Commerce in Explosives (95R-036P)

[Federal Register: August 24, 1998 (Volume 63, Number 163)]

[Rules and Regulations]               

[Page 44999-45004]

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[DOCID:fr24au98-5]





[[Page 44999]]



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DEPARTMENT OF THE TREASURY



Bureau of Alcohol, Tobacco and Firearms



27 CFR Part 55



[T.D. ATF-400; Ref: Notice No. 841]

RIN 1512-AB55



 

Commerce in Explosives (95R-036P)



AGENCY: Bureau of Alcohol, Tobacco and Firearms (ATF), Department of 

the Treasury.



ACTION: Final rule, Treasury decision.



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SUMMARY: This final rule amends regulations to clarify the meanings of 

terms, increase license and permit fees, eliminate duplication in 

licensing, relax the licensing requirements for on-site manufacturers, 

implement a storage notification requirement for manufacturers and 

other storers of explosives, update the theft/loss hotline number for 

reporting thefts or losses of explosives, and make minor modifications 

to regulations on storage.



DATES: This final rule is effective December 22, 1998.



FOR FURTHER INFORMATION CONTACT: Mark D. Waller, ATF Specialist, Arson 

and Explosives Programs Division, 650 Massachusetts Avenue, NW., 

Washington, DC 20226, (202) 927-8310.



SUPPLEMENTARY INFORMATION:



Background



    The Bureau of Alcohol, Tobacco and Firearms (ARF) is concerned with 

the safety of emergency personnel responding to fires on sites where 

explosives are stored. ATF is amending the regulations in 27 CFR Part 

55 to require any person who stores explosive materials to notify local 

fire departments of the locations where explosives are stored. The 

regulations are also being amended to clarify the meaning of terms; 

modify the American Table of Distances to conform with the Institute of 

Makers of Explosives (IME) latest revisions; update and incorporate 

references and definitions to reflect current government and industry 

standards; facilitate transition to the United Nations explosives 

classification codes; allow on-site manufacturers to operate under one 

manufacturer's license; and extend the term for original and renewal 

licenses and permits from one year to three years.



Notice of Proposed Rulemaking



    On October 15, 1996, ATF published in the Federal Register a notice 

of proposed rulemaking (Notice No. 841, 61 FR 53688), with a 90-day 

comment period. The comment period closed on January 13, 1997. This 

notice proposed the following amendments to the regulations:

    (1) Require anyone storing explosive materials to notify local law 

enforcement officials and fire departments of the type, magazine 

capacity, and location of each site where explosive materials are 

stored.

    (2) Increase the license and permit fees to $200 and $100 and 

renewals to $100 and $50, respectively.

    (3) Eliminate the manufacturer-limited license.

    (4) Amend the definitions of ``fireworks,'' ``highway,'' and 

``salute,'' and change the names of ``common fireworks'' to ``consumer 

fireworks'' and ``special fireworks'' to ``display fireworks'' and 

amend their definitions.

    (5) Amend the definition of ``fireworks nonprocess building'' to 

eliminate the unnecessary reference to fireworks plant warehouse.

    (6) Substantially adopt the American Table of Distances as revised 

by the Institute of Makers of Explosives.

    (7) Update the ATF hotline for reporting thefts or losses of 

explosive materials.

    ATF received 426 written comments in response to Notice No. 841. 

Comments were submitted by several major model rocketry industry groups 

such as the National Association of Rocketry (NAR) and Tripoli Rocketry 

Association (Tripoli), and their members. Comments were also submitted 

by fireworks hobbyists, small display fireworks operators, major 

explosives industry safety associations and professional organizations 

such as the Institute of Makers of Explosives (IME), the American 

Pyrotechnic Association (APA), the National Fire Protection Association 

(NFPA), and the International Association of Fire Fighters (IAFF). 

Comments were also received from concerned citizens.



Discussion of Comments--Final Rule



Subpart B--Definitions



    ATF received three comments relating to proposals to amend the 

definitions in 27 CFR 55.11. Notice No. 841 proposed defining the term 

``highway'' as ``any public street, public alley, or public road.'' 

With regard to the definition of ``highway,'' a number of commenters 

emphasized the importance of defining highway as any public road, 

public street, or public alley, and stressed that such roads should not 

include private roads on mine property, manufacturing sites, or 

construction projects. The commenters stated that the tables of 

distances set forth in the regulations are intended to apply only to 

roads financed, constructed, or maintained by government entities. 

Other comments also strongly urged ATF to clarify that the definition 

of ``highway'' includes a public funding element, so as to avoid posing 

undue burden on the explosives industry in placing magazines at minimum 

separation distances from private roads.

    In the interest of ATF's statutory obligation to consider public 

safety, if a privately financed, constructed, or maintained road is 

regularly and openly traveled by the general public, ATF may determine 

that the road is ``public'' so that it is subject to the table of 

distance requirements. This interpretation allows ATF to maintain the 

flexibility to determine on a case-by-case basis whether a private road 

is used by the general public in a manner that warrants protection by 

the table of distance requirements. Accordingly, ATF is revising the 

definition of ``highway'' proposed in Notice No. 841 to include this 

interpretation.

    ATF received two comments in response to proposals to amend various 

fireworks definitions. One commenter recommends that ATF eliminate 

confusion as to which table of distances, if any, applies to fireworks 

plant warehouses and fireworks and nonprocess buildings. The commenter 

recommends that the definition of fireworks plant warehouse be amended 

to state that no work of any kind shall be performed in the warehouse 

except for the placement in or removal of fireworks items from storage. 

The commenter also recommends that the definition of ``fireworks 

nonprocess building'' be amended to eliminate ``fireworks plant 

warehouse'' from its definition. Such warehouse would, therefore, not 

be subject to the separation distances in sections 55.222 and 55.223. 

The final rule adopts both these comments.

    The commenter also urges ATF to consider incorporating NFPA 1124, 

Code for the Manufacture, Transportation, and Storage of Fireworks into 

27 CFR Part 55, by reference. Further, the NFPA, which represents over 

65,000 individuals and 115 national organizations including individuals 

from fire departments, health care facilities, and Federal, State, and 

local governments, makes the same suggestion. The NFPA recommends that 

ATF adopt a variety of its codes and standards by reference where 

applicable, such as NFPA 495, Explosives Materials Code, NFPA 498, Safe 

Havens and Interchange Lots, NFPA 1123, Code for Fireworks Display, 

NFPA 1125, Code for the Manufacture



[[Page 45000]]



of Model and High Power Rocket Motors, NFPA 1126, Standard for the Use 

of Pyrotechnics before a Proximate Audience, and NFPA 1127, Code for 

High Power Rocketry.

    Since the standards set forth in these industry codes were not part 

of the proposals set forth in Notice No. 841, ATF is not adopting this 

comment at this time. However, ATF will consider including these 

standards in a separate notice of proposed rulemaking to be published 

at a future date.

    AFT received one comment on its proposals to amend the definitions 

of ``common'' and ``special'' fireworks by using specific United 

Nations Organization (UN) identification numbers. The commenter feels 

that the incorporation of UN numbers in conjunction with references to 

U.S. Consumer Product Safety Commission (CPSC) and U.S. Department of 

Transportation (DOT) offers little improvement over the current 

definitions.

    As an alternative, the commenter recommends that ATF consider 

definitions and classifications based on amounts and what stage the 

compositions, components, and semi-finished fireworks are in as they 

move through the manufacturing process. The commenter recommends that 

ATF provide examples distinguishing size, construction, composition, 

effect, and labeling for purposes of defining applicability of the 

regulations. ATF will not be adopting this suggestion at this time as 

it would not enhance the effective administration of the Federal 

explosives regulations.

    It has also been recommended that AFT adopt the American 

Pyrotechnic Association's (APA) Standard 87-1 with respect to defining 

and classifying fireworks for licensing and storage determinations, in 

addition to the appropriate NFPA standards and codes. ATF will consider 

incorporating these standards into the regulations in a separate notice 

of proposed rulemaking.

    In the course of examining the U.S. Department of Transportation 

(DOT) regulations, ATF determined that certain items do not fall within 

the DOT definition of consumer fireworks in terms of their suitability 

for use by the general public. Certain items present a minor explosion 

hazard and are regulated by DOT in the same manner as consumer 

fireworks. DOT classifies these articles as ``articles, pyrotechnic for 

technical purposes.'' Although it is clear that these items should be 

exempt from ATF licensing, storage, and recordkeeping requirements, 

they are intended to be used by professional pyrotechnics operators 

only, and not the general public. In Notice No. 841, ATF proposed that 

articles pyrotechnic (UN0431 and UN0432) be included in the definition 

of ``consumer fireworks.''

    In the interest of public safety, ATF has determined that a 

separate definition is needed for articles pyrotechnic, to prevent the 

general public from considering these items as suitable for other than 

professional use only. Accordingly, ATF has amended the regulations to 

clarify that the manufacture of articles pyrotechnic is regulated by 

ATF. However, finished articles pyrotechnic, though not suitable for 

general consumer use, are not subject to ATF importation, licensing, 

storage, or recordkeeping requirements. This final rule amends 

regulations in 27 CFR 55.141 to provide this exemption.

    Information regarding fused setpieces is being added to the 

definitions of ``consumer fireworks'' and ``special fireworks'' to help 

clarify their classification.



Subpart D--Licenses and Permits



    Four hundred and seventeen commenters, representing 98 percent of 

the total comments received, strongly opposed the licensing fee 

increase. ATF proposed to raise the Federal explosives users permit fee 

from $20 to 100. The majority of this group of commenters were 

affiliated with one or more of the major model rocketry associations 

such as NAR or Tripoli, whose members typically hold a Type 34 permit, 

users of low explosives.

    As an alternative to the fee increase, this group proposed that ATF 

designate a special type of hobby permit for exclusive use by high 

power model rocket hobbyists which would have a lower fee than that 

proposed by Notice No. 841. In response to these and other similar 

comments, ATF will propose in a separate notice of proposed rulemaking 

to create a separate definition and a lower permit fee for all 

``hobbyists'' who receive, transport or ship low explosive materials in 

the pursuit of recreational or sporting activities.

    No other comments were received in opposition to the proposal to 

raise license and permit fees. Statutory authority allows ATF to set 

fees up to $200 for a license or permit. Accordingly, upon the 

effective date of this final rule, the fee to engage in the business of 

importing, manufacturing, or dealing in explosive materials increases 

from $50 to $200; from $20 to $100 for a users permit; and from $2 to 

$75 for a user-limited permit.

    In addition, in conjunction with the fee increases, this final rule 

increases the term of the original license or permit from one year to 

three years.

    Two commenters expressed opposition to the proposal to eliminate 

the category of ``manufacturer-limited'' license. ATF bases its 

elimination of this license on the fact that no such licenses have been 

issued in the last 4 years and that the activities covered under the 

manufacturers-limited license are generally of an ongoing nature and 

thus would require a regular manufacturer's license. Accordingly, this 

final rule eliminates the manufacturer-limited license, as proposed in 

Notice No. 841.



Subpart K--Storage



Notification of the ``Authority Having Jurisdiction for Fire Safety'' 

of Explosives Storage Sites

    Overall, commenters favored a notification requirement to the 

appropriate local authority regarding the location of sites where 

explosives are stored. However, approximately 200 commenters opposed a 

sweeping requirement to notify all local law enforcement officials of 

storage. These commenters suggest that notification be limited to local 

emergency response personnel only, as the term ``local law enforcement 

official'' could be interpreted broadly enough to include individuals 

who may not necessarily have a need to know of such storage. This final 

rule clarifies that notification shall be made specifically to the 

``authority having jurisdiction for fire safety,'' defined as the fire 

department having jurisdiction for the area in which explosive 

materials are to be manufactured or stored. ATF will make available a 

listing of all State Fire Marshals to assist the industry in 

determining the Authority Having Jurisdiction for Fire Safety for a 

particular area. The list will also be posted on the ATF web page at 

www.atf.gov.

    ATF received one comment opposing the revision of section 55.218 by 

reducing the table of distances for the storage of explosive materials 

from 2 pounds to 0 pounds on the basis that it would require persons 

handling less than 2 pounds of fireworks to conform with overly strict 

separation distances. The commenter proposes that ATF should instead 

distinguish section 55.218, Table of distances for the storage of 

explosive materials, from section 55.219, Table of distances for 

storage of low explosives, more clearly to show that section 55.218 

covers high explosives and section 55.219 covers low explosives only.



[[Page 45001]]



    ATF believes that section 55.206 adequately clarifies which table 

of distances to use for the storage of explosive materials, including 

when to use the table found at section 55.224 for the storage of 

display fireworks. Accordingly, we are not adopting this comment.

    ATF is amending the table of distances in Secs. 55.222 and 55.223 

to make it clear that, while consumer fireworks or articles pyrotechnic 

in a finished state are not subject to regulation, explosive materials 

used to manufacture or assemble such fireworks or articles are subject 

to regulation. Thus, fireworks process buildings where consumer 

fireworks or articles pyrotechnic are being processed shall meet these 

requirements.



Miscellaneous



    One commenter addressed a note to section 55.224, the table of 

distances for the storage of display fireworks. Note 3 of the table of 

distances in section 55.224 allows the distances in the table to be 

halved for magazines which were in use prior to March 7, 1990, if 

properly barricaded. The commenter requests that ATF clarify that 

distances between grandfathered magazines may also be halved if 

properly barricaded.

    ATF concurs that Note 3 in the table of distances in section 55.224 

was also intended to apply to the distances between magazines which 

were in use prior to March 7, 1990. Accordingly, this final rule amends 

section 55.224 to apply Note No. 3 to the separation distances between 

magazines.

    A technical amendment is being made to Secs. 55.45(b) and 55.46(b) 

to specify the application used for user-limited special fireworks 

permits, ATF Form 5400.21. In addition, a technical amendment to 

Sec. 55.63 renames the section as ``Magazines acquired or constructed 

after permit or license is issued.'' This change is necessary to 

clarify the intent of this section which is to account for explosives 

storage facilities constructed or otherwise acquired after the license 

or permit is issued.



Executive Order 12866



    It has been determined that this final rule is not a significant 

regulatory action as defined in E.O. 12866. Therefore, a Regulatory 

Assessment is not required.



Regulatory Flexibility Act



    It is hereby certified that these final regulations will not have a 

significant economic impact on a substantial number of small entities. 

Accordingly, a regulatory flexibility analysis is not required. These 

final regulations provide clarification and consistency with industry 

terminology. In addition, the increases in license and permit fees are 

within the maximum amounts provided by the statute. Further, the burden 

placed on licensees and permittees for the collection and disclosure of 

explosives manufacture and storage information to the local authority 

having jurisdiction for explosives or fire safety is minimal.



Paperwork Reduction Act



    The collection of information contained in this final regulation 

has been reviewed and approved by the Office of Management and Budget 

in accordance with the Paperwork Reduction Act (44 U.S.C. 3507(d)) 

under control number 1512-0536. An agency may not conduct or sponsor, 

and a person is not required to respond to, a collection of information 

unless it displays a valid control number assigned by the Office of 

Management and Budget. The collection of information in this regulation 

is in 27 CFR 55.201(f). This information is required to inform fire 

departments having jurisdiction over sites where explosives are stored 

or manufactured so that they can protect emergency response personnel 

called to fire scenes where explosives may be stored. The likely 

respondents are Federal licensees and permittees who store or 

manufacture explosive materials. The estimated total annual reporting 

burden per respondent is 90 minutes. The estimated number of 

respondents is 10,057. The estimated annual frequency of responses is 

2.

    Comments concerning the accuracy of this burden estimate and 

suggestions for reducing this burden should be directed to the Office 

of Management and Budget, Attention: Desk Officer for the Department of 

Treasury, Bureau of Alcohol, Tobacco and Firearms, Office of 

Information and Regulatory Affairs, Washington, D.C., 20503, with 

copies to the Chief, Document Services Branch, Room 3450, Bureau of 

Alcohol, Tobacco and Firearms, 650 Massachusetts Avenue, N.W., 

Washington, D.C., 20226.



Disclosure



    Copies of the notice of proposed rulemaking, the written comments, 

and this final rule will be available for public inspection during 

normal business hours at: ATF Public Reading Room, Room 6480, 650 

Massachusetts Avenue, NW., Washington, DC.



Drafting Information



    The author of this document is Mark D. Waller, Arson and Explosives 

Programs Division, Bureau of Alcohol, Tobacco and Firearms.



List of Subjects in 27 CFR Part 55



    Administrative practice and procedure, Authority delegations, 

Customs duties and inspection, Explosives, Hazardous materials, 

Imports, Penalties, Reporting and recordkeeping requirements, Safety, 

Security measures, Seizures and forfeitures, Transportation, and 

Warehouses.



Authority and Issuance



    For the reasons discussed in the preamble, ATF amends 27 CFR Part 

55 as follows:



PART 55--COMMERCE IN EXPLOSIVES



    Paragraph 1. The authority citation for 27 CFR Part 55 continues to 

read as follows:



    Authority: 18 U.S.C. 847.



    Par. 2. Section 55.11 is amended by removing the definitions for 

the terms ``Common fireworks,'' ``Licensed manufacturer-limited,'' 

``Manufacturer limited,'' and ``Special fireworks;'' by revising the 

definitions for the terms ``Bulk salutes,'' ``Fireworks,'' ``Fireworks 

nonprocess building,'' ``Fireworks plant warehouse,'' ``Fireworks 

shipping building,'' ``Highway,'' and ``Salute;'' and by adding new 

definitions for the terms ``Articles pyrotechnic,'' ``Authority having 

jurisdiction for fire safety,'' ``Consumer fireworks,'' and ``Display 

fireworks'' to read as follows:





Sec. 55.11  Meaning of terms.



* * * * *

    Articles pyrotechnic. Pyrotechnic devices for professional use 

similar to consumer fireworks in chemical composition and construction 

but not intended for consumer use. Such articles meeting the weight 

limits for consumer fireworks but not labeled as such and classified by 

U.S. Department of Transportation regulations in 49 CFR 172.101 as 

UN0431 or UN0432.

* * * * *

    Authority having jurisdiction for fire safety. The fire department 

having jurisdiction over sites where explosives are manufactured or 

stored.

* * * * *

    Bulk salutes. Salute components prior to final assembly into aerial 

shells, and finished salute shells held separately prior to being 

packed with other types of display fireworks.

* * * * *

    Consumer fireworks. Any small firework device designed to produce



[[Page 45002]]



visible effects by combustion and which must comply with the 

construction, chemical composition, and labeling regulations of the 

U.S. Consumer Product Safety Commission, as set forth in title 16, Code 

of Federal Regulations, parts 1500 and 1507. Some small devices 

designed to produce audible effects are included, such as whistling 

devices, ground devices containing 50 mg or less of explosive 

materials, and aerial devices containing 130 mg or less of explosive 

materials. Consumer fireworks are classified as fireworks UN0336, and 

UN0337 by the U.S. Department of Transportation at 49 CFR 172.101. This 

term does not include fused setpieces containing components which 

together exceed 50 mg of salute powder.

* * * * *

    Display fireworks. Large fireworks designed primarily to produce 

visible or audible effects by combustion, deflagration, or detonation. 

This term includes, but is not limited to, salutes containing more than 

2 grains (130 mg) of explosive materials, aerial shells containing more 

than 40 grams of pyrotechnic compositions, and other display pieces 

which exceed the limits of explosive materials for classification as 

``consumer fireworks.'' Display fireworks are classified as fireworks 

UN0333, UN0334 or UN0335 by the U.S. Department of Transportation at 49 

CFR 172.101. This term also includes fused setpieces containing 

components which together exceed 50 mg of salute powder.

* * * * *

    Fireworks. Any composition or device designed to produce a visible 

or an audible effect by combustion, deflagration, or detonation, and 

which meets the definition of ``consumer fireworks'' or ``display 

fireworks'' as defined by this section.

* * * * *

    Fireworks nonprocess building. Any office building or other 

building or area in a fireworks plant where no fireworks, pyrotechnic 

compositions or explosive materials are processed or stored.

* * * * *

    Fireworks plant warehouse. Any building or structure used 

exclusively for the storage of materials which are neither explosive 

materials nor pyrotechnic compositions used to manufacture or assemble 

fireworks.

* * * * *

    Fireworks shipping building. A building used for the packing of 

assorted display fireworks into shipping cartons for individual public 

displays and for the loading of packaged displays for shipment to 

purchasers.

* * * * *

    Highway. Any public street, public alley, or public road, including 

a privately financed, constructed, or maintained road that is regularly 

and openly traveled by the general public.

* * * * *

    Salute. An aerial shell, classified as a display firework, that 

contains a charge of flash powder and is designed to produce a flash of 

light and a loud report as the pyrotechnic effect.

* * * * *

    Par. 3. Section 55.30 is amended by removing ``800-424-9555'' in 

paragraphs (a), (b), and the introductory text of paragraph (d) and 

adding in its place ``1-800-800-3855'' and by revising paragraphs 

(c)(4) and (d)(3) to read as follows:





Sec. 55.30  Reporting theft or loss of explosive materials.



* * * * *

    (c) * * *

    (4) Description (dynamite, blasting agents, detonators, etc.) and 

United Nations (UN) identification number, hazard division number, and 

classification letter, e.g., 1.1D, as classified by the U.S. Department 

of Transportation at 49 CFR 172.101 and 173.52.

    (d) * * *

    (3) Description (United Nations (UN) identification number, hazard 

division number, and classification letter, e.g., 1.1D) as classified 

by the U.S. Department of Transportation at 49 CFR 172.101 and 173.52.

    Par. 4. Section 55.41(b)(2) is revised to read as follows:





Sec. 55.41  General.



* * * * *

    (b) * * *

    (2) A separate license shall not be required of a licensed 

manufacturer with respect to his on-site manufacturing.

* * * * *

    Par. 5. Section 55.42 is revised to read as follows:





Sec. 55.42  License fees.



    (a) Each applicant shall pay a fee for obtaining a three year 

license, a separate fee being required for each business premises, as 

follows:

    (1) Manufacturer--$200.

    (2) Importer--$200.

    (3) Dealer--$200.

    (b) Each applicant for a renewal of a license shall pay a fee for a 

three year license as follows:

    (1) Manufacturer--$100.

    (2) Importer--$100.

    (3) Dealer--$100.

    Par. 6. Section 55.43 is revised to read as follows:





Sec. 55.43  Permit fees.



    (a) Each applicant shall pay a fee for obtaining a permit as 

follows:

    (1) User--$100 for a three year permit.

    (2) User-limited (nonrenewable)--$75.

    (b) Each applicant for renewal of a user permit shall pay a fee of 

$50 for a three year permit.





Sec. 55.45  [Amended]



    Par. 7. Section 55.45(b) is amended by adding ``or Permit, User 

Limited Special Fireworks, ATF F 5400.21'' after ``ATF F 5400.16'' in 

the first sentence and by adding ``and ATF F 5400.21'' after ``ATF F 

5400.16'' in the last sentence.

    Par. 8. Section 55.46(b) is revised to read as follows:





Sec. 55.46  Renewal of license or permit.



* * * * *

    (b) A user-limited permit is not renewable and is valid for a 

single purchase transaction. Applications for all user-limited permits 

must be filed on ATF F 5400.16 or ATF F 5400.21, as required by 

Sec. 55.45.

    Par. 9. Section 55.51 is revised to read as follows:





Sec. 55.51  Duration of license or permit.



    An original license or permit is issued for a period of three 

years. A renewal license or permit is issued for a period of three 

years. However, a user-limited permit is valid only for a single 

purchase transaction.

    Par. 10. Section 55.63 is amended by revising the heading of 

paragraph (d) to read as follows:





Sec. 55.63  Explosives magazine changes.



* * * * *

    (d) Magazines acquired or constructed after permit or license is 

issued. * * *

    Par. 11. Section 55.102 is revised to read as follows:





Sec. 55.102  Authorized operations by permittees.



    (a) In general. A permit issued under this part does not authorize 

the permittee to engage in the business of manufacturing, importing, or 

dealing in explosive materials. Accordingly, if a permittee's 

operations bring him within the definition of manufacturer, importer, 

or dealer under this part, he shall qualify for the appropriate 

license.

    (b) Distributions of surplus stocks. Permittees are not authorized 

to engage in the business of sale or distribution of explosive 

materials. However, permittees may dispose of surplus stocks of 

explosive materials to other licensees or permittees in accordance



[[Page 45003]]



with Sec. 55.103, and to nonlicensees or to nonpermittees in accordance 

with Sec. 55.105(d).

    Par. 12. Section 55.103 (a)(1) and (2) is revised to read as 

follows:





Sec. 55.103  Transactions among licensees/permittees.



    (a) General. (1) A licensed importer, licensed manufacturer or 

licensed dealer selling or otherwise distributing explosive materials 

(or a permittee disposing of surplus stock to a licensee or another 

permittee) who has the certified information required by this section 

may sell or distribute explosive materials to a licensee or permittee 

for not more than 45 days following the expiration date of the 

distributee's license or permit, unless the distributor knows or has 

reason to believe that the distributee's authority to continue business 

or operations under this part has been terminated.

    (2) A licensed importer, licensed manufacturer or licensed dealer 

selling or otherwise distributing explosive materials (or a permittee 

disposing of surplus stock to another licensee or permittee) shall 

verify the license or permit status of the distributee prior to the 

release of explosive materials ordered, as required by this section.

* * * * *

    Par. 13. Section 55.105(d) is revised to read as follows:





Sec. 55.105  Distributions to nonlicenses and nonpermittees.



* * * * *

    (d) A permittee may dispose of surplus stocks of explosive 

materials to a nonlicensee or nonpermittee if the nonlicensee or 

nonpermittee is a resident of the same State in which the permittee's 

business premises or operations are located, or is a resident of a 

State contiguous to the State in which the permittee's place of 

business or operations are located, and if the requirements of 

paragraphs (b), (c), (e) and (f) of this section are fully met.

* * * * *





Sec. 55.122  [Amended]



    Par. 14. Section 55.122 is amended by removing ``special 

fireworks'' wherever it appears in paragraphs (b)(4), (b)(5), (c)(4), 

and (c)(5) and adding in its place ``display fireworks'', and by 

removing ``(sf)'' in paragraphs (b)(5) and (c)(5) and adding in its 

place ``(df)''.





Sec. 55.123  [Amended]



    Par. 15. Section 55.123 is amended by removing ``special 

fireworks'' wherever it appears in paragraphs (b)(3), (b)(4), (c)(4), 

(c)(5), and (d)(3), and adding in its place ``display fireworks'', and 

by removing ``(sf)'' in paragraphs (b)(4), (c)(5), and (d)(3) and 

adding in its place ``(df)''.





Sec. 55.124  [Amended]



    Par. 16. Section 55.124 is amended by removing ``special 

fireworks'' wherever it appears in paragraphs (b)(4), (b)(5), (c)(4), 

and (c)(5) and adding in its place ``display fireworks'', and by 

removing ``(sf)'' in paragraphs (b)(5) and (c)(5) and adding in its 

place ``(df)''.

    Par. 17. Section 55.125 is amended by revising the section heading 

and the introductory text of paragraph (a); by removing ``license or'' 

in paragraph (a)(1) and ``licensee or'' in the third sentence of 

paragraph (a); by removing paragraph (b) and redesignating paragraphs 

(c), (d), (e), and (f) as (b), (c), (d), and (e); and by revising 

redesignated paragraphs (b)(4) and (b)(5) to read as follows:





Sec. 55.125  Records maintained by permittees.



    (a) Each permittee shall take true and accurate physical 

inventories which shall include all explosive materials on hand 

required to be accounted for in the records kept under this part. The 

permittee shall take a special inventory * * *

    (b) * * *

    (4) Quantity (applicable quantity units, such as pounds of 

explosives, number of detonators, number of display fireworks, etc.).

    (5) Description (dynamite (dyn), blasting agents (ba), detonators 

(det), display fireworks (df), (etc.) and size (length and diameter or 

diameter only of display fireworks)).

* * * * *

    Par. 18. Section 55.127 is amended by revising the first sentence 

and by removing ``special fireworks'' wherever it appears and adding in 

its place ``display fireworks'' to read as follows:





Sec. 55.127  Daily summary of magazine transactions.



    In taking the inventory required by Sec. Sec. 55.122, 55.123, 

55.124, and 55.125, a licensee or permittee shall enter the inventory 

in a record of daily summary transactions to be kept at each magazine 

of an approved storage facility; however, these records may be kept at 

one central location on the business premises if separate records of 

daily transactions are kept for each magazine. * * *

    Par. 19. Section 55.141(a)(7) is revised to read as follows:





Sec. 55.141  Exemptions.



    (a) * * *

    (7) The importation, distribution, and storage of fireworks 

classified as UN0336, UN0337, UN0431, or UN0432 explosives by the U.S. 

Department of Transportation at 49 CFR 172.101 and generally known as 

``consumer fireworks'' or ``articles pyrotechnic.''

* * * * *





Sec. 55.163  [Amended]



    Par. 20. Section 55.163 is amended by removing ``licensed 

manufacturer-limited,''.

    Par. 21. Section 55.201 is amended by revising paragraph (d), by 

adding paragraph (f), and by adding a parenthetical text at the end of 

the section to read as follows:





Sec. 55.201  General.



* * * * *

    (d) The regulations set forth in Sec. Sec. 55.221 through 55.224 

pertain to the storage of display fireworks, pyrotechnic compositions, 

and explosive materials used in assembling fireworks and articles 

pyrotechnic.

* * * * *

    (f) Any person who stores explosive materials shall notify the 

authority having jurisdiction for fire safety in the locality in which 

the explosive materials are being stored of the type, magazine 

capacity, and location of each site where such explosive materials are 

stored. Such notification shall be made orally before the end of the 

day on which storage of the explosive materials commenced and in 

writing within 48 hours from the time such storage commenced.

    (Paragraph (f) approved by the Office of Management and Budget 

under control number 1512-0536)

    Par. 22. Section 55.202(b) is revised to read as follows:





Sec. 55.202  Classes of explosive materials.



* * * * *

    (b) Low explosives. Explosive materials which can be caused to 

deflagrate when confined (for example, black powder, safety fuses, 

igniters, igniter cords, fuse lighters, and ``display fireworks'' 

classified as UN0333, UN0334, or UN0335 by the U.S. Department of 

Transportation regulations at 49 CFR 172.101, except for bulk salutes).

* * * * *





Sec. 55.206  [Amended]



    Par. 23. Section 55.206(b) is amended by removing ``special 

fireworks'' and adding in its place ``display fireworks''.

    Par. 24. Section 55.218 is amended by removing ``Public highways 

glass A to D'' where it appears in the table heading, and adding in its 

place ``Public highways with traffic volume 3000 or less vehicles/

day''; by removing the



[[Page 45004]]



number ``2'' where it appears as the first entry in the column titled 

``Pounds over'' and adding in its place the number ``0;'' and by 

revising the source citation at the end of the table to read as 

follows:





Sec. 55.218  Table of distances for storage of explosive materials.



* * * * *

    Table: American Table of Distances for Storage of Explosives 

(December 1910), as Revised and Approved by the Institute of Makers of 

Explosives-July, 1991.

    Par. 25. Section 55.221 is amended by revising the section heading 

and paragraphs (a) and (d) to read as follows:





Sec. 55.221  Requirements for display fireworks, pyrotechnic 

compositions, and explosive materials used in assembling fireworks or 

articles pyrotechnic.



    (a) Display fireworks, pyrotechnic compositions, and explosive 

materials used to assemble fireworks and articles pyrotechnic shall be 

stored at all times as required by this Subpart unless they are in the 

process of manufacture, assembly, packaging, or are being transported.

* * * * *

    (d) All dry explosive powders and mixtures, partially assembled 

display fireworks, and finished display fireworks shall be removed from 

fireworks process buildings at the conclusion of a day's operations and 

placed in approved magazines.

    Par. 26. Section 55.222 is amended by removing ``special 

fireworks'' wherever it appears and adding in its place ``display 

fireworks''; by removing ``common fireworks'' wherever it appears and 

adding in its place ``consumer fireworks''; and by revising footnote 3 

at the end of the table to read as follows:





Sec. 55.222  Table of distances between fireworks process buildings and 

between fireworks process and fireworks nonprocess buildings.



* * * * *

    \3\ While consumer fireworks or articles pyrotechnic in a 

finished state are not subject to regulation, explosive materials 

used to manufacture or assemble such fireworks or articles are 

subject to regulation. Thus, fireworks process buildings where 

consumer fireworks or articles pyrotechnic are being processed shall 

meet these requirements.

* * * * *

    Par. 27. Section 55.223 is amended by revising the title heading of 

the table; by removing ``special fireworks'' in the table heading and 

adding in its place ``display fireworks''; by removing ``common 

fireworks'' in the table heading and adding in its place ``consumer 

fireworks''; by revising footnote 2 and adding a new footnote 5 at the 

end of the table to read as follows:





Sec. 55.223  Table of distances between fireworks process buildings and 

other specified areas.



    Distance from Passenger Railways, Public Highways, Fireworks Plant 

Buildings used to Store Consumer Fireworks and Articles Pyrotechnic, 

Magazines and Fireworks Shipping Buildings, and Inhabited Buildings. 

\3\ \4\ \5\

* * * * *

    \2\ While consumer fireworks or articles pyrotechnic in a 

finished state are not subject to regulation, explosive materials 

used to manufacture or assemble such fireworks or articles are 

subject to regulation. Thus, fireworks process buildings where 

consumer fireworks or articles pyrotechnic are being processed shall 

meet these requirements.

    \3\ This table does not apply to the separation distances 

between fireworks process buildings (see Sec. 55.222) and between 

magazines (Secs. 55.218 and 55.224).

    \4\ The distances in this table apply with or without artificial 

or natural barricades or screen barricades. However, the use of 

barricades is highly recommended.

    \5\ No work of any kind, except to place or move items other 

than explosive materials from storage, shall be conducted in any 

building designated as a warehouse. A fireworks plant warehouse is 

not subject to Sec. 55.222 or this section, tables of distances.





Sec. 55.224  [Amended]



    Par. 28. Section 55.224 is amended by removing ``special 

fireworks'' wherever it appears and adding in its place ``display 

fireworks'', and by adding footnote reference ``3'' after ``2'' in the 

title heading for the third column of the table.



    Signed: May 28, 1998.

John W. Magaw,

Director.

    Approved: July 14, 1998.

John P. Simpson,

Deputy Assistant Secretary (Regulatory, Tariff, and Trade Enforcement).

[FR Doc. 98-21867 Filed 8-21-98; 8:45 am]

BILLING CODE 4810-31-M