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The Wildman makes important inroads with ATF on permits Print E-mail PDF
2007 Archived News by Planet News   
Tuesday, April 17, 2007

ImageVAN ORIN, Illinois USA — Tim Lehr of Wildman Rocketry has been working together with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in an attempt to ease the explosives permitting requirements for individuals involved in hobby rocketry and appears to have made significant progress, producing a set of guidelines authored by ATF on how to set up a rocketry club to act as an explosives gatekeeper.

Nationwide, many members of hobby rocketry organizations live in apartments and multi-family dwellings that do not allow for the storage of explosives materials, so an explosives permit for them isn't possible. Enter Tim Lehr. Since October of 2006, Lehr has exchanged communications with the ATF seeking relief for rocketry clubs who have been experiencing difficulty for members who couldn't qualify for their own explosives permit due to storage and other considerations.

Word had circulated late last year that ATF had made reference to similar club arrangements but nothing specific was ever disclosed. This is the first concrete evidence of a structured rocketry club organizational recommendation that would allow a non-person entity to be the recognized holder of the federal explosives permit. While this is nothing new within the rest of the explosives community, it is new ground for the rocketry hobby.

The recommended procedure is for a given rocketry club to incorporate itself according to applicable local and state laws, taking ATF's recommendations into consideration, which would provide for the identification of key responsible persons for the club's operations with regard to explosive materials in the Articles of Incorporation and/or bylaws, and that these key persons then be listed on the club's federal explosives permit. These documents would also include specifics of what members would be allowed to perform on behalf of the club and how the club would insure compliance with applicable laws.

The operation of the club would then allow for the named key individuals, considered "responsible persons," to be responsible for all regulated motors, igniters, black powder and other explosive materials going into and out of the club magazine. These responsible persons would place orders for regulated materials from licensed dealers and transfer the order into the club magazine, making the appropriate entries in the club's magazine records. At a launch, these responsible persons would dole out the materials to club members for use on-site, again making the appropriate entries in the club's magazine records. Any materials not used during that day would have to be returned to the responsible persons for re-entry back into the club magazine and magazine's records.

Lehr appears to have uncovered a diamond in the rough here, since regardless of the outcome of the TRA/NAR lawsuit with the ATF, which only deals with ammonium perchlorate composite propellant (APCP) single-use motors and motor reload kits, igniters and explosive powders used in deployment charges such as black powder would still be considered regulated explosives, requiring a federal permit for purchase and storage.

The arrangement could also prove very beneficial for Tripoli prefectures that participate in experimental research activities as well.  Under the Safe Explosives Act (SEA) of 2002, while individuals are allowed to manufacture propellant for their own personal use without a federal explosives permit, once mixed, the propellant could not be transported by the individual over local roads or highways to a launch site, even within the individual's state of residence. For this reason, since the implementation of SEA in March of 2003, home-made propellants would have had to be mixed "on-site" so that no transportation occurred if the individual making the propellant did not have a federal explosives permit. Using an incorporated club arrangement, a responsible person from the club could accept for transport the research propellant for the individual participating in research activities and then transport it to the launch site along with the rest of the club's restricted materials.

Lehr did a lot of work putting this together and the effort paid off with the long-awaited response from ATF finally showing up this week. "Even though I am not on the Tripoli or NAR BOD, I am still working to make our hobby better," Lehr said. "To help things along, I will offer an extra 2% off all motor orders that are shipped to the club magazine holder for clubs that follow these guidelines."

Lehr extended an offer of assistance to interested parties, saying if anyone had any questions, they could call him at 1-866-707-WILD (9453). The body of the ATF letter to Lehr is included below and the original letter and ATF attachment for forming incorporated clubs attached. Finally, the list of nine restrictions referenced in the ATF letter follow at the end of this article.

Documents:



April 13, 2007

Mr. Tim Lehr
Wildman Hobbies
P.O. Box 33
Van Orin, IL 61374

Dear Mr. Lehr:

This letter is in response to your December 28, 2006, inquiry to the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). You requested information regarding the activities that may be conducted under a hobby rocket club explosives permit. We sincerely apologize for the delay in our response.

Specifically, you have asked whether a local club may incorporate, obtain a Federal permit from ATF as an incorporated entity, and lawfully operate at rocket launches using the club's permit. As we understand it, the club would be receiving all the explosives under its ATF permit; properly recording the receipt of the explosives; properly storing all explosives materials; and properly maintaining records of that storage. All of these activities would be done in conformity with the Federal explosives laws and implementing regulations set forth in 27 CFR, Part 555.

ATF has determined that clubs may be established to properly conduct the activities you describe. Since each club's circumstances are unique, ATF cannot provide definitive guidance on a particular situation without additional facts. However, we believe the following considerations will assist clubs in complying with the Federal explosives laws and regulations.

1. Any club that incorporates should do so according to all applicable State and local laws.

2. A club that forms a corporation should ensure that its Articles of Incorporation designate persons responsible for the club's operations, and that these persons are identified on the ATF explosives permit application as responsible persons.

3. The club's Articles of Incorporation, its bylaws, or both, should specify what activities members may conduct on behalf of the club and how the club will ensure that club members comply with all appropriate laws and regulations. Each individual club can provide various levels of authorization to its members. Attached is a listing of items to consider when developing a club.

Additionally, you provided a document that you developed listing nine questions to assist the club in determining whether a club member may be prohibited from possessing explosives. This list of questions may be found on the current ATF Form 5400.13 Application for a License or Permit and on the ATF Form 5400.28 Employee Possessor Questionnaire. While this is not a requirement under the law, this would be an allowable procedure. Neither the club, nor the responsible persons are under any affirmative obligation to determine a member's status. Bear in mind that having such a document on hand would not totally provide protection for the club or the responsible persons. For example, if a club member filled out the form and answered "yes" that they are a prohibited person, the club would then have knowledge of the individual's prohibited status and must ensure that the individual does not have access to explosives. If a club actually knew a member was prohibited prior to completing the form and tried to use negative answers provided by the member as justification for letting that member have access, there would still be a violation of the law. One additional consideration is that most aliens are prohibited from possessing explosives. Therefore, if the club has members that are not citizens of the United States, those members may not possess explosives unless they have received relief from disability from ATF.

We hope these considerations are useful. However, should you or other rocketry hobbyists have additional questions, please feel free to submit them to the Explosives Industry Programs Branch at This email address is being protected from spam bots, you need Javascript enabled to view it  and we will provide a response.

/s/
Gary L. Bangs
Chief, Explosives Industry
Programs Branch

c: All Special Agents in Charge
    All Directors of Industry Operations

Attachment


Attachment: Rocket Club Development Guidance (04/2007)

(1) Specific wording allowing members to possess and launch rockets containing explosives materials at club launches only under the direction of persons responsible for club activities;

(2) Specific requirements that explosive materials, including regulated rocket motors, igniters, black powder, or other explosive mixtures may not leave the designated launch site unless by a club responsible person;

(3) Requirements that club members may not be prohibited by law from possessing explosives under any of the provisions of any Federal, State or local explosives laws. Similarly, requiring that the club may not knowingly permit any prohibited person access to possess explosives;

(4) Club members may be authorized to purchase rocket motors or other explosive materials but only on behalf of the club. The authorization must specify that any explosives obtained under the club permit by any member become the property of the club;

(5) Any explosive materials remaining after the launch must be properly stored by the club;

(6) The club is responsible for ensuring compliance with all of the storage, recordkeeping, and conduct of business regulations. This includes the obligation to ensure records of receipt are properly maintained, including all the required information in the regulation. If commercial documents are utilized the invoice must contain all the required information including the ATF license or permit numbers of the distributor and distributee. For the storage magazine, a daily summary of magazine transactions must be maintained as product flows into and out of the storage magazine;

(8) Although Federal regulations do not require usage records by user permittees, it is recommended some sort of internal documents are in place controlling use of the products at the launch;

(9) The club must comply with all other Federal, State, and local explosives regulations as applicable.


The nine questions referenced in the ATF letter were developed from this excerpt of the federal law:

It shall be unlawful for any person knowingly to distribute explosive materials to any individual who:
(1) is under twenty-one years of age;
(2) has been convicted in any court of a crime punishable by imprisonment for a term exceeding one year;
(3) is under indictment for a crime punishable by imprisonment for a term exceeding one year;
(4) is a fugitive from justice;
(5) is an unlawful user of or addicted to any controlled substance (as defined in section 102 of the Controlled Substances Act (21 U.S.C. 802));
(6) has been adjudicated a mental defective or who has been committed to a mental institution;
(7) is an alien, other than an alien who—
 (A) is lawfully admitted for permanent residence (as defined in section 101(a)(20) of the Immigration and Nationality Act);
 (B) is in lawful nonimmigrant status, is a refugee admitted under section 207 of the Immigration and Nationality Act (8 U.S.C. 1157), or is in asylum status under section 208 of the Immigration and Nationality Act (8 U.S.C. 1158), and—
  (i) is a foreign law enforcement officer of a friendly foreign government, as determined by the Secretary in consultation with the Secretary of State, entering the United States on official law enforcement business, and the shipping, transporting, possession, or receipt of explosive materials is in furtherance of this official law enforcement business; or
  (ii) is a person having the power to direct or cause the direction of the management and policies of a corporation, partnership, or association licensed pursuant to section 843 (a), and the shipping, transporting, possession, or receipt of explosive materials is in furtherance of such power;
 (C) is a member of a North Atlantic Treaty Organization (NATO) or other friendly foreign military force, as determined by the Attorney General in consultation with the Secretary of Defense, who is present in the United States under military orders for training or other military purpose authorized by the United States and the shipping, transporting, possession, or receipt of explosive materials is in furtherance of the authorized military purpose; or
 (D) is lawfully present in the United States in cooperation with the Director of Central Intelligence, and the shipment, transportation, receipt, or possession of the explosive materials is in furtherance of such cooperation;
(8) has been discharged from the armed forces under dishonorable conditions;
(9) having been a citizen of the United States, has renounced the citizenship of that person.


Post 04-17-2007 04:33 PM  #1
ksaves2
Certified Level Two
 
Joined: Sep 2006
Posts: 16
 
None Club Incorporation
This is an excellent alternative to pursue and have the groundwork laid if the
lawsuit doesn't result in any relief from regulation. Even if APCP falls off the list,
there still is the issue of ematches and BP. BP is easier to work around but ematches are a bit more difficult. True, one can get the kits and become proficient in making them for their own consumption but to be frank, it is easier to be able to buy them.
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Post 04-21-2007 10:54 AM  #2
Steve_Shannon
Will fly beer for rockets
 
Joined: Aug 2006
Posts: 1653
 
None Junior membership
These documents do not address how to handle junior members (or I missed it.) I don't think that will be a problem but the bylaws of the club (which must be submitted to the Attorney General when incorporating) will probably need some wording that defines junior membership and establishes that they are not allowed to handle items covered under the LEUP.
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Post 04-21-2007 12:28 PM  #3
UhClem
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Joined: Oct 2006
Posts: 106
 
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Quote:
These documents do not address how to handle junior members (or I missed it.) I don't think that will be a problem but the bylaws of the club (which must be submitted to the Attorney General when incorporating) will probably need some wording that defines junior membership and establishes that they are not allowed to handle items covered under the LEUP.



Age is not one of the things that prohibits you from possessing explosives. The list is at 18 USC 842(i).

Anyone under 21 would likely be prevented from holding any club office that made them a "responsible person". This is because the list of things that prohibit you from receiving explosives (18 USC 842(d)) while otherwise being identical to 842(i), includes age.

As for the ATF's "advice" on this issue, it is really quite worthless. For a better example I would first look to someone who has been doing this for a while. For example:

http://www.fireants.org/
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Post 04-21-2007 12:45 PM  #4
crontab
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Joined: Aug 2006
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Quote:
Age is not one of the things that prohibits you from possessing explosives.

This is because the list of things that prohibit you from receiving explosives (18 USC 842(d)) while otherwise being identical to 842(i), includes age.

Your comments are confusing. In the first paragraph, you state that age is not one of the things that prohibits you from possessing explosives. In your second paragraph, you state that the list of things that prohibit you from receiving explosives includes age. Are you somehow differentiating between possession and reception? My read on the rules is:
It shall be unlawful for any person knowingly to distribute explosive materials to any individual who: (1) is under twenty-one years of age;
Close enough to "no one under 21 can have, hold, use, etc. explosives" for me.
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Post 04-21-2007 01:26 PM  #5
Steve_Shannon
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Quote:

As for the ATF's "advice" on this issue, it is really quite worthless.



Maybe so, but since they are the ones who arrest people, they are the ones whose rules (incorrect as I believe them to be) I will follow. It just seems safer that way!
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Post 04-21-2007 01:28 PM  #6
UhClem
Certified Level Three
 
Joined: Oct 2006
Posts: 106
 
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Quote:
Your comments are confusing. In the first paragraph, you state that age is not one of the things that prohibits you from possessing explosives. In your second paragraph, you state that the list of things that prohibit you from receiving explosives includes age. Are you somehow differentiating between possession and reception? My read on the rules is:
It shall be unlawful for any person knowingly to distribute explosive materials to any individual who: (1) is under twenty-one years of age;
Close enough to "no one under 21 can have, hold, use, etc. explosives" for me.



The law distinguishes between simple possession and distribution. It isn't well written but it does. Distribution is actually restricted to licensees and permittees at 18 USC 842(b). The additional restriction at 18 USC 842(d) made sense before 2003 when in state transactions didn't require a permit. Whoever wrote the SEA failed to clean it up.

If someone is 18 I cannot sell them a regulated item. Or give it to him. But I can let him handle, for example, a motor reload kit. I can also let him assemble the motor. During this process he is in possession of it. If he falls into one of the categories at 18 USC 842(i) he cannot do this.

See also question 7 of : http://www.atf.gov/explars...documents/scenarioqa.pdf
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Post 04-21-2007 09:58 PM  #7
crontab
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Quote:
But I can let him handle, for example, a motor reload kit. I can also let him assemble the motor. During this process he is in possession of it.

He might be in physical possession, but you are still in constructive possession of it, because a transfer has not taken place. At least not as far as the ATF is concerned, because there is no paper trail that the motor has left your possession. You are still on the hook.
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Post 04-22-2007 03:47 PM  #8
Steve_Shannon
Will fly beer for rockets
 
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Quote:
The law distinguishes between simple possession and distribution. It isn't well written but it does.

I see your point. Now, I just need to figure out what changes may be needed in our by-laws. The pyro artist link you provided was helpful, rhank you. One think I know is that the more rules that we adopt the more constrained we are. We will want to minimally meet the letter and spirit of the ATF advice document, but no more.

This is where national leadership (i.e. drafting boilerplate bylaws for this purpose) could help prevent all the small clubs duplicating efforts.
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Post 04-22-2007 10:23 PM  #9
crontab
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This is where national leadership (i.e. drafting boilerplate bylaws for this purpose) could help prevent all the small clubs duplicating efforts.

They're too busy re-arranging deck chairs on the Titanic to be interested in helping draft boiler plate bylaws. This should have been done concurrent with filing a lawsuit seven years ago, but it wasn't, and it appears the national leadership isn't going to do anything until they've given every last cent of the legal fund donations to Mssrs. Malsch, Egan and Fitpatrick.

Just think if we had gotten all of the clubs equipped with their own permit, gatekeepers and magazines in 2000, while the lawsuit was progressing, imagine how many of those rocketeers we have lost since then who might still be in the hobby. We have no fall-back plan, we've bet everything on this lawsuit. It we lose, the only people who have benefitted from those legal fund donations are the attorneys.
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Post 04-22-2007 10:58 PM  #10
StuBarrett
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Quote:

We have no fall-back plan, we've bet everything on this lawsuit.



What about this as a fall back plan?

Quote:

Get all of the clubs equipped with their own permit, gatekeepers and magazines ...





Stu
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Post 04-23-2007 10:44 AM  #11
Aphyle
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Joined: Dec 2006
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There's also legislative relief to keep working on, short of a court ruling in our favor. That is how the BP 50 lb limit came about originially. Certainly not an easy path, but at least there is good data now to make arguments with.

Eric
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