,\ 

## t UNITED STATES DEPARTMENT OF TRANSPORTATION OFFICE OF HEARINGS

WASHINGTON, D.C. 

# RECEIVED

IN THE MATTER OF GRANT AVIATION, INC. 

## MAR 082013 

## HEARING DOCKET

FAA DOCKETNOS. 2013-AWA-CPP-16670, 2013-AWA-CPP-17427, 2013-AWA-CPP17429, 2013-AWA-CPP-17430,2013-AWA-CPP-17431,& 2013-AWA-CPP-17575 (Civil Penalty Proceedings)
FDMS NOS. FAA-2012-1261, FAA-2012-1265, FAA-2012-1266, FAA-2-12-1267, FAA-2012-2168, and FAA-2013-0041 COMPLAINANT'S MOTION TO TERMINATE PROCEEDINGS On February 26, 2013, the parties reached an agreement to settle these matters. A copy of this agreement is attached. Pillsuant to the settlement agreement and in accordance with § 13.215 ofthe Rules ofPractice, Complainant hereby withdraws the Complaints in these matters and requests that the assigned administrative lawjudge issue an Order terminating these proceedings withprejudice.
Respectfully submitted this 28th day ofFebruary 2013. HOWARD L. MARTIN, JR Regional Counsel
By: Glenn H. Brown Senior Attorney 1,,.•.••1

.. 

# -**~**..1 f.; I

r··....

) : ..:,.;**~** co•. \ 

# t

Re: Grant Aviation, Inc. FAA DOCKET NOS. 2013-A WA-CPP-16670, 2013-A WA-CPP-17427, 2013-A WA-CPP17429, 2013-AWA-CPP-17430,2013-AWA-CPP-17431,& 2013-AWA-CPP-17575 FDMS NOS. FAA-2012-1261, FAA-2012-1265, FAA-2012-1266, FAA-2-12-1267, FAA2012-2168, and FAA-2013-0041 I hereby certify that on this date I served a copy ofthe COMPLAINANT'S MOTION TO TERMINATE PROCEEDINGS by postage-prepaid, certified mail, return receipt requested, addressed as follows: The Honorable Richard C. Goodwin Office ofHearings, M-20; U.S. Department ofTransportation 1200 NewJersey Avenue, S.E. East Building Ground Floor, Room E12-320 Washington, DC 20590 R. Bruce McGlasson President, Grant Aviation, Inc. P.O. Box 92200 Anchorage, AK 99509
I further certify that onthis date I have served the original and a copy ofthe COMPLAINANT'S MOTION TO TERMINATE PROCEEDINGS bypostage-prepaid, certified mail, return receipt requested, addressed as follows: Federal Aviation Administration 800 Independence Avenue, SW Washington, DC 20591 ATTN: Hearing Docket Clerk, AGC-430 Wilbur Wright Building- Suite 2W1000

# ~ 4.520/3 Date

### t
UNITED STATESDEPARTMENT OFTRANSPORTATION OFFICE OFHEARINGS

WASHINGTON, D.C.

IN THE MATTER OF GRANT AVIATION, INC. FAA DOCKET NOS. 2013-AWA-CPP-16670, 2013-AWA-CPP-17427, 2013-AWA-CPP17429, 2013-AWA-CPP-17430,2013-AWA-CPP-17431,& 2013-AWA-CPP-17575 (Civil Penalty Proceedings) FDMS NOS. FAA-2012-1261, FAA-2012-1265, FAA-2012-1266, FAA-2-12-1267, FAA-2012·2168, and FAA-2013-0041

SETTLEMENTAGREEMENT WHEREAS, the Federal Aviation Administration (FAA), acting by and through the Regional Counsel for the Alaskan Region, issued Notices ofProposed Civil Penalty on January 27,2012, in FAA Cases Nos. 2011AL030031, 2011AL030046, 2011AL030047, 2011AL030055, and 2011AL030058 and onMarch 23,2012, inFAA Case No. 2011AL030075; and Final Notices ofProposed Civil Penalty in each oftheseFAA cases on November 16, 2012; WHEREAS, on November 28,2012, Grant Aviation, Inc.,(hereinafter "Grant Aviation") timely requested ahearing in each ofthe above FAA Cases, WHEREAS, on December 14, 2012, the FAA filed complaints in each ofthe above FAA cases seeking atotal of$75,000 in civil penalties, and those complaints were assigned the above docket and FDMS numbers, respectively; WHEREAS; Grant Aviation specifically denies each and every regulatory violation alleged in the complaints in each ofthe above matters; and WHEREAS, in an effort to reduce the risk and decrease the overall cost ofprotracted litigation and to serve the public interest, the parties, Grant Aviation, acting through its duly authorized officers, and the FAA, acting through the Regional Counsel for the Alaskan Region, desire to settle each ofthe above matters; NOW, THEREFORE,the parties hereby agree and understand as follows:

I(

1. Upon execution ofthis Settlement Agreement, the FAA will issue an Orders Assessing Civil Penalties that will include findings ofeach ofthe violations alleged in the complaints referenced above and the assessment ofa civil penalties totaling $75,000.00, but will not include a demand for payment, which is covered inparagraphs 4 and 

### 5, below. 2. Grant Aviation, understands and agrees that notwithstanding its denials ofthe findings ofregulatory violations thatwill be made 

### inthe FAA's Orders Assessing Civil Penalties in these cases, these findings will become part ofthe enforcement history maintained by the FAA, and may be relied on, used, and offered by the Administrator in any future enforcement actions to the same extent that could be done ifthe findings had notbeen denied. 3. Within ninety (90) days ofthe execution ofthis agreement, GrantAviation will fully and completely resolve the debts it owes to the United States by virtue ofthe civil penalties assessed in FAA Cases Numbers 2009AL030061 {$12,000 plus penalties and interest) and 2010NM730085 ($16,000 plus penalties and interest). The parties understand that because the FAA has referred these debts to the US Department ofTreasury for collection, any determination as to how much GrantAviation mustpay to completely and fully resolve these debts is within the discretion ofthat agency and not the FAA. 4. As more fully described below, the FAA will remit a portion orall ofthe $75,000 in civil penalties assessed in accordance with paragraph 1, above, provided Grant Aviation complies with its obligations underparagraph 3, above, and meets the various conditions and deadlines set forth below: a. The FAA will remit up to $25,000 ofthe above $75,000 provided Grant Aviation obtains a comprehensive audit ofits operations and earns the four stars ithas not yet earned under the Medallion Foundation's Five-StarProgram by the deadlines as setforth below: (1) Provided Grant Aviation obtains a comprehensive audit ofits operations from the Medallion Foundation by September l, 2013, atotal of$5000 will be remitted. The results ofthis audit shall be shared with the FAA to remain transparent, and saidresults shall remain non-punitive. (2) Provided Grant Aviation obtains the "Operational Control Program" starby March 1, 2014, a total of$5000 will be remitted. (3) Provided GrantAviation obtains the "Safety Program" starby September 1, 2014. a total of$5000 will be remitted. (4) Provided Grant Aviation obtains the "Maintenance and Ground Program" star by March 1, 2015, atotal of$5000 will be remitted. (5) Provided GrantAviation obtains the "Internal Audit Program" star by September I. 2015, a total of$5000 will be remitted.

2

### (
.
b. The FAA will remitup to $50,000 ofthe above $75,000 provided that Grant Aviation meets the following conditions during the five-year period commencing with the execution ofthis agreement: (1) Participates in the Medallion Foundation's Five Star/Shield Program as set forth in (a)(l)-(5), above, and maintains each star under thatprogram once it is earned. (2) Works collaboratively with the FAA to freely communicate with the FAA and proactively resolve issues transparently. (3) Maintains adequate management staffto ensure a span ofcontrol for the expanding size and complexity ofits operations and to effectively meet safety and regulatory requirements ofthe Federal Aviation Regulations. ( 4) Provides an appropriate amount ofCheck Airman and Maintenance Supervisors to ensure compliance with regulatory requirements, company-approvedtraining programs, and accepted policies and procedures. (5) Promptly complies with any demand for payment as discussed in paragraph 5. 5. Ifat any time Grant Aviation fails to meet a deadline or condition set forth in paragraph 4, the FAA may make a demand for payment ofthe amounts that would have been remitted had Grant Aviation metthe deadline or condition. No delay inmaking a demand for payment shall constitute a waiver ofthe FAA's right and ability to do so. 6. All determinations as to whether ornot Grant Aviation has met a deadline orcondition under this agreement and how much will and will notbe remitted shall be in the sole discretion ofthe Regional Counsel for the FAA's Alaskan Region. In making any such determinations, the parties are bound by a duty offair dealing and to act in good faith. Further, the parties understand that circumstances that are largely beyond GrantAviation's control may prevent it from meeting one ormore ofthe above deadlines or conditions. Thus, before the Regional Counsel for the FAA's Alaskan Region makes any determination under this agreement, Grant Aviation will be afforded areasonable opportunity to present information as to whether itmet the deadline or condition, the efforts it made to meet the deadline or condition, and/or the circumstances that prevented it from meeting the deadline orcondition, and that information will be given due consideration. 7. Grant Aviation understands that any expansion beyond the current scope ofoperations or additions ofaircraft will be at the sole discretion ofthe FAA based on Grant Aviation's successful Safety Performance provided by Grant's submission ofa Risk Analysis and Mitigation Plan for the proposed operations, and FAA's validation ofGrant's Safety Performance. 8. Grant Aviation understands and agrees that by entering into this settlement agreement, it is giving up its right to a hearing in these matters, and that a copy ofthis agreement will be

3submitted to the Hearing Docket and the assigned administrative lawjudge with a motion for an Orderterminating the proceedings. 9. Eachparty shall bear its own costs and attorneys' fees, and GrantAviation will not apply for an award ofsuch Wlderthe Equal Access to Justice Act, 5U.S.C. § 504. 10. This Agreement constitutes the complete understanding between the parties with respect tothe above·described matter. The parties warrant that no otherpromises or inducements for this Agreement have been made except as set forth in this Agreement. No other promises oragreements shall be binding unless signedby both parties and attached as an addendum to this Agreement. 11. Ifany part ofthis Agreement is held invalid and unenforceable, all remaining portions shall nevertheless remain valid and enforceable to the extentthey can be given effect withoutthe invalidportion. Dated this_day ofFebruary 2013. For the Complainant: HOWARD L. MARTIN, JR Regional Counsel
By: Glenn H. Brown SeniorAttorney
By:

### ~~~~-=----------­ ScottE. Nonnan
·Manager, Anchorage FSDO Forthe Respondent: GRANTAVIATION INC. Part 135 Air Carrier ENHA618D
By:

# ~HL Bruce McGlasson President 

# /Pkld£-

(Secretary/ Assistant Secretary/ 

### By: Treasurer/ Assistant Treasurer)

4

# r •

State ofAlaska ) ): ss Third Judicial District )

On February 26, 2013, R. Bruce McGlasson and MarkRichardson personally appeared before me, and upon oath, verified that they are officers ofGrant Aviation, Inc.• as indicated above, that they executed this document, and that the execution ofthis document on behalfofthe corporation is within their respective authority as officers ofthe corporation.



# -·---·--

......

## -5~--~~~========~~ST.~k~OFALASXAe Notary Public 

### NOTARY PUBUC Renal8 

### Delvacchlo M/Conlnlaabi 

### .1ft• 2018 My Commission Expires: