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S3 

SCOTT R, MORKIS 

FAA OtTICK OF RECilONAL COUMSF.l1601 LrNDAVE;.,SW 

RENTON, WASHINGTON 98057 

TEI.EPH0N1;: 425/227-1417 

FACSIMILE; 425/227-1 00 7 

APARTMENT OF 

•^;--:0PtR/V[10NS 

UNITED STATES OF AMERICA 

DEPARTMENT OF TRANSPORTATION 

OFFICE OF HEARINGS 

WASHINGTON, D.C, 

IN THE MATTER OF 

FEDERAL EXPRESS. INC. 

FAA DOCKET NO. CP09NM0010 (^^^^^' ^ ^ 7 

DMS No. FAA-2009-0721 t ,^60^ ' (^^Sf^ 

FAACa-seNo, 2007NM700156 , 

Judge Richard Goodwin 

MOTION TO TAKE JUDICIAL NOTICE 

ComplaioanL, through his undersigned counsel, pursuant to Rules of Practice 13.21.8(a) and PRE 

201, hereby roovcs thattheALJ take judicial notice of the following: 

1. The Administrator's published sanction guidelines for hazardous material violations containt^d at 

64 Fed. Reg. 19443 - 19450 (April 21,1999). (Attached) 

2. RSPA Formal Interpretation of Regulations, 63 Fed. Reg, 30411 - 30412 (June 4, 1998) 

[Constructive Knowledge guidance], (Attached) 

3. In addition to regulatory violations set forth in the Complaint, the following HaJtardous Material 

Regulations (49 C.F.R.): 

a. Section 171.8 

b. Sections 172.101 (Table); 172.200,172.300. and 172.316 

c. Sections 173.27 and 173.150 

DATED tliis 13th dav of October 2010. 

...^ ^ 

COTTR. MORRIS 

P A A Attorney 

Motiou to Take JuilicialfJorice 

PAA Dockev No, CmSNMOOlO 

Page I f>l' 2 

SSO/SOO? SWQ VVd 

SCOTT R, MORKTS. FAA ATTORNEY 

TEL. 425.227,1417; FAX'. 425.227.1007 

3frLSeGl7202 XVd eO-U 0L03/6L/0L 
10/13/2Q10 12:53 4257?71907 ANM7 PASt 03/25 

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CERTIFICATE OF SERVICE 

I hereby certify that the foregoing Motion to Take Judicial Notice has been jicrved via facsimile 

and Certified Mail - Return Receipt Requested this date, to the following; 

The Honorable Richard C Goodwin 

Office of hearings, M-20 

1200 New Jersey Avenue, S,E. 

East Building Ground Floor. Km El2-320 

Washington, D.C. 2O590 

TEL; 202.366.2139 

FAX: 202.366.7536 

Federal Aviation Administration 

800 Independence Avenue SW 

Wasliingtan, D-C. 20591 

Attn; Hearing Docket Clerk, AGC-430 

Wilbur Wright Building - Suite 2W1000 

FAX: 202,4^93.5142 

Courtney E. Felts 

Staff Attorney, Federal Express, Inc. 

3620 Hacks Cross Road 

Buildings, 3 "^ Floor 

Memphis, TN 38125-8800 

TEL: 901.434.8632 

FAX: 901.434.8283 

Dated this 13th day of October, 2010. 

/ > ^ 

\fOIFAIR CHIN 

Office of Regional Counsel (ANM-7) 

Federal Aviation Administration 

1601 LindAve. SW 

Renton, WA 98057 

425.227.2160 

Moti«n 1o TaJtt Judidtit Notice 

FAA Doclcist No. CP09MM9010 

ScDTT R. MORRIS, TAA ATTORNEY 

TT.I,: 425,227.1417; FAX: 425.227,1007 

sso/eooH SHQ VVd SfLSeGt^SO S XVd SO'l l 0102/GL/O l 
It3/13/201 0 12:5 3 4252271007 ANM7 PAGE 04/25 

f Federal KegiMcr/Vpl. g4. No. 76/Wcdnesdfly, April 21, lS9g/Rule5 and ReBuJstians 1944 3 

Fairness Act 

Th« Small Buslnftsx Rcgulatoxy 

•nTDTcement Fatmcss Act of 1996 CPub. 

L. 104-12IJ piovlda generally for 

congressional! revjcwr ot agency rules. A 

icponfjig nqfVnmem b triggered In 

Instaoices vrhere NCUA Issuu a final 

rute as defined by Section 5S] of dic 

A(lm)n[E.li9UN>e ProcBdures Ac t 5 U,S.C. 

SiS I. The Olflce of Management and 

Budget has detennlned (bat this rule 

does notconstsute a major rule for' 

purposes of the SrtxaU Business 

ReguIatDiy Enforcement Falmesii Act of 

1996. 

List orSi4jccits In 12 CFR Pivt 701 

ChartOble OMttribudcnu, Credit 

unions. 

By- Ifae Nattonnl Cndx Union 

AikAMMntienlieard on April ]5. 1999. 

fcdcrBakw. 

Sacrvta/jr of the Board. 

for the reasons set forth above, NCUA 

amends 12 CFTC pu t 701 a s follows: 

authorize appropriate officials of die 

federal owlli union to select ledplenci 

and disburse budgotcd Avids aimnE 

those redplents. 

(FR Doc 99-9931 FUod 4-20-99; 9:45. «n)l 

OEPARTWEKT OF TRANSPORTATION 

Federal Aviation Admlntetrallon 

14 CFR Patt 13 

FMsral Aviation AdmhilsimioR Policy 

on Enfeiremcnl of ihs Hazardous 

Malwfal* Rugulallons: PMwRy 

GuMBllnes 

ACEMcr: Federal Aviation 

Admlnlsiratlan (FAA). DOT. 

Acnoit t;eneral satament orpoUcy. 

PARTT 7QT—ORGANIZATION AND • 

OPERATION OF FEDERAL CREDTT 

UNIONS 

\ 1, The authorit/ cltadcn for pa n 701 

continues TO recid as ibllmvs: 

AaHwrlQf: 12 US.C. 1752(9, ] 7SS. 1758. 

'757.1759. ITBln I7BIb, 17B6, ITBT. 1782, 

.7M. 17S7, and 1789. SoEiOen 701.6 la alte 

nithortad 17 31 US. a 3717. Sectfon 701J»1 

Isalsoaiithortadtfy'lSir.&Cieoi tt sea. 

€j U.S.C I8S1 and <2 US-C 3601~3eia* 

Sectten 7QI35 is aba authoriaed by 42 

U.S.C. 4311-4312, ^ 

Z. Part 701 Is aiXkeiMJod by adding 

§70'1.25tDrwla$JfolJoW3r 

9701,26 t^haittatth Dommwvena antf 

((MWiltona^ 

(a^ A fedenl credU xMion may mat e 

charltabk cmtrtlTutlarB and/or donate 

ttin b to reclplenb not ateanlzed tot 

profit that are located In or conduct 

activities In a community in which the 

federal czedlt union has a place of 

business or ID oi^nlzsttons that are tax 

CKemptDi^nizatlons under Section 

501C<^(3) of the Interna] Revenue Code 

and opoTBte prtmailly to promote and 

develop credit unions. 

(b) In a board of directors must 

appnrve-cfiarltable contributions and/or 

donations, and the apprcryal must be 

based on a determination by the board 

of dlrecton that die contributions and/ 

or doriatlons BI« in the best interests of 

*io fedaal oedlt union and are 

>asonabIe given the size and financial 

x>ndiSon of the federal oedli union, 

ilie board of dlredors. If it chooses, 

may establish a bu<lget for charitable 

contributions and/or dortatlons and 

snnausm this, documenc slates tint 

FAA poUq^ on defenotnlzig the sanction 

amounts In FAA artlcKcecneat actions 

addressing vfoladorks of tiK Department 

of'nanq>onacU)n Hxeardous MaieHal 

Reguladons (HMI^. This policy 

statocent provides pUchnoe fiar agency 

personnel In the exercise of tiie FAA'5 

pnuBcumlal dlsoedon in enRxtement 

cases conconliiK trarisportatlen or 

hazardotis natBiab by air. The 

siUdAnee should aid fai snal)fsls of the 

facts and cinrwDstanoB of each ev e so 

as to aniva at an appropriate sanction in 

light cf the statutcnrily defined paalt y 

consldcrattona. Tlie analytical 

frtunework should also ptmnoie a 

relative consistency In detennlnlag cfvU 

penalties for vfolatlans of Att HMR. 

fclWCIWrfcDATEt April 14. 1999. 

Fon raRTHEn VfotauoKut camAcr: 

BlU Wilkenii^ Office of QvU Aviation 

Seanity, Dangeraus Goods and Carro 

Security Division, telephone: (202) 5G7~ 

9864. facslntOe (209 267-576a omall; 

0111.W||)cenlng>1ka.gov, inaiUng 

address; ACO-SOO, 600 Independence 

Avenue, S.Vf.. Washlneton. D,C. Z05S1, 

or AUuk H. Hotnwliz. Enfoirxment 

Division, Office of the Chief Counsel, 

telephone (^02) 2^-3137. facsimile 

(202) 267S106, tataih 

AlIanJivwdtBfiaa^Y, maUliv 

addreaa: ACC-300, BOO Independence 

Avenue, $.W.. WasMr^gtoa D.C. 20591. 

suppLEMBirany vrcmuATioH: 

Backsimuid 

Congress determined that the 

unregulated transportation of hazardous 

mateirlals constitutes a threat to public 

safiBQr In aQ forms of trana^tortatiora. 

Congress addressed that thrtat In 1974 

by cnacdnf (he Hazardous Materials 

Transportation Act (HWrTA). By 1990, 

Centre s detomined that effective 

enforcement oTtho HMTA required 

more severe action, and enacted the 

Hazardous Matertals Transpoitatiori 

UnUbnii Safely Act of 1990, Public Law 

No. 101-B15,1990 U.S. Code Congress, 

a Admin. News lOi SU L 4605. The 

priniary effect of this 1990 revision of 

the HMTA was to raise Ihe naxtmuni 

dvU pcnolry for violation of my 

regtilatlon enacted under the F^^ A lo 

525,000, and. fbr the Qist time, tD 

requiie a S250 minlmupi penalty fur any 

such violation. The HMTA was 

lecodlfled in 19Q4 «nd is now reftn-Ed 

[o as the 'Tederal hazardousmaierlal 

mitsponatlon law." 1994 VS. Code 

, Confess. & Adrrdn. News 108 Star. 759. 

codified at 49 U.S.C. 510I-5127. In the 

1994 recodiQcatlon, Congres 

^leciflcaUystated that the 

tecodJUiaitlon created no sulscantlve 

chanee to the earlier form of the satute. 

The Federal CtvU Penaltiei Inflatton 

Adjustmenr A(.t of 1990.2B U3.C. 2461 

(not^. as amended by the Debt 

Collectlao IiDprovEment Act of 1995. 

PubUcLaw 104-134. April 2i, I90S. 

twuvlOes a mechanism tor ad|u5tiDencs 

for monetary dvU penalties fcr Inflation 

In order to mamcrin the detorent cSbct 

of monetary cM l penalties and pnnnote 

compliance with the law. Under the 

statute, the n ^ cMI penalty 

mvdmums cannot be appUM unles.-;: 

thi ^ are Implemented t y icEulatlon. On , 

December 20,1996. die PAA published 

ailnal rule (61FR £744). implenientlng 

tlie sbtut e tot nc h civil penalty subject 

to the FAA's JurfsdJcdan. On January 

21.1997. theFAApublteheda 

conection to the tinti rale (Ez FR 4134). 

The Snal rule is codified at 14 CFR Part 

13, SubpoftR Pivsuant to 14 CFR 

l3J05(d), the nuadmum civil penalty 

that may be aeseatvid for a violation of 

the Federal hasardous matoial law or a 

hazat«iou3 material regulation (s now 

t2T.SOO. 

Consreas assigned the responsibility 

Ibr the enforcccnent of the Federal 

hazandeus material tiatupqrtrtlon law to 

the SeoeCary of Tkvisportation. WIthbi 

the Department of Transportation, the 

Research and Special pjograms 

Admlnlseration (RSPA) adapts the 

Hazardous Materials Regulationx 

(HMtQ. 49 CFR parts 171 ihrvush I7B. 

which govern the transpcKtatlon of 

hazardous materials (Haemal). AJthoueh 

RSPA ha» some enforcement 

responsibl&tles. the rtspmwlMlliyfor 

enforcing the HMR vriUi respect ID clvl) 

avtadon is delegated by the Seoetaty of 

Ttansportiilan co the PAA. 49 CFR 

i.4rag. 

The HMR set ftortb regulatfafks for the 

transportadon of Haamat A lcnowli>g 

violation of the statute or of the HMK 

can support the assessment of a clvtl 

S30/fr00ia swa VVd StLSSGtpSOS XVd eO-L L 0L02/GL/0 L 
ia/13/2B10 12:53 <l252271l3t)7 flNM7 PAGE (35/25 

/ " " 19^44 Federal RBEi8tgi-/Vol. 64. NP. 76/Wedne5day. ApfO 21. 1999/Rulea and Rfegutatlons^ 

penalty between S250 iind J27.500. A 

person acts knmvingjy when the person 

)as aaual knowledge of the facta giving 

Ise to the violaHoTK or a reasonable 

poson acting In the clicumstances and 

aercislnK leasonable care. wotUd haive 

oStooJSirfBe.49U,S.C. sm(a)(0(A). 

The clvU pmaldes authorized undbr tht 

statute apply to EACH violation of any 

rcguJsUoR set foith In the HKfR. 

MorecrveT. under the statute, each 

condnuliiS violation of the HMR- can 

cDnstltuse aseporate violation *or eacli 

day a violation <»r*dntie». bi sa^o n 

5124 or thesWdite. Confess presolbed 

diinlnal penalties lor a wtUfiil violation 

ofthe Pedeiai hazardous mat^ial 

iranspoftattiD law or the HMR; wmfiil 

violadons rMudre cvlderKe of both 

knowledge rf the la\wa arKl regulatlona 

and intent to violate than. 

Fart 13 of the Federal Avladon 

Reffulatlatu—Irrvestlcaiive and 

Enftmemcrt Procedures (14 CFR Part 

13} govcnns tf>e prDPedkit«9 applicable to 

enfljrcemMJt of the HMR by the F'AA. 

Hannat vlototlons ooewrtng on or after 

August 2,1999. nwy be disitdsstd by an 

edmfnlscratfva law Judge (AIJO if a 

Nodce of Fropoaed CtvU PenalQr has not 

been Issued within 2 year* of the 

violation. unlesK good causa ibr delay 

>33bt9cn shirmi. 14 CFR 13.20S(d)> 

iCanaldefaiiop «if Stalutory Criteria 

In detenDlslne the sanction BO be 

assessed, pcnal^ critcrta set forth In 49 

U.S.C. 5123 must be considered- These 

crliola are fiie nature, clrcun>9taiice$, 

extent, and pavliy oC the violtfUon. the 

degree of oJp^Ulty of the vtobtor. any 

h\ax:0ryorp»st.vialaaoia, the ablU^ to 

pay, any eflect on the ability t<* condmie 

o do business, and otfier matters as 

Justice nquin*. ^»me of these 

ccaisldemtlons abeady a n Eactored to 

some eetoit iniD the categotie« (n the 

Hazanlouy MatBrial Sencdon Guidance 

I^ifatrix. Thestatuitoiy lactonr ai» further 

consldoed under the welghdng analTsCs 

that ts perfonncd lo Indicate the amount 

of civil penalty within the appropriate 

range, Le. at die inlnlRuioi. modeseie. 

or maxiinum peition of the sanction 

raitge. To ccanply wl A the underlying 

purp<ffcs of the Federal hazardous 

matEtfial transpoaidork law smd HMR. a 

sancdon should be imposed that is 

sufflciently detcnent but not excessive. 

Tlie HsiardMtf Mateflals Sanction 

Guidance is designed to pinmote better 

consbxcnty so thai slrtdlar penalties are 

Imposed insioillar cases. Tlie Matrix 

'mges are Intended to reflect the nature. 

.{JrcuiDStsncca, extent, and gravity of the 

:ase as ccrppared with other types of 

OSes. Each case, however, must be 

evaluated on> ftx own facts. A sanction 

maty differ ftom th« Matrix ranges when 

tlia fidb and clnvmstances of a case 

support either a peater or lesser 

penalty. When a special agent believes 

tbA a penalty sbcMld exceed the Matrix 

ranges, the agent should oonstdt with 

Iqpt counsel before finther piroocsslne 

of the ^ntoreeinent Investigative Keport 

(EIR). This oonsultafdon 1$ not necessaty 

In the case oTa xwraiMiKaded penally 

that Is less than that provided in the 

Matrix. In cither sltuatHm, the basis fbr 

the dvtslon to go outside the rar^ges 

should be CKpIalrved in. detoU. 

Vielatlom of Part 175 of the HMR. 

which establish particular nsiulremenis 

fbr air canien and oif>er alrcnft 

opeiBtota. cue contained In a separate 

matrix. Howevsr. such opeidtocs oflen 

oSierlazardous materials for air 

transportation,^ as weO «s accept and 

transiMrt them. For this reason, sudt 

openttea may be Uable for violations 

both as a business entt^ wltMn the 

flajardous MatErtals Sanoton OuJdanoe 

Matrix, as well as spedflc air ourler 

violatloiis. 

Use of the Sanction Guldaace 

TKs guidance pravldea agency 

peffonntl with a systematic way to 

evaluatea case andanlve at an 

apprepriftte penalty, consldoing all the 

relevant statutory criteria Including any 

mltl^iing and aggravAtir^ 

drcumstaneea; Statuimy canOdenilons 

haw been factored into die various 

ranges within the Sanction Guidance 

Matrix. Determinatton of where » 

sancdon lies within these ranges Is 

aided by ^ seites of weighting questlDns 

that probe (he various aggravating and 

mitigating £actM9 that may exist in a 

FKt; ^ e wct|)itlrig analysis Is 

perfaimcd. Agency personnel napond 

u a series of cjuestiORt to,deteTmlne the 

^ifft^iB virelght of the case. Ttot 

^^legate weight of the case helps 

deteimlnc the sanction amount of each 

vlolacian ^u p wlihbi the established 

raises of the Mabtc 

R ts Important to noie that 

detennlnAtloo of where the sartenon lies 

vrithin tte Matrix Is not the T«siilt of a 

mathonatlcd computation. Bvaluatloa 

cf tin; case is based on the totality of the 

flKts and clmvnstances^ Generally. If 

the answer to a particular question 

represcsits a more slgritllcant aspect of a 

case, (reater coosldiration should be 

given lo that arBwrer. For eample, 

violations InvoMrtg an extremdy 

dangerous* substance, even Ln minute 

quAtlttes, might warrant a penalty at 

^ maximum end ofthe lenge or even 

a penalty exceeding the Maoix rwigcs^ 

Under the Sanction Guidance Matrtic. 

agency personnel determine the 

eattgoiy of violator the person fails 

within (e.g.. busbtess entity that 

i^:gularly offers, accepts, or transports 

Hflbona^ and the offense calegpiy (e|^. 

undeclared shipment wlthbi Haonat 

quantity Usnltelons). The sanction 

ranges under the various violator 

cat^ortes at e IIUD aocountthe relative 

culpability of the vtolator. SbnUarly. the 

ofletuR caftegorics addieu the natuie. 

drcurosmnces, and ^avity of the 

pardcubr olTerue. After detennlnlng the 

appropriata categories and Interseccng 

box of the Matrix, agency personnel 

theri detemlnc which subcategories of 

Q^iues (eg., sliipptngpapen) sen 

alleged to have been violated Based on 

the weighnng anetysis peifixiiied In 

Section 1, an appropriate penalty Is 

assigned fbr each or the applicable 

vlblatlon poups. The penalty aroount 

Ibr eadt relevant violation group Is 

added toipther to rcedi the 

recommasided saruxlon. 

Under Section DI of the Guidance, (he 

special agent ttien considers othcr 

televant factors. lra::ludlng evidence of 

obcrective action. A (eootnmeaded 

sanction nay be reduced prior to the 

Issuatxse of a Nouce of Proposed Civil 

Penalty when Oiere b adequate reli^iblc 

InfomuHon concerning the corrective 

actIon» taken by a ne^tondeflt 

Corrwave actlcms tf»t J\i3tlfy reduction 

of the reoommendeil penalQr imut 

exceed Ibe mlnieaum legal 

rapUfcments. The special agent lOso 

attempis to provide inTonnatlan 

amoonlrv the alleged vicdator's size, 

nnaocial condition, and ablUty ta pay a 

Tecoranicrtded sanction. 

When an EIR is forwarded to legal 

couiBel fbr cnfmroement acttea counsel 

with gtvc appropctate consideration to 

the recommended SBncdon. FAA legal 

Qoxmsel will also review the fiacnars. 

analysis, and determtnailons under the 

Hoziirdous Mateitals Sarvrdon 

Guidance. Aity basis for deviating fiom 

ih« raconunend sanction Is ocdinarily 

explained to. and discussed with, the 

InvesdpMtng special agent. Final 

detemvuutlon of the sancdon amount 

proposed In the Notice of Proposed. 

Ctvll Penalty ts ordinarily a product of 

Joint deelsoRiBCtMng and appioval of the 

investigating agent and the lepl office. 

Federal Aviation AdaglnbtraaoD 

Hazartfots Materials SancUon 

Gnldance 

This Sanction Guidance Is divided 

Into three sections: 

L Case Anai>sls. 

ft, UtUixarioo of die Sanction OoMance 

Matrix IMatri>i}.wMl 

m. CwijJdeiatlon of adMr Statutory FKiorsThe Sanction Guidance Maoixls coneUned 

In Flgixe I and tfie RLik CatcEortu arc 

conTained in Rgun; Z. 

sso/soo® s w o <• 

VVd 

snssetsos xvd eo-u ovoz/ei/oi 
1U/13/201B 12:53 4252271&07 ANM7 PAGE 0&/25 

c Federa l RcEbter/Vol. 64. No. 76/Wednesday, April 21, 19S9/Rules and Reculatlons 1944 5 

,. I. Case Anal^ls (Bv«lnaUoA of 

^tatulory Assessment Factors) 

Tills section cont;ibis a scries of 

quesdcms designed to assist special 

agents and IttDmcys in evaluating a 

particular osc. The quesUan review 

factors IrrvDlvIng the nature, 

drcunmances, extent and gravity of the 

violatlDa de violator's degree of 

t^ culpability, aixl Die vfelater's history of | 

{I pto r violadons, 56me of these factors ' 

* arc already coroidlered to some extoii 

within the various categories of thi^ 

Sanction Guidance Mafirlx. Di e 

questions In this section provide 

additional conslderatlDn of the statutory 

factors and nantlne the existence of 

aggtavailng and mitigating fooan In a 

case. 

The agen/attotney arvwe n oadi 

question In SecUon 1 and detasmlnes If 

a relative widght of minimum, 

nxidcrate. <w Roodmum should be 

asslgTKd based on the response to the 

question. With the exception a t 

Quesdon Al., not all qfuesaons will 

apply to a gtvai faccsltuEatlan. Question 

Al. . which addresses the nature of the 

haxardoui melerlal(i4 Involved, is the 

only question that atwasys receives a 

."yes" answer to one oft b subquesilons 

^ d Is cDijsidetec] in every case. Tlie 

- aggravating or mldstitlng factors 

xldressed in Ihc questions imty apply to 

dK case when the question receives a 

"yes" response. Questions receiving a 

"no" nsponsB do not aSbct the 

weighting of the case artd are not 

considered. For esGample, If the violation 

resulted in harm to perMns or property, 

that may bean aggravatingftctor in the 

- case. HowGVB', tiw fact that the 

vlolatlcn did not result in irtfiiry or 

danuge. Is ncta mitigating factor artd 

should not lesuli In penalty rniUgatloiL 

In many instances, the answers t o most, 

or all of thequesclons will be "no " and 

the only relevant weighting factor in 

this section will Iw the risk catqoiy of 

the materialidentUIedIn Questton A.I, 

In dctemUniiig the final aggregate 

weight of the case, the responses to each 

of the questions do not have to be 

equally cofBldered. Detomlnadon of 

whether the ovemll case should have a 

mlrdinum. noderate, or maximum 

weight cannot be determined with 

Riathemadail certainty. Generally, If the 

answer to a question demonstrates that 

[he (actor al Issue represents a more 

slgniflnnt aspect of the case, greater 

Innsldoratlai Is given to that fsctor. The 

^Inal agpegatc weight is based on the 

otallly of the facci nod circumstances of 

Jie case. Once determined, ihe final 

aggregate wslght Is then utilized to 

arrive at the recommended sanction for 

each applicable violation group on the 

Sanction Guidance Matrix (Fig, 1), 

A. The Nature, Circumstances. &itent, 

and Cavity of tht VtofaUon 

(Facton Concetnlng Ihe Shipment 

1. What Material (s) Was Offered, 

Transported, or Accepted for Air 

Trar»portatlun7 

(Figure 2 divides hazardous materials of 

particular classes, divisions, and 

packlTTg groups Into three rbk 

categories Category A, Caicgorv B, and 

Category C Find the niaierialCs) at Issue 

in Figure Z und Misurer the quesilcns 

bclowj 

a. Is the materla)(^ olliBred. 

transported or accepted in CategDiy A? 

If yes. assign a Maximum weight. 

b. Is the mataial(4 ofTerrd 

transported or ecoepied In Catesoiy B7 

If yea. assign a Modoaie welgTiL 

e. Is the material^) oBjered 

transported, or accepted In Caticmy C7 

Uyes. assign a Minimum vceighi. 

Cufcianni Mate;Ih« megorleB InPlpB* 2 

represent the Inherent risk of dangtr IP Blr 

bmspotitton posed by the naanlal. V OieiB 

is more than one ^jrpe of hBEHdDia maiEflal 

Invulved in (lie sMimtcnC answer this 

question usini (ha haaanloia anaerlal In ihe 

hl^wsl risk enegDcy. 

2. What Quantity of the Materia]^) Was 

Otfeitd. Transported or Accepted for 

Air TransportadonT 

SLpid Ihe packBge{4 exceed (he 

authtvbed quantl^ UmlotlDits by a 

sigailkant amoitni? 

u yes,, consider a Moderate or 

Maadroum weight dcpeuUr^ on t>» 

depee to wtili£ the limitation was 

occceded. 

' OddaaccNMcIlMMatTbtdlttuEsoiIin 

Section 0 , tahas into accDiint the ActiBl 

shuatfons witere the qwntiw ibntaatiana te 

the raMBlal ore viaeeded. Ihls pait tf the 

analysla la intended to ^aamiim wtMher 

finmcr im^watli^ dicivBcaiMze «At 

where i|iiBntlly limlbtlons ar* mAwJeii fay a 

slptlflcam ttnmin. Whether MM &aor is 

Bsslpied a raodenta or maxiininn wdght will 

deptftd en the degiee fay wfilch tiia qaantitr 

Jtndlatlon was Exceeded. 

Eaasipla: The quantity Smltadon fbr 

psolltte on a pasanger plana Is 5 Ubas pa^ 

package. IT o violator offers 30 Unn m a 

single package «n a paaenger ptee; thb may 

result In a maidinuiii wel ^ Ibr (hb lacair. 

b. Were then: multiple packages In the 

shipment? 

If yes. consider a Mod^rutc or . 

Maximum weighL depending on the . 

number of packages and total wtxnjnt of 

hazardous material being bansported In 

violation. 

Cirfdanee Note A package mcara a 

peckagbtK plu* It* eoaVtau. Thert mMy be 

nnilitple pockagos In one shlpmenl or 

oveipaElb Mulllple packages often represent 

multiple via tatloi» Under the Sanction 

Cuidamz. this ftct Is considered an 

agpevatfag drcumstarnce nther Uian a direct 

muldpUar of :he anctloACor each violation, 

b c b case. howcvB-, mist be evaluateii on Its 

particular beta. A very ktrge-mniiber of 

pai±a ^ m v remit in audi an.e{ies^«ius 

^Dclhae diB nvBalt wcigfit of the case is so 

high that a poialiy b^fmd die maaUmum 

pninc Jn rhe lenge 1» wammteii. 

An Investigation wUI occssloflaUy roveal 

several sMpnieiB from the same offiBor DV«r 

a perlDd «tf several ^m , aQ of whiEh Involve 

vtolsBooa of the KMlC XJirsM Vidcpendait 

acts c^offcrliu ustally are cometidatBd inia 

one EIRand adibcss«d In Oiw Nate D( 

i>Dpoaad CMI Penalty. Knvew. for 

puipoBBS 1^ determining the appfopriate 

aanSon. eadisapanteahiprrKntwitha 

acpaae air waQrbttt or sUppbig papos, . 

SBparale dHOniiloiw and/or s v other 

Qiflili IP II oTaMlihlni Hell 111 jiw iiii 

ahlpmeec b enSnarlor oonddaed a* a 

separat irKldent fvpurpesex cirapp|gdr« 

[>ie sancUen giddanc* aiBlysti. It Is 

suggested Oat Che teparate shlpmenbi b» 

' treated ra indtvldualootBns bi *^ ElKand 

the notice of Prupoaeil Civil Penal^. with , 

each count having sis own sanction derived 

b an ippUothui oT this guMaoM. Nblc, thiae 

m i ^ be mdSdeix. evideiKe to suppiart each 

3L Did the Shipment Cause Damage <v 

Harm to Persons or Property, or Interfere 

With Commerce? 

If >«a. oMisider a Moderate or 

Macunum weight. 

' CeWaixe HateiThe fact that no damage 

DQcuricdasariBult of (he shipment t« not 

a mitlgBtiiig boar. Howevw, damage or iiartn 

may agpwate the luaiee, cliaanstancu, 

ettoe, and parvity of iha vlolatlen. 

D^Mndlrvon iha degtea of dBKiege e»Bcd 

by thesMpoierxartd/ar the ocfaienca nfotha' 

aorevatlng (actus, departure bt n ihe ranjps 

n a y be Justified. 

A Violator's D^rwm of CuJpeblU^ 

CThe Matrix, Flgtve 1. conslden the 

relative culpability of the violator. This 

section of the analysis fkmhcr evaluates 

the degree of culpability of the violator.) 

I. Is the VIoJatnrtfiE Manufsctura- ctf 

the HaBardeus MaterlaI7 

If yes, cotBlder a Maximum welghL 

GeUance MMK A msiutaturcr of a 

hB^vduva materia] ts expected (0 have 

complete knowledgB of Ihe nature of Uie 

hancdous material and ihui. a high degiec 

of culpability win cnHnarily be bnputed to 

IL 

2. Did Someone Other Than the Violator 

Prepare the Shipment fnr 

Transportation? 

If yes. consider a Minimum oir 

Moderate welghL 

GeldHtee Netej Facts suppomng an 

atlbmtfvc mswer to this que«lon may be 

(SUM to mitlEBte cuIpafaliAy and/or pursua a 

530/9001 SWQ VVd 21?LSeGt?20 2 XVd tO'-l L OLOS/GL/O L 
lP/13/2li)i a 12:5 3 d?522?H307 ANM7 PASE 07/25 

i 1944 6 Federal Ke^ster/Vol. 64, No. 76/Wednesday, April 21. 1999/Riilc3 and REgulatlona 

.sepv^e enSrccment action against other 

responsible parties who handled the 

ihlpmi:»C A rhlppcr that reshlfs maonrikb 

iecetved firora anoihi7pci3an tn the same 

^MCkaglng Is Indepvidcntty responsible fcx 

ouuring the ahlpnent cornpltes with the 

HMR. Nevccthekss, 0)e.r«chlpper Is 

(cnoalhr CEnsldiaed t» have a ICBD degres 

oT.culpauiDlQr Ibr ooreplianee of I1B pacKve 

ID received Hewem. if die leshlppcr 

unpads and/or repackages the stupniesit, the 

Tcjhippcr remalna B» culpable as the wiginal 

shippax md goienl^ Is not acuutled 

mltJ^goUon uider tfab welghdug IWnr. (For 

purposes of this seoopa a 'tesldpper" afun 

to a pB3<ai, DXhcr tlvotbe original offoor, 

who oKm B ohipment of haxaidoua imterial 

ti^ truisportatlen.) 

3. Did tlMt Violator Reasonably Rely on 

Incortect Infbtmatlon From Another 

Source? 

If yes> consider a Minimum welghc 

tMdaPcc rfotetPeii fcrmitel or msonable 

icUahce on anothiB-TMrry may be araldgatlnc 

bctot whertDDieiiianng tfa« vlolatDr's dqpec 

of cu^pabllnr-For enmpl^ relitftee on an 

Iwkxurate Na«rlal SaR«r naia Sheet (M5P$3 

may be mltip>tlr<|-

4. Docs the Violator Have a Htstmy of 

PieviDus HMR Violation^ 

If yes. consider a Moderate or 

Maximum welgjit 

<t^.<j.«,^^ NoOcTo establish a vlalanan 

- histMy. apHwvtcilailanmietbeaDacnjHl 

lAdb^ «rvlDlBtlen pursuant to • legal 

x>jrui.«inen( •Olon. S|iccial aienH diouIJ 

aCtsonpt te disEcnoltie Ihc c^p^^vte stnlctve 

of tfw violater and wlMthcr otho-bmbiess 

enUdes or names u * or hme been uwd by 

die estliy Inerde'te obtain a complete 

vtoIadonlUsoay.TherManfrerandaaBor 

vioIadoiB dwuld In cnriililpied. Oranvily, 

. nndlagiorvloIaUsnniMeihaiiSynaraold 

o n y less wdghL ixdos a ooninulng paittem 

ofvlolBtian exists, 

C, OOier FictVKf 

Each case must be evaluated on Its 

particular facts. As such, marry cases 

may present unique scenarliH and 

eggravadng or mj.t|g3ting lacmrs that are 

not toutlrtely seen. If an aggravating or 

mitigating circumstance esdss that Is 

not adequately addreasad elsewhere in 

the sancuon guidance. It may be 

Included and assigned a weight under 

this sectioa TI K factor should be clearly 

Identined and ismlalned m the analysis 

pordon of the EIR and caiefiiUy 

scrutinlzcJ by legal counsel. 

Culdaiice r^DteiFor «eunplc, a shiptnEnt 

oFa single package contalnlr^tieversl 

dlBbrenl hazardDUS materials may presEna an 

^gravadng Iheter. TJm degree of seriouHHss 

U this factor will Increase if (he hasanious 

tnaiKtlala are Incempatlbte vrilh ^ch etlxx 

ind. theetfure. <aeate mt Ineresvd mk. 

MldgBting f>ct«n may also exlat that hav« 

net baon •cfcquattly oonsldcRd. FMexample,» jfalpmenc eorntalnlng a 4e mlnsnia 

quaMlQ^ of iTisnetal fit an amount thu'Mould 

have qualified unrfo- the small qumtlty 

BKEepdob of 9173,4 ony prccon a mltJeailng 

Ibctor ir as a rcsuit theta wu a naluccd risk' 

to saTecy lit eraiuportaUDtk 

D. Determine the Final Aggrcgatt 

Weight of lAe Case 

AUihe rtaponsesAvelghis ate 

evjaluaied to determine a Hnal aggregate 

weight of die case (Minimum, Moderate, 

and Maximum). Questlona recdvirkg a . 

"no" response wtil not be InclucKd In 

i h b evaluation. To detamtne the Bnal 

aggregnie weight, the aeem/attonKy 

mtot exercise his/her dtscretlDn in light 

of the ctatutoiry, fiactocs and knowledge 

of the particular laces of the case; The 

fads of the parQcuIar case wUI dictate 

die relative Importance of each of the 

weighting factms in reaching a flnal 

Qggre^te weight The flttal i^gregaie 

-weight ihoiild be decided as a result of 

careAjl analysis, not a raathonatlca) 

aveiaglns. It is possible that a single 

WBlgbtlne fiactor ou y outweigh ill 

othersi Trw agent/BttofiKy'a analysU 

should alwajys be explained In this 

regard. 

Eaanple: A oue Imfolvifvg a kiieardaiis 

material In the lowest risk eaiegcMy nay be 

ewaluaied to have a maidinm) indfht 

bocausa of iha IBIM quantlqr shipped or the 

damo^ iTsuItlns Dom the iMpmenL 

n . VtOlae tba Matrix (Pigwe I) 

The sanctton ranges'Under tlie eSeior -

and oCense cstegorles of the SanctlMi 

Guidance Matrix reflect die relative 

culpability of the violator arid the 

nature, drcaimstartccs. exteni, and 

gravity of the case. Consideration of 

ttiesepoitlculae statutory fictoniinda 

the Federal hazardous material 

transportation law Is built into the 

Matrix. Further analysis of the statutory 

Eictces Is required to determliB the 

appropriate sanction within the ranges 

estafaUsficd trader the Matrix. This 

ano^ls is peifbrnied in Section 1- Alter 

determining ifae'final aggrcsaie weight 

of the case under the SecUtn | analysis, 

daat weight is applied to the appropnalc 

matrix range to identify the 

recommended sanction amount for each 

of Ihe relevant violation groups and for 

the case as a vidiole, Althoi ^ ihe Notice 

of Proposed Civil Penalty may cite 

numerous -vIoIatlaiB of a patticular part 

or subpart of the HMR, uriless upward 

depaiture IsJtstiDed. a sln^e penalty 

amount for each violation group (s 

ordinarily used to reach Ihe full 

saixnlOR. 

A. tnstrvasons 

1. Identify the appmpriaie category 

for the 'fype of entity and the narture of 

the ofFense Inveh/ed In the CK C Reler 

to the Dcflnlilons Section rhai follows 

the Matrbc In Figure I for guidance. Co 

to the Innasectlng box and Iduonfy the 

applicable sanction range for each 

violation group. 

2. Apply the conclusion reached lr> 

the Section Iwrrfghtlng analysis to 

assign a sanction amount wlthtn the 

minimum, modentie, ormaiJdmum 

portlDn of the sanction range for each 

relevant violation Qcoup. The 

reconlmended civil penalty at this stage 

is the sum of the sanctions for each of 

the applicable violatlDn groups. A 

sanction should not be assessed for a 

violation group If there have becf^ i>o 

-violatloiis of .that part or subpart of the 

flMIL The anctlon amount for each 

vlolatton gmup need not be idoidcal 

but ordlnieily is within the portion of 

the partlcuLir sanction range tiut 

repr««9tts the ovaaD we:^ t of the case. 

3. Depamee from the Matrix rangies— 

The Matrix is designed to cover the 

nu)orl ^ of cassi involving violations of 

the HMR. Tlic £»ct5 ami circumstances 

of • pattlcuJar ca^ae. bowevQ-, may 

Justify either ^m upward or downward 

departuiv Ekom the Matrix ranges. This 

sanction guidancn avtlcipates and 

enctnjragcs tlcparturefrtan the Matrix 

ranges wbenjustlBed. A ease invohring 

violations In which (he iiatuie, 

drcuntstances, extent and gravity of the 

incident are paitlculorly seVBo or 

Bgregioua; Roy/ucrify' upward departure 

Dtom the Matrix. If the Investigating 

agent beUeves, based upon the iacB of 

a case, ifiat a penalty should catceed the 

Matrix rarigcs. the agent should consult 

with legal counsel before fljrthcr 

proceaslng of the EIR. ConveR^ly. the 

investigating agent may believe that 

mlelgattng factors Justify a tlownwairl 

depoTBite Irom tlie Matrix range. 

Consulbtlan with le ^ couinsel Is not 

necoeskiy In the case of a iccommcnded 

poialiy tfiat is less than that pto^ded 

In the Matrix. In eldier sltuauaa. 

however, the ^en t Is to pitovtde a 

detailed explanation of the baels for the 

decision to go outside ti e Anges. 

4. Violatians ofPatt 17S tegulatiDns, 

which establish particular requLnsnents 

for air caotera and other Ainsalt 

oper^Uxs. ore contained In a separate 

monix. Howevo-, such opoalors often 

olferHazmai for air trarsponatlon as 

well as accept amd transport IL As strch. 

the operator m^y be liable for violailons 

as a busine s entity wlcfun Ae main 

Matrix as well as for thcspetJlIc Pa t 

175 violations. 

ID. Impact of Odaer Statuteiy Factors 

The Federal hazardoua material 

transportation law also requires 

consideration of a 'violator's ablll^ to 

pay a civil penalty, the impecr of the 

civil penalty on the violator's ability to 

S20/i00l) SWQ VVd 31?L9eet20Z XVd tO.LL 0L02/GI/0 1 
ltJ/13/201 0 12:5 3 42522711307 ANM7 PAGE 88/2 5 

f Federal Reglster/Vol. 64. No. 76/Wednesday. April ZI, I999/Rule» and Reculations 1944 7 

continue to do Ixislness, and other 

^natters that justice requires. 

Conalda^iien of these faclots may 

result in adfuabiKnt of the 

TcconuBended ctvil penaify calculated 

in Section n. In sitiiatiidns where the 

agent or attone^ Is In possession of 

irUClgaElng infoimutlon. such as inability 

tn pay the recommended cdvilpenaify or 

corrective acdon taken, reduction of the 

recomnoetided penalty may bo 

appropriate. Miiigatlrg Infonnatlon 

should be iMlIlclently reliable. 

unconDovuted end documented in 

order to support reduction of the 

leuwnmcnded dvU penalfy prior m 

issub« the Notice of nrt>po5ed Civil 

Penalfy. 

1. The bivesd^dng i^enc wQl attempt 

to indtide financial Infbtmallon as an 

<9chiblt In the OR. It is antJclpattti tltat 

this Information, if available, will be 

obtained from reliable financial tlata 

bases. Financial documentation should 

include. l>ut need notbelimited to, 

Infianttatlan concerning the violator's 

corporate smKture. biulness address, 

officers, number of anployees. and 

gross rsvcAue&. 

2. The Investigating agent provides a 

statement or comment with rejec t to 

the QnarKial Infbrmadm obtameJ but 

ordinarily does not evaluate the 

financial «9>ridltion of a respoivfait with 

respect to to ability to pay a proposed 

civil penalty. The investigating agent's 

A. Ai^iiar TO i^^Continu. In Rusl,«ss iSTS f ^S^^? ^ " ^ 

Historically. tt)c FAA has considered reveiHics. arxl nature of^usuiess of the 

di» e factms after the Issuance of the 

Notlea) of Proposed ClvU Pcralty due [o 

the abserxe of rcliablft financial 

informatloo on which to base a 

. reduction pl w va the issuance of a 

Nodce. TTdi Sanction Guidance 

i«c0niinends thaE the special agort make 

efibrts to obtain reliable InfionnaUoo. 

TCfpirdlng the violator's size and 

financial ctndldan for review prior to 

tlK Issuance of a Notice. This 

Infbrmatlonwfll be ttansmitvri to th e 

- legal office for caisidefailon. It is 

reco^pilsed that it may ixn atwaya be 

possible fbr the spcdat agent and/or 

attorney to abtaliiLceUable financial 

Informadee on a pertlrnilar respondent, 

that ilnandal clrciBi»tance£ change and 

that InfbrmadoD na y be provided after 

the issuan<z of th'e Notice that may' 

wairant furtfter cceislderadon of a 

respcndent's ability to pay. 

violator. 

3. PAA lliewal cowisel reviews the 

Unnidal Inftmiation provided In the 

EIR and ei'^uales Its Mfllcfency and 

rKlevance la the teeommended chil 

penalty, Li>gal counsel may determine If 

luont cimtint InfoimatlDn Ddscs 

eoncemfiig the financial condtdon of a 

respondent and if that Infooiutloi 

subseautlaltly dlOiers firem the 

Informatian avaOsblle at the time of 

gi^>aration of the £IR, U" these Is a basis 

>rdetaiiillnii>g that the receanmendsd 

sanction Is inappropriate based iqmn 

the financial Intbrmation provided in 

the EIR thiE recommended sanction la 

a(l)tisted pilar to issuance of the Notice 

-of Proposeil CivU Penalty. This Is a 

ptelinilnat]^ oonsldesatlon of a 

company's ability to pay. As such, preNotice sdjuistment of a recomeunded 

dvtl penally docs not preclude ftxthoMA1TIIX AND DcnNTTIOfis 

[RgwB M 

consideration of«respondent's 

financial claims after Issuance of die 

Notice. 

4. Ifle ^ counsel determines that a. 

resptxidem quallflta as a small business 

entity, ootmsel liaay consider that status 

under the Small Business Regulatory 

Enforcement Fairness Act (SBREFA) 

with respect to the appiopriateness of 

the recommended civil penalfy. A 

respondenfta status as a siikall business 

entity may be cdnsldered in conjuuictlon 

with analysts of the staiutoiy faaots. 

S. CorncOva Action 

The most common "other utaner" that 

the PAA taltea Into considcndon Is 

con ecu ve action. Corrective acdon iJiat 

results in raltleitioh is remedial actlnn 

that mcceeds the mimniiun legal 

rec|uirEnKnC9. The primary factors in 

dfttemlnlng the appropriate amount of 

penalty reduction are tfie extmt and 

timing of the coirectlvB action. In other 

words, mlifgatton is detemUncd on the 

basis of bow much corrective action Was 

taken and how quidcly die action wa s 

taken. Systanklc dunge intended,tp 

prevent future violnaons should be 

given greater consldetMlOiL Similarly. 

uunecUve actton that commeixxs upon 

the vtolator's first nodce ot the violation 

onJlnanly ts gh«n greater atedlt than 

oonectlva action that conmienccs only 

after Ihe Notice of Proposed Civil 

Penalfy has been Issued. 

Mitlgiitian of a recommended cMI 

poialnr based upon cmectlve action 

should be,re£erenced in the Nodce of 

Proposed ClvU Penalty so tluB the 

respondent is on notice that tsedlt 

aljeatly has been given for said action. 

ORei\So catepoAss 

I. Declared SNpmcn: 

1. SHppIv Papen. 

2. tabela> :_, 

3L lAuktv* ' 

4, PajdaflhiB 

8. Talfini .....^ .—. 

9, Emer^ Raspofwe -.-. _ . 

7, Reioase k>io BMron 

O. 0*Br. 

A. indMou^ 

II. Lfndeola'e^ Shipment WKNn Hoimat Quantny UmJatoi^s: 

1. SUpfleg Papers 

?_ label* — 

3 . Marldno* « 

4. PdLhuplris ——._„. ..„. ___,.., ,—. 

5. Tiabimo —- . - ~ : 

8. Qitmf Response— _ 

7. Helaaja Mo Environ -... „ 

8. Olier. _, , 

250-500 

260-6DD 

2S0-W0 

250-GOO 

250-eaio 

2SO-1J000 

250-1,000 

250-1,000 

2SO-1.000 

"zea^ficit' 

250-1,1)00 

250-1,000 

B. eushesa en % 

250-1,000 

250-1.000 

250-1,000 

2SO-1JJ0O 

250-1,000 

250-1.000 

2SO-1,00O 

25O'1,000 

1,500-7,500 

1,SOO-7J500 

1,500-7,500 

1,580-7.500 

1,580-7500 

l.SoO-7,500 

1,500-7,500 

1,500-7.500 

C. OuMnesa enSiy 

maluBM orlWK 

dleaHazrralb) 

ma ooiwsB or busti>ess 

S0O-2.0QO 

500-e.ooo 

500-2,000 

500-2,000 

50O-£M)0D 

500-2,000 

50CM2,000 

500-2.000 

2,500-10,000 

2,500-10.000 

2,500-10.000 

2,600-10,000 

2,500-10.000 

2,soo-io.on> 

2,500-10.000 

2.S0O-1O.00O 

fi. Business entity 

ttuiredulaily otfers, nocepu, or 

orb fiaznal 

ipOD-S,000 

1,000^,000 

1.D0»-5jOD0 

f.000-6,000 

1,000-5.000 

1.DQO-6.000 

1,000-6,000 

i/)oo-s;.aao 

5.mo-iz.ooo 

5,000-12,000 

5,000-12,000 

5.000-12,000 

5,000-12.000 

5.0a»-12,000 

5,000-12,000 

5,000-12,000 

520/800 ® SNQ VVd StigGGtSOS XVd tfO-LL OLOS/GL/OL 
lpi/13/2yi e 12:5 3 4252271007 &NM7 PAGE 09/2 5 

1944 8 Federal Register/Vol. 64. No, 76/Wednesday, AprU ZJ, 1099/RUJBS and Regulations 

MxTwx AND DEFINITIONS—Continued 

(BBuru 1] 

Oirer»e cotagortos A.IodlvMtial 0. otfsswss arflny 

C Busiraus eritiiy 

Ihat UMa or hanliles Ha/nufl bi 

the ooun« of busrness 

D. Bushess enlily 

that reflulHily o1-

fna, icoeite, or 

Hanspom Hicniat 

III. undedarat Shi(*noni Hazmal Forbkldon on^ or ewoodi 

qty Umlts lor, Possenser AbcnA: 

1, Shipping Pot>«» —,—^— . 

2, LoiMih: _„•. .^^— 

3, Marksioa —_.._...-.i.—<——.-.— 

,,<^ Pada^ng — - — 

S. TiaMig . „.... 

e. enaig . ffeaponso 

7. Brteeeo kio Emriren.,.-_ 

B. OlhOr_ „.„,_ _- . 

(V. tit^edand ShIpmerU Fixblddort en, or 

(tor. Al Airaaft 

1. SN|pi*iB Papers , ,— 

2. 

oiy titnit! 

3. ruatUnfp _. 

H. Pac*«glnB 

5. Tralnhff 

& Cmors. Reqxnee .—„ 

7, RdPBM Into Environ ,.. 

a, Oihtx 

V. IntBnOoral er Detberaiie VtotoBon— 

500-5,000 

500-5,000 

SOO-6.000 

SOO-S,000 

500-5,000 

500-0.000 

600-5^000 

500-27,5DD 

500-27,500 

500-^27,500 

600-Z7.500 

"sSKZ7,fiMr 

600-27,500 

500-07,800 

Consun l^gal 

5^000-15.000 

sLOOo-is,oao 

5,DOO-1S,000 

5.000-15,000 

5.000-15,000 

5^000-15,000 

s,veo-t5fim 

S.00D-1S,OQO 

7,500-27,600 

-7,soo-zr.soo 

7,600-27,500 

7,500-27.500 

7,500-27,500 

7,SDO-27.S00 

7310-27,600 

7«0-«7.H0O 

OonaiJl Lagat 

7,500-20,000 

7,500-20/100 

7,500-20,000 

7,500-201,000 

rsoaSOflOO 

7,600-20,000 

r.G00-«O.00D 

7£00-2D,000 

10^000-Z7,]500 

10.000-27 J6D0 

iaoo»-e7,soo 

1D^IID0-27,SOp 

10^000-27,600 

10,0(0-^7,600 

taoDo-27,6oa 

10,0DD-Z7J60O 

OvBuK Legal 

10,000-2^,500 

10.000-27,500 

10j00O-27,5aO 

10.000-27,600 

10,000-27,600 

lO/XX>-27.50a 

10,000-27.500 

10.000-27,500 

15.000-27.500 

15,000-27,500 

15,000-27,^00 

15,000-27,500 

15,000-27.500 

15,000-27.500 

IS.OOO-'^JSOO 

15,000-2^.500 

ConsiALosal 

Air <aui(er and oli>ar abcxan epaiBtor vIoMorw 

E. Gro^p i « n air 

canlareand oDier 

aJieralt opoialuij 

F. Qroup Ml £ IV 

alreaniBia ertd 

e*>or miaaA opop. 

otocs 

• FaBwn to compty with Parte 171,172. or 173 requkemenb «t V« HMR aa art efiworaf Hamal.-. 

tmpioper aceaptanua v4 Haseat for air Innspcitaaan t^.. quanUiy, labellna, mafUrtt. podBadniL onta 

dififlPO papers) Soo 40 CFR 175.«)M m-< ^ ^ 

Falure ID Inapacl Hazma) aH^moil pfp^rty. See 40 CFR 17S.3D (b), (l4. (d). M . 

impreper snageftecurtnv of HBzmat aboard alrcran., _^.., , _.. , 

FalKjre lo prtrWde Hsamat tralnlns, iraiHbin records i^ tnilninp, or meat rnlnimum re<|i*aniani* f ^ 

HazmM •*»» # —_ _ . - _ ^- _— i -,.„».., 

PaSuie »• noUf FAA prepady <d fcaidenWfcMepareJea in Hiizmet ahf^ntisil ; _ 

Palltlre a» prevWe «lalka» tt» Ihe pBrt-feKomr^nXl 

other Fan 176 'vioiaOana..-,. _ ,,___„.__—..„„...__...... ,._ ..__... 

r> 

5.000-^7.600 

IOtOOO-27,500 

10,000-27,500 

10,000-27,500 

5,aoo-ie.ooo 

5,000-16.000 

5.00O-16.D0O 

2.500-15,000 

5.DDP-1S^009 

5,000-15,000 

$,000-15,000 

1,000-6.000 

1.000-5,000 

1,00O-£pOO 

'• Ute (TMln MalrlK. 

JMBnlHona 

• (ajAlr Carrier an<^ Cthe r AJraa A 

Opcratc r Croups (C U. tU, fV^Mr 

camer a and ethor aircraft operettas at e 

divide d into two CBlegorles for purposes 

of demmlnln g a n appropriat e sarjction. 

Tliese categpales bad e the air carrier 

group s established In FAA Order No . 

21S0.3A. AppencUx I, Compliance / 

Enforcement BulJ,etln 9^1 , bu t ab a 

InrJude s any operator of a n alrcralt that 

Is opoate d "In commerce " as defined in 

t h e Fbderal hazardous ntaterlals law, 

indudlnglV t 12,9Foreign Air Carriers. 

Pat t 126 Opentors. an d Part9 l 

Operators. Croup I Is cnmfnisedof air 

carriers and other aircraft operators 'w^th 

iTknxial operating irevenue of 

; 100,000.000 or moie . Croup II is 

comprised of air carriers and other 

airaaft operators that hold Part 121 

certificates at have 5 0 or mor e pilots or 

operat e 2S or mor e alrcralL wlUi annua l 

operating revenu e of less tha n 

Sl0D.00dlK10. Crou p i n la comprised of 

•ir caBleis and othtf aircraft operators 

that d o not mee t the criteria fbr Croup 

n wit h (1) 6 to 4 9 pilots, or (2) 6 to 24 

alimf t Gntup IV is comprised rfaH 

ether air taitricrs or alrccaft operators 

rxx nteetbig; th e criteria fbr (>oups I. n . 

orlD. 

(b) AifXmus iDxfcy—The vlolaiDr is a 

busbiess. corpoiatlDn, partnership. SubS Coipotalion. sole proprietor, 

assodadon . or •am fype of commercial 

entify. An Uldividual vtrho oflcrs a 

ha2m.1t shipmen t i n air transportation in 

the course of his/he r self-owned 

business faUls into tills categoiy. 

Includes all entitles denne d under the 

HMR's d^tiiliio n of '"person," (49 CFR 

171.8) wit h the exception of an 

Iiklivlilual a:s defined herein. 

(c) Busine^a Snat y tha t Feguiarly 

Oifin. Acettpts. o r TVanfpons 

Haxvxioija AfateifaJs i n th e Coiirse of its 

Business.—A ttianufacturer or 

distributor of Hxma t falls Into tlUs 

catKory . A &«lghl forwaadcr would also 

fall into this catepiy . Th e aspect of 

. "regularly" offering covers a business 

cnd ^ tha t vffa s Mazma t with some 

antlcipaited &ei|u«ncy o r purports to d o 

so. e.^ , a catalogue compan y that vBk n 

hnardou s tnatetlal t o its castDmers' 

-would foil Into this category, even 

though lis acttial sale or traisportado n 

of the Hazma t Is Infrequent or limited. 

(d) Busdit^sv Entit y tha t Vf«s. fforidles 

ttazjiiot In th e OotL^c of Its Business— 

This categoay encompasse s the business 

that utilize s Hazraat In its bislness but 

doe s no r ofier it fbr traruportatlon D » a 

regular basis, a s describe d above. For 

example , a manufacture r of a noni-Uanet produc e tha t use s Hatmot in th e 

marrufacuiring process could &11 Into 

this* category. It mxBt b e established that 

SSO/GOOl swa VVd StLSGGtSOS XVd S0:L L OLOS/GL/OL 
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Federal tte^sta/VoL 64. Na 76/Wednesday, April 21, 1999/Roles and Regulations 19449 

the company ordinarily doei nui offer 

he HaatMtlt utilizes for tfansportatlon. 

dnd the shipment In this Instance 

leprcsenb m Isolated inddcnL Tills 

type of iKBhess Is held to a higher 

standsrd than the btolness endfy that 

has no regular involvement with 

Ha2tnat. The described bioiness entity 

receives the subject hassAdous materlBl 

' In transporbtion and uses It In lis 

buslnss; thus, it is dearb^ on iwtlce of 

the haxanlais natute of the matartal and 

the r^ulatny na^ulremeniB to which 

the fbEinatb stree t 

(e) Vedend Shipmao—A declared 

shipment, fbr p^sposea td this rtkatrix 

onfy. ts one that CMttplies wldi one or 

more oCthecorTeniffllcatlve 

requirements of the HMR, Le.. K has 

martdngs, labels, and/tor paniallyi 

cDirect sfilpping papers. A package that 

has shlppbs papers that declae the 

•aontents as haxairdous matCTla] but is 

Otherwise lat marked or labeled l&Us 

into this category. SlmUorly, a properiy 

marfced and labeled package that lacks 

shipping papers abo falls Into tfab 

catef oiy- A case iaUs into this caiegoiy 

where there b clear Indlcatltm that ,the 

oflieror made some attempt to give 

notice of the hazardous natims of the 

-shipment. 

,-' (0 FoititUen ot Sxcerds Quantify 

limits for Passtngtr AAtaaftA 

shipment falls Into this caugg/ity If the 

quandcy of Hazmot perpaclogc ekoeetb 

the <|mnHQr llmftadons for passengercarrying <klrcnfk or If the particular 

hazaidous material b ietoklden In alr 

transportidon on passenger aircraft. 

circumvent those requlxemenb. For 

example, an ofleror wfx> pbces a 

propivly marked and labeled Hazmat 

shipment along -with properly 

completed shipping papcis, into an 

overpack marked as 'pilnted material," 

(g^ Fctbtddai an or fiiceedis Qtmntrty has committed an Intentional or 

liOiftt he- An AlmaAA shipment will 

fall Into fllib categoiy If the quantity of 

hazardous material per pacluige eicceds 

the alkiwible amount for both passenger 

and cargo alroalt or the Ftazmat b 

absohitebr fbtblddcn In air 

trampoitiidian. 

04 Jbzmat--A "hazardous materia]," 

as defined in 49 CFR 171.S, includes 

and b Inbarhangeable with the tenn 

"daiipaota goods," «s tsedln tlte 

InttitnUonol ClvU Avlatlim 

Orpnlzatlon OCAO) Tedsdeal 

InstfvicUoris. 

(1) /nd^id;IlB{—An individual who 

oOos a shipment of heaautlous inaterlal 

in his/ho- personal capacity without atiy 

business purpose or as pan of a 

coramercfal uiterprfse «n the part of tlM 

IruUvldualL 

. (0 fatenaonal or Doinerace 

VIobthHi—A shipment £db Into ttib ' 

category when there Is cnddenoB dut the 

oStiDr. ao»tor, air cants, or aOcrsfl 

upcratoi tiatl liTwywledgc ofihe 

requiranents of the HMR and wHlflilly 

circumvented or attempted to 

RISK CAlEQORIES 

IRgurv 21 

delibeaalB vloIaUon. In thb t)ipe of case, 

the Irtvesd^titm agent shall oonsulr 

with FAA legal counsel and follow 

agoi^ gutiiaince for potential criminal 

violations of the HMR. 

(M Uidiecbred STifpmenf—Thb is a 

shipment that has no Indication of its 

haardoiu material contents and/or no 

tndicatloa that the offeior 

commtmlcabed (he hazardous natine: cf 

the shipment's contents to ptssom who 

accept or transport. 

0) mtliin Haamat Qumtity 

Iin(tariai»—The amourtt tt hazardous 

material Is within the quantity 

limitations per padcage as cstablbhed In 

die S172JOl TaUe (49 CFR 172.101) for 

the qrpe of afroaft on which die 

shipment traveled.:Por example, if the 

afilpment was offered for transponatlon 

on 4 passoiger alroaft, the qOantlty of 

hazardmis naterlal-was Dritnln Ihe 

established limn for iratQporiatlon by 

passenger alrerafi. H the shipotent was 

offered ftv tiansporotlonon a caa^o 

alraalk. the ({uantlty llmltatlotBliDr 

cargo aircraft apply. 

cartefligry "A" (Uaahnun Welightt 

Calepory *A' moteilala am matariab ff«l w*»n rataaeod bi iha Aufbee ef an aboafl cart potenSaDy how a caBseephie cflect on M BITOBn'a abiity to conttwe safe ffighl, tasiMng h a crash or tirmigancy fnwMna cauefcig InMy or doatfk lo passengers and flls^lavrr. as weR as 

persons on A« omundL 

Eaptoslwuc DWston 1.1,1.2. I.a 

Conpressad Gaaaa Al 2.1, ZZ wtti GuMUlaiy Riaic Stl ivut AS 2.3 PIH zones A-D. 

FtannwMe Uyikb PG I. II, wid (PM . 

DMalon A l FlaiMnabIa SdKk PG I. & (biaicites). 

DMs)or» * a fiponianeeiav Cunbtfslftint IMoilate PO I (Pytophodc). 

nvHon 4 J Dangerous When Wat PO L 

DhMon SL1 OgdUfeclnli UcpjUsand SDlIib PS I. M, e.g.. -Ctantaa Cbcypm amerabm". 

tMsion 5.2 OtflWiie Peroifdea PQII (Type A B, C, or D). 

DhMen 9.1 Pobenots LitMda PQ I (PIH). 

C«tie Alrciall OrWr Ouonilf as on PaaseriDar AlroaA. 

Oonoslw* MaieiU Uaitf PG I land (PIH). 

FoMdifen UalBrbUa (See 49 CFft 17321 & (CMOTachniaU tnalrucPons}. 

Forbidden Hasenal Ksled In Dangemus Goeda TbMa 40 CFR 173.101. 

CaHflerr ' V piaJemla Welphi) 

isass 1 

Ctaas 2 

ClaB 3 

Cloia 4 „... 

Class 5 -. 

daasB ... 

Class? _ 

Ctass B ... 

I h a maiaiials Ishsd b Calaijory "d * are maleifals Hal may noi peso an ^mcdiaia firaai to Dte safety of a Msht b u can tai ^ dealt or trv 

|uiy b persons iba lo unMnndad rolsasss kt abaat eabtrt imas, and poienffal danmsa to akcrafl sinjcluiw v* a a lon ^ period ol inw dua 

lo urxfcooveied releases on ofecfaft simehind oomponents. 

Cbas 1 OMslon 1A 1.5,. 1.0, Al CorrxMiVbMtf Qroups. 

Claas 3 PG HI Fbmmafala UqiMa. 

Ctaes 4 — DMslon 4.1 Ranmable SoMs F>G 11. iH. 

J DMsioA 4 2 Spontbneoinly daribuslMo MaiartaK PQ iH. 

OMalon 4.S Danganwp When Wet PQ •, III. 

OBSS 5 ... VMOt^n 5.1 OKMM Q Liquidc or SoHda PQ IIL 

Orvlalof) 5 2 Organic PeroiMBa (IVpo €, F, G). 

Ctass e DMslon B.1 Pelsenous UqiMc FtS I, II <NON-PIH). 

DMslon 62 Infedous Siiistaneos. 

S30/0L0ia SNQ VVd StLSGGtSOS XVd 90:L L 0L03/GL/0L 
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€ 19450 Federal Reg?ster/Vol. B4. No. YS/Wednesday, April 21, 1999/Rules and Regulations 

RISSK CATEGORIES—Continued 

(HuuieZ) 

Class? _ 

OassB .. 

nadoadfra MalcrtaJdL yabne hbnl HI. yalhw label H, and whtta lalwl L 

Uqukb PO II, Ul StUds PCI 1. ii. n. 

Caiiegory 'x r (Unlmum WMghi) 

Tho iDateiials Isted In Catogoiy " C are mateHato Viaipiesent the least anwiailof itsfc l» lie transporuHon system. 

Ciasa 2 .....-„„...., 

Class 8 

Class 7 — — 

Class O 

Z.2 NonSamiralib GD . 

DMtlon 8,1 PoeUng Qnu^ Nil 

Al QSET RA M OLSA, LTD Onr. Irhniwienia and ArDdas). 

Mlaceteneous Dhngenaue Boods (ORM-0 and Consumer OorrtmodtiF). 

Ne» ; IN r guidance I» nal bitonded lo le^ace Bio a:iparier)oed Judomam K» a apodal aaant «ho b vunvnmi, based or ifko widDiicn and 

racb ol a case, thai 9to wiure of an air catttor. cMppor, frejgM Pwwaithir. or passanger to ioUoiv eslaMUted reguiaaorts has posed a risk to 

avfaDon saioly. 

Issued In Watthlofton, PC on April 14, 

1999. 

lan e F. C*«eyi, 

A doiri^SiiBfDi^ 

[FR ElDc. S9-99&3 Filed 4-20-99; 8:45 am] 

aajjNa COPK «i»-ia.4i 

^ECURTTIES AND EXCHANGE 

COMHHSSIOM 

17 CFR Parts SDZ, 240^ 242 and 249 L Batitgrvund 

Rm nmracR MFOimA-noN COMTACT; 

Elizabeth King. Scsnlor Special Coiauel, 

at (202) 942.4140, ConalancB Klgglns. 

Spedtal CounseL at (202) 942-0059, and 

KevinEhrlldi, AUamey. at C202) M2 -

077B, DUvlslon of Market Regidaitan, 

Socuritls and Bxchange Commission, 

450 Fifth Street, N.W., Wasldngton, D. a 

20&49-1001. 

sunpuNENTADY wonuAim : 

{RBlasae Ka 34-41Srt FHa Ha. S7-12-aq 

. Regutatlon of AHemaUvo TlvtflnB 

Syetenw; Technical AmenAnent 

AeENCV: Securities and Exchange 

Cominlsslon. 

AirnoM: Pinal rule; technlol amendment 

and revised compliance tbte. 

SUMIUftf; The Securities and Bxthange 

Commission b nodlQing the 

compUanO] dates for I^ule 301 (|b)(3) and 

makinig a techrJcal change lo Rule 

202,3. These and oUio- rules and rule 

amendments relate to the regulation of 

alternative trading ajistems and 

cxchar^es and -w^m published on 

December 22.1998 (63 FR 70B44}. TTie 

effective dsrie for the other rules arxl 

amendments published In 63 FR 70844 

terrains April 21,1999. eaccept fbr the 

effective date for 5S242.30I (b)^(l)(D) 

and (Q andSS2'4Z-3OI(b)(6)C0(D} and 

(E). -which remains April 1,2000. 

DATES: EfTcctive Pate: April Zl. 1999 for 

amendment to S 202,3. 

Cbmrp^fance Date: Altematlvo trading 

systems must ctwnply wlih 

SZ42.301 (b)(^ -with respect to the 50 

securltiEs listed in Schedule A by 

August 23.1999: with respect to the 

securities listed on Schedules A and B 

ay September 2E. 1999; with respect to 

the secutltbs listed on Schedules A, B 

and C by April 25.20D0: and w^th 

respect to all securities by June 20, 

2000. 

On December 8,1998. the Secirides 

artd Ezdiange Commission 

C'Conimlssion") adopted rtew rules and 

rule amendiaenes to allow alfiemaUve 

trading systems to cliOose whether u> 

roBbter ;is natioml securities exchaeiges, 

or m regltster as bfbVer<kalefs and 

comply iwtih addideeal rettuiranenb 

tuider RiiguladonATS, depending on 

their activities v d mdlrig vohmMt* The 

effecttvB date for mostof these t)ew 

rules and rule unendmenta b April 21, 

I9Dg. The Commiaslon stated in die 

adoptlr^, release that, prior to April 21. 

1999. It ^vould publish a list of those 

tecurltiias with impect to which 

^Jtemaiti'e tt»dlre^/9tana naur comply 

with Ruli! 30|(b)S on April 21,1&98 

and the^: occur^tles widi respect lo 

which ataimatlve trailirtg Msteiw must 

comply with Rule 301M 0) on August 

30,1999. Rule 301(b) (^ lequlrcsan 

aUeniatlve trading sjistem to pnMde to 

a national securities eaKhonge or 

nadona] lecuriiles assoclatloa fbr 

tndtislon In the public quotadon 

system, tlie prices and sizes t>f Iti best 

priced buy and aall cwden. that we 

dispbyadi to-more than one powm, in 

each covered sectri ^ in which the 

altomatlvie trading system r^iresents 

5% or mare of the ti>tal tnding volume,' 

> SMwia«ettaiqeAaRe)ajeN«. (»7>0 

|P«c. I. am , ai«T0M4(DK JZ. 1991). 

* IT CFK 2<I2JDI(H(39. For ptapeos itf 

|tr{uliU»r»AT5.''^coii«Rdieair|pr"lrriiidc»all 

udiamC'lliitd, Masihq KM sKvtiUet, wiil Nndaq 

Small Cap mairiUex. oUur OiBi ddk and 

CMr*enMvii!CWIOa. Sirllule llAcl-l|i)(e), IT 

IL DdoLy ef ihe ComiillancB Dates Gbr 

Rule 3Dl(b}Q) 

One nu}or alternative trading system 

has irvUated that it VriU be enable to 

comply with the requirements of Rule 

30l6)C3) by the original compUana 

tiates withmn putting the operation of 

its qme m at serious ib k of failure. Th e 

opetatiimal bilure of o major ahematlve 

Hading ^stem could Interfere -with the 

markets as a whole. Accordingly, the 

Conmibslon believes It necessary to 

sd|ust the conmllance dates fior Rtde 

301(b)(3]asfonow3: 

August 23.1999: CompUant»-with 

Ruhi 301 (b)(3) V4 til le^Kct to the 50 

Nasda«| securities Bsted on Schedule A, 

attached In the ^pendlx. 

September 28,1999; CtmipUance -with 

Rule 301 (b)(3) fir Ae 50% of Nasdaq 

securities listed on Schedules A and fi, 

attached in the appendix 

April 25, ZQOQt Complianoe with Rule 

301 (b) O) for the 75% of Nasdaq 

secavlties Usted on Schedules A B, and 

C. anaehed In the appendbc 

Jtme 20,200ft Compliance with Rule 

-301(b)(3) for all Nasdaq securiticsu 

Schedules A BL and C wo e created 

by rankiiig all ctrvered securities traded 

on Nasdaq fey their January 1909 

volume,, and iiid.udlng an equal mimber 

of securities lh>m each decile. Some 

securities that were not traded on 

Nasdaq In Jamiaty 1998 may corametrce 

trading on l^tasdaq subsequently. 

Alternative trading systems may wait 

until June 20,2000 to comply with Rule 

30t(b)C3) with respect to these 

sectiritles. 

All other compliance dales for the 

niles and rule arrtendmenB adopted last 

December rcmaifk ilie same. The 

Cemmlsslon encourages those 

alieniaUvt nailing systems that are able 

m comply with Rule 301 (b)(3) on April 

21,1999 to do so. 

CFS £40.1 IAcl-1 W(ei: Riila SlKKg). IT CPR 

S30/LL0ia swo VVd StLSGGtZOS XVd SOIL OLOS/GL/OL 
10/13/2010 12:53 4252271007 ANM7 PAGE 12/2S 

Federa l Registcr/Vol. 63, No. 107/Thursday , Ama 4, ]995/Rol.es and Regulation.^ 304U. 

rhe criteria for a signiTicanr reguJstory 

feicuon ur-i(-,l'ir Executive Order 12866, 

Thus, '[r -w?s not suJjJeci tci OM13 review, 

ReguJ.yiniy Plexiblhty Art 

We c.o.n.\fy that rhj.3 rrguladon •W'-i!) nor 

havE 0 .significant economic impact on 

<i siibstanrlat number of small entities. 

Therefore, a regulatory flexibility 

analyses as provided in rhe Regulatory 

Flexibility Aci, as amcnd<9d. is not 

re.civired. 

Paperivoik Rt^duction Aar 

J•hi^ icgulacion -imposes no reporting/ 

recordkecjjui^ requirements 

necessitating clearance by 0MB, 

(Ciii.iloiij of Federal Domestic Assisrancc 

Program Nos. SS.OOJ. SocicJ Se.curicyDisabtllty Insurance; 96.0DZ. SocialSecurily 

Retirt-menc Insurance: 96.004. Social 

Security-Survivors Insurance; 9B.006, 

.Supplornuncal Securl-iy Income) 

List of Subjects in aO CFR Pa n 404 

AdmiriifU^tive practice and 

procedure, DIin.d. Pi^abilicy heneflTs, 

OJ.d-Age. Survivors arxl Dl.sabjllry 

JniLiranre, Keporrlnganrf recordkeeping 

r<;qijiremenr5. -Socia] securiL-y. 

D-ii:n<J; May 27. Ii99S. , 

' Kenneth S. Apfel. 

Commiifioner ofSocinl SccwlJy. 

Fnr the reasons set forth Jn the 

preamble, port 404, siibpart P. chapter 

III pf title 20 of the Cotle of Feders 

Regulations j$ amended a,^ si»t forth 

tielow. 

J2. NeuroJufiiCiil fi l.OOsind l i l,O0):Jiily ) 

1999. 

IS, rnwiune Sy.-ii'em (HOO and m OO); 

July 1. 1999. 

* * • + * 

rPR Dw. 9;3-H59Q Filo<i 6-

BILUNG CODE 4l.ilO-2S~P 

DEPARTWENT OF TRANSPORTATION 

Research and Special Programs 

Administration 

49 174.  CFR Parrs 107, 171, 172,173. 

175,176,177 

[Notice No. 9B-6J 

Hazardous Materials: Formal 

Interpretation of Regulations 

AGENCY: Rwesrch and Special Programs 

AdmjnlsrraUon (RSf'A). DOT. 

ACTION: Forrnal interpretation pf 

regulations, 

PART 404—FEDER^VL OLD-AGE, 

SURVIVORS AND DISABILITY 

INSURANCE (1950—) 

Subpart P—[Amended] 

I. The aurtiority citation for subpart P 

of part 404 continues to read a.-; loWov/s: 

Awthority; Socs. 202, 205(n), (bj, and fd)-. 

(li), 2iii(i), 22l(ei) and (1), 222(d. 22.\ 225. 

and 702(a)(5) nftho Sorla! Seenrii.y Act (42 

US.C. 102, iQSCa). (b). and (*-(h), 4lf5(i). 

0?l(a) arid (i), 422(c), 423. 425. pjid 

902fa)(S));sec. ,:>Il(b), Pub. L, 104-193. 110 

Stal. 2705, 2)i*<>. 

2. Apjjendix 1 to subpon, P of part 404 

!,•; aniundeci by rovfsing itenns 1.3, 11, 

12, and ,1.1; o/ti-ie tntroductory text 

befure Part A fo read as follovys: 

Appendix 1 (o Subpart P—LisHnj^ of 

Tinpairmertts 

* , r t •»' " ; 

I. Grot-v^Si Impairrriem (1 00.00); July I, 

1999. ' 

T ,1 T » • 

3. Special Senses and Speech (2.00 and 

J 02.00); July 1.1990. 

,*••! • + XI 

II, MiiUipjo. Body Sy^ie-ri.'i 0 10,00): luiv ) 

suuHARY: This document publishe.'? a 

formal interpretatioii of the I-Iazardous 

Materials Rpigulatlons (HMR) concerning 

the re5ponsiW.ULies of a carrier when 

accepdng hazardous rnaff:rials for 

intnspoi-tBtlon in commerce. This 

interpretation is being publishcc' m 

order to facilitate better public 

undarscamUngand awareness of the 

HMR. 

EFFEcnVE DATE: ,fune 4, 1998. 

FOR FURTHER INFORMATION COhO-ACT; 

FrHzer C, Hlkier, Office of the ChLef 

Counsel, Research and Special Programs 

Administration, U.S. Departmant oiF 

Transportation, 400 Seventh Street, 5W, 

Washington, DC 20590-00001; 

telcphon? 202-366-4400, 

SUPPL6MENTARY INFORMATION: A,S part of 

its imple,menration of tht! Federal 

hazardous materiB,! transportation law. 

49 U.S.C. 5101 *t.«;?.. RSPA issues the 

Hazardou.i Marcrtals Regulations 

(HMR), 49 CFR parts 171-180. From 

rime to time, RSPA's Chief Counsel 

issues iormal interpretations of the 

H^fR, l.'he.'ie Interpretations generally 

involve muIri,iiioriBl issues and are 

coordinated with the other DOT 

agencies wJijch, together with R5PA, 

enforce tne HMR; I'edera] Aviation 

Administration, Federal Higliway 

Adminisaarion. Federal Railroad 

Administraclon, and United .States Coast 

Guard. Thi,s document publishes a Chief 

Counsel's intwpretation concerning the 

responsibilities of a carrier when 

accepting ha?-,a]"dous matftrials for 

transporrntion in conimcrcR. 1 his 

inrerprctation addr-pssRS i.ssue,>; raiyed in 

a I*iri:ei' by Mr. £.A. Alttimos, of HMT 

Associates, f^nd is consistent with an 

August J 9, 1997 written response ty Mr. 

Altemos by R.SI-'A's A'ssociatu 

AdTOJiiisTj-ator forHazardotis MareriaL"; 

Safety, 

In addSUon lo these inTrequenr formal 

3 .93: Sr45 Bm] Interpffcrations by RSPA s Chief 

Counsel, RSPA's Office of Hazardous 

. Materials Standards provides 

~ information and informal cl.arifle?,tion$ 

of the HMR on an ongoing bjisis, 

through (I) a telephonic information 

csnter (l-80()--167-4922) to an,?wef oral 

quejtioris and (2) informal written 

interpretations or clarlftcations in 

response to ivritten inquiries. RSPA's 

formal inCerpret.-icions and informal 

letter clarifications (and additional 

Information concerning the HMR) arc 

also available through the Hazmat 

Safety Homepage at "'http:// 

ha^mBt.dot,gov." In addition, sume of 

RSPA"? interpretations and 

clarifications may be reproduced or 

summarized in sclacted trade 

publieatinns. 

Fui'Cher information concerning the 

fivailaWlity of infon-nal. guidance and 

intcrprerarions of the HMR is scr forth 

in 49 CFR 107.14. RSPA believfts chat , 

publication of lt,s interpretations should 

promote a better understanding of the 

HMR and improve compliance with i:hf 

HMR, 

Issued in Wfijliington. DC, on M.IY 28. 

1998. 

JudlEhS.KalEiB, 

Oii6fCounsel. 

lint. No, 98-1) 

Background 

Mr. E,A, Alterrros, HMT As<;cicia««, 

requestetl clwrlfJcalion of requtromencs in die 

HMR concerning an fl,(r czurler's acraptancc 

ot packages containing har^rdous m«nsri,ils. 

This ingulry concerned only the corrier'.'^ 

rasponslbilitles relating lo hazardous 

matErials offered by anothpr pcrsoi-i, and noi 

a carrier's rransporration of Its nwn material?; 

yr products. fFor informailon on an r-ilr 

carrier's cran.ipijrLaiion of i's ovm ronipajiy 

mai,erials. or '"COMAT,' ,?•(?? "COMAT 

FACTS" In kSPA-sJ.onusry 1998 Safety 

Aim. available on thrr Haizmat Safety 

Homepngc.) 

Alrhoush Mr. Alccrnoss quesdon wa* 

pnsuclin the contexi of ajr trarjjpertstion, the 

HMR reqii/rements dl.v.-us5cd In RSPA's 

inmrptecation apply lo carrier; ty all modf 

of transportation. 

Inicrpr*taiinn 

Bssic requirrments in the HMR set forth in 

49 CFR 171.2(a) and (b), and applicable, to 

carri'--''^ Jn ali rnodas o^lrnnsportntion. are 

[hat no person may 

accept a hazardous material for 

tr^nspurlation in coriimercc unless ^ " ' the 

hazardous cTi->ierial l,s pmporly cLisSed, 

Clc3crlh(jd. (jackaged- marked, labeled, and In 

condirlwi fnr sl-iipmciil a.^ itauirpd or 

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:i0412 Federal R«gj.sier/Vol. 63, No. 107/Thursday, June 4, 1998/Ri.ilfe.s and Regulntion? 

uuthoi'i^ei'l liy iipplicaljlf i-cqi.ilrniiionL'; o! fihe 

HMKl . or an e.xoinpi Ion, npproval or 

rpgisrrfltkin issued under ftb« HMK) " "' ' 

tran.spon a K.vr.tirdrjii? m.\li;ri^l in cui-nnisrfe: 

unless ' ^ ' ihp, ha;:-!irdou:» ni.vcrial Is 

handled and xnirirpcn.erj i n a(:rord,?nce wjtl i 

appUtahlft requirements or Itb? HMR). or ar 

excmpTjon, apprav,il, or refii.<:t;i-arion i.^j-jL-d 

UTid-Ttr ftht HMR1 ' * ' 

A carrier's arccptvice and traajpon;ati«n 

of t-<.i!!;9rdou."; malerisls C-JJI mvalve aevcia? 

different silvittlorK, includini ; the foUo-w/ing 

ii^ y ends of T)ie spectrum; 

1. the shipmcr' 's dL-rlared b y the offirnr, 

i l l one manner or anether, to cwnMJn 

h-^zardous material.'! srnd cornplie.": (in-whole 

or i n part) ^it h rctjUlrfcinenLs In the I-CMR: or 

2, whechcrlnrentinnall y Or 

i.ininientionally. Ihe shipment i^i not declared 

by the offeror to conr.iin Jiaiiardouj materia!,•!!. 

and no ;«tt«Tipt h.is been made to coinpl y 

wit h die 1-IMP (til" "undfdftrtd'" or "hidden " 

.jhinrnenl). 

The Secrclary ofTransnortstiLij-i ha;; 

delifffatfld za apcncie,'! wiih;[:) the Deparcnicnr 

(FiiCieril Aviation Admlni.-irra'l'.iou. 7t<ivtm 

High'W.'sy Adrnlnisrr.njan, Fftdcral T<ailri-jad 

Adiliinl.Tri'aiion, United Srate.T Cua.^f C-iwi'd. 

.vid f'e.^eerch and SpeeiuJ I'j-ngram^ 

Adniini.=:rrati'.->n), d^i: authority i n -19 U.S.C. 

5133 rij assess .i civi l penrvlty l^gainsl a.ny 

person wli o ••kno>«'ing]y violpttfji" any 

requirement i n ths HM,R. incIudtnK rhe 

' provj.cions i n § J7],2 (a) ai->d (ti) (juor'cd 

abnvc, Ser.iion 5123(-d) provids."? that a pfcrson 

• aas knowljujly " •w'hrn 

(A) tlip person lias .ictual knowledge of the 

fnnts giving risa lo Lhe v/iolation; or 

(3) a reasonable person airing i n the 

c(reuni,sta(ice.<; and exercising rcB,<;onab]c CSTO 

wrjuld have that knowledge. 

Accordingly, a i-.arrier knowingl y violate* 

111'? HM R whcr» the carrier accept* of 

trnnspon.? a ha^.srdpiis ini"itcri.al wit h actual 

or conscriicTive knowledge tliHt a pacl<,ij5c 

crinWiin.'; ? hazardoui", i-ii»r(Miot wtilcl l hfl,5 nor. 

been pDck^jcd. rriarkeij, labclEd. -and 

described on •> shipping paper .i? requirmd by 

ctie MMR. This mesns rJiat A CBn'ier may nut 

Ignorp. rcadiJvaj>pi»'eni faces that indicare 

ihiit rillic r (]) * shipment declared to coni,ijIn 

a hfl;2ardcius mstterjal l i not propi'dy 

p.ickageri, iTisrksd, labolftd, placarded. Or 

d«;'!erlbed on a shipping paper, or (2) a 

shipment aclii.'jlly cortalns a ha^sj-d^Tua 

materia) fy'vF.rncJ )>y ili^i HM R despite iho 

fact lh'^1 i'l is not rnarKErt iaholsd, plaearrted. 

or dtiJrribcd nn a .'Jiitiplilf pspei' a.'; 

c-,9n[;iiniii): a liii.2rirdous mateiiii! 

'I'liE r^cparrn-jcnt's Oi-.tobrr A. 1377 

intcrpreU-tiicn eoDe^rn'^ng -19 CPR I75..'iO 

(reproduced lielo'v) relafes to Llin rir5t 

siruialion 'n (.^e slicve paragrapli, i.e., whe n 

iin sir L'drrler receiver a .'^hipmcnt 

?iccr)rripanif":i ^y " alil|.>p)ng paper ronwinin,|; 

;? siiippcf-s ccKirication Ihar hMjardmis 

materials wuhi n thosl-iiprnfinl have been 

elaSiftd. p/ickspcd, marked, labeled and 

•ICLuracely described a.s re^viirfid. .JCT '' S CP7? 

172.20^. Wlicfievei'. in t-'f course of 

examinine rlvj sh([5ping paper and 

pcrfomiinj j the rnquii'i-.d vi.<ii.ial Ijispeciiiwi of 

Mic pJK^lOty:, li i air carrier hes rea-<?r> " i Know 

oftH.^rrepaneic.-.. the; rrciri-iei infiy not.";linply 

rely en liie "ilUjjper's eertificatlnn 

hi liie r,3SL- ol ,!i.ri ijnd««f'lari?J or hidden 

^liipniLTii., all rdovunt farr.; miisr Ijn 

cr/iiiii<1«ie(.l ir> dET.Rrrninf'wIieihGT or nni a 

i'L'a,r.onablc person aciing in the 

eireuni'=rttncHS and exerL-ijing c5Uton.'»(jlecare 

woul d rcali7,e tJie pr«,?e/iee of ha^ardotis 

m.3l.eriflJs, in aii siifcjrctmeni: preec«i:<itig, ih)S 

i.? aK«ays a qutsdon oCf^ici, to be determined 

by die far.t-fimir.t. Recaiise InrurOerjt'lE fficr. 

pnuftfnj may exist, K i.<; n&r praecicatile to set 

forrh a list. oC ;:pGclfic criteria to jjnvcrii 

whKthcr or not the carrier has siifTiijicnl 

consrrurtjvc knowledge of ch« prc.>:anec of 

liaijjfCluus materials wltfii n Stn icr^d«clar«d or 

tlidden .shipment TO find a knowing violation 

of Che HMR. 

tfirnrmarlon concwnJn;?, the contents of 

suspiciou!^ paek9B«f must be pursued to 

detcr;nine whPther ha;iardoos rnateriols have 

bfcijii in-ipcoperly offered, A cpvrier's 

cmployses wh o accept packa^jes for 

tr<virporl:atlon Tnu.^T. be rr-iinnii to rceogni7.e a 

"svicpli;iou.? parkoiji!, ' us pare of their 

functie>r;-—spccLflc tralninf; a;- -peelficd In 4fl 

CFR 172,704(a)(2), bocfius^ the legal .jtand.irtl 

remain,? ihft tuiowlerigc tlmta roanoimblc 

person acting in th t rlrcumstancc."; ?Jid 

CJcereiSing r'ci-Vjn.ibls core would haVL-, 

Kecsuse rlliis .standard .•3ppllo;j io all modes of 

ti'Onsporr&iion, a .slngl* ir-iining prognirn and 

a unlforni screening process can be 

de^'elupedfor al l of a company's t.tnipleyee.'! 

liivcijved in surfacii or air rransportation: 

At i:hi? sftme tirns. an offeror who fail? in 

)i7rrnp»r,ly dsclare (and prepa/e) o T-liJpmcnr of 

hwardotis material.'j bs»irs ilic prlr/iat^' 

rflSpnnsibitJtj- (or a liiddcn ."ihipnienr. 

Whenever liaJijj'dnut mawrlals have not been 

shipped in compllajite wit h the HMR. DOT 

geriFrnJly wil l attempt to identify «nd hring 

an enforcement, procrreding against the 

person 'v«,'h«. first caused the l-.rwwportsiion of 

a noncomptyingsIiipm«nt. The procedun!.? 

applic.-ibJ'.' re DOT civi l pensUy tnforuement 

M5e,r. procedures are .^et forth tn H CPR 

1,3.16 (FA.A.J: 33 CFRpnrt I, subpan 1.D7 

(fJSCQ): 19 CKR p,irl lt19. .-subpart D (FKA) ; 

4S CFR pa n 107, subpart D P^SPA); and 19 

CFKpart3«G (PHWA). 

To tlie i--xi(?rn, rhiiteji y carripr. retjarrlks.s of 

the mude ef iransportati'^n, is tml y 

"innocnni," in necL'ptijjg ,3j-i unclHelflr'd or 

hidden sliipnieni uf l\«'7-,;irdiini m.'jterials. It 

lacks chif hni3'»'ledy« reipijred Ccr .HMefjnusrx 

ol a civi l ijp.nolfy, Ilovvwvcr. whr n y (Virrier 

•icrs "knowinjly." n.-s dKfiiu-rd In 19 Cl.S.C, 

5i:?3(3), it MuiT be c.07i.-Jdfe-red .•^ubjpct u> eivil 

penalties. RSPA i>vjea3 any suggestion tliar a 

cai'rier <,v>7uld bs deemed to hav^ 

"lonowingly' .icecpred a li3;!;9rdoti.'; niatBrfwl 

Tor crunJpii'nfltiuj-i, and be .subjPCl t" clv(J 

penaldC'i undsr 4,9 y, 5 C. .•}123, only wht n 

thoTi^iteri:!! r.v dticribe d S? u ha;£jrdoi.lS 

n-|aler(-a) on a ,?hipping paper oi' «rlier 

conimercial doeumenrJMinn, nr iJ\p. package is 

marked or Jolsrlird l»-i a manner ns prcjcrlljeri 

by rbe HMR. Thai oppruBi.:li wi^Lild 

improperly iim.d a ean-ler's respon.',lhint> ITJ 

siULBLion.? involving a "d'-.'<;l.'«i'ed" shlpmem 

DEPARTMt'NT O f TRAN.SPORTAI'If>N 

Olfice of thft S«r.T'ct3iY 

Ortober i, 1977. 

SubJ. Air Carrtei'f. Reopon.^U•,lili(y for 

iiupection o i IhzaKkiMS M»Tsn-.*is 

Packaffis, 

Frorn: Aiir-CiLni. General Counsel for 

Waterlal.s TTanipijftstvuri l,aw. 

Tn: Dirfrcior Traji.NpiMtaUon Safely InsLiri,il,«. 

n\i s Is in rcsppnsf. to youi reqiieac of 

Augujt Z.5, 197", for our opinio)-) as lo 

whether an air cvnT.r has a specific 

regi.ila'ory obllgaiinn to inspetr ha^-vdous 

maleri-^Is psiek-ages pri-jr w secftpuince for air 

cran.^port-i'Jon w insurn tii t sblppRrs 

compliance witl-i specific regulatory 

requirements of pirt s 173 ynij J '/H, With tlte 

question, you i-ia-^t suppli'sd your analysis 

and yonelu.'tlon thar except for the phj'sjca) 

Integrity inspection provided for in 

§ 175..30(b) there is no (<uty on the ,-\lr earrter 

to inspect hazardous materials packajjw prior 

CO acceptance fur transprirtatK.in i n order l o 

dererm^rw c;oin[jllfncc w-'liji the requirenienC? 

of pacLS 173 ?ind 178. Thus, ic i-s your opinion 

that the ?ir c.?iri'i«r mj y rely on the shjppei's 

ccr:lf>eiMlon ftCC'jmpsni'ing the- sliipmonf. 

Section 173.,?0 prp,5Ci-ibes rhe rftquirertients 

U-»ai, niu;-.c bi5 met before an .-^ir carrier at;eepis 

a shipment of Iiarlardous nlo^tt^l(^ls for 

tTan.^pnrtatinn. I n achievli-yj coraplipilce ivith 

tl-iest- requirements, the air eai'riErnju,<n. 

Linder paragraph (a), exap-iins thft ihipirtftnt 

against the infoi'mi>llo»> .supplied on the 

shipping paper, and must, imderpsj-agr/jpti 

(b), m?Ke a vii-uai inspection fur Icak-s and 

damaged pack^ing . ton.'equftntly. I agree 

•witl-i your analy.oi unci eorr.lusion that the 

regul,itions permj l the air riiri'i«r to rely on 

Che information supplit d on d-ie shipping 

paper, imless. i n complying wit h parag^raphs 

{:>) and (b), he has iiiason 'o luia-A- th.in there 

ai'e discrepsncJcs. 

(FR Doc 98-U56I Filed e-.'H- 9S; %:iS am) 

BILLWG CODE A»t(I-«0-P 

DEPARTMEN T OF= COMMERC E 

Nationa l Oceani c an d Atmospheri c 

Adininistratio n 

50 CF R Part 679 

(Docket No. 9B1107312-7021-02; ID , 

0520968] 

FisheriftS o f th e Exclusiv e Economi c 

Zon e Of f Alaska ; Bycatc h Rni « 

Standard s fo r th e Secon d Hal f of 1998 

AGENCY ; Nflliori4i[ Marin e Fisheries 

Servic e (NMF5) . N?itional Oceani c an d 

Atmospheri c Ariministrcitio n (NOAA) , 

Cummerce . 

ACTON: Pacifi c halibu t an d re d kinp. cm b 

'Dycatch rate standards ; requ<;-.;-it for 

commenis , 

SUMMARY : NMF S announ'-<;;s Pacifi c 

I-^-^lihut an d re d ktn g cra h bycut'Ch rate 

j-Landards for ih e ,"tecond hal f of 1993. 

ri.ibHcarir.>n o f th«se hyca!.«:h i';i(e. 

SSO/SLO® SWQ VVd 

ZH9ZQ^Z0Z XVd 90: U 0L02/GL/0L 
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53 

SCOTTR . MORRr S 

FAA OFFICE OF REGIONAI. COUINSEL 

1601 LIND AVE.,SW 

KENTOM, WASI-I.TNGTON 98057 

TELEPHONE; 425/227-1417 

FACSIMILE: 425/227-1007 

UMTE D STATES O F AMERIC A 

DEPARTMEN T O F TRANSPORTATION 

OFFICE O F HEARINGS 

WASHINGTON, D.C. 

IN THE MATfER 0,F 

EMPIRE AIRLINES, INC. 

FAA DOCKET NO. CP09NM0009 

DMS No. FAA-2009-0586 

FAA Case No, 2007NM700155 

Judge Richaxd Goodwin 

MOTION TO TAKE JUDICIAL NOTICE 

Complainant, through his undersigned counsel, pursuant to Rules of Practice 13.218(a) and FRE 

201, hereby moves tliat the AL.T take judicial notice of the folio-wing; 

1. The Administrator's published sanction guidelines for hazardous material violations contained at 

64 Fed. Reg, 19443 - 19450 (April 21, 1999). (Attached) 

2. RSPA Fonnal Interpretation of Regulations, 63 Fed. Reg. 30411 - 3041.2 (June 4, 1998) 

[Constructive Knowledge guidance]. (Attached) 

3. In addjtiori to regulatory violations set forili in the Complaint, the following Hazardous Material 

Regulations (49 C.F.R.): 

a. Section 171.8 

b. Sections 172.101 (Tabic); 172.200, 172.300, and 172.316 

c. Sections 173.27and 173.150 

DATED i;his 13th 4^y of October 20J 0. 

;SCOTTR. MORRIS 

F A A Atto.mey 

ffiodon to Tnke Judicial rvotice 

PAA Deckel No. CP09NMO0O9 

Page 1 of 2 

SCOTT P.. MORRIS, FAA ATTOHN^V 

TEL: 425.227,1417: FAX: 425.227,1007 

SSO/frlO® SNQ VVd 31?LSe6t202 XVJ 90:L L OLOS/GL/O L 
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S3 

CERTIFICATE OF SERVICE 

I hereby certify that the foregoing Motion, to Take Judicial has been served via facsimile and 

Certified Mail - Retuni Receipt Requested this date, to the following: 

The Honorable Richard C. Goodwin 

Office of healings, M'20 

1200 New Jersey Avenue, S.E. 

East Building Ground Floor, Rm El2-320 

Washington, D.C. 20590 

TEL; 202.366.2139 

FAX: 202.366.7536 

Federal Aviation Administration 

800 Independence Avenue SW 

Washington, D.C. 20591 

Attn: Hearing Docket Clerk, AGC-430 

Wilbur Wright Building - Suite 2W1000 

FAX: 202.493.5142 

Couirtney E. Felts 

Staff Attorney, Federal Express, Inc. 

3620 Hacks Cross Road 

• Building B, 3"* Floor 

Memphis, TN 38125-8800 

TEL: 901.434.8632 

FAX: 901.434,8283 

Lawrence W. Bierlein 

Attorney at Law 

110130"^ Street, NW, Suite 500 

Washington, DC 20007 

TEL: 202.625.8355 

FAX: 202.625.4363 

Dated this 13 th day of October, 2010. 

ivTOIFAIR CHIN 

Office of Regional Counsel (ANM-7) 

Federal A-viation Administration 

160 J LindAve. SW 

Renton, WA 98057 

425.227.2160 

Motion ,o ra^ c JudfclolNoUc. SCOTTR.MOR«,5,FA A Arro«N,Y 

FAA Doekei No. CT09NM0009 TEL: «5,227.UI7 ; FAX: 425.227 1007 

Pfljc 2 of2 

SSO/SLOia swa * VVd StlSSGtSOS XVd 90:iL OL02/GL/01 
10/13/201 0 V.?:53 42522711307 ANM7 PAGE IS/25 

Federa l Register/Vol. G3. No. lD7/rhur.sday , June 4, 1998/RuJe.-^ and Rfigulation.,^ 3041 1 

th(? eriienafora significant regulatory 

action under F/ixecurivt: Order 12866, 

Thu*;. it ^*'3s not stJl.ijpcc fo 0MB review. 

Regulal ory FhxJliiJUr A n 

We certify th<)t this regulation will not 

have a signific.-inT economic impact on 

».subscaritial number of smalj entities-. 

•Therefore, s regulafsry flexibility 

analysis as- provided in the R.eg(.ilaf.ofy 

Flexibility Acl, as 5"iend<7:d, is not 

required. 

Pspanvork Rirriiictiof) Act 

Thi,s regulation impo.ses no repontn^/ 

recordkeeping J'egyircmants 

necessitaclnjj clearance by 0MB. 

(Catalog of Fflder.-?! .Dijim.'SsOc Assistnnce 

Progfeicn Nos. 96.001. Soeial SecurlcyDisabilJry Infliranct: 9?,002, Social S«curi^yRetirerrrent rn.<nirant,-5: £>6,00H, Social 

SMiirJiy'Survivor,'! Insurance; 9f5,006, 

Supplemental Security Income) 

List of Subjects in 20 CFR Part 404 

A.dmlnlstrfilivis practice wrid 

procedure, Blind. Disability benefits, 

Old-Ag<-;. Svirvjvorfi and Disability 

Ii-i,5urarice, Reporij.ng and recordkeeping 

reqLiirej-nr.iit.?, Socia? secniity. . 

Datfld--May 27. ISIfiS. 

• Kenneth S. Apfel. 

CpmrnJxsivner afSC'CiaJ .'iftcurJty, 

Far the retison.'S s-et forih in the 

preamble, pgci404. subpart P. chaptcim of title 20 o,f the Code of Federal 

Regulations is amended ,9s scji forth 

!2. NeunipioRic?} 

19s.)9. 

(ll.OOsnd 111 [W);Iuly I 

J 5. lmmu.ne ,Systcin (.H,00 find J I 'I f'O); 

July I. 1999. 

[FRDoc, 98-Hi399Flled6. 

BILLING CODE 4'(»a-29-P 

•3' 9S; fl,13am( 

DEPARTMENT OF TRANSPORTAKON 

Research and Special Programs 

Administration 

49 CFR Parts 107,171, 172, 173, 174, 

175,176,177 

[Notice No, 96-6] 

Hazardous Materials: Formal 

Interpretition of Regulations 

AGENCY: R<>.search and .Special Profjrama 

Administratinn (RSf'A), DOT. 

ACTION; Formal i.7iterj>7't?t3tlon of 

i-egulation,?. 

PART 404—FEDERAL OLD-AGE. 

SURVIVORS AND DISABILITY 

INSURANCE (1950-^) 

Subpart P—[AmendedJ 

1, The authority citation for subpart P 

of part 4U4 continue:! to read as follows: 

Autliority: 5ecs, 202, 205(aJ, (b), nncl (d)-

(h). 2nm, 221(d) a,>ci (i;. j:22(c). 223, 225. 

pnd 702(s)(5) ef difi ,Social Security Acr M2 

U..S,C.:. 402, 405(«0, (b), .ind (d)'.{10, 116(0, 

421 M BJ^d (i). ^i2(c), -V-!3, 42.1, and 

902(<.)(5));iec, P,lUl>),Kib. T.. ]04-I93. 110 

Stat. 2105. 2189, 

2. Appendix 1 TO-^Jtibparc P of part 404 

is amencied by rcivisjr/j itenin 1, 3, 11. 

12. and 35 of the introductory text 

before Pare A to read 33 foUow-."!; 

Appendix 1 to Subpnrt P—Li.tting of 

ImpsiLnnents 

I. Gruwrl-i Impsiirmcni I'lOO.OO^ July ), loss. **»»' * 

3, Special Senses and Spnocli f2,C>0 and 

102.00)'July 1, 1999. 

.T. » • « .T 

1 I, Multiple Bociv SyilKiTis (\ rO.OO). July 1 

SUMMARY: This doeumenT publishe.'i a 

forninl inrerpreration of the l-Iazardous 

Materials Rp^ulatloris (HMR) ronceming 

the responsibillijes of a carrier when 

accepting hazardous m^nierials for 

Ti-aru'portaUon in cottijncrce. This 

intprprataiion i.<; being published in 

ordc;)- to facilitate better public 

understanding and .-nwarene.v"! of the 

HMR. 

EFFECTIVE DATE: func 4, 1998. 

FOR FURTHER INFORMATION CO^TTACT: 

Frazev C, Hilder. Office, of the Chief 

Cni.jnsel, Resoarch and Special. Programs 

Adininiscrrition. U.S. Department of 

Transportation, 400 Seventh -Street. 5W, 

Washington, DC <;05l?0-00noi; 

telephone 202-3G6-44OO, 

SUPPLEMENTARY INFORMATIOM; AS part of 

its iniplenientatloo of tfie Federal 

ha^mrdou.? mareriaJ transporl^rion law, 

49 U.S,C, Sini et.^aq.. RSPA issues th(i 

Hazardous Materials keg:uIatio.ns 

CHMR). -19 CFR parts 171 l eo. From 

tinifl to rim<:. RSPA's Chi.el' Cotinsi>l 

issues formal inTerpret^^tinat^ of the 

HMR. These inTevpieiaUons generally 

involve multituodal issues and are 

coordinntecl with the othfer DOT 

agencies which, wgother with RSPA. 

cnforecitie HMR; Federal Aviation 

Administration, Federal Highway 

Administrarion, Federal Railroad 

Admini.'itfiition. and United -Stares Coast 

C-uard, This documeni publishes a Chief 

Cou-nseFs iiircrpreiation concerning the 

responsibllilics of a carrie-ir when 

arceptlng ha^jirdous materials for 

tran.sportation in conimorce, Thjs 

iiilcrpr«taiion flddres.sH,? issues raised in 

a letlfir by Mr. IC.A. Aliemov;, of F-fMT 

Associares, and i$ cvnsist&ni wnh an 

August 19, 1997 written response to Mr. 

Altemos by RSPA's A.s.soci.ite 

Administrator for Hazardous Materials 

Safety. 

In addition to these infrequent fofmal 

interpretetioas by RSPAs Chief 

Coun-sel, RSPA'."? Office of Hazardous 

MatRrials Standards provides 

information and infarm,5l c]ariflcatio.ns 

of the HMR on an ongoing basis, 

through (1) a telephonic information 

cenvM- (l-S0f)-467-4922) to answer oral 

questions and (2) inrormal written 

interpretaHons or clarifications in 

response to written i.nquirle.5;. RSPA's 

formal Interpretations and informal 

letter claTifxcations (and additional 

information concerning the HMR) are 

also available tl-irough the l-lasmat 

Safety Homepage at "http;// 

hazmat dot,gov." In addlrion, some of 

R.SPA'K i.nterpretations .-Jnd 

clai-ifir;ation,5 may hi? reproduced or 

,<;urrjrriijri;jed in selected trade 

pLiblicytjons, 

Fuither InforniaUon concemin|> the 

availability of informal guidance and 

intCTprei;aric>ris of the HMR, ,is sei forth 

if) 49 CFR 107,) 4, RSPA believes that 

publication of it? interpretation,-; should 

promote a bcttof understanrJing of the 

hlMR and impro-ve compliance -with the 

HMR. 

t-ijucd in Washington. DC, on May 28. 

1998. 

Judith 5- Kalttip, 

CDJefCoiin&el. 

rint No. 93-1.1 

Bjr.kground 

Mr. E.A, AltEmos, J-TMT Assnclatcs. 

requested clarlfjcation of r«eiiJiritmcnt:i in rht 

HMR concerning an p)r Carrier's acceptance 

of psckagE."! coiilainlnfi bF?:ardoui mji,crta,(j, 

This Inc^uiry concfcrned only die cirrier's 

responsibitides relatinp to hatardous 

nvitertals r>fforcd liy onotlier pei.M.iii, aii<i nor 

a cvriEr's rransporcation of its nwn materials 

or products. (For Information an an air 

carriEr'.s tr3n.--porl,arinn oC (i-,^ own cnnipany 

ninterJals, ar '-COMAT.' .T<?e "COMAT 

FACrs' in RSPA's January ISflS Safely 

A lerl. avoljablr i:>n Uift HoJ:inv. Safety 

Hornftpaflc.) 

A,(chough Mr, Altcmtiji's quc^Uoji was 

posed In the conccsrt of air transport-iition, llie 

HMR requirements discussed in RSPA's 

interprafstlon apply to caiTier? by all TTiodej: 

cif trRns|.!ortHdon. 

tnccrpretation 

Basic requirements in the MMR sci forlh in 

49 CFR 171.2(a) and (hj, and applif-.«!tile ro 

c*rricr.-. tn all mode;; of innspor^ifioii, ace 

thai, no person may 

accept 8 hazardous maicri.ii for 

transporcation 111 f.omnier<;e onle.ss ' ' * ihe 

hi-izardou."; material is properly e)<i¥5B<i, 

dH.«crlbcd. pad^flgfid. m--irl<«rf. iplicU-i-i, and in 

(.'wndluon I'or shipmeiit as rcqiilrrn! ur 

9S0/9L0ia swa VVd StPLSeetSOS XVd 90:L L OLOS/Gl/Ol 
TP/i:)/2Ell0 12:53 4252271 tJt)7 ANM7 PAGE 17/25 

3041 3 Frrler.iT Kcgister/V„|. r.'S. No. J07/i-hLir.?dnv 

a.iUifjnied by sppiiL-ahlu rfiquirernfinT.;; of fchi 

I-IWR], or a,ri e.-:Rnipl.iQn. apprnvol, or 

r».glflruLrnji Isrularf unrlfti Iche HMr<l •' - ' 

(orl 

^ra^l,•7pf)|-l.a ]ia7.,Tr<;loij.< jn.5iprj']al III t-oirimeica 

un)«.•;.; ' '^ ' rhe hap:9rdoi.(s rriaterJa! is 

handled and rriiruporu-d (n .•ictordanee-wirh 

,ippliL'ablE r»qLiir«iiierir.« of icJ-is JHMRl, or ?in 

exeirlpdon, aoprwval. or regjstr.ition issued 

under [rhe HMRI ' - ' 

A carrier's acceptance and crajispoi-tarloi') 

of l'rd7,Hrdou,5tTMti;rialTi c-)n jnvolv * sevnnl 

diffsrent shuatii.>ni', including die ioUowhii; 

l-jL-n ?nds of the fpRctrum1, rhe shipniftnt is cJecUred by the offei-or. 

In onfl nianncr i^r anorhcr, to cwit-iin 

liazardOLiS materials and t;omp)its (in whole 

or Jn part) wltl l rfiquirenienrs i n the KMR : or 

2. wiieLhp.r InLEntionaUy or 

uninlcnticnally . the shipment is not declared 

by die offeror i;o contain htLr^rdoiis m«TcrJ«ls, 

and no attempr has be.en made to compl y 

wii h rJio HM K (Mic "undeelarHcl" or "hidden" 

The Secretary of Transporwtion ha.'; 

d«lngaucd w ajCiKms vvH.hin thr; IPcfjarr.rTent 

(FEdfiral Aviation Ariminlstrarlon, ^'edfirM 

Hlgh'way Administration. Feder.x! Rni.lro.'sd 

Adminiirr-iKi?!-!, United .5taro.-: Coast CuarcL 

and Kesearrh and .Spcci.-?! Progrfinis 

AdmlriinrMCTon), HIP audiij i iry in 19 U.S,C. 

5123 w as.5(iss a civj] penalty'a^nlnsr any 

pijrjprj •ui'ho "lQir;«-jri(T|y tiojates " yny 

re<juij-emer)Cin rhe MMR, Including rjit: 

provi:.;lons i n ,^ 17[.2 fij) and (b) quored 

-nbove. Section IJl2,'ifa) provides th.-jt s ptrscm 

"aci5 Juiovi'ingly" v.-hen 

fA) thF person has a<:tual kn:3wledge of the 

f^icfs givingri5« fo the viulaciyn; er 

(BJ <i rftasoriable pei-.-ioii acting i n rhc 

clrei.lrn.'ir.nnces and C'tfircising reasonaLrlfl care 

weul d have llrar kjiowledge. 

Accordingly. ,a earrJfir knowingl y vLoli^ici 

the hJA'lR when tlie can-ier accept"; or 

tranaports a h.i7,8idnus material with actu.a) 

or constructive Juiowdedge r.hat ;i pncWnge 

con1,iJns a hfljordoa:; mntcri^ l wliic h ha.^ no[ 

ticuri patk^ERd. rnf>rKcd. labfjlcrf. and 

destritied o n A shipping papef as rcnulrcd by 

rhc I'fMR. Thi.5 mtans diat a carrier ru.'\y not 

ignore readily wppurflni face* rhal indicate 

Ihflf. eitli^ r (i ; a shipment iJecMrcd tg eoniii n 

a haTOrdoii.? niatErlal is not properly 

pO'.lciigcd. mflrked, Jal;eli*d. pjacsrclad. yr 

described on a .¥liippj;ij5 pupftr. ar (2) .n 

,!;|-iipjnenta£:i'U9lIy ror.lains a hazardous 

niatfrial j;nverned hy [he IIM R riespitc- the 

fact that ir Is noi misj-lMd, Inbelftd, plat:,^rd'>ri, 

or rtcccribcd rjn ? shipping paper a? 

conlEiinillp, ii Ii.n7..ircIoU;S ni;iL«;ri,7l. 

The Depiirimcni'.i Ociobcr -1. ]rt77 

liHi.rprcC*t.l(?n conc<?rnin/3 49 CFR l'/5,30 

(ccproduccd l;>eli-Av) r«>latft.s to the firsi 

nituatinn In IHB abnve j„-arggraph. Ar--, vha n 

an .jir carrier rereivex .•=i shipmRnl 

n shippCi 'G cftitificnllor that haTiai'dous 

niaLsrtiUi xvUllin rhc ahlpmijii l hat-c been 

clasjcd. paclulgpcl. rnarJ(L-d, labelf d ,ind 

jrri.ir»jwl>' ilc,Tr;i.ied ,« required. !i'c(?49 CVR 

1 '72.20't, WhirCicvtr. In (He ','our;;« of 

Waminin g the shipping paper and 

pftrfoirnlng Ihe requiinjd •-isual.ln.'jpecfjon ef 

the piickflge, an .IN" c:arfier hOi-' reivpc rr> |cn<pw 

rftly on rht; .shlppL-i '.•; 'X-uifKiiit'^n, 

1998/Rules and R^sul^tions 

In rlvi- L"-i.".? ef an und'JKbrr'J nr MfjIdcD 

jhrj-irricTiil HII i<j]ei',<inr f'acis mast Ije 

OonsiiJKrp.d to demrniine whei hi:r or nnr-l 

rc«.''Onablf' (jurioji JieCing tn thft 

circumi-i-Bncc!: .i:id excrciiiiig rea;;oiiable care 

waijJtJ rnaliic the preSBtKe of hciTiardniJS 

li'iaia'lals. fii yn enfencfiD'fni: proceeding, this 

is always a question of fact, lo be dErerminfid 

liy difi fact-i?intlflr, B»caij,?e innumeniDle ftcc 

p,'ittEn-lS may cjrlst, ir is not prainicablc to set 

forth s .list of specific (criteria Lu govern 

n-fiethei' or not tile cai-rier has sufficlenl 

rens)rur;tivc kno-v^lcdpR of rhc prsacnce nf 

h,izarrlous rnatsrial? w-iihin an undeclajed or 

hidden shipmEiii. ro firir) ii knewinj; v(ol,nrlcin 

iif rile ("CMR. 

Information concerning the concents of 

suspicious p;3ckBgc3 musr l>e pursued lo 

determine whether ha;:iii'deus malartal."; hsvc 

been (mproijerly of/crsd. A carriei'S 

employee."! who acrept p,ackagcs for 

tronsporraunn must be trnliicel to r^cugnjz* n 

",5UsplcJoi.is package." its pari of their 

function—.specific rrp,in)np a.5 specified ,in 49 

CFR i7•,^.70^•iil)(7), bf.f.:,ur.,: dnt la^M srsnU-jitl 

rern,9lns the kneuiDcl^;*! tliar a reosonabie 

pfsrsop ai-rln^: in thrr i:irri.ijn,^c.-u-iri:i Jind 

exei'cislng rftasonable care would have, 

BiirauaB i,hj,? itanclyrd opplit,;- to >i(l modp„i; of 

Craiisportation, ,ii .'inglt ir.'jijifng progr.-un and 

a uniforni .•^crtRiiing procei,s con be 

developed 'or ?i]l nf a (:9mp«i-i)'-.5 empioyecj 

invftlved .insurfai-ie ur-iiir rrcuispOTtao'eo". 

At the 7-imf Lim.;, nn offeror wfio fulls l,o 

prnperl); dar.jlarfi (and prepare) a ."Jhipmenr of 

]ia7:ardous nv^terLi^l.-; bears the prrniary 

rMpDn.-.;tJJ11l.y rr>r g lilddfin .ihlpment. 

Wheiiaver hazardciu.s materials have not been 

shipped in compliance 'vvilh rhc HMR, DOT 

generally vuii] utccmpc icj Identify ajid bring 

an etiforcL-meritpj-ocecding against rhc 

person wh o first cnustid ih« transportallon of 

a noncemplyfng ihlpjncjir.. Thfi procedure.i 

applicable lo DOT civi l penalty cnforcfimen: 

oases proc)jdures are sp.t ftjrt' j in 14 t';FP 

13.16 (FAAl.'3:i CFR part l,subp.'»i'C 1,0/ 

(U.SCG)r 49 CFR pan .[OD. subpart .B (FRA); 

-19 CFR part 107, .subp,sr< 1) rR,^,PA); a.nd 4«) 

Cf-'Rpjwt.l8i5 (fl-fWA), 

To the rxtcni- tlist any rjarrjLT. rep.'^rdlRSS of 

the ii'iode oi" i;r«)n»<parta',i<:)U, iF, U-uiy 

•innocent" in acccptiug -Ml undficlanid or 

bidden .^hjpiTiKm: of ha?-.ar(loi,is matpriMK ir 

lMr;k* rhc k^invledge required frx' a.wc.'..';iiiftiii 

of a civi l penalty. Ho-vcvfir, vs-hen a cariiHr 

act.s "krinvvinEly." o.'; d^'fincd in 4y U.i, C 

°>\Z'J:(&). ic must be corrsidtred suJjjerl tociii J 

penpld'fl.". R.Sl^A rc/ECU; .-in>- ;,;ug.i«v;lii7n lh.-it 

carrier would lie dfiei7ied lo havp 

'kni/vvlngly" ;3i:cfipied a h.ji.irnoLi.c marerl.i 

for (.r-aiijtpprfalien, Find be suhjerr to rlWl 

rhc maCKrlal is dP-^Crlbcd ?y a hjniardnus 

nialctrial on a .FhippiOH p,^pirr or tvthcr 

eoinriicrrlal docurjiEntalion. oi Ihf. p;i.cl(.3^e i 

marked or labelud i n a mannfir ii.x prescribed 

hy rh« MMR. Thflf apprvncii woMJd 

i;)el'jbi»r i. ir n 

Siibj .4.(1' Carrier s Rijspni-if.i'jilii?< for 

Ir:.":pei.-iion oPH;i,c>irHoijv Marcrtsli 

J'sr.kJ.ige.s. 

From: AsST.'Jtant General Counsel for 

M5l«irlal.'= Tran;^porT3tion Law, 

To: Director, Ti'iui.^poi'calion Safery Tnstiture, 

Tlii,< Is in i-esponse to your request of 

August 2.1, 19T7, (OT f7ijr opinion as to 

iA,-b*thr.i all Jiir CJjrl.;F lias s spefjlit: 

regularriiy obligarion to inspect ha^aidous 

m«teri."il; pi;icKnC«S prior co uceopLaiif* for air 

rraiisporiarion tn insure the shipper'.*: 

compliance -with spHclfii: regulatory 

rctjujrcnienti; nf part,* I 73 jii d 1 7G, W(;h tliir 

question, you have .supplied your analyi/s 

and conclusion that e.vcept for r}ie physical 

integiity inspection provided for in 

S 175,."iOW r.lier« (.s no di;ly on tlvc oir rorrier 

to inspect hazardous msTeiials package; prior 

to accBptiXnce for traniportation i n orfjer to 

clec«rnii;)L- cornpbance wirh tin,' rcqulrcmcnr,? 

of parts 173 ft.nd 178, Thus, it is your opinion 

that tlie air carrier may rz]y on rbe shippw's 

eertjflcBKOii ur-crjippsmiiiiu tfie .^hliimcnt. 

Seciion l7S.30prft.?cribe.5 the requirtment; 

T.hat musr he met Ijnfoirj an »lj' ean'ler ,v.crpts 

a shipniani. of hazardetli maierials for 

i;ransporr;?lJon. th 3r;hiev)ii(> conipliance with 

there requirfernL-nrs, the Sir carrier must, 

under paragraph (a), examine the shipj;nHnt 

'Pjiainst ill.; inforniriiiofi .^upphijid on rh« 

shippLng paper, and must, under parsgraph 

(b). m-ikc --> visual in.-^pectien for leaks and 

domaiiiccl ppcka^ing, C(jr>se<iur'ncly. I .-igret 

vvith your analysis and corir.lusiun tliai chp. 

rej:ul3rion3 permit Line air carrier to rely ojn 

ihe info/inriUon supplied on thi; shippmi; 

paper, unless, in cnnrjplytng wit h p.'iiagraph"; 

(a) and (b), he has reason to kri^iw tln-i* tiiere 

fFR Doc. 0S-.I45&1 Filed 5-3-

•3S:8M5am] 

DEPARIMENT OF COMMERCE 

National Oceanic and Atmospheric 

Administration 

SO CFR Part 679 

(Docket No. S611073-)Z-7021-02,-1.0. 

052058BJ 

Fisheries of the Exclusive Economic 

Zont? Off Alaskfl; Sycatch Rate 

Standards for the Second Half of 1998 

AGENCY: National Marino Fisheries 

.S(?rvic!i ^NMFS). M3r)or..a; 0<:eani<. and 

Atmoi:phRi-ic Adminii-jlrafiyn (NQAA). 

Commerce. 

ACTtON; Pacific halibut nnd red king ccah 

bycatrli rate .sr^indBrck' request /'or" 

coj-t^mrnls. 

.mprop,rIy limi,. a corri,.T'.. ,v.por,..(.(>illry ro 

situations involving , "rl,..,;l.,rrd-.htpmcM 

'v'tuon f iJifi 5r:t:rc;si'y 

SUMMARY; NMF S annr^Mnt'iM facirir.-

halibu t fin d re d kin p crab bycatch rat*' 

.vtandacds for rhir secon d li;ilf o f IJl.98. 

PubKcatlo n u f the.?e bycarrl i pai-p 

C-(ynd,iird.s'•;''"o"---''-'• •••'-- • 

SSO/iLOia swa VVd StLSeetSOS XVd i0:iL OLOS/GL/OL 
10/13/2010 12:53 4252271007 ANM7 PAGE IB/25 

t 

Federa l Reg»ata-/Vol. B4. No. 76/Wednesday. April 21. 1999/Rules and Regulations 1944 3 

Small Bus/nus Regulabjry Eafotcement auth&risx appropriate afflclals afihe 

Faimc ^ Act 

The Small Business Regulatory 

5nforcanent Fairness Act of 1996 (Pub. 

L. 104-IZl) provides seneraUylm 

cDngresslonal review oTagemy rules. A 

cepoitlj)^ rviulnnient Is triggered in 

Instances wheiv NCUA Issues a final 

lule as defined by Section 551 of th« 

Admbi[stratiwi Pnacodiins Acx. 5 U.S.C. 

551. The Olhcb afManagemeni and 

Budget has determined diat tUs nils 

does not consUlute a majDr rule for' 

purposes of the Small Business 

ReSUlatDty Enforcement Fairness Act of 

1996. 

Ust ofSutjectst In 12 CFR Fkzt 701 

Chatltable otntxlbuUons. Credit 

unions. 

^/th e NadoiuJI Cndtt Union 

AdcnIrrivtMtlonBmnlonAfirillS, 1999. 

BcclQrBkkcr, 

&cxeajy oTth* Boanf. 

For Ihe reascHM set forth abovit. NCUA 

amends IZ C7R part 701 .as follrywx 

PART TOI-'^mQANCZATWN AND -

OPERATION OF FEDERAL eHBVUT 

UNIONS 

. 1. The author!^ dtBdon for pa n 701 

continues lo read aa fbllouFs: 

fMbmUr 12 U.S.C. 1752(5). 1755. 175G. 

'757.1759, jTeiB. 1751b. ITBS, ITS7.17W. 

•7S4. ITSr. and ITSSt Section 70I.S l« aiao 

Mithcrtad by 31 VSJ C 3717. Sectf<m 701.31 

udiaamiti^itiaBiityi$V.L.C ISQl cc sn . 

<2 UJ5t.C. in i Bnd 42 U,£.C 3SD1-3610, 

Sectlm 7013S U BJMI aiKharfzed bjr 43 

U.S.C43II-43I3L 

2. Part 701 is amended by adding 

§701.25 tnreod ta follows: 

S701.2B Oiartable contrfbuflona and 

dftaattona. 

(i) A federal credit union may make 

charitable conblbutlons and/or donate 

fkinds to rodplenb not organized for 

profit that are located In or conduct 

activities In a cDmmunl^ In which the 

fedonJ credit union has a place of 

business or IO oi|;3nl^tlQr>8 that are OK 

exempt orsanlzattons under Sscdon 

50I(c)(9 of the Inttmal Kovcnue Code 

and operate prlxnarlly to pronxite and 

develop credit unlons> 

(b) Tne board of dlrectots must 

appirave.charltBbIe cQncrlbiictora and/or 

donations, and the appraval nntst be 

based on a determination by th« board 

of dbcoois thai the conirlbutions and/ 

or doTtatloTB are In the bcsr Inteivsts of 

"^e federal ocdlc union and are 

easonableBl^^n the sizo and Arunclal 

xndltlon of the federal credit union. 

The board ofdlnictois. If it chooses. 

may establish a budget for charltahle 

tomrtbuNc)n» and/or donations and 

iicdejiil i3«dtt union to select recipient 

and dlslwise budgeted toids amoi^ 

those redplenfi. 

|FR Doc 99-4931 PUcd 4-Z(V.99; 8:45 am) 

mtAMacoos Tns-ei^ 

DEPARirUEMT OP TRANSPORTATKIH 

Federal Avladon AdratnlcnaUon 

14 c m Part 13 

Fartoral Avtation Admbilstrttion PoBcy 

on Entew-mntnt of ||)« HaxardBiw 

MklarUii ReguistionB: Panalty 

GuhMhiea 

AGENCY: Federal AvlaUon 

Admtmstratlon (pAA), POrr. 

Acnoie Crcnoal slateinenl of policy. 

WHMARV: This docuBcru states ALO. 

FAA poIJIcy on dctamlnlng rhe sancdon 

amounts in f'AA enforcement actions 

addretttng-vtolatlons of (he'Pqparlineitt 

of TVans()ortadon H^Baidous M^aiaX 

Regulatlcns ftJMFf, This policy 

statemeniE pmdd ^ guidance for leeocy 

penonnel in the eoBrclM of the FAA's 

ptosecutrrlal discretion hi enforcerrKnt 

cases concerning trotispartation of 

hasardousraatsflala by air, 11>e 

gnldance should aid In analysb ef the 

bets and cinztirasanoes oif each case so 

as to arrtv'e at an appropriate sanction tn 

light of the statuCDTlly dcBnad penalty 

consideradons. The analydcal 

Cnunework sheuld also proinotea 

relative aMulstency In detenntnlag ctvil 

penalties for violatians of the HMR. 

U-HJim: DATC: April 14,1999. 

FOM FunniEn BVonuTioN coitritCT: 

BlU WilhadnB. OGBce of Ovll Avtation 

Securi^. ]3angenius Goods and Carcp 

Security Elvlslon, tdaphani!: pOi) z$7-

8894. bcs(niUe{ZOg 2UT-5760. mull; 

BUl.VWIliBnlne»fta.ciDV, maUinE 

addrcK: ACO-SOO. BOO Independence 

Avenue. S.Vf., Washington, D.C. 20591, 

or Allan H. Honmliz. Bnfoicenient 

PhHilon. Office at the Chief Counsel, 

telephone C202) 267-3137. lacslralle 

(202) 287^5106. enuU: 

AJlanMirvwttiafya.gw, maUtr^ 

address: AICMV30Q, 800 Independence 

Avenue. S.W.. Washln^cn. D.C. 20591. 

CUPFLBKHTAHY MnWMnaMr 

Bacfc^ound 

Conpess determined that the 

unn^UtE<l transportadon of hazardous 

materials constltutos a ihieaC to public 

safety In all forms of transportation. 

CcngrvB addressed that threat in 1974 

by enacdns the Hazardous MaiertaJs 

Transportation Act CHMTA). By 1990. 

I^ngrcsa detannlncd that i^ritectlve 

enforcement <if the HNfTA required 

more >cvere action, and enacted the 

Hazardous Materi ^ Transportation 

Uniform Safety Act of 1990, Public Law 

No. 101-615.1990 VS . Code Con|ress. 

k Admin. News 104 Stat 4605. The 

primary effect of this 1990 revision of 

the HMTA was to raise the naxSmium 

ctvjl penally for vlolittian o( toy 

regulation enacted under the mfFA to 

t25.0O0. and. for the first tbne, to 

require a $250 ndnlmum pemliy Ibr any 

such vlolatloa The HMTA -was 

leoodUiedln 1994 andisncrwrcFciTGd 

to as the "Federal hazardous material 

traiEportsUon law." 1994 U.S. Coda 

, Congtess. & Admin. News 108 Stat. 759. 

codified at 49 U.S.C. 51Dl-5i27. Iii the 

19B4 icoodlBcatlon. Congress 

speriflcally stated that dte 

. reoodlflcaitlDn creaKd no sutstuitlire 

diange to the eaarller fonn of ih« statute. 

The Federal Ctvtl Penalties Inflation 

Adjustment Act of 1990.2S tJ.S.C. 2461 

(no(^. as amended tgr the Debt 

C«ll«ccion Impnovcnent A n of J9d6, 

PuUlc U w 104-134, April tS, 1996. 

pnMrfes a mectianlsm fbratQustnients 

for monetaiy.civa p^^Ities lor inflation 

In order to maintain thedetiaivnt nflect 

of monetary dvd. pcnsiucs and promote 

cntnpUance mdth the Jaw. Uider the 

statute, the now ctvU pertalty. 

iruadniuins cannot be appUcd unless 

ihey are Implemented by regulstton. On 

December ZO. I9SC. Ihe FAA published 

a nnal rule (61 FR 6744). ImpIemenUng 

the statute for each ctvU pentlty subject 

to the PAA'a Jurisdiction. On Janaxry 

21.1S97, the FAA published a 

conection to the final rule (62 FR4134}. 

Theflral rule Is codified at 14 CFK Pan 

I3» Subpart H. Pursuant to 14 CFK 

13.305(d). the maxlrount dvfl peml ^ 

that iruiy be assessed for a violation of 

the Federal hazarduus material law or a 

hazardous material regulation is now 

S27.SQ0. 

Congress assigned the responaiblUty 

for the enforcement of the Ptdcra] 

hasanJous tnaierlal trar^^xxodoo faiw to 

the Secretay of TVan^iortatien. Wthln 

the Department of T^ansporttUon, the 

Research and Special Programs 

AdmiidsETation (RSPA) idopis the 

Hazardous Materials Ri^ulatlons 

(HMI9,49 CFR parts 171 through 176, 

which govern the transportation of 

hazardous ireterlals (HaanaO. Although 

RSP A has some enforcemenc 

responsibilities, the respcmslbllliy for 

enforcing the HMR with respect to dvQ 

avtadon Is delegated by the Seoetaiy of 

T^wisportBdon to the FAA. 49 CFR 

1.4700-

The HMR set forth regulatfcns for the 

trajBpcitaUoA of Hazmat. A lowwlr^ 

vIoluUon of the statute or of (he HMR 

can support the ass^ismerrt of a clWl 

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penalty between iZSO and S27.50O, A 

person id s Knowingly when the poso n 

has actual kncnvledge of the facts elvlng 

Ue to the \lolatlDn; or a reasDnable 

person acting In the circumstances and 

eocerclsiflgieaSDnable cai« woul d have 

that knowledge. 49 U.S.C. 5l23(a](I}(A}, 

The CtvU penalties autherized under the 

st.7tuic apply (o EACH violation o f any 

legatio n set forth i n the HhdR. 

Moreover, under the stamta. each 

ContlnutnE violation of the HM R can 

constitute Bseparste vlolacion for each 

day a vlolatloi^ continues, I n sccdon 

5124 of the sbtute^ Congress prescribed 

criminal penal DCS for a willfu l vlolaHon 

of (he Federal hazardoua material 

transportadDn Jaw or the HMR: wUlfli l 

violatlena (c<iulre evidence o f both 

krvwledge of the laws and regulaUons 

and Intent b violate them. 

Pan 13 of the Federal A-vlatlon 

Regulations—bivesUgatlve and 

EnfoRzmerc Pnnxdures (14 CFR Part 

1 $ governs the procedurfes applicable to 

cnfbicemeiCordie HMR by the FAA. 

Hasmat vfolatlims acnsTlrrg on or alter 

August 2.1990, may be dismissed by on 

adminlstrattve law Judge (ALO I f a 

Notice of Proposed Civi l Pknalcy has not 

been Issued wlthh i 2 years of the 

violation, unless good cause for delay 

ias been shown. I 4 CFR 13.20S(d). 

- ;iConslderathm «f Statutory OUeti a 

I n denamlolng the oakiKtlon to be 

assessed, penaltT criteria set fbrth I n 48 

U.s:C. 5123 must be conslderecL These 

crinsla ate ihe nature, di^umstHnces, 

extent, and Eravley of the violation, the 

degree of ciilpabltey of the rloilator, ariy 

history cf past-dolatloru. the ability to 

pay. any eCeCt on the ability to continue 

to do buslmss, and otha-maRcss as 

Justice reqtdns. iSorae of these 

consldertdoiia already are factored to 

some octem Into the categories I n the 

Hazardous Jtlateflal Sancdon Guidance 

hbbrlx. The statutory factors are further 

considered under the -weighting an<4ysls 

(hat Is iwifouiied to IrKllcatBthe amount 

of cfvll peni^y withi n the appropriate 

range. Le . at the minlnum . moderate, 

or maximum portion of the sanction 

range. To oanqply wit h the underlying 

purposes of the Federal hasandous 

material transpoKatlcn la w and HMR, a 

saitttlon should be imposed that is 

suIBdent ^ detenent but not esccesslve. 

H i e Hazardous Materials 5iv>ctloa 

CuUanoo is designed t o promote bener 

consbtcTKy so that sirnllar penalties ^XK 

ImposnJ In similar cases. Th e Matri x 

inges are Intended to i^ec t the nature, 

circumstances, extent, and graviQr of the 

•jsc a> coiDpared wit h other types of 

cases. Each case, However, muse be 

evaluaied on Its own faciz. A sanction 

may differ Aom the Matri x ranges -when 

the fact! and circumstances of a 

suppon either a greater or lesser 

poutty,. When a special agent believes 

that a pmalty should exceed the Matrix 

ranges, iihe agent should oortfult wld i 

legd coiinsel before further pttteesslng 

of the Einforceinent InvEsHgatlve Kepan 

(EIF^. Tills consulladon b not necessary 

In die aise ofa recommended penalty 

that Is LESS than that provided m the 

MaM x In eldier sltuadoa the basis for 

Ihc decision lo go outddo the ranges 

should be explained In detail. 

Violaclons of Part 1 ^ of the HMR. 

which eiitaiblish particular r^ulremenB 

for air carriers and other alscraft 

operaUTh a n contained In a separate 

nuirl x Kowevcr, such opnalras often 

oScr haxardous materials for alx 

trunporaticm. as weD as accept and 

trab^pori;them. For dils reason, such 

opoaipni may be Uable for vloladora 

bothaaa business entliy withi n Ihc 

Hscardous Materials Sanalon Guidance 

Matrix, ai-well as specific air carrlor 

-vlolatlcm. 

Use af ili>e Sancdon Guidance 

This guidance proi>ldes agetxy 

posonneL wM i asystematic way h> 

evaiuato a tatse and arrive at an 

appropriate penally, considering aO the 

relevant JtatutDiy criteria Including any 

nthlgMtng and aggnivattng 

drcumstanDs, StMutory nmsldoattons 

h«ve been Actoied Into tiK various 

rat^ge* wllihln the Sanction Culitance 

Matrix, DiitennlnaUon of where a 

sanction Ilea withi n these ranges is 

aided by a scries of w«^tln g rjuesdons 

d0t pn4>e: die various ag^vvatbif and 

mitigating faenxs that may eds t In a 

Fbtt. thft wdghtlr^g analyals is 

perifannad. Agcn ^ persorutel respond 

toasericB of <piesUons tedeiennirie the 

vpegata ^velghtofthe case, Ih e 

ag^cgatH vvelght of the case helps 

dettrmlne the sanction amount of each 

vtoladon group withi n the established 

rar^Es of die Matrix. 

It Is Impulant to noie dtat 

determlnadon of where die sanction lies 

within the,Matrix b rvH the rvid t of a 

mafhemadisJ computadon. Bvaluadon 

DT the case Is based on die totality of dM 

J^Kls and circumstances. CoMrally. If 

the amwo-lD a particular question 

represents « more significant aspect of a 

case, greater constdoadon shoold be 

glva> lo ihai answer. For viami^e. 

violations Imrolvlne an extremely 

dangerou^substartce. «vo i i n robiuie 

qiantldes, might warrant a penally at 

the maxtitium end of the range or even 

a penalty exceeding th t Matrix nntaB. 

linder the SaiKtion Guidance Matrix, 

agency persisnne) detcnntne the 

category of >1ota!or the person fells 

-within (e.g.. business entity that 

regularly ottera, acccpb, or mnsi>orts 

Hazma^ and the offense category (e.g.. 

Undeclared shipment withtri Hazmat 

quantity Umltatfons). The sanction 

ranges under the various violator 

categories take bito account the relative 

ciilpabiUiy of die violator. Similarly, die 

oSTense categories address the nature, 

drcumrtanciis:, and gravity of the 

particular offense. After deeondnlng the 

qipropriate categories and intenecting 

box of the Matrix, a^enQr personnel 

tha i determine which cubcsieeorks of 

oSinses (e.g.. ^ppln g pi^iet^an : 

alleged to hxve been violated. Based on 

the weighting ana^ b performed In 

Section 1. an appropriate penalty l» 

assigned for eadt of the appllcafale 

vloladon groupsL The penury amount 

for o ^ t^evant violatiDn gmup Is 

added together to reach the 

lecoirunended sanction. 

Under Socdon IH of die Guidance, the 

special agent then coRsIders odier 

relevant CKtors. includtng evideixe of 

comcthre action. A lecamivended 

sanction may be reduced prior to the 

Issuance DT » Nodce of Proposed CM I 

Penalty when ttiera Is ado^raa reliable 

Irdbrmatlcsi concerning the ootrcctl've 

actions tdm i by a Kspondeiu. 

Ccneetlve acdora that JiotUJr reducUon 

of die reoMnmended penalty must 

exceed the minimu m legal 

requlientents. The special agent also 

attempts to provide Information 

oonocinlng the alleged violator's size, 

flnazwial'condition, and ablH^ m pay a 

rtxzumocxided sanction. 

'VVfaen an EIR is forwarded ID legal 

coimsel for eidbrcement actloa counsel 

with gKe apptoprlstt consliicratlon to 

die recommended sancdon, FAA leptl 

coimseJ w m also review the £aanrs. 

analysis, gind dctenolnadona under the 

Hnardoua Matetiaia Sandlon 

Guidance. Any basis fbr deviating Emm 

Ihe i«m»inmei><J sanction Is atdlnarfly 

eq>lained m , and discussed -vrlth. the 

lavTitftgaHrjgspecai agent Final 

determlTiatton o f the sanction amount 

proposed I n the Notice of Pioposcd. 

Clva F>aulty Is ordinarily a product of 

Joint d^lsoxudBldiig and approval of the 

liP'esttgatlng ^gent and die le ^ oillce. 

Fedoal Aviadea Adialnisinidim 

Haaardoirs Materials Sanction 

Gfddanck 

This Sanction Guidance Is divided 

into three sections: 

II. UtUlxatiain of the SaixUDtt Culdakce 

MMTIX (Matrb). and 

nr. Cwisldcntlan at othtr Btaancty Facttn. 

The Sancdon Cmdance MaOtr is eorvuined 

In Flrurc 1 and Ihe Risk C»te{vri» are 

corHitned In figure Z. 

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I, Cave Analytb (^valuation of 

6ia(ulory AuesimBnl FoctaMs) 

This socUon contains a series of 

questions designed to assist special 

agents and attorneys In evaluating a 

particular ase . The quesdon review 

factors Invohing the nature, 

clrcumsonas, exndu and gravl^ of the 

violation, the violator's degree of 

each applicable vtoladon group on the 

Sancdon Guidance Malrlx (Fig. 1). 

A. Tho NatuiK, CirTxanatanats, CatcnC 

and Grsf/ity of the Vloladon 

CPactns Concerning the Shipiren^ 

l.vniatMatGrialf») WasOftered. 

Transported, or Accepted fbr Air 

Tian5]pt»tadon7 

^ cuIpHblllty, uid the vlobttor's history of I (Ftgure 2 divides hazardous manriads of 

J prior-violations. Sonne of these factors ' perdcular classes, divisions, and 

^ are already considered to some esctent 

within the various categories of the 

Sancdon Guidance Matrix. The 

questions In ihla section provide 

additional ojosidaatlon of the scatutoiy 

factors- and comlne the existence of 

aggran'atlngaiid mldgatlng faram^ |j> a 

The agenc/Bittom^ answers eacli 

question In Section I and determines if 

a restive weiglit of mlntroun*, 

moderate;, tr maximum should be 

assigned based on the response to the 

({uegitlon. VUdi the exception of 

Quesdon AL. not all questions will 

apply to a given fact sltuatteei. Question 

A. 1..'Which addresses the hatiBe nf the 

hazsridoiffi uterial ^ tnvohredl ts ttie 

only question that alwaQW receives a 

,."ys'' answer tp one of Its s[ubquestlons 

and IS coosldeted In every ease. The 

. agp^vadng or mitigating fbctms 

tddressed A dte quetfonn tsnly apply to 

die as e when the question receives a 

-yes' napowe. Qi^tlonsreceiving a 

"rw" response do nwaffe a the 

weighting of the case and are not 

ronsldered. Fbr egomple, If tfie violation 

resulted 111 hann to penon i or property, 

that may bean eggravadng ^Ktor In the 

. case. However, the fact that the 

Violation did not naul t In uyury er 

damage Is "o'^i imtlgatli^ &ctor and 

should not roult tn p^nidty mldBation. 

In roany lnstanf:e». the answers to-nxist. 

or all of the questions will he "no " and 

the only relevant weighting factor in 

this section wtil be the risk category of 

lim material Identliled In Question A, 1. 

In delemlning the final aggrepte 

weight of the Gasc. the lespanses to each 

of the quesdons do not have to be 

equally considered. DeteminatlDn of 

whether the overall case should have a 

mtnimuai. moderate, or maximum 

weight canaot be detomlne d with 

maihcmadal certainty. Cencs^Iy. If the 

answer to a question demonstrates that 

Ihc fictor at Issue represents a mor* 

significant aspect of the case, greater 

^onsider^tlDn is given to that Factor. The 

-Inal oggf^gitB weight is based on the 

otatlty of (he ficts and clrcusrutance? of 

Jie rase. Once determined, the final 

sfpregafc w«ight to tften utUited to 

arrive at tlie recommended sanction fnr 

paddng ^«up s Into three risk 

categoric::; Categoty A. Category B. and 

Category C. Find die material^)) at Issue 

In Plgiire 2 and answer the quesUovis 

below.) 

a. b dK materlal(^ oBSered. 

nanspBrted, or accepted In Cate^wy A? 

If yes> assign a Maximum wei^L 

h. Is (he matEslalQi^ oAred. 

traospixted, or accepted In Cateany B7 

Ifvet, assign a Moderate wd ^ 

c-1» the inatbrlalfs) oCixEd. 

transpaned. or accepted In Catcn y C7 

If year, aslp i a Minimum we ^ 

CoHnaee Note: The categories In F||i»e Z 

rcpt«*<nt die Inherent lUk (^daf^tr to ^ 

transpatarioo peaed fay tha iBaleriiL inhere 

I3 more thvk one type of hnattkaviiMierlal 

involvBl In lh> shlpoem BiBwer ebb 

•jiKsnoni uslr^ dm tnardnnimtcrial In the 

Z Whal: Quantity of d»a Material(s) Was 

Oflened, Transperte^t or Accepted fcr 

Air Ttajiuponadonr 

a. Did the packagiefs) excci<d the 

authoiiSEed quantity UmltatlDns by a 

s(0ilflaanr araouni? 

If yes. consider « Moderate or 

Mudrntm weight dcpoidlng oo the 

degree to which the UrtdtaUon was 

excisedcd. 

G^dance NoteslheMatnc abo^vtf In 

Section IE takss incoaccotax the fanned 

•Ibuaani wheio iha nit^tOty tlnataUsaB .Ibr 

the material arc excBHjeit This patt of the 

inalysb ii intended to detamtn* vrfcdier 

Antho-asywadng cuvumsianQcs «cia 

where vrantlty Umtetions are BBxeded try a 

sipdncuitnmoum. Wbethar thb fhoarlt 

asslpial at moderalB or msdiram we%>a win 

depend Oil tlie degrtx by whKh rha qtiMtlty 

UmbKtot was exceeded. 

Eara^K The quantlQr Utaltadtn fix 

gasOUrw en a passenger plane t* 5 liters ptt 

pacliage. If a vlelatrv ollien 30 iJtBs m a 

stngle padlE^ge en a paoenpr plane, ihlaiiay 

miilt In a moidnaani vrcigM ftrihls beiix. 

b. 'Were them multiple packages in the 

shlptiKni? 

If yes. cnnsjder a Moderate cr 

Maximum weight. dei3endlng on the , 

number of packages and total amount or 

hazanlotec material being transported in 

vinlatipn, 

Caldaixc KMc: A padcage means • 

pfickitgmg |>lus Its cuiteiMi. There jitay be 

multiple padraQCJ In eno shipment or 

overpack. Multiple paduges often repraaent 

multiple violailons. Under the Sanction 

CuMance. ihls 6CT Is considered an 

ucpa'atlag drcuiraon^ liihcr diRA • dlrvct 

•nuIUpUer of die sancUon for euA vMauan. 

Each case, however, must be ci^luated oi« Its 

panioilar ftds. A voy brgemunlier or 

padcages may rendt In audi anegrcgtous 

BK Uint the owall weight of the case ts so 

high ibac a pcnalQT bqivid the jnaxlmiun 

point in the t«nga h wamnted. 

An lik««iigadim will oocaalMtalhr iwcal 

several sMpisenia from the same oAfor ever 

a period of several dm , all of which involve 

vlolaciona gT die HMK. Thesa btdependa It 

aos of offiorfaig usually are oomolldaiBd Into 

one UR and «dAc3»d fal one Note itf 

Fropoaed Ctvll Panal^. HowevB. b r 

purptfea oTdettmilnfric the appropriate 

MOtaioa, odtapaiaBB ohlpmentwiUY a 

acpataiealrwajrfalll or shipping papen, . 

separate dcsdnacion. and/tr irry other 

svicknM B4s>Ulshtaia leas a. npuaia 

shlpa»xl»e»dhMrUyoonsldeicdBa a 

tqaKta toddent for pfxptses tif applying 

Ihe Bwvctlm guldans analysis. Ik la 

ruSBBSied that the icparate shdpMna be 

treated as Individual corns In d « EA arid 

theKoticeflrFk^)pasedcavil ?fenailty,-wjth . 

each count havkig l» own sandton derived 

(has qjpUcanon of Oils jMldanx. ^]olB. there 

must be suffldent evlihazs to supp«rt ca ^ 

3. Did the Shipment Cause Damage or 

H a m to Persons rir tVoperiy. or Interfeiu 

'With Commerce? 

If ye9„ ooreidBr a Modcnte or 

Majdinum wel^iL 

: G«ldaBcaNB<eIlM£KtihE«aqda9BaGB 

oooated as a result of OM shlpcoax la not 

• mltigadng Cicttr. However, damage or hanii 

tn^y ag^a m dw nAire, CbcuBistDKCS, 

eitaib and iravlty of the viebdon. 

Depending eit the dtgiea of (temage caused 

by dwshipnicrrt and/or dte cBdstancBDrothET 

anravatbvlaccnra. dqianuto fima the ranges 

A. Uoiamr'a Degree of Culpability 

(Ihe Matrix, fleure 1. cnnsMers the 

relative culpebUlly of the -violator. This 

section of the analysis further evaluates 

die degree of culpablll^ of the vklator.) 

1. Is the VloIolDr the Manufacturer of 

the Hazardous Material? 

Ifyes, consider a Maximum -weight. 

rwMwnrt NotarAmanufccairtf i/o 

hazaadous raatetial Is emeeted 10 have 

ootDpleiahnuwiec^ecf die nature of die 

liBaBdcusnMttarM and thia, a high <I>qgtTe 

of cuIpablUiy wiO ordlnertty be Imputed ID 

It 

2. Did Someone Other Than the Violator 

rn!j>are the Shipment for 

Transporiatlon? 

If 3res. consider a Minimum ot 

Modoate weighcCwtdttioe Note; Facta s^vperting an 

afllnnottve ans^'cr to (hlv ^esdon m^y be 

cause to mldKatc culpabillc/ «iyl/ur pumie a 

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.Separate enfoicezDenl scclun against ether 

responsible parties who handled the 

^pmen c A shipper that tashipa materiab 

ecEivEd ftoni ani^iier person In Oia aame 

,>ac]aglng li indeprndendy roponslble for 

eiuiBlng the shipment corrpUia with the 

HMR. Ncvenlielen. the rcshlpper ts 

generally cocddlBed lo have a lessix degree 

of cMlpit^lV Ibr nttrpUance OTIIB! padcage 

23 reteived.Koweyo', If the reshtpgpcr 

unpacks and^er nqtackages the shlsmcxit, the 

T^siiipper iccialrH as culpable as the orieliiai 

shipper and jaienDy Is not accorded 

mlticatien imlerihia weighting racter. (For 

pwposa of thia section, a "rerhlpwi" nAis 

toa pa3un><'dier thanlbe wricbml ciieror, 

who ofibn a ahlpmeiu arhassrdeui macorial 

rof ri*ii.^|w>ijitRtfi.| 

3. Did the Vlolaior Seasonably Rely on 

byjutipct mformaUon From Another 

Souita? 

If yes, consider a Minimum -weight. 

Ciddance tfeltfDcMnMnc^ nr reasonable 

reUattoe on motherpaiq'may be a mltlgatiiic 

factor wteioMoided'ig (he vldator'adE^is -

of culpabOl^. Fcr example rellana sn ar 

Inaciairaift Material SaAi^ Dau Sheet (MSD^ 

nay be mitigating. 

4. Does the Violator Hav« a History of 

Prevltrus HMR Violations? 

If yes. consider a Moderate or 

Maximum welglkt 

«?iil-»"~-» NoecTo otabllsh 3 violation 

- lifaouiy.apriarvlAlBttoiiiiiiHbeanBctuBl 

IrxttngofvlBbeian purvwaaa to a legal 

atfbrtemerxaeuoik. SpMlal a^KS should 

attcrta'^ ta dctttfolne Ina cv^''*rta r^irTtiim 

of tfia violatir vid whether odicr bualneB 

enUtlea rx nanKs we w have been used by 

the entity ID order to obtalr> a coiixilctt 

. -violationhistory.Thenianberanda^er 

vlelatlona should be oimliliinl, OMlliMihr, 

, finding of vtoladnn mete than 5 y^»Dlrl 

cany less-welglit. unliBi B cOfSlnulr^ paimn 

of-violation olsb. 

C. Other Factors 

Each case must be evaluated on m 

particular bets. As SUCIL maiiy cases 

may present uiUque scenarios and 

aggravaO/u or aiUlBitlng factoara that are 

not roudndy seen. If an agpavadng or 

rtdttgaUng ijrcunidance exlSO tlut Is 

ntx adequately addressed elsawhere In 

the sanction guidance. It may be 

included and assigned a weight under 

dils section. The factor should be clearly 

IdBntifled and explained in the analysis 

portion of the EIR and carefully 

sorutinlzxd by legal counsi^ 

CuUaao NMEFOT ej^npH, • afa^anent 

DF a single package oentalneAg sevcnl 

dlll^rcix IiaxBideus materials may pnaai* an 

aE^Tvailiig foaor. TTie depcc of seriousness 

W this EiCtcr will Increase If Ibe haevdous 

tnatcrlals are Incoai^aatiblB -wKh t«di otfKcr 

ind, iherefbia, create an increased rlslc 

' MlUfaling Actors may also axtaitKil have 

not beeri adeiiuatdy oorBldcred, Per 

«xainple, a shdpnicnt ontatninga de mlnJints 

quantlly o t matetlBl la-BO aiBDunt th^-would 

hSMC qualified und«T Iba amall quantlqr 

e«oq>don ofi ITX4 any pieretn a (Biug^Ung 

raetsrlf as a icsuk there was a reduced risk" 

to M'ev in transportaUvnD. DetertnliK the Final Aggrciptf 

Weight of the Case 

All the responsas/weighls are 

evaluated to determine a final aggregate 

weldit of the case (Minimum, Modvate. 

and Maxlmund. Qut^Ions receiving a . 

"no " rcsfionse win not be Included In 

this evahjiation. To detemtlne the final 

aggregate weigiit. the a^nt/atttxrwy ' 

mtBt exercise hla/her discretion In light 

of the stannary ftdoca and knowledge 

of the parttcuiar facts of the case. The 

&cts of thiB partlciilar case will dlaate 

the telath« Impoftance of each ol Ae 

weighting; fkctocs bn reaching • final 

aggregate-wtight The Bital aggregate 

-weight should be decided as a lesult ef 

rareiiil analysis: TKXa mathematical 

Avet^glns. It is possible diat a single 

weighting &cter may outweigh all 

others. Ttiie qent/BHnmey'a analysis 

should ahvays be etplahnd In this 

nBganL. 

Esannle: A lase IhvDtvlnga haoanteus 

maOslBl In the lowest risk caegMy mqr be 

evaluated to hava a HBsruiMm we((|ht 

because of idiB lam quatxlqr ahlpped er tlte 

damage rwultlngaoni ttiesldpinenL 

IL UdHtt fbe Matrix (FlgnrE 1) 

The sanction ranges titxler the oBerar 

and (dTenstt categories of the Sanction 

Guidance Matrix reflect die relative 

culpabllltjr of the violator and the 

nature, ^cumstances. esnent, arxl 

ffcafVlQr of the case. Conslderatlan of 

these particular statutory factors under . 

the Federal hazardot« maierial 

transportation law Is built Iniis the 

Matrix. Funlicr analysis cf the stahitoy 

bctois Is required tn determine the 

appropriate sanction -within the ranges 

BtahUshed under the Matrix. Thb 

analysis Is perfomwd In Section 1. Alter 

determlnlrig die final agpegate weight 

ofthecase undo-the Section ) analysis, 

d u t welglilt Is applied to the appropriate 

mattix range to Identify the 

rc^nmmenided sanction amoimt for each 

of die relevant -violation groups and for 

Ifie case as a wfiole. Although the Notice 

of Proposetl CtvU PorMlly may dt e 

nuonettms irlolattons ofa pvticular part 

or subpart of the HMR. unlms tqiward 

departure Is Jistlfled, a single penalty 

amount for each violation grmip Is 

ordlnailly used to reach the fuu 

sanction. 

A. InatructSons 

I, Identify the appropriate catte^ory 

for die type of entity and the nature of 

the ofTiinse Involved In the case. Refier 

to the Deflnitlorw Section that follows 

the Matrix In Figtiit 1 for guidance. Co 

to the IntETsectljig box and Identify the 

applicable antrUon range for each 

violation gitup. 

2. Apply the conclusion reached in 

the Sectioa I weighting analysis tn 

assign a sanction amount wlihia the 

mlr^tenum, moderate, or maximum 

porUon of d 0 sanction range fbr isich 

relevartt vlobtion BTOUp. The 

recbnimended clvu penal ^ at dtis stage 

Is the sura of the sancttons for each of 

Ihe applicable violation ptnips. A 

sanction should not be assessed for a 

violation tfoop if there have been n o 

violations of diat part or subpart of the 

HMR. The mnctfon amount for each 

violation pru p need not be Identical 

but ordlruEfly is within the portion of 

the portteular sanction range that 

represents the iTtfetaD-weMitiaf the case. 

3 . Dcpaituie front tha MaCilx ranges— 

TheMsnifx is defil|p>ed to cover the 

ma^orl^ of cases invotvjng violatians of 

the HMR. The lac b and CUcinnsrances 

of a pnrticttlar case, however, may 

Justify eidicr an upward or downward 

departuie from the Maerlx rangee. This 

sanctlDn gmM^ncs anticipates and 

eiKeurages departitre bmn the Matrix 

renges when JiBtlfled, A case involving 

vloStdons In whldi the natun, 

drcumEciances. extent, and gmvlty of the 

Incident are partlciilarfy sevoe or 

egregldus. may justify upward departure 

fitnn the Matrix. If the Irrvesdgatlng 

agent believes, based upim die Cats of 

a case, that a penalty should ensecri th e 

Matrix ranges^ Ihe ageit should consult 

with I^a l counsel hefore fiather 

processing of the EIR. Conversely, the 

lixvestlgatlng agent may believe that 

mltlBatti^ bctors Justify a dowmward 

departure fiTMn ttis Matrix range. 

Cansnltation with le ^ cotmsel Is not 

neces^uy in die case of a recnmmcnded 

porialiy that is less than that provided 

In die Matrix. Xh ehfaersltuattan. 

howmrer, the a|^nt Is ID peovlde a 

detailed explsiatlon of die bvls fbr tha 

dcidslon to go outside the ranges. 

4. Vloladcna of Part 175 rcguladons. 

which cstabtbh perticute- re(|u[rements 

for aJr carriers arM other atrcrait 

operator?^ are contained in a separate 

tnanlx. However, such opoaacxs often 

offerHavnat for atr traneportation aa 

well as accept and tianspait it. As such, 

the opcntor may be Uable Ibr -violations 

as a business entt ^ vrichin die main 

Matrix as well as for thespccUIc Parr 

175 vlolatfons. 

m . Impact of Other Staturmy Factprv 

The Federal haardeusmaiertal 

traDspartatioB law ab a requires 

consideration ofa vtolatar s ability to 

pay a ctvil penally, the impact of the 

civil pena]t)r on the -violator's ablllfy to 

SSO/L2OI0 SWQ VVd 2tLSeGt20S XVd 80:L L OLOS/GL/O L 
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c Federa l Reg)$ter/Vo L 64 . No . TG/Wednesday . Apri l 21 . 1999/RuJe a an d Regulatton s 1944 7 

innUnu v to do< bislness , an d other 

matters that Justice requires . 

•Consideration e f these factors ma y 

result i n adjustment o f th e 

recoimncnoe d civi l penall y <alculate d 

i n Sectio n IL I n sltdatfons wher e di e 

agent o r atbine y ts i n possess! oi t o f 

tnitlgatltt g Informadon , suc h as Inabilit y 

t o pa y th e recommended civi l penaB y o r 

cntroctiv e action Qkcn . reduetf o n o f di e 

recomnsended penalt y ma y he 

appropriate. Mitigatin g Infhrmstio n 

shoid d be sufficiently reliable, 

uncontroverted, an d documente d t n 

artie r t o support reductio n o f th e 

reconunende d civi l penalf y prlo - to 

jsstdn g thcNoHc c o f Propose d Civi l 

Penalqr. 

A . AbOit y Tb IFVyivContlnuD I n Buataess 

Hlstorlcaliy , ih c FA A has cnnsldere d 

these factn s BftB-the Issuance o f th e 

Notic e o f Pltpese d CM I Penalt y du e t o 

t h e absence o f rdlaM e Bnanda l 

mformaflo n o n whic h l o base a 

Teductio n fstor to th e issuance Off a 

Notice . T w Sanctlc n Gtilcbnc e 

reooimnend i tha t the specia l egesd mak e 

^fort s t o obal n rdiabl e IrdionnaUon . 

regardin g the -vtolorrx-'s siz e an d 

finands l conditio n for revie w prio r t o 

.the Isstmn a of a Notice . Thi s 

InfamiiitlDn WI H he ttansmlBe d ta th e 

. lega l offic e for ainsideratlon . I t l a 

njcognlae d ihat i t ma y no t alw^n s b e 

passibl e for th e jpeda l agen t aiid/'ar 

BtBomey t o abial n reliabl e finaqcla l 

InfotmatioB o n a pardcida r respondent , 

that ilriEuicIal clrcimstance s change an d 

(ha t tnfornuao n ma y be pnTvided aifbcr 

t h e Issuance o f di e Notic e that rru y 

wanan t fLmhcr caaa^ldeTaclen o f a 

respondent' s sblll ^ t o pay . 

I- The; lnvBsUgating agent wl U attxmpt 

to Includ e financial InfbnEaUoD as a n 

exhibi t i n the EIR. I t Is antic tpafed that 

tills Izifonnution. i f available, wil l be 

obtaine d fiom reliable financial data 

bses . Filnanctal documentatio n shoul d 

Include^ but need rxic hie limite d to, 

Inftemallo n concerning the vkilacar's 

coipont e structure, business aiUress. 

officers , numbe r o f employees, an d 

gross revenues. 

2. Th e investigBiUng apai i provides a 

statemeiiit or commen t wit h respect t o 

t h e financial InformaUo p obtained hu t 

ordlrwril y does iM i evaluate the 

financial conditio n of a roponden t wit h 

resp ^ n> ita ablUcy (o pa y a proposect 

civi l penally . Th e Investlgstlr ^ agen f s 

statement slioul d encompass trees suc h 

OS th e numbe r o f employees^ pes s 

revenues , an d Tiattre o f bualnes i e f the 

violator. 

3 . FA A legal counse l reviews the 

finvKla l Infonnatio n provide d I n th e 

EIR aix l crvuluaiss l b sidBdien ^ and 

relevance to the recommende d dvi l 

prnalty . IjEgal counse l ma y determine I f 

mor e aixres t Informatio n exIstB 

cor«:endngtheAnaiKialcondltitxio f 9 . 

rcspomleint an d IT tfiat Informatio n 

substamlaUy dCSti s fiwn the 

inromnlio n avaUable at ih c time o f 

prepatnlo n id'the EIR. I f there b a basis 

f o r delenxdnir ^ tha t th e lecommavdc d 

sanctio n l i inappropriat a bse d upo n 

t h e flnaincial Irdomatio n nrovjde d I n 

r h e OR , di e recornnerxle d sanction Is 

adfuste d prio r t o Issuance o f th e Notic e 

ofPropost d Cjv u Penally. Thl x b • 

piellinlnaii y consideration of a 

company' s abilit y t o pay . A s such , pre -

Notic e adiustment of a recommende d 

d v U penalt y ilocs no t preclud e further 

MATRRCAN D DERNmON S 

(F^B»1 ] 

consideration of a respondent's 

financia l claim s after Issuanoe o f th e 

Notice . 

4, I f legal counsel detsmine s tha t a. 

respondot t qualifies as a smal l busines s 

entity , counse l na y oonsldcc tha t statu s 

unde r the Snai l Business Regulatot y 

Oiforcemen t Fairness Ac t {SBREFAJ 

wii h respect t o Ihe appropriateness o f 

the recommende d civi l penally . A 

respondent' s status as a smal l busines s 

entic / tnay be cbnsldtie d i n conjimctlo n 

-with analysi s o f th e stihitor y factors . 

A Corrective Astio n 

T h e moBC comino n "other malter" tha t 

t h e PA A takes Int o conalderadon i s 

aarcetiv e actio a Oxreetiv e action tha t 

result s i n iikltlgatton Is remedial actio n 

tha t exceeds in e rnlidnta m legal 

requltemenis . Th e prinai y factors I n 

determlidn g th e appropriate amoim t o f 

penall y xcductie n arc th e eadent an d 

tunin g o f the CDitective action. I n othe r 

wonls . ndtlgaao n 1» dcttmln e J o n th e 

bosk i o f bo w imxj i corrective actio n wa s 

take n an d ho w quickl y th e action wa s 

taken . Systemi c ^an ^ inb»de d t o 

peevent futta e -vloladoos ahoiild be 

give n greater constdentton , Similarly , 

oorroctiv c i^o n that commencEa upo n 

t h e vlolatnr' s B m notice o f the viol a tio n 

onflnarU y Is gtvc n peate r credit tha n 

correctiv e actio n that commences onl y 

affasr Ih c Nott a o f Proposed Ctv n 

Penall y has been Issued. 

Mitigatio n of a reoommended clvi ] 

penalt y based uprn i ceerective actio n 

shoul d bexefiaancc d i n th e Notic e o f 

Fnjposc d CtvU Penalt y so th s di e 

le^onden t I s o n notice that credi t 

alread y has been give n for said action . 

tXlEfiae cxiagoiles 

I. Declared Shipment: 

l> 6l<'pi*"U Sapors.»...—.. .•»._ ...__ i...„_.. 

2 . txbeja —...,.•; , 

3. Marttv * ••.-' _-..-.., ^._,_„..„ _^.^__ _ 

4 . nKSoglng „„.,_,.. _ _..„_...„.^_.__... _ 

5. TiaMng „,._ , . ... , ,„ , 

a Bno)? FkEpomo .....M^>N,. 

7. Reioase Into Envfton _._«_. . 

fL itmSoOaiti SN^en t Within Hazira! oinMRy UmKaSpris: 

1. Shipping Pepors 

2. LabBh _ „ 

:. 3 . Marft|n|]r ,__.„,..», . 

4 . PachOBlng ,„ ,_.... 

5- TtaWnfl .._.„ „ -.. _....—,„,„„.._..„_,., . 

9. Emer^ nasportse ._.,. ^ «._.._....,_,„. 

7. IMaara M o CrMron , , 

fl. Oiher.„ - „ 

A VMMduBl 

2SO-500 

aasM 

2S0-5W 

2Sa.6D0 

Z5IV400 

B. Btmrtess enlily 

250-1,000 

25O-t,DD0 

250-1,000 

250^,00 0 

zso-i/no 

250-1,000 

2SO-1,000 

2Sa-T,0DD 

29>>1,000 

SO-1.00Q 

250-1.000 

250-1,000 

2SD-1.000 

2SO-1.000 

291-1.0 M 

1,60l>-7,500 

I.SOO-7,500 

1.5Q0-7.5I)I> 

1,500^,600 

1.50O-7.500 

1.5C»-7,500 

IJOO-7,500 

I.EOO-7,500 

C Bualnaa anfliy 

vntuse e orhaivdies i4annet k> 

l)l» course of buai500-2.1)00 

50D-Z.0O0 

no-e.oDo 

500-2,000 

50O-2.ODD 

500^,00 0 

5M-e.O0O 

2,SCXk1DjOOO 

2,500-10,000 

2,RX>-10,000 

2.900-10,000 

2.S0>'1D,m> 

2,500-10.000 

2.500-10,000 

2.500-10,000 

D. OuBktass erynty 

matragi^My o(-

ters, accepts, cr 

(ittopofls HasTfol 

1JWO-8L000 

1.000-«,000 

1.000-5.000 

1.000-5,000 

I.OOO-SJJOO 

1.000-C.OOO 

tjioo-cooo 

1,000-5,000 

5.000-12,000 

5,000-12,000 

5,000-12,000 

5.00O-1Z.OOD 

5,000-12,01X1 

5,000-12,000 

C,00O-12,0OO 

8,000-12,000 

sso/sso® swa VVd S1?LSSG1?S0S XVd 80- U OLOS/GL/O L 
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1944 8 Federal Begtoter/VoL 64. No, 76/Wednesday. April 2]. 1999/Rule5 and Regulations 

MATTIIX AM I DERNmoNS—ContirHiod 

(ngure i ] 

OHgnse categorios A wWW^lOUtm 

ni. Undedand ShtaiNBil Hosmat F^oiblddan en. or excacdr 

<iiy units tsr. Passenger Atrcfslh 

1, SMpplna Papers „ . 

2 . Label s a.^.U.M. . ..«....—.n.aH.........^....-......—«..»... . 

3, wartAipi 

4. PBcMghig 

s, TiBtnfag ......_._.M 

B. Emerg. Rmpensa.._.. 

7, RelDaBB IMo Environ . 

a. 

nr. Undbdaiad SNpmnni Forblikten on. er aceeds qty hrAi 

lor. MAktralt 

1. Sh^pbig PopcB 

ZLaboh 

a Mvldngs _, 

4. Padtaoiiifl. 

&. Tlslnhg 

e. emeit. flaspDnca. 

7. HoloBse Irlto &n1/ix>. 

B. oner . 

V. InlHtUcaiaf or Delberato Vkilaflon 

SOO-5,0QO 

50O-«,00O 

500-B,0DO 

soo-cooo 

5D0-$.O0Q 

$oo-e,ooo 

S00-$.000 

900-Z7.900 

50O-27.S0O 

500-27,500 

S00-Z7.S0D 

"S00^27,SOO' 

5DO-Z7,60(» 

6oo-er,5DO 

Cttnsuh lesal 

B. Business cnfiiy 

C Business antlty 

Dial uses or handles Homiax to 

the csu^e of husrness 

S,00O-M,0t>0 

5,000-15,000 

6.000.15,000 

£.000-15^000 

5.000-16,000 

5,000-16/000 

8.000-15.000 

E.OO0-1$.00O 

isv>-zijsca 

jjsen-etjsoo 

7,500-27,500 

isoosajsaa 

7.50D-Z7,SD0 

7,500-27,600 

7,500-Z7An 

7,500-87,600 

ConeuH tegal 

7,500-80,000 

7,S00>^.000 

7.50»-fl»J00O 

7,fi0Or2O,00O 

7,5DO-ai>,0OO 

7,600-20,000 

7,500-20.000 

7,50O'2O.Q00 

ia0D0-C7j5ao 

10l00O-Z7,S00 

10^000-27,500 

10.000-67 jm i 

10,000.27,500 

101000-27,500 

10,00O-27j5Da 

10,000-271500 

ConsuB (.egal 

Di Buckwss enNty 

thalraflidaily of. 

fata, accapfa. Of 

tnnsports rtemat 

1O,D00-27.SO0 

iaOOO-27,500 

10,000-27,500 

IEI.OeO-^,,500 

I0j000-27,50D 

IOjOfla-27,500 

1Oj0O»-Z7,50O 

10,000-27.500 

1SAX>-Z7,S00 

15,000-27.500 

1S4>00-27.5DO 

15,000.47,500 

15,00(^.^,500 

15j000-e7,600 

16JD00^27J00 

iB,Qao-3r3oo 

Centuk Legal 

Air catfer and otier ofrcisll opiMBlor vioMona 

£.^» p I « 11 Bir 

canfefs and ottier 

airisag oparatnv 

wt Lajilars and 

dhar aiieniff opor. 

. FBilurs la compty eflh Paria 171, 172, or 173 reqirindreiib of the HMR ea an oHeior oT Hazmat.-.. 

impiP|>ei' aeoeptance ef Haarvt tar afe- tar^tI«rtalk)n ((.a., qitfutiy. .labaBnB, nsyMiQ, padcesfeia anil 

sMpplnff papers) See «S CFR 175J0(a) nH^V 

FaBMe to k>9act Hazmal SMtanait preparty. See 4S CFR 175.30 (b). (c>, (dK (•> 

Irnpitiper tlprapefoi*u<1np of hbzmat sboaKd almalt—,.....>.. • —..,-i.y... ____„^_MI- » 

|=eBure h> p(oyi*i Hazrmt iralnlnB. mointah leeeidi of balnlno. or me ^ nilnlmvaii fa<]t4iiHmnls tif 

HavnM baintfio -_..^»... .~- ,-..—-., , _.,„,>—.—___„._... ^ , .....i.— 

Faihin to rwVy FAA property ef {nddersMserepancles in Herniat shipmant . 

Failure to pieiMo nefce to fi e pdeA-^iMMnrikand.^^ -. ^.....^ 

Other PBfl I'S vIolaOena .,—- _ .—. , , „ 

5.000-7^500 

1O,00O-27J5OO 

10JXM>-^.500 

10,DDO-Zr.5OO 

5,000-15.000 

6,000-15^000 

^000-15.000 

( 

2.5OO-15L000 

5,000-15,000 

5.000-15,000 

S.DOO-tSjDOO 

1.000-6AJD0 

1.000-5,000 

1,000^,000 

1 U«e mah MMIK. 

Definitions 

- (a) Air Ceaiee and Other Aircraft 

Opmto r Croups ff. if. fit, /V^Mr 

carrteis and OUHX alrcralt operatora are 

di-vldcd Into two categories for purposes 

of determining an appropriate sanction. 

These categDTles track, the air carrier 

^vup a est^Ushed In FAA Order No. 

2150.3A. AppBiYdix I, CrnnpUaiKe/ 

Enforcement Bulletin BZ-I, but also 

IniJudes any opoatiir of anaim ^ that 

Is operated "In commerce** as ddlnod In 

the Federal hazardous meterlab law. 

including hr t ITS Foreign Air Carriers, 

Part 125 Operators, and Fart 91 

Opetaror?. Group.I is comprised of air, 

canio s and other alrcraift t>pentors with 

finual opetatirQ revenue of 

> 100,000,000 or jmore. Group IT la 

comprised of atrcanien and other 

aircraft operators that hold Part 131 

ccrtlBcates or have 50 or more pilots or 

operate 25 or moi^ almaft. with annual 

opoallng revenue of less than 

S10O.00O.0Q0. Group IH Is comprised of 

air carrieni wxl other aircraft opeialors 

that do ncrc meet the crileria fbr Group 

n with (I) 6 to 40 pilois. or (2) 6 ta 24 

aircraft Ci-oup IV is comprised cf all 

other air cirrlera or aircraft opentars 

not mcetlrig the criteria for Croups I, H 

or in. 

(b) Auliiesc Auf ty—The violator Is a 

business, (xxporation. partnership, SubS Corporation, sole piupctetor, 

aasocjation. or any lypc of commercial 

entity. An Irxifvldual who oOias a 

haartat shipment In air transportation In 

the course of his/her self-owned 

bwlness faUs Into this category. 

Includes all entities defbiitd under the 

HMR's definition of "person," (49 CFR 

I71.fl) -wlthk the exception of an 

Individual as defined herein. 

(c) ^iDineH Bnllty that R^ufarfjr 

Oflcrs, Aciaepts, or Transports 

Haxardoua. Materials In rhe Course of l a 

Bustnoss.—A irtanufacturer or 

dbirlbutDr of Hoan>at falls into this 

cat^ory. A bvlght focvtrardcrvrauld also 

fall Into this categoiy. The aspect of 

"regularfy" oiSvlng Mvers a business 

enUty^ that offers Haaniat with some 

anudpatad &ei|u«ncy or purporcr to do 

so. e.g.. a catalogue compariy that oQbis 

haxardoiB material to lis customers' 

Tweuld fan faito this category, even 

though lis actual sale or transportation 

of the Hazmat Is infrequerttcr limited. 

(<9 BvsinesM Bnaty Chat Use»w Handles 

Haariat In the Course of l o Bu^neas— 

This otegory encompasses the business 

that utilizes Hazruat In l b business but 

does notofl ^ it for transportadon on a 

regular basis, as described above. For 

«>an>ple. a manufecturer ofa nonHaarwt product that uses Haaoat in the 

manufacturing piocess could Call into 

t h b category. It must be established that 

sso/eso® SWG VVd stLseetsos xvd GO;LL OLO2/6L/O L 
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Federal Register/Vol. 64. No. 7B/Wednesday, April 2I, 1999/Rules and KeguIaUons 19449 

the company ordinarily does not offer 

he Hasnatit uUllzes for transportation, 

duod the stilpment In this instance 

represents xi isolated Incident. This 

type of business ts h^d to a higher 

standard than die business entity that 

has no regular Invtilvcmemwith 

Hazmat. The dcaolbed business entit/ 

receives the subject ha^udous riuleilal 

' In craru^ortation and ttses It inits 

business: thus. It Is clearly on notice of 

the hazardous nature of the materia] and 

the xegylatary ra]ulremcnls to which 

ihe Hezmatia sub)ecL 

fp) Declared Shipment—A declared 

shipmenC for pixpcses of Ihb matrix 

onfy. Is one that complies with one or 

more off the communicative 

tequlremeiws of die HMR, Le., It has 

maldn ^ labels, and/cv portiaDycotrect Ehlpplng papers. A package that 

hn^ shipping papers that debate die 

con^cents as hanrdous material but Is 

otherwise not mariced or labded falls 

Into dils caKgory. Similarfy. a properly 

msked arMf tabbed padage that lacks 

shipping papas also Calls Inti> this 

cat^ory. A case falls into tills CBn^ory 

-whciB there Is clear indkatton that tfie 

offeror made Bome attempt tD give 

notice of the hazardous natweof the 

'^htomcnt. 

;' (o ForbidJen or Exceeds^ Quantity 

Umlb for Fassengtr AAueA A 

shipment iialis into this categoiy tftbe 

quantity of Hazinat per package caceeds 

tile qinntliy liraltadons for paSKngercanying alrciafl or If the particular 

hazBidou!! material is fbtUdden in air 

transportation on passenger alroad. 

circumvent those requirements. For 

oample, an ofieitx who places a 

property marked and labded Hazmat 

shipment along with pKvperiy 

oomplewd shipping papers. Into an 

oveipack marked as "ptinted material," 

(e) /qrbfcAfen on or Stceeds Quantity has committed an Intenctonai or 

Limits Ar AH Airas^A shipment will 

fall Into tills tategoty if the quantity of 

hazardous: material per package deceods 

the eJJowiible amount fix both pessengir 

and cargo alrcnft or the Hazmat la 

absohjtidy' fbrtvidden in air 

tnursportatloiL 

Qh} Haantot—A ''''hazardous material." 

as defined In 49 CFR 171.8. Indwks 

and is IntcnJionceahle -with die torn 

"daiigermw gpods. " as used In the 

InternadoirarClvll AvUtlon 

Organization (ICAO) Tedmlcal 

Instmctlons. 

(0 bdtvidial—An Individual who 

o^rs a shipment of haeatdous material 

in hls/)«r personal capadiy without airy 

buslnos purpose or as pert t i a 

commentiid etMerprise on the part r>f ihe 

Individual. 

• (1) tnteadanal or DeUieraie 

VkJation~'A shipment &lla Into tills 

category wbeii there is evidence diat the 

offeror, arxeptbr, atr carrier, or aircraft 

opentor hnd knowledge ofthe 

requUements of the HMR aral iriUfulljr 

dicunrvenited or attempted to 

RISK CATEGORIES 

IRflum 2| 

deliberate -vlobtion. In dds ^p e of case, 

dw Invcstlg^tiiig agent shall consult 

with FAA legal counsel and follow 

agency guidance for potential criminal 

violations ofthe HMR. 

04 Undeclared 5hi]oinan>—This is a 

^pmcn t that has no Indication of Its 

hazardous nuto-lal contents and/or no 

Indication that the offerracommunicated the hazardous nature of 

the shipment's coixents m persons who 

acaxpt or transpOTL 

(1) Whbln H^mot Quantty 

Umitationf—The atrxnmt of hazardous 

material is within the i]uanttty 

Uniliations per padoge as esabUshed In 

the S 172.101 Table {49 CPR 172.101) for 

die type of alrcraift on wldch the 

shipment •raveled.-For example. If the 

shipment was oflbred for iransptxtailon 

on apassengcr akoalt. the quantity of 

haeardoiB material was -within the 

eobllshe d limtt For transpcitatlon by 

passenger aircraft. If ttie shipeient was 

oflaed for transportation on a cargo 

aircraft, the quantity limitations ftNr 

orgo airtaaft apply. 

Ortegoiy ."*•' (Hazimum Watghi) 

Caiegoiy *A* rnatadals am maladab OM Mmt ralaasad h fie Eonflnes of an oliaall can potenllaly hava a taiasuiipiJu eflecl ar% an atrcrstfa abffiqr to csiftiue safe llghl, resiMip ki a crash or aumisency landbig eatxlng ti m c daatti t» poasonoare and Mt^ikmw. as wet aa 

peraiim on tfw grpund. 

Baplbdvas: DMslon 1.1,1.2,1,& 

Cwrpraasod Oases AH 21.2 £ «« i Subsidiaiy Risk S.I and Al 2.3 PIH ZVB S APD. 

Ftaanabto U9<Us FQ i, II. and (PiH). 

CKvWon 4.1 FlanwiHbie SoUs IPO I. & (Maicnes). 

DfvMon 4,2 BponlaneMAiy CombUsttilD Manrtsb PQ I (Fyrophoil^ 

DMdon 4 ^ Dangaioua VMien ivei PO L 

DMAn B.1 OrilUnb tJqdde and Solds PQ I. n, e.g., 'ChanAal Q/cggan Generakvs". 

DMahm &Z OmKdc PereaMea PQ U (Type A B, C, er D). 

DMsiwi 5.1 Potsonoia UqiAtt IPG I (PIH). 

CarpB Alicnlt On|y Quaralflos en PaasengDr AlrosfL 

OonoBlve Maierial UquU PO I nrd (PIH). 

Foitaldrifin Uataitals (See 49 CPB 173.21 & ICAO TtcMciJ talnjc«Ons). 

FbiMddon Hazmat iislad in Danoerous Goods Tabla 49 CFn 172.101. 

CUegory 'V ' [Modems Weight) 

Clasa 1 -..., 

C)as9 2 ~~, 

c::fcias3 

Class 4 

Class S 

Ctoas 9 ... — 

CUBS 7 

Oaas B .-.-1 

TTw malBilala Idtid in Catagoiy "B" are maleilals WM may noi poso an tnmedMo tuaai to f w safety of a IDpht tHit can causa dealh or In-

(uy h> ponrna (kai to taiDitand^ releases In aiiaall cat*» umaa, and polenUal damage to eincmlt siniduras over a longer peiiod of fma due 

to mOsooveiBd leieasea on ehaaft stnictnal componnnis, 

ClBss 1 ^ DMalon 1M, 1.6, I.A. Al Compcitbniv Groups. 

Class 3 _ PG m FlaninwMa UquMa. 

ClaBs 4 _. ... DMskxi 4.1 Ftanvnable SoOda PQ It, ill. 

I DTiiCslon 4 2 Spontaneoudy Combuadble Matarteb PO IR. 

OMshn 4,3 Dflngeious Wh«T viTet PQ 0, III. 

3asa 5 -.......,. DMakati E.1 OMItkip LkiuMs or SoKtfs PQ t». 

DMaien 5 2 Ofoanto Paraxides (Type E. F. 6). 

dis s e DMston 0.1 Polaonoua UqiMs PG I, II (t«3IM>IH). 

DMsion 612 bilecfogi Siitsianocis. 

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10/13/2810 12:53 4252271007 ANM7 PAGE 25/2 5 

t 19450 Federal Wapaitr/Vol. 6*, No, 7a/Wednesday. April 21. 1999/Rules and Regulations 

RSK CATEGORIES—Continued 

[Piguresi 

CiassT" 

Cless B 

RadhMcdMi Matarfais, ytJiaw bbal III, ysHoe bbal II, and whin labei L 

UquMs PQ U. IH Sollda PQ I. II. H. 

Category r v (Vbiknum Wdghl) 

The matarfats Isiad hi Cafegory "c r am malertBls Ifiat jnstim 9m least anKwit of iMc to Vw traAsportaOon system. 

CUiss2 

Class 9 

dasB? 

Class 9 

2.2 Nonliamniabla Oas. 

DMalon B.1 PadAig Group liL 

Al ether RAM (ISA, LTD qTY. InaiiuniefltB and ArtcMMhceBaneotia Dangeiou* Ooodi (ORM-O and Connmer OommoOly)., 

NoiK This guidance la not Mandad ta replaoe tfw aqporienced Judoraent to' a nn M asenl who is connAxed. based on tha miderxs and 

facts ol a cast, tfiai Vw faBuito of an air carrier, iMpper, treishi foiwanler, or pesoangw to fplow establlshoil rc^jlatlons has posed a risk to 

Issued in Wiohtngton. DC on April 14. 

19^ . 

Jaaw F. Gam^ , 

AdmitOslratPr. 

WR I>Dc. 3S-9983 FUcid 4-20-99:9:45 «n>l 

•BASM COPE me^is-w 

SECURITIES AND EXCHANGE 

COMMSSIOM 

17 CFR Paris 202, 240, 242 and 243 L Backgrmmd 

FOn FURVHER NFOmiATIDM amrACT: 

Ellaabefti King. Senior Special Counsel, 

at <Z02> £142-0140. ConstaiKe Klgglns. 

Spedal Counsel, at (202194Z-DDSS. and 

Kevin Ehrlldx Attorney, at (203 912-

077B, Dhrlslon of Maricet Regiibitlon, 

SecivlUes and Btehange Commlfision, 

450 rath Street. N.W.iVashingnin, D.C, 

20549-1001. 

SUPn.EUf NTARY KOBUA'nM: 

(flataas* NeL 34^1297; flla No. S7-1»-5a) 

RMa235-A)M1 

Aogvlalien of AltemaiUva Tidin g 

Systems ; Teehnlcal AmenAimn l 

AeENCT; Sectmtles and Eactwnge 

Commlnlon. 

Acnoi c Final rule; technical amendment 

a n d revised compliance tlaie. 

BPMHAirr; TI E Securities and Exchange 

Coimnlsslon Is mollifying ttie 

coTDpllanca dates for Rule 30I(ti)(3) and 

meklnEa tcciinlcal char ^ to Rule 

202.3. These and other rules arxl rule 

amendments relate to tfie regulation of 

alternative InidUag systems and . 

esechanges and wcte published on 

December 22, 1998 (63 FR 70B44}. The 

effective dote Ibr the other rules and 

amendments published i n 63 FR 7084-I 

terrains Apt n Z]l. 1999. tstcept for the 

effective date for S5242.30l(b)(S)(l)(D) 

and (B) and 55 242.301(b) (5)0) (p) and 

(E), which remains Apri l I, 200O. 

DATBS: Effiectiva Data: Apri l 21.1999 Ibr 

amendment to S 202.3. 

Compliance X>ate; AltemaUve trading 

systems miisr comply wit h 

5242.301(1^(3 wit h respect no the 50 

jCCUritlB listed In SiJiedtde A by 

August 23.1999; With respect to the 

peciwities listed on Schedules A arid B 

oy September 28. 1999; wit h respect to 

the securities listed o n Schedules A, B 

and C by Apri l 29,200D; and wit h 

respect to all securities by June 20, 

20OO. 

On Deceihber S. 1998. the Sectsidcs 

and Enho^ge CiMimilsslon 

r'Comrnlislon") adopted newniles and 

ride amendments to allow alternative 

tradb^ qsMn s to .choose whetho- to 

leslster Ki narioeal secvlties exdtanges, 

ortoreglittras brtdcer-dealosand 

comply with additional requlrarasnis 

under Regulation ATS. depending on 

thelt 8ctt%>f ties ui d trading vohue. ' The 

effnxlve <IalB fbr moot of thBo new 

rules and rule Biaendmema b Apri l 21, 

1999. HK ! Ccanmlaslon stated in Ifie 

adopctag release that, prior to Apri l 21 . 

1989. U would publish a list itf those 

securities witl i respea to which 

iltanaatfvir trading ;r^ttma nniM nmpJ r 

wid i Ride 30ia>)(|) on Apri l 21.1999 

end those .securities with respect to 

which aUemati-ve trading djstems must 

comply With Rule 301 (b)(3) on August 

30,1999. Ride30I(|b)(^ requires an 

oltematitn: hading system to provide to 

a notional securities eKclonge or 

rwtional securities assoclatioax for 

Indusion M the public quolation 

siysteia thiB prfcci and sizes of Us best 

priced bi ^ and sij l orders, that ate 

displayed itoiaore than one peisai. i n 

each covered socurl ^ in which ihe 

alternative trading system rejvesmB 

596 or TBore of the Intal tradb^ volume.' 

• ScaBlllaEnhanc»A£tAelcBav^kL407W 

(Oce. t, 190^. eant nu t 0>c«. as. iSMi. 

>ITCni241IJ01Mp).Fariiui>(iaeior 

K^iuktlarx A':rS, 1 "OKovd accurt^r" Inalvada fiX 

euhaneegbteiil, Nasdaq NM MCUflUo. Kri Nasa«| 

Small Cap neivUIo; Dificr dua O M *nd 

~>-*-aRia1dma. SuRuV* HMt-iMIS). H 

I L Ddq r of ibe Compliance Dates (« -

Rnle 3Ol(b)0) 

One major aUerriativc trtKliog system 

has liKttcatcd that It wil l be unable tcj 

complywlth the requirements of Rule 

301 vivf i by die ctflglikal compliance 

dates without putting the opoatlon o f 

l o system at sCTloua risk of iidltBe;. Th e 

operational Cdhvef>f a cnajoralternati've 

trading synem could Inteifae vrith the 

narke s as a-whole. Accordlttgly, the 

Comrnisslon hdlevot i t necessary to 

ad|ust the compliance dales for Rule 

301^)(3) asfoUows: 

Atigust 23,1099: CcmipUance vrlth 

Rule 30i(b)(3) wit h respect to tlic50 

Nasdaq securities listed on Scfaiedide A . 

attatiied In die appendbc 

September 2B, 1999: Compliance -with 

Rule 301(b)09 Cor the 50 % of Nasdaq 

securities listed «o Schedules A arxl B, 

attached In the appendix. 

Apri l 25, ZOOOi Compliance wit h Rule 

30l{b) ^ fbr die 7596 of Nasdaq 

seoiritles listed on Schedides A. B, and 

C, attached i n the ^pendlx . 

June 21), 2000: Compliance -with Rule 

301(b)(3) fbr all Nasdaq securides. . 

Schedulo A. B, and C wo e created 

by ranking al l covered securllias traded 

on Nasdaq byflielr,bniiary 1999 

vdime , and incliidli|g an eritol mimber 

of se<»riUes from each dedl e Some 

securities That-were not Traded on 

Nasdaq i n January 1999 may commence 

vading o n Nasdaq $uhseq[liently. 

Alternative tradbig systems fnay wait 

unti l June 20.200O to complywlth Rule 

301 (b)0) widi respect to these 

securities. 

A l l otho-cmnidlance dates for the 

rules end rule amendments adopted last 

December leniain the same. The 

Commission encourages those 

alternative trading systems that aie able 

ID conqily widi Rule 301(b)(3) on Ai>rU 

21,19SdtDdbsD. 

CF1l240.llAcl-IWCR:a"l«3D0<i^. ITCFJt 

MraoQIi). 

sso/ssoia SWQ VVd StLSSGtSOS XVd GO-LL OLOS/GL/OL