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Proposed Rule2026-19692

Revising Requirements and Exceptions for Storing Explosives

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Published
September 25, 2026

Issuing agencies

Justice DepartmentAlcohol, Tobacco, Firearms, and Explosives Bureau

Abstract

The Bureau of Alcohol, Tobacco, Firearms, and Explosives ("ATF") proposes amending Department of Justice regulations listing exceptions to the requirement that explosive materials must be stored in locked magazines. Specifically, ATF proposes adding a testing exception; removing restrictions limiting existing exceptions to materials being physically handled or transported to a site for storing or using; excepting materials to be imminently used or transported; and adopting a perforating gun exception. These changes would streamline on-site operations, acknowledge developments in industry practices, increase safety during these activities by reducing how often explosives are moved, and eliminate the requirement for type 3 magazines.

Full Text

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<title>Federal Register, Volume 91 Issue 185 (Friday, September 25, 2026)</title>
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[Federal Register Volume 91, Number 185 (Friday, September 25, 2026)]
[Proposed Rules]
[Pages 60911-60920]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-19692]


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DEPARTMENT OF JUSTICE

Bureau of Alcohol, Tobacco, Firearms, and Explosives

27 CFR Part 555

[Docket No. ATF No. 2026-0365; ATF No. 2025-46P]
RIN 1140-AA86


Revising Requirements and Exceptions for Storing Explosives

AGENCY: Bureau of Alcohol, Tobacco, Firearms, and Explosives, 
Department of Justice.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Bureau of Alcohol, Tobacco, Firearms, and Explosives 
(``ATF'') proposes amending Department of Justice regulations listing 
exceptions to the requirement that explosive materials must be stored 
in locked magazines. Specifically, ATF proposes adding a testing 
exception; removing restrictions limiting existing exceptions to 
materials being physically handled or transported to a site for storing 
or using; excepting materials to be imminently used or transported; and 
adopting a perforating gun exception. These changes would streamline 
on-site operations, acknowledge developments in industry practices, 
increase safety during these activities by reducing how often 
explosives are moved, and eliminate the requirement for type 3 
magazines.

DATES: Comments must be submitted in writing, and must be submitted on 
or before (or, if mailed, must be postmarked on or before) November 24, 
2026. Commenters should be aware that the federal e-rulemaking portal 
comment system will not accept comments after midnight Eastern Time on 
the last day of the comment period.

ADDRESSES: You may submit comments, identified by RIN 1140-AA86, by 
either of the following methods--
    <bullet> Federal e-rulemaking portal: <a href="https://www.regulations.gov">https://www.regulations.gov</a>. 
Follow the instructions for submitting comments.
    <bullet> Mail: ATF Rulemaking Comments; Mail Stop 6N-518, Office of 
Regulatory Affairs; Enforcement Programs and Services; Bureau of 
Alcohol, Tobacco, Firearms, and Explosives; 99 New York Ave. NE; 
Washington, DC 20226; ATTN: RIN 1140-AA86.
    Instructions: All submissions must include the agency name and 
number (RIN 1140-AA86) for this notice of proposed rulemaking (``NPRM'' 
or ``proposed rule''). In addition, comments must be submitted in 
English or accompanied by an English

[[Page 60912]]

translation. ATF may post all properly completed comments it receives 
from either of the methods described above, without change, to the 
federal e-rulemaking portal, <a href="https://www.regulations.gov">https://www.regulations.gov</a>. This includes 
any personally identifying information (``PII'') or business 
proprietary information (``PROPIN'') submitted in the body of the 
comment or as part of a related attachment they want posted. Commenters 
who submit through the federal e-rulemaking portal and do not want any 
of their PII posted on the internet should omit PII from the body of 
their comment or in any uploaded attachments they want posted. If 
online commenters wish to submit PII with their comment, they should 
place it in a separate attachment and mark it at the top with the 
marking ``CUI//PRVCY.'' Commenters who submit through mail should 
likewise omit their PII or PROPIN from the body of the comment and 
provide any such information on the cover sheet only, marking it at the 
top as ``CUI//PRVCY'' for PII, or as ``CUI//PROPIN'' for PROPIN. 
Commenters must submit comments by using one of the methods described 
above, not by emailing the email address set forth in the following 
paragraph.
    For detailed instructions on submitting comments and additional 
information on the rulemaking process, see the ``Public Participation'' 
heading of the SUPPLEMENTARY INFORMATION section of this document. In 
accordance with 5 U.S.C. 553(b)(4), a summary of this rule may be found 
at <a href="https://www.regulations.gov">https://www.regulations.gov</a>. Commenters must submit comments by 
using one of the methods described above, not by emailing the address 
set forth in the following paragraph.

FOR FURTHER INFORMATION CONTACT: Office of Regulatory Affairs, by email 
at <a href="/cdn-cgi/l/email-protection#58170a1918392c3e763f372e"><span class="__cf_email__" data-cfemail="d39c819293b2a7b5fdb4bca5">[email&#160;protected]</span></a>, by mail at Office of Regulatory Affairs; Enforcement 
Programs and Services; Bureau of Alcohol, Tobacco, Firearms, and 
Explosives; 99 New York Ave. NE; Washington, DC 20226, or by telephone 
at 202-648-7070.

SUPPLEMENTARY INFORMATION:

I. Background

    Title XI of the Organized Crime Control Act of 1970 (``OCCA''), 
Public Law 91-452, 84 Stat. 922 (1970), added 18 U.S.C. chapter 40 
(Importation, Manufacture, Distribution, and Storage of Explosive 
Materials).\1\ One of the stated purposes for title XI was to reduce 
the ``hazard to persons and property arising from misuse and unsafe or 
insecure storage of explosive materials.'' Public Law 91-452, sec. 
1101, 84 Stat. at 952. The Attorney General is responsible for 
implementing title XI. See 18 U.S.C. 847. The Attorney General has 
delegated that responsibility to the Director of ATF (``Director''), 
subject to the direction of the Attorney General and the Deputy 
Attorney General.\2\ See 28 U.S.C. 599A(b)(1), (c)(1); 28 CFR 
0.130(a)(1)-(2); Treas. Order No. 221(2)(a), (d), 37 FR 11696-97 (June 
10, 1972). Regulations in 27 CFR part 555 implement title XI.
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    \1\ Some provisions of 18 U.S.C. chapter 40 still refer to the 
``Secretary of the Treasury.'' However, the Homeland Security Act of 
2002, Public Law 107-296, 116 Stat. 2135, transferred the functions 
of ATF from the Department of the Treasury to the Department of 
Justice, under the general authority of the Attorney General. 26 
U.S.C. 7801(a)(2); 28 U.S.C. 599A(c)(1). Thus, for ease of 
reference, this notice of proposed rulemaking refers to the Attorney 
General where relevant.
    \2\ In Attorney General Order Number 6353-2025, the Attorney 
General delegated authority to the Director to issue regulations 
pertaining to matters within ATF's jurisdiction, including under 
OCCA, the National Firearms Act, and the Gun Control Act. ATF's 
jurisdiction also includes the Arms Export Control Act and the 
Contraband Cigarette Trafficking Act.
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    Currently, 27 CFR 555.205 requires that licensees/permittees store 
explosive materials in locked magazines at all times unless specific 
exceptions apply. These exceptions are limited to explosive materials 
``[i]n the process of manufacture,'' ``[b]eing physically handled in 
the operating process,'' ``[b]eing used,'' or ``[b]eing transported to 
a place of storage or use.''
    There are three types of magazines in which federal explosives 
licensees/permittees may store high explosives under ATF's regulations. 
High explosives (for example, dynamite, flash powders, and bulk 
salutes) are one of three classes of explosive materials and can 
detonate by means of a blasting cap when unconfined. Sec.  555.202(a). 
They may be stored in type 1 magazines, which are permanent magazines; 
type 2 magazines, which are mobile and portable indoor or outdoor 
magazines; or type 3 magazines, which are portable outdoor magazines 
for temporarily storing explosives while attended. Sec.  555.203.
    In relevant part, type 1 and 2 magazines both must have a robust, 
bullet-resistant construction and must be theft-resistant through a 
variety of approved locking systems (e.g., two hooded padlocks). 
Sec. Sec.  555.207, 555.208. The two types differ from each other 
mainly in terms of portability. Unlike type 3 magazines, they do not 
have to be attended because of the listed extra security features. Type 
3 magazines are portable and must be secured with at least one unhooded 
padlock, but they do not have to be bullet-resistant and may have only 
one lock, which does not have to be as tamper-resistant. Sec.  555.209. 
They also must be attended because they are not as secure by virtue of 
being thinner and using less theft-resistant locks. Id. Type 3 
magazines are also typically quite small, and thus usually cannot hold 
large amounts of explosive materials or large explosive items.
    Generally, licensees/permittees have magazines suitable for 
unattended storage (e.g., type 1 or type 2 magazines) at their premises 
and therefore do not need a type 3 magazine on their premises. While 
some licensees/permittees manufacture, assemble, and use explosives at 
their business premises where they have type 1 or 2 magazines, most use 
them at places such as mines, construction sites, quarries, trenches, 
pipelines, roads and railways, oil fields, ski slopes, automotive 
sites, fireworks display sites, and avalanche sites. These sites 
(especially smaller sites) typically do not have type 1 or 2 magazines, 
so licensees/permittees typically use type 3 magazines to temporarily 
store explosives during operations at such sites, and transport the 
explosive materials back and forth at the beginning and end of each day 
to their business premises to store them overnight in type 1 or 2 
magazines.

II. Proposed Rule

A. Changes to Exceptions

    ATF regulations at Sec.  555.205 require licensees/permittees to 
store explosive materials in one of the aforementioned types of storage 
magazines at all times (or in one of the types for low explosives or 
blasting agents, if applicable). However, although explosive materials 
can be highly sensitive to various stimuli--including movement--and 
therefore require safety and security measures at all times, such 
materials obviously cannot be stored while the licensee/permittee is 
using them. Therefore, Sec.  555.205 also includes a set of exceptions 
to the storage requirement, related to using and transporting 
explosives.
    The current regulations recognize exceptions for explosives 
involved in four different activities: (1) explosives involved in the 
manufacturing process, which includes activities like making the 
explosives or using explosive materials to make other explosives; (2) 
explosives being physically handled during an operational process, such 
as when physically handling explosive

[[Page 60913]]

components to assemble them into a larger device; (3) using explosives, 
which includes activities that use up the explosives, such as 
initiating them or consuming them; and (4) transporting explosives, 
which includes activities involved in moving explosives to another 
location. Under the current regulations, transporting explosives is 
only an exception if the explosives are being transported to a site 
where they will be stored or used.
    ATF recognizes that there are other circumstances not listed as 
exceptions in Sec.  555.205 in which the explosives industry is not 
reasonably able to store explosive materials in a magazine. There are 
many operating processes where a licensee/permittee does not physically 
handle the explosive materials but cannot store them in a magazine that 
meets the prescribed construction and locking requirements. For 
example, explosive materials undergoing temperature sensitivity testing 
cannot be stored in a traditional magazine because the testing must be 
conducted in a temperature-controlled test chamber. In these instances, 
the licensee/permittee is not physically handling the explosive 
materials during the testing, nor is the testing part of manufacturing, 
using, or transporting the explosive materials, so none of the existing 
exceptions would apply.
    Currently, licensees/permittees must either request a variance to 
allow the explosives in this scenario to be in the testing chamber or 
must ensure the testing chamber meets the requirements to be a 
magazine, both of which are significantly burdensome options. ATF 
believes that including an exception for testing--which can often 
involve situations that need to continue uninterrupted or take place 
under other conditions not possible in a storage magazine--is 
appropriate and reasonable. Relatedly, removing the condition that 
licensees/permittees must be physically handling the explosives during 
operational processes to qualify for the exception is appropriate due 
to the modern variety of explosives that do not need to be physically 
handled during such operations.
    Further, a licensee/permittee transporting explosive materials to a 
site where they will be used may not immediately start using them once 
at the site. In such cases, several hours can elapse until operations 
commence (due to weather, for example). During those hours, the 
explosives do not fall under the exceptions in Sec.  555.205 and must 
be moved to a type 3 magazine on site. Later, when operations commence, 
the explosives must be moved back out of the type 3 magazine to the 
place where they need to be used. These steps unnecessarily add extra 
moves for the explosives, which increases the chances that they might 
accidentally initiate. In addition, getting a type 3 magazine to the 
site, especially one large enough to store all the explosives, is 
costly. ATF believes it is more impractical and riskier to require 
transferring explosive materials on site from the delivery vehicle to a 
magazine and then from the magazine to where they will be used than it 
is to leave them in a delivery vehicle that is locked, stable, and 
attended, if the explosives will be used shortly after arriving on 
site.
    In addition, licensees/permittees often need to transport explosive 
materials to locations for reasons other than using or storing them, 
such as when they transport the materials to distribute them to another 
licensee/permittee. They are unable to do this under the current 
transporting exception.
    ATF therefore proposes to remove the restriction that explosive 
materials in transit must be going to or from a site where they will be 
stored or used. Removing this restriction would allow both of the 
transportation scenarios discussed in the two paragraphs above to be 
covered by the exception, as well as other situations one might expect 
to occur occasionally, such as when explosives are securely packed on a 
pallet for transporting but, due to a traffic or other delay, must wait 
on the loading dock for a few hours, or when the licensee/permittee 
brings extra explosives in case they are needed and those remain on the 
secured truck the entire day.
    ATF informal guidance on the transporting exception currently 
permits explosives to remain in the delivery vehicle overnight when the 
driver must stop to sleep during transit and during other similar 
temporary stops because the Department of Transportation (``DOT'') 
defines such stops as part of transporting the materials, meaning they 
fall under DOT regulations for transporting, not ATF regulations for 
storing explosive materials. This proposed rule would not change this 
guidance. Explosives on a delivery vehicle must meet DOT requirements 
to ensure they are secure during transit, so keeping them in the 
vehicle until needed, instead of moving them to a magazine and back, 
presents no additional risk to public safety. Also, since DOT and ATF 
regulations have been in place, ATF is aware of no delivery vehicles 
containing explosive materials having been stolen, supporting ATF's 
view that explosives on such vehicles are at little risk of being 
diverted to illegal or unsafe uses.
    Allowing explosive materials to remain in the delivery vehicle is 
also safer and less burdensome compared to the alternative currently in 
effect. Each time explosive materials are moved or handled, the risk of 
accident increases, and the cost of transporting a type 3 magazine of 
sufficient size to temporarily store explosive materials is quite high. 
Additionally, licensees/permittees (which includes their employees) 
typically remain with the explosive materials while they are waiting to 
be used or delivered, which reduces the risk of accident or theft.
    For these reasons, ATF believes that expanding the activities 
excepted under Sec.  555.205 would recognize industry challenges under 
the current rules and provide licensees/permittees with the ability to 
conduct their operations without costly and unnecessary storage 
requirements, while still reasonably ensuring safety. Specifically, the 
proposed rule would require explosive materials to be stored in a 
locked magazine unless they are: (1) in a manufacturing, operating, or 
testing process; (2) being used or designated for imminent use; or (3) 
being transported or awaiting imminent transport. This proposed change 
would add a new exception for explosives in the testing process and 
would expand the using and transporting exceptions by including items 
designated for or awaiting imminent use or transport. It would also 
remove the existing limitation that the materials must be transported 
to a place where they will be stored or used and the limitation that 
employees must be physically handling the materials in the operating 
process unless the materials are immediately stored in a magazine. 
Making these changes would allow ATF's regulations to accommodate 
operational or logistical needs without negatively affecting public 
safety.

B. Incorporating Perforating Gun Exception From Ruling 2010-7

    In addition, ATF proposes incorporating the exception for 
perforating guns that is in ATF Ruling 2010-7, with slight 
modifications.\3\ Licensees/permittees use perforating guns primarily 
to pierce oil and gas wells to prepare them for oil and gas operations. 
In November 2010, ATF issued Ruling 2010-7, which authorizes licensees/
permittees, as a variance from the regulatory requirements, to store

[[Page 60914]]

loaded perforating guns in areas outside locked magazines, provided 
certain conditions were met. At that time, the length and weight of 
loaded perforating guns often made it difficult or impossible to store 
them within an explosives magazine as prescribed under the regulations. 
The ruling, in part, limited storing loaded perforating guns outside a 
magazine but inside a building to 50 pounds of total net explosives 
weight and limited storing them outside to 2,500 pounds of total net 
explosives weight across no more than 200 perforating guns.
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    \3\ ATF Ruling 2010-7, Perforating Gun Storage, (Nov. 24, 2010), 
<a href="https://www.atf.gov/media/19091/download">https://www.atf.gov/media/19091/download</a>.
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    Industry members who use perforating guns assemble each perforating 
gun to meet a specific purpose and function depending on oil or gas 
well conditions. Currently, most perforating guns used within the 
United States are approximately three inches in diameter and range 
between one to four feet long. Perforating guns are commonly housed 
within hollow thick-walled steel tubes and contain shaped charges that 
explode to pierce the well. Each individual shaped charge typically 
contains between 15 and 25 grams of high explosives and is initiated by 
using a detonating cord and a detonator. Although detonators are 
commonly attached to the assembly immediately prior to down-hole 
loading at the job site, perforating guns are sometimes armed with 
detonators when the gun is assembled, which requires detonator 
interrupter devices to be placed between the detonators and detonating 
cord to prevent unintended initiation.
    Because an oil or gas well operation may urgently need perforating 
guns due to the varying conditions within the well operations, 
assembling them at the worksite, often under unsafe or adverse 
conditions, can significantly delay operations and place workers at 
risk. In addition, waiting until perforating guns are needed before 
beginning the assembly operation results in costly delays for the well 
operator. To facilitate perforating operations and meet job demands, 
many perforating gun operators must maintain a fixed amount of 
preloaded perforating guns that can be used on short notice. As a 
result, they need to be able to efficiently stockpile and store 
perforating guns until they are needed.
    Since ATF issued Ruling 2010-7, the oil and gas industry has seen a 
significant shift toward horizontal perforating operations, which 
require a greater number of shorter perforating guns. The shift to 
smaller perforating guns has caused many licensees/permittees to 
request variances to exceed the current 200-gun limit for outside 
storage to accommodate their business operations. Limiting the number 
of perforating guns, regardless of size, restricts the total net 
explosives weight for outside storage. When perforating guns were 
significantly larger, the 200-gun limit was an important restriction 
for safety purposes because each gun added more to the total explosive 
volume. However, for those licensees/permittees who acquire and store 
smaller perforating guns, limiting the number of guns limits the volume 
of explosives they can store even more, putting the limit well below 
the allowed 2,500-pound threshold for outside storage because smaller 
perforating guns contain less explosive material than the larger guns 
considered in the 2010 ruling.
    Although the smaller perforating guns contain less explosive 
material, they are also more susceptible to theft because of their 
size. Many licensees/permittees therefore store their loaded 
perforating guns inside shipping containers or other buildings to 
increase theft resistance and to better protect them from inclement 
weather conditions. Although these structures and buildings store the 
explosives indoors, they do not meet the requirements to constitute 
magazines. Often, drilling locations, such as well sites, are not 
conducive to storing smaller perforating guns inside magazines, in part 
because of the remote or temporary site locations. Typically, 
perforating guns are not transported in a magazine, so the magazines 
are shipped separately, frequently on very large trucks that are not 
easy to navigate on narrow remote roads, at significant additional 
cost. The perforating guns remain in their transport configuration 
(e.g., banded and palletized, or crated) until they are needed for the 
day's operations whether they are stored within a magazine or another 
location. If the perforating guns are left outside, licensees/
permittees can store up to 2,500 pounds of explosive materials.
    ATF regulations restrict the total net explosives weight for 
storing explosive materials indoors (but not in a magazine) to 50 
pounds. This means that indoor storage can be close to other buildings, 
highways, vehicles, etc., if the explosives total less than 50 pounds. 
The 2010 ruling retained this 50-pound limitation for storing 
perforating guns indoors but not in a magazine. As a result, in 
situations when licensees/permittees wish to increase security for 
2,500 pounds of perforating guns by moving them indoors, they must 
transport a magazine in difficult conditions instead of using existing 
structures or obtain separate approval via another variance request.
    When ATF grants such a variance, it requires licensees/permittees 
to meet the applicable quantity and distance requirements for storing 
these explosives outside, typically those set out in Sec.  555.218. 
This table of distances still sets a weight limit for explosives, 
though it is higher than for indoor storage, and it also establishes a 
minimum distance between the explosives and inhabited buildings, 
highways, etc., to ensure public safety if there should be an accident. 
The applicable distance depends on the explosive impact of the weight 
being stored. In addition, ATF grants these variances only if the 
building is solely occupied by the licensee's/permittee's operations so 
that only the licensee/permittee would be impacted, and requires 
licensees/permittees to continue to meet all the other requirements for 
indoor storage, such as prohibiting spark-producing devices within the 
room, as well as maintaining the required security measures for outside 
storage. No security or safety issues have arisen in operations under 
these variances during the past 15 years.
    As a result of both changes in common perforating gun size and 
theft concerns, ATF proposes to incorporate Ruling 2010-7, with slight 
modifications, to allow licensees/permittees to store perforating guns 
outside explosives magazines without having to request a variance, 
provided they meet the specified safety and security conditions. ATF is 
also proposing to update and streamline the conditions that are 
necessary to store perforated guns safely outside a storage magazine to 
account for changes in these devices and in security options since the 
ruling was published. Specifically, this rule proposes to remove the 
200-gun limitation currently in ATF Ruling 2010-7 and to allow 
licensees/permittees to store more than 50 pounds of perforating guns 
inside buildings and structures, provided they meet the requirements 
described in the preceding paragraph. ATF believes changing the 
perforating-gun indoor storage focus from a maximum weight--that is 
still close to other structures and people and thus can still pose 
substantial risk to the public--to a requirement that such storage must 
comply with the applicable established table of distances, regardless 
of its weight, increases public safety. These changes from the current 
requirements in the 2010 ruling would therefore provide licensees/
permittees greater operational flexibility without negatively affecting 
public safety.

[[Page 60915]]

C. Changes to Type 3 Magazine Requirement

    ATF also believes that it is unnecessary for ATF to continue 
requiring licensees/permittees to use type 3 magazines for temporary, 
attended storage during the kinds of activities discussed above. 
Explosives operational processes (such as loading blast holes and 
assembling perforating guns) or manufacturing processes (such as 
combining explosive components to create a new explosives device) 
during which licensees/permittees currently temporarily store explosive 
materials inside a type 3 magazine are already excepted under the 
regulations at Sec.  555.205, and the proposed changes discussed above 
would expand those exceptions. In addition, licensees/permittees 
typically immediately start unloading, handling, and using the 
explosive materials once they have been transported to the site, and 
under the proposed changes above, would be able to continue storing 
them in the delivery vehicle when they will be used imminently, though 
not immediately.
    Further, under the current regulations, licensees/permittees 
transporting their explosive materials to a place where they will be 
used do not have to store them in a locked magazine while the materials 
are being transported. Sec.  555.205. Most explosives licensees/
permittees transport explosive materials to work sites in delivery 
vehicles that generally have not been designed to meet the construction 
requirements needed for unattended or attended magazines. However, the 
delivery vehicles are locked, and the licensees/permittees typically 
remain with the vehicle and explosive materials while they unload, 
handle, and use the explosive materials. In addition, the delivery 
vehicles must meet DOT standards (during land transportation) or 
Department of Homeland Security (``DHS'') standards (during sea 
transportation). Explosive materials are exempt from ATF's explosives 
regulations while under DOT or DHS transporting authority and 
standards. See Sec.  555.141(a)(1).
    For these reasons, ATF believes that most explosives that might be 
candidates for storing in a type 3 magazine are already excepted from 
being in a locked magazine under Sec.  555.205; would be excepted under 
Sec.  555.205 as amended by this proposed rule; or are excepted under 
Sec.  555.141. Therefore, ATF believes there is no need to continue 
requiring that licensees/permittees lock explosives in attended type 3 
temporary storage magazines. Accordingly, ATF proposes to remove the 
regulation at Sec.  555.203(c), which establishes the current 
requirement to use type 3 magazines, and to remove and reserve the 
regulations at Sec.  555.209, which establish the construction and 
locking standards for type 3 magazines.
    This proposed rule would not prohibit licensees/permittees from 
continuing to use type 3 magazines if they wish. In some cases, it may 
be useful to use a type 3 magazine to comply with state or other 
storage requirements, for example, and licensees/permittees also 
frequently use type 3 magazines to keep detonators separate from other 
explosives. Licensees/permittees would still be able to use type 3 
magazines for these and other similar purposes.

D. Benefits From the Proposed Changes

    ATF anticipates that the proposed changes discussed in sections A, 
B, and C of this part would reduce regulatory burdens on the explosives 
industry by providing greater operational flexibility. Licensees/
permittees would save costs associated with unnecessary magazine 
infrastructure or inefficiently moving materials in and out of 
magazines during short periods in which the materials might not be 
physically handled but are still in the operating process. Public 
safety would not be at risk because the excepted activities typically 
occur at secure locations or are overseen by responsible persons or 
employee possessors. In fact, public safety would benefit because the 
proposed changes would reduce how often explosives would need to be 
moved, thereby reducing both the risk of accident and the risk that 
explosive materials would be stolen or diverted. When explosives do not 
fall within the excepted activities, licensees/permittees would still 
be required to secure them in locked magazines.
    By clarifying and broadening the storage exceptions, these proposed 
changes would allow licensees/permittees to more practically and 
efficiently manage explosive materials while maintaining appropriate 
security measures. Currently, licensees/permittees need to move 
explosives into magazines and then return them to the place where they 
are operating or testing, thereby moving the explosives more often, 
which greatly increases the risk of accident. Such movement may also 
disrupt longer testing situations. Allowing explosives to remain in a 
secure or monitored building or area reduces those moves and thus 
decreases the risk.
    Finally, these proposed changes would permit licensees/permittees 
to be more efficient by reducing the time necessary to move explosives 
back and forth while also reducing the risk of accident from moving 
explosives more frequently. The intent is to except situations where 
explosive materials are under a licensee's/permittee's direct control 
and supervision but are not actively being handled or immediately 
stored in a fixed magazine due to operational necessity.

III. Statutory and Executive Order Review

A. Executive Orders 12866 and 13563

    Executive Order 12866 (Regulatory Planning and Review) directs 
agencies to assess the costs and benefits of available regulatory 
alternatives and, if regulation is necessary, to select regulatory 
approaches that maximize net benefits.
    Executive Order 13563 (Improving Regulation and Regulatory Review) 
emphasizes the importance of quantifying both costs and benefits, 
reducing costs, harmonizing rules, and promoting public flexibility.
    This proposed rule would amend 27 CFR part 555's exceptions to the 
requirement that licensees/permittees must store explosives in secure 
magazines at all times. This rule proposes to add testing processes to 
existing exceptions for manufacturing and operating processes; to 
expand the using exception by adding explosives designated for imminent 
use and the transporting exception by adding explosives awaiting 
imminent transport; and to remove the restriction on the operating 
exception that limits it to explosives being physically handled, as 
well as the restriction on the transporting exception that limits it to 
explosives being transported to sites where they will be used or 
stored. In addition, this rule proposes to incorporate a slightly 
modified version of an existing exception for perforating guns, 
recognized in an ATF ruling since 2010. The proposed rule would be a 
deregulatory action easing burdens on the explosives industry by easing 
magazine storage requirements during testing, when explosives are 
designated for imminent use or awaiting imminent transport, and under 
circumstances where the explosives would be subject to a licensee's/
permittee's direct control and supervision but are not actively being 
handled or immediately stored in a fixed magazine due to operational 
necessity.
    The Office of Management and Budget (``OMB'') has determined that 
this rule would not be a ``significant regulatory action'' under 
Executive Order 12866. Therefore, it did not review this rule.

[[Page 60916]]

ATF provides the following analysis to comply with Executive Orders 
12866 and 13563.
1. Need Statement
    This proposed rule would be a deregulatory action to amend 
requirements for storing explosives to adjust to changes in industry 
operations, security practices, and ways in which explosives are used. 
The changes are not being proposed to address a particular market 
failure or delivery of government services. ATF is, however, 
modernizing its explosives regulations to better account for changes 
that have occurred over the decades since the regulations were drafted 
and to streamline them so they provide more flexibility and reduce 
burdens on the regulated industry while updating requirements for 
public safety. The proposed expanded exceptions to the storage 
requirements would better account for modern explosives handling and 
would eliminate the need for type 3 storage magazines. At the same 
time, the revised exceptions would maintain public safety because on-
site and transporting operations already incorporate public safety 
requirements and standards.
2. Benefits
    The proposed rule offers both quantitative and qualitative 
benefits. The proposed rule's qualitative benefits include reduced 
burdens for industry that would arise from easing magazine storage 
requirements for explosives during testing; when the explosives are 
designated for imminent use or awaiting imminent transport; and in 
circumstances in which the explosives would be under a licensee's/
permittee's direct control and supervision but would not be actively 
handled or immediately stored in a fixed magazine due to operational 
necessity.
    By clarifying and broadening storage exceptions, the proposed rule 
would allow licensees/permittees to more practically and efficiently 
manage explosive materials while maintaining appropriate security 
measures. Moreover, the proposed changes would reduce the need for on-
site coordination among explosives and ordinance workers across the 
various sectors within the explosives industry.
    The rule would reduce other burdens on industry as well, such as 
avoiding unnecessary expenditures, maintenance, and inspection time for 
required type 3 magazines. Another benefit is that moving the explosive 
materials less often (such as back and forth between the operating or 
manufacturing area and the magazine) would reduce the risk of accident 
and explosion. ATF estimates that the potential qualitative benefits of 
reduced inconvenience, compliance burdens, and risk of accident would 
be realized by approximately 9,100 explosives licensees/permittees 
engaged in commercial explosives use.
    The proposed rule would also quantitatively decrease costs on the 
industry for acquiring and transporting type 3 magazines to the 
operational site by essentially eliminating the requirement for 
temporary onsite storage. Most current industry operators have already 
purchased and currently own magazines, and the proposed rule would thus 
not result in immediate cost savings. However, industry newcomers would 
no longer be required to purchase and maintain type 3 magazines. And 
both current and future industry participants would receive relief from 
compliance burdens and risks arising from moving explosives more often.
    According to ATF records, there were 1,035 new licensees/permittees 
in 2022, 868 in 2023, and 1,036 in 2024. These figures show an annual 
average of 980 new entrants per year. That volume of explosives 
licensees/permittees has been required to incur costs to procure, 
utilize, and maintain type 3 magazines for their commercial explosive 
activities on sites other than their business premises. As a result, 
approximately 980 new entrants each year would no longer have to expend 
these costs. ATF estimates that an average IME 22-compliant \4\ type 3 
magazine costs around $500.\5\ If the average estimated new license/
permit application rate continues in future as it has the past three 
years, the quantitative industry cost savings would be approximately 
$490,000 a year. This assumed savings rate is projected over ten years 
in Table 1.
---------------------------------------------------------------------------

    \4\ For details on what this industry standard entails, see 
Inst. of Makers of Explosives, Recommendations for the Safe 
Transportation of Detonators in a Vehicle with Certain Other 
Explosive Materials, at 22 (Oct. 2019), <a href="https://www.ime.org/aws/IME/pt/sd/product/32566/_PARENT/layout_details/false">https://www.ime.org/aws/IME/pt/sd/product/32566/_PARENT/layout_details/false</a>.
    \5\ Based on average estimates provided by ATF subject matter 
experts. Additional examples of pricing are online, such as at 
<a href="https://www.justrite.com/dynaloc-explosive-storage-magazine-type-3-daybox-el510?srsltid=AfmBOoo9xMnfhYIZm5EMh6dNN00oXTJU9kmQzlr76bfkwGVQR4N118Rt">https://www.justrite.com/dynaloc-explosive-storage-magazine-type-3-daybox-el510?srsltid=AfmBOoo9xMnfhYIZm5EMh6dNN00oXTJU9kmQzlr76bfkwGVQR4N118Rt</a> [<a href="https://perma.cc/UZW5-84ZB">https://perma.cc/UZW5-84ZB</a>].

                    Table 1--Estimated Cost Savings for New Licenses/Permits Over Ten Years *
----------------------------------------------------------------------------------------------------------------
                                                            Cost savings
                          Year                              undiscounted      Discounted 3%      Discounted 7%
----------------------------------------------------------------------------------------------------------------
1......................................................           $490,000           $475,728           $457,944
2......................................................            490,000            461,872            427,985
3......................................................            490,000            448,419            399,986
4......................................................            490,000            435,359            373,819
5......................................................            490,000            422,678            349,363
6......................................................            490,000            410,367            326,508
7......................................................            490,000            398,415            305,147
8......................................................            490,000            386,811            285,184
9......................................................            490,000            375,544            266,528
10.....................................................            490,000            364,606            249,091
                                                        --------------------------------------------------------
    Total..............................................          4,900,000          4,179,799          3,441,555
    Annualized.........................................  .................            490,000            490,000
----------------------------------------------------------------------------------------------------------------
* The ``undiscounted'' column represents totals from the underlying costs. Consistent with guidance provided by
  OMB in Circular A-4, the ``Discounted 3%'' and ``Discounted 7%'' columns result from applying an economic
  formula to the number in each row of the ``undiscounted'' column to show how these future costs over time
  would be valued today; they do not contain totals from other tables.

    In addition to the qualitative benefits accrued for approximately 
9,100 explosives licensees/permittees outlined above, the quantitative 
benefits from the proposed rule would be approximately $4.90 million in 
cost savings over ten

[[Page 60917]]

years, discounted to $4.18 million and $3.44 million at 3 percent and 7 
percent, respectively. The total annualized quantitative savings for 
the proposed rule would equal $490,000 each year.
3. Costs
    The proposed rule would not create costs for the regulated 
industry. This is because the proposed changes would be deregulatory in 
nature and primarily simplify and streamline the protocols requiring 
licensees/permittees to store explosives in magazines. The proposed 
rule is also unlikely to increase risks to public safety, which is a 
key objective for both ATF and industry partners alike. The excepted 
activities already typically occur at secure locations or are overseen 
by responsible persons or employee possessors, and explosives industry 
operators are already subject to other regulations requiring them to 
store unattended explosives and to use more secure storage magazines 
for explosives not in use for longer periods.
    The current regulations relating to type 3 magazines, which the 
proposed rule would eliminate, are only applicable when storing 
explosives for a temporary period while they are attended by qualified 
personnel. However, during the kinds of activities when such temporary 
storage on another site is relevant, the explosives are, as a practical 
matter, being handled, unloaded, and otherwise attended as part of the 
operational or transportation environments where they are being used. 
Consequently, storing explosives in type 3 magazines is largely 
redundant. Licensees/permittees typically begin using the explosives 
once they arrive on site or they remain in the delivery vehicle, which 
is secure, still, and attended. Sites at which licensees/permittees use 
explosive materials are secure facilities, thereby making the light 
security characteristics of type 3 magazines redundant as well.
    Furthermore, ATF estimates that the proposed changes would 
qualitatively increase public safety by decreasing how often the 
explosives would need to be stored and thus moved back and forth. 
Permitting explosives to stay on site while they are being actively 
used and during temporary breaks or preparatory stages (such as 
awaiting pick-up or in the delivery vehicle until work begins) 
decreases movement of these often-volatile materials, thereby reducing 
both the risk of accident and the risk that explosive materials might 
be stolen or diverted. When explosives do not fall within the excepted 
activities, licensees/permittees would still be required to secure them 
in locked magazines, reducing the public safety risks otherwise 
associated with removing or relaxing magazine storage requirements for 
explosives. But, as this is an existing requirement, it would not give 
rise to any additional costs. The quantitative and qualitative benefits 
above are therefore not counterbalanced by material costs or increased 
public safety risks.
4. Regulatory Alternatives
    ATF considered not modifying the regulations in Sec.  555.205, an 
alternative known as the no-action alternative. The no-action 
alternative would not create any benefits or reduce any burdens. 
Specifically, the no-action alternative would leave undisturbed a 
qualitative risk to public safety by continuing to require unnecessary 
movement and disruption of explosives while using and testing them. 
This alternative would maintain onerous storage requirements during 
times that the explosives are already attended and within secure 
facilities. Retaining these regulations in their present form would 
require licensees/permittees to store explosives in type 3 magazines 
and attend such magazines during brief periods, such as breaks and 
operational and other activities involving use of the explosives, 
despite the fact that the explosives are already attended anyway and 
within secure facilities during such activities. It would also continue 
to cause the explosives to be moved back and forth more often, thereby 
maintaining increased risk of accidental detonations. Thus, the no-
action alternative would provide no benefits, in addition to increasing 
the safety risk for licensees/permittees, the larger public, and 
property, relative to the proposed rule. As a result, ATF rejected this 
alternative and instead elected to propose revising the regulations.

B. Executive Order 14192

    Executive Order 14192 (Unleashing Prosperity through Deregulation) 
requires an agency, unless prohibited by law, to identify at least ten 
existing regulations to be repealed or revised when the agency publicly 
proposes for notice-and-comment or otherwise promulgates a new 
regulation that qualifies as an Executive Order 14192 regulatory action 
(defined in OMB Memorandum M-25-20 as a final significant regulatory 
action under section 3(f) of Executive Order 12866 that imposes total 
costs greater than zero). In furtherance of this requirement, section 
3(c) of Executive Order 14192 requires that any new incremental costs 
associated with such new regulations must, to the extent permitted by 
law, also be offset by eliminating existing costs associated with at 
least ten prior regulations. However, this proposed rule would not be 
an Executive Order 14192 regulatory action because it is not a 
significant regulatory action as defined by Executive Order 12866 and 
it would not impose total costs greater than zero. This proposed rule 
would reduce burdens on the explosives industry by easing magazine 
storage requirements for explosives, thereby reducing licensees'/
permittees' magazine costs and providing significant qualitative 
benefits from not having to move explosives in and out of storage as 
often, along with other similar benefits. The proposed rule is also 
deregulatory in nature as it would remove requirements for storing 
explosives in type 3 temporary, portable magazines. These proposed 
changes would result in qualitative benefits that would accrue for 
approximately 9,100 explosives licensees/permittees, and quantitative 
benefits for all new licensees/permittees and small businesses, 
totaling $4.90 million in savings over ten years. ATF estimates that no 
costs or increased risks to public safety would arise from this 
proposed rule, so the benefits would not be counterbalanced by material 
costs or increased public safety risks. Therefore, ATF expects this 
rule, if finalized as proposed, to qualify as an Executive Order 14192 
deregulatory action (defined by OMB Memorandum M-25-20 as a final 
action that imposes total costs less than zero).

C. Executive Order 14294

    Executive Order 14294 (Fighting Overcriminalization in Federal 
Regulations) requires agencies promulgating regulations with criminal 
regulatory offenses potentially subject to criminal enforcement to 
explicitly describe the conduct subject to criminal enforcement, the 
authorizing statutes, and the mens rea standard applicable to each 
element of those offenses. This proposed rule would not create a 
criminal regulatory offense and is thus exempt from Executive Order 
14294 requirements.

D. Executive Order 13132

    This proposed rule would not have substantial direct effects on the 
states, the relationship between the federal government and the states, 
or the distribution of power and responsibilities among the various 
levels of government. Therefore, in accordance with section 6 of 
Executive Order 13132 (Federalism), the Director has determined that 
this proposed rule would not impose substantial direct compliance costs 
on state and local governments, preempt state law, or

[[Page 60918]]

meaningfully implicate federalism. It thus does not warrant preparing a 
federalism summary impact statement.

E. Executive Order 12988

    This proposed rule meets the applicable standards set forth in 
sections 3(a) and 3(b)(2) of Executive Order 12988 (Civil Justice 
Reform).

F. Regulatory Flexibility Act

    Under the Regulatory Flexibility Act, 5 U.S.C. 601-612, agencies 
are required to conduct a regulatory flexibility analysis of any 
proposed rule subject to notice-and-comment rulemaking requirements 
unless the agency head certifies, including a statement of the factual 
basis, that the proposed rule would not have a significant economic 
impact on a substantial number of small entities. Small entities 
include certain small businesses, small not-for-profit organizations 
that are independently owned and operated and are not dominant in their 
fields, and governmental jurisdictions with populations of less than 
50,000.
    The Director certifies, after consideration, that this proposed 
rule would not have a significant economic impact on a substantial 
number of small entities. This proposed rule would be deregulatory 
because it would reduce burdens on the explosives industry by easing 
magazine storage requirements and reducing the time and cost burdens of 
moving the explosives back and forth to storage and of acquiring and 
transporting type 3 storage magazines to operational sites for that 
purpose. The proposed rule thereby reduces the risk that explosives 
will accidentally detonate. ATF estimates the rule would result in 
qualitative benefits for approximately 9,100 explosives licensees/
permittees, the majority of which are small businesses, with additional 
quantitative benefits from cost savings approximating $4.90 million 
over ten years. ATF estimates these cost savings would benefit the 
annual average of 980 new entrants, again, a majority of which are 
small entities, as they would no longer be required to procure, 
utilize, and maintain type 3 magazines for their commercial explosives 
activities on sites other than their business premises. Although these 
businesses would realize certain cost savings, ATF has determined that, 
based on the average revenue of licensees/permittees, the costs savings 
would be small enough that any savings would not constitute a 
significant economic impact on the licensees/permittees, and thus, the 
Director certifies that this rule would not have a significant economic 
impact on a substantial number of small entities.

G. Unfunded Mandates Reform Act of 1995

    This proposed rule does not include a federal mandate that might 
result in the expenditure by state, local, and tribal governments, in 
the aggregate, or by the private sector, of $100 million or more in any 
one year, and it would not significantly or uniquely affect small 
governments. Therefore, the ATF has determined that no actions are 
necessary under the provisions of the Unfunded Mandates Reform Act of 
1995.

H. Paperwork Reduction Act of 1995

    Under the Paperwork Reduction Act of 1995 (``PRA''), 44 U.S.C. 
3501-3521, agencies are required to submit to OMB, for review and 
approval, any information collection requirements a rule creates or any 
impacts it has on existing information collections. An information 
collection includes any reporting, record-keeping, monitoring, posting, 
labeling, or other similar actions an agency requires of the public. 
See 5 CFR 1320.3(c). This proposed rule would not create any new 
information collection requirements or impact any existing ones covered 
by the PRA.

I. Congressional Review Act

    This proposed rule would not be a major rule as defined by the 
Congressional Review Act, 5 U.S.C. 804.

IV. Public Participation

A. Comments Sought

    ATF requests comments on the proposed rule from all interested 
persons. ATF specifically requests comments on the clarity of this 
proposed rule and how it may be made easier to understand. In addition, 
ATF requests comments on the costs or benefits of the proposed rule and 
on the appropriate methodology and data for calculating those costs and 
benefits.
    All comments must reference this document's RIN 1140-AA86 and, if 
handwritten, must be legible. In addition, comments must be submitted 
in English or accompanied by an English translation. If submitting by 
mail, you must also include your complete first and last name and 
contact information. If submitting a comment through the federal e-
rulemaking portal, as described in section IV.C of this preamble, you 
should carefully review and follow the website's instructions on 
submitting comments. Whether you submit comments online or by mail, ATF 
will post them online. If submitting online as an individual, any 
information you provide in the online fields for city, state, zip code, 
and phone will not be publicly viewable when the comment is published 
on <a href="https://www.regulations.gov">https://www.regulations.gov</a> by ATF. However, if you include such 
personally identifiable information (``PII'') in the body of your 
online comment, it may be posted and viewable online. Similarly, if you 
submit a written comment with PII in the body of the comment, it may be 
posted and viewable online. Therefore, all commenters should review 
section IV.B of this preamble, ``Confidentiality,'' regarding how to 
submit PII if you do not want it published online. ATF may not 
consider, or respond to, comments that do not meet these requirements 
or comments containing excessive profanity. ATF will retain comments 
containing excessive profanity as part of this rulemaking's 
administrative record, but will not publish such documents on <a href="https://www.regulations.gov">https://www.regulations.gov</a>. ATF will treat all comments as originals and will 
not acknowledge receipt of comments. In addition, if ATF cannot read 
your comment due to handwriting or technical difficulties and cannot 
contact you for clarification, ATF may not be able to consider your 
comment.
    ATF will carefully consider all comments, as appropriate, received 
on or before the closing date.

B. Confidentiality

    ATF will make all comments meeting the requirements of this 
section, whether submitted electronically or on paper, and except as 
provided below, available for public viewing on the internet through 
the federal e-rulemaking portal, and subject to the Freedom of 
Information Act (``FOIA''), at 5 U.S.C. 552. Commenters who submit by 
mail and who do not want their name or other PII posted on the internet 
should submit their comments with a separate cover sheet containing 
their PII. The separate cover sheet should be marked with ``CUI//
PRVCY'' at the top to identify it as protected PII under the Privacy 
Act. Both the cover sheet and comment must reference RIN 1140-AA86. For 
comments submitted by mail, information contained on the cover sheet 
will not appear when posted on the internet, but any PII that appears 
within the body of a comment will not be redacted by ATF and may appear 
on the internet. Similarly, commenters who submit through the federal 
e-rulemaking portal and who do not want any of their PII posted on the 
internet should omit such PII from the body of their comment or in any 
uploaded attachments. However, PII entered into the online fields 
designated for name, email, and

[[Page 60919]]

other contact information will not be posted or viewable online.
    A commenter may submit to ATF information identified as proprietary 
or confidential business information by mail. To request that ATF 
handle this information as controlled unclassified information 
(``CUI''), the commenter must place any portion of a comment that is 
proprietary or confidential business information under law or 
regulation on pages separate from the balance of the comment, with each 
page prominently marked ``CUI//PROPIN'' at the top of the page.
    ATF will not make proprietary or confidential business information 
submitted in compliance with these instructions available when 
disclosing the comments that it receives, but will disclose that the 
commenter provided proprietary or confidential business information 
that ATF is holding in a separate file to which the public does not 
have access. If ATF receives a request to examine or copy this 
information, it will treat it as any other request under FOIA. In 
addition, ATF will disclose such proprietary or confidential business 
information to the extent required by other legal process.

C. Submitting Comments

    Submit comments using either of the two methods described below 
(but do not submit the same comment multiple times or by more than one 
method). Hand-delivered comments will not be accepted.
    <bullet> Federal e-rulemaking portal: ATF recommends that you 
submit your comments to ATF via the federal e-rulemaking portal at 
<a href="https://www.regulations.gov">https://www.regulations.gov</a> and follow the instructions. Comments will 
be posted within a few days of being submitted. However, if large 
volumes of comments are being processed simultaneously, your comment 
may not be viewable for up to several weeks. Please keep the comment 
tracking number that is provided after you have successfully uploaded 
your comment.
    <bullet> Mail: Send written comments to the address listed in the 
ADDRESSES section of this document. Written comments must appear in 
minimum 12-point font size, include the commenter's first and last name 
and full mailing address, and may be of any length. See also section 
IV.B of this preamble, ``Confidentiality.''
Disclosure
    Copies of this proposed rule and the comments received in response 
to it are available through the federal e-rulemaking portal, at <a href="https://www.regulations.gov">https://www.regulations.gov</a> (search for RIN 1140-AA86).

List of Subjects in 27 CFR Part 555

    Administrative practice and procedure, Explosives, Freight, 
Hazardous substances, Imports, Penalties, Reporting and record-keeping 
requirements, Safety, Security measures, Seizures and forfeitures, 
Transportation, Warehouses.

    For the reasons discussed in the preamble, ATF proposes to amend 27 
CFR part 555 as follows:

PART 555--COMMERCE IN EXPLOSIVES

0
1. The authority citation for 27 CFR Part 555 continues to read as 
follows:

    Authority: 18 U.S.C. 847.


Sec.  555.203  [Amended]

0
2. Amend Sec.  555.203 by removing paragraph (c) and redesignating 
paragraphs (d) and (e) as paragraphs (c) and (d).
0
3. Revise Sec.  555.205, including its heading, to read as follows:


Sec.  555.205   Explosives storing requirement and exceptions.

    (a) Storing requirement. All explosive materials must be kept in 
locked magazines meeting the standards in this subpart except when they 
fall under one of the exceptions in this section.
    (b) General exceptions. Explosives are excepted from paragraph (a) 
of this section's storing requirement when they are:
    (1) in a manufacturing, operating, or testing process;
    (2) being used or are designated for imminent use; or
    (3) being transported or awaiting imminent transport.
    (c) Perforating guns exception. Licensees/permittees may store 
perforating guns in locations outside locked magazines, whether indoors 
or outdoors, under the conditions below.
    (1) Conditions applying in all cases. Licensees/permittees storing 
perforating guns outside a locked magazine must:
    (i) Include a detonator interrupter device in perforating guns 
armed with detonators or initiating devices;
    (ii) Install a handling cap, plug, or other closing device on both 
ends of hollow-type carrier guns;
    (iii) Secure perforating guns with exposed explosive components 
(e.g., those that consist of sealed charges mounted on strips or wires) 
that are not mounted in a carrier assembly in a way that prevents the 
components from being removed without authorization (e.g., store them 
within a locked room inside a building, or within a transportation 
carrier or other protective housing assembly);
    (iv) Store perforating guns with exposed explosives that are not 
contained within a secure tube (e.g., tube-less strips or wire guns) 
only in an indoor location;
    (v) Visually inspect all buildings, areas, or vehicles containing 
perforating guns at least once every three calendar days to ensure no 
one has entered or attempted to enter without authority and that no one 
has removed the perforating guns;
    (vi) Maintain a daily summary of magazine transactions, as 
prescribed in Sec.  555.127, for each building, area, or vehicle that 
contains perforating guns. Express the quantity as the number of 
individual perforating guns stored within each separate building, area, 
or vehicle. Provide to any ATF official the quantity and description of 
explosive products contained within each individual perforating gun on 
request;
    (vii) Store all perforating guns in a manner that prevents them 
from accidentally moving or discharging;
    (viii) Notify the authority having jurisdiction over fire safety 
where the stored perforating guns are located, in accordance with 
requirements in Sec.  555.201(f); and
    (ix) Notify ATF in writing at <a href="/cdn-cgi/l/email-protection#f9bcb0a9bbb9988d9fd79e968f"><span class="__cf_email__" data-cfemail="387d71687a78594c5e165f574e">[email&#160;protected]</span></a> that the licensee/
permittee will be storing perforating guns outside a locked magazine, 
at least three business days prior to storing them at a given location.
    (2) Additional indoor conditions. Licensees/permittees storing 
perforating guns in an indoor location must also:
    (i) Store no more than 50 pounds of explosives inside any building 
or structure unless the building or structure meets the quantity and 
distance requirements in Sec.  555.218 and the building or structure is 
occupied solely by the licensee/permittee to support their explosives 
operations; and
    (ii) Lock the building or structure housing the loaded perforating 
guns or have a responsible person or employee possessor attend it, at 
all times, to prevent unauthorized access.
    (3) Additional outdoor conditions. Licensees/permittees storing 
perforating guns in an outdoor location must also:
    (i) Secure the perimeter of the area(s) containing loaded 
perforating guns using a security fence with a locked gate or enclose 
the entire facility with a security fence that has a locked gate at 
each entrance point. The security fence must be at least six feet high 
and have firmly anchored posts to ensure its structural stability. The 
gates must be locked at all times securely enough to prevent 
unauthorized access;
    (ii) Lock the doors on vehicles or trailers containing perforating 
guns and

[[Page 60920]]

immobilize the vehicle or trailer to prevent it from moving, being 
moved, or being accessed without authority (e.g., using a kingpin 
locking device, steering wheel locking device, lockable disconnect, 
etc.). Remove the ignition key and secure it away from the vehicle;
    (iii) Park all vehicles or trailers loaded with perforating guns in 
an area not susceptible to fire propagation (e.g., on bare dirt, 
gravel, rock, paving, or closely mowed grass); and
    (iv) Comply with the quantity and distance requirements in Sec.  
555.218 for each outdoor area or vehicle containing perforating guns, 
but store no more than 2,500 pounds of net explosives weight in each 
outdoor area or vehicle containing perforating guns.


Sec.  555.209  [Removed and reserved]

0
4. Remove and reserve Sec.  555.209.

Robert Cekada,
Director.
[FR Doc. 2026-19692 Filed 9-24-26; 8:45 am]
BILLING CODE 4410-FY-P


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This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.