I don't know anything about the machine-building end of things, only the field wiring, but that kinda sounds more like a Class 1 Div 2 location. I don't know what ANSI and UL and all that would have to say about your machine, but NEC says this:
500.5(B)(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.
Informational Note 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.
Informational Note 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 58-2011, Liquefied Petroleum Gas Code.
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