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SAVAGE <br /> office where order paperwork is processed and they are directed to the designated railcar for transfer of <br /> the material, or (2) if the nature of the product being transloaded does not require a light/tare weight <br /> (e.g.fuels that are metered into trucks instead of weighed into trucks)the driver reports to Savage's office <br /> where order paperwork is processed and they are directed to the designated railcar for transfer of the <br /> material. Savage team members meet the truck driver at the designated railcar for the transfer, confirm <br /> the order and quantity, and complete the transfer of the product from the railcar to the trailer using a <br /> mobile rack (See Figure 3). At the conclusion of the transfer, the trailer is weighed for gross and net <br /> weights (if applicable), the driver is issued a bill of lading, and they depart to their destination to deliver <br /> the product to the customer. <br /> The actual transfer of a single truckload of a bulk product from a railcar to a truck takes on average about <br /> one hour. Savage currently transfers an average of ten truckloads of bulk products per day (total <br /> truckloads for all products combined), however, we see this increasing in the months ahead. <br /> REGULATORY DISCUSSION <br /> Savage's position is that the railcars and trucks involved in the transportation of petroleum products that <br /> pass through our facility are solely regulated by the DOT. Following are some references that support this <br /> position: <br /> 1971 Memorandum of Understanding between DOT and EPA - Federal Register, Volume 36, No. 244 <br /> 12/18/1971 (See Attachment 1) <br /> This document distinguishes between "non-transportation—related onshore and offshore facilities" and <br /> "transportation-related onshore and offshore facilities." Non-transportation related facilities that exceed <br /> the SPCC storage threshold are generally subject to SPCC regulations while transportation related facilities <br /> are not. <br /> Section II(2)(D) defines "transportation related onshore and offshore facilities" as: <br /> "highway vehicles and railroad cars which are used for the transport of oil in Interstate or <br /> intrastate commerce and rites-of-way on which they operate. Excluded are highway <br /> vehicles and railroad cars and motive power used exclusively within the confines of a <br /> non transportation related facility or terminal facility and which are not intended for use <br /> in Interstate or intrastate commerce." <br /> Savage considers the Stockton facility as a transportation related facility that provides a transportation <br /> related service that transfers petroleum products from a regional mode of transport(rail)to a local mode <br /> of transportation for delivery to the end user(trucks). <br /> SPCC Guidance for Regional Inspectors, EPA Office of Emergency Management—December of 2013 <br /> This document provides guidance to EPA inspectors, to owners and operators of facilities that may be <br /> subject to the requirements of the SPCC rule (40 CFR Part 112), and to the general public on how EPA <br /> intends the SPCC rule to be implemented. The guidance is designed to facilitate nationally-consistent <br /> implementation of the SPCC rule. <br /> Savage Services Corporation 0 901 W. Legacy Center Way 0 Midvale, Utah 84047 0 801-944-6600 0 www.savageservices.com <br />