Permit for Equivalent Level of Safety

Permit No.: SU 8717

Permit Holder: The Lite Cylinder Company, Inc.

Mode of Transport: Road, Rail, Air, Marine

Issue Date: December 18, 2008

Expiry Date: January 31, 2014

CONDITIONS

This Permit for Equivalent Level of Safety authorises The Lite Cylinder Company, Inc. to sell, offer for sale, distribute, or deliver in Canada, and authorises any person to handle, offer for transport, transport, or import into Canada, by road or railway vehicle, by aircraft or by ship, cylinders in a manner that does not comply with sections 5.1 and 5.2, subparagraphs 5.10(1)(a)(i) and 5.10(1)(b)(i), paragraph 5.10(1)(c), subparagraph 5.10(1)(d)(i), subsection 5.10(2), and subsection 5.10(5) of the Transportation of Dangerous Goods Regulations, if:

Selection and Use

(a) subject to paragraphs (b) to (h), the requirements applicable to Specification TC‑3FCM cylinders in National Standard of Canada CAN/CSA B340-02, "Selection and Use of Cylinders, Spheres, Tubes, and Other Containers for the Transportation of Dangerous Goods, Class 2", October 2002, as amended in January 2004 and February 2005, cited in the rest of this Permit as CAN/CSA B340-02, are complied with;

Issue Date: December 18, 2008

Permit for Equivalent Level of Safety

SU 8717

CONDITIONS

(b) despite clause 4.6.2 of CAN/CSA B340-02 each cylinder is used for propane, Class 2.1, UN1978;

(c) cylinders that have been subjected to excessive heat or fire are not returned to service;

(d) not more than 15 years has elapsed since the original manufacturing test date for each cylinder;

(e) the packaging requirements specified in clause 4.9 do not apply;

(f) instead of the standards of inspection specified in clause 5.1.3(c) of CAN/CSA B340‑02, the visual inspection requirements specified in paragraph (v) of this Permit apply;

(g) despite clause 5.1.4(b) of CAN/CSA B340-02, before being filled, cylinders due for requalification are requalified in accordance with the requirements specified in paragraph (v) of this Permit. Cylinders that do not meet the prefill inspection shall be rejected and not filled until the cause for rejection has been corrected;

(h) clause 5.3.4.1 of CAN/CSA B340-02 does not apply except that the filling density is in accordance with Table 5.3 of CAN/CSA B340-02;

Manufacture and Requalification

(i) subject to paragraphs (j) to (v), each cylinder is designed, constructed, and initially inspected and tested in accordance with International Standard ISO 11119‑3:2002, "Gas cylinders of composite construction - Specification and test methods - Part 3: Fully wrapped fibre reinforced composite gas cylinders with non-load-sharing metallic or non-metallic liners", cited in the rest of this Permit as ISO 11119-3:2002;

(j) each cylinder is constructed at The Lite Cylinder Company, Inc., Franklin, TN, U.S.A. in accordance with the quality systems manual, the specific procedures, the design qualification test reports, and drawing number DOT-10-100-D0001 and DOT‑10‑100‑D0002, dated July 19, 2007 for the "10-lb" design, or DOT-20-100-D0003 and DOT-20-100-D0004, dated May 19, 2008 for the "20-lb" design, filed by the Permit holder with the Transport Dangerous Goods Directorate;
Issue Date: December 18, 2008

Permit for Equivalent Level of Safety

SU 8717

CONDITIONS

(k) each cylinder constructed in accordance with drawing numbers DOT-10-100-D0001 and DOT-10-100-D0002 has a minimum sidewall thickness of 5.1 mm, a maximum outside diameter of 240.2 mm, and a minimum water capacity of 11.1 L;

(l) each cylinder constructed in accordance with drawing numbers DOT-20-100-D0003 and DOT-20-100-D0004 has a minimum sidewall thickness of 6.5 mm, an outside diameter of 312.9 mm, and a minimum water capacity of 19.8 L;

(m) each cylinder is linerless and is constructed from two parts joined together by an adhesive. The parts are constructed by wrapping fiberglass filament over a mandrel in both the longitudinal and circumferential directions and subsequently injecting resin into the pre-form under vacuum. Each cylinder is protected by a thermoplastic outer casing;

(n) the filament material is commercial Type-E fiberglass tested in accordance with ASTM Standard D 2343-03, "Standard Test Method for Tensile Properties of Glass Fiber Strands, Yarns, and Rovings Used in Reinforced Plastics", and has a minimum strand strength of 1380 MPa;

(o) the resin system is vinyl ester based and is tested on sample coupons representative of the composite overwrap, in accordance with ASTM Standard D 2344/D 2344M‑00(2006), "Standard Test Method for Short-Beam Strength of Polymer Matrix Composite Materials and Their Laminates", and has a minimum shear strength of 34.5 MPa;

(p) inspections and verifications are in accordance with the requirements of ISO 11119‑3:2002 and carried out by an Independent Inspector registered with Transport Canada in accordance with clause 25.4 of National Standard of Canada CAN/CSA B339-02, "Cylinders, Spheres, and Tubes for the Transportation of Dangerous Goods", October 2002, as amended in November 2003 and February 2005, cited in the rest of this Permit as CAN/CSA B339-02. In addition, the Independent Inspector:

(i) performs or witnesses the burst test, the drop test, the high velocity impact (gunfire) test, the fire resistance test, the torque test, and the water boil test,

(ii) for each new cylinder design, prepares a report that includes, as a minimum, all information shown in annex A of ISO 11119-3:2002; and

Issue Date: December 18, 2008

Permit for Equivalent Level of Safety

SU 8717

CONDITIONS

(iii) for each cylinder batch, prepares a report that includes, as a minimum, all information shown in annex B of ISO 11119-3:2002. The reports are retained by the manufacturer and by the Independent Inspector for the service life of the cylinders;

(q) the proof pressure test specified in clause 8.5.1 of ISO 11119-3:2002 is performed hydraulically or pneumatically. The test system components and test system accuracy verification requirements comply with Compressed Gas Association Publication C-1:2006, "Methods for Hydrostatic Testing of Compressed Gas Cylinders";

(r) the burst test specified in Clause 8.5.3 of ISO 11119-3:2002 is performed and the cylinder remains in one piece. Leakage through the boss fusion joint is permitted, provided that the pressure at failure is a least 4 times the design service pressure;

(s) the fire resistance test specified in clause 8.5.11 of ISO 11119-3:2002 is performed on the representative cylinders until venting is complete. Venting may occur through the pressure-relief device or through the cylinder wall or other surfaces. The cylinder shall not burst and shall remain in one piece;

(t) the requirements specified in clause 4.3 and 4.14 of CAN/CSA B339-02 apply;

(u) each cylinder is permanently marked in accordance with clause 4.17 of CAN/CSA B339-02, except the Transport Canada mark, the specification designation and the service pressure are replaced with "TC-SU 8717" followed by the service pressure expressed in bar. In addition to these marks, each cylinder shall be permanently and legibly marked with:

(i) the letter "T" followed by the tare (in kilograms) and the unit symbol "kg",

(ii) the text "Max Propane" followed by the maximum mass of propane (in kilograms) and the unit symbol "kg",

(iii) the text "requalification required 5 years from date of manufacture / requalification requise 5 ans après la date de fabrication", and

(iv) the text "cylinder service life expires 15 years from date of manufacture/durée de vie de la bouteille à gaz vient à échéance 15 ans après sa date de fabrication";

Issue Date: December 18, 2008

Permit for Equivalent Level of Safety

SU 8717

CONDITIONS

The size of the marks shall be not less than 5 mm in height;

(v) each cylinder is requalified at least every five years in accordance with the following conditions:

(i) the requalification is performed by a facility registered for requalifying TC-3FCM specification cylinders in accordance with clause 25.3 of CAN/CSA B339-02,

(ii) an external visual inspection is conducted on the exposed composite areas in accordance with Appendix A of this Permit. The inspection is performed with the outer casing in place using a high intensity light,

(iii) a visual inspection is conducted on the outer casing in accordance with Appendix B of this Permit. The inspection is performed with the outer casing in place,

(iv) removal or replacement of the outer casing is only performed by personnel authorized by the manufacturer,

(v) cylinders meeting the criteria for rejection in Appendix A or Appendix B are condemned in accordance with CAN/CSA B339-02. Repairs are not authorized,

(vi) a requalification marking is applied in accordance with clause 24.6.3 of CAN/CSA B339-02. The marking is applied on a label securely affixed to the exposed dome of the cylinder and overcoated with epoxy. Stamping of any part of the cylinder is prohibited, and

(vii) the requalification report is kept for the service life of the cylinder. The report shall include, as a minimum, the inspection results for each type of damage described in Appendix A and B of this Permit. The owner of the cylinder and the person who prepared the report shall each keep a copy of the report for the service life of the cylinder;

(w) the Permit holder reports any incident involving loss of contents or failure of the cylinders to the Director, Regulatory Affairs Branch, Transport Dangerous Goods Directorate, Transport Canada; and

Issue Date: December 18, 2008

Permit for Equivalent Level of Safety

SU 8717

CONDITIONS

(x) before the expiry date of this Permit, the Permit holder reports a summary of the cylinder manufacturing and performance experience to the Director, Regulatory Affairs Branch, Transport Dangerous Goods Directorate, Transport Canada.

This Permit for Equivalent Level of Safety serves as the registration of The Lite Cylinder Company, Inc., pursuant to Clause 25.2 of CAN/CSA B339-02, to manufacture cylinders of the designs specified herein. The Lite Cylinder Company, Inc.'s registered mark, pursuant to CAN/CSA B339-02, is:

M5729

Note: The issuance of this Permit for Equivalent Level of Safety in no way reduces the permit holder's responsibility to comply with any other requirements of the Transportation of Dangerous Goods Regulations not specifically addressed in this Permit.

Signature of Issuing Authority

Original signed by

_____________________________

David Lamarche P. Eng., ing.

Chief

Permits and Approvals Division

Issue Date: December 18, 2008

Permit for Equivalent Level of Safety

SU 8717

(The following is for information purposes only and is not part of the permit)

Contact Person: Darrel Reifschneider

Quality Assurance Manager

The Lite Cylinder Company, Inc.

139 Southeast Parkway Court

Franklin, TN 37064

U.S.A.

Telephone: 615-595-7988

Facsimile: 615-599-3190

Explanatory Note

The Permit holder has demonstrated that the manufacture of a cylinder in accordance with Standard ISO 11119-3:2002 and the conditions specified herein results in a cylinder which could be used with equivalent safety to that of a TC‑3FCM specification cylinder. This Permit authorises the manufacture and use of these cylinders under the Transportation of Dangerous Goods Regulations.

Legend for Permit Number

SH - Highway, SR - Rail, SA - Air, SM - Marine

SU - More than one Mode of Transport

Ren. - Renewal

Issue Date: December 18, 2008

Permit for Equivalent Level of Safety

SU 8717

NOTE

Under Canadian Law, a foreign manufacturer of non-specification cylinders cannot be charged with an offence under the Transportation of Dangerous Goods Act, 1992 for failure to comply with the conditions of a Permit. However, certain remedies under the Act are available to Transport Canada in this eventuality.

These include:

1. detention of dangerous goods and consequently the cylinder containing them (subsection 17(1));

2. detention of the cylinders whether full or empty (subsection 17(2));

3. directions not to import the cylinders or to return them to origin (subsection 17(4));

4. inspectors' directions (subsection 19(2));

5. directions to importers of the cylinders to issue notices of defective construction or recall (subsection 9(2)); and

6. revocation of the Permit, thereby making any use of the cylinders an offence

(section 31).

If none of the foregoing are adequate, Protective Directions may be issued to prohibit or to control the use of the cylinders (section 32).

Issue Date: December 18, 2008

Permit for Equivalent Level of Safety

SU 8717

Appendix A

Cylinder Visual Inspection Acceptance/Rejection Criteria

Type of Damage	Description	Rejection Limits
Abrasion damage or damage from cuts	Abrasion damage is caused by wearing, grinding or rubbing material away by friction. Cuts are caused by damage from sharp objects.	Depth: more than 5% of the minimium sidewall thickness. or Total length of cut(s) exceeds more than 50% of the outside diameter of the cylinder. or Diameter of the damaged area exceeds more than 50% of the outside diameter of the cylinder. Notes: 1) The diameter of the damaged area is defined as the diameter of the smallest circle which includes the damaged area. 2) Intra-laminar hairline cracks (between fibres, typically on the circumference after proof testing) are allowed if not in combination with impact damage. 3) Scratches that do not sever a fibre are not included in the above.

Issue Date: December 18, 2008

Permit for Equivalent Level of Safety

SU 8717

Appendix A

Cylinder Visual Inspection Acceptance/Rejection Criteria

Delamination and impact damage	An Inter-laminar delamination is a separation of layers of strands. An Intra-laminar delamination is a separation between strands within the same layer. It may appear as a whitish patch like a blister or an air bubble beneath the surface. Impact damage may appear as hairline cracks in the resin or delamination or cuts in the composite cylinder wall.	Impact damage that has caused surface damage including delamination is not acceptable. Impact damage made by a pointed object that has caused delamination and surface damage is not acceptable. A delamination that runs through more than one layer is not acceptable. A delamination that is not in combination with other damage and covering more than 30% of the cylinder is not acceptable. No fibre strands shall be cut.
Chemical damage	Chemical attack would appear as the dissolution of the resin matrix surrounding the fibres, the cylinder surface feeling sticky when touched. Cylinders with this type of damage shall be condemned.	Chemical attack resulting in damage to the resin matrix surrounding the fibres is not acceptable.
Heat/fire damage of the cylinder	Heat or fire damage may be evident by discoloration, scarring or burning of the composite cylinder wall, casing, labels, and non-metallic components of the valve. Cylinders with this type of damage shall be condemned.	Visible damage to the cylinder wall from heat and/or fire is unacceptable.

Issue Date: December 18, 2008

Permit for Equivalent Level of Safety

SU 8717

Appendix B

Outer Casing Visual Inspection Acceptance/Rejection Criteria

Type of Damage	Description	Rejection Limits
Damage of casing	The casing shall be inspected in order to determine that it is intact. A cylinder with a casing that is broken or damaged in such a way that it will not be able to protect the cylinder satisfactorily shall be taken out of service until the outer casing is repaired. Examples of such damage are broken foot rings, broken handles, broken or missing rivets, etc.	Minor damage that does not affect the protective function of the casing is acceptable. Acceptable damage shall be limited to minor cracks and abrasion (see Figure 1). Unacceptable damage is a broken casing. The casing shall then be removed and the cylinder inspected underneath. A damaged cylinder is unacceptable. If the cylinder is not damaged and does not exceed the rejection limits, a new casing may be assembled and installed. (See Figure 2 and 3).
Heat/fire damage of the casing or cylinders	Heat or fire damage may be evident by discoloration, scarring or burning of the composite cylinder wall, casing, labels, and non-metallic components of the valve. Cylinders with this type of damage shall be condemned.	Visible damage from heat and/or fire is unacceptable. (See Figure 4).

Issue Date: December 18, 2008

Permit for Equivalent Level of Safety

SU 8717

Figure 1

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Casing affected by minor abrasion - acceptable.

Figure 2

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Broken casing - unacceptable. The casing shall be removed

and the cylinder inspected. If the cylinder is not damaged, a

new casing may be installed.

Issue Date: December 18, 2008

Permit for Equivalent Level of Safety

SU 8717

Figure 3

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Broken rivet or rivets pulled out - unacceptable. If the cylinder is undamaged, the rivet may be replaced or the complete casing may be replaced.

Figure 4

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Visible damage from heat and/or fire to the casing - unacceptable. If the cylinder is undamaged with no evidence of heat/flame impingement, a new casing may be installed. Cylinders with fire or heat damage shall be condemned.