Commerce in Explosives (95R-036P)

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.treas.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