I am citing from the 2008 Edition of the NEC, because either the text is the same as the 2002 and 2005 Editions or it is clearer and you would eventually arrive at the same conclusions from earlier editions. Other citations are from the most recent Edition of the Standard cited. I have underlined a few things for emphasis.
From NFPA 70-2008
500.4 General.
(A) Documentation. All areas designated as hazardous (classified) locations shall be properly documented. This documentation shall be available to those authorized to design, install, inspect, maintain, or operate electrical equipment at the location.
From NFPA 497-2004:
Scope
...
1.1.2 This recommended practice provides information on specific flammable gases and vapors, flammable liquids, and combustible liquids, whose relevant combustion properties have been sufficiently identified to allow their classification into the groups established by NFPA 70, National Electrical Code? (NEC?), for proper selection of electrical equipment in hazardous (classified) locations. The tables of selected combustible materials contained in this document are not intended to be all-inclusive
.
From API RP500-1997 (Reaffirmed 2002):
1 Scope
1.1 PURPOSE
1.1.1 The purpose of this recommended practice is to provide guidelines for classifying locations Class I, Division l and Class I, Division 2 at petroleum facilities for the selection and installation of electrical equipment Basic definitions given in the 1996 edition of NFPA 70, the National Electrical Code (NEC), have been followed in developing this recommended practice. This publication is only a guide and requires the application of sound engineering judgment.
I emphasize that the purpose of electrical area classification is for the design, installation, inspection, maintenance, or operation of
electrical equipment at the location.
One of my earlier Proposals (1999 cycle) was to eliminate the term
non-hazardous from Articles 500 through 516 and to define
unclassified as a location that had been investigated and found to not be “Classified.” While the initial Proposal was rejected the concepts have subsequently been accepted.
One of the reasons was to recognize that, while an area may not be “Classified,” other hazards may well exist – such as those mentioned by quogueelectric. Nevertheless, those hazards are outside the scope of the Articles 500 through 516 and would be unaffected by electrical area classification and the wiring methods addressed in the OP.
They are addressed in other safety documents such as NFPA 30A-2008,
Code for Motor Fuel Dispensing Facilities and Repair Garages.
NEC-2008, Section 511.3 has been totally reformatted and Section 511.2 “Definitions” has been added. The definitions for Major and Minor Repair Garages have been added. The definitions are directly taken from NFPA 30A.
Whether the facility is a “major” or “minor” facility and whether it is well ventilated or not does not alter the fact that Section 501.15(B)(2), Exception No. 1 is still the proper wiring method if it is classified.
Edit: Italicized
Code for Motor Fuel Dispensing Facilities and Repair Garages.