The COTP may require the facility to install monitoring devices if the installation of monitoring devices at the facility would significantly limit the size of a discharge of oil or hazardous material and either:

1. (a) The environmental sensitivity of the area requires added protection;
2. (b) The products transferred at the facility pose a significant threat to the environment; or
3. (c) The size or complexity of the transfer operation poses a significant potential for a discharge of oil or hazardous material.

[CGD 75-124, 45 FR 7172, Jan. 31, 1980, as amended by CGD 86-034, 55 FR 36253, Sept. 4, 1990]