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In the matter of                                                                
Peabody Coal Company
Hawthorn Mine
I.D. No. 12-00326 .
Petition for Modification


Docket No. M-96-011-C


Date Issued: 04/24/1997

PROPOSED DECISION AND ORDER

On February 13, 1996, a petition was filed seeking a modification of the application of 30 CFR 77.1304(a) to Petitioner's Hawthorn Mine, located in Greene County, Indiana. The Petitioner alleges that the alternate method outlined in the petition will at all times guarantee no less than the same measure of protection afforded by the standard.

The Petitioner proposes to collect used petroleum-based lubricating oils from the Hawthorn Mine's equipment maintenance. The used oil would be filtered, tested and stored at a facility at the mine. The filtered, used oil (recycled oil), would be blended with No. 2 diesel fuel. The blended oil would be used to sensitize ammonium nitrate prill. The blended oil sensitized ammonium nitrate prill (ANFO/blasting agent) would be stored, for a limited period of time, in storage bins, all located at the Hawthorn Mine. Bulk ANFO loading trucks would transport this blasting agent for use at any of the mine's strip pits.

MSHA personnel conducted an investigation of the petition and filed a report of their findings and recommendations with the Administrator for Coal Mine Safety and Health. After a careful review of the entire record, including the petition and MSHA's investigative report and recommendations, this Proposed Decision and Order is issued.

Finding of Fact and Conclusion of Law

The alternative method proposed by the Petitioner (as amended by the recommendations of MSHA investigators) will at all times guarantee no less than the same measure of protection afforded the miners under 30 CFR 77.1304(a).

On the basis of the petition and the findings of MSHA's investigation, the Peabody Coal Company is granted a modification of the application of 30 CFR 77.1304(a) to its Hawthorn Mine.

ORDER

Wherefore, pursuant to the authority delegated by the Secretary of Labor to the Administrator for Coal Mine Safety and Health, and pursuant to Section 101(c) of the Federal Mine Safety and Health Act of 1977, 30 U.S.C., sec. 811(c), it is ordered that Peabody Coal Company's Petition for Modification of the application of 30 CFR 77.1304(a) at the Hawthorn Mine is hereby:

GRANTED, for the collection, processing, and use of petroleum-based used oils, for blending with No. 2 diesel fuel (fuel oil), to sensitize ammonium nitrate prill, and the temporary storage and use of the resulting blasting agent (ANFO), conditioned upon compliance with the following terms and conditions:

1. Only petroleum-based lubrication oils, which are recycled from equipment at the Hawthorn Mine shall be used for blending with fuel oil to create ANFO (Ammonium Nitrate and Fuel Oil). High viscosity oils of 90W or above shall be restricted to less than 10 percent of the total quantity of recycled oil in the storage tank. Provisions shall be in place to ensure that the used oil is not contaminated with PCBs or any other hazardous waste materials listed in 40 CFR Section 261. In addition, an annual test for PCBs of the recycled oils shall be made to ensure that the provisions are effective. During the winter months when ambient temperatures are frequently below 32oF for extended periods, the mine may use No. 1 diesel fuel or varying mixtures of No. 1 and No. 2 diesel fuel for blending. At all other times the fuel oil used for blending shall be No. 2 diesel fuel.

2. The used oils shall be processed by filtering and then stored in tanks used exclusively for this purpose. Filtered used oil is hereinafter referred to as "recycled oil." The contents of the storage tanks shall, after testing and meeting the specifications provided in Item No. 4 below, be considered a batch of recycled oil and no additional waste oil or other products, with the exception of fuel oil, shall be added until the contents of the tank have been depleted.

3. A minimum of two filters in series shall be used in the filtering system. Each filter shall be a minimum of 100 mesh, i.e., able to retain particles nominally larger than 149 microns. These filters shall be cleaned or replaced on a regularly scheduled basis, and whenever the filters become clogged to the extent that a pressure of 50 psi exists at the pump outlet. Pressure on the recycled oil filtering system shall be regulated by a pump which shall be set for a maximum 50 psi. The pump shall be maintained in a functional condition when oil is in the system and shall regulate flow such that no oil passes into the recycling storage tank when a pressure of 50 psi is reached at the pump outlet.

4. Tests or analysis shall be conducted on each storage tank of recycled oil after the entire contents of the storage tank are thoroughly mixed and before blending with fuel oil to ensure that the recycled oil meets the following specifications:

(1) Arsenic 5 ppm maximum
(2) Benzene 25 ppm maximum
(3) Cadmium 2 ppm maximum
(4) Chromium 10 ppm maximum
(5) Lead 100 ppm maximum
(6) Total Halogens 1,000 ppm maximum
(7) Flash point 100° F minimum

Flash point shall be verified using the open cup ASTM D1310-86 (reapproved 1990) method or the closed-cup ASTM D3941-90 method.

Any test result on the contents of a storage tank which is outside these specifications shall have the contents retested immediately. The contents of the recycled oil storage tank shall not be blended with fuel oil if the test results are higher than the above limits.

If the above limits are lowered by MSHA or any other Federal agency after the effective date of this Proposed Decision and Order, the Petitioner shall submit a new procedure to accommodate the new lower limits or submit justification as to why a new procedure would be unnecessary. This request shall be submitted to the Administrator for Coal Mine Safety and Health within 60 days after the effective date of the new regulations.

5. The recycled oil shall be checked to ensure that water or ethylene glycol is not present prior to blending with the fuel oil. Any practical means can be used to perform the checking, such as a sight tube or a sample valve on the recycled oil tank. If either water or ethylene glycol is observed, it shall be drained from the batch prior to blending. MSHA's on-site inspection shall determine whether an acceptable method is provided to conduct the check.

6. The blend of recycled oil and fuel oil (hereinafter called "blended oil") shall not exceed 50 percent (by volume) recycled oil.

7. The recycled oil shall be continuously mixed while being blended with fuel oil to ensure a through blending. Mixing shall ensure recirculation of at least three times the total volume of the combined fuel oil and recycled oil.

8. The blended oil shall not be modified by heating, addition of additives (with the exception of fuel oil), or in any other way that could change the relevant properties of the recycled or blended oil.

The blended oil shall be remixed within 24 hours of being discharged into any bulk mixing vehicle or before being used to sensitize ammonium nitrate prill being stored as a blasting agent. This remixing shall recirculate at least 25 percent of the total volume of blended oil remaining in the storage tank. Mixing procedures shall ensure that two consecutive viscosity samples, taken at least 5 minutes apart, are within 10 percent of each other before loading into the bulk mixing vehicle or being used to make bulk ANFO for storage in bins. An absorption test for the batch of blended oil shall be performed, using a representative sample of ammonium nitrate, prior to bulk mixing with ammonium nitrate at the blast hole, or before mixing for bulk ANFO storage. Should the absorption test fail to show the ANFO to be at least six percent (6%) fuel oil by weight, additional fuel shall be added to the blended oil and the blended oil shall again be remixed.

9. Before a batch of blended oil is first used, and every 30 days thereafter until the batch is depleted, the blended oil shall be checked to ensure that water or ethylene glycol is not present when mixing with ammonium nitrate. Any practical means can be used to perform the checking, such as a sight tube or a sample valve on the blended oil tank. If either water or ethylene glycol is observed, the blended oil shall not be used until the mixture stratifies so that the ethylene glycol and/or water can be removed and disposed of in the appropriate manner. MSHA's on-site inspection shall determine whether an acceptable method is available to conduct this check.

10. When low temperatures cause the blended oil to become too viscous for proper absorption (at least 6 percent fuel by weight) in the ammonium nitrate prills, use of the blended oil shall be suspended. Viscosity tests and absorption tests at various temperatures may be performed to obtain their correlation with temperature. Once these correlations are obtained, they may be used to verify proper absorption.

In the event proper absorption cannot be obtained as a result of high viscosity, additional fuel oil may be added to the blended oil and thoroughly mixed.

11. Each new mixture of blended oil batch and ammonium nitrate prills shall be tested for sensitivity with a No. 8 strength detonator, as specified in Test 5(a) of "Recommendations on the Transport of Dangerous Goods, Test and Criteria" 2nd Edition, United Nations, 1990. This sensitivity test shall be performed on at least three samples, each having minimum dimensions of 3-3/8 inches in diameter and 6-3/8 inches in length with the detonator placed in the center of each sample. Each sample container shall be non-rigid (such as paper products) to minimize confining effects upon initiation.

12. The blended oil shall be transported and used in a closed system which prevents skin contact, inhalation of vapors, and ingestion of the ANFO products. Whenever persons may be exposed to vapors or contact with waste oil, recycled oil, blended oil, ammonium nitrate or the sensitized blasting agent, appropriate personal safety equipment shall be provided in accordance with 30 CFR 77.1710 and as described in the Material Safety Data Sheets referenced in paragraph 21.

13. The ammonium nitrate prill/blended oil mixture shall not be used in blasting operations in confined spaces or underground. The ammonium nitrate prill/blended oil mixture shall be used only at the Hawthorn Mine property. The ammonium nitrate prill/blended oil mixture shall be used in minimum hole diameters of 6 inches.

14. Blasting records for each shot utilizing the ammonium nitrate prill/blended oil mixture shall be maintained and identified as a specific blended oil batch as required by Item 24(f).

15. Emulsions (heavy ANFO) shall not be used with the blended oil unless the manufacturer of the emulsion certifies compatibility of the emulsion and the blended oil. The certification document(s) shall be maintained at the mine property and be made available to MSHA upon request.

16. Misfires, which occur when blended oil has been used to sensitize the blasting agent, shall be investigated to determine the cause of the misfire. The investigation results shall be reported to the MSHA District Manager within 5 working days.

17. The ammonium nitrate prill/blended oil mixture (blasting agent) shall not be stored for more than 10 days.

Before loading the blended oil/prill mixture into a storage bin, a temperature reading shall be taken and recorded to verify that the bin temperature is below 125°F. The blended oil/prill mixture in any bin shall not be used when its temperature is above 135°F. Explosive manufacturer's recommendations shall be followed for the quenching, removal and destruction or disposal of the bin contents.

18. Each blended oil/prill storage bin (silo) shall have a continuous temperature monitoring system consisting of the following components and installed as follows:

(a) Two heat sensors (thermocouple type) which protrude at least 6 inches into the mixture. Sensors shall be installed at the bottom and midway zones. Each sensor shall have a separate LED readout within 100 feet of the storage bin or an equivalent system shall be used.

(b) The heat monitoring system shall be connected to an audible alarm. The alarm signal shall be situated at a location on the mine property which is occupied, at all times, by persons trained in the appropriate response to the alarm. The alarm system shall sound when any temperature sensor reaches 125°F. Immediate corrective actions shall be taken as described below.

(c) If the temperature of the blended oil/prill mixture remains between 125°F and 135°F, as demonstrated by three consecutive hourly readings, then the mixture shall be either: (1) used immediately, or (2) destroyed or neutralized in accordance with explosive manufacturer's recommendations.

(d) All parts of the temperature monitoring system shall be maintained in good operating condition. If a heat sensor or temperature gauge becomes inoperable, the contents of the storage bin shall be either immediately used or relocated to another storage bin with an operable temperature monitoring system.

(e) A back-up power supply for the heat sensors and alarm system shall be provided for use in the event of a power failure or in the event that the power system for the heat monitoring and/or alarm system fails, a trained person shall be immediately dispatched to the storage bins to visually monitor the temperature gauges. Persons assigned to visually monitor the temperature gauges shall be equipped with a two-way communication device, and trained in the appropriate response(s) to temperature readings over 125°F.

19. A lockout system shall be provided on all oil storage tank facilities used in this process to prevent unauthorized access. Only properly trained authorized personnel shall have keys to operate the lockout system. This condition does not apply to the exit gate valve during ANFO preparation.

20. Signs shall be provided at each used oil disposal site which detail the types of oil allowed to be disposed.

21. Material Safety Data Sheets for each of the used oils original constituents (petroleum-based lubricants), fuel oil(s) and ammonium nitrate shall be maintained on the mine property and made available to MSHA and miners' representatives upon request.

22. The oil filtering, blending facility and ANFO storage bins (ammonium nitrate sensitized using blended oil) shall not be put into operation until an on-site inspection is conducted by MSHA to ensure that the terms and conditions of this Proposed Decision and Order are being followed. Detailed drawings of the facilities, including product flow direction needed for this inspection shall be submitted to MSHA.

23. The operations manual shall be revised as needed to reflect the terms and conditions of this Proposed Decision and Order and any design changes resulting from the pre-operating inspection.

24. The following records shall be maintained for a period of 3 years and made available to MSHA and miners' representatives upon request:

(a) Condition No. 1 - results of annual tests for presence of PCBs in the used oil;

(b) Condition No. 3 - dates and description of all filter cleaning and replacement activities;

(c) Condition No. 4 - test results in ppm, flashpoint in degrees Fahrenheit;

(d) Condition Nos. 6, 8, and 10 - blend mix ratio of fuel oil to recycled oil for each batch and the absorption test results, blending date, quantity in gallons of each batch ingredient, and viscosity test results;

(e) Condition No. 11 - sensitivity test results, including whether or not the sample detonated;

(f) Condition No. 14 - "load" and "shot" reports - these records shall note the date(s) of loading and blasting, quantities of ANFO or emulsions used, including the blended oil batch number, weather conditions, detonation methods, size and depth of all borehole(s), number and location within the shot of all boreholes and all misfires, and the use of plastic hole liners;

(g) Condition No. 16 - a record of misfires which occurred when using blended oil, the results of the investigation into the cause of the misfires, and the method and date of reporting to the MSHA District Manager shall be maintained; and

(h) Condition Nos. 17 and 18(b) - the record of bin temperature readings taken to verify the bin temperature is below 125 degree Fahrenheit before being loaded with the blended oil/prill mixture. In addition, a record shall be made of any and all bin temperature monitoring system failures, high temperature alarms and the resulting corrective actions.

25. Within 60 days after this Proposed Decision and Order becomes final, the Petitioner shall submit proposed revisions to its approved 30 CFR Part 48 training plan to the District Manager. These proposed revisions shall include initial and refresher training regarding compliance with the conditions stated in this Proposed Decision and Order.

Any party to this action desiring a hearing on this matter must file in accordance with 30 CFR 44.14, within 30 days. The request for hearing must be filed with the Administrator for Coal Mine Safety and Health, 4015 Wilson Boulevard, Arlington, Virginia 22203.

If a hearing is requested, the request shall contain a concise summary of position on the issues of fact or law desired to be raised by the party requesting the hearing, including specific objections to the proposed decision. A party other than Petitioner who has requested a hearing shall also comment upon all issues of fact or law presented in the petition, and any party to this action requesting a hearing may indicate a desired hearing site.

If no request for a hearing is filed within 30 days after service thereof, the Decision and Order will become final and must be posted by the operator on the mine bulletin board at the mine.



_________________________________
Robert A. Elam
Deputy Administrator
  for Coal Mine Safety and Health