Per NFPA 500
(1) Class I, Division 1. A Class I, Division 1 location is a location
(1) In which ignitible concentrations of flammable gases, flammable liquid?produced vapors, or combustible liquid?produced vapors can exist under normal operating conditions, or
(2) In which ignitible concentrations of such flammable gases, flammable liquid?produced vapors, or combustible liquids above their flash points may exist frequently because of repair or maintenance operations or because of leakage, or
(3) In which breakdown or faulty operation of equipment or processes might release ignitible concentrations of flammable gases, flammable liquid?produced vapors, or combustible liquid?produced vapors and might also cause simultaneous failure of electrical equipment in such a way as to directly cause the electrical equipment to become a source of ignition.
FPN No. 1: This classification usually includes the following locations:
(1) Where volatile flammable liquids or liquefied flammable gases are transferred from one container to another
(2) Interiors of spray booths and areas in the vicinity of spraying and painting operations where volatile flammable solvents are used
(3) Locations containing open tanks or vats of volatile flammable liquids
(4) Drying rooms or compartments for the evaporation of flammable solvents
(5) Locations containing fat- and oil-extraction equipment using volatile flammable solvents
(6) Portions of cleaning and dyeing plants where flammable liquids are used
(7) Gas generator rooms and other portions of gas manufacturing plants where flammable gas may escape
(8) Inadequately ventilated pump rooms for flammable gas or for volatile flammable liquids
(9) The interiors of refrigerators and freezers in which volatile flammable materials are stored in open, lightly stoppered, or easily ruptured containers
(10) All other locations where ignitible concentrations of flammable vapors or gases are likely to occur in the course of normal operations
FPN No. 2: In some Division 1 locations, ignitible concentrations of flammable gases or vapors may be present continuously or for long periods of time. Examples include the following:
(1) The inside of inadequately vented enclosures containing instruments normally venting flammable gases or vapors to the interior of the enclosure
(2) The inside of vented tanks containing volatile flammable liquids
(3) The area between the inner and outer roof sections of a floating roof tank containing volatile flammable fluids
(4) Inadequately ventilated areas within spraying or coating operations using volatile flammable fluids
(5) The interior of an exhaust duct that is used to vent ignitible concentrations of gases or vapors
Experience has demonstrated the prudence of avoiding the installation of instrumentation or other electrical equipment in these particular areas altogether or where it cannot be avoided because it is essential to the process and other locations are not feasible [see 500.5(A), FPN] using electrical equipment or instrumentation approved for the specific application or consisting of intrinsically safe systems as described in Article 504.
(2) Class I, Division 2. A Class I, Division 2 location is a location
(1) In which volatile flammable gases, flammable liquid?produced vapors, or combustible liquid?produced vapors are handled, processed, or used, but in which the liquids, vapors, or gases will normally be confined within closed containers or closed systems from which they can escape only in case of accidental rupture or breakdown of such containers or systems or in case of abnormal operation of equipment, or
(2) In which ignitible concentrations of flammable gases, flammable liquid?produced vapors, or combustible liquid?produced vapors are normally prevented by positive mechanical ventilation and which might become hazardous through failure or abnormal operation of the ventilating equipment, or
(3) That is adjacent to a Class I, Division 1 location, and to which ignitible concentrations of flammable gases, flammable liquid?produced vapors, or combustible liquid?produced vapors above their flash points might occasionally be communicated unless such communication is prevented by adequate positive-pressure ventilation from a source of clean air and effective safeguards against ventilation failure are provided.
FPN No. 1: This classification usually includes locations where volatile flammable liquids or flammable gases or vapors are used but that, in the judgment of the authority having jurisdiction, would become hazardous only in case of an accident or of some unusual operating condition. The quantity of flammable material that might escape in case of accident, the adequacy of ventilating equipment, the total area involved, and the record of the industry or business with respect to explosions or fires are all factors that merit consideration in determining the classification and extent of each location.
FPN No. 2: Piping without valves, checks, meters, and similar devices would not ordinarily introduce a hazardous condition even though used for flammable liquids or gases. Depending on factors such as the quantity and size of the containers and ventilation, locations used for the storage of flammable liquids or liquefied or compressed gases in sealed containers may be considered either hazardous (classified) or unclassified locations. See NFPA 30-2008, Flammable and Combustible Liquids Code, and NFPA 58-2008, Liquefied Petroleum Gas Code.
It seems to me that you have a Class 1 Div 2 location there per NFPA.
Thoughts?