U.S. DEPARTMENT OF TRANSPORTATION 

FEDERAL AVIATION ADMINISTRATION 

) 

RECEIVED 

JUL 2 2 2014 

HEARING DOCKET 

In the Matter of Arctic Air Alaska, Inc. ) FDMSNo.FAA2014-0316 

) FAA Case No. 2012WP910268 

_________________________ ) 

Judge Richard C. Goodwin 

MOTION FOR DECISION 

Pursuant to 14 C.P.R. § 13.218(£)(5) of the Rules of Practice in FAA Civil Penalty 

Actions, the Federal Aviation Administration (FAA) files this Motion for Decision, and in 

support thereof states as follows: 

1. On January 18, 2013, the FAA sent Arctic Air a Notice of Proposed Civil Penalty 

(NPCP) advising Arctic Air that the agency was seeking a $8,200 civil penalty for 

violations of 14 C.P.R. §§ 120.109(a)(l ), 40.lll(a) and 40.111(a)(3). (See Exhibit A) 

The FAA enclosed in the NPCP, a copy of 14 C.P.R.§ 13.16 and Subpart G of Part 13. 

14 C.P.R. §13.16(h) provides that a request for a hearing will be conducted in accordance 

with Subpart G of Part 13 which included the requirement to file a timely answer. 

2. On May 5, 2014, the FAA issued a Final Notice of Proposed Civil Penalty. (FNPCP). 

(See Exhibit B). The FNPCP advised Arctic Air that unless Arctic Air requested a 

hearing on or before 15 days after its receipt of the FNPCP, the agency would issue an 

Order Assessing Civil Penalty and Arctic Air would have no further right to a hearing. 

The FNPCP further advised Arctic Air that any request for a hearing must be signed and 

dated in accordance with 14 C.P.R. §13.16, a copy of which was previously provided in 

the Notice of Proposed Civil Penalty. (See Exhibit B) 
3. On May 19, 2014, Arctic Air requested a hearing in this matter. 

4. On May 22,2014, the FAA filed the complaint1 (See Exhibit C) The FAA served the 

complaint on Arctic Air by certified mail. (See Exhibit D) On the third page of the 

complaint, the FAA summarized the Rules of Practice regarding the requirement to file 

an answer: 

Pursuant to Title 14 C.F.R. § 13.209(a), you are required to file a written answer 

to this Complaint, or a written Motion to Dismiss if appropriate, not later than 

thirty (30) days after the date shown on the Certificate of Service which follows. 

5. Under 14 C.F.R. § 13.209(a), Arctic Air then had 30 days to answer the complaint, plus 

an additional5 days in accordance with 14 C.F.R. §13.21l(e). Thus, Arctic Air's answer 

was due on June 26, 2014. 

6. By letter dated May 23, 2024, the Hearing Docket advised the parties that "FAA civil 

penalty actions are governed by Rules of Practice, 14 C.F.R. §§ 13.16 and 13.201-13-

235." (See Exhibit E). In that letter, the Hearing Docket provided a link to the Rules of 

Practice and other information regarding civil penalty proceedings, including indexes to 

decisions. (See Exhibit E) 

7. On June 12, 2014, the Administrative Law Judge (ALI) issued a Procedural Order. (See 

Exhibit F). The first paragraph of that order provides: 

In order to expedite the hearing in this matter, the parties shall comply with the 

Procedural Schedule set forth below. The Rules of Practice for this proceeding 

are set forth in 14 C.F.R. Part 13, Subpart G, of the Federal Aviation Regulations. 

Those rules provide, inter alia, that the Respondent must file a written Answer or 

motion within thirty (30) days after service of the Complaint (13 C.F.R. 

1 On May 28, 2014, the FAA filed an amended complaint by certified mail. This document was returned to the 

undersigned's office unclaimed on July 14, 2014. 
§ 13.209(a)), that a general denial is deemed a failure to file an 

Answer (§ 13.209(e)), that failure to file an Answer without good cause is 

deemed an admission of each allegation in the Complaint(§ 13.209(t)), and that, 

absent agreement of the parties, a party seeking an extension of time must file a 

written motion not less than seven (7) days before the document is due, absent 

good cause shown(§ l3.213(a) and (b)). 

8. As of this date, Arctic Air has failed to file an answer. 

9. Because Arctic Air failed to file an answer to the complaint, this Motion for Decision 

should be granted. 14 C.F.R. §13.209(t) sets forth the consequences for failure to file an 

answer. That rule provides that "a person's failure to file an answer without good cause 

shall be deemed an admission of the truth of each allegation contained in the complaint." 

According to the Rules of Practice, a showing of good cause is mandatory. In the Matter 

of Atlantic World Airways, FAA Order No. 1995-28 at 4 (December 19, 1995). Without 

it, failure to file an answer by the deadline may not be excused. Id. 

10. Arctic Air had numerous notices of the requirement to file an answer. First, the Notice of 

Proposed Civil Penalty enclosed a copy of 14 C.F.R. § 13.16 and Subpart G of Part 13. 

(See Exhibit A) Included in Subpart G of Part 13 was14 C.F.R.§ 13(h) which provided 

the requirement to file a timely answer. Second, the Final Notice of Proposed Civil 

Penalty again directed Arctic Air to 14 C.F .R. § 13 .16 for the rules that governed these 

proceedings. (See Exhibit B) Third, the complaint summarized the Rules of Practice 

regarding the requirement to file an answer or a written Motion to Dismiss , if 

appropriate, not later than thirty (30) days after the date shown of the Certificate of 

Service. (See Exhibit C) Fourth, the Hearing Docket advised the parties that these 

proceedings were governed by 14 C.F.R. §§ 13.16 and 13.201-13.235 and even provided 

a link to the applicable Rules of Practice. (See Exhibit E) Fifth, the Procedural Order 
advised the parties of the requirement to file an answer or motion within thirty (30) days 

after service of the complaint. (See Exhibit F) That order further warned Arctic Air that 

the failure to file an answer absent good cause, was deemed an admission of each 

allegation in the complaint. (See Exhibit F) 

11. Notwithstanding the, procedural requirements and admonishments provided in the above 

documents, including the receipt of copies of and links to the pertinent regulations, Arctic 

Air failed to file an answer. All must comply with procedural and substantive 

regulations; all must be accountable for any failures to comply with the rules. In the 

Matter of Global Peace Initiative, Inc., FAA Order No. 2008-8 at 10 (August 21, 2008). 

12. In accordance with 14 C.P.R.§ 13.209(f), Arctic Air's failure to file an answer without 

good cause is deemed an admission of each allegation in the complaint. Consequently, 

there are no genuine issues of material fact and the FAA is entitled to a decision as a 

matter of law. 

13. Section 13.218(£)(5) of the Rules of Practice in FAA Civil Penalty Actions provides in 

pertinent part that '[t]he administrative law judge shall grant a party's motion for decision 

if the pleadings, depositions, answers to interrogatories, admissions, matters that the 

administrative law judge has officially noted, or evidence introduced during the hearing 

show that there is no genuine issue of material fact and that the party making the motion 

is entitled to a decision as a matter of law." 
14. In this case, because Arctic Air failed to file an answer to the FAA's complaint, there are 

no genuine issues of material fact and the FAA is entitled to a decision as a matter of law. 

For this reason, and as more fully discussed below, the ALJ should grant the motion. 

WHEREFORE, the FAA respectfully requests that the ALJ grant the FAA's motion for decision. 

Peter J. Lynch 

Assistant C · f Counsel 

BY: A umn Killingham 

Federal Aviation Administration 

Office ofthe ChiefCounse1, AGC-300 

800 Independence Ave., S.W. 

Washington, D.C. 20591 

(202) 267-7728 

(202) 267-5106 (fax) 
CERTIFICATE OF SERVICE 

I hereby certify that the foregoing Motion for Decision, in the Arctic Air Alaska, Inc., FDMS 

No. 2014-0316, has been mailed this date by regular and Certified Mail to: 

James I. Hamilton 

President/CEO 

Arctic Air Alaska, Inc. 

3540 University Ave. South 

Fairbanks, AK 99709 

I further certify that the foregoing document has been sent via facsimile and mailed this date by 

Certified Mail to: 

The Honorable Richard C. Goodwin 

Administrative Law Judge 

Office of Hearings, M-20 

U.S. Department of Transportation 

1200 New Jersey Avenue, S.E. (E-11-310) 

Washington, DC 20590 

The original and a copy was also personally delivered to: 

Hearing Docket (Original and 1 copy) 

Federal Aviation Administration 

600 Independence Avenue, S.W. 

Room 2Wl 000-AGC-430 

Washington, DC 20591 

July 22, 2014 
U.S. Department 

of Transportation 

Federal Aviation 

Administration 

Office of the Chief Counsel 

Enforcement Division 

BOO Independence Ave., SW. 

WClshington, DC 20591 

CERTIFIED MAIL- RETURN RECEIPT REQUESTED 

and REGULAR U.S. MAIL 

RECEIVED 

January 18,2013 

JUL 2 2 2014 

HEARING DOCKET 

James I. Hamilton 

President/CEO 

Arctic Air Alaska, Inc. 

3540 University Ave. South 

Fairbanks, AK 99709 

RE: Arctic Air Alaska, Inc., Case No. 2012WP910268 

NOTICE OF PROPOSED CIVIL PENALTY 

Based on a report of investigation, it appears that: 

1. Arctic Air Ala.Ska, Inc. ("Arctic Air") is now, and at all times mentioned herein was, the 

holder of Air Carrier Certificate No. A2KA929W, issued under 14 C.P.R. part 119, and 

authorized to conduct operations under 14 C.F .R: part 13 5 of the Federal Aviation 

Regulations. 

2. At all times mentioned herein, Arctic Air was required to comply with the requirements 

of 14 C.P.R. part 120 and 49 C.P.R. part 40 for its Antidrug and Alcohol Misuse 

Prevention Program. 

3. On or about May 24, 2012, the Federal Aviation Administration conducted an inspection 

of Arctic Air's Antidrug and Alcohol Misuse Prevention Program. 

4. As a result of the inspection, the following was discovered: 

a. On or about April23, 2012, Arctic Air hired Robert Osterhoudt to perform 

maintenance or preventive maintenance duties. 

b. On or about May 1, 2012, Arctic Air permitted Mr. Osterhoudt to perform safetysensitive maintenance on civil aircraft N3741Z, listed on Arctic Air's part 135 

operations specifications. 

c. On or about April23, 2012, Artie Air permitted Mr. Osterhoudt to perform safetysensitve maintenance on civil aircraft Nl074F, listed on Artie Air's part 135 

operations specifications. 

EXHIBIT 

- ~,- -- ' - . 
d. Arctic Air hired Mr. Osterhoudt for a safety-sensitive function without first 

conducting a pre-employment drug test and receiving a verified negative result. 

e. Between July 1, 2010 and December 31, 2010, Arctic Air conducted the 

following tests: 

1. Specimen ID # 643 I 079, collected on or about August 3, 2010. 

n. Specimen ID # 6431084, collected on or about August 11, 2010. 

111. Specimen ID # 2189893, collected on or about September 13,2010. 

IV. Specimen ID # 2189938, collected on or about October 4, 2010. 

v. Specimen ID # 2189979, collected on or about November 11, 2010. 

2 

f. Arctic Air's laboratory, Quest Diagnostics, did not transmit the employer-specific 

aggregate statistical summary to Arctic Air for the period of July I, 2010 to 

December 31,2010. 

By reason of the foregoing, Arctic Air violated the following Federal Aviation and Department 

of Transportation Regulations: 

(a) 14 C.F.R. § 120. 109(a)(l), in that it hired Mr: Osterhoudt for a safety-sensitive 

function listed in 14 C.F.R. § 120.105 without first conducting a pre-employment drug test and 

receiving a verified negative drug test result for that individual; 

(b) 49 C.F.R. § 40.11l(a) and 49 C.F.R. § 40.11 l(a)(3), in that its laboratory did not 

transmit an employer-specific aggregate statistical summary to Arctic Air by January 20, 2011, 

covering the time period from July I, 2010 to December 31, 2010. 

In accordance with 49 U.S.C. § 46301(a)(5)(A), Arctic Air is subject to a civil penalty not to 

exceed $11,000 for each violation of the Federal Aviation Regulations. After reviewing all of 

the information contained in our investigative file, we propose to assess a civil penalty in the 

amount of $8,200 for these violations. 

Enclosed is information on Arctic Air's options in responding to this Notice. The options 

include participating in an informal conference with an FAA attorney and submitting information 

to the FAA for consideration. Arctic Air must submit in writing its choice of the alternatives 

explained in the enclosed reply form within 30 days of receiving this Notice. If Arctic Air fails 

to submit its choice within 30 days of its receipt of this Notice, it will have no further right to 

participate in the informal procedures. 

Please direct all communications to Autunm Killingham, Attorney, Enforcement Division/AGC3 00, Office of the Chief Counsel, Federal Aviation Administration, 800 Independence A venue, 

S.W., Washington, D.C. 20591, (202) 267-7728, facsimile (202) 267-5106. 
Peter J. Lynch 

Assistant Chief Counsel 

for Enforcement 

By: 

Hingham, tto 

Enforce ent Division/AGC-300 

Office of the Chief Counsel 

Telephone: (202) 267-7728 

Facsimile: (202) 267-5106 

Enclosures: Information Sheet with Reply Form attached at pages 4-5 

FAR 13.16 and Subpart G of Part 13 

CERTIFICATE OF SERVICE 

I hereby certify that on this date, I served a copy of the foregoing Notice of Proposed 

Civil Penalty in Arctic Air Alaska, Inc., Case No. 2012WP910268, by Certified Mail, return 

receipt requested, and'by regular U.S. mail, addressed to: 

James I. Hamilton 

President/CEO 

Arctic Air Alaska, Inc. 

3540 University Ave. South 

Fairbanks, AK 99709 

Date: January 18,2013 

3 
\ 

U.S. Depa~ment 

of Transportation 

Federal Aviation 

Administration 

Office of the Chief Counsel 

Enforcement Division 

CERTIFIED MAIL- RETURN RECEIPT REQUESTED 

and REGULAR U.S. MAIL 

May 5, 2014 

James I. Hamilton 

President/CEO 

Arctic Air Alaska, Inc. 

3540 University Ave. South 

Fairbanks, AK 99709 

RE: Arctic Air Alaska, Inc., Case No. 2012WP910268 

800 Independence Ave., SW. 

Washington, DC 20591 

FINAL NOTICE OF PROPOSED CIVIL PENALTY 

OnJanuary 18, 2013, you were advised through a Notice of Proposed Civil Penalty that the FAA 

proposed to assess a civil penalty in the amount of $8,200. 

1. Arctic Air Alaska, Inc. ("Arctic Air") is now, and at all times mentioned herein was, the 

holder of Air Carrier Certificate No. A2KA929W, issued under 14 C.F.R. part 119, and 

authorized to conduct operations under 14 C.F.R. part 135 of the Federal Aviation 

Regulations. 

2. At all times mentioned herein, Arctic Air was required to comply with the requirements 

of 14 C.F .R. part 120 and 49 C.F .R. part 40 for its Antidrug and Alcohol Misuse 

Prevention Program. 

3. On or about May 24, 2012, the Federal Aviation Administration conducted an inspection 

of Arctic Air's Antidrug and Alcohol Misuse Prevention Program. 

4. As a result of the inspection, the following was discovered: 

a. On or about April 23, 2012, Arctic Air hired Robert Osterhoudt to perform 

maintenance or preventive maintenance duties. 

b. On or about May 1, 2012, Arctic Air permitted Mr. Osterhoudt to perform safetysensitive maintenance on civil aircraft N3741Z, listed on Arctic Air's part 135 

operations specifications. 

EXHIBIT 
c. On or about April23, 2012, Artie Air permitted Mr. Osterhoudt to perform safetysensitve maintenance on civil aircraft Nl 074F, listed on Artie Air's part 135 

operations specifications. 

d. Arctic Air hired Mr. Osterhoudt for a safety-sensitive function without first 

conducting a pre-employment drug test and receiving a verified negative result 

e. Between July l, 2010 and December 31,2010, Arctic Air conducted the 

following tests: 

i. Specimen ID # 6431079, collected on or about August 3, 2010. 

ii. Specimen ID # 6431084, collected on or about August I I, 2010. 

111. Specimen ID # 2189893, collected on or about September 13, 2010. 

IV. Specimen ID # 2189938, collected on or about October 4, 20IO. 

v. SpecimeniD # 2I89979, collected on or about November 1 I, 2010. 

f. Arctic Air's laboratory, Quest Diagnostics, did not transmit the employer-specific 

aggregate statistical summary to Arctic Air for the period of July 1, 20 I 0 to 

December 3I, 2010. 

By reason of the foregoing, Arctic Air violated the following Federal Aviation and Department 

of Transportation Regulations: 

(a) 14 C.F.R. § 120. I 09(a)(1 ), in that it hired Mr. Os.terhoudt for a safetysensitive 

function listed in 14 C.F.R. § 120.105 without first conducting a pre-employment drug test and 

receiving a verified negative drug test result for that individual; 

(b) 49 C.F.R. § 40.111(a) and 49 C.F.R. § 40.111(a)(3), in that its laboratory 

did not 

transmit an employer-specific aggregate statistical summary to Arctic Air by January 20, 2011, 

covering the time period from July 1, 2010 to December 31, 201 0. 

In accordance with 49 U.S.C. § 46301(a)(5)(A), Arctic Air is subject to a civil penalty not to 

•exceed $11,000 for each violation of the Federal Aviation Regulations. After reviewing all of 

the irrformation contained in our investigative file, we propose to assess a civil penalty in the 

amount of $8,200 for these violations. 

Unless you submit the proposed civil penalty or an agreed upon amount on or before 15 days 

after you receive this Final Notice, or mail or personally deliver, in writing, your request for 

hearing in this matter, on or before 15 days after you receive this Final Notice, we will issue an 

Order Assessing Civil Penalty, and you will have no further right to a hearing. If you do not 

submit a written request for a hearing or pay an agreed upon amount, you must pay the proposed 

ci vii penalty. 
Your request for a hearing must be sent to the Hearing Docket, Room 2W1000, AGC-430, 

Federal Aviation Administration, 600 Independence Avenue, S.W.,Washington, D.C. 20591 

Attention: Hearing Docket Clerk, and a copy must be sent to the undersigned FAA attorney. 

Your request must be dated and signed in accordance with section 13.16 of the Federal Aviation 

Regulations (14 C.F.R. Section 13.16)(copy enclosed). 

You may pay the proposed penalty by submitting a certified check or money order payable to the 

"Federal Aviation Administration," to Federal Aviation Administration, Atten: Kathy Gore, 

AMK-322, Mike Momoney Aeronautical Center, Office of Financial & Budget Services, 

General Accounting Branch, 6500 South MacArthur Blvd., Oklahoma City, OK. 73169. If you 

elect to submit a check, please also send a copy of the check to Autumn Killingham, 

Enforcement Division, Office of the Chief Counsel, 800 Independence Avenue, S.W., 

Washington, D.C. 20591, USA, (202) 267-7728. 

Peter J. Lynch 

Assistant Chief Counsel 

By: 

Office of the Chief Counsel 

Telephone: (202) 267-7728 

Facsimile: (202) 267-5106 
CERTIFICATE OF SERVICE 

I hereby certify that on this date, I served a copy of the foregoing Final Notice of 

Proposed Civil Penalty in Arctic Air Alaska, Inc., Case No. 2012WP910268, by Certified Mail, 

return receipt requested, and by regular U.S. mail, addressed to: 

James I. Hamilton 

President/CEO 

Arctic Air Alaska, Inc. 

3540 University Ave. South 

Fairbanks, AK 99709 

Date: May 5, 2014 
RECEIVED 

MAY 2 2 2014 

U.S. DEPARTMENT OF TRANSPORTATION .. 

FEDERAL AVIATION ADMINISTRATION HEARING DOCKET 

) 

In the Matter of Artie Air Alaska, Inc. ) FAA Case No. 2011WP910076 

) 

---------------------------~ 

COMPLAINT 

The Federal Aviatio~inistration ("Complainant") by counsel, hereby files its Complaint, 

pursuant to Rule 208 of the Rules of Practice (14 C.F.R. 13.208), and states as follows: 

I. 

On June 18, 2013, Respondent was advised by mail through a Notice of Proposed Civil Penalty 

that the FAA proposed to assess a civil penalty in the amount of$8,200. On May 19, 2014, 

2014, Respondent requested a hearing. 

II. 

rr 

/i 1. Arctic Air Alaska, Inc. ("Arctic Air") is now, and at all times mentioned herein was, the 

I 

holder of Air Carrier Certificate No. A2KA929W, issued under 14 C.F.R. part 119, and 

authorized to conduct operations under 14 C.F.R. part 135 of the Federal Aviation 

Regulations. 

2. At all times mentioned herein, Arctic Air was required to comply with the requirements 

of 14 C.F.R. part 120 and 49 C.F.R. part 40 for its Antidrug and Alcohol Misuse 

Prevention Program. 

~~'~ EXHIBIT 

1ix~:~ 

JJ _,,-- --

~--" 
3. On or about May 24, 2012, the Federal Aviation Administration conducted an inspection 

of Arctic Air's Antidrug and Alcohol Misuse Prevention Program. 

4. As a result of the inspection, the following was discovered: 

a. On or about Apri123, 2012, Arctic Air hired Robert Osterhoudt to perform 

maintenance or preventive maintenance duties. 

b. On or about May I, 2012, Arctic Air permitted Mr. Osterhoudt to perform safetysensitive maintenance on civil a,ircraft N3 7 41Z, listed on Arctic Air's part 135 

operations specifications. 

c. On or about April23, 2012, Artie Air permitted Mr. Osterhoudt to perform safetysensitve maintenance on civil aircraft N1074F, listed on Artie Air's part 135 

operations specifications. 

d. Arctic Air hired Mr. Osterhoudt for a safety-sensitive function without first 

conducting a pre-employment drug test and receiving a verified negative result. 

e. Between July 1, 2010 and December 31,2010, Arctic Air conducted the 

following tests: 

1. Specimen ID # 6431079, collected on or about August 3, 2010. 
11. Specimen ID # 6431084, collected on or about August 11, 2010. 

111. Specimen ID # 2189893, collected on or about September 13,2010. 

IV. Specimen ID # 2189938, collected on or about October4, 2010. 

v. Specimen ID # 2189979, collected on or about November 11, 2010. 

f. Arctic Air's laboratory, Quest Diagnostics, did not transmit the employer-specific 

aggregate statistical summary to Arctic Air for the period of July 1, 2010 to 

December 31,2010. 

III. 

I. By reason of the foregoing, Arctic Air violated the following Federal Aviation and 

Department of Transportation Regulations: 

(a) 

(b) 

14 C.F.R. § 120.1 09(a)(l ), in that it hired Mr. Osterhoudt for a safetysensitive function listed in 14 C.F.R. § 120.105 without first conducting a 

pre-employment drug test and receiving a verified negative drug test result 

for that individual; 

49 C.F.R. § 40.111(a) and 49 C.F.R. § 40.111(a)(3), in that its laboratory 

did not transmit an employer-specific aggregate statistical sunnnary to 

Arctic Air by January 20, 2011, covering the time period from July 1, 

2010 to December 31,2010. 
2. Under the facts and circumstances of this case and in accordance with 49 U.S.C. § 

46301(a)(5)(A), a civil penalty in the amount of$8,200 is appropriate. 

WHEREFORE, the Agency, by counsel, respectfully requests that the Administrative Law Judge 

enter an order that Respondent be assessed a civil penalty in the amount of $8,200. 

Dated this 22"d day ofMay, 2014. 

Peter J. Lynch 

Assistant Chief Counsel 

ingham 

Enfo ment Division 

Office of the Chief Counsel 

(202) 267-7728 

PLEASE NOTE: 

Pursuant to Title 14 C.F.R. § 13.209(a), you are required to file a written answer to this 

Complaint, or a written Motion to Dismiss if appropriate, not later than thirty (3 0) days after the 

date shown on the Certificate of Service which follows. 
CERTIFICATE OF SERVICE 

I hereby certify that the foregoing Complaint, in the Artie Air Alaska, Inc., FAA Case No. 

2012WP910268, has been mailed this date by Certified Mail to: 

James I. Hamilton 

President/CEO 

Arctic Air Alaska, Inc. 

3540 University Ave. South 

Fairbanks, AK 99709 

The original and a copy was also personally delivered to: 

Hearing Docket (Original and 1 copy) 

Federal Aviation Administration 

600 Independence Avenue, S.W. 

Room 2Wl 000-AGC-430 

Washington, DC 20591 

May 22,2014 

I 

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File: Artie Air Alaska, In~. C mplaint " . #· Foregomg 0 

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Sent To Jam~s I. Hamilton 

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S17ool. Jv!rfJ!}t;Air Alaska, Inc. 

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s If a hostmark on the Certlfied Man receipt is desired, please present the article 

~c~i~ ~s ~~t :~~de£\fe?:~;;n;~~i~RiX l~b~lp~it.;n~~~~g~ ~~d ~:2ified ail 

IMPORTANT: Save this receipt and present it when making an i11quiry. 

PS Form 3800, August2006 (reverse} PSN 7530-02-000-9047 
U.S. Department 

of Transportation 

Federal Aviation 

Administration 

May 23,2014 

Autumn Killingham 

Federal Aviation Administration 

Office of LIJ.e Chlef Counsel 

800 Independence Ave., SW 

Washlngton, DC 20591 

James I. Hamilton 

President/CEO 

Arctic Air Alaska, Inc. 

3540 University Ave., South 

Fairbanks, AK 99709 

Office of the Chief Counsel 800 Independence Ave., S.W. 

Washington, D.C. 20591 

Re: In the Matter of Arctic Air Alaska, Inc., FDMS No. FAA 2014-0316 

Dear Parties: 

The Hearing Docket has received the complaint in this FAA civil penalty action. 

Please include the above-referenced Federal Docket Management System (FDMS) number on all 

correspondence and on each document that you file with the Hearing Docket in tills proceeding. 

You will receive a letter from the Office of Hearings once an administrative law judge is 

assigned to this case. 

FAA civil penalty actions are governed by the Rules of Practice, 14 C.F.R. §§ 13.16 and 13.201-

13.235. The Ru1es of Practice, as well as other useful information about civil penalty 

proceedings and indexes of decisions issued by the Administrator, may be found at: 

http://w-vvw.faa.gov/about/office org/headguarters offices/age/pol adjudicationlagc400/ 

civil penalty/. 

Be advised that documents filed with the Hearing Docket in non-security cases will be available 

publicly through the following Internet website: http://WVvw.regulations.gov/. If you plan to file 

a document containing information that should not be made publicly available, you should file a 

motion under 14 C.F.R. § 13.226. 

EXHIBIT 

j 
any questions, please contact the Hearing Docket at (202) 385-8230. 

Sharice Jefferson t~~ 

Hearing Docket Clerk, AGC-4:30 
2014-06-12 10:29 DOT 1» 202 2675106 p 1/4 

SERVED: June 12, 2014 

U.S. DEPARTMENT OF TRANSPORTATION 

OFFICE OF HEARINGS 

WASJ-IINGTON, DC 

IN THE MATTER OF 

ARCTIC AIR ALASKA, INC1

• 

DOCKET NO. FAA 2014-0316 

(Civil Penalty Action), 

PROCEDURAL ORDER 

In order to expedite the hearing in this matter, the parties shall comply with the 

Procedural Schedule set forth herein belo~. The Rules of Practice for this proceeding 

are set forth in 14 C.F.R. Part 13, Subpart G, of the Federal Aviation Regulations3

• 

Those rules provide, inter alia, that the Respondent must file a written Answer or motion 

within thirty (30) days after service of the Complaint (14 C.F.R. § I 3.209(a)), that a 

general denial i~ deemed a failure to file an Answer(§ 13.209(e)), that failure to lile an 

Answer without good cause is deemed 1111 admission of each allegation in the Complaint 

(§13.209(i)), and that, absent agreement of the parties, a party seeking an extension of 

time must file a written motion not less than seven (7) days be tore the document is due, 

absent good cause shown(§ 13.213(a) and (b)). 

More specifically, I 4 CFR § 13.209 (~)states: 

A person filing an answer shall admit, deny, or state that the person is without 

sufficient knowledge or information to admit or deny, each numbered paragraph 

of the; complaint. Any statement or allegation contained in the complaint that is 

not specifically denied in the answer may be deemed an admission of the truth of 

that allegation. A general denial of the complaint is deemed a failure to t·ile an 

answer. 

1 This was incorrectly cuptioncd in prior pleadings. This is the correct caption. 

' Materials filed in the FAA Heal'ing Docket (except lor materials which are sealed) also available lor 

viewing nt l:!iJ.J1.·/Iwww. regulwlon.\'. o/fl\'. For additional intbrmation sec: lUCmflclrm·.clor. em', 

' The Administrator's civil penalty decisions. along with indexes o!'the decisions, the Rules of Pr-;ctice, as 

well as other materials relating to civil penalty cases, are available on the internet at; 

II tip: 1/ww,v ,(a a.g ovlubollll<!/)i cc _orglhea dq 1 <art er.v _off/ ces! agd pol_ ad) ud i ell/ion/ age-l 001 c•iv i /__penalty!; sec 

olso: hllp://ecfr.gpoaccess.govlcglltlrextlro.<t-id<? c~ecjr&rpl~lecfl•brrmwdTitle 1./11-ltab _ 02, tpl. In 

uddition, Thomson Reuters/West Publishing publishes Fcdeml Aviation Decisions. finally, the decisions 

are available through L.EXlS (TRANS library) and WestLaw 9F'fRAN·FAA database. For additional 

information, sec the Web site, 

" 

E)(JfiBIT' 

1..' ;:,_-~:~-f-{: 
DOT 1» 202 2675106 p 2/4 

Under FAA Order 2150.3B and the Rules governing these proceedings, the 

Agency attorney and the Respondent are encouraged to consider the possibility of 

settlement and compromise of this matter. 4 Compromise may be eflected with or 

without a finding of violation (14 C.F.R. §13.16 (n) (1)}. 

NOTE: l11is presiding Judge does not require "Discovery" be served on the 

Judge. Other Judges have different policies, but as long as this case is assigned to the 

undersigned presiding Judge the parties may, but are not required to, serve discovery on 

the \mdersigned. 

The judge will not discuss the case with any party, or representative on an ex 

parte basis, Administrative matters may be addressed to Staff Assistant, Pat Matthews 

[202-366·5121] (Patricia.Matthew~@.dot.gov). 

WHEREFORE, the parties be and are hereby ORDERED to adhere to the 

following procedural schedule; 

1. Venue shall be Fairbanks AK.; 

2. On or betorc September 1, 2014, the parties shall conclude all discovery 

including. but not limited to, depositions, document production. !'esponses to 

production requests and/or interrogatories. If the parties caru1ot resolve a 

discovery dispute they shall submit the disputo to the undersigned for resolution 

in a timely manner; 

3. The parties shall be prepared to pn:sent this case at a hearing on or after 

September 1, 20145

, subject to the availability of courtroom facilities. l11e 

specil'ic elate and time for the hearing will be forthcoming in a separate Order. 

4. The parties will have the opportunity to tile Post-Hearing briefs and arguments 

pursuant to a schedule to be determined at the hearing. For guidance, the 

following schedule is typically used: Complainant shall file its brief fifteen ( 1 5) 

days after receipt of the transcript; Respondent shall its brief fifteen ( 15) clays 

therea!\er; and any rebuttal brief by the Complainant shall be tiled seven (7) days 

thereafter. 

'

1 ''The public policy of favoring and encouraging settlement makes necessary the inadmissibility of 

settlement negotiations in order to fo>tor frank di$~ussions", fiberglass lnsulato1·s. lnc. v Dupux. 856 F, 2d 

652, 653 (4 Cir. 1988); Wright & Graham, Federal Pracrice and Procedure: Evidence. ~5302 ( 1980). Rule 

408 ol'the Federal Rules ofllVidence excludes from evidence all statements made in the course of 

settlement negotiations. 

' 14 C.F.R. § 13.221 states: "The administrative law judge shall give each party at lcust60 days notice of 

the date, time and location of the hearing." !I' the parties can agree on tentative hearing dates, they are 

encouraged to provide those dates to the court and/or Ms. Matthews ln order to get the dates reserved on 

the judge's calendar. 

2 
DOT 1» 202 2675106 p 3/4 

Settled cases will not be removed from the hearing docket until the proper written 

plcading(s), consistent with the applicable rules,6 is received by the presiding . d 7 JU ge. 

The parties are advised that submissions sent to the street address of the U.S. 

Department of Transportation. Office of Hearings. may be delayed due to 

screening conducted by the U.S. Postal Service and/or other security agencies and 

may take up to four (4) weeks to be delivered. Additionally, submissions may be 

''irradiated", which affects the quality of submissions. The parties arc 

encouraged, but not required, to' file submissions by private delivery service, 

facsimile, or email. The certificate of service shall reflect the manner of service. 

The parties are encouraged to provide email addresses to expedite service of 

pleadings. 

7. All documents are to be submitted to the undersigned as follows: 

HON. Richard C. Goodwin 

U.S. Administrative Law Judge 

Office of Hearings, M-20 

U.S. Department of Transportation 

1200NewJcrsey Avenue, S.E. (Ell-310) 

Washington, D.C. 20590 

Attn: Patricia Matthews 

(Richard.Goodwin@.dol.gov) 

Administrative matters should be directed to Patricia Matthews. StatT Assi$tant 

(202) 366-5121 (Patt·!cia.Marthews@dllt.gov). 

All other matters should be addressed in writing/email to J udgc Goodwin. 

Richard C. Goodwin 

U.S. Administrative Law Judge 

Attachment- Service List 

6 14 C.P.R. * 13.215 statO$; "At any time before or durin& a hcarin&, an •i>ency attorney may withdraw a 

complaint ot· party may withdraw a request lbr a hearing without the consent of the administrative law 

judge, If an agency at1omey withdl'llws the complaint or u party withdraws the request for a hearing and the 

answer. the administrative law judge $hall dismiss the proceedings under this subpart with prejudice.'' 1 S"".' In the Matter ofLewjs Drnke & Associates, FAA Docket No. CP03S00045, DMS. No. PAA-2003-

16379, "Order Tenninating Proceeding", served February 26. 2005; citing Kerry Jamq$ Eldridge. i'AA 

Docket CPS9GL04S8, "Order Canceling Hearing and Tenninating Proceeding''. served January 16, 1991, 

at l. 

3 
10:31 DOT 1» 202 2675106 p 4/4 

Docket No. FAA-2014-0316 

(Civil .Penalty Action) 

SERVICE LIST ·BY U.S. MAIL . 

ORIGINAL & ONE COPY 

Federal Aviation Administration 

800 Independen~e Avenue, S.W. 

"I,Vashington, DC 20591 

Attention: Hearing Docket Clerk, A00-430 

Wilbur Wright Building-Suite 2Wl0001 

·ONE COPY 

James l. Hamilton, President /CEO 

Arctic Air Alaska, J"nc., Respondenl 

3540 University Ave. South 

fairbanks, AK 99709 

Peter Lynch, Complainant's Counsel 

Assistant Chief Counsel for Enforcement 

Office of the Chief Counsel, AGC·300 

Federal Aviation Administration 

800 lndependence Avenue, S.W. 

Washington, DC 20591 

TEL: 202-267-7728 

FAX: 202·267·5106 

'• 

The Honorable Richard C. Goodwin, Administrative .Law Judge 

Office of Hearings, M·20. 

U.S. Department of Transportation 

1200 New Jersey Avenue, S.E. (El1·310) 

Washington, DC 20590 

TEL: 202-366-5121 Staff Assistant 

FAX: 202-366-7536 

1 Service was by 0 .S. Mail. For scrvico ill person or by oxpedltod courier, use the following; addtoss: Fodoral 

A vil\tion Adrl:tinistn~tion, 600 Indcpendcnco A venue, S.W., Wilbur Wright Building~ Suite 2Wl 000, Washington, 

DC 20591; Attention; Hc:aring Docket Clork, AGC-430. .