emergency Order pursuant to authority granted in 49 U.S.C. 5121(d) 
and 49 CFR 109.17(c), and is published in accordance with 49 CFR 
109.19(f)(2)(iv). Emergency Order 2013-002 mandates a recall of (1) all 
cylinders manufactured by The Lite Cylinder Company, Inc. and marked as 
authorized under DOT-SP 14562 (and DOT-SP 13957 as authorized therein) 
and DOT-SP 13105, (2) any cylinder requalified under H706, and (3) any 
cylinders manufactured under M5729 (collectively, ``the affected 
packaging''), and was issued after PHMSA's finding that the affected 
packaging constitutes, or are causing, an imminent hazard to public 
safety.

DATES: Effective Date:
    May 24, 2013.

FOR FURTHER INFORMATION CONTACT: Adam Horsley, Attorney, Office of the 
Chief Counsel, PHMSA, 202-366-4400.

SUPPLEMENTARY INFORMATION: The full text of Emergency Recall Order 
2013-002 is as follows:
    This notice constitutes an Emergency Recall Order by the United 
States Department of Transportation (DOT) pursuant to 49 U.S.C. 5121(d) 
and 49 CFR 109.17(c); and pursuant to delegation of authority to the 
Associate Administrator, Pipeline and Hazardous Materials Safety 
Administration (PHMSA), Office of Hazardous Materials Safety. By this 
Order, PHMSA is mandating a recall of all cylinders manufactured by The 
Lite Cylinder Company, Inc. (Lite Cylinder) and marked as authorized 
under DOT-SP 14562 (and DOT-SP 13957 as authorized therein), DOT-SP 
13105; any cylinder requalified under H706; and any cylinders 
manufactured under M5729 (hereinafter referred to as affected 
packaging(s)). In addition, this order applies to any person who is in 
possession of an affected packaging subject to this order.
    PHMSA finds that the affected packagings constitute or are causing 
an imminent hazard to public safety. For more detailed information see 
``Background/Basis for Order'' below.

This Order Applies to

    (1) Lite Cylinder, its officers, directors, employees, 
subcontractors, investors and agents (``Lite Cylinder''); and
    (2) Any person who is in possession of an affected packaging, 
including any officers, directors, employees, subcontractors, 
investors, and agents of said person (for purposes of this Order, 
``Cylinder Owners'').
    Under no circumstances should a cylinder described in this 
emergency recall order be filled, refilled, or used for the 
transportation of hazardous materials.

Effective Immediately, Lite Cylinder Must

    (1) Contact all Cylinder Owners to whom affected packagings have 
been

[[Page 34157]]

sold and inform them of the Emergency Recall Order and provide them the 
proper and necessary instruction and information for the safe handling 
and discharge of hazardous material and for the return shipment of 
cylinders no later than five business days of this Order. The 
information must include instruction that directs Cylinder Owners to 
use only qualified persons, trained in handling cylinders in accordance 
with Federal regulations, and to safely discharge, purge, and remove 
the valve from, the cylinder.
    (2) Confirm that the returned cylinders are purged and emptied.
    (3) Ensure that the purged and empty cylinders are returned to the 
manufacturer at the following address: The Lite Cylinder Company, 139 
Southeast Parkway Court, Franklin, TN 37064.
    (4) Provide by email the serial number of each returned cylinder to 
PHMSA at specialpermits@dot.gov (referencing ``Lite Cylinder'' in the 
subject line) by the close of business daily. Please note any problems 
that may have been witnessed with the cylinder (e.g. leakage, damage, 
etc.).
    (5) Permanently obliterate the special permit specification 
markings and render them incapable of holding pressure within five 
business days of possession, including those in inventory.

PHMSA Urgently Advises Cylinder Owners to

    (1) Take proper safeguards in identifying and handling the affected 
packagings identified in this Order,
    (2) Use the instruction and information provided by Lite Cylinder 
for the safe handling and discharge of hazardous material and for the 
return shipment of cylinders. This information will guide Cylinder 
Owners to use only qualified persons, trained in handling cylinders in 
accordance with Federal regulations, and to safely discharge, purge, 
and remove the valve from, the cylinder.
    (3) Return the purged and empty cylinders to the manufacturer at 
the following address: The Lite Cylinder Company, 139 Southeast Parkway 
Court, Franklin, TN 37064.
    This Order is effective immediately and remains in effect unless 
withdrawn in writing by the Associate Administrator or his designee, or 
until it otherwise expires by operation of law.

Information Gathering

    Any person who is aware of a failure or incident relating to any 
cylinder marked DOT-SP 14562, DOT-SP 13957, DOT-SP 13105; any cylinder 
requalified under H706; and other cylinder manufactured under M5729 is 
requested to contact PHMSA, as instructed in the Emergency Contact 
Official section below, as soon as possible. PHMSA requests information 
on all cylinders made under the foregoing special permits and 
approvals, which include 10-pound, 20-pound, 25-pound and 33-pound 
cylinders.

Jurisdiction

    Lite Cylinder manufactures or has manufactured, marked, certified 
and sold composite cylinders as meeting DOT-SP 14562, DOT-SP 13957, and 
DOT-SP 13105; performed cylinder requalification under approval H706; 
and manufactured cylinders under Registration Number M5729, which are 
used to transport hazardous materials within the United States and 
therefore is a ``person,'' as defined by 49 U.S.C. 5102(9), and, a 
``person'' under 1 U.S.C. 1. Accordingly, Lite Cylinder, or any person 
in possession of an affected packaging, is subject to the authority and 
jurisdiction of the Associate Administrator, including the authority to 
impose emergency restrictions, prohibitions, recalls, or out-of-service 
orders, without notice or an opportunity for hearing, to the extent 
necessary to abate the imminent hazard (49 U.S.C. 5121(d)).

Background/Basis for Order

    On October 10, 2012, PHMSA suspended Lite Cylinder's special 
permits DOT-SP 14562, (and DOT-SP 13957 as authorized therein), and 
DOT-SP 13105, cylinder requalification approval H706 and manufacturer`s 
Registration Number approval M5729, and proposed termination of the 
above approvals and special permits unless Lite Cylinder could show 
cause why such action should not be taken. Concurrent with this action 
today, PHMSA has terminated the above special permits and approvals for 
cylinder requalification, and manufacturer's Registration Numbers. Upon 
reliable and credible information received in the course of 
investigations, PHMSA has learned that Lite Cylinder has:
    1. Failed to notify the Associate Administrator for Hazardous 
Materials Safety, in writing, of incidents involving DOT-SP 14562 
cylinder failures, as required by DOT-SP 14562, Paragraph 12.
    Paragraph 12 of DOT-SP 14562 requires the grantee to notify the 
Associate Administrator for Hazardous Materials Safety, in writing, of 
any incident involving a package (including a cylinder failure), 
shipment or operation conducted under the terms of the special permit. 
PHMSA discovered that Lite Cylinder failed to report three cylinder 
failures in service and one cylinder failure during production testing, 
in violation of DOT-SP 14562. PHMSA obtained (1) a copy of a settlement 
agreement Lite Cylinder entered into with Robert Nicholson on January 
20, 2012 after a DOT-SP 14562 cylinder ruptured and damaged a gas grill 
in New Jersey, which Lite Cylinder's owner admitted was a result of a 
flaw in the seam, (2) signed employee statements regarding an injury to 
an Independent Inspection Authority (IIA) employee during a low 
pressure test at Lite Cylinder's facility, and (3) a report from 
Freudenberg Texbond regarding a cylinder that separated at their Macon, 
Georgia facility on September 7, 2012. Lite Cylinder employees also 
described a cylinder failure that injured several people in the 
Dominican Republic, which involved 33-pound DOT-SP 13957 cylinders.
    In addition to the failures described above, PHMSA discovered that, 
from January 14, 2009 to September 25, 2012, approximately 19 cylinder 
owners had returned DOT-SP 14652 cylinders due to sidewall or bottom 
leaks. Lite Cylinder documented most of these returns in their 
complaint log, but failed to report them to PHMSA.
    2. Failed to comply with PHMSA Notice of Suspension dated May 10, 
2007, which required Lite Cylinder to cease the sales of all DOT-SP 
13957 cylinders.
    On May 10, 2007, the PHMSA issued a Notice of Suspension of DOT-SP 
13957, which prohibited the manufacture and continued use of 33-pound 
DOT-SP 13957 cylinders. PHMSA's investigators obtained an Invoice 
 2070, dated July 17, 2008, which shows that Lite Cylinder 
sold and shipped one thousand cylinders to Cocigas SA in Canabacos, 
Santiago Dominican Republic. The invoice listed the cylinders as 
``33 Composite Lite Cylinder Complete'' and provided 
instructions on how to obtain a copy of DOT-SP 14562, the special 
permit that PHMSA issued which allowed resumed use of 10 pound and 20 
pound DOT-SP 13957 cylinder under the authority of DOT-SP 14562 without 
remarking. Several Lite Cylinder employees, including Mr. 
Reifschneider, Lite Cylinder's President, provided signed statements 
saying that the cylinders sold to Cocigas were manufactured under DOT-
SP 13957. Furthermore, PHMSA has obtained photographs showing that 
cylinders sold to Cocigas remained marked as DOT-SP cylinders. 
According to the statements, one of

[[Page 34158]]

these cylinders subsequently failed during transportation and injured 
several occupants of the transport vehicle.
    3. Failed to test DOT-SP 14562 cylinders at the minimum test 
pressure of 480 psi as required by Paragraph 7.a.1 of the Fifth 
Revision issued on October 19, 2011.
    On October 19, 2011, PHMSA granted Lite Cylinder's request for a 
5th Revision to DOT-SP 14562, which increased the maximum service 
pressure for these cylinders to 320 psi and the minimum test pressure 
to 480 psi. Lite Cylinder's manufacturer's reports to PHMSA indicate 
that it has tested 11,416 DOT-SP 14562 cylinders at 441 psi since the 
5th Revision became effective on October 19, 2011.
    4. Failed to conduct cycle and burst testing at random intervals, 
as required by DOT-SP 14562, Paragraphs 7.a.10.ii-.iii.
    DOT-SP 14562 requires cycle testing for one cylinder taken at 
random from each group of 1000 cylinders, and burst testing for one 
cylinder taken at random from each run of 200 cylinders or less. Lite 
Cylinder's records show that the company conducted all of the required 
cycle and burst tests at the beginning of each lot manufacturing 
process, rather than taking random samples.
    5. Failed to manufacture DOT-SP 14562 cylinders in accordance with 
the Quality Systems Manual (QSM) on file with PHMSA's Permits and 
Approvals Division, as required by Paragraph 7.a of DOT-SP 14562.
    PHMSA's review of Lite Cylinder's manufacturing records show that 
the company failed to follow the requirements of the QSM on file with 
PHMSA. Specifically, Lite Cylinder:
     Continued manufacturing DOT-SP 14562 cylinders after puck 
tests failed to meet the required hardness test limits;
     Failed to perform and document grinding wheel adjustments 
and inspections to ensure that the joiner was properly aligned and 
operating as required; and
     Failed to perform burst testing following a cylinder 
failure during the manufacturing process.
    6. Failed to notify PHMSA of changes to its QSM as required by 
Paragraph 7.a of DOT-SP 14562.
    DOT-SP 14562 required Lite Cylinder to manufacture cylinders in 
accordance with the QSM on file with PHMSA, and to provide written 
notice to PHMSA of any changes to the QSM. Lite Cylinder made 
significant changes to its QSM on February 14, 2008 (e.g. puck testing 
procedures, joiner maintenance requirements, resin and hardener flow 
metering), but never submitted the revisions to PHMSA.
    7. Marked and sold ``DOT-SP 14562'' cylinders that were not 
designed and manufactured in conformance with TLCCI drawings D10DOT, 
D10DOTAS, D20DOT, D20DOTAS, DOT 33-100-D0001, DOT 33-100-D0002, DOT 33-
100-D0003, DOT 33-D0004 on file with PHMSA's Office of Hazardous 
Materials Safety--Approvals and Permits as required by Paragraph 7.a of 
DOT-SP 14562.
    On May 17, 2013, PHMSA discovered that a prototype cylinder 
manufactured by Lite Cylinder had separated circumferentially while in 
service powering a lawn mower. Upon further investigation, PHMSA 
discovered that Lite Cylinder had sold 40 similar cylinders marked as 
``DOT-SP 14562'' to Onyx, a retailer in Stanley, North Carolina. On May 
22, 2013, PHMSA obtained samples of the 29 composite cylinders 
delivered to Onyx, which included 20 pound, 2-hole cylinders, and 
discovered that the serial numbers for the sample cylinders 
corresponded to a 2-hole design classified as ``DC20 2 Hole'' in Lite 
Cylinder's master list of cylinders manufactured since 2007. There is 
no approved design drawing on file with PHMSA authorizing the 20 pound, 
2-hole design.
    PHMSA also obtained cylinders from Mesa, Arizona with a 10 pound, 
3-hole design, that were marked ``DOT-SP 14562.'' There is no approved 
design drawing on file with PHMSA authorizing a 10 pound, 3-hole 
design.
    Based on this evidence, PHMSA finds that Lite Cylinder marked, sold 
and offered for transportation unapproved cylinders in violation of 
Paragraph 7.a of DOT-SP 14562. This further demonstrates Lite 
Cylinder's pattern of making unilateral changes to its manufacturing 
process, quality control oversight, and cylinder designs without first 
seeking PHMSA's approval.

Additional Unsafe Conditions and Practices

    During the September 28, 2012 inspection, PHMSA noted several 
equipment issues related to Lite Cylinder's production process. Lite 
Cylinder had installed an alarm and automatic shutdown device to stop 
manufacturing if the hardening catalyst required to chemically weld the 
cylinder seams was not being properly added during the gluing process. 
Several Lite Cylinder employees provided statements that the alarm and 
automatic shutdown process had never functioned as designed, and 
indicated that the shutdown device had not stopped the manufacturing 
process when it should have detected insufficient hardening catalyst.
    PHMSA is also concerned about the increasing failure rate that Lite 
Cylinder's test reports indicate for DOT-SP 14562 cylinders. PHMSA's 
investigation revealed that in 2009, DOT-SP cylinders had a failure 
rate of 4%. From 2009-2012, that failure rate has doubled to 9.4%. This 
failure rate may have been even higher from October 19, 2011 to present 
if Lite Cylinder had been testing at 480 psi, as required by DOT-SP 
14562, rather than the 441 psi at which they were testing. This trend 
toward higher failure rates has given PHMSA serious concerns regarding 
the safety of cylinders manufactured by Lite Cylinder. The following 
table summarizes failure rates by year and cylinder volume:

                                    Failure Rates for DOT-SP 14562 Cylinders
----------------------------------------------------------------------------------------------------------------
                                                                  2009         2010         2011         2012
                                                               (percent)    (percent)    (percent)    (percent)
----------------------------------------------------------------------------------------------------------------
10 lb.......................................................            4            6            7            7
20 lb.......................................................            1            5           14            9
25 lb.......................................................            5            3            2          N/A
33 lb.......................................................          N/A           65           16           36
Overall.....................................................            4            7           11          9.4
----------------------------------------------------------------------------------------------------------------

    At the time of the suspension and proposal to terminate on October 
10, 2012, Lite Cylinder had approximately 1,952 cylinders that were 
manufactured and marked prior to October 9, 2012. The company requested 
permission to sell these cylinders. To evaluate the level of safety of 
the cylinders and the approximately 55,000 currently in

[[Page 34159]]

service, PHMSA developed a testing protocol (Test Plan) to determine 
whether these cylinders met the prescribed designs and the minimum 
safety level. The Test Plan mandated pressure testing of each cylinder, 
and sample ambient cycle testing and environmental cycle testing of 
cylinders from each of the manufacturing lots represented. Cylinders 
subjected to the cycle tests were then put through the hydrostatic 
pressure test to burst.
    Each cylinder was also subjected to a pneumatic pressure test at 
test pressure (1.5 x service pressure), followed by a pneumatic leak 
pressure test conducted at service pressure in a water bath. During the 
leak pressure test, leaks can be detected by bubbles leaving the 
cylinder. The leak pressure test ensures that the cylinder will not 
leak hazardous materials at the maximum charge pressure it will 
experience in service.
    Of the 1,952 cylinders that Lite Cylinder had on hand, PHMSA 
concluded that approximately 804 were not manufactured in accordance 
with the hardness ``puck test'' requirements of DOT-SP 14562 and 
excluded these from testing. Of the 1,148 remaining cylinders that Lite 
Cylinder certified as meeting the special permit requirements, 53 
leaked during the pneumatic leak pressure testing, demonstrating a 
failure rate of approximately 4.6% in violation of the requirements of 
DOT-SP 14562 and the QSM. These cylinders were previously tested during 
the manufacturing process, and Lite Cylinder certified them as meeting 
all requirements of the special permit. Therefore, the entire sample 
should have been leak-free.
    PHMSA believes that the cylinders previously sold by Lite Cylinder, 
although tested during the manufacturing process, may also exhibit 
leakage in service. These cylinders are commonly used to contain 
flammable gas. PHMSA considers the risk of fire due to leaking DOT-SP 
14562 cylinders containing flammable gas to be unacceptable. In order 
to avoid potential injury or damage, PHMSA is removing from service all 
DOT-SP 14562 cylinders.

Finding of Imminent Hazard

    Based on the foregoing, PHMSA finds that (1) Lite Cylinder marked 
and sold ``DOT-SP 14562'' cylinders that were not designed and 
manufactured in conformance with approved design drawings on file with 
PHMSA, (2) DOT-SP 14562 cylinders have been involved in unreported 
cylinder failures resulting in at least one serious injury and property 
damage, (3) Lite Cylinder has failed to conduct required testing, 
maintain quality control procedures, and exhibited an increasing 
failure rate in its manufacture of DOT-SP 14562 cylinders, (4) Lite 
Cylinder has failed to detect and condemn leaking cylinders during its 
manufacturing process and has marked and offered leaking cylinders for 
transportation in commerce. Therefore, the forgoing violations and 
unsafe conditions and practices are presenting a substantial likelihood 
of severe personal injury or a substantial endangerment to health, 
property or the environment and constitute or are causing an imminent 
hazard to the public safety.

Remedial Action

    In order to avoid any potential injury or damage, PHMSA is 
requiring the removal from service of all affected packagings. 
Effective immediately, Lite Cylinder must:
    (1) Contact all Cylinder Owners to whom affected packagings have 
been sold and inform them of the Emergency Recall Order and provide 
them the proper and necessary instruction and information for the safe 
handling and discharge of hazardous material and for the return 
shipment of cylinders no later than five business days of this Order. 
The information must include instruction that directs Cylinder Owners 
to use only qualified persons, trained in handling cylinders in 
accordance with Federal regulations, and to safely discharge, purge, 
and remove the valve from, the cylinder.
    (2) Confirm that the returned cylinders are purged and emptied.
    (3) Ensure that the purged and empty cylinders are returned to the 
manufacturer at the following address: The Lite Cylinder Company, 139 
Southeast Parkway Court, Franklin, TN 37064.
    (4) Provide by email the serial number of each returned cylinder to 
PHMSA at specialpermits@dot.gov (referencing ``Lite Cylinder'' in the 
subject line) by the close of business daily. Please note any problems 
that may have been witnessed with the cylinder (e.g. leakage, damage, 
etc.).
    (5) Permanently obliterate the special permit specification 
markings and render them incapable of holding pressure within five 
business days of possession, including those in inventory.

Information Gathering

    Any person who is aware of a failure or incident relating to any 
cylinder marked DOT-SP 14562, DOT-SP 13957, DOT-SP 13105; any cylinder 
requalified under H706; and other cylinder manufactured under M5729 is 
requested to contact PHMSA, as instructed in the Emergency Contact 
Official section below, as soon as possible. PHMSA requests information 
on all cylinders made under the foregoing special permits and 
approvals, which include 10-pound, 20-pound, 25-pound and 33-pound 
cylinders,

Rescission of this Order

    Before this order can be rescinded, Lite Cylinder must be able to 
demonstrate adequately to the Associate Administrator that you have 
taken actions to remedy the unsafe conditions and practices and that 
such actions taken have, in fact, resulted in an imminent hazard no 
longer existing. If Lite Cylinder is able to make such a demonstration, 
the Associate Administrator will issue a Rescission Order

Failure to Comply

    Any person failing to comply with this Emergency Recall Order is 
subject to civil penalties of up to $175,000 for each violation or for 
each day they are found to be in violation (49 U.S.C. 5123). A person 
violating this Emergency Recall Order is also subject to criminal 
prosecution, which may result in fines under title 18, imprisonment of 
up to ten years, or both (49 U.S.C. 5124).

Right to Review

    Any person to whom the Associate Administrator has issued an 
Emergency Recall Order is entitled to review of the order pursuant to 
49 U.S.C. 5121(d)(3) and in accordance with section 554 of the 
Administrative Procedure Act (APA), 5 U.S.C. 500 et seq. Any petition 
seeking relief must be filed within 20 calendar days of the date of 
this order (49 U.S.C. 5121(d)(3)), and include one copy addressed to 
the Chief Safety Officer (CSO) for the Pipeline and Hazardous Materials 
Safety Administration, United States Department of Transportation, 1200 
New Jersey Avenue SE., Washington DC 20590-0001 (ATTENTION: Office of 
Chief Counsel) (electronically to PHMSACHIEFCOUNSEL@DOT.GOV) and one 
copy addressed to U.S. DOT Dockets, U.S. Department of Transportation, 
1200 New Jersey Avenue SE., Room W12-140, Washington, DC 20590 (http://Regulations.gov under Docket PHMSA-2013-0123). Furthermore, a 
petition for review must state the material facts at issue which the 
petitioner believes dispute the existence of an imminent hazard and 
must include all evidence and exhibits to be considered. The petition 
must also state

[[Page 34160]]

the relief sought. Within 30 days from the date the petition for review 
is filed, the CSO must approve or deny the relief in writing; or find 
that the imminent hazard continues to exist, and extend the original 
Emergency Recall Order. In response to a petition for review, the CSO 
may grant the requested relief in whole or in part; or may order other 
relief as justice may require (including the immediate assignment of 
the case to the Office of Hearings for a formal hearing on the record).
    In order to request a formal hearing in accordance with 5 U.S.C. 
554, the petition must state that a formal hearing is requested, and 
must identify the material facts in dispute giving rise to the request 
for a hearing. A petition which requests a formal hearing must include 
an additional copy addressed to the Chief Administrative Law Judge, 
U.S. Department of Transportation, Office of Hearings, M-20, Room E12-
320, 1200 New Jersey Avenue SE., Washington, DC 20590 (FAX: (202) 366-
7536).

Emergency Contact Official

    If you have any questions concerning this Emergency Restriction/
Prohibition Order you should contact John Heneghan, Regional Director, 
at (404) 832-1140, john.heneghan@dot.gov, or 233 Peachtree Street, 
Suite 602, Atlanta, GA 30303 or Aaron Mitchell, Director Field Services 
Support, at (202) 366-4455, aaron.mitchell@dot.gov or 1200 New Jersey 
Avenue SE., Washington, DC 20590.

    Issued in Washington, DC, on May 31, 2013.
Magdy El-Sibaie,
Associate Administrator for Hazardous Materials Safety, Pipeline and 
Hazardous Materials Safety Administration.
[FR Doc. 2013-13354 Filed 6-5-13; 8:45 am]
BILLING CODE 4910-60-P