Rev. Rul. 54-525

Permission is requested by a denaturing plant proprietor to gauge by volume specially denatured alcohol which is to be withdrawn for shipment in tank cars or tank trucks.

Section 182.90 of Regulations 3, relating to weighing tanks, provides in part that where denatured alcohol is to be removed in tank cars, or in tank trucks (as authorized by section 182.728) or by pipeline, the proprietor of the denaturing plant must provide for use in weighing such denatured alcohol one or more suitable weighing tanks.

Except as provided in this section, the regulations are not specific in respect of the method of gauging denatured alcohol removed from the denaturing plant in tank cars or tank trucks pursuant to the provisions of section 182.728. While the requirements of this section apply in the case of pipleine transfers as well as transfers by tank car or tank truck, it will be noted that section 182.730, authorizing the withdrawal of denatured alcohol by pipeline, provides in part that such alcohol may be `weighed or measured by volume in a tank equipped with suitable scales or a measuring device on the denaturing plant premises.' In view thereof and since the method of gauging denatured alcohol by volume has been found to be generally satisfactory, it is held that, notwithstanding the implication in section 182.90 of Regulations 3, denatured alcohol removed from a denaturing plant in tank cars or tank trucks may be gauged either by weight or by volume.