U.S. DEPARTMENT OF TRANSPORTATION FEDERAL AVIATION ADMINISTRATION ) 

# RECEIVED JUL 2 2 2014 HEARING DOCKET
In the Matter ofArctic Air Alaska, Inc. ) FDMSNo.FAA2014-0316 ) FAA Case No. 2012WP910268



## _________________________) Judge Richard C. Goodwin MOTION FORDECISION Pursuantto 14 C.P.R. § 13.218(£)(5) ofthe Rules ofPractice inFAA Civil Penalty Actions, the Federal Aviation Administration (FAA) files this Motion for Decision, and in support thereofstates as follows:
1. On January 18, 2013, the FAA sent Arctic Air a Notice ofProposed 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 inthe NPCP, a copy of 14 C.P.R.§ 13.16 and Subpart G ofPart 13. 14 C.P.R. §13.16(h) provides that a request for a hearing will be conducted in accordance with Subpart G ofPart 13 which included the requirement to file a timely answer.
2. On May 5, 2014, the FAA issued a Final Notice ofProposed Civil Penalty. (FNPCP). (See Exhibit B). The FNPCP advised Arctic Air that unless Arctic Air requested a hearing on orbefore 15 days after its receipt ofthe 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 ofwhich was previously provided in the Notice ofProposed Civil Penalty. (See Exhibit B)3. On May 19, 2014, Arctic Air requested a hearing inthis 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) Onthe third page ofthe complaint, the FAA summarized the Rules ofPractice 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 ifappropriate, not later than thirty (30) days after the date shown on the Certificate ofService 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 ofPractice, 14 C.F.R. 

### §§ 13.16 and 13.201-13- 235." (See Exhibit E). Inthat 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 LawJudge (ALI) issued a Procedural Order. (See Exhibit F). The first paragraph ofthat order provides: In order to expedite the hearing in this matter, the parties shall comply with the Procedural Schedule set forth below. The Rules ofPractice for this proceeding are set forth in 14 C.F.R. Part 13, Subpart G, ofthe Federal Aviation Regulations. Those rules provide, inter alia, that the Respondent must file a written Answer or motion within thirty (30) days after service ofthe Complaint (13 C.F.R.

1 On May28, 2014, the FAA filed an amended complaintby 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 ofeach allegation inthe Complaint(§13.209(t)), and that, absent agreement ofthe parties, a party seeking an extension oftime 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 ofthis 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 shouldbe granted. 14 C.F.R. §13.209(t) sets forth the consequences for failure to file an
answer. Thatrule provides that "aperson's failure to file an answer without good cause shall be deemed an admission ofthe truth ofeach allegation contained inthe complaint." Accordingto the Rules ofPractice, a showing ofgood cause is mandatory. Inthe Matter ofAtlantic 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 Airhad numerous notices ofthe requirement to file an answer. First, the Notice of Proposed Civil Penaltyenclosed a copy of 14 C.F.R. 

### § 13.16 and Subpart G ofPart 13. (See Exhibit A) Included in Subpart G ofPart 13 was14 C.F.R.§ 13(h) whichprovided the requirement to file a timely answer. Second, the Final Notice ofProposed 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 summarizedthe Rules ofPractice regarding the requirement to file an answer or a written Motion to Dismiss , if appropriate, not later thanthirty (30) days after the date shown ofthe 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 evenprovided
a linkto the applicable Rules ofPractice. (See Exhibit E) Fifth, the Procedural Orderadvised the parties ofthe requirement to file an answer or motion within thirty (30) days after service ofthe complaint. (See Exhibit F) That order further warned Arctic Air that the failure to file an answer absent good cause, was deemed an admission ofeach allegation in the complaint. (See Exhibit F)
11. Notwithstanding the, procedural requirements and admonishments provided in the above documents, including the receipt ofcopies ofand 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 ofGlobal 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 ofeach allegation in the complaint. Consequently, there are no genuine issues ofmaterial fact and the FAA is entitled to a decision as a matter oflaw. 13. Section 13.218(£)(5) ofthe Rules ofPractice in FAA Civil Penalty Actions provides in pertinentpart that '[t]he administrative lawjudge shall grant a party's motion for decision ifthe pleadings, depositions, answers to interrogatories, admissions, matters that the administrative lawjudge has officially noted, or evidence introduced during the hearing showthat there is no genuine issue ofmaterial fact and that the party making the motion is entitled to a decision as a matter oflaw."14. In this case, because Arctic Air failed to file an answer to the FAA's complaint, there are
no genuine issues ofmaterial fact and the FAA is entitled to a decision as a matter oflaw. Forthis reason, and as more fully discussed below, the ALJ should grant the motion.
WHEREFORE, the FAArespectfully 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 LawJudge Office ofHearings, M-20 U.S. Department ofTransportation 1200 NewJersey 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 2Wl000-AGC-430 Washington, DC 20591
July 22, 2014U.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 REGULARU.S. MAIL 

# RECEIVED
January 18,2013 

## JUL 2 22014 

## 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 ofinvestigation, it appears that: 1. Arctic Air Ala.Ska, Inc. ("Arctic Air") is now, and at all times mentioned herein was, the holder ofAir Carrier Certificate No. A2KA929W, issued under 14 C.P.R. part 119, and authorized to conduct operations under 14 C.F.R: part 135 ofthe 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. part40 for its Antidrug and Alcohol Misuse Prevention Program. 3. On or about May 24, 2012, the Federal Aviation Administration conducted an inspection ofArctic Air's Antidrug and Alcohol Misuse Prevention Program. 4. As a result ofthe inspection, the following was discovered:
a. On or about April23, 2012, Arctic Airhired 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. Osterhoudtto perform safetysensitve maintenance on civil aircraftNl074F, 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 I079, 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 onor about October 4, 2010. v. Specimen ID 

### # 2189979, collected on or aboutNovember 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 ofJuly I, 2010 to December 31,2010. By reason ofthe foregoing, Arctic Air violated the following Federal Aviation and Department ofTransportation 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 drugtest 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 summaryto 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 penaltynot to exceed $11,000 for each violation ofthe Federal Aviation Regulations. Afterreviewing all of the information contained in our investigative file, wepropose to assess a civil penalty in the amount of$8,200 for these violations. Enclosed is information on ArcticAir'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 ofthe alternatives explained in the enclosed reply form within 30 days ofreceiving this Notice. IfArctic Air fails to submit its choice within 30 days ofits receipt ofthis Notice, it will have no further right to participate in the informal procedures. Please direct all communications to Autunm Killingham, Attorney, Enforcement Division/AGC300, Office ofthe ChiefCounsel, Federal Aviation Administration, 800 Independence Avenue, S.W., Washington, D.C. 20591, (202) 267-7728, facsimile (202) 267-5106.Peter J. Lynch Assistant ChiefCounsel for Enforcement
By: Hingham, tto Enforce ent Division/AGC-300 Office ofthe ChiefCounsel 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 ofPart 13
CERTIFICATE OF SERVICE I hereby certify that on this date, I served a copy ofthe foregoing Notice ofProposed 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 REGULARU.S. MAIL May 5, 2014 James I. Hamilton President/CEO Arctic

### AirAlaska, Inc. 3540 UniversityAve. South Fairbanks, AK 99709 RE: Arctic AirAlaska, 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 ofProposed Civil Penalty that the FAA proposedto assess a civil penalty in the amount of$8,200. 1. Arctic AirAlaska, Inc. ("Arctic Air") is now, and at all times mentioned herein was, the holder ofAir Carrier CertificateNo. A2KA929W, issued under 14 C.F.R. part 119, and authorized to conduct operations under 14 C.F.R. part 135 ofthe Federal Aviation Regulations. 2. At all times mentioned herein, Arctic Air was required to comply withthe requirements of 14 C.F.R. part 120 and 49 C.F.R. part 40 for its Antidrug andAlcohol Misuse PreventionProgram. 3. On or aboutMay 24, 2012, the Federal AviationAdministration conducted an inspection ofArctic Air's Antidrug and Alcohol Misuse Prevention Program. 4. As a result ofthe inspection, the following was discovered:
a. On or aboutApril 23, 2012, Arctic AirhiredRobert Osterhoudt to perform maintenance orpreventive maintenance duties. b. Onor about May 1, 2012, Arctic Airpermitted Mr. Osterhoudtto perform safetysensitive maintenance on civil aircraftN3741Z, listed onArctic Air's part 135 operations specifications.

EXHIBITc. On or about April23, 2012, Artie Airpermitted Mr. Osterhoudtto perform safetysensitve maintenance on civil aircraftNl074F, 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. SpecimenID 

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

### # 6431084, collected on or about August II, 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 1I, 2010. f. Arctic Air's laboratory, Quest Diagnostics, did not transmit the employer-specific aggregate statistical summary to Arctic Air for the period ofJuly 1, 20I0to December 3I, 2010. Byreason ofthe foregoing, Arctic Air violated the following Federal Aviation and Department ofTransportation Regulations: (a) 14 C.F.R. 

### § 120.I09(a)(1), inthat ithired 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 testresult for that individual; 

### (b) 49 C.F.R. § 40.111(a) and 49 C.F.R. § 40.111(a)(3), inthat its laboratory did not transmit an employer-specific aggregate statistical summaryto Arctic Air by January 20, 2011, coveringthetime period from July 1, 2010 to December 31, 201 0. In accordance with 49 U.S.C. § 46301(a)(5)(A), Arctic Air is subjectto a civilpenaltynot to •exceed $11,000 for each violation ofthe Federal Aviation Regulations. After reviewing all of the irrformation contained in our investigative file, wepropose to assess a civil penalty in the amount of$8,200 for these violations. Unless you submitthe proposed civil penalty or an agreed upon amount on or before 15 days after youreceive this Final Notice, ormail or personally deliver, in writing, your request for hearing 

### inthis matter, on or before 15 days after youreceive this Final Notice, we will issue an Order Assessing Civil Penalty, and you will have no further right to a hearing. Ifyou do not submit a writtenrequest for ahearing orpay an agreed upon amount, youmustpaythe proposed civii penalty.Yourrequest for a hearing must be sentto 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 undersignedFAA attorney. Yourrequest must be dated and signed in accordance with section 13.16 ofthe Federal Aviation Regulations (14 C.F.R. Section 13.16)(copy enclosed). Youmaypaythe proposed penaltyby submitting a certified check or money order payable to the "FederalAviation Administration," to Federal Aviation Administration, Atten: Kathy Gore, AMK-322, Mike Momoney Aeronautical Center, Office ofFinancial & Budget Services, General Accounting Branch, 6500 SouthMacArthur Blvd., Oklahoma City, OK. 73169. Ifyou electto submit a check, please also send a copy ofthe checkto Autumn Killingham, EnforcementDivision, Office ofthe ChiefCounsel, 800 Independence Avenue, S.W., Washington, D.C. 20591, USA, (202) 267-7728. Peter

### J. Lynch Assistant ChiefCounsel

By:
Office ofthe ChiefCounsel Telephone: (202) 267-7728 Facsimile: (202) 267-5106CERTIFICATE OF SERVICE I hereby certify that on this date, I served a copy ofthe foregoing Final Notice of Proposed Civil Penalty inArctic Air Alaska, Inc., Case No. 2012WP910268, by Certified Mail, returnreceipt requested, and by regularU.S. mail, addressedto: James I. Hamilton President/CEO Arctic Air Alaska, Inc. 3540 University Ave. South Fairbanks, AK 99709

Date: May 5, 2014

# RECEIVED MAY 2 22014 U.S. DEPARTMENT OF TRANSPORTATION
..

FEDERAL AVIATION ADMINISTRATION 

## HEARING DOCKET ) Inthe Matter ofArtie AirAlaska, Inc. ) FAA Case No. 2011WP910076 )

### ---------------------------~
COMPLAINT The Federal

## Aviatio~inistration ("Complainant") by counsel, hereby files its Complaint, pursuant to Rule 208 ofthe Rules ofPractice (14 C.F.R. 13.208), and states as follows: I. On June 18, 2013, Respondent was advised bymail through a Notice ofProposed Civil Penalty that the FAAproposedto assess a civil penalty in the amount of$8,200. OnMay 19, 2014, 2014, Respondentrequested a hearing. II.

rr /i 1. Arctic AirAlaska, 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 authorizedto conduct operations under 14 C.F.R. part 135 ofthe Federal Aviation Regulations.

2. At all times mentioned herein, ArcticAir was required to comply with the requirements of 14 C.F.R. part 120 and 49 C.F.R. part40 for its Antidrug and Alcohol Misuse PreventionProgram.

### ~~'~ 

### EXHIBIT**1ix~:~** JJ _,,-- --**~--"**3. Onor aboutMay 24, 2012, the Federal Aviation Administration conducted an inspection ofArctic Air'sAntidrug and Alcohol Misuse Prevention Program.

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

a. On or about Apri123, 2012, Arctic Air hired Robert Osterhoudtto perform maintenance orpreventive maintenance duties.

b. On or about May I, 2012, Arctic Air permitted Mr. Osterhoudtto perform safetysensitive maintenance on civil a,ircraft N3741Z, listed onArctic Air's part 135 operations specifications.

c. On or about April23, 2012, Artie Airpermitted Mr. Osterhoudtto perform safetysensitve maintenance on civil aircraft N1074F, listed onArtieAir's part 135 operations specifications.

d. Arctic Air hired Mr. Osterhoudt for a safety-sensitive function without first conducting apre-employment drug test and receiving a verified negative result.

e. BetweenJuly 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 aboutNovember 11, 2010.

f. Arctic Air's laboratory, QuestDiagnostics, did not transmit the employer-specific aggregate statistical summary to ArcticAirfor the period ofJuly 1, 2010 to December 31,2010. 

### III. I. Byreason ofthe foregoing, Arctic Airviolated the following Federal Aviation and Department ofTransportation Regulations:


### (a)

(b) 14 C.F.R. 

### § 120.109(a)(l), in that ithired 

### Mr. Osterhoudt for a safetysensitive function listed in 14 C.F.R. 

### § 120.105 withoutfirst 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 nottransmit 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 ofthis case and 

### in accordance with49 U.S.C. 

### § 46301(a)(5)(A), a civil penalty inthe amount of$8,200 is appropriate.
WHEREFORE, the Agency, by counsel, respectfullyrequests that the Administrative LawJudge enter an order that Respondent be assessed a civil penalty 

### inthe amount of$8,200.

Dated this 22"d day ofMay, 2014. Peter J. Lynch Assistant ChiefCounsel
ingham Enfo mentDivision Office ofthe ChiefCounsel (202) 267-7728

PLEASE NOTE: Pursuantto Title 14 C.F.R. 

### § 13.209(a), you are requiredto file a written answer to this Complaint, or a written Motionto Dismiss ifappropriate, not later thanthirty (30) days after the date shownonthe Certificate ofService which follows.CERTIFICATE OF SERVICE I hereby certify thatthe foregoing Complaint, inthe 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 UniversityAve. South Fairbanks, AK 99709 The original and a copy was also personally delivered to: HearingDocket (Original and 1 copy) Federal AviationAdministration 600 Independence Avenue, S.W. Room 2Wl000-AGC-430 Washington, DC 20591 May 22,2014 

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Sent To**Jam~s** I. Hamilton Pres1dent/CEO S17ool. Jv!rfJ!}t;AirAlaska, Inc. orPO**&J.Roa~** UniversityAve. South etry,**.stat{~nks,** AK 99709Certified Mail Provides:

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,. A unique identifier for your mailpiecs 11 A record of delivery kept by ihe Postal Service tor two years Important Reminders: 1!1 Cetii!ied Mall may ONLY be combined with First-Class Mail® or Priority Mail®. 11 Certilied Mail is notavailable lor any class of international mall. 11 NO INSURANCE COVERAGE IS PROVIDED with Certified Mail. for

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Autumn Killingham Federal Aviation Administration Office ofLIJ.e ChlefCounsel 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 ofArctic AirAlaska, Inc., FDMS No. FAA 2014-0316 DearParties: The Hearing Dockethas received the complaint inthis FAA civil penalty action. Please include the above-referenced Federal DocketManagement System (FDMS) number on all correspondence and on each document that youfile with the Hearing Docket in tills proceeding. Youwill receive a letter from the Office ofHearings once an administrative lawjudge is assigned to this case. FAA civil penalty actions are governed by the Rules ofPractice, 14 C.F.R. 

### §§ 13.16 and 13.201- 13.235. The Ru1es ofPractice, as well as other useful information about civil penalty proceedings and indexes ofdecisions issued bythe 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 withthe Hearing Docket in non-security cases will be available publiclythrough the following Internet website: http://WVvw.regulations.gov/. Ifyou plan to file a document containinginformationthat should notbe made publicly available, you should file a motionunder 14 C.F.R. 

### § 13.226. EXHIBIT 

## jany 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 AIRALASKA, INC 1• DOCKETNO. 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 ofPractice for this proceeding are set forth in 14 C.F.R. Part 

### 13, Subpart 

### G, ofthe Federal Aviation Regulations3• Those rules provide, inter alia, that the Respondent must file 

### a written Answer or motion within thirty (30) days after service ofthe Complaint (14 C.F.R. § I3.209(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 ofeach allegation in the Complaint (§13.209(i)), and that, absent agreement ofthe parties, a party seeking an extension of time must file a written motion not less than seven (7) days betore 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 answershall admit, deny, or state that the person is without sufficient knowledge orinformation to admit or deny, each numbered paragraph ofthe; complaint. Any statement or allegation contained in the complaint that is not specifically denied in the answer may be deemed an admission ofthe truth of that allegation. A general denial ofthe complaint is deemed a failure to t·ile an answer.

1This 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 ofPr-;ctice, as well as other materials relating to civil penalty cases, are available on the internet at; IItip:1/ww,v ,(aa.govlubollll<!/)icc_orglheadq 1 <arter.v_off/ ces! agd pol_ad)udiell/ion/ age-l001c•ivi/__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,


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Under FAA Order

### 2150.3B and the Rules governingthese proceedings, the Agency attorney and the Respondent are encouraged to consider the possibility of settlement and compromise ofthis matter. 4 Compromise may be eflected with or without a finding ofviolation (14 C.F.R. §13.16 (n) (1)}. 

### NOTE: l11is presiding Judge does not require "Discovery" be served on the Judge. OtherJudges 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. Thejudge will not discuss the case with any party, orrepresentative on an ex parte basis, Administrative matters may be addressed to StaffAssistant, 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. Ifthe 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 ofcourtroom 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 ( 15) days after receipt ofthe transcript; Respondent shall its brieffifteen (15) clays therea!\er; and any rebuttal briefby the Complainant shall be tiled seven (7) days thereafter.

'1 ''The public policy offavoring 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 andProcedure: 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 lawjudge shall give each party at lcust60 days notice of the date, time and location ofthe 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 thejudge'scalendar. 2DOT 

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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 ofthe U.S. Department ofTransportation. Office ofHearings. 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 ofsubmissions. The parties arc encouraged, but not required, to'file submissions by private delivery service, facsimile, or email. The certificate ofservice shall reflect the manner ofservice. 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 ofHearings, M-20 U.S. Department ofTransportation 1200NewJcrsey Avenue, S.E. (Ell-310) Washington, D.C. 

### 20590 Attn: PatriciaMatthews (Richard.Goodwin@.dol.gov) Administrative matters should be directed to Patricia Matthews. StatTAssi$tant (202) 366-5121 (Patt·!cia.Marthews@dllt.gov). All other matters should be addressed in writing/email to Judgc 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 ofthe administrative law judge, Ifan agency at1omey withdl'llws the complaint or u party withdraws the request for a hearing and the answer. the administrative lawjudge $hall dismiss the proceedings under this subpart with prejudice.'' 1 S"".' In the Matter ofLewjs Drnke & Associates, FAA Docket No. CP03S00045, DMS. No. PAA-2003- 16379, "Order Tenninating Proceeding", served February 26. 2005; citing Kerry Jamq$ Eldridge. i'AA Docket CPS9GL04S8, "Order Canceling Hearing and Tenninating Proceeding''. served January 16, 1991, at l. 

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DocketNo. FAA-2014-0316 (Civil.Penalty Action) SERVICE LIST ·BYU.S. MAIL
. ORIGINAL & ONE COPY Federal Aviation Administration 800**Independen~e** Avenue, S.W. "I,Vashington, DC20591 Attention: Hearing Docket Clerk, A00-430 

### WilburWrightBuilding-Suite2Wl0001 

### ·ONE COPY James 

### l. Hamilton, President/CEO ArcticAirAlaska, J"nc., 

### Respondenl 3540 UniversityAve. South 

### fairbanks, AK 99709 PeterLynch, 

### Complainant's Counsel Assistant ChiefCounsel forEnforcement Officeofthe ChiefCounsel, AGC·300 Federal AviationAdministration 800 lndependence Avenue, 

### S.W. Washington, DC 20591 TEL: 202-267-7728 

### FAX: 202·267·5106 '•



### The HonorableRichard C. Goodwin,

### Administrative 

### .LawJudge Office ofHearings, M·20. U.S. DepartmentofTransportation 1200NewJerseyAvenue, S.E. (El1·310) Washington, DC 20590 TEL: 202-366-5121 StaffAssistant FAX: 202-366-7536

1 Service was by 0 .S. Mail. Forscrvico illpersonor by oxpedltod courier, use the following; addtoss: Fodoral Avil\tion**Adrl:tinistn~tion,** 600 IndcpendcncoAvenue, S.W., WilburWright**Building~** Suite 2Wl000, Washington, DC 20591; Attention; Hc:aringDocket Clork, AGC-430.
.