### 10/13/201 0 12:5 3 125?27180 7 ANM 7 PAG E fe)2/25

1 0 I I 1 2 1 3 1>1 

### I S I S 1 7 1 9 1 9 3 0 2 1 ?.? . 2 3 2 4 ^ 5 2 S 2 7 2 6 2 9 3 0 3 i 3 2 3 3 3 4 3 5 3 6 3- 7 3 8 3 9 -1 0 4 1 4 2 -»3 -44 

### •a s 4 6 4 7 4 9 4 9 5 0 5 1 5 2 S 3 SCOT T R , MORKI S 

### FA A OtTIC K

O FRECilONA

LCOUMSF.l

160 1 LrNDAVE;.,S W RENTON , WASHINGTO N

## 9805 7 TEI.EPH0N1; : 425/227-141 7 FACSIMILE ; 425/227- 1 00 7 

## APARTMEN T O F •^;--:0PtR/V[10N S



# UNITE D STATE S O FAMERIC A DEPARTMEN T O FTRANSPORTATIO N OFFIC EO FHEARING S WASHINGTON , D.C , I NTH EMATTE RO F FEDERA LEXPRESS . INC . FA A DOCKE T NO . CP09NM001 0 (^^^^^' ^ ^ 7 DM S No . FAA-2009-072 1 t ,^60^ ' (^^Sf

^ FAACa-seNo , 2007NM70015 6 , Judg e Richar dGoodwi n MOTIO NT O TAK EJUDICIA LNOTIC E ComplaioanL , throug hhi s undersigne dcounsel , pursuant to Rule s o f

Practic e 13.21.8(a

) an dPR E 201 , hereb y roovcs thattheAL J tak e judicial notic e o f the following : 1 . Th e Administrator' s publishe dsanctio nguideline s fo r hazardou s material violation s containt^ da t 6 4 Fed . Reg . 1944 3 - 1945 0 (Apri l 21,1999) . (Attached ) 2 . RSP A Forma

l Interpretatio nof

Regulations , 6 3 Fed . Reg , 3041 1 - 3041 2 (Jun e 4 , 1998 ) [Constructiv e Knowledg e guidance] , (Attached ) 3 . I nadditio nt o regulator

y violation s se t

fort hi nth e Complaint , the followin g HaJtardou s Material Regulation s (4 9 C.F.R.) : a . Sectio n171. 8 b . Section s 172.10 1 (Table) ; 172.200,172.300 . an d172.31 6 c . Section s 173.2 7 an d173.15 0 DATE D tlii s 13t

hdav o f October 2010 . ...^ ^ 

## COTTR . MORRI S P A AAttorne y

Motiou t o Tak e JuilicialfJoric e PA ADocke

v No , CmSNMOOl

O Page I f>l ' 2

SSO/SOO ? SW Q VV d SCOT T R , MORKTS . FA A ATTORNE Y 

### TEL . 425.227,1417 ; FAX' . 425.227.100 7

3frLSeGl720 2 XV d eO- U 0L03/6L/0 L10/13/2Q1 0 12:5 3 4257?7190 7 ANM 7 PAS t 03/2 5

1 7 . 3 <l 5 5 7 e 9 1 0 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 5 9 2 0 2 1 2 2 ?. 3 2 4 Z 5 2 6 P. 7 2 6 2 9 3 0 2 1 3 2 3 3 3 1 3 5 3 S 3 7 3 S 3 9 4 0 4 1 4 2 as 4 4 4 5 4 6 4 1 4 S 4 S •5 0 S I S 2 5 3 

## CERTIFICATEO FSERVIC E I hereb y certif

y that th e foregoin g Motio nto Tak e Judicial Notic e ha s bee njicrve dvi afacsimil e an dCertifie dMai l - ReturnReceip t Requeste dthi s date , t o th e following ; Th e Honorabl e Richar dC Goodwi n Offic e o f hearings , M-2 0 1200 New Jerse y Avenue , S,E . Eas t Buildin g Groun dFloor . K mEl2-32 0 Washington , D.C . 2O59 0 TEL ; 202.366.213 9 FAX : 202.366.753 6 Federal Aviatio nAdministratio n 80 0 Independenc e Avenu e S W Wasliingtan , D-C . 2059 1 Attn ; Hearin g Docke t

Clerk , AGC-43 0 Wilbu r Wrigh t Buildin g - Suite 2W100 0 FAX : 202,4^93.514 2 Courtne y E . Felt s Staf f Attorney , Federa l Express , Inc . 362 0 Hack s Cros s Road Buildings , 3 "

^ Floo r Memphis , TN38125-880 0 TEL : 901.434.863 2 FAX : 901.434.828 3 Date dthi s 13t

hday o f October , 2010 . / > ^



## \fOIFAI RCHIN Offic e o f Regional Counse l (ANM-7 ) Federal Aviatio nAdministratio n 160 1 LindAve . S W Renton , WA 9805 7 425.227.216 0

Moti« n1 o TaJtt

Judidti t Notic e FA A Doclcis

t No . CP09MM901 0 ScDT T R . MORRIS , TA A ATTORNEY TT.I, : 425,227.1417 ; FAX : 425.227,100 7

sso/eoo H SH Q VV d SfLSeGt^SO S XV dSO'l l 0102/GL/O lIt3/13/201 0 12:5 3 425227100 7 ANM 7 PAG E 04/2 5 

# f Federa l KegiMcr/Vpl . g4 . No . 76/Wcdnesdfly , Apri l 21 , lS9g/Rule 5 an dReBuJstian s 1944 3 Fairnes s Ac t Th « Smal l Buslnfts x Rcgulatox y •nTDTcemen

t Fatmcs s Ac t

o f 199 6 CPub . L . 104-12I J piovld agenerall y fo r congressional ! revjcw r

o t agenc y rules . A icponfji g nqfVnme mb triggere dI n Instaoice s vrher e NCU A Issu u afinal rut e a s define db y Sectio n5S ] o f di c A(lm)n[E.li9UN>

e ProcBdure s Ac t

5 U,S.C . Si S I . Th e Olflc e o f

Managemen t

an d Budge t ha s detennlne d(ba t

thi s rul e doe s notconstsut e amajo r rul e for ' purpose s o f

th e Srtxa U Busines s ReguIatDi y Enforcemen t Falmesi i Ac t

o f 1996 . Lis t orSi4jccit s I n1 2 CF RPiv t 70 1 ChartObl e OMttribudcnu , Credi t unions . By - Ifa e Nattonnl Cnd x Unio n AikAMMntienliear do nApri l ]5 . 1999 . fcdcrBakw. Sacrvta/j r o f th e Board . fo r th e reasons se t

fort habove , NCU A amend s 1 2 CFT

C pu t 70 1 a s follows: authoriz e appropriat e official s o f di e federa l owll i unio nt o selec t ledplenc i an ddisburs e budgotc dAvid s aimn E thos e redplents . (F RDo c 99-993 1 FUo

d4-20-99 ; 9:45 . «n) l OEPARTWEK

T O FTRANSPORTATIO N Federa l Aviatio nAdmlntetrallo n 1 4 CF RPat t

1 3 FMsra l Aviatio nAdmhilsimio RPolic y o nEnfeiremcn l o f

ih s Hazardou s Malwfal * Rugulallons : PMwR y GuMBllne s ACEMcr : Federa l Aviatio n Admlnlsiratla n(FAA) . DOT . Acnoi t t;enera l satamen t

orpoUcy .

PART T7QT—ORGANIZATIO N AN D • OPERATIO N O F FEDERA L CREDT T UNION S \1 , Th e authorit /

cltadc nfo r

pa n70 1 continue s T

O reci da s ibllmvs : AaHwrlQf

: 1 2 US.C . 1752(9 , ] 7SS . 1758 . '757.1759 . ITBl nI7BIb , 17B6 , ITBT . 1782 , .7M . 17S7 , an d1789 . SoEiOe n701. 6 l aalt e nithorta d1 7 3 1 US. a3717 . Sectfo n701J» 1 Isalsoaiithortadtfy'lSir.&Cieo i t t sea . € j U.S. C I8S 1 an d<2 US- C 3601~3eia * Sectte n7QI3 5 i s ab aauthoriae db y 4 2 U.S.C . 4311-4312 , ^ Z . Par t 70 1 I s aiXkeiMJo

db y addin g §70'1.25tDrwla$JfolJoW3 r 9701,2 6 t^haittatt hDommwven aant f ((MWiltona ^ (a ^ A feden l cred U xMio nma y mat e charltab k

cmtrtlTutlar B and/o r

donat e ttin b t o reclplen b no t

ateanlze dto t profi t tha t ar e locate dI no r

conduc t activitie s I nacommunit y i nwhic hth e federa l czedl t

unio nha s aplac e o f busines s o r

I D oi^nlzstton s tha t

ar e ta x CKemptDi^nizatlon s unde r Sectio n 501C<^(3 ) o f

th e Interna ] Revenu e Cod e an dopoTBt

e prtmaill y t o promot e an d develo p credi t

unions . (b ) In aboar do f

director s mus t appnrve-cfiarltabl e contribution s and/o r donations , an dth e apprcrya l mus t b e base do nadeterminatio nb y th e boar d o f dlrecto ntha t

di e contribution s and / o r doriatlon s BI « i nth e bes t interest s o f *i o fedaa l oedl t

unio nan dar e >asonabI e give nth e siz e an dfinancia l x>ndiSo no f

th e federa l oedl i union , ili e boar do f

dlredors . If

i t chooses , ma y establis habu<lge t

fo r charitabl e contribution s and/o r

dortatlon s an d snnaus mthis , documen c slate s tin t FA A poUq ^ o ndefenotnlzi g th e sanctio n amount s I nFA A artlcKcecneat action s addressin g vfoladork s o f ti K Departmen t of'nanq>onacU) nHxeardou s MaieHa l Reguladon s (HMI^ . Thi s polic y statocen t

provide s pUchno e fia

r agenc y personne l I nth e exercis e o f tiie FAA' 5 pnuBcumla l dlsoedo ni nenRxtemen t case s conconlii K

trarisportatle no r hazardoti s natBia b b y air . Th e siUdAne e shoul dai dfai snal)fsl s o f th e fact s an dcinrwDstano B o f eac hev e s o a s t o aniv aa t

a nappropriat e sanctio ni n ligh t c f th e statutcnril y define dpaalt y consldcrattona . Tli e analytica l frtunewor k

shoul dals o ptmnoi e a relativ e consistenc y I ndetennlnla g cfv U penaltie s fo r

vfolatlan s o f

At t HMR . fclWCIWrfcDATEt

Apri l 14 . 1999 . 

### Fo nraRTHEnVfotauoKu t

camAcr : Bl U Wilkenii ^ Offic e o f Qv U Aviatio n Seanity , Dangerau s Good s an dCarr o Securit y Division , telephone : (202 ) 5G7 ~ 9864 . facslntO e (20 9 267-576 aomall ; 0111.W||)cenlng>1ka.gov , inaiUn g address ; ACO-SOO , 60 0 Independenc e Avenue , S.Vf. . Washlneton . D,C . Z05S1 , o r AUu k H . Hotnwliz . Enfoirxmen t Division , Offic e o f

th e Chie f

Counsel , telephon e (^02 ) 2^-3137 . facsimil e (202 ) 267S106 , tatai h AlIanJivwdtBfiaa^Y , maUli v addreaa : ACC-300 , BO

O Independenc e Avenue , $.W. . WasMr^gto aD.C . 20591 . 

### suppLEMBiran y vrcmuATioH : Backsimui d Congres s determine dtha t th e unregulate dtransportatio no f hazardou s mateirlal s constitute s athrea t t o publi c safiBQ r I na Q forms o f

trana^tortatiora . Congres s addresse dtha t thrta t I n197 4 b y cnacdn f

(h e Hazardou s Material s Transportatio nAc t

(HWrTA) . B y 1990 , Centre s detomine dtha t effectiv e enforcemen t oTth o HMT A require d mor e sever e action , an denacte dth e Hazardou s Matertal s Transpoitatior i UnUbni i Safel y Ac t

o f 1990 , Publi c La w No . 101-B15,199 0 U.S . Cod e Congress , aAdmin . New s lO i SU L4605 . Th e priniar y effec t

o f thi s 199 0 revisio no f th e HMT A wa s t o rais e Ih e naxtmun i dv U pcnolr y fo r

violatio no f

m y regtilatlo nenacte dunde r th e F^^ A l o 525,000 , and . fb r

th e Qis t time , t D requii e aS25 0 minlmup i penalt y fu r an y suc hviolation . Th e HMT A wa s lecodlfle di n19Q 4 «n di s no w reftn-E d [o a s th e 'Tedera l hazardousmaierla l mitsponatlo nlaw. " 199 4 VS . Cod e , Confess . & Adrrdn . New s 10 8 Star . 759 . codifie da t

4 9 U.S.C . 510I-5127 . I nth e 199 4 recodiQcatlon , Congre s ^leciflcaUystate dtha t

th e tecodJUiaitlo ncreate dn o sulscantlv e chane e t o th e earlie r

for mo f th e satute . Th e Federa l Ctv U Penaltie i Inflatto n Adjustmen r

A(. t o f 1990.2 B U3.C . 246 1 (not^ . a s amende db y th e Deb t Collectla o IiDprovEmen t Ac t o f 1995 . PubUcLa w 104-134 . Apri l 2i , I90S . twuvlOe s amechanis mto r ad|u5tiDenc s fo r monetar y dv U penaltie s fcr Inflatio n I norde r t o mamcri nth e detoren t cSbc t o f monetar y cM l penaltie s an dpnnnot e complianc e wit hth e law . Unde r th e statute , th e n ^ cM I penalt y mvdmum s canno t

b e appU M unles.-; : thi ^ ar e Implemente dt y icEulatlon . O n, Decembe r

20,1996 . di e PA A publishe d ailna l rul e (61F R£744) . implenientln g tli e sbtut e to t

nc hcivi l penalt y subjec t t o th e FAA' s JurfsdJcdan . O nJanuar y 21.1997 . theFAApubltehed a conectio nt o th e tint i rale (E z F R4134) . Th e Sna l rul e i s codifie da t 1 4 CF RPar t 13 , Subpoft RPivsuan t t o 1 4 CFR l3J05(d) , th e nuadmu mcivi l penalt y tha t ma y b e aeseatvi dfo r

aviolatio no f th e Federa l hasardou s matoia l la w o r a hazat«iou 3 materia l regulatio n( s no w t2T.SOO . Consrea s assigne dth e responsibilit y Ib r th e enforcccnen t

o f th e Federa l hazandeu s materia l tiatupqrtrtlo nla w t o th e SeoeCar y o f

Tkvisportation . WIthb i th e Departmen t

o f Transportation , th e Researc han dSpecia l pjogram s Admlnlseratio n(RSPA ) adapt s th e Hazardou s Material s Regulation x (HMtQ . 4 9 CF Rpart s 17 1 ihrvus hI7B . whic hgover nth e transpcKtatlo no f hazardou s material s (Haemal) . AJthoue h RSP A ha » som e enforcemen t responsibl&tles . th e rtspmwlMlliyfo r enforcin g th e HM RvriU i respec t I D clvl ) avtado ni s delegate db y th e Seoetat y o f Ttansportiila nc o th e PAA . 4 9 CFR 

### i.4rag . Th e HM Rse t

ftort b regulatfafk s fo r

th e transportado no f

Haama t A lcnowli>g violatio no f

th e statut e o r

o f th e HMK ca nsuppor t

th e assessmen t

o f aclvt l



### S30/fr00i a 

## sw a VV d 

### StLSSGtpSO S XV d eO-L L 0L02/GL/0 L

### ia/13/2B1 0 12:5 3 <l252271l3t) 7 flNM7 PAG E (35/2 5



### / " " 19^4 4 Federa l RBEi8tgi-/Vol . 64 . NP . 76/Wedne5day . Apf O 21 . 1999/Rule aan dRfegutatlons ^ penalt y betweenS25 0 iin dJ27.500 . A perso nact s knmvingj y whe nth e perso n )a s aaua l knowledg e o

f th e factagivin g Is e t o th e violaHoT

K o r areasonabl e poso nacting I nth e clicumstance s an d aercisln K leasonabl e care . wotU dhaiv e oStooJSirfBe.49U,S.C . sm(a)(0(A) . Th e clv U pmalde s authorize dundb r th t statut e appl y to EAC

H violatio no f

an y rcguJsUoRset

foit hI nth e HKfR. MorecrveT . under

th e statute , eac h condnulii S violatio no f

th e HMR - ca n cDnstltus e aseporat e violatio n*o r eacl i da y aviolatio n<»r*dntie» . b i sa^o n 5124 o r thesWdite . Confes s presolbe d diinlna l penaltie s lo r

awtUfii l violatio n ofth e Pedeiai hazardou s mat^ia l iranspoftatti D la w o r

th e HMR ; wmfii l violadon s rMudr

e cvlderK e o f

bot h knowledg e rf

th e la\waarK

l regulatlon a an dinten t

t o violat e than . Far t 1 3 o f th e Federa l Avlado n Reffulatlatu—Irrvestlcaiiv e an d Enftmemcrt

Procedure s (1 4 CF

RPar t 13 } govcnn s tf>e prDPedkit« 9 applicabl e t o enfljrcemMJ

t o f th e HMRb y th e F'AA . Hanna t vlototlon s ooewrtn g o no r after Augus t 2,1999 . nw y b e disitdsst db y an edmfnlscratfv ala w Judg e (AIJ O i f a Nodc e of Fropoae dCtv

U PenalQr

ha s no t bee nIssue dwithi n2 year * o f th e violation . unlesK

goo dcaus aib r

dela y >33bt9c nshirmi . 1 4 CF

R13.20S(d) > iCanaldefaiiop «i

f Stalutor y Criteri a I ndetenDlsln e th e sanctio nB O b e assessed , pcnal ^ critcrt ase t fort hI n4 9 U.S.C . 512 3 mus t

b e considered - Thes e crliol aar e fiie nature , clrcun>9taiice$ , extent , an dpavli y o

C th e violtfUon . th e degre e of oJp^Ult y of

th e vtobtor . an y h\ax:0ryorp»st.vialaaoia , th e ablU ^ to pay , an y eflect o nth e abilit y t<

* condmi e o d o business , an dotfier

matter s a s Justic e nquin* . ^»m e o f

thes e ccaisldemtlon s abead y a nEactore dt o som e eetoi t

ini D th e categotie « ( nth e Hazanlou y MatBria

l Sencdo nGuidanc e I^ifatrix . Thestatuitoi y lacton r ai » furthe r consldoe dunde r

th e welghdn g analTsC s tha t t s perfonnc dl o Indicat e th e amoun t o f civi l penalt

y withi nth e appropriat e range , Le . a

t di e inlnlRuioi . modeseie . o r maxiinu mpeitio no f

th e sanctio n raitge . T o ccanply w l A th e underlyin g purp<ffc s o

f th e Federa l hazardou s matEtfia l transpoaidork

la w sm dHMR . a sancdo nshoul db e impose dtha t i s sufflciently detcnen t

bu t no t excessive . Tli e HsiardMt

f Mateflal s Sanctio n Guidanc e i s designe dt o pinmot e bette r consbxcnty s o tha i slrtdla r penaltie s ar e Impose dinsioilla r

cases . Tli e Matri x 'mge s ar e Intende dt o reflec t th e nature . .{JrcuiDStsncca

, extent , an dgravit y of

th e :as e a s ccrppare dwit hothe r type s of OSes . Eac hcase , however , mus t

b e evaluate don

> ft x ow nfacts . A sanctio n mat y diffe r ftomth « Matri x range s whe n tli afid b an dclnvmstance s o f acas e support eithe r apeate r or lesser penalty . Whenaspecia l agen t believe s tb A apenalty sbcMl dexcee dth e Matrix ranges , th e agen t

shoul doonstd t

wit h Iqp t counse l before finthe r

piroocssln e o f th e ^ntoreeinen t

Investigativ e Kepor

t (EIR) . Thi s oonsultafdo n1

$ no t necessat y I n th e cas e oTaxwraiMiKadedpenall y tha t I s les s tha ntha t

provide di nth e Matrix . I ncithe r

sltuatHm , th e basi s fb

r th e dvtslo nt o g o outsid e th e rar^ges shoul db e CKpIalrve

din . detoU . Vielatlo mo f

Par t 17 5 of th e HMR . whic hestablis hparticular nsiulremeni s fb r ai r canie nan doif>e

r alrcnf t opeiBtota . cu

e containe dI

naseparate matrix . Howevsr . suc hopeidtoc s oflen oSierlazardou s material s fo r ai r transportation, ^ a s weO « s accep t an d transiMr t them . Fo r

thi s reason , sud t opentte ama

y b e Uabl e fo

r violation s bot ha s abusines s entt ^ wltM nth e flajardou s MatErtal s Sanoto nOuJdano e Matrix , a s wel l a s spedfl c air ourle r violatloiis . Us e of th e Sanctio nGuldaac e TK s guidanc e pravlde aagenc y peffonnt l wit hasystemati c way t o evaluate acas e andanlv e a t a n apprepriftt e penalty , consldoin g al l th e relevan t statutory criteri aIncludin g an y mltl^iin g an daggravAtir

^ drcumstaneea ; Statuim y canOdenilon s ha w bee nfactore dint o di e variou s range s withi nth e Sanctio nGuidanc e Matrix . Determinatto no

f wher e » sancdo nlie s withi nthes e range s I s aide db y ^ seite s of

weightin g questlDn s tha t prob e (h e variou s aggravatin g an d mitigatin g £actM

9 tha t ma y exis t i na FKt ; ^ e wct|)itlri g analysi s I s perfaimcd . Agenc y personne l napon d u aserie s of

cjuestiOR t to,deteTmlne th e ^ifft^i B virelgh

t o f th e case . Ttot ^^legat e weight

o f th e cas e help s deteimln c th e sanctio namoun t o f eac h vlolacia n^u p wlihb i th e establishe d raise s o f th e Mabt c Rt s Importan t

t o noi e that detennlnAtlo o o

f wher e th e sarteno nlie s vrithintt e Matri x I s no t

th e T«siil t o f a mathonatlc dcomputation . Bvaluatlo a c f tin ; cas e i s basedo nth e totality o f th e flKt s an dclmvnstances ^ Generally . I f th e answe r

t o aparticula r

questio n represcsit s amore slgritllcan t aspec t o f a case , (reate r

coosldiratio nshoul db e givenl o tha t

arBwrer. Fo r

eample , violation s InvoMrt g a nextremd y dangerous * substance , eve nL n minut e quAtlttes , migh t

warran t apenalty at ^ maximumen dofth e leng e o r eve n apenalt y exceedin g th e Maoi x rwigcs^ Unde r th e Sanctio nGuidanc e Matrtic . agency personne l determin e th e eattgoi y o f violato r th e perso nfail s withi n(e.g. . busbtes s entity that

i^:gularl y offers , accepts , o r

transport s Hflbona ^ an dth e offens e calegpi y (e|^ . undeclare dshipmen t

wlthb i Haona t quantity Usnltelons) . Th e sanctio n range s unde r

th e variou s violato r cat^orte s at e IIUD aocountth e relativ e culpability of

th e vtolator . SbnUarly . th e ofletuRcaftegoric s addie u th e natuie . drcurosmnces , an d^avit y o f th e pardcub r olTerue . Afte

r detennlnln g th e appropriat acategorie s an dInterseccn g bo x o f th e Matrix , agenc y personne l theri detemln c whic hsubcategorie s of Q^iue s (eg. , sliipptngpapen ) se n allege dt o hav e bee nviolate dBase do n th e weighnn g anetysi s peifixiiie dI n Sectio n1 , a nappropriat e penalty I s assigne dfbr

eac ho r th e applicabl e vlblatlo npoups . Th e penalty arooun t Ib r ead t relevan t violatio ngroup I s adde dtoipthe r

t o rced i th e recommaside dsaruxlon . Unde r Sectio nD

I o f th e Guidance , (he specia l agen t

ttie nconsider s othc r televan t factors . lra::ludlng evidenc e o f obcrectiv e action . A (eootnmeade d sanctio nna y b e reduce dprio r t o th e Issuatxs e o f

aNouc e of

Propose dCivi l Penalt y whe nOier

e b adequat e reli^ibl c InfomuHo nconcernin g th e correctiv e actIon » take nb y ane^tondefl t Corrwav e actlcm s tf»t

J\i3tlf y reductio n of th e reoommendei l penalQ r imu t excee dIbe mlnieau mlega l rapUfcments. Th e specia l agen t lOs o attempi s t o provid e inTonnatla n amoonlr v th e allege dvicdator' s size , nnaocia l condition , an dablUt y t apa y a Tecoranicrtde dsanction . Whe na nEI

Ri s forwarde dt o legal couiBe l fb r cnfmroemen

t actte acounse l wit hgtv c appropctat e consideratio nt o th e recommende dSBncdon . FA A lega l Qoxmse l wil l als o revie w th e fiacnars. analysis , an ddetermtnailon s unde r th e Hoziirdou s Mateital s Sarvrdo n Guidance . Aity basi s for

deviatin g fiom ih « raconunen dsanctio nI s ocdinaril y explaine dto . an ddiscusse dwith , th e InvesdpMtn g specia l agent . Fina l detemvuutlo no f

th e sancdo namoun t propose dI nth e Notic e of Proposed . Ctvll Penalt y t s ordinaril y aproduc t of Join t deelsoRiBCtMn

g an dappiova l o

f th e investigatin g agen t

an dth e lep l office . Federa l Aviatio nAdaglnbtraao D Hazartfot s Material s SancUon Gnldanc e Thi s Sanctio nGuidanc e I s divide d Int o thre e sections : LCas e Anai>sls . ft , UtUixario o of

di e Sanctio nOoMance Matri x IMatri>i}.wM

l m . CwijJdeiatlo no f

adM r Statutor y FKiors Th e Sanctio nGuidanc e Maoixl s coneUned I nFlgix e I an dtfie RLi

k CatcEort u ar c 

### conTaine dinRgun ; Z . 

## sso/soo ® s w o < • VV d 

## snssetso s xv deo- u ovoz/ei/o i

### 1U/13/201 B 12:5 3 4252271&0 7 ANM 7 PAG E 0&/2 5 

# c Federa l RcEbter/Vol . 64 . No . 76/Wednesday , Apri l 21 , 19S9/Rule s an dReculatlon s 1944 5

, . I . Cas e Anal^l s (Bv«lnaUo A o f ^tatulor y Assessmen t

Factors ) Till s sectio ncont;ibi s ascrie s o f quesdcm s designe dt o assis t specia l agent s an dIttDmcy s i nevaluatin g a particula r

osc . Th e quesUa nrevie w factor s IrrvDlvIng th e nature , drcunmances , exten t

an dgravit y o f

th e violatlD ad e violator' s degre e o f t^ culpability , aix l Di e vfelater' s histor y o f | { I pto r violadons , 56m e o f

thes e factor s ' * ar c alread y coroidlere dt o som e extoi i withi nth e variou s categorie s o f thi ^ Sanctio nGuidanc e Mafirlx . Di e question s I

nthi s sectio nprovid e additiona l conslderatlD no f th e statutor y factor s an dnantln e th e existenc e o f aggtavailn g an dmitigatin g fooanI na case . Th e agen/attotne y arvwe noad i questio nI nSecUo n1 an ddetasmlne s If arelativ e widgh t

o f minimum , nxidcrate . <

w Roodmu mshoul db e asslgTK dbase do nth e respons e t o th e question . Withth e exceptio na t Quesdo nAl. , no t

al l qfuesaon s wil l appl y t o agtva i faccsltuEatlan . Questio n Al. . whic haddresse s th e natur e o f th e haxardou i melerlal(i 4 Involved , i s th e onl y questio ntha t

atwasy s receive s a ."yes " answe r

t o on e oft b subquesilon s ^ dI s cDijsidetec ] i never y case . Tli e

- aggravatin g o r

mldstitln g factor s xldresse di nIh c question s imt y appl y t o d K cas e whe nth e questio nreceive s a "yes " response . Question s receivin g a "no " nspons B d o no t

aSbc t th e weightin g o

f th e cas e art dar e no t considered . Fo r

esGample , I f

th e violatio n resulte di nhar mt o perMn s o r property , tha t ma y bea naggravatingftcto r i nth e

- case . HowGVB' , tiw fac t tha t th e vlolatlc ndi dno t

resul t i nirtfiir y o r danuge . I s nct amitigatin g facto r art d shoul dno t

lesul i I npenalt y rniUgatloi L I nman y instances , th e answer s t o most , o r al l o f thequesclon s wil l b e "no " an d th e onl y relevan t

weightin g facto r

i n thi s sectio nwil l I w th e ris k catqoi y o f th e materialidentUIedI nQuestto nA.I , I ndctemUniii g th e fina l aggregat e weigh t o f th e case , th e response s t o eac h o f th e question s d o no t

hav e t o b e equall y cofBldered . Detomlnado no f whethe r th e oveml l cas e shoul dhav e a mlrdinum . noderate , o r maximu m weigh t canno t b e determine dwit h Riathemadai l certainty . Generally , If th e answe r t o aquestio ndemonstrate s tha t [h e (acto r

a l Issu e represent s amor e slgniflnn t

aspec t o f th e case , greate r Innsldoratla i I s give nt o tha t fsctor . Th e ^Ina l agpegat c weigh t

i s base do nth e otalll y o f th e facc i no dcircumstance s o f Ji e case . Onc e determined , ih e fina l aggregat e wslgh t

I s the nutilize dt o arriv e a t th e recommende dsanctio nfo r eac happlicabl e violatio ngrou p o nth e Sanctio nGuidanc e Matri x (Fig , 1) , A . Th e Nature , Circumstances . &itent , an dCavit y o f

th t VtofaUo n (Facto nConcetnln g Ih e Shipmen t 1 . Wha t Materia l (s ) Wa s Offered , Transported , o r

Accepte dfor

Ai r Trar»portatlun 7 (Figur e 2 divide s hazardou s material s o f particula r

classes , divisions , an d packlTT g group s Int o thre e rb k categorie s Categor y A , Caicgor v B , an d Categor y C Fin dth e niaierialCs ) a t Issu e i nFigur e Zun dMisure r th e quesilcn s bclow j a . I s th e materla)( ^ olliBred . transporte do r

accepte di nCategDi y A ? If yes . assig naMaximu mweight . b . I s th e mataial( 4 ofTerr d transporte do r

ecoepie dI nCatesoi y B 7 I f yea . assig naModoai e welgTi L e . I s th e material^ ) oBjere d transported , o r

accepte dI nCaticm y C 7 Uyes . assig naMinimu mvceighi . Cufcianni Mate;Ih « megorle B InPlpB * 2 represen t th e Inheren t

ris k o f dangtr I PBl r bmspotitto npose db y th e naanlal . V Oiei B i s mor e tha non e ^jrp

e o f hBEHdDiamaiEfla

l Invulve di n(li e sMimtcn C answer thi s questio nusin i (h ahaaanloi aanaerla l I nih e hl^ws l ris k

enegDcy . 2 . Wha t Quantit y o f

th e Materia]^ ) Wa s Otfeitd . Transporte do r Accepte dfo r Ai r Transportadon T SLpi dIh e packBge{ 4 excee d(h e authtvbe dquantl ^ UmlotlDit s b y a sigailkan t

amoitni ? u yes, , conside r

aModerat e o r Maadrou mweigh t

dcpeuUr ^ o nt> » depe e t o wtili £th e limitatio nwa s occceded . ' OddaaccNMcIlMMatTbtdlttuEsoiIi n Sectio n0 , taha s int o accDiin t th e ActiB l shuatfon s witer e th e qwnti w ibntaatian ate th e raMBlal or e viaeeded . Ihl s pai t tf th e analysl al aintende dto ^aamii mwtMhe r finmcr im^watli ^ dicivBcaiMz e «A t wher e i|iiBntlly limlbtlon s ar * mAwJei i fay a slptlflca mttnmin. Whethe r MM &ao r

i s Bsslpie daraodent ao r

maxiinin nwdgh t

wil l deptft de nth e degie e fay wfilchtii aqaantit r Jtndlatlo nwa s Exceeded . Eaasipla : Th e quantit y Smltado nfb r psolltt e o napasange r

plan aI s 5 Uba s pa ^ package . I T o violato r

offers 3 0 Un nma singl e packag e « napaaenge r ptee ; th b may resul t I namaidinuii i wel ^ Ib r (h b lacair . b . Wer e then : multipl e package s I nth e shipment ? I f yes . conside r

aMod^rut c o r

. Maximu mweigh Ldependin g o nthe . numbe r o f package s an dtota l wtxnjn t o f hazardou s materia l bein g bansporte dI n violation . Cirfdane e Not e A packag e mcar aa peckagbt K plu * It * eoaVtau . Ther t

mM y b e nnilitpl e pockago s I non e shlpmen l o r oveipaEl b Mulllpl e package s ofte

nrepresen t multipl e vi atatloi » Unde r th e Sanctio n Cuidamz . thi s ftct

I s considere da n agpevatfa g drcumstarnc e nthe r Uia nadirec t muldpUar of :h e anctloACo r

eac hviolation , b c b case . howcvB- , mis t b e evaluatei i o nIt s particular beta . A ver

y ktrge-mniibe

r o f pai±a ^ m v remi t

i naud i an.e{ies^«iu s ^Dclha e di

B nvBal t wcigfit o f th e cas e i s s o hig htha t apoiali y b^fm ddi e maaUmu m pnin c J nrh e leng e 1» wammteii . A nInvestigatio nwU

I occssloflaU

y roveal severa l sMpniei B fromth e same offiBo r DV« r aperlD d«t f several ^m , a

Q of whiEhInvolv e vtolsBoo ao

f th e KMl C XJirs M Vidcpendai t acts c^offcrli u ustall y ar e cometidatB dini a on e EIRan dadibcss« dI nOi w Nat e D ( i>Dpoaa dCM I Penalty . Knvew . for puipoBB S 1 ^ determinin g th e appfopriate aanSon . eadisapanteahiprrKntwith a acpaa e ai r

waQrbtt t o r sUppbi g papos , . SBparal e dHOniiloi w and/o r

s v othe r Qiflil i I PI I oTaMlihln i Hel l 11

1 jiw iiii ahlpmee c b enSnarlo r

oonddae da * a separa t irKlden t fvpurpese x cirapp|gdr « [>i e sancUe ngiddanc * aiBlysti . I t I s suggeste dOa t

Ch e teparat e shlpmenb i b » ' treate draindtvldualootBn s b i * ^ ElKan d th e notic e o f

Prupoaei l Civi l Penal^ . wit h, eac hcoun t

havin g si s ow nsanctio nderive d b a nippUothu i o

T thi s guMaoM . Nblc , thia e m i ^ b e mdSdeix . evideiK e t o suppiar t eac h 3 LDi dth e Shipmen t

Caus e Damag e < v Har mt o Person s o r

Property , o r

Interfer e Wit hCommerce ? I f >«a . oMiside r

aModerat e o r Macunu mweight . ' CeWaix e HateiTh e fact tha t n o damag e DQcuricdasariBul t

o f (h e shipmen t

t« no t amitlgBtiii g boar . Howevw , damag e o r iiart n ma y agpwat e th e luaiee , cliaanstancu , ettoe , an dparvit

y o f ih avlolatlen . D^Mndlrvo nih adegte ao f dBKieg e e»Bc d b y thesMpoierxartd/a r

th e ocfaienc anfotha ' aorevatln g (actus , departur e bt nih e ranjp s n a y b e Justified . A Violator' s D^rw mo f CuJpeblU ^ CTh e Matrix , Flgtv e 1 . conslde nth e relativ e culpabilit y o f

th e violator . Thi s sectio no f

th e analysi s fkmhc r

evaluate s th e degre e o f

culpabilit y o f

th e violator. ) I . I s th e VIoJatnrtfi EManufsctura - ct f th e HaBardeu s MaterlaI 7 If yes , cotBlde r

aMaximu mwelgh L GeUanc e MM

K A msiutaturc r

of a hB^vduv amateria ] t s expecte d( 0 hav e complet e knowledg B o f

Ih e natur e of

Ui e hancdou s materia l an dihui . ahig hdegie c o f culpabilit y wi ncnHnaril y b e bnpute dt o I L 2 . Di dSomeon e Othe r

Tha nth e Violato r Prepar e th e Shipmen t

fnr Transportation ? I f yes . conside r

aMinimu moi

r Moderat e welgh L GeldHte e Nete

j Fact s suppomn g a n atlbmtfv c mswe r

t o thi s que«lo nmay b e (SU M t o mitlEBt

e cuIpafaliA

y and/o r pursu aa 

### 530/900 1 SW Q VV d 21?LSeGt?20 2 XV dtO'-l LOLOS/GL/O LlP/13/2li)i a12:5 3 d?522?H30 7 ANM 7 PAS E 07/2 5 

# i 1944 6 Federa l Ke^ster/Vol . 64 , No . 76/Wednesday , Apri l 21 . 1999/Riilc 3 an dREgulatlon a

.sepv^ e enSrccmen t

actio n agains t

othe r responsibl e partie s wh o handle dth e ihlpmi:» C A rhlppc r

that reshlf s maonrik

b iecetve dfiroraanoihi7pci3a n tn th e sam e ^MCkagln g I s Indepvidcntt y responsibl e fc x ouurin g th e ahlpnen t

cornplte s wit hth e HMR. Nevccthekss , 0)e.r«chlpper I s (cnoalh r CEnsldiaedt » hav e aICB D degre s oT.culpauiDlQ

r Ib r oorepliane e o f

I1 B pacKv e I D receive dHewem . if

di e leshlppc r unpad s and/o r

repackage s th e stupniesit , th e Tcjhippc r remaln aB » culpabl e a s th e wigina l shippax m dgoienl ^ I s no t acuutle d mltJ^goUo n uide r tfa b welghdu g IWnr . (Fo

r purpose s o f

thi s seoop aa'tesldpper " afu n t o apB3<ai , DXhc

r tlvotb e original offoor , wh o oK mB ohipment

o f haxaidou aimteria l ti ^ truisportatlen. ) 3 . Di dtlM

t Violato r Reasonabl y Rel y o n Incortec t

Infbtmatlo n Fro mAnothe r Source ? I f yes > conside r

aMinimu mwelgh c tMdaPc c rfotetPei i fcrmitel o r msonabl e icUahc e o n anothiB-TMrr

y ma y be araldgatln c bcto t whertDDieiiiann g tfa

« vlolatDr' s dqpe c o f cu^pabllnr-Fo r

enmpl ^ relitfte e o n a n Iwkxurat e Na«rla l SaR« r nai aShee t

(M5P$ 3 ma y b e mltip>tlr<| - 4 . Doc s th e Violato r

Hav e aHtstm y o f PieviDu s HM RViolation ^ I f yes . conside r

aModerat e o r Maximu mwelgji t <t^.<j.«,^ ^ NoOcT

o establis havlalana n

- histMy . apHwvtcilailanmietbeaDacnjH l lAdb ^ «rvlDlBtle n pursuan t t o • lega l x>jrui.«inen ( •Olon . S|iccial aien H diouI J aCtsonp t te disEcnolti

e Ih c c^p^^vt e stnlctv e o f tf w violate r

an dwlMthcr

otho-bmbies s enUde s o r

name s u * o r

hm e bee n uw db y di e estli y Inerde't e obtai n acomplet e vtoIadonlUsoay.TherManfrerandaaBo r vioIadoi B dwul dI n cnriililpied . Oranvily ,

. nndlagiorvloIaUsnniMeihaiiSynaraol d o n y les s wdgh Lixdo s aooninuln g paittem ofvlolBtia n exists , C , OOie r

FictVK f Eac hcas e mus t

b e evaluate do n It s particula r

facts . A s such , marr y case s ma y presen t

uniqu e scenarli H an d eggravadn g o r

mj.t|g3tin g lacmr s tha t ar e no t toutlrtel y seen . I f

a n aggravatin g o r mitigatin g circumstanc e esds s tha t I s no t adequatel y addreasa delsewher e i n th e sancuo n guidance . I t ma y b e Include dan dassigne daweigh t unde r thi s sectio aTI K

facto r shoul db e clearl y Identine dan dismlalne dmth e analysi s pordo n o f

th e EI Ran dcaiefiiU y scrutinlzc J b y lega l counsel . Culdaiic e r^DteiFo

r «eunplc , ashiptnEnt oF asingl e packag e contalnlr^tievers l dlBbren l hazardDU S material s ma y presEnaa n ^gravadn g Iheter . TJ

mdegre e o

f seriouHHs s U thi s factor

wil l Increas e i f

(h e hasaniou s tnaiKtlal aar e Incempatlbt e vril h^c hetlx x ind . theetfure . <aeat

e m t Ineresv dmk . MldgBting f>ct« n may als o exla t that hav « ne t baon •cfcquattl y oonsldcRd . FM example, » jfalpmen

c eorntalnlng a4 e mlnsni a quaMlQ ^ of iTisneta l fit a n amount

thu'Moul d hav e qualifie dunrfo - th e smal l qumtlty BKEepdo b o f 9173, 4 on y prcco n amltJeailn g Ibctor i r a s arcsui t

thet aw u analucc drisk ' t o saTec y li t eraiuportaUDt

k D . Determin e th e Fina l Aggrcgat t Weigh t o f lA e Cas e AUih e rtaponsesAvelghi s at e evjaluaie dt o determin e aHna l aggregate weigh t o f di e cas e (Minimum , Moderate , an dMaximum) . Questlon arecdvirk g a. "no " respons e wti l no t b e InclucK dIn i h b evaluation . T o detamtn e th e Bna l aggregni e weight , th e aeem/attonK y mto t exercis e his/he r

dtscretlD n i n ligh t o f th e ctatutoiry , fiactoc s an dknowledg e o f th e particula r

lace s o f th e case ; Th e fad s o f th e parQcuIa r

cas e wUI dictat e di e relativ e Importanc e o f eac ho f th e weightin g factm s i n reachin g aflnal Qggre^t e weigh t

Th e fltta l i^gregai e -weigh t ihoiil db e decide da s aresul t o f careAj l analysis , no t

araathonatlca) aveiaglns . I t

i s possibl e tha t

asingl e WBlgbtln e fiacto r

ou y outweig hil l others i Tr w agent/BttofiKy' aanalys U shoul dalwajy s b e explaine dI n thi s regard . Eaanple : A ou e Imfolvifv g akiieardaii s materia l I n th e lowes t

ris k eaiegcM y na y b e ewaluaie dt o hav e amaidinm ) indfh t bocaus ao f

ih aIBI M quantlqr

shippe do r

th e damo ^ iTsuItln s Do

mth e iMpmen

L n . VtOla e tb aMatri x (Pigw e I ) Th e sanctto n ranges'Unde r tli e eSeio r

- an doCens e cstegorle s o f th e SanctlM i Guidanc e Matri x reflec t di e relativ e culpabilit y o f

th e violato r

ari dth e nature , drcaimstartccs . exteni , an d gravit y o f

th e case . Consideratio n o f ttiesepoitlcula e statutor y fictoniind a th e Federa l hazardou s materia l transportatio n la w I s buil t int o th e Matrix . Furthe r

analysi s o f

th e statutor y Eictce s I s require dt o determli B th e appropriat e sanctio n withi n th e range s estafaUsfic dtrade r

th e Matrix . Thi s ano^l s i s peifbrnie di n Sectio n 1 - Alte r determinin g ifae'fina l aggrcsai e weigh t o f th e cas e unde r

th e SecUt n | analysis , daa t weigh t i s applie dt o th e appropnal c matri x rang e t o identif

y th e recommende dsanctio n amoun t fo r eac h o f Ih e relevan t

violatio n group s an dfo r th e cas e a s avidiole , Althoi ^ ih e Notic e o f Propose dCivi l Penalt y ma y cit e numerou s -vIoIatlai B o f apatticula r

par t o r subpar t o f th e HMR , uriles s upwar d depaitur e IsJtstiDed . asln^ e penalt y amoun t fo r eac hviolatio n grou p ( s ordinaril y use dt o reac hIh e ful l saixnlOR . A . tnstrvason s 1 . Identify th e appmpriai e categor y fo r th e 'fyp e o f

entit y an dth e narture o f th e ofFens e Inveh/e dI n th e CK C Rele r t o th e Dcflnlilon s Sectio n rha i follow s th e Matrb c I n Figur e I for guidance . C o t o th e Innasectln g bo x an dIduonf y th e applicabl e sanctio n rang e fo r eac h violatio n group . 2 . Appl y th e conclusio n reache dlr > th e Sectio n Iwrrfghtln g analysi s t o assig n asanctio n amoun t wltht n th e minimum , modentie , ormaiJdmu m portlD n o f

th e sanctio n rang e fo r

eac h relevan t violatio n Qcoup . Th e reconlmende dcivi l penalt y a t thi s stag e i s th e su mo f

th e sanction s fo r

eac ho f th e applicabl e violatlD n groups . A sanctio n shoul dno t

b e assesse dfo r

a violatio n grou p I f

ther e hav e becf

^ i>o -violatloii s o f

.tha t par t o r subpar t o f th e flMI LTh e anctlo n amoun t for eac h vlolatto n gmu p nee dno t b e idoidca l bu t ordlnieil y i s withi n th e portio n o f th e partlcuLi r

sanctio n rang e tiu t repr««9tt s th e ovaa D we:^ t o f th e case . 3 . Depame e fromth e Matri x rangies — Th e Matri x i s designe dt o cove r th e nu)orl ^ o f

cass i involvin g violation s o f th e HMR . Tli c £»ct 5 am i circumstance s o f • pattlcuJa r

ca^ae . bowevQ- , ma y Justify eithe r

^ mupwar do r

downwar d departui v Eko

mth e Matri x ranges . Thi s sanctio n guidanc n avtlcipate s an d enctnjragc s tlcparturefrta n th e Matri x range s wbenjustlBed . A eas e invohrin g violation s I n whic h(h e iiatuie , drcuntstances , exten t

an dgravit y o f

th e inciden t ar e paitlculorl y seVB o o r Bgregioua ; Roy/ucrify ' upwar ddepartur e Dtomth e Matrix . I f

th e Investigatin g agen t beUeves , base dupo n th e iac B o f acase , ifia t

apenalt y shoul dcatcee dth e Matri x rarigcs. th e agen t shoul dconsul t wit hlega l counse l befor e fljrthcr proceasln g o f

th e EIR . ConveR^ly . th e investigatin g agen t

ma y believ e tha t mlelgattn g factor s Justif y atlownwair l depoTBit e Iro mtli e Matri x range . Consulbtla n wit hle ^ couinse l I s no t necoeski y I n th e cas e o f aiccommcnde d poiali y tfia t

i s les s tha n tha t

pto^de d I n th e Matrix . I n eldie r sltuauaa . however , th e ^en t

I s t o pitovtd e a detaile dexplanatio n o f th e bael s fo r

th e decisio n t o g o outsid e ti e Anges . 4 . Violatian s ofPat t

17 S tegulatiDns , whic hestablis hparticula r requLnsnent s fo r ai r caoter aan dothe r

Ainsal t oper^Uxs . or e containe dI n aseparat e monix . Howevo- , suc hopoalor s ofte n olferHazma i fo r

ai r trarsponatlo n a s wel l a s accep t

am dtranspor t

I LA s strch . th e operato r

m^ y b e liabl e fo r

violailon s a s abusine s entit y wlcfu n A e mai n Matri x a s wel l a s fo r

thcspetJlI c Pa t 17 5 violations . ID . Impac t

o f Odae r Statutei y Factor s Th e Federa l hazardou amateria l transportatio n la w als o require s consideratio n o f

a'violator' s ablll ^ t o pa y acivi l penalty , th e impec r o f th e civi l penalt y o n th e violator' s abilit y t o



### S20/i00l ) SW Q VVd 31?L9eet20 ZXV dtO.L L0L02/GI/0 1ltJ/13/201 0 12:5 3 4252271130 7 ANM 7 PAG E 88/2 5 

# f Federa l Reglster/Vol . 64 . No . 76/Wednesday . Apri l ZI , I999/Rule » an dReculation s 1944 7

continu e t o d o Ixislness , an dothe r ^natter s tha t

justic e requires . Conalda^iie no f

thes e faclot s ma y resul t i nadfuabiKn t

o f th e TcconuBende dctvi l penaif y calculate d i nSectio nn . I nsitiiatiidn s wher e th e agen t o r attone ^ I s I npossessio no f irUClgaEln

g infoimutlon . suc ha s inabilit y t npa y th e recommende dcdvilpenaify o r correctiv e acdo ntaken , reductio no f th e recomnoetide dpenalt y ma y b o appropriate . Miiigatlr g Infonnatlo n shoul db e iMlIlclentl y reliable . unconDovute den ddocumente di n orde r t o suppor t

reductio no f

th e leuwnmcnde ddv U penalfy prio r m issub « th e Notic e o f

nrt>po5e dCivi l Penalfy . 1 . Th e bivesd^dn g i^en c wQ l attemp t t o indtid e financia l Infbtmallo na s a n <9chiblt I nth e OR . I t

i s antJclpattt i tlta t thi s Information , i f

available , wil l b e obtaine dfromreliabl e financia l tlat a bases . Financia l documentatio nshoul d include . l>u

t nee dnotbelimite dto , Infianttatla nconcernin g th e violator' s corporat e smKture . biulnes s address , officers , numbe r

o f anployees . an d gros s rsvcAue& . 2 . Th e Investigatin g agen t provide s a statemen t

o r commen t

wit hrejec t

t o th e QnarKia l Infbrmad mobtame J bu t ordinaril y doe s no t

evaluat e th e financial «9>ridltio no f

arespoivfai t

wit h respec t t o to abilit y t o pa y apropose d civi l penalty . Th e investigatin g agent' s A . Ai^iia r

T O i^^Continu . I nRusl,«s s iSTS f ^S^^? ^ " ^ reveiHics . arx l natur e of^usuies s o f th e Historically . tt) c FA A ha s considere d di» e factm s afte r

th e Issuanc e o f

th e Notlea ) o f Propose dClv U Pcralt y du e [ o th e abserx e o f

rcliablf t financial informatlo o o nwhic ht o bas e a

. reductio npl w v

ath e issuanc e o f

a Nodce . TTdi Sanctio nGuidanc e i«c0niinend s tha

Eth e specia l agor t

mak e efibrt s t o obtai nreliabl e InfionnaUoo . TCfpirdlng th e violator' s siz e an d financia l ctndlda nfo r

revie w prio r

t o tl K Issuanc e o f

aNotice . Thi s Infbrmatlonwfl l b e ttansmitvr i t o th e

- lega l offic e for

caisidefailon . I t

i s reco^pilse dtha t

i t ma y ix natway ab e possibl e fb r

th e spcda t

agen t and/o r attorne y t o abtaliiLceUabl e financia l Informade e o napertlrnila r respondent , tha t ilnanda l clrciBi»tance £chang e an d tha t Infbrmado D na y b e provide dafte r th e issuan< z o f

th' e Notic e tha t

may ' wairan t furtfte r cceislderado no f

a respcndent' s abilit y t o pay . violator . 3 . PA A lliewa

l cowise l review s th e Unnida l Inftmiatio nprovide dI nth e EI Ran dei'^uale s It s Mfllcfenc y an d rKlevanc e lath e teeommende dchi l penalty , Li>ga

l counse l ma y determin e If luon t cimtin t InfoimatlD nDdsc s eoncemfii g th e financia l condtdo no f a respondent

an di f tha t Infooiutlo i subseautlaltl y dlOier s firemth e Informatia navaOsbll e a t th e time o f 

# g i^>aratio n o f

th e £IR , U

" thes e I s abasi s >rdetaiiillnii> g tha t

th e receanmends d sanctio nI s inappropriat e base diqm n th e financia l Intbrmatio nprovide di n th e EI Rthi

Erecommende dsanctio nl a a(l)tiste dpila r

t o issuanc e o f

th e Notic e -of Proposei l Civ U Penalty . Thi s I s a ptelinilnat] ^ oonsldesatlo no f a company' s abilit y t o pay . A s such , pre Notic e sdjuistmen t

o f arecomeunde d dvt l penall y doc s no t

preclud e ftxtho MA1TII X AN D DcnNTTIOfi s

[Rgw B M consideratio nof«respondent' s financia l claim s afte r

Issuanc e o f

di e Notice . 4 . Ifle ^ counse l determine s tha t a . resptxide mquallflt aa s asmal l busines s entity , ootmse l liaa

y conside r

tha t statu s unde r th e Smal l Busines s Regulator y Enforcemen t

Fairnes s Ac t

(SBREFA ) wit hrespec t

t o th e appiopriatenes s o f th e recommende dcivi l penalfy . A respondenft astatu s a s asiikall busines s entit y ma y b e cdnsldere di nconjuuictlo n wit hanalyst s o f

th e staiutoi y faaots . S . CorncOv aActio n Th e mos t

commo n"othe r

utaner " tha t th e PA A talte aInt o considcndo nI s co nec u v e action . Correctiv e acdo niJia t result s i nraltleitiohi s remedia l actln n tha t mcceed s th e mimniiu nlega l rec|uirEnKnC9 . Th e primar y factor s i n dfttemlnln g th e appropriat e amoun t o f penalt y reductio nar e tfi e extm t an d timin g o f

th e coirectlv B action . I nothe r words , mlifgatto ni s detemUnc do nth e basi s o f bo w muc hcorrectiv e actio nWa s take nan dho w quidcl y di e actio nwa s taken . Systankl c dung e intended,t p preven t futur e violnaon s shoul db e give ngreate r

consldetMlOi LSimilarly . uunecUv e actto ntha t

commeixx s upo n th e vtolator' s first

nodc e o t

th e violatio n onJlnanl y t s gh« ngreate r atedl t tha n oonectlv aactio ntha t

conmiencc s onl y afte r Ih e Notic e o f

Propose dCivi l Penalf y ha s bee nIssued . Mitlgiitia no f

arecommende dcM I poialn r base dupo ncmectlv e actio n shoul dbe,re£erence di nth e Nodc e o f Propose dClv U Penalt y s o tluB th e responden t

i s o nnotic e tha t

tsedl t aljeatl y ha s bee ngive nfo r sai daction .

ORei\S o catepoAs s I . Declare d SNpmcn : 1 . SHppI vPapen . 2 . tabela > :_ , 3 LlAuktv * ' 4 , Pajdaflhi B 8 . Talfin i ..... ^

.—. 9 , Emer ^ Raspofw e -.- . _ . 7 , Reioas e k>i o BMro n O . 0*Br . A . indMou ^

II . Lfndeola'e^

Shipmen t WKN n Hoima t Quantn yUmJatoi^s : 1 . SUpfle g Papers ?

_label * — 3 . Marldno * « 4 . PdLhuplri s ——._„ . ..„ . ___,.. , ,— . 5 . Tiabim o —- . - ~ : 8 . Qitm f Response —_ 7 . Helaaj a M o Enviro n -.. . „ 8 . Olier . _ , , 250-50 0 260-6D D 2S0-W 0 250-GOO 250-eai o 2SO-1J00 0 250-1,00 0 250-1,00 0 2SO-1.00 0 

### "zea^ficit ' 250-1,1)0 0 250-1,00 0 B . eushes a en %

250-1,00 0 250-1.00 0 250-1,00 0 2SO-1JJ0 O 250-1,00 0 250-1.00 0 2SO-1,00 O 25O'1,00 0 1,500-7,50 0 1,SOO-7J50 0 1,500-7,50 0 1,580-7.50 0 1,580-750 0 l.SoO-7,50 0 1,500-7,50 0 1,500-7.50 0 C . OuMnes a enSi y

maluB M orlW K dleaHazrralb ) m a ooiws B o rbust i>es s S0O-2.0Q O 500-e.oo o 500-2,00 0 500-2,00 0 50O-£M)0 D 500-2,00 0 50CM2,000 500-2.00 0 2,500-10,00 0 2,500-10.00 0 2,500-10.00 0 2,600-10,00 0 2,500-10.00 0 

### 2,soo-io.on> 2,500-10.00 0 2.S0O-1O.00O fi. Busines s entit y

ttuiredulailyot fers, nocepu , o r or b fiazna l ipOD-S,00 0 1,000^,00 0 1.D0»-5jOD 0 f.000-6,00 0 1,000-5.00 0 1.DQO-6.00 0 1,000-6,00 0 i/)oo-s;.aa o 5.mo-iz.oo o 5,000-12,00 0 5,000-12,00 0 5.000-12,00 0 5,000-12.00 0 5.0a»-12,00 0 5,000-12,00 0 5,000-12,00 0

520/800 ® SN Q VV d StigGGtSO S XV d tfO-L L OLOS/GL/O Llpi/13/2yi e 12:5 3 425227100 7 &NM7 PAG E 09/2 5

1944 8 Federa l Register/Vol . 64 . No , 76/Wednesday , Apr U ZJ , 1099/RUJB S an dRegulation s MxTw x AN D DEFINITIONS—Continue d (BBur u 1 ] Oirer» e cotagorto s A.IodlvMtia l 0 . otfssws s arfln y C Busirau s eritii y Iha t UM ao r han lile s Ha/nufl b i th e ooun « o f busr nes s D . Bushes s enlil y

tha t reflulHily o1 - fna , icoeite , o r Hanspo m Hicnia t III . undedara t Shi(*non i Hazma l Forbkldo n on ^ o rewood i qt yUmlt s lor , Possense rAbcnA : 1 , Shippin g Pot>« » —,—^— . 2 , LoiMih : _„• . .^^ — 3 , Marksio a —_.._...-.i.—<——.-. — ,,< ^ Pada^n g —- — S . TiaMi g . „... . e . enaig . ffeapons o 7 . Brteee o ki o Emriren.,.- _ B . OlhOr

_„.„, __- . (V . tit^edan dShIpmerU Fixblddor t en , o r (tor . A l Airaaft 1 . SN|pi*i B Paper s , , — 2 . oi y titnit ! 3 . ruatUnf

p _ . H . Pac*«gln B 5 . Tralnhf

f & Cmors . Reqxne e .— „ 7 , RdPB M Int o Enviro n ,. . a , Oiht x V . IntBnOoral e r

Detberaii e VtotoBon — 500-5,00 0 500-5,00 0 SOO-6.00 0 SOO-S,00 0 500-5,00 0 500-0.00 0 600-5^00 0 500-27,5D D 500-27,50 0 500-^27,50 0 600-Z7.50 0 "sSKZ7,fiM r 600-27,50 0 500-07,80 0 Consu n l^ga l 5^000-15.00 0

sLOOo-is,oa o 5,DOO-1S,00 0 5.000-15,00 0 5.000-15,00 0 5^000-15,00 0 s,veo-t5fi m S.00D-1S,OQ

O 7,500-27,60 0 -7,soo-zr.so o 7,600-27,50 0 7,500-27.50 0 7,500-27,50 0 7,SDO-27.S0 0 7310-27,60 0 7«0-«7.H0 O OonaiJ l Laga t 7,500-20,00 0

7,500-20/10 0 7,500-20,00 0 7,500-201,00 0 rsoaSOflO O 7,600-20,00 0 r.G00-«O.00 D 7£00-2D,00 0 10^000-Z7,]50 0 10.000-2 7 J6D

0 iaoo»-e7,so o 1D^IID0-27,SO p 10^000-27,60 0 10,0(0-^7,60 0 taoDo-27,6o a 10,0DD-Z7J60O OvBu KLega l 10,000-2^,50 0

10.000-27,50 0 10j00O-27,5a O 10.000-27,60 0 10,000-27,60 0 lO/XX>-27.50 a 10,000-27.50 0 10.000-27,50 0 15.000-27.50 0 15,000-27,50 0 15,000-27,^0 0 15,000-27,50 0 15,000-27.50 0 15,000-27.50 0 IS.OOO-'^JSO O 15,000-2^.50 0 ConsiALosa l Ai r<aui(e ran d oli>a rabcxa n epaiBto rvIoMor w E . Gro^ p i « n ai r canlarean d oDie r aJieral t opoialui j F . Qrou p M l £I V alreaniBi aert d e*>or miaa A opop . otoc s •FaBw n t o comptywit h Part e 171,172 . o r17 3 requkemen b « t V « HM R a a ar t efiwora f Hamal.- . tmpiope raceaptanu a v 4 Hasea t fo rai rInnspcitaaa n t^. . quanUiy , labellna , mafUrtt . podBadni L ont a dififlP O papers ) So o 4 0 CF R175.«) M m-< ^ ^ Falur e I D Inapac l Hazma ) aH^moi l pfp^rty . Se e 4 0 CF R 17S.3 D (b) , (l4 . (d) . M . imprepe rsnageftecurtn vo fHBzma t aboar d alrcran. , _^.. , , _. . , FalKjr e l o prtrWd e Hsama t tralnlns , iraiHbi n record s i ^ tnilninp , o rmea t rnlnimu m re<|i*aniani * f ^ Hazm M •*»» # —_

_. -

_^ - _— i -,.„».. , PaSui e » • noU f FA

Aprepad y<

d fcaidenWfcMepareJea i n Hiizme t ahf^ntisi l ; _ Palltlr e a » prevW e «lalka » tt» Ih e pBrt-feKomr^nX

l othe r Fa n 17 6 'vioiaOana..-, . _,,___„.__—..„„...__..... . ,. _..__.. . 

# r > 5.000-^7.60 0 IOtOOO-27,50 0 10,000-27,50 0 10,000-27,50 0 5,aoo-ie.oo o 5,000-16.00 0 5.00O-16.D0 O 2.500-15,00 0

5.DDP-1S^009 5,000-15,00 0 $,000-15,00 0 1,000-6.00 0 1.000-5,00 0 1,00O-£pO O

'•Ut e (TMl n MalrlK . JMBnlHon a • (ajAl r

Carrie r

an< ^ Cthe r

AJraa A Opcratc r

Croup s ( C U . tU , fV^M r camer aan detho r

aircraf t operetta s at e divide dint o tw o CBlegorle s fo r purpose s o f demmlnln g a n appropriat e sarjction . Tlies e categpale s bad e th e ai r carrie r group s establishe dI n FA A Orde r No . 21S0.3A . AppencU x I , Compliance / Enforcemen t

BulJ,etl n 9^1 , bu t

ab a InrJude s an y operato r o f a n alrcral t

tha t I s opoate d"I n commerce " a s define di n t h e Fbdera l hazardou s ntaterlal s law , indudlnglV t

12,9Foreig n Ai r

Carriers . Pat t 12 6 Opentors . an dPart9 l Operators . Crou p I I s cnmfnisedo f ai r carrier s an dothe r

aircraf t operator s 'w^t h iTknxia l operatin g irevenu e o f ; 100,000.00 0 o r

moie . Crou p I I i s comprise do f

ai r carrier s an dothe r airaaf t operator s tha t

hol dPar t

12 1 certificate s a t

hav e 5 0 o r

mor e pilot s o r operat e 2 S o r

mor e alrcral LwlU i annua l operatin g revenu e o f les s tha n Sl0D.00dlK10 . Crou p i n l acomprise do f •i r caBlei s an dotht f

aircraf t

operator s tha t d o no t mee t th e criteri afb r

Crou p n wit h(1 ) 6 t o 4 9 pilots , o r (2 ) 6 t o 2 4 alimf t Gntu p I V i s comprise drfaH ethe r ai r taitricr s o r

alrccaf t operator s rx x nteetbig ; th e criteri afb r (>oup s I . n . orlD . (b ) AifXmu s iDxfcy—Th e vlolaiD r i s a busbiess . corpoiatlDn , partnership . Sub S Coipotalion . sol e proprietor , assodadon . o r

•a mfype o f

commercia l entify . A n Uldividua l vtrh o oflcr s a ha2m.1 t shipmen t

i n ai r transportatio n i n th e cours e o f

his/he r self-owne d busines s faUl s int o till s categoiy . Include s al l entitle s denne dunde r th e HMR' s d^tiiliio n o f '"person, " (4 9 CF R 171.8 ) wit hth e exceptio n o f a n Iiklivlilua l a: s define dherein . (c ) Busine^ aSnat y tha t Feguiarl y Oifin . Acettpts . o r

TVanfpon s Haxvxioij aAfateifaJ s i n th e Coiirs e o f it s Business.— A ttianufacturer o r distributo r

o f Hxma t

fall s Int o tlU s catKory . A &«lgh l forwaadc r woul dals o fal l int o thi s catepiy . Th e aspec t o f

. "regularly " offerin g cover s abusines s cnd ^ tha t

vffa s Mazma t

wit hsom e antlcipaite d&ei|u«nc y o r purport s t o d o so . e.^ , acatalogu e compan y tha t vBk n hnardou s tnatetla l t o it s castDmers ' -woul dfoi l Int o thi s category , eve n thoug hli s acttia l sal e o r traisportado n o f th e Hazma t

I s Infrequen t

o r limited . (d ) Busdit^s v Entit y tha t Vf«s . fforidle s ttazjiio t I n th e OotL^ c o f

It s Business — Thi s categoa y encompasse s th e busines s tha t utilize s Hazraa t

I n it s bislnes s bu t doe s no r

ofie r i t fb r traruportatlo n D » a regula r basis , a s describe dabove . Fo r example , amanufacture r o f anon i-Uane t produc e tha t

use s Hatmo t

i n th e marrufacuirin g proces s coul d&1 1 Int o this * category . I t

mxB t b e establishe dtha t

SSO/GOO l 

## sw a VV d StLSGGtSO S XV d S0:L L OLOS/GL/O L

### lB/13/201t ) 12:5 3 425227100 7 ANM 7 PAG E It)/2 b



### Federa l tte^sta/Vo L64 . N a76/Wednesday , Apri l 21 , 1999/Role s an dRegulation s 1944 9 th e compan y ordinaril y doe i nu i offe r h e HaatMtl t

utilize s fo

r tfansportatlon . dndth e shipmen t

I nthi s Instanc e leprcsen b mIsolate dinddcn LTill s typ e of iKBhes s I s hel dt o ahighe r standsr dthanth e btolnes s endf y tha t ha s n o regular

involvemen t

wit h Ha2tnat . Th e describe dbioines s entit y receive s th e subjec t

hassAdou s materlB l ' Intransporbtio nan duse s It I nli s buslnss ; thus , i t

i s dearb ^ o niwtlc e of th e haxanlai s natut e of

th e matarta l an d th e r^ulatn y na^ulremeniB t o whic h th e fbEinat b stree t (e) Veden dShipmao— A declare d shipment , fb

r p^spose at dthi s rtkatrix onfy . t s on e tha t

CMttplie s wld i on e o r mor e oCthecorTeniffllcatlv e requirement s o f

th e HMR , Le. . K

ha s martdngs , labels , and/to r

panially i cDirec t sfilppin g papers . A packag e tha t ha s shlppb s paper s tha t

decla e th e •aontent s a s haxairdou s matCTla ] bu t i s Otherwis e la t

marke do r

labele dl&U

s int o thi s category . SlmUorly , aproperi y marfce dan dlabele dpackag e tha t lack s shippin g paper s ab o fall s Int o tfa b cate f oiy - A cas e iaU s int o thi s caiegoi y wher e ther e b clear

Indlcatltmtha t

,th e ofliero r mad e som e attemp t

to giv e notic e o f th e hazardou s natim s o f

th e -shipment . ,- ' ( 0 FoititUe no t

Sxcerd s Quantif

y limit s fo r

Passtngt r

AAtaaftA shipmen t fall s Int o thi s caugg/it

y I f th e quandc y o f

Hazmo t perpaclog c ekoeet

b th e <|mnHQ

r llmftadon s fo

r passengercarryin g <klrcnf

k o r I f th e particula

r hazaidou s materia l b ietoklde nI nal r transportido no npassenger aircraft . circumven t thos e requlxemenb . Fo r example , anofleror

wfx > pbce s a propivl y marke dan dlabele dHazmat shipmen t alon g -wit hproperl y complete dshippin g papcis , into a n overpac k marke da s 'pilnte dmaterial, " (g ^ Fctbtdda i a no r

fiiceedis Qtmntrt

y ha s committe da nIntentional o r liOiftt he- A nAlmaA A shipmen t wil l fall Int o flli

b categoi y If

th e quantity of hazardou s materia l pe r

pacluig e eicced s th e alkiwibl e amoun t

fo r bot hpassenger an dcarg o alroal t

o r th e Ftazma

t b absohiteb r fbtblddc nInai r trampoitiidian . 0 4 Jbzmat-- A "hazardou s materia], " a s define di n4 9 CF

R171.S , include s an db Inbarhangeabl e wit hth e ten n "daiipaot agoods, " « s tsedl ntlte InttitnUono l Clv

U Avlatli m Orpnlzatlo nOCAO

) Tedsdea l InstfvicUoris . (1) /nd^id;IlB{—A

nindividua l wh o oOo s ashipmen t

o f heaautlou s inaterlal i nhis/ho - persona l capacity withou t atiy busines s purpos e o r

a s pa nof a coramercfa

l uiterprfs e « nth e par

t o f tl M IruUvldual L

. ( 0 fatenaona l o r

Doinerac e VIobthHi—

A shipmen t

£d b Int o ttib ' categor y whe nther e I s cnddeno

B du t th e oStiDr . ao»tor , ai r

cants , or

aOcrsf l upcrato i tiatl liTwywledg

c ofih e requiranent s o f

th e HM Ran dwHlflill

y circumvente do r

attempte dt o RIS KCAlEQORIE S IRgurv2 1 

### delibeaalB vloIaUon . I nth b t)ipe of case , th e Irtvesd^tit magent

shal l oonsulr wit hFA A legal counse l an dfollow agoi ^ gutiiainc e for

potential crimina l violation s of

th e HMR . ( M Uidiecbre dSTifpmenf—Th b i s a shipmen t tha t ha s n o Indicatio no f

it s haardoi u material content s and/o r n o tndicatlo athat

th e offeior commtmlcabe d(h e hazardou s natine : c f th e shipment' s content s t o ptsso mwh o accep t o r transport . 0 ) mtlii nHaama t

Qumtit y Iin(tariai»—Th e amourtt t t hazardou s materia l I s withi nth e quantity limitation s pe r

padcag e a s cstablbhe dI n di e S172JO l TaU e (4 9 CF R172.101 ) fo

r th e qrp e o f

afroaf t o nwhic hdi e shipmen t traveled.:Po r

example , if

th e afilpmen t wa s offere dfor

transponatlo n o n4 passoige r

alroaft , th e qOantlt

y o f hazardmi s naterlal-wa s Dritnl n Ih e establishe dlim nfor

iratQporiatlo nb y passenge r alrerafi . H th e shipoten t

wa s offere dftv tiansporotlono nacaa^ o alraalk . th e ({uantlt

y llmltatlotBliDr carg o aircraf

t apply . cartefligr y"A " (Uaahnu n Welight t Calepor y*A ' moteilal a a m mataria b ff«l w*» n rataaeo d b i ih a Aufbe e e f a n aboaf l car t potenSaDyho wa caBseephi e cflect o n M BIT OBn' a abiit yt o conttw e saf e ffighl, tasiMn g h a cras h o rtirmiganc yfnwMn a cauefci g InM yo rdoatf k l o passenger s an d flls^lavrr. a s we R a s person s o n A « omund L Eaptoslwu cDWsto n 1.1,1.2 . I. a Conpressa d Gaaa a A l 2.1 , Z Z wtt i GuMUlai yRiai cSt l ivu t A S 2. 3 PI H zone s A-D . FtannwM e Uyik b P G I . II , wi d (PM . DMalo n A l FlaiMnabI a SdK k P G I . & (biaicites) . DMs)or » * a fiponianeeiavCunbtfslftin t IMoilat e P O I (Pytophodc) . nvHo n 4 J Dangerou s Whe n Wa t P O L DhMo n SL

1 OgdUfeclnl i UcpjUsan d SDlIi b P S I . M , e.g. . -Ctanta a Cbcyp m amerabm" . tMsio n 5. 2 OtflWii e Peroifde a PQI I (Typ e AB , C , o rD) . DhMe n 9. 1 Pobenot s LitMd a P Q I (PIH) . C«ti e Alrcial l OrW

rOuonil f a s o n PaaseriDa rAlroaA . Oonoslw * Maiei U Uait f P G I lan d (PIH) . FoMdife n UalBrbU a (Se e 4 9 CFf t 1732 1 & (CMOTachnia U tnalrucPons} . Forbidde n Hasena l Ksle d I n Dangemu s Goed a TbM a 4 0 CF R 173.101 . CaHfler r' V piaJeml a Welphi ) isas s 1 Ctaa s 2 Cla B 3 Cloi a 4 „.. . Clas s 5 - . daas B .. . Class ? _ Ctas s B .. . I h a maiaiial s Ishs d b Calaijory"d * ar e maleifal s Ha l ma yno i pes o a n ^mcdiai a firaa i t o Dt e safet yo f a Msh t b u ca n tai ^ deal t o rtr

v |ui yb person s ib a l o unMnnda d rolsass s k t abaa t eabtr t imas , an d poienffa l danms a t o akcraf l sinjclui wv* a a lon ^ perio d o l in wdu a l o urxfcooveie d release s o n ofecfaf t simehin d oomponents . Cba s 1 OMslo n 1 A1.5, . 1.0 , A l CorrxMiVbMt f Qroups . 

### Claas 3 P GH I Fbmmafal aUqiMa . Ctae s 4 —DMslo n 4. 1 Ranmabl e SoM s F> G 11 . iH . J DMsio A4 2 Spontbneoinl ydaribuslM o Maiarta KPQ iH . OMalo n 4. S Danganw p Whe n We t P Q • , III . OBS S 5 .. . VMOt^ n 5. 1 OKMM Q Liquid co rSoHd a P Q II L Orvlalof ) 5 2 Organi cPeroiMB a (IVp o € , F , G) . Ctas s e DMslo n B. 1 Pelsenou s UqiM cFt S I , I I <NON-PIH) . DMslo n 6 2 Infedou s Siiistaneos .



### S30/0L0i a 

### SN Q VV d StLSGGtSO S XVd 90:L L 0L03/GL/0 L

### 10/13/201 H 12:5 3 425227100 7 ANM 7 PAG E 11/2 5 

# € 1945 0 Federa l Reg?ster/Vol . B4 . No . YS/Wednesday , Apri l 21 , 1999/Rule s an d Regulation s RISS KCATEGORIES—Continue d (HuuieZ ) Class ? _ Oass B . . nadoadfr a MalcrtaJd L yabn e hbn l HI . yalh wlabe l H , and whtt a lalw l L Uquk b PO II , U l StUd s PC I 1 . ii . n . Caiiegor y'x r(Unlmu m WMghi ) Th o iDateiial s Iste d I n Catogoi y" C ar e mateHato Viaipiesen t th e leas t anwiailo f itsfcl » li e transporuHo n system . Cias a 2 .....-„„.... , Clas s 8 Clas s 7 — — Clas s O Z. 2 NonSamirali b GD . DMtlo n 8, 1 PoeUn g Qnu ^ Ni l A l QSE TRA M OLSA , LT D Onr . Irhniwieni a an d ArDdas) . Mlaceteneou s Dhngenau e Bood s (ORM- 0 an d Consume rOorrtmodtiF) . Ne» ; IN rguidanc e I » na l bitonde d l o le^ac e Bi o a:iparier)oe d Judoma m K » a apoda l aaan t «h o b vunvnmi , base d o rifk o widDiic n an d rac b o l a case , tha i 9t o wiur e o f a n ai rcatttor . cMppor , frejg M Pwwaithir . o rpassange rt o ioUoi veslaMUte d reguiaaort s ha s pose d a ris k t o avfaDo n saioly . Issue dI n Watthlofton , P C o n Apri l 14 , 1999 . lan e F . C*«eyi , A doiri^SiiBfDi ^ [F RElDc . S9-99& 3 File d4-20-99 ; 8:4 5 am ] aajjN aCOP

K «i»-ia.4 i ^ECURTTIE S AN D EXCHANG E COMHHSSIO M 1 7 CF R Part s SDZ , 240 ^ 24 2 an d 24 9 L Batitgrvun d

R mnmrac RMFOimA-no N COMTACT ; Elizabet hKing . Scsnlor

Specia l Coiauel , a t (202 ) 942.4140 , Conalanc B Klgglns . Spedta l Counse La t

(202 ) 942-0059 , an d KevinEhrlldi , AUamey . a t C202 ) M2 - 077B , DUvlslono f

Marke t Regidaitan , Socuritl s an dBxchang e Commission , 45 0 Fift hStreet , N.W. , Wasldngton , D. a 20&49-1001 . sunpuNENTADYwonuAim : {RBlasa e K a 34-41Sr t FH a Ha . S7-12-a q

. Regutatlo n o f AHemaUv o Tlvtfln B Syetenw ; Technica l AmenAnen t AeENCV : Securitie s an d Exchang e Cominlsslon . AirnoM : Pina l rule ; technlo l amendmen t an drevise dcomplianc e tbte . SUMIUftf; Th e Securitie s an dBxthang e Commissio nb nodlQin g th e compUanO ] date s fo r

I^ul e 30 1 (|b)(3 ) an d makini g atechrJca l chang e l o Rul e 202,3 . Thes e an doUio - rule s an drul e amendment s relat e t o th e regulatio no f alternativ e tradin g ajistem s an d cxchar^e s an d-w^ mpublishe do n Decembe r

22.199 8 (6 3 F R70B44} . TTie effectiv e dsri e for

th e othe r

rule s arx l amendment s publishe dI n6 3 F R7084 4 terrain s Apri l 21,1999 . eaccep t fb r th e effectiv e dat e fo r

5S242.30 I (b)^(l)(D ) an d( Q andSS2'4Z-3OI(b)(6)C0(D } an d (E) . -whic hremain s Apri l 1,2000 . DATES : EfTcctiv e Pate : Apri l Zl . 199 9 fo r amendmen t

t o S 202,3 . Cbmrp^fanc e Date : Altematlv o tradin g system s mus t

ctwnpl y wli h SZ42.30 1 (b)( ^ -wit

hrespec t t o th e 5 0 securltiE s liste di nSchedul e A b y Augus t 23.1999 : wit hrespec t t o th e securitie s liste do nSchedule s A an dB a y Septembe r

2E . 1999 ; wit hrespec t t o th e secutltb s liste do nSchedule s A , B an dC b y Apri l 25.20D0 : an dw^t h respect t o al l securitie s b y Jun e 20 , 2000 . O nDecembe r 8,1998 . th e Seciride s art dEzdiang e Commissio n C'Conimlssion" ) adopte drte w rule s an d rul e amendiaene s t o allo w alfiemaUv e tradin g system s t o cliOos e whethe r u > roBbte r ;i s natiom l securitie s exchaeiges , o r mregltste r

a s bfbVer<kalef s an d compl y iwti haddideea l rettuiranen b tuide r RiiguladonATS , dependin g o n thei r activitie s v dmdlri g vohmMt * Th e effecttv B dat e fo r

mosto f thes e t)e w rule s an drul e unendment ab Apri l 21 , I9Dg . Th e Commiaslo nstate di ndi e adoptlr^ , releas e that , prio r t o Apri l 21 . 1999 . I t ^voul dpublis halis t

o f thos e tecurltiia s wit himpec t

t o whic h ^Jtemaiti' e tt»dlre^/9tan anau r compl y wit hRuli ! 30|(b) S o nApri l 21,1&9 8 an dthe^ : occur^tle s wid i respec t l o whic hataimatlv e trailirt g Mstei w mus t compl y wit hRul e 301 M 0 ) o nAugus t 30,1999 . Rul e 301(b ) ( ^ lequlrcsa n aUeniatlv e tradin g sjiste mt o pnMd e t o anationa l securitie s eaKhong e o r nadona ] lecuriile s assoclatlo afb r tndtislo nI nth e publi c quotado n system , tli e price s an dsize s t> f It i bes t price dbu y an daal l cwden . tha t w e dispbyad i to-mor e tha non e powm , i n eac hcovere dsectri ^ i nwhic hth e altomatlvi e tradin g syste mr^iresent s 5 % o r mar e o f th e ti>ta l tndin g volume, ' > SMwia«ettaiqeAaRe)ajeN« . (»7> 0 |P«c . I . am , ai«T0M4(D K JZ . 1991) . * I T CF K 2<I2JDI(H(39 . For

ptapeo s it

f |tr{uliU»r»AT5.''^coii«Rdieair|pr"lrriiidc»al l udiamC'lliitd , MasihqK M sKvtiUet , wii

l Nnda q Smal l Ca p mairiUex . oUu r

OiB i dd k an d CMr*enMvii!CWIOa . Sirllul e llAcl-l|i)(e) , I T I LDdoL

y e f ih e Comiillanc B Date s Gbr Rul e 3Dl(b}Q ) On e nu}o r

alternativ e tradin g syste m ha s irvUate dtha t

i t Vri U b e enabl e t o compl y wit hth e requirement s o f Rul e 30l6)C3 ) b y th e origina l compUan a tiate s withm nputtin g th e operatio no f it s qme ma t

seriou s ib k

o f failure . Th e opetatiima l bilur e o f

o majo r ahematlv e Hadin g ^ste mcoul dInterfer e -wit hth e market s a s awhole . Accordingly , th e Conmibslo nbelieve s I t necessar y t o sd|us t th e conmllanc e date s fio r Rtd e 301(b)(3]asfonow3 : Augus t 23.1999 : CompUant»-wit h Ruh i 30 1 (b)(3 ) V

4 ti l le^Kc t

t o th e 5 0 Nasda« | securitie s Bste do nSchedul e A , attache dI nth e ^pendlx . Septembe r

28,1999 ; CtmipUanc e -wit h Rul e 30 1 (b)(3 ) fi r

A e 50 % o f

Nasda q securitie s liste do nSchedule s A an dfi, attache di n th e appendi x Apri l 25 , ZQOQ

t Compliano e wit hRul e 30 1 (b ) O ) fo r

th e 75 % o f

Nasda q secavltie s Uste do nSchedule s A B , an d C . anaehe dI nth e appendb c Jtm e 20,200f t

Complianc e wit hRul e -301(b)(3 ) fo r

al l Nasda qsecuritics u Schedule s A B Lan dC wo e create d b y rankiii g al l ctrvere dsecuritie s trade d o nNasda qfey thei r

Januar y 190 9 volume, , an diiid.udln g a nequa l mimbe r o f securitie s lh> meac hdecile . Som e securitie s tha t

wer e no t

trade do n Nasda qI nJamiat y 199 8 ma y corametrc e tradin g o nl^tasdaqsubsequently . Alternativ e tradin g system s ma y wai t unti l Jun e 20,200 0 t o compl y wit hRul e 30t(b)C3 ) wit hrespec t

t o thes e sectiritles . Al l othe r complianc e dale s fo r

th e nile s an drul e arrtendmen B adopte dlas t Decembe r

rcmaif k ili e same . Th e Cemmlsslo nencourage s thos e alieniaUv t

nailin g system s tha t

ar e abl e mcompl y wit hRul e 30 1 (b)(3 ) o n Apri l 21,199 9 t o d o so . CF S £40. 1 IAcl- 1 W(ei : Riil aSlKKg). I T CP R



### S30/LL0i a 

## sw o VV d StLSGGtZO S XV d SOI L OLOS/GL/O L

### 10/13/201 0 12:5 3 425227100 7 ANM 7 PAG E 12/2 S

Federa l Registcr/Vol . 63 , No . 107/Thursday , Am a4 , ]995/Rol.e s an dRegulation. ^ 304U . rh e criteri afo r

asigniTican r

reguJstor y feicuonur-i(-,l'i

r Executiv e Orde r

12866 , Thus , '[ r -w? s no t suJjJec i tc

i OM1 3 review , ReguJ.yini y Plexiblht y Ar t W e c.o.n.\f

y tha t rhj. 3 rrgulado n•W'-i!

) no r hav E0 .significan t

economi c impac t

o n < i siibstanrla t

numbe r o f smal l entities . Therefore , aregulator y flexibilit y analyse s a s provide di n rh e Regulator y Flexibilit y Aci , a s amcnd<9d . i s no t re.civired . Paperivoi k

Rt^ductio nAa r J•hi ^ icgulacio n-impose s n o reporting / recordkecjjui ^ requirement s necessitatin g clearanc e b y 0MB , (Ciii.iloii j of Federa l Domesti c Assisranc c Progra mNos . SS.OOJ . Socic J Se.curicy Disabtllt y Insurance ; 96.0DZ . SocialSecuril y Retirt-men c Insurance : 96.004 . Socia l Security-Survivor s Insurance ; 9B.006 , .Supplornuncal Securl-iy Income ) Lis t o f Subject s i n a

O CF RPa n 40 4 AdmiriifU^tiv e practic e an d procedure , DIin.d . Pi^abilic y heneflTs , OJ.d-Age . Survivor s arx l Dl.sabjllr y JniLiranre , Keporrlnganr f recordkeepin g r<;qijiremenr5 . -Socia ] securiL-y . D-ii:n<J ; Ma y 27 . Ii99S . , ' Kennet hS . Apfel . Commiifione r

ofSocin l SccwlJy . Fn r th e reason s se t

fort hJn th e preamble , por t

404 , siibpar t

P . chapte r II I p f titl e 2 0 o f

th e Cotl e o f

Feder s Regulation s j $ amende da, ^ si»t fort h tielow . J2 . NeuroJufiiCii l f i l.OOsin d l i l,O0):Jiil y) 1999 . IS , rnwiun e Sy.-ii'e

m(HO O an dmOO)

; Jul y 1 . 1999 . * * • + * rP RDw . 9;3-H59 Q Filo<

i 6 - BILUN GCOD E4l.ilO-2S~ P DEPARTWEN TO F TRANSPORTATIO N Researc h an d Specia l Program s Administratio n 174 . 4 9 CF RParr s 107 , 171 , 172,173 . 175,176,17 7 [Notic e No . 9B-6J Hazardou s Materials : Forma l Interpretatio n o f Regulation s AGENCY : Rwesrc han dSpecia l Program s AdmjnlsrraUo n(RSf'A) . DOT . ACTION : Forrna l interpretatio n p f regulations ,

PAR T404—FEDER^V L OLD-AGE , SURVIVOR S AN D DISABILIT Y INSURANC E (1950— ) Subpar t P—[Amended ] I . Th e aurtiorit y citatio nfo r subpar t P o f par t 40 4 continue s t o rea da.- ; loWov/s : Awthority ; Socs . 202 , 205(n) , (bj , an dfd)- . (li) , 2iii(i) , 22l(ei ) an d(1) , 222(d . 22. \225 . an d702(a)(5 ) nfth o Sorla ! Seenrii. y Ac t (42 US.C . 102 , iQSCa) . (b) . an d(*-(h) , 4lf5(i) . 0?l(a ) ari d(i) , 422(c) , 423 . 425 . pji d 902fa)(S));sec . ,:>Il(b) , Pub . L , 104-193 . 11 0 Stal . 2705 , 2)i*<>

. 2 . Apjjendi x 1 t o subpon , P o f par t 40 4 !,•; aniundec i b y rovfsin g itenn s 1.3 , 11 , 12 , an d,1.1 ; o/ti-i e tntroductor y tex t befur e Par t

A f o rea da s follovys : Appendi x 1 ( o Subpar t P—LisHnj ^ o f Tinpairmertt s

* , rt •» ' " ; I . Grot-v^S i Impairrrie m ( 1 00.00) ; Jul yI , 1999 . ' T, 1 T » • 3 . Specia l Sense s an dSpeec h(2.0 0 an d J 02.00) ; Jul y 1.1990 . ,*••! • + X I II , MiiUipjo . Body Sy^ie-ri.'i 0 10,00) : lui v ) suuHARY : Thi s documen t publishe.' ? a forma l interpretatioi i o f th e I-Iazardou s Material s Rpigulatlon s (HMR ) concernin g th e re5ponsiW.ULie s o f acarrie r whe n accepdn g hazardou s rnaff:rial s fo r intnspoi-tBtlo ni n commerce . Thi s interpretatio ni s bein g publishcc ' m orde r t o facilitat e bette r

publi c undarscamUngan dawarenes s o f th e 

### HMR . EFFEcnVEDATE: ,fun e 4 , 1998 . FO RFURTHE

RINFORMATIO

NCOhO-ACT

; FrHze r C , Hlkier , Offic e o f

th e ChLef Counsel , Researc han dSpecia l Program s Administration , U.S . Departman t oi F Transportation , 40 0 Sevent hStreet , 5W , Washington , D C 20590-00001 ; telcphon ? 202-366-4400 , SUPPL6MENTAR

Y INFORMATION : A, S par t o f it s imple,menratio no f

tht ! Federa l hazardou s materiB, ! transportatio nlaw . 4 9 U.S.C . 510 1 *t.«;?. . RSP A issue s th e Hazardou. i Marcrtal s Regulation s (HMR) , 4 9 CF Rpart s 171-180 . Fro m rim e t o time , RSPA' s Chie f Counse l issue s iorma l interpretation s o f th e H^fR , l.'he.'i e Interpretation s generall y involv e muIri,iiioriB l issue s an dar e coordinate dwit hth e othe r DO T agencie s wJijch , togethe r wit hR5PA , enforc e tn e HMR ; I'edera ] Aviatio n Administration , Federa l Higliwa y Adminisaarion . Federa l Railroa d Administraclon , an dUnite d.State s Coas t Guard . Thi, s documen t publishe s aChie f Counsel' s intwpretatio nconcernin g th e responsibilitie s o f

acarrie r whe n acceptin g ha?-,a]"dou s matftrial s fo r transporrntio ni n conimcrcR . 1 hi s inrerprctatio naddr-pssR S i.ssue,> ; raiye di n aI*iri:ei ' b y Mr . £.A . Alttimos , o f HM T Associates , f^n di s consisten t

wit ha n Augus t J 9 , 199 7 writte nrespons e ty Mr . Altemo s b y R.SI-'A' s A'ssociat u AdTOJiiisTj-ato

r forHazardoti s MareriaL" ; Safety , I naddSUo nl o thes e inTrequen r forma l 3 .93 : Sr4 5 Bm ] Interpffcration s b y RSP A s Chie f Counsel , RSPA' s Offic e of Hazardou s

. Material s Standard s provide s

~ informatio nan dinforma l cl.arifle?,tion $ o f th e HM Ro n a n ongoin g bjisis , throug h(I ) atelephoni c informatio n csnte r (l-80()--167-4922 ) t o an,?we f ora l quejtiori s an d(2) informa l writte n interpretation s o r

clarlftcation s i n respons e t o ivritte ninquiries . RSPA' s forma l inCerpret.-icion s an dinforma l lette r clarification s (an dadditiona l Informatio nconcernin g th e HMR ) ar c als o availabl e throug hth e Hazma t Safet y Homepag e a t

"'http:/ / ha^mBt.dot,gov. " I n addition , sum e o f RSPA" ? interpretation s an d clarification s ma y b e reproduce do r summarize di n sclacte dtrad e publieatinns . Fui'Che r informatio nconcernin g th e fivailaWlit y o f

infon-nal . guidanc e an d intcrprerarion s o f

th e HM Ri s sc r

forth i n4 9 CF R107.14 . RSP A believft s chat , publicatio no f

lt, s interpretation s shoul d promot e abette r

understandin g o f

th e HM Ran dimprov e complianc e wit hi:h f HMR , Issue di nWfijliington . DC , o nM.I Y 28 . 1998 . JudlEhS.KalEiB , Oii6fCounsel . lint . No , 98-1 ) Backgroun d Mr . E,A , Alterrros , HM T As<;cicia«« , requestet l clwrlfJcalio nof requtromenc s i n di e HM Rconcernin g a nfl,(r

czurler' s acraptanc c ot package s containin g har^rdou s m«nsri,ils . Thi s ingulr y concerne donl y th e corrier'.'^ rasponslbilitle s relatin g l o hazardou s matErial s offere db y anothp r pcrsoi-i , an dnoi acarrier' s rransporratio nof It s nw nmaterial? ; y r products . fFo

r informailo no na nr-il

r carrier' s cran.ipijrLaiionof i' s ov mronipajiy mai,erials . o r

'"COMAT, ' ,?•(?

? "COMA T FACTS " In kSPA-sJ.onusry 199 8 Safet y Aim . availabl e o n thr

r Haizma t Safet y Homepngc. ) Alrhous hMr . Alccrnos s quesdo nwa * pnsucli nth e contex i o f

aj r trarjjpertstion , th e HM Rreqii/rement s dl.v.-us5c dI nRSPA' s inmrptecatio nappl y l o carrier ; t y al l mod f o f transportation . Inicrpr*taiin n Bssi c requirrment s i n th e HM Rse t fort hin 4 9 CF R171.2(a) an d(b) , an dapplicable , t o carri'--'' ^ J nal i rnoda s o^lrnnsportntion . ar e [hat n o perso nmay accep t ahazardou s materia l fo r tr^nspurlatio ni ncoriimerc c unles s ^ " ' th e hazardou s cTi->ieria

l l,s pmporl y cLisSed , Clc3crlh(jd . (jackaged - marked , labeled , an dI n condirlw i fn

r sl-iipmcii l a.

^ itauirp do r 

### SSO/SLO ® 

### SN Q VV d StLSSGtSO S XV d SO:i L OlOS/GL/O L

### 10/13/201 R 12:5 3 425227103 7 ANM 7 PAG E 13/2 5



### :i041 2 Federa l R«gj.sier/Vol . 63 , No . 107/Thursday , Jun e 4 , 1998/Ri.ilfe. s an d Regulntion ? uuthoi'i^ei' l li yiipplicaljl f i-cqi.ilrniiionL' ; o ! fih e HMKl . o ra n e.xoinp i Ion , npprova l o r rpgisrrfltki n issue d unde rftb « HMK ) " " ' ' tran.spo n a K.vr.tirdrjii ? m.\li;ri^ l i n cui-nnisrfe : unles s ' ^

' ihp , ha;:-!irdou: » ni.vcria l I s handle d an d xnirirpcn.er j i n a(:rord,?nc e wjtl i appUtahlf t requirement s o rItb ? HMR) . o ra r excmpTjon , apprav,il , o rrefii.<:t;i-ario n i.^j-jL- d UTid-Tt rfth t HMR 1 ' * ' Acarrier' s arccptvic e an d traajpon;ati« n o f t-<.i!!;9rdou." ; malerisl s C-JJ I mvalv e aevcia ? differen t silvittlorK , includini ; th e foUo-w/in g ii^ yend s o f T)i e spectrum ; 1 . th e shipmcr ' ' s dL-rlare d b yth e offirnr , i l l on e manne ro ranether , t o cwnMJ n h-^zardou s material.' ! srn d cornplie." : (in-whol e o ri n part ) ^it h rctjUlrfcinenL s I n th e I-CMR : o r 2 , whechcrlnrentinnall yO r i.ininientionally . Ih e shipmen t i^ i no t declare d b yth e offero rt o conr.ii n Jiaiiardou j materia!,•!! . an d n o ;«tt«Tip t h.i s bee n mad e t o coinpl y wit h di e 1-IM P (til " "undfdftrtd' " o r"hidden " .jhinrnenl) . Th e Secrclar yofTransnortstiLij- i ha; ; delifffatfl d z a apcncie,' ! wiih;[: ) th e Deparcnicn r (FiiCieri l Aviatio n Admlni.-irra'l'.iou . 7t<ivt m High'W.'s yAdrnlnisrr.njan , Fftdcra l T<ailri-ja d Adiliinl.Tri'aiion , Unite d Srate. TCua.^ f C-iwi'd . .vi d f'e.^eerc h an d Speeiu J I'j-ngram ^ Adniini.=:rrati'.->n) , d^i : authorit yi n -1 9 U.S.C . 513 3 ri j asses s . i civi l penrvlt yl^gains l a.n y perso n wli o ••kno>«'ing] yviolpttfji " an y requirement i n th s HM,R . incIudtn Krh e ' provj.cion s i n § J7], 2 (a ) ai-> d (ti ) (juor'c d abnvc , Ser.iio n 5123(-d ) provids." ? tha t a pfcrso n • aa s knowljujly " •w'hr n (A ) tli p perso n lia s .ictua l knowledg e o f th e fnnt s givin g ris a l o Lh e v/iolation ; o r (3 ) a reasonabl e perso n airin g i n th e c(reuni,sta(ice.< ; an d exercisin g rcB,<;onab] cCSTO wrjul d hav e tha t knowledge . Accordingly , a i-.arrie rknowingl yviolate * 111' ? HM R whcr » th e carrie raccept * o f trnnspon. ? a ha^.srdpii s ini"itcri.a l wit h actua l o rconscriicTiv e knowledg e tliH t a pacl<,ij5 c crinWiin.' ; ? hazardoui" , i-ii»r(Mio t wtilcl l hfl, 5 nor . bee n pDck^jcd . rriarkeij , labclEd . -an d describe d o n •

> shippin g pape r.i ? requirm d b y cti e MMR . Thi s mesn s rJia t ACBn'ie rma ynu t Ignorp . rcadiJvaj>pi»'en i face s tha t indicar e ihii t rillic r(] ) * shipmen t declare d t o coni,ijI n a hfl;2ardciu s mstterja l l i no t propi'd y p.ickageri , iTisrksd , labolftd , placarded . O r d«;'!erlbe d o n a shippin g paper , o r(2 ) a shipmen t aclii.'jll ycortaln s a ha^sj-d^Tu a materia ) fy'vF.rnc J )>yili^ i HM R despit e ih o fac t lh'^ 1 i' l i s no t rnarKEr t iaholsd , plaearrted . o rdtiJrribc d n n a .'Jiitiplil f pspei ' a.' ; c-,9n[;iiniii) : a liii.2rirdou s mateiiii ! 'I'li E r^cparrn-jcnt' s Oi-.tobr rA . 137 7 intcrpreU-tiic n eoDe^rn'^n g -1 9 CP R I75..'i O (reproduce d lielo'v ) relafe s t o Lli n rir5 t siruialio n ' n (.^

e slicv e paragrapli , i.e. , whe n ii n si rL'drrle rreceive ra .'^hipmcn t ?iccr)rripanif": i ^ y" alil|.>p)n g pape rronwinin,| ; ;? siiippcf- s ccKiricatio n Iha rhMjardmi s material s wuhi n thosl-iiprnfin l hav e bee n elaSiftd . p/ickspcd , marked , labele d an d •ICLuracel ydescribe d a. s re^viirfid . .JC T'' S CP7? 172.20^ . Wlicfievei' . i n t-' f cours e o f examinin e rlv j sh([5pin g pape ran d pcrfomiinj j th e rnquii'i-. d vi.<ii.ia l Ijispeciiiw i o f Mi cpJK^lOty: , li i ai rcarrie rhe s rea-<?r> " i Kno w oftH.^rrepaneic.-. . the ; rrciri-ie i infi ynot.";linpl y rel ye n lii e "ilUjjper' s eertificatln n h i lii e r,3SL - o l ,!i.r i ijnd««f'lari? J o rhidde n ^liipniLTii. , al l rdovun t farr. ; miis rIj n cr/iiiii<1«ie(. l ir > dET.Rrrninf'wIieihG To rnn i a i'L'a,r.onabl cperso n aciin g i n th e eireuni'=rttncH S an d exerL-ijin g c5Uton.'»(jlecar e woul d rcali7, e tJi e pr«,?e/ie e o f ha^ardoti s m.3l.eriflJs , i n ai i siifcjrctmeni : preec«i:<itig , ih) S i. ? aK«ay s a qutsdo n oCf^ici , t o b e determine d b ydi e far.t-fimir.t . Recaiis e InrurOerjt'l E fficr . pnuftfn j ma yexist , Ki.<; n& rpraecicatil e t o se t forr h a list . o

C ;:pGclfi ccriteri a t o jjnvcri i whKthc ro rno t th e carrie rha s siifTiijicn l consrrurtjv cknowledg e o f ch « prc.>:ane co f liaijjfCluu s material s wltfii n St n icr^d«clar« d o r tlidde n .shipmen t TO fin d a knowin g violatio n o f Ch e HMR . tfirnrmarlo n concwnJn;? , th e content s o f suspiciou! ^

paek9B« f mus t b e pursue d t o detcr;nin e whPthe rha;iardoo s rnateriol s hav e bfciji i in-ipcoperl yoffered , Acpvrier' s cmployse s wh o accep t packa^je s fo r tr<virporl:atlo n Tnu.^T . b e rr-iinni i t o rceogni7. e a "svicpli;iou. ? parkoiji! , ' u s par e o f thei r functie>r;-—spccLfl ctralninf ; a; - -peelfic d I n 4f l CF R 172,704(a)(2) , bocfius ^ th e lega l .jtand.irt l remain, ? ihf t tuiowlerig ctlmt a roanoimbl c perso n actin g i n th t rlrcumstancc." ; ?Ji d CJcereiSin g r'ci-Vjn.ibl s cor e woul d haVL- , Kecsus e rllii s .standar d .•3ppllo; j i o al l mode s o f ti'Onsporr&iion , a .slngl * ir-iinin g prognir n an d a unlforn i screenin g proces s ca n b e de^'elupedfo ral l o f a company' s t.tnipleyee.' ! liivcijve d i n surfaci i o rai rrransportation : A t i:hi ? sftm e tirns . a n offero rwh o fail ? i n )i7rrnp»r,l ydsclar e (an d prepa/e ) o T-liJpmcn ro f hwardoti s material.' j bs»ir s ili cprlr/iat^ ' rflSpnnsibitJtj - (o ra liiddc n ."ihipnienr . Wheneve rliaJijj'dnu t mawrlal s hav e no t bee n shippe d i n compllajit e wit h th e HMR . DO T geriFrnJl ywil l attemp t t o identif y«n d hrin g a n enforcement , procrredin g agains t th e perso n 'v«,'h« . firs t cause d th e l-.rwwportsiio n o f a noncomptyingsIiipm«nt . Th e procedun!. ? applic.-ibJ'. ' r e DO Tcivi l pensU ytnforuemen t M5e,r . procedure s ar e .^e t fort h t n H CP R 1,3.1 6 (FA.A.J : 3 3 CFRpnr t I , subpa n 1.D 7 (fJSCQ) : 1 9 CK R p,ir l lt19 . .-subpart D (FKA) ; 4 S CF R pa n 107 , subpar t D P^SPA) ; an d 1 9 CFKpart3« G (PHWA) . T o tli e i--xi(?rn , rhiiteji ycarripr . retjarrlks. s o f th e mud e e f iransportati'^n , i s tml y "innocnni, " i n necL'ptijj g ,3j- i unclHelflr' d o r hidde n sliipnien i u f l\«'7-,;irdiin i m.'jterials . I t lack s chi f hni3'»'ledy « reipijre d Cc r.HMefjnusr x o l a civi l ijp.nolfy , Ilovvwvcr . whr n y(Virrie r •icr s "knowinjly. " n.- s dKfiiu-r d I n 1 9 Cl.S.C , 5i:?3(3) , i t Mui Tb e c.07i.-Jdfe-re d .•^ubjpct u> eivi l penalties . RSP Ai>vjea 3 an ysuggestio n tlia ra cai'rie r<,v>7ul d b s deeme d t o hav ^ "lonowingly ' .icecpre d a li3;!;9rdoti.' ; niatBrfw l To rcrunJpii'nfltiuj-i , an d b e .subjPC l t " clv( J penaldC' i unds r4, 9 y, 5 C . .•}123 , onl ywht n thoTi^iteri:! ! r.

vdticribe d S? u ha;£jrdoi.l S n-|aler(-a ) o n a ,?hippin g pape roi ' «rlie r conimercia l doeumenrJMinn , n riJ\p . packag e i s marke d o rJolsrlir d l»- i a manne rn s prcjcrlljer i b yrb e HMR . Tha i oppruBi.:l i wi^Lil d improperl yiim. d a ean-ler' s respon.',lhint > IT J siULBLion. ? involvin g a "d'-.'<;l.'«i'ed " shlpme m DEPARTMt'N TO f TRAN.SPORTAI'If> N Olfic e o f thf t S«r.T'ct3i Y Ortobe r i , 1977 . SubJ . Ai rCarrtei'f . Reopon.^U•,lili( yfo r iiupectio n o i IhzaKkiM S M»Tsn-.*i s Packaffis , Frorn : Aiir-CiLni . Genera l Counse l fo r Waterlal. s TTanipijftstvur i l,aw . Tn : Dirfrcio rTraji.NpiMtaUo n Safel yInsLiri,il,« . n\i s I s i n rcsppnsf . t o you i reqiiea co f Auguj t Z.5 , 197" , fo rou ropinio)- ) a s l o whethe ra n ai rcvnT. rha s a specifi c regi.ila'or yobllgaiin n t o inspet rha^-vdou s maleri-^I s psiek-age s pri-j rwsecftpuinc e fo rai r cran.^port-i'Jo n winsur n tii t sblppRr s complianc e witl- i specifi cregulator y requirement s o f pirt s 17 3 yni j J '/H , Wit h tlt e question , yo u i-ia-^

t suppli's d you ranalysi s an d yonelu.'tlo n tha rexcep t fo rth e phj'sjca ) Integrit yinspectio n provide d fo ri n § 175..30(b ) ther e i s n o (<ut yo n th e ,-\l rearrte r t o inspec t hazardou s material s packajj wprio r C O acceptanc e fu rtransprirtatK.i n i n orde rl o dererm^r wc;oin[jllfnc cw-'lij i th e requirenienC ? o f pacLS 17 3 ?in d 178 . Thus , i ci- s you ropinio n tha t th e ?i rc.?iri'i« rmj yrel yo n th e shjppei' s ccr:lf>eiMlo n ftCC'jmpsni'ing the - sliipmonf . Sectio n 173.,? 0 prp,5Ci-ibe s rh e rftquirertient s U-»ai , niu;-. cbi 5 me t befor e a n .-^i rcarrie rat;eepi s a shipmen t o f Iiarlardou s nlo^tt^l(^l s fo r tTan.^pnrtatinn . I n achievli-y j coraplipilc e ivit h tl-iest - requirements , th e ai reai'riErnju,<n . Linde rparagrap h (a) , exap-iin s thf t ihipirtftn t agains t th e infoi'mi>llo» > .supplie d o n th e shippin g paper , an d must , imderpsj-agr/jpt i (b) , m?K e a vii-ua i inspectio n fu rIcak- s an d damage d pack^ing . ton.'equftntly . I agre e •witl- i you ranaly.o i unc i eorr.lusio n tha t th e regul,ition s permj l th e ai rriiri'i« rt o rel yo n Ch e informatio n supplit d o n d-i e shippin g paper , imless . i n complyin g wit h parag^raph s {:> ) an d (b) , h e ha s iiiaso n ' o luia-A - th.i n ther e ai' e discrepsncJcs . (F RDo c 98-U56 I File de-.'H - 9S ; %:iS am

) BILLW G COD E A»t(I-«0- P DEPARTMEN TOF = COMMERC E Nationa l Oceani can d Atmospheri c Adininistratio n 5 0 CF R Par t 67 9 (Docke t No . 9B1107312-7021-02 ; ID , 0520968 ] Fisherift S o f th e Exclusiv e Economi c Zon e Of f Alaska ; Bycatc h Rni « Standard s fo rth e Secon d Hal f o f 199 8 AGENCY ; Nflliori4i [ Marin e Fisherie s Servic e (NMF5) . N?itiona l Oceani can d Atmospheri cAriministrcitio n (NOAA) , Cummerce . ACTON : Pacifi chalibu t an d re d kinp . cm b 'Dycatc h rat e standards ; requ<;-.;-i t fo r commenis , SUMMARY : NMF S announ'-<;; s Pacifi c I-^-^lihu t an d re d ktn g cra h bycut'C h rat e j-Landard s fo rih e ,"tecon d hal f o f 1993 . ri.ibHcarir.> n o f th«s e hyca!.«: h i';i(e . SSO/SLO ® SW Q VVd ZH9ZQ^Z0 Z XV d 90: U 0L02/GL/0 L

### 10/13/201 0 12:5 3 475227100 7 ANM 7 PAG E ld/2 5

X 2 3 4 5 € 7 B 9 1 0 J. 1 1 2 1 3 1 4 I S 1 6 1 7 l e 1 9 2 0 3 1 2 2 2 3 2' ! 2 5 2 6 2 7 3. 8 2 9 3 0 3 1 3 2 3 3 3/1 3 5 3 6 .• 3 7 3 S 3 9 4 0 4 1 4 2 1 3 4 « 4 5 4 6 4 7 4 8 4 d 5 0 ^ 5 1 5 3 5 3 SCOTTR . MORRr S FA A OFFIC EO FREGIONAI . COUINSE L 

### 160 1 LIND AVE.,S W KENTOM , 

### WASI-I.TNGTO

N9805 7 TELEPHONE ; 425/227-141 7 FACSIMILE : 425/227-100 7 

## UMTE D STATE S O FAMERIC A

DEPARTMEN T O FTRANSPORTATIO N

OFFIC EO FHEARING S WASHINGTON , D.C . I NTH EMATfE R0, F EMPIR EAIRLINES , INC . FAA DOCKE T NO . CP09NM000 9 DM S No . FAA-2009-058 6 FA A Cas e No , 2007NM70015 5 Judg e RichaxdGoodwi n MOTIO NT O TAK EJUDICIA LNOTIC E Complainant , throug hhi s undersigne dcounsel , pursuan t t o Rule s o f

Practic e 13.218(a) andFRE 201 , hereb y move s tlia

t th e AL. T take judicia l notic e o f

th e folio-wing ; 1 . Th e Administrator' s publishe dsanctio nguideline s fo r hazardou s material violation s containe dat 6 4 Fed . Reg , 1944 3 - 1945 0 (Apri l 21 , 1999) . (Attached ) 2 . RSP A Fonna l Interpretatio no f Regulations , 6 3 Fed . Reg . 3041 1 - 3041. 2 (Jun e 4 , 1998 ) [Constructiv e Knowledg e guidance] . (Attached ) 3 . In addjtior

i to regulator

y violation s se t

forili i n th e Complaint , th e followin g Hazardou s Material Regulation s (4 9 C.F.R.) : a . Sectio n171. 8 b . Section s 172.10 1 (Tabic) ; 172.200 , 172.300 , and172.31 6 c . Section s 173.27an d173.15 0 DATE D i;his 13t

h4^y o f October 20 J 0 . ;SCOTTR . MORRI S F A AAtto.mey

ffiodo nt o Tnke Judicia l rvotic e PA A Decke l No . CP09NMO0O 9 Pag e 1 of 2 SCOT T P. . MORRIS , FA A ATTOHN^ V TEL : 425.227,1417 : FAX : 425.227,100 7

SSO/frlO ® SN Q VV d 31?LSe6t20 2 XV J 90:L L OLOS/GL/O L10/13/201 8 12:5 3 4252'27100 7 AMM7 PAG E 15/2 5

1 2 4 5 C 7 e 9 1 0 1 1 1 2 1 3 1 4 1 5 1 6 1 7 I S 1 9 2 0 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 a 2 9 3 0 3 1 3 2 3 3 3 4 3 E 3i S 3 7 3 B 3 ? 4 0 4 1 4 2 4 3 a 4 4 S <k 6 4 7 4 9 i o 5 1 5 2 S 3 

## CERTIFICATEO FSERVIC E I hereb y certif

y that th e foregoin g Motion , to Take Judicial ha s bee nserve dvi afacsimil e and Certifie dMai l - Retun i Receip t Requeste dthi s date , t o th e following : Th e Honorabl e RichardC . Goodwi n Offic e o f healings , M'2 0 120 0 Ne w Jerse y Avenue , S.E . Eas t Buildin g Groun dFloor , RmEl2-32 0 Washington , D.C . 2059 0 TEL ; 202.366.213 9 FAX : 202.366.753 6 Federa l Aviatio nAdministratio n 80 0 Independenc e Avenu e S W Washington , D.C . 2059 1 Attn : Hearin g Docket

Clerk , AGC-43 0 Wilbu r Wrigh t Buildin g - Suite 2W100 0 FAX : 202.493.514 2 Couirtne y E . Felt s Staf f Attorney , Federal Express , Inc . 362 0 Hack s Cros s Roa

d • Buildin g B , 3" * Floo r Memphis , TN38125-880 0 TEL : 901.434.863 2 FAX : 901.434,828 3 Lawrenc e W . Bierlei n Attorne y a

t Law 110130" ^ Street , NW , Suite 50 0 Washington , D C 2000 7 TEL : 202.625.835 5 FAX : 202.625.436 3 Date dthi s 1 3 t

hda y o f October , 2010 .

ivTOIFAI RCHI N Offic e o f Regional Counse l (ANM-7 ) Federal A-viationAdministratio n 160 J LindAve . S W Renton , W

A 9805 7 425.227.216 0

Motio n, o ra^ c JudfclolNoUc . SCOTTR.MOR«,5,FA AArro«N, Y FA A Doeke i No . CT09NM000 9 TEL : «5,227.UI7 ; FAX : 425.22 7 100 7 Pflj c 2 of 2

SSO/SLOi a sw a * VV d StlSSGtSO S XV d 90:i L OL02/GL/0 110/13/201 0 V.?:5 3 4252271130 7 ANM7 PAG E IS/2 5

Federa l Register/Vol . G3 . No . lD7/rhur.sday , Jun e 4 , 1998/RuJe.- ^ an dRfigulation., ^ 3041 1 th( ? eriienafor asignifican t regulator y actio n unde r

F/ixecurivt : Orde r

12866 , Thu*; . i t ^*'3 s no t stJl.ijpc c f

o 0M B review . Regula l or y FhxJliiJU r A n W e certify th<) t

thi s regulatio n wil l no t hav e asignific.-in T economi c impac t o n ».subscaritia l numbe r

o f smal j entities- . •Therefore , s regulafsry flexibilit y analysi s as - provide di n th e R.eg(.ilaf.of y Flexibilit y Acl , a s 5"iend<7:d , i s no t required . Pspanvor k

Rirriiictiof

) Ac t Thi, s regulatio n impo.se s n o repontn^ / recordkeepin g J'egyircmant s necessitaclnj j clearanc e b y 0MB . (Catalo g o f

Fflder.-? ! .Dijim.'SsO

c Assistnnc e Progfeic n Nos . 96.001 . Soeia l Securlcy DisabilJry Infliranct : 9?,002 , Social S«curi^y Retirerrren t

rn.<nirant,-5 : £>6,00H

, Socia l SMiirJiy'Survivor,' ! Insurance ; 9f5,006 , Supplementa l Securit y Income ) Lis t o f Subject s i n 2 0 CF RPar t 40 4 A.dmlnlstrfilivi s practic e wri d procedure , Blind . Disabilit y benefits , Old-Ag<-; . Svirvjvorf

i an dDisabilit y Ii-i,5urarice , Reporij.n g an drecordkeepin g reqLiirej-nr.iit.? , Socia ? secniity . . Datfld--Ma

y 27 . ISIfiS . • Kennet hS . Apfel . CpmrnJxsivne r

afSC'Cia J .'iftcurJty , Fa r th e retison.' S s-e

t fori hi n th e preamble , pgci404 . subpar t P . chaptci mo f titl e 2 0 o,

f th e Cod e o f

Federa l Regulation s i s amende d,9 s scj i fort h !2 . NeunipioRic? } 19s.)9 . (ll.OOsn d 11 1 [W);Iul yI J 5 . lmmu.n e ,Systcin (.H,0 0 findJ I ' If'O) ; Jul y I . 1999 . [FRDoc , 98-Hi399Flled6 . BILLIN G COD E 4'(»a-29- P •3 ' 9S ; fl,13am( 

### DEPARTMENT O F TRANSPORTAKO N Researc h an d Specia l Program s Administratio n 4 9 CF R Part s 107,171 , 172 , 173 , 174 , 175,176,17 7 [Notic e No , 96-6 ] Hazardou s Materials : Forma l Interpretitio n o f

Regulation s AGENCY : R<>.searc

han d.Specia l Profjram a Administratin n (RSf'A) , DOT . ACTION; Forma l i.7iterj>7't?t3tlon o f i-egulation,? .

PAR T404—FEDERA L OLD-AGE . SURVIVOR S AN D DISABILIT Y INSURANC E (1950-^ ) Subpar t P—[Amended J 1 , Th e authorit y citatio n fo r subpar t P o f par t 4U 4 continue: ! t o rea da s follows : Autliority : 5ecs , 202 , 205(aJ , (b) , nncl (d) - (h) . 2nm , 221(d

) a,>c i (i; . j:22(c) . 223 , 225 . pn d702(s)(5 ) e f

dif i ,Socia l Securit y Ac r

M 2 U..S,C.: . 402 , 405(«0 , (b) , .in d(d)'.{10 , 116(0 , 42 1 M BJ^

d(i) . ^i2(c) , -V-!3, 42.1 , an d 902(<.)(5));iec , P,lUl>),Kib . T. . ]04-I93 . 11 0 Stat . 2105 . 2189 , 2 . Appendi x 1 TO-^Jtibpar c P o f par t 40 4 i s amencie db y rcivisjr/ j iteni n 1 , 3 , 11 . 12 . an d3 5 o f

th e introductor y tex t befor e Par e A t o rea d3 3 foUow-."! ; Appendi x 1 t o Subpnr t P—Li.ttin g o f ImpsiLnnent s I . Gruwrl-i Impsiirmcni I'lOO.OO ^ Jul y ) , 

## loss . **»»' * 3 , Specia l Sense s an dSpnocl i f2,C> 0 an d 102.00)'Jul y 1 , 1999 . .T . » • « . T 1 I , Multipl e Boci

vSyilKiTi s (

\ rO.OO) . Jul y1 SUMMARY : Thi s doeumen T publishe.' i a fornin l inrerpreratio n o f th e l-Iazardou s Material s Rp^ulatlori s (HMR ) roncemin g th e responsibillije s o f acarrie r

whe n acceptin g hazardou s m^nierial s fo r Ti-aru'portaUo n i n cottijncrce . Thi s intprprataiio n i.<

; bein g publishe di n ordc;) - t o facilitat e bette r publi c understandin g an d.-nwarene.v" ! o f th e HMR . EFFECTIV EDATE : fun c 4 , 1998 . FO RFURTHE

RINFORMATIO

N CO^TTACT

: Fraze v C , Hilder . Office , o f th e Chie f Cni.jnsel , Resoarc han dSpecial . Program s Adininiscrrition . U.S . Departmen t of Transportation , 40 0 Sevent h-Street . 5W , Washington , D C <;05l?0-00noi ; telephon e 202-3G6-44OO , SUPPLEMENTAR

Y INFORMATIOM ; A S par t o f it s iniplenientatlo o o f

tfi e Federa l ha^mrdou. ? mareria J transporl^rio n law , 4 9 U.S,C , Sin i et.^aq. . RSP A issue s th( i Hazardou s Material s keg:uIatio.n s CHMR) . -1 9 CF

Rpart s 17 1 l eo . Fro m tinif l t o rim<: . RSPA' s Chi.el ' Cotinsi> l issue s forma l inTerpret^^tinat ^ o f th e HMR . Thes e inTevpieiaUon s generall y involv e multituoda l issue s an dar e coordinntec l wit hth e othfe r DO T agencie s which , wgothe r wit hRSPA . cnforeciti e HMR ; Federa l Aviatio n Administration , Federa l Highwa y Administrarion , Federa l Railroa d Admini.'itfiition . an dUnite d-Stare s Coas t C-uard , Thi s documen i publishe s aChie f Cou-nseF s iiircrpreiatio n concernin g th e responsibllilic s o f

acarrie-i r

whe n arceptln g ha^jirdou s material s fo r tran.sportatio n i n conimorce , Thj s iiilcrpr«taiio n flddres.sH,? issue s raise di n aletlfi r b y Mr . IC.A. Aliemov; , o f F-fM T Associares , an di $ cvnsist&n i wn ha n

Augus t 19 , 199 7 writte n respons e t o Mr . Altemo s b y RSPA' s A.s.soci.ite Administrato r

fo r Hazardou s Material s Safety . I n additio n t o thes e infrequen t fofma l interpretetioa s b y RSPA s Chie f Coun-sel , RSPA'." ? Offic e o f Hazardou s MatRrial s Standard s provide s informatio n an dinfarm,5 l c]ariflcatio.n s o f th e HM Ro n a n ongoin g basis , throug h(1 ) atelephoni c informatio n cenvM - (l-S0f)-467-4922 ) t o answe r ora l question s an d(2 ) inrorma l writte n interpretaHon s o r

clarification s i n respons e t o writte n i.nquirle.5; . RSPA' s forma l Interpretation s an dinforma l lette r claTifxcation s (an dadditiona l informatio n concernin g th e HMR ) ar e als o availabl e tl-iroug hth e l-lasma t Safet y Homepag e a t

"http;/ / hazma t dot,gov. " I n addlrion , som e of R.SPA' K i.nterpretation s .-Jn

d clai-ifir;ation, 5 ma y hi ? reproduce do r ,<;urrjrriijri;jedi n selecte dtrad e pLiblicytjons , Fuithe r InforniaUo n concemin| > th e availabilit y o f

informa l guidanc e an d intCTprei;aric>ri s o f

th e HMR , ,i s se i forth if ) 4 9 CF R107, ) 4 , RSP A believe s tha t publicatio n o f

it ? interpretation,- ; shoul d promot e abctto f

understanrJin g o f

th e hlM Ran dimpro-v e complianc e -wit hth e HMR . t-ijuc di n Washington . DC , o n Ma y 28 . 1998 . Judit h5 - Kalttip , CDJefCoiin&el . rin t No . 93-1. 1 Bjr.kgroun d Mr . E.A , AltEmos , J-TM

T Assnclatcs . requeste dclarlfjcatio n of r«eiiJiritmcnt: i i n rh t HM Rconcernin g a n p) r

Carrier' s acceptanc e o f psckagE." ! coiilainlnf

i bF?:ardou i mji,crta,(j , Thi s Inc^uir

y concfcrnedonl y di e cirrier' s responsibitide s relatin p t o hatardou s nvitertal s r>fforc

dliy onotlie r

pei.M.iii, aii<

i no r acvriEr' s rransporcatio n o f it s nw n material s o r products . (Fo

r Informatio n an a n ai r carriEr'. s tr3n.--porl,arin

n o C (i-, ^ ow n cnnipan y ninterJals , a r

'-COMAT. ' .T<?

e "COMAT FACrs ' i n RSPA' s Januar y ISflS Safely Alerl . avoljabl r

i:> n Uif t HoJ:inv . Safet

y Hornftpaflc. ) A,(choug hMr , Altcmtiji' s quc^Uoj i wa s pose dI n th e conccsr

t o f ai r transport-iition , lli e HM Rrequirement s discusse di n RSPA' s interprafstlo n appl y t o caiTier ? b y al l TTiodej : ci f trRns|.!ortHdon . tnccrpretatio n Basi c requirement s i n th e MM Rsc i forlhin 4 9 CF R171.2(a) an d(hj , an dapplif-.«!til e r o c*rricr.- . tn al l mode; ; o f

innspor^ifioii , ace thai , n o perso n ma y accep t 8 hazardou s maicri.i i fo r transporcatio n 111 f.omnier<; e onle.s s ' ' * ih e hi-izardou." ; materia l i s properl y e)<i¥5B<i , dH.«crlbcd . pad^flgfid . m--irl<«rf . iplicU-i-i, an di

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3041 3 Frrler.i T Kcgister/V„| . r.'S . No . J07/i-hLir.?dn v a.iUifjnie d b ysppiiL-ahl u rfiquirernfinT.; ; o f fch i I-IWR] , o ra,r i e.-:Rnipl.iQn . apprnvol , o r r».glflruLrnj i Isrular f unrlft i Ich e HMr< l • ' - ' (or l ^ra^l,•7pf)|-l. a ]ia7.,Tr<;loij. < jn.5iprj']a l II I t-oirimeic a un)«.•;. ; ' '

^ ' rh e hap:9rdoi.( s rriaterJa ! i s handle d an d rriiruporu- d ( n .•ictordanee-wir h ,ippliL'abl E r»qLiir«iiierir. « o f icJ-i s JHMRl , o r?i n exeirlpdon , aoprwval . o rregjstr.itio n issue d unde r[rh e HMR I ' - ' Acarrier' s acceptanc e an d crajispoi-tarloi' ) o f l'rd7,Hrdou,5tTMti;rialT i c-) n jnvolv * sevnn l diffsren t shuatii.>ni' , includin g di e ioUowhii ; l-jL- n ?nd s o f th e fpRctrum 1 , rh e shipniftn t i s cJecUre d b yth e offei-or . I n onf l niannc ri^

ranorhcr , t o cwit-ii n liazardOLi S material s an d t;omp)it s (i n whol e o rJ n part ) wltl l rfiquirenienr s i n th e KMR : o r 2 . wiieLhp. rInLEntionaU yo r uninlcnticnally . th e shipmen t i s no t declare d b ydi e offero ri; o contai n htLr^rdoii s m«TcrJ«ls , an d n o attemp rha s be.e n mad e t o compl y wii h rJi o HM K(Mi c"undeelarHcl " o r"hidden " Th e Secretar yo f Transporwtio n ha.' ; d«lngauc d wajCiKm s vvH.hi n thr ; IPcfjarr.rTen t (FEdfira l Aviatio n Ariminlstrarlon , ^'edfir M Hlgh'wa yAdministration . Feder.x ! Rni.lro.'s d Adminiirr-iKi?!-! , Unite d .5taro.- : Coas t Cuarc L an d Kesearr h an d .Spcci.-? ! Progrfini s AdmlriinrMCTon) , HI P audiij i ir yi n 1 9 U.S,C . 512 3 was.5(is s a civj ] penalty'a^nlns ran y pijrjpr j •ui'h o "lQir;«-jri(T| ytiojates " yn y re<juij-emer)Ci n rh e MMR , Includin g rjit : provi:.;lon s i n ,^

17[. 2 fij ) an d (b ) quore d -nbove . Sectio n IJl2,'ifa ) provide s th.-j t s ptrsc m "aci 5 Juiovi'ingly " v.-he n fA ) th F perso n ha s a<:tua l kn:3wledg e o f th e f^icf s givingri5 « f o th e viulaciyn ; e r (BJ < i rftasoriabl e pei-.-ioi i actin g i n rh c clrei.lrn.'ir.nnce s an d C'tfircisin g reasonaLrlf l car e weul d hav e llra rkjiowledge . Accordingly . ,

a earrJfi rknowingl yvLoli^ic i th e hJA'l R whe n tli e can-ie raccept" ; o r tranaport s a h.i7,8idnu s materia l wit h actu.a ) o rconstructiv e Juiowdedg e r.ha t ; i pncWng e con1,iJn s a hfljordoa: ; mntcri^ l wliic h ha. ^ no [ ticur i patk^ERd . rnf>rKcd . labfjlcrf . an d destritie d o n Ashippin g pape f a s rcnulrc d b y rh cI'fMR . Thi. 5 mtan s dia t a carrie rru.'\ yno t ignor e readil ywppurfln i face * rha l indicat e Ihflf . eitli^ r(i ; a shipmen t iJecMrc d t g eoniii n a haTOrdoii. ? niatErla l i s no t properl y pO'.lciigcd . mflrked , Jal;eli*d . pjacsrclad . y r describe d o n a .¥liippj;ij 5 pupftr . a r(2 ) .n ,!;|-iipjnenta£:i'U9lI yror.lain s a hazardou s niatfria l j;nverne d h y[h e IIM R riespitc- th e fac t tha t i rI s no i misj-lMd , Inbelftd , plat:,^rd'>ri , o rrtcccribcd rj n ? shippin g pape ra ? conlEiinillp , i i Ii.n7..ircIoU; S ni;iL«;ri,7l . Th e Depiirimcni'. i Ociobc r-1 . ]rt7 7 liHi.rprcC*t.l(? n conc<?rnin/ 3 4 9 CF R l'/5,3 0 (ccproducc d l;>eli-Av

) r«>latft. s t o th e firs i nituatin n I n IH B abnv e j„-arggraph . Ar-- , vha n a n .ji rcarrie rrereive x.•= i shipmRn l n shippC i ' G cftitificnllo rtha t haTiai'dou s niaLsrtiU i xvUlli n rh cahlpmijii l hat- cbee n clasjcd . paclulgpcl . rnarJ(L-d , labelf d ,in d jrri.ir»jwl> ' ilc,Tr;i.ie d , « required . !i'c(?4 9 CV R 1 '72.20't , WhirCicvtr . I n (H e ','our;; « o f Waminin g th e shippin g pape ran d pftrfoirnln g Ih e requiinj d •-isual.ln.'jpecfjo n e f th e piickflge , a n .IN " c:arfie rhOi- ' reivp crr > |cn<p w rftl y o n rht ; .shlppL-

i '.• ; 'X-uifKiiit'^n, 1998/Rule s an dR^sul^tion s I n rlvi - L"-i.". ? e f a n und'JKbrr' J n rMfjIdc D jhrj-irricTii l HI I i<j]ei',<in rf'aci s mas t Ij e OonsiiJKrp. d t o demrniin e whe i hi: ro rnnr- l rc«.''Onablf ' (jurioj i JieCin g t n thf t circumi-i-Bncc! : .i:i d excrciiiii g rea;;oiiabl e car e waijJt J rnalii cth e preSBtK e o f hciTiardniJ S li'iaia'lals . fi i y n enfencfiD'fni : proceeding , thi s i s alway s a questio n o f fact , l o b e dErerminfi d li ydif i fact-i?intlflr , B»caij,? e innumeniDl e ftcc p,'ittEn-l S ma ycjrlst , i ri s no t prainicabl ct o se t fort h s .lis t o f specifi c(criteri a L u gover n n-fiethei ' o rno t til e cai-rie rha s sufficlen l rens)rur;tiv ckno-v^lcdp R o f rh cprsacnc e n f h,izarrlou s rnatsrial ? w-iihi n a n undeclaje d o r hidde n shipmEiii . r o firir ) i i knewinj ; v(ol,nrlci n ii f ril e ("CMR . Informatio n concernin g th e concent s o f suspiciou s p;3ckBgc 3 mus rl>e pursue d l o determin e whethe rha;:iii'deu s malartal." ; hsv c bee n (mproijerl yof/crsd . Acarriei' S employee." ! wh o acrep t p,ackagc s fo r tronsporraun n mus t b e trnliice l t o r^cugnjz * n ",5UsplcJoi.i s package. " it s par i o f thei r function—.specifi crrp,in)n p a. 5 specifie d ,i n 4 9 CF R i7•,^.70^•iil)(7) , bf.f.:,ur., : dn t la^ M srsnU-jit l rern,9ln s th e kneuiDcl^;* ! tlia ra reosonabi e pfsrso p ai-rln^ : i n thr ri:irri.ijn,^c.-u-iri: i Jin d exei'cisln g rftasonabl e car e woul d have , Biiraua B i,hj, ? itanclyr d opplit,; - t o >i( l modp„i ; o f Craiisportation , ,i i .'ingl t ir.'jijifn g progr.-u n an d a uniforn i .•^crtRiiin g procei, s co n b e develope d 'o r?i] l n f a (:9mp«i-i)'-. 5 empioyec j invftlve d .insurfai-i e ur-iii rrrcuispOTtao'eo" . A t th e 7-im f Lim.; , n n offero rwfi o full s l, o prnperl) ; dar.jlarf i (an d prepare ) a ."Jhipmen ro f ]ia7:ardou s nv^terLi^l.- ; bear s th e prrniar y rMpDn.-.;tJJ11l. yrr> rg lilddfi n .ihlpment . Wheiiave rhazardciu. s material s hav e no t bee n shippe d i n complianc e 'vvil h rh cHMR , DO T generall yvuii ] utccmp cicj Identif yaji d brin g a n etiforcL-meritpj-ocecdin g agains t rh c perso n wh o firs t cnusti d ih « transportallo n o f a noncemplyfn g ihlpjncjir. . Thf i procedure. i applicabl e l o DO T civi l penalt ycnforcfimen : oase s proc)jdure s ar e sp. t ftjrt' j i n 1 4 t';F P 13.1 6 (FAAl.'3: i CF R par t l,subp.'»i' C 1,0 / (U.SCG) r4 9 CF R pa n .[OD . subpar t . B (FRA) ; -1 9 CF R par t 107 , .subp,sr < 1 ) rR,^,PA) ; a.n d 4« ) Cf-'Rpjwt.l8i 5 (fl-fWA) , T o th e rxtcni - tlis t an yrjarrjLT . rep.'^rdlRS S o f th e ii'iod e oi " i;r«)n»<parta',i<:)U , iF , U-ui y •innocent " i n acccptiu g -M l undficlani d o r bidde n .^hjpiTiKm : o f ha?-.ar(loi,i s matpriM Ki r lMr;k * rh ck^invledg e require d frx ' a.wc.'..';iiiftii i o f a civi l penalty . Ho-vcvfir , vs-he n a cariiH r act. s "krinvvinEly. " o.' ; d^'finc d i n 4 yU.i , C °>\Z'J:(&) . i cmus t b e corrsidtre d suJjjer l tociii J penpld'fl." . R.Sl^

Arc/ECU ; .-in> - ;,;ug.i«v;lii7 n lh.-i t carrie rwoul d li e dfiei7ie d l o hav p 'kni/vvlngly " ;3i:cfipie d a h.ji.irnoLi. cmarerl. i fo r(.r-aiijtpprfalien , Fin d b e suhjer rt o rlW l rh cmaCKrla l i s dP-^Crlbc d ? ya hjniardnu s nialctria l o n a .FhippiO H p,^pir ro rtvthc r eoinriicrrla l docurjiEntalion . o i Ihf . p;i.cl(.3^e i marke d o rlabelu d i n a mannfi rii. xprescribe d h yrh « MMR . Thfl f apprvnci i woMJ d i;)el'jbi» ri . ir n Siib j .4.(1 ' Carrie rs Rijspni-if.i'jilii? < fo r Ir:.":pei.-iio n oPH;i,c>irHoij vMarcrtsl i J'sr.kJ.ige.s . From : AsST.'Jtan t Genera l Counse l fo r M5l«irlal.' = Tran;^porT3tio n Law , To : Director , Ti'iui.^poi'calio n Safer yTnstiture , Tlii, < I s i n i-espons e t o you rreques t o f Augus t 2.1 , 19T7 , (O Tf7ij ropinio n as t o iA,-b*thr. i al l Jii rCJjrl.; F lia s s spefjlit : regularrii yobligario n t o inspec t ha^aidou s m«teri."il ; pi;icKnC« S prio rc o uceopLaiif * fo rai r rraiisporiario n t n insur e th e shipper'.* : complianc e -wit h spHclfii : regulator y rctjujrcnienti ; n f part, * I 7 3 jii d 1 7G , W(; h tlii r question , yo u hav e .supplie d you ranalyi/ s an d conclusio n tha t e.vcep t fo rr}i e physica l integiit yinspectio n provide d fo ri n S 175,."iO W r.lier « (.s n o di;l yo n tlv coi rrorrie r t o inspec t hazardou s msTeiial s package ; prio r t o accBptiXnc e fo rtraniportatio n i n orfje rt o clec«rnii;)L - cornpbanc e wir h tin, ' rcqulrcmcnr, ? o f part s 17 3 ft.nd 178 , Thus , i t i s you ropinio n tha t tli e ai rcarrie rma yrz] yo n rb e shippw' s eertjflcBKOi i ur-crjippsmiiii u tfi e .^hliimcnt . Seciio n l7S.30prft.?cribe. 5 th e requirtment ; T.ha t mus rh e me t Ijnfoir j a n »lj ' ean'le r,v.crpt s a shipniani . o f hazardetl i maierial s fo r i;ransporr;?lJon . t h 3r;hiev)ii( > coniplianc e wit h ther e requirfernL-nrs , th e Si rcarrie rmust , unde rparagrap h (a) , examin e th e shipj;nHn t 'Pjiains t ill. ; inforniriiiof i .^upphiji d o n rh « shippLn g paper , an d must , unde rparsgrap h (b) . m-ik c--

> visua l in.-^pectie n fo rleak s an d domaiiicc l ppcka^ing , C(jr>se<iur'ncly . I .-igre t vvit h you ranalysi s an d corir.lusiu n tlia i chp . rej:ul3rion 3 permi t Line ai rcarrie rt o rel yoj n ih e info/inriUo n supplie d o n thi ; shippmi ; paper , unless , i n cnnrjplytn g wit h p.'iiagraph" ; (a ) an d (b) , h e ha s reaso n t o kri^i wtln-i * tiier e fF R Doc . 0S-.I45& 1 File d 5-3 - •3S:8M5am ] DEPARIMEN TO F COMMERC E Nationa l Oceani can d Atmospheri c Administratio n S O CF R Par t 67 9 (Docke t No . S611073-)Z-7021-02,-1.0 . 052058B J Fisherie s o f th e Exclusiv e Economi c Zont ? Of f Alaskfl ; Sycatc h Rat e Standard s fo rth e Secon d Hal f o f 199 8 AGENCY: Nationa l Marin o Fisherie s .S(?rvic! i ^NMFS) . M3r)or..a ; 0<:eani< . an d Atmoi:phRi-i cAdminii-jlrafiy n (NQAA) . Commerce . ACTtON ; Pacifi chalibu t nn d re d kin g cca h bycatrl i rat e .sr^indBrck ' reques t /'or " coj-t^mrnls . .mprop,rI ylimi, . a corri,.T'. . ,v.por,..(.(>illr yr o situation s involving , "rl,..,;l.,rrd-.htpmc M 'v'tuon f iJif i 5r:t:rc;si' y SUMMARY ; NMF S annr^Mnt'i M facirir. - halibu t fin d re d kin p cra b bycatc h rat* ' .vtandacd s fo rrhi rsecon d li;il f o f IJl.98 . PubKcatlo n u f the.? e bycarrl i pai- p C-(ynd,iird.s'•;''"o"---''-' • •••'- - • SSO/iLOi a 

## sw a VV d StLSeetSO S XV d i0:i L OLOS/GL/O L

### 10/13/201 0 12:5 3 425227100 7 ANM 7 PAG E IB/2 5 

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Fairnes s Ac t

o f 199 6 (Pub . L . 104-IZl ) provide s seneraUyl m cDngresslona l revie w oTagem y rules . A cepoitlj) ^ rviulnnien t

I s triggere di n Instance s whei v NCU A Issue s afinal lul e a s define db y Sectio n55 1 o f th « Admbi[stratiw i Pnacodiin s Acx . 5 U.S.C . 551 . Th e Olhc b afManagemen i an d Budge t ha s determine ddia t

tU s nil s doe s no t consUlut e amajD r

rul e for' purpose s o f

th e Smal l Busines s ReSUlatDty Enforcemen t Fairnes s Ac t

o f 1996 . Us t ofSutjects t

I n1 2 CF RFkz t

70 1 Chatltabl e otntxlbuUons . Credi t unions . ^/th e NadoiuJ

I Cndt t Unio n AdcnIrrivtMtlonBmnlonAfirillS , 1999 . BcclQrBkkcr , &cxeaj y oTth * Boanf

. Fo r Ih e reascHM se t

fort habovit . NCU A amend s I ZC7 Rpar t

70 1 .a s follrywx PAR T TOI-'^mQANCZATW NAN D - OPERATIO NO FFEDERA LeHBVU T UNION S

. 1 . Th e author! ^ dtBdo nfor pa n70 1 continue s l o rea da afbllouFs : fMbmU r 1 2 U.S.C . 1752(5) . 1755 . 175G. '757.1759 , jTeiB . 1751b . ITBS , ITS7.17W . •7S4 . ITSr . an dITSS t

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d4 2 U,£. C 3SD1-3610 , Sectl m7013 S U BJM

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unio nma y mak e charitabl e conblbutlon s and/o r donat e fkind s t o rodplen b no t

organize dfo r profi t tha t ar e locate dI no r

conduc t activitie s I nacDmmunl ^ I nwhic hth e fedon J credi t

unio nha s aplac e o f busines s o r

I O oi|;3nl^tlQr> 8 tha t

ar e O K exemp t orsanlzatton s unde r

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th e Inttma l Kovcnu e Cod e an doperat e prlxnarll y t o pronxit e an d develo p credi t

unlons > (b ) Tn e boar do f

dlrectot s mus t appirave.charltBbI e cQncrlbiictor aand/o r donations , an dth e apprava l nnts t b e base do nadeterminatio nb y th « boar d of dbcooi s tha i th e conirlbution s and / o r doTtatloTB ar e I nth e bcs r Inteivst s o f "^ e federa l ocdl c unio nan dar e easonableBl^^ nth e siz o an dAruncla l xndltlo no f

th e federal credi t

union . Th e boar dofdlnictois . I f i t chooses . ma y establis habudge t

fo r charltahl e tomrtbuNc)n » and/o r

donation s an d iicdejii l i3«dt t unio nt o selec t

recipien t an ddlslwis e budgete dtoids amoi ^ thos e redplenfi . |FRDo c 99-493 1 PUc

d4-Z(V.99 ; 8:4

5 am ) mtAMacoo s Tns-ei ^ DEPARirUEM T O PTRANSPORTATKIH Federa l Avlado nAdratnlcnaUo n 1 4 c m Part 1 3 Fartora l Avtatio nAdmbilstrttio nPoBc y o nEntew-mntn t

o f ||) « HaxardBi w MklarUi i ReguistionB : Panalt y GuhMhie a AGENCY : Federa l AvlaUo n Admtmstratlo n(pAA) , POrr . Acnoi e Crcnoa l slateinen l o f policy . WHMARV : Thi s docuBcr u state s ALO . FA A poIJIc y o ndctamlnln g rh e sancdo n amount s i nf'A A enforcemen t action s addretttng-vtolatlon s o f (he'Pqparlineit t o f TVans()ortado nH^Baidou s M^aia X Regulatlcn s ftJMFf

, Thi s polic y statemeni Epmdd ^ guidanc e fo r leeoc y penonne l i nth e eoBrcl M o f th e FAA' s ptosecutrrla l discretio nh i enforcerrKn t case s concernin g trotispartatio no f hasardousraatsflal ab y air , 11> e gnldanc e shoul dai dI nanalys b e f th e bet s an dcinztirasanoe s oi f eac hcas e s o a s t o arrtv' e a t

a nappropriat e sanctio nt n ligh t o f th e statuCDTll

y dcBna dpenalt y consideradons . Th e analydca l Cnunework

sheul dals o proinote a relativ e aMulstenc y I ndetenntnla g ctvi l penaltie s fo r

violatian s o f

th e HMR . U-HJim : DATC

: Apri l 14,1999 . FO M FunniE nBVonuTio NcoitritCT : Bl U WilhadnB . OGBc

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th e Chie f

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) 267-3137 . lacslrall e (202 ) 287^5106 . enuU : AJlanMirvwttiafya.gw , maUtr ^ address : AICMV30Q

, 80 0 Independenc e Avenue . S.W. . Washln^cn . D.C . 20591 . CUPFLBKHTAH

Y MnWMnaM r Bacfc^oun d Conpes s determine dtha t th e unn^UtE< l transportado no f hazardou s material s constltuto s aihiea C t o publi c safet y I nal l form s o f

transportation . Ccngrv B addresse dtha t threa t i n197 4 b y enacdn s th e Hazardou s MaiertaJ s Transportatio nAc t

CHMTA) . B y 1990 . I^ngrcs adetannlnc dtha t i^ritectlve enforcemen t <i f th e HNfTA require d mor e >cver e action , an denacte dth e Hazardou s Materi ^ Transportatio n Unifor mSafet y Ac t

o f 1990 , Publi c La w No . 101-615.199 0 VS . Cod e Con|ress . k Admin . New s 10 4 Sta t 4605 . Th e primar y effec t

o f thi s 199 0 revisio no f th e HMT A wa s t o rais e th e naxSmiu m ctvj l penall y for

vlolittia no ( to y regulatio nenacte dunde r th e mfF A t o t25.0O0 . and . fo r

th e first tbne , t o requir e a$25 0 ndnlmu mpemli y Ib r an y suc hvlolatlo aTh e HMT A -wa s leoodUiedl n199 4 andisncrwrcFciTG d t o a s th e "Federa l hazardou s materia l traiEportsUo nlaw. " 199 4 U.S . Cod a , Congtess . & Admin . New s 10 8 Stat . 759 . codifie da t

4 9 U.S.C . 51Dl-5i27 . Ii i th e 19B 4 icoodlBcatlon . Congres s speriflcall y state dtha t

dt e

. reoodlflcaitlD ncreaK dn o sutstuitlir e diang e t o th e eaarlle r

fon no f ih « statute . Th e Federa l Ctvt l Penaltie s Inflatio n Adjustmen t

Ac t o f 1990.2 S tJ.S.C . 246 1 (no(^ . a s amende dtg r

th e Deb t C«ll«ccio nImpnovcnen t A no f J9d6 , PuUl c U w 104-134 , Apri l tS , 1996 . pnMrfe s amectianls mfbratQustnient s fo r monetaiy.civ ap^^Itie s lo r inflatio n I norde r t o maintai nthedetiaivn t nflec t o f monetar y dvd . pcnsiuc s an dpromot e cntnpUanc e mdt hth e Jaw . Uide r th e statute , th e no w ctv U pertalty . iruadniuin s canno t

b e appUc dunles s ihe y ar e Implemente db y regulstton . O n Decembe r

ZO . I9SC . Ih e FA A publishe d anna l rul e (6 1 F R6744) . ImpIemenUn g th e statut e for

eac hctv U pentlt y subjec t t o th e PAA' aJurisdiction . O nJanaxr y 21.1S97 , th e FA A publishe da conectio nt o th e final rul e (62 FR4134} . Theflra l rul e I s codifie da t 1 4 CFK Pa n I3 » Subpar t

H . Pursuan t

t o 1 4 CF K 13.305(d) . th e maxlroun t dvf l peml ^ tha t irui y b e assesse dfor aviolatio no f th e Federa l hazarduu s materia l la w o r a hazardou s materia l regulatio ni s no w S27.SQ0 . Congres s assigne dth e responaiblUt y for th e enforcemen t

o f th e Ptdcra ] hasanJou s tnaierla l trar^^xxodo o faiw t o th e Secreta y o f

TVan^iortatien . Wthl n th e Departmen t

o f T^ansporttUon , th e Researc han dSpecia l Program s AdmiidsETatio n(RSPA ) idopi s th e Hazardou s Material s Ri^ulatlon s (HMI9,4 9 CF Rpart s 17 1 throug h176 , whic hgover nth e transportatio no f hazardou s ireterlal s (HaanaO . Althoug h RSP Aha s som e enforcemen c responsibilities , th e respcmslbllli y fo r enforcin g th e HM Rwit hrespec t t o dv Q avtado nI s delegate db y th e Seoetai y o f T^wisportBdo n t o th e FAA . 4 9 CF R 1.4700 - Th e HM Rse t

fort hregulatfcn s fo r

th e trajBpcitaUo A o f

Hazmat . A lowwlr ^ vIoluUo no f

th e statut e o r

o f (h e HM R ca nsuppor t

th e ass^ismerr t

of aclW l



### 520/810 ® 

## sw a VV d StLSeei?20 2 XV d iO-L l 0L02/BL/0 L

### 10/13/201 8 12:5 3 425227100 7 ANM 7 PAG E 19/2 5



### 1944 4 Federa l Reglster/Vol . 64 , No . 7g/Wednesday , Apri l 21 > 1999/Rulc s an dRegulaOon s penalt ybetwee n iZS O an d S27.50O , A perso n id s Knowingl ywhe n th e poso n ha s actua l kncnvledg e o f th e fact s elvln g U e t o th e \lolatlDn ; o ra reasDnabl e perso n actin g I n th e circumstance s an d eocerclsiflgieaSDnabl e cai « woul d hav e tha t knowledge . 4 9 U.S.C . 5l23(a](I}(A} , Th e Ctv U penaltie s autherize d unde rth e st.7tui cappl y( o EAC H violatio n o f an y legatio n se t forth i n th e HhdR . Moreover , unde rth e stamta . eac h Contlnutn E violatio n o f th e HM R ca n constitut e Bseparst e vlolacio n fo reac h da ya vlolatloi ^

continues , I n sccdo n 512 4 o f th e sbtute ^

Congres s prescribe d crimina l pena l DC S for a willfu l vlolaHo n o f (h e Federa l hazardou a materia l transportadD n Ja wo rth e HMR : wUlfli l violatlen a (c<iulr e evidenc e o f bot h krvwledg e o f th e law s an d regulaUon s an d Inten t b violat e them . Pa n 1 3 o f th e Federa l A-vlatlo n Regulations—bivesUgatlv e an d EnfoRzmer cPnnxdure s (1 4 CF R Par t 1 $ govern s th e procedurfe s applicabl e t o cnfbicemeiCordi e HM R b yth e FAA . Hasma t vfolatlim s acnsTlrr g o n o ralte r Augus t 2.1990 , ma yb e dismisse d b yo n adminlstrattv e la wJudg e (AL O I f a Notic e o f Propose d Civi l Pknalc yha s no t bee n Issue d wlthh i 2 year s o f th e violation , unles s goo d caus e fo rdela y ia s bee n shown . I 4 CF R 13.20S(d) .

- ;iConslderath m « f Statutor yOUeti a I n denamloln g th e oakiKtlo n t o b e assessed , penalt Tcriteri a se t fbrt h I n 4 8 U.s:C . 512 3 mus t b e conslderec L Thes e crinsl a at e ih e nature , di^umstHnces , extent , an d Eravle yo f th e violation , th e degre e o f ciilpablte yo f th e rloilator , ari y histor yc f past-dolatloru . th e abilit yt o pay . an yeCeC

t o n th e abilit yt o continu e t o d o buslmss , an d otha-maRcs s a s Justic e reqtdns . iSora e o f thes e consldertdoii a alread yar e factore d t o som e octe m Int o th e categorie s I n th e Hazardou s Jtlatefla l Sancdo n Guidanc e hbbrlx . Th e statutor yfactor s ar e furthe r considere d unde rth e -weightin g an<4ysl s (ha t I s iwifouiie d t o IrKllcatBth e amoun t o f cfvl l peni^ ywithi n th e appropriat e range . Le . a t th e minlnum . moderate , o rmaximu m portio n o f th e sanctio n range . T o oanqpl ywit h th e underlyin g purpose s o f th e Federa l hasandou s materia l transpoKatlc n la wan d HMR , a saitttlo n shoul d b e impose d tha t i s suIBdent ^

detenen t bu t no t esccesslve . H i e Hazardou s Material s 5iv>ctlo a CuUano o i s designe d t o promot e bene r consbtcTK ys o tha t sirnlla rpenaltie s ^X K Imposn J I n simila rcases . Th e Matri x inge s ar e Intende d t o i^ec t th e nature , circumstances , extent , an d graviQ ro f th e •js ca > coiDpare d wit h othe rtype s o f cases . Eac h case , However , mus e b e evaluaie d o n It s ow n faciz . Asanctio n ma ydiffe rAo m th e Matri xrange s -whe n th e fact ! an d circumstance s o f a suppo n eithe ra greate ro rlesse r poutty, . Whe n a specia l agen t believe s tha t a pmalt yshoul d excee d th e Matri x ranges , iih e agen t shoul d oortful t wld i leg d coiinse l befor e furthe rpttteessln g o f th e Einforceinen t InvEsHgatlv e Kepa n (EIF^ . Till s consullado n b no t necessar y I n di e ais e of a recommende d penalt y tha t I s LES S tha n tha t provide d m th e MaM xI n eldie rsltuado a th e basi s for Ih cdecisio n l o g o outdd o th e range s shoul d b e explaine d I n detail . Violaclon s o f Par t 1 ^ o f th e HMR . whic h eiitaiblis h particula rr^ulremen B fo rai rcarrier s an d othe ralscraf t operaUT h a n containe d I n a separat e nuirl xKowevcr , suc h opnalra s ofte n oSc rhaxardou s material s fo ral x trunporaticm . a s we D a s accep t an d trab^pori;them . Fo rdil s reason , suc h opoaipn i ma yb e Uabl e fo rvlolador a bothaa a busines s entli ywithi n Ih c Hscardou s Material s Sanalo n Guidanc e Matrix , ai-wel l a s specifi cai rcarrlo r -vlolatlcm . Us e a f ili> e Sancdo n Guidanc e Thi s guidanc e proi>lde s agetx y posonne L wM i asystemati cwa yh > evaiuat o a tats e an d arriv e a t a n appropriat e penally , considerin g a O th e relevan t JtatutDi ycriteri a Includin g an y nthlgMtn g an d aggnivattn g drcumstanDs , StMutor ynmsldoatton s h«v e bee n Actoie d Int o ti Kvariou s rat^ge * wllihl n th e Sanctio n Culitanc e Matrix , DiitennlnaUo n o f wher e a sanctio n Ile a withi n thes e range s i s aide d b ya scrie s o f w«^tln g rjuesdon s d0 t pn4>e : di e variou s ag^vvatbi f an d mitigatin g faenx s tha t ma yeds t I n a Fbtt . thf t wdghtlr^ g analyal s i s perifannad . Agcn ^

persorute l respon d toaseric B o f <piesUon s tedeienniri e th e vpegat a ^velghtofth e case , Ih e ag^cgat H vvelgh t o f th e cas e help s dettrmln e th e sanctio n amoun t o f eac h vtolado n grou p withi n th e establishe d rar^E s o f di e Matrix . I t I s Impulan t t o noi e dta t determlnado n o f wher e di e sanctio n lie s withi n the,Matri xb rv H th e rvid t o f a mafhemadis J computadon . Bvaluado n D Tth e cas e I s base d o n di e totalit yo f d M J^Kl s an d circumstances . CoMrally . I f th e amwo-l D a particula rquestio n represent s « mor e significan t aspec t of a case , greate rconstdoado n shool d b e glva > l o iha i answer . Fo rviami^e . violation s Imrolvln e a n extremel y dangerou^substartce . «vo i i n robiui e qiantldes , migh t warran t a penall ya t th e maxtitiu m en d o f th e rang e o reve n a penalt yexceedin g th t Matri xnntaB . linde rth e SaiKtio n Guidanc e Matrix , agenc ypersisnne ) detcnntn e th e categor yo f >1ota!o rth e perso n fells -withi n (e.g. . busines s entit ytha t regularl yottera , acccpb , o rmnsi>ort s Hazma ^ an d th e offens e categor y(e.g. . Undeclare d shipmen t withtr i Hazma t quantit yUmltatfons) . Th e sanctio n range s unde rth e variou s violato r categorie s tak e bit o accoun t th e relativ e ciilpabiUi yo f di e violator . Similarly , di e oSTens e categorie s addres s th e nature , drcumrtanciis: , an d gravit yo f th e particula roffense . Afte rdeeondnln g th e qipropriat e categorie s an d intenectin g bo xo f th e Matrix , a^enQ rpersonne l tha i determin e whic h cubcsieeork s o f oSinse s (e.g. . ^ppln g pi^iet^an : allege d t o hxv e bee n violated . Base d o n th e weightin g ana^ b performe d I n Sectio n 1 . a n appropriat e penalt yl » assigne d foread t o f th e appllcafal e vlolado n groups L Th e penur yamoun t foro ^ t^evan t violatiD n gmu p I s adde d togethe rt o reac h th e lecoirunende d sanction . Unde rSocdo n I H o f di e Guidance , th e specia l agen t the n coRsIder s odie r relevan t CKtors . includtn g evideix e o f comcthr e action . Alecamivende d sanctio n ma yb e reduce d prio rt o th e Issuanc e D T» Nodc e o f Propose d CM I Penalt ywhe n ttier a I s ado^ra a reliabl e Irdbrmatlcs i concernin g th e ootrcctl'v e action s tdm i b ya Kspondeiu . Ccneetlv e acdor a tha t JiotUJ rreducUo n o f di e reoMnmende d penalt ymus t excee d th e minimu m lega l requlientents . Th e specia l agen t als o attempt s t o provid e Informatio n oonocinln g th e allege d violator' s size , flnazwial'condition, an d ablH ^ m pa ya rtxzumocxide d sanction . 'VVfae n a n EI R i s forwarded I D lega l coimse l fo reidbrcemen t actlo a counse l wit h gK e apptoprlst t consliicratlo n t o di e recommende d sancdon , FA Alept l coimse J w m als o revie wth e £aanrs . analysis , gin d dctenolnadon a unde rth e Hnardou a Matetiai a Sandlo n Guidance . An ybasi s fb rdeviatin g Em m Ih e i«m»inmei>< J sanctio n I s atdlnarfl y eq>laine d m , an d discusse d -vrlth . th e lavTitftgaHrjgspeca i agen t Fina l determlTiatto n o f th e sanctio n amoun t propose d I n th e Notic e o f Pioposcd . Clv a F>ault yI s ordinaril ya produc t o f Join t d^lsoxudBldii g an d approva l o f th e liP'esttgatln g ^gen t an d di e le ^ oillce . Fedoa l Aviade a Adialnisinidi m Haaardoir s Material s Sanctio n Gfddanc k Thi s Sanctio n Guidanc e I s divide d int o thre e sections : II . UtUlxatiai n o f th e SaixUDt t Culdakc e MMTI X (Matrb) . an d nr . Cwisldcntla n a t otht rBtaanct yFacttn . Th e Sancdo n Cmdanc e MaOt ri s eorvuine d I n Flrur c1 an d Ih e Ris k C»te{vri » ar e corHitne d I n figur e Z .

S20/eL0i a SW Q VV d 

## stLseetso s xvd io- u OLOS/GL/O L

### 10/13/201 0 12:5 3 425227100 7 ANM 7 PAG E20/2 5 

# f Federa l Register/Vol . 64^NQ . 76/Wcdne5day . Api U 21 . 1999/Rule s an dRcgulaUon s 1944 5

I , Cav e Analyt b (^valuatio n o f 6ia(ulor y AuesimBn l FoctaMs ) Thi s socUoncontain s aserie s o f question s designe dt o assis t specia l agent s an dattorney s I nevaluatin g a particula r

ase . Th e quesdo nrevie w factor s Invohin g th e nature , clrcumsonas , exnd u an dgravl ^ o f th e violation , th e violator' s degre e o f eac happlicabl e vtolado ngrou p o nth e Sancdo nGuidanc e Malrl x (Fig . 1) . A . Th o NatuiK , CirTxanatanats , Catcn C an dGrsf/it y o f

th e Vlolado n CPactn s Concernin g th e Shipiren ^ l.vniatMatGrialf» ) WasOftered . Transported , o r

Accepte dfb r

Ai r Tian5]pt»tadon 7 ^ cuIpHblllty , ui dth e vlobttor' s histor y o f I (Ftgur e 2 divide s hazardou s manriad s o f J prior-violations . Sonn e o f thes e factor s ' perdcula r classes , divisions , an d ^ ar e alread y considere dt o som e escten t withi nth e variou s categorie s o f th e Sancdo nGuidanc e Matrix . Th e question s I

nihl asectio nprovid e additiona l ojosidaatlo no f th e scatutoi y factors - an dcomln e th e existenc e o f aggran'atlngaii dmldgatln g faram ^ |j > a Th e agenc/Bittom ^ answer s eacl i questio nI nSectio nI an ddetermine s i f arestiv e weigli t

o f mlntroun* , moderate; , t r

maximu mshoul db e assigne dbase do nth e respons e to th e ({uegitlon . VUd

i th e exceptio no f Quesdo nAL . no t

al l question s wil l appl y t o agive nfac t

sltuatteei . Questio n A . 1..'Whic haddresse s th e hatiB e n f th e hazsridoiff

i uterial ^ tnvohred l t s ttie onl y questio ntha t

alwaQ Wreceive s a ,."ys' ' answe r

t p on e o f

It s s[ubquestlon s an dI S coosldete dI never y ease . Th e

. agp^vadn g o r

mitigatin g fbctm s tddresse dA dt e quetfon ntsnl y appl y t o di e as e whe nth e questio nreceive s a -yes ' napowe . Qi^tlonsreceivin g a "rw " respons e d o nwaffe ath e weightin g o

f th e cas e an dar e no t ronsldered. Fb r

egomple , I f

tfi e violatio n resulte d11 1 han nt o penon i o r property , tha t ma y bea neggravadn g ^Kto r I nth e

. case . However , th e fac t tha t th e Violatio ndi dno t

naul t I nuyur y e r damag e I s "o'^ i imtlgatli ^ &cto r an d shoul dno t

roul t t np^nidt y mldBation . I nroany lnstanf:e» . th e answer s to-nxist . o r al l o f th e question s wil l h e "no " an d th e onl y relevan t

weightin g facto r

i n thi s sectio nwti l b e th e risk categor y o f li mmateria l Identlile dI nQuestio nA , 1 . I ndelemlnin g th e fina l aggrept e weigh t o f th e Gasc . th e lespanse s t o eac h o f th e quesdon s d o no t

hav e t o b e equall y considered . DeteminatlD no f whethe r th e overal l cas e shoul dhav e a mtnimuai . moderate , o r maximu m weigh t canao t b e detomlne dwit h maihcmada l certainty . Cencs^Iy . I f th e answe r t o aquestio ndemonstrate s tha t Ih c fictor a t Issu e represent s amor * significan t

aspec t o f th e case , greate r ^onsider^tlD ni s give nt o tha t Factor . Th e -Ina l oggf^git

B weigh t i s base do nth e otatlt y o f (h e fict s an dclrcusrutance ? o f Ji e rase . Onc e determined , th e fina l sfpregaf c w«igh t to tfte nutUite dt o arriv e a t tli e recommende dsanctio nfnr paddn g ^«up s Int o thre e ris k categoric:: ; Categot y A . Categor y B . an d Categor y C . Fin ddi e material^) ) a t Issu e I nPlgiir e 2 an danswe r

th e quesUovi s below. ) a . b d K materlal( ^ oBSered . nanspBrted , o r

accepte dI nCate^w y A ? I f yes > assig naMaximu mwei^ L h . I s (h e matEslalQi ^ oAred . traospixted , o r

accepte dI nCatean y B 7 Ifvet , assig naModerat e wd ^ c-1 » th e inatbrlalfs ) oCixEd . transpaned . o r

accepte dI nCatcn y C 7 If year , aslp i aMinimu mwe ^ CoHnae e Note : Th e categorie s I nF||i» e Z rcpt«*<nt di e Inheren t

lU k (^daf^t r to ^ transpatario o peae dfay th aiBaleriiLinher e I 3 more thv k

on e typ e o f

hnattkaviiMierla l involvB l I nlh> shlpoe mBiBwe r eb b •jiKsnon i uslr ^ d mtnardnnimtcria l I nth e ZWhal : Quantit y o f

d» aMaterial(s ) Wa s Oflened , Transperte^ t

o r Accepte dfc r Ai r Ttajiuponadon r a . Di dth e packagiefs ) excci< dth e authoiiSEe dquantit y UmltatlDn s b y a s(0ilflaan r

araouni ? I f yes . conside r

« Moderat e o r Mudrnt mweigh t

dcpoidln g o o th e degre e t o whic hth e UrtdtaUo nwa s excisedcd . G^danc e NoteslheMatn c abo^vt f I n Sectio nI Etaks s incoaccota x th e fanne d •Ibuaan i whei o ih anit^tOty tlnataUsa B .Ib r th e materia l ar c excBHjeit Thi s pat t o f th e inalys b i i intende dt o detamtn * vrfcdier Antho-asywadn g cuvumsianQc s «ci a wher e vrantlt y Umtetion s ar e BBxede dtr

y a sipdncuitnmoum . Wbetha r th b fhoarl t asslpia l a t moderal B o r

msdira mwe%>

awi n depen dOi l tli e degrtx b y whKhrh aqtiMtlty UmbKto t wa s exceeded . Eara^ K Th e quantlQr

Utaltadt nfix gasOUr w e napassenge r

plan e t* 5 liter s pt t pacliage . If

avlelatr v ollie n3 0 iJtB s ma stngl e padlE^g

e e napaoenp r

plane , ihlaiia y miil t I namoidnaani vrcig

M ftrihls beiix . b . 'Wer e the mmultipl e package s i nth e shlptiKni ? I f yes . cnnsjde r

aModerat e c r Maximu mweight . dei3endln g o nth e , numbe r o f package s an dtota l amoun t o r hazanlote c materia l bein g transporte di n vinlatipn , Caldaix c KMc : Apadcag e mean s • pfickitgm g |>lu s It s cuiteiMi . There jita y b e multipl e padraQC

J I nen o shipmen t

or overpack . Multipl e paduge s ofte nrepraaen t multipl e violailons . Unde r th e Sanctio n CuMance . ihl s 6C TI s considere da n ucpa'atla g drcuiraon ^ liihc r diR A • dlrvc t •nuIUpUe r of di e sancUo nfo

r eu A vMauan . Eac hcase , however , mus t

b e ci^luate doi « It s panioila r ftds. A vo y brgemunlie r o r padcage s ma

y rend t Inaud i anegrcgtou s B K Uin t th e owal l weigh t

o f th e cas e t s s o hig hiba c apcnalQ

T bqivi dth e jnaxlmiu n poin t i nth e t«ng ahwamnted . A nlik««iigadi mwil l oocaalMtalh r iwca l severa l sMpiseni afromth e sam e oAfo r eve r aperio do f several dm , al l o f

whic hinvolv e vlolacion ag

T di e HMK . Thes abtdepend aI t ao s o f offiorfai g usuall y ar e oomolldaiB dInt o on e U Ran d«dAc3» dfal on e Note it f Fropoae dCtvl l Panal^ . HowevB . b r purptfe aoTdettmilnfri c th e appropriat e MOtaioa , odtapaiaB B ohlpmentwiU Y a acpataiealrwajrfall l o r

shippin g papen , . separat e dcsdnacion . and/t r irr y othe r svickn M B4s>Ulshtai

alea s a . npuai a shlpa»xl»e»dhMrUyoonsldeicdB aa tqaKt atoddent

for pfxptse s ti

f applyin g Ih e Bwvctl mguldan s analysis . I

k l a ruSBBSie dtha t th e icparat e shdpMn ab e treate da s Individua l corn s I nd « E A ari d theKoticeflrFk^)pasedcavi l ?fenailty,-wjt h. eac hcoun t

havki g l » ow nsandto nderive d (ha s qjpUcano nof

Oil s jMldanx . ^]olB . ther e mus t b e sufflden t

evlihaz s t o supp«r t

ca ^ 3 . Di dth e Shipmen t

Caus e Damag e o r H a mt o Person s ri r

tVoperiy . o r

Interfei u 'Wit hCommerce ? I f ye9 „ ooreidB r

aModcnt e o r Majdinu mwel^i L : G«ldaBcaNB<eIlM£KtihE«aqda9BaG B oooate da s aresul t

o f O M shlpcoa x l ano t • mltigadn g Cicttr . However , damag e o r hani i tn^ y ag^a md w nAire , CbcuBistDKCS , eitai b an diravlt y o f

th e viebdon . Dependin g ei t

th e dtgie ao f

(temag e cause d b y dwshipnicrr t

and/o r dt e cBdstancBDrothE

T anravatbvlaccnra . dqianut o fimath e range s A . Uoiamr' aDegre e o f Culpabilit y (Ih e Matrix , fleur e 1 . cnnsMer s th e relativ e culpebUll y o f

th e -violator . Thi s sectio no f

th e analysi s furthe r

evaluate s di e degre e o f

culpablll ^ o f

th e vklator. ) 1 . I s th e VloIolD r

th e Manufacture r

o f th e Hazardou s Material ? Ifyes , conside r

aMaximu m-weight . rwMwnr t NotarAmanufccairt f

i/ o hazaadou s raatetial I s emeete d10 hav e ootDpleiahnuwiec^ec f

di e natur e o f

di e liBaBdcusnMttar

M an dthia , ahig h<I>qgtT

e o f cuIpablUi y wi O ordlnertt y b e Impute dI D I t 2 . Di dSomeon e Othe r

Tha nth e Violato r rn!j>ar e th e Shipmen t

fo r Transporiatlon ? If 3res . conside r

aMinimu mo t Modoat e weighc Cwtdttio e Note ; Factas^vpertin g a n afllnnottv e ans^'c r

t o (hl v ^esdo nm^y b e caus e to mldKat

c culpabillc /

«iyl/ur pumi e a 

## sso/oso E SW G VV d StLSeGtS0 3 XV d SO-L L 0102/BL/0 L

### 10/13/201 0 12:5 3 425227100 7 ANM 7 PAG E21/2 5

1944 8 Federa l Register/Vol - 64 . No . 76/Wednesday . Apri l 21 . 1999/Rul9 » an dRegulation s .Separate enfoicezDen

l scclunagains t

ethe r responsibl e partie s wh o handle dth e ^pmen c A shipper

tha t taship amateria b ecEivEdftoni ani^iie r

perso nInOi

aaam e ,>ac]agln g l i indeprndend y roponslbl e for eiuiBln g th e shipmen t

corrpUi awit hth e HMR . Ncvenlielen . th e rcshlppe r t s generall y cocddlBe dl o hav e alessi x degre e o f cMlpit^l V Ib

r nttrpUanc e OTIIB ! padcag e 23 reteived.Koweyo' , If

th e reshtpgpc

r unpack s and^er

nqtackage s th e shlsmcxit , th e T^siiippe r iccialr H a s culpable a s th e orieliiai shippe r an djaienD y I s not

accorde d mlticatie nimlerihi aweightin g racter . (Fo r pwpos ao f

thi asection , a"rerhlpwi " nAi s to apa3un><'dier

thanlb e wricbm

l ciieror , wh o ofib naahlpmei u arhassrdeu i macoria l ro f ri*ii.^|w>ijitRtfi. | 3 . Di dth e Vlolaio r

Seasonabl y Rel y o n byjutipc t mformaUo nFro mAnothe r Souita ? I f yes , conside r

aMinimu m-weight . Ciddanc e tfeltfDcMnMnc ^ nr reasonabl e reUatto e o nmotherpaiq'ma y b e amltlgatiii c facto r wteioMoided'i g (h e vldator'adE^i s - o f culpabOl^ . Fc r

exampl e rellan as na r Inaciairaif t Material SaAi ^ Da u Shee t (MSD ^ na y b e mitigating . 4 . Doe s th e Violato r

Hav « aHistor y o f Prevltru s HM RViolations ? I f yes . conside r

aModerat e o r Maximu mwelglk t «?iil-»"~- » NoecT o otablls h3 violatio n

- lifaouiy.apriarvlAlBttoiiiiiiHbeanBctuB l IrxttngofvlBbeia npurvwaa ato alega l atfbrtemerxaeuoik . SpMlal a^K S shoul d attcrta' ^ t adctttfoln e In acv^''*rt ar^irTtii m of tfiaviolati r

vi dwhethe r

odic r bualne B enUtle ar x nanK s w e w hav e bee nuse db y th e entit y I D order

t o obtalr > acoiixilct t

. -violationhistory.Thenianberanda^e r vlelatlon ashoul db e oimliliinl , OMlliMihr, , finding o f

vtoladn nmet e tha n5 y^»Dlr l can y less-welglit . unliB i B cOfSlnulr ^ paim n of-violatio nolsb . C . Othe r Factor s Eac hcas e mus t

b e evaluate do nm particula r

bets . A s SUCI Lmaii y case s ma y presen t

uiUqu e scenario s an d aggravaO/ u o r

aiUlBitln g factoar

atha t ar e no t roudnd y seen . I f

a nagpavadn g o r rtdttgaUn g ijrcunidanc e exlS O tlu t I s nt x adequatel y addresse delsawher e I n th e sanctio nguidance . I t ma y b e include dan dassigne daweigh t unde r dil s section . Th e facto r

shoul db e clearl y IdBntifle dan dexplaine di nth e analysi s portio no f

th e EIRan dcarefull y sorutinlzx db y lega l counsi ^ CuUaa o NMEFO Tej^npH , • afa^anent D Fasingl e packag e oentalneAg sevcn l dlll^rci x IiaxBideu s material s ma y pnaai * a n aE^Tvailii g foaor. TTi

e depc c o f seriousnes s Wthi s EiCtc

r wil l Increas e I

f Ib e haevdou s tnatcrlal s ar e Incoai^aatibl

B -wK ht«d i otfKc

r ind , iherefbia , creat e a nincrease drlsl c ' MlUfalin g Actor s may als o axtaitKi l hav e no t beer i adeiiuatd y oorBldcred , Pe r «xainple , ashdpnicn

t ontatning ad e mlnJint s quantll y o t matetlB l la-B O aiBDun

t th^-woul d hSM C qualifie dund« T Ib aamall quantlq r e«oq>do nof i ITX4 an y pieret na(Biug^Un g raetsrl f a s aicsu k

ther e wa s areduce drisk " t o M'e v i ntransportaUvn D . Detertnli K

th e Fina l Aggrcipt f Weigh t o f th e Cas e Al l th e responsas/weighl s ar e evaluate dt o determin e afinal aggregat e weldi t o f th e cas e (Minimum , Modvate . an dMaxlmund . Qut^Ion s receivin g a. "no " rcsfions e wi nno t b e Include dI n thi s evahjiation . T o detemtln e th e fina l aggregat e weigiit . th e a^nt/atttxrw y ' mtB t exercis e hla/he r

discretio nI nligh t o f th e stannar y ftdocaan dknowledg e o f th e parttcuia r

fact s o f th e case . Th e &ct s o f thi B partlciila r

cas e wil l dlaat e th e telath « Impoftanc e o f eac ho l A e weighting ; fkctoc s b

nreachin g • final aggregate-wtigh t

Th e Bita l aggregat e -weigh t shoul db e decide da s alesul t e f rareiii l analysis : TKX amathematica l Avet^glns . I t

i s possibl e dia t

asingl e weightin g &cte r

ma y outweig hal l others . Ttii e qent/BHnmey' aanalysi s shoul dahvay s b e etplahn dI nthi s nBganL . Esannle : A las e IhvDtvlng ahaoanteu s maOslB l I nth e lowes t

ris k caegM y mqr

b e evaluate dt o hav aaHBsruiM mwe((|h t becaus e o f

idi B la mquatxlqr

ahlppe de r

tlte damag e rwultlngaon i ttiesldpinenL I LUdHt t

fb e Matri x (FlgnrE1 ) Th e sanctio nrange s titxle r th e oBera r an d(dTenstt

categorie s o f

th e Sanctio n Guidanc e Matri x reflec t di e relativ e culpabllltj r

o f th e violato r

an dth e nature , ^cumstances . esnent , arx l ffcafVlQr o f th e case . Conslderatla no f thes e particula r

statutor y factor s unde r

. th e Federa l hazardot « maieria l transportatio nla w I s buil t Inii s th e Matrix . Funlic r

analysi s c f

th e stahito y bctoi s I s require dt ndetermin e th e appropriat e sanctio n-withi nth e range s BtahUshe dunde r

th e Matrix . Th b analysi s I s perfomw dI nSectio n1 . Alte r determlnlri g di e final agpegat e weigh t ofthecas e undo-th e Sectio n) analysis , d u t welglil t I s applie dt o th e appropriat e matti x rang e t o Identif

y th e rc^nmmenide dsanctio namoim t for eac h o f di e relevan t

-violatio ngroup s an dfor Ifi e cas e a s awfiole . Althoug hth e Notic e o f Proposet l CtvU PorMll y ma y dt e nuonettm s irlolatton s of apvticula r par t o r subpar t o f th e HMR . unlm s tqiwar d departur e I s Jistlfled , asingl e penalt y amoun t for eac hviolatio ngrmi p I s ordlnaill y use dt o reac hth e fu u sanction . A . InatructSon s I , Identify th e appropriat e catte^or y for di e typ e o f

entit y an dth e natur e o f th e ofTiins e Involve dI nth e case . Refie r t o th e Deflnitlor w Sectio ntha t follow s th e Matri x I nFigtii t 1 fo r guidance . C o t o th e IntETsectlji g bo x an dIdentif y th e applicabl e antrUo nrang e fo r eac h violatio ngitup . 2 . Appl y th e conclusio nreache di n th e Sectio aI weightin g analysi s t n assig nasanctio namoun t wlihi ath e mlr^tenum , moderate , o r maximu m porUo no f

d 0 sanctio nrang e fb r

isic h relevart t vlobtio nBTOUp

. Th e recbnimende dclv u pena l ^ a t dti s stag e I s th e sur ao f

th e sanctton s for

eac ho f Ih e applicabl e violatio nptnips . A sanctio nshoul dno t

b e assesse dfo r

a violatio ntfoo p i f

ther e hav e bee nn o violation s o f

dia t par t o r subpar t o f th e HMR . Th e mnctfo namoun t for eac h violatio npru p nee dno t b e Identica l bu t ordlruEfl y i s withi nth e portio no f th e portteula r

sanctio nrange tha t represent s th e iTtfetaD-weMitiaf th e case . 3 . Dcpaitui e front

th aMaCil x ranges — TheMsnif x i s defil|p>e dt o cove r th e ma^orl ^ o f

case s invotvjn g violatian s o f th e HMR . Th e lac b an dCUcinnsrance s o f apnrticttla r

case , however , ma y Justify eidic r

a nupwar do r

downwar d departui e fromth e Maerl x rangee . Thi s sanctlD ngmM^nc s anticipate s an d eiKeurage s departitr e bm nth e Matri x renge s whe nJiBtlfled , A cas e involvin g vloStdon s I nwhld i th e natun , drcumEciances . extent , an dgmvlt y o f th e Inciden t ar e partlciilarf

y sevo e o r egregldus . ma y justify upwar ddepartur e fitnnth e Matrix . I f

th e Irrvesdgatln g agen t believes , base dupi mdi e Cat s o f acase , tha t

apenalt y shoul densecr i th e Matri x ranges ^ Ih e agei t shoul dconsul t wit hI^a l counse l hefor e fiathe r processin g o f

th e EIR . Conversely , th e lixvestlgatln g agen t

ma y believ e tha t mltlBatti ^ bctor s Justif y adowmwar d departur e fiTM

nttis Matri x range . Cansnltatio nwit hle ^ cotmse l I s no t neces^u y i ndi e cas e o f arecnmmcnde d poriali y tha t

i s les s tha ntha t

provide d I ndi e Matrix . X

hehfaersltuattan . howmrer , th e a|^n t

I s I D peovld e a detaile dexplsiatlo no f di e bvl s fb r

th a dcidslo nt o g o outsid e th e ranges . 4 . Vloladcn ao f

Par t 17 5 rcguladons . whic hcstabtb hperticute - re(|u[rement s fo r aJ r carrier s ar M othe r

atrcrai t operator? ^ ar e containe di naseparat e tnanlx . However , suc hopoaacx s ofte n offerHavna t

for at r traneportatio na a wel l a s accep t

an dtianspai t

it . A s such , th e opcnto r

ma y b e Uabl e Ib r

-violation s a s abusines s entt ^ vrichi ndi e mai n Matri x a s wel l a s for

thespccUI c Par r 17 5 vlolatfons . m . Impac t

o f Othe r Staturm y Factpr v Th e Federa l haardeusmaierta l traDspartatio B la w ab arequire s consideratio nof avtolata r s abilit y t o pa y actvi l penally , th e impac t o f th e civi l pena]t) r

o nth e -violator' s ablllfy t o



### SSO/L2OI 0 

### SW Q VV d 2tLSeGt20 S XV d 80:L L OLOS/GL/O LlFl/13/201 0 12:5 3 

### ^125227100 ? ANM 7 PAG E 22/2 5 

# c Federa l Reg)$ter/Vo L 64 . No . TG/Wednesday . Apri l 21 . 1999/RuJe a an d Regulatton s 1944 7

innUnu vt o do

< bislness , an d othe r matter s tha t Justic e requires . •Consideratio n e f thes e factor s ma y resul t i n adjustmen t o f th e recoimncnoe d civi l penall y<alculate d i n Sectio n I L I n sltdatfon s wher e di e agen t o ratbine yt s i n possess ! oi t o f tnitlgatltt g Informadon , suc h a s Inabilit y t o pa yth e recommende d civi l penaB yo r cntroctiv e actio n Qkcn . reduet f o n o f di e recomnsende d penalt yma yh e appropriate . Mitigatin g Infhrmstio n shoid d b e sufficientl yreliable , uncontroverted , an d documente d t n artie rt o suppor t reductio n o f th e reconunende d civi l penalf yprlo - t o jsstdn g thcNoHc co f Propose d Civi l Penalqr . A . AbOit yT b IFVyivContlnu D I n Buataes s Hlstorlcaliy , ih cFA Aha s cnnsldere d thes e factn s BftB-th e Issuanc e o f th e Notic e o f Pltpese d CM I Penalt ydu e t o t h e absenc e o f rdlaM e Bnanda l mformaflo n o n whic h l o bas e a Teductio n fsto rt o th e issuanc e Of f a Notice . T wSanctlc n Gtilcbnc e reooimnend i tha t th e specia l eges d mak e ^fort s t o obal n rdiabl e IrdionnaUon . regardin g th e -vtolorrx-' s siz e an d finands l conditio n forrevie wprio rt o .th e Isstmn a of a Notice . Thi s InfamiiitlD n WI H h e ttansmlBe d t a th e

. lega l offic e forainsideratlon . I t l a njcognlae d iha t i t ma yno t alw^n s b e passibl e fo rth e jpeda l agen t aiid/'a r BtBome yt o abial n reliabl e finaqcla l Infotmatio B o n a pardcida rrespondent , tha t ilriEuicIa l clrcimstance s chang e an d (ha t tnfornuao n ma yb e pnTvide d aifbc r t h e Issuanc e o f di e Notic e tha t rru y wanan t fLmhc rcaaa^ldeTacle n o f a respondent' s sblll ^ t o pay . I - The ; lnvBsUgatin g agen t wl U attxmp t t o Includ e financial InfbnEaUo D a s a n exhibi t i n th e EIR . I t I s anti ctpafe d tha t tills Izifonnution . i f available , wil l b e obtaine d fiom reliabl e financial dat a bses . Filnancta l documentatio n shoul d Include ^

bu t nee d rxi chi e limite d to , Inftemallo n concernin g th e vkilacar' s coipont e structure , busines s aiUress . officers , numbe ro f employees , an d gros s revenues . 2 . Th e investigBiUn g apai i provide s a statemeiii t o rcommen t wit h respec t t o t h e financial InformaUo p obtaine d hu t ordlrwril ydoe s iM i evaluat e th e financial conditio n of a roponden t wit h resp ^ n > it a ablUc y( o pa ya proposec t civi l penally . Th e Investlgstlr ^ agen f s statemen t slioul d encompas s tree s suc h OS th e numbe ro f employees ^ pes s revenues , an d Tiattr e o f bualnes i e f th e violator . 3 . FA Alega l counse l review s th e finvKla l Infonnatio n provide d I n th e EI R aix l crvuluais s l b sidBdien ^ an d relevanc e t o th e recommende d dvi l prnalty . IjEga l counse l ma ydetermin e I f mor e aixres t Informatio n exIst B cor«:endngtheAnaiKialcondltitxio f 9 . rcspomlein t an d I Ttfia t Informatio n substamlaU ydCSti s fiwn th e inromnlio n avaUabl e a t ih ctime o f prepatnlo n id'th e EIR . I f ther e b a basi s f o rdelenxdnir ^

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 sanctio n I s adfuste d prio rt o Issuanc e o f th e Notic e ofPropost d Cjv u Penally . Thl xb • piellinlnaii yconsideratio n of a company' s abilit yt o pay . A s such , pre - Notic e adiustmen t of a recommende d d v U penalt yiloc s no t preclud e furthe r

MATRRCAN D DERNmON S

(F^B»1 ] consideratio n of a respondent' s financia l claim s afte rIssuano e o f th e Notice . 4 , I f lega l counse l detsmine s tha t a . respondot t qualifie s a s a smal l busines s entity , counse l na yoonsldc ctha t statu s unde rth e Snai l Busines s Regulatot y Oiforcemen t Fairnes s Ac t {SBREFA J wii h respec t t o Ih e appropriatenes s o f th e recommende d civi l penally . A respondent' s statu s a s a smal l busines s entic / tna yb e cbnsldtie d i n conjimctlo n -wit h analysi s o f th e stihitor yfactors . ACorrectiv e Astio n T h e moB C comino n "othe rmalter " tha t t h e PA Atake s Int o conalderado n i s aarcetiv e actio a Oxreetiv e actio n tha t result s i n iikltlgatto n I s remedia l actio n tha t exceed s in e rnlidnta m lega l requltemenis . Th e prinai yfactor s I n determlidn g th e appropriat e amoim t o f penall yxcductie n ar cth e eaden t an d tunin g o f th e CDitectiv e action . I n othe r wonls . ndtlgaao n 1 » dcttmln e J o n th e bosk i o f bo wimxj i correctiv e actio n wa s take n an d ho wquickl yth e actio n wa s taken . Systemi c^an ^ inb»de d t o peeven t futta e -vloladoo s ahoiil d b e give n greate rconstdentton , Similarly , oorroctiv ci^o n tha t commencE a upo n t h e vlolatnr' s B m notic e o f th e viol a tio n onflnarU yI s gtvc n peate rcredi t tha n correctiv e actio n tha t commence s onl y affas rIh cNott a o f Propose d Ctv n Penall yha s bee n Issued . Mitigatio n of a reoommende d clvi ] penalt ybase d uprn i ceerectiv e actio n shoul d bexefiaancc d i n th e Notic e o f Fnjposc d Ctv U Penalt ys o th s di e le^onden t I s o n notic e tha t credi t alread yha s bee n give n fo rsai d action .

tXlEfia e cxiagoile s I . Declare d Shipment : l > 6l<'pi*" U Sapors.»...—. . .•».

_..._ _i...„_. . 2 . txbej a —...,.• ; , 3 . Marttv * ••.- ' _-..-.. , ^._,_„.. „ _^.^__ _ 4 . nKSogln g „„.,_,.. __..„_...„.^_.__... _ 5 . TiaMn g „,._ , . .. . , ,„ , aBno) ? FkEpom o .....M^>N, . 7 . Reioas e Int o Envfto n _._«_. . f L itmSoOait i SN^en t Withi n Hazira ! oinMR yUmKaSpris : 1 . Shippin g Pepor s 2 . LabB h _„ : . 3 . Marft|n|] r,__.„,..», . 4 . PachOBln g , „ ,_... . 5 - TtaWnf l .._.„ „ -. . _....—,„,„„.._..„_,., . 9 . Emer ^

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O 1.000-6AJD 0 1.000-5,00 0 1,000^,00 0 1 U« e ma h MMIK . Definition s

- (a) Ai r Ceaie e an dOthe r

Aircraft Opmto r Croup s ff. if. fit , /V^Mr carrtei s an dOUH X alrcral t operator aar e di-vldc dInt o tw o categorie s fo r purpose s o f determinin g a nappropriat e sanction . Thes e categDTle s track , th e ai r carrie r ^vup aest^Ushe dI nFA A Orde r No . 2150.3A . AppBiYdix I , CrnnpUaiKe / Enforcemen t

Bulleti nBZ-I , bu t

als o IniJude s an y opoatii r

o f anaim ^ tha t I s operate d"I ncommerce* * a s ddlno dI n th e Federa l hazardou s meterla b law . includin g hr t

IT S Foreig nAi r

Carriers , Par t 12 5 Operators , an dFar t 9 1 Opetaror? . Group. I i s comprise do f air , canio s an dothe r

alrcraif t t>pentor s wit h finua l opetatir Q revenu e o f > 100,000,00 0 o r

jmore . Grou p I

T l a comprise do

f atrcanie nan dothe r aircraf t operator s tha t

hol dPar t

13 1 ccrtlBcate s o r

hav e 5 0 o r

mor e pilot s o r operat e 2 5 o r

moi ^ almaft . wit hannua l opoalln g revenu e o f les s tha n S10O.00O.0Q0 . Grou p I H I s comprise do f ai r carrien i wx l othe r

aircraf t opeialor s tha t d o ncr c mee t th e crileri afb r

Grou p nwit h(I ) 6 t o 4 0 pilois . o r (2) 6 t a2 4 aircraf t Ci-ou p I V i s comprise dc f al l othe r ai r cirrler ao r

aircraf t opentar s no t mcetlri g th e criteri afo r Croup s I , H o r in . (b ) Auliies c Au f

ty—Th e violato r

I s a business , (xxporation . partnership , Sub S Corporation , sol e piupctetor , aasocjation . o r

an y lyp c o f

commercia l entity . A nIrxifvldua l wh o oOia s a haarta t shipmen t

I nai r transportatio nI n th e cours e o f

his/he r self-owne d bwlnes s faU s Int o thi s category . Include s al l entitie s defbiit dunde r th e HMR' s definitio no f

"person, " (4 9 CF

R I71.fl ) -wlth

k th e exceptio no f

a n Individua l a s define dherein . (c) ^iDine H Bnllt y tha t R^ufarfj r Oflcrs , Aciaepts , o r

Transport s Haxardoua . Material s I n rh e Cours e o f l a Bustnoss.— A irtanufacture r o r dbirlbutD r

o f Hoan>a t fall s int o thi s cat^ory . A bvlgh t

focvtrardcrvraul dals o fal l Int o thi s categoiy . Th e aspec t o f "regularfy " oiSvln g Mver s abusines s enUty^ tha t

offer s Haania t

wit hsom e anudpata d&ei|u«nc y o r purporc r t o d o so . e.g. . acatalogu e compari y tha t oQbi s haxardoi B materia l t o li s customers ' Tweul dfa nfaito thi s category , eve n thoug hli s actua l sal e o r transportatio n o f th e Hazma t

I s infrequerttc r

limited . (< 9 Bvsines M Bnat y Cha t Use» w Handle s Haaria t I n th e Cours e o f

l o Bu^neas — Thi s otegor y encompasse s th e busines s tha t utilize s Hazrua t

I n l b busines s bu t doe s notofl ^ i t

fo r transportado no na regula r basis , a s describe dabove . Fo r «>an>ple . amanufecture r of anon Haarw t produc t tha t use s Haaoa t

i nth e manufacturin g pioces s coul dCal l int o t h b category . I t

mus t b e establishe dtha t



### sso/eso ® 

## SW G VV d 

## stLseetso s xvd GO;L L OLO2/6L/O L

### 10/13/2eilt ) 12:5 3 425227130 7 ANM 7 PAG E 2-1/2 5



### Federa l Register/Vol . 64 . No . 7B/Wednesday , Apri l 2I , 1999/Rule s an dKeguIaUon s 1944 9 th e compan y ordinaril y doe s no t offe r h e Hasnati t

uUllze s for

transportation , duo dth e stilpmen t

I nthi s instanc e represent s x i isolate dIncident . Thi s typ e o f busines s t s h^ dt o ahighe r standar dthandi e busines s entity tha t ha s n o regula

r Invtilvcmemwit h Hazmat . Th e dcaolbe dbusines s entit / receive s th e subjec t

ha^udou s riuleila l ' I ncraru^ortatio nan dttse s It init s business : thus . I t

I s clearl y o nnotic e of th e hazardou s natur e o f

th e materia ] an d th e xegylatary ra]ulremcnls t o whic h ih e Hezmati asub)ec L fp ) Declare dShipment—

A declare d shipmen C fo

r pixpcse s of

Ih b matri x onfy . I s on e tha t

complie s wit hon e o r mor e of f th e communicativ e tequlremeiw s o f

di e HMR , Le. , It

ha s maldn ^ labels, and/c v portiaDy cotrec t Ehlppln g papers . A packag e tha t hn^ shippin g paper s tha t

debat e di e con^cent s a s hanrdou s materia l bu t I s otherwis e no t

marice do r

labde dfall s Int o dil s caKgory . Similarfy . aproperl y mske darM

f tabbe dpadag e tha t

lack s shippin g papa s als o Call s Inti > thi s cat^ory . A cas e fall s int o till s CBn^or y -whci B ther e I s clear

indkatto ntha t

tfi e offeror mad e Bom

e attemp t t D giv e notic e o f th e hazardou s natweo f

th e '^htomcnt . ; ' ( o ForbidJe no r

Exceeds ^ Quantit y Uml b fo r

Fassengt r

AAue A A shipmen t iiali s int o thi s categoi y tftb e quantity o f

Hazinat pe r packag e caceed s tile qinntli y liraltadon s fo r paSKngercanyin g alrciaf

l o r I f th e particular hazBidou! ! materia l i s fbtUdde ninai r transportatio no npassenger alroad . circumven t thos e requirements . For oample , anofieitx wh o place s a property marke dan dlabde dHazmat shipmen t alon g wit hpKvperi

y oomplew dshippin g papers . Int o a n oveipac k marke da s "ptinte dmaterial, " (e ) /qrbfcAfe

no no r Stceed s Quantity ha s committe da nIntenctona i o r Limit s A r A H Airas^ A shipmen t

wil l fal l Int o till s tategot y i f th e quantit y of hazardous : materia l pe r

packag e deceod s th e eJJowiibl e amoun t

fi x bot hpessengi r an dcarg o alrcnf t

o r th e Hazma t

l a absohjtidy ' fbrtvidde ni nai r tnursportatloi L Qh } Haantot— A ''''hazardou s material. " a s define dI n4 9 CF R171.8 . Indwk s an di s IntcnJionceahl e -wit hdi e tor n "daiigerm w gpods . " a s use dI nth e InternadoirarClvl l AvUtlo n Organizatio n(ICAO ) Tedmlca l Instmctlons . ( 0 bdtvidial—A nIndividua l wh o o^r s ashipmen t

o f haeatdou s materia l i nhls/)« r

persona l capadi y withou t airy buslno s purpos e o r

a s per t t i a commentii detMerpris e o nth e par t r> f ih e Individual . • (1 ) tnteadana l o r

DeUierai e VkJation~' A shipmen t

&ll aInt o till s categor y wbei i ther e i s evidenc e dia t th e offeror , arxeptbr , at r

carrier , o r

aircraf t opento r hn dknowledg e ofth e requUement s o f

th e HM Rara l iriUfullj r dicunrvenite do r

attempte dt o RIS KCATEGORIE S IRflu m 2 | deliberat e -vlobtion . I ndd s ^p e o f case , d w Invcstlg^tiii g agen t

shal l consul t wit hFA A lega l counse l an dfollo w agenc y guidanc e for

potentia l crimina l violation s ofth e HMR . 0 4 Undeclare d5hi]oinan>—Thi s i s a ^pmcn t tha t ha s n o Indicatio no f

It s hazardou s nuto-la l content s and/o r n o Indicatio ntha t

th e offerracommunicate dth e hazardou s natur e o f th e shipment' s coixent s mperson s wh o acaxp t o r transpOTL 

### (1 ) Whbl nH^mo t

Quantt y Umitationf—Th e atrxnm t o f hazardou s materia l i s withi nth e i]uanttt y Uniliation s pe r

padog e a s esabUshe dI n th e S 172.10 1 Tabl e {49 CP R172.101 ) fo r di e typ e o f

alrcraif t o nwldc hth e shipmen t

•raveled.-Fo r

example . I f

th e shipmen t

wa s oflbre dfo r

iransptxtailo n o napassengc r

akoalt . th e quantit y o f haeardoi B materia l wa s -withi nth e eobllshe dlimt t

For transpcitatlo nb y passenge r

aircraft . I f

tti e shipeien t

wa s oflae dfo r

transportatio no nacarg o aircraft , th e quantit y limitation s ftN r org o airtaaft

apply . Ortegoi y ."*• ' (Hazimu mWatghi ) Caiegoi y*A * rnatadal s a m malada b O M Mm t ralaasa d h fi e Eonflne s o f a n oliaal l ca n potenllal yhav a a taiasuiipiJ u eflec l ar % a n atr crstf a abffiq rt o csiftiu e saf e llghl , resiMi p k i a cras h o raumisenc ylandbi g eatxln g ti m cdaatt i t » poasonoar e an d Mt^ikmw . a s we t a a peraii m o n tfwgrpund . Baplbdvas : DMslo n 1.1,1.2,1, & Cwrpraaso d Oase s A

H 21.2 £ «« i Subsidiai yRis k S. I an d A l 2. 3 PI H ZVB S APD . Ftaanabt o U9<U s F Q i , II . an d (PiH) . CKvWon 4. 1 FlanwiHbi e SoU s IPO I . & (Maicnes) . DfvMo n 4, 2 BponlaneMAi yCombUsttil D Manrts b P Q I (Fyrophoil ^ DMdo n 4 ^

Dangaiou a VMie n ive i P O L DMA n B. 1 OrilUn b tJqdd e an d Sold s P Q I . n , e.g. , 'ChanAa l Q/cgga n Generakvs" . DMah m & Z OmKd cPereaMea P Q U (Typ e AB , C , e rD) . DMsiw i 5. 1 Potsonoi a UqiAt t IPG I (PIH) . Carp B Alicnl t On| yQuaralflo s e n PaasengD rAlrosf L OonoBlve Maieria l Uqu U P O I nr d (PIH) . Foitaldrifi n Uataital s (Se e 4 9 CP B 173.2 1 & ICAO TtcMci J talnjc«Ons). FbiMddo n Hazmat iisla d i n Danoerou s Good s Tabl a 4 9 CF n 172.101 . CUegor y'V ' [Modem s Weight ) Clas a 1 -... , C)as 9 2 ~~ , c::fcias 3 Clas s 4 Clas s S Ctoa s 9 .. . — CUB S 7 Oaa s B .-.- 1

TT wmalBilal a Idti d i n Catagoi y"B " ar e maleilal s WM ma yno i pos o a n tnmedM o tuaa i t o f wsafet yo f a IDph t tHi t ca n caus a deal h o rIn - (u yh > ponrn a (ka i t o taiDitand ^ release s I n aiiaal l cat* » umaa , an d polenUa l damag e t o eincml t sinidura s ove ra longe rpeiio d o f fm a du e t o mOsooveiB d leiease a o n ehaaf t stnictna l componnnis , ClBs s 1 ^

DMalo n 1M , 1.6 , I.A . A l Compcitbni vGroups . Clas s 3 _P G m FlaninwM a UquMa . ClaBs 4 _ . .. . DMskx i 4. 1 Ftanvnabl e SoOd a P Q It , ill . I DTiiCslo n 4 2 Spontaneoud yCombuadbl e Matarte b P O IR . OMsh n 4, 3 Dflngeiou s Wh«TviTe t P Q 0 , III . 3as a 5 -......., . DMakat i E. 1 OMItki p LkiuM s o rSoKtfs P Q t» . DMaie n 5 2 Ofoant o Paraxide s (Typ e E . F . 6) . dis s e DMsto n 0. 1 Polaonou a UqiM s P G I , I I (t«3IM>IH) . DMsio n 61 2 bilecfog i Siitsianocis .

SS0/t?20i a 

### SN Q VV d StLSCGtSO S XV d GO'.I L 0L02/6L/0 L

### 10/13/281 0 12:5 3 425227100 7 ANM 7 PAG E 25/2 5 

# t 1945 0 Federa l Wapaitr/Vol . 6* , No , 7a/Wednesday . Apri l 21 . 1999/Rule s an d Regulation s RS KCATEGORIES—Continue d



### [Pigures i CiassT " Cles s B RadhMcdM i Matarfais , ytJia wbba l III , ysHo e bba l II , an d whi n labe i L UquM s P Q U . I H Solld a P Q I . II . H . Categor yr v(Vbiknu m Wdghl ) Th e matarfat s Isia d h i Cafegor y"c ra m malertBl s Ifia t jnsti m 9 m leas t anKwi t of iM ct o VwtraAsportaOo n system . CUiss 2 Clas s 9 dasB ? Clas s 9 2. 2 Nonliamniabl a Oas . DMalo n B. 1 PadAi g Grou p li L A l ethe rRA M (ISA , LT D qTY . Inaiiunieflt B an d ArtcM MhceBaneoti a Dangeiou * Oood i (ORM- O an d Connme rOommoOly). , Noi KThi s guidanc e l a no t Manda d t a replaoe tfwaqporience d Judoraen t to' a nn M asen l wh o i s connAxed . base d o n th a miderx s an d fact s o l a cast , tfiai V wfaBuito o f a n ai rcarrier , iMpper , treish i foiwanler , o rpesoang wt o fplo westabllshoi l rc^jlatlon s ha s pose d a ris k t o Issue d i n Wiohtngton . D C o n Apri l 14 . 19^ . JaawF . Gam^ , AdmitOslratPr . W R I>Dc . 3S-998 3 FUci d 4-20-99:9:4 5 «n> l •BAS M COP

E me^is- w SECURITIE S AN D EXCHANG E COMMSSIO M 1 7 CF R Pari s 202 , 240 , 24 2 an d 24 3 L Backgrmm d FO n FURVHE R NFOmiATID M amrACT : Ellaabeft i King . Senio rSpecia l Counsel , a t <Z02 > £142-0140 . ConstaiK e Klgglns . Speda l Counsel , a t (202194Z-DDSS . an d Kevi n Ehrlld xAttorney , a t (20 3 912 - 077B , Dhrlslo n o f Marice t Regiibitlon , SecivlUe s an d Btehang e Commlfision , 45 0 rath Street . N.W.iVashingnin , D.C , 20549-1001 . SUPn.EU f

NTAR Y KOBUA'nM : (flataas * NeL 34^1297 ; fll a No . S7-1»-5a ) RMa235-A)M 1 Aogvlalie n o f AltemaiUv a Tidin g Systems ; Teehnlca l AmenAimn l AeENCT ; Sectmtle s an d Eactwng e Commlnlon . Acnoi cFina l rule ; technica l amendmen t a n d revise d complianc e tlaie . BPMHAirr ; TI E Securitie s an d Exchang e Coimnlsslo n I s mollifyin g tti e coTDpllanc a date s fo rRul e 30I(ti)(3 ) an d meklnE a tcciinlca l char ^ t o Rul e 202.3 . Thes e an d othe rrule s arx l rul e amendment s relat e t o tfi e regulatio n o f alternativ e InidUa g system s an d . esechange s an d wct e publishe d o n Decembe r22 , 199 8 (6 3 F R 70B44} . Th e effectiv e dot e Ib rth e othe rrule s an d amendment s publishe d i n 6 3 F R 7084- I terrain s Apt n Z]l . 1999 . tstcep t fo rth e effectiv e dat e fo rS5242.30l(b)(S)(l)(D ) an d (B ) an d 5 5 242.301(b ) (5)0 ) (p ) an d (E) , whic h remain s Apri l I , 200O . DATBS : Effiectiv a Data : Apri l 21.199 9 Ib r amendmen t t o S 202.3 . Complianc e X>ate ; AltemaUv e tradin g system s miis rcompl ywit h 5242.301(1^( 3 wit h respec t no th e 5 0 jCCUritl B liste d I n SiJiedtd e Ab y Augus t 23.1999 ; Wit h respec t t o th e peciwitie s liste d o n Schedule s Aari d B o ySeptembe r28 . 1999 ; wit h respec t t o th e securitie s liste d o n Schedule s A , B an d C b yApri l 29,200D ; an d wit h respec t t o al l securitie s b yJun e 20 , 20OO . O n Deceihbe rS . 1998 . th e Sectsidc s an d Enho^g e CiMimilsslo n r'Comrnlislon" ) adopte d newnile s an d rid e amendment s t o allo walternativ e tradb ^ qsMn s t o .choos e whetho - t o leslste rK i narioea l secvltie s exdtanges , ortoreglittra s brtdcer-dealosan d compl ywit h additiona l requlrarasni s unde rRegulatio n ATS . dependin g o n thel t 8ctt%>

f ties ui d tradin g vohue. ' Th e effnxlv e <Ial B fb rmoo t o f thB o ne w rule s an d rul e Biaendmem a b Apri l 21 , 1999 . HK ! Ccanmlaslo n state d i n Ifi e adopcta g releas e that , prio rt o Apri l 21 . 1989 . U woul d publis h a lis t it f thos e securitie s witl i respe a t o whic h iltanaatfvi rtradin g ;r^ttm a nni M nmpJ r wid i Rid e 30ia>)(| ) o n Apri l 21.199 9 en d thos e .securitie s wit h respec t t o whic h aUemati-v e tradin g djstem s mus t compl yWit h Rul e 30 1 (b)(3 ) o n Augus t 30,1999 . Ride30I(|b)( ^ require s a n oltematitn : hadin g syste m t o provid e t o a notiona l securitie s eKclong e o r rwtiona l securitie s assoclatioa xfo r Indusio n M th e publi cquolatio n siystei a thi B prfcc i an d size s o f U s bes t price d bi ^

an d sij l orders , tha t at e displaye d itoiaor e tha n on e peisai . i n eac h covere d socurl ^ i n whic h ih e alternativ e tradin g syste m rejvesm B 59 6 o rTBore o f th e Inta l tradb ^ volume. '

• ScaBlllaEnhanc»A£tAelcBav^kL407 W (Oce . t , 190^ . ean t nu t 0>c« . as . iSMi . >ITCni241IJ01Mp).Fariiui>(iaeio r K^iuktlar xA':rS , 1 "OKov d accurt^r " Inalvad a fi X euhaneegbteiil , Nasda q N M MCUflUo . Kr i Nasa« | Smal l Ca p neivUIo ; Dific rdu a O M *n d ~>-*-aRia1dma . SuRuV * HMt-iMIS) . H I L Ddq ro f ib e Complianc e Date s (« - Rnl e 3Ol(b)0 ) On e majo raUerriativ ctrtKlio g syste m ha s liKttcatc d tha t I t wil l b e unabl e tc j complywlt h th e requirement s o f Rul e 30 1 vivf i b ydi e ctflglika l complianc e date s withou t puttin g th e opoatlo n o f l o syste m a t sCTlou a risk o f iidltBe; . Th e operationa l Cdhvef> f a cnajoralternati'v e tradin g syne m coul d Inteifa e vrit h th e narke s a s a-whole . Accordlttgly , th e Comrnisslo n hdlevo t i t necessar yto ad|us t th e complianc e dale s fo rRul e 301^)(3 ) asfoUows : Atigus t 23,1099 : CcmipUanc e vrlt h Rul e 30i(b)(3 ) wit h respec t t o tlic5 0 Nasda q securitie s liste d o n Scfaiedid e A . attatiie d I n di e appendb c Septembe r2B , 1999 : Complianc e -wit h Rul e 301(b)0 9 Co rth e 50 % o f Nasda q securitie s liste d « o Schedule s Aarx l B , attache d I n th e appendix . Apri l 25 , ZOOO

i Complianc e wit h Rul e 30l{b) ^

fb rdi e 759 6 o f Nasda q seoiritle s liste d o n Schedide s A . B , an d C , attache d i n th e ^pendlx . Jun e 21) , 2000 : Complianc e -wit h Rul e 301(b)(3 ) fb ral l Nasda q securides . . Schedul o A . B , an d C wo e create d b yrankin g al l covere d securllia s trade d o n Nasda q byflielr,bniiar y199 9 vdime , an d incliidli| g a n erito l mimbe r o f se<»riUe s fro m eac h dedl e Som e securitie s That-wer e no t Trade d o n Nasda q i n Januar y199 9 ma ycommenc e vadin g o n Nasda q $uhseq[liently . Alternativ e tradbi g system s fna ywai t unti l Jun e 20.200 O t o complywlt h Rul e 30 1 (b)0 ) wid i respec t t o thes e securities . A l l otho-cmnidlanc e date s fo rth e rule s en d rul e amendment s adopte d las t Decembe rleniai n th e same . Th e Commissio n encourage s thos e alternativ e tradin g system s tha t ai e abl e I D conqil ywid i Rul e 301(b)(3 ) o n Ai>r U 21,19SdtDdbsD . CF1l240.llAcl-IWCR:a"l«3D0<i^ . ITCFJ t MraoQIi) . 

### sso/ssoi a SW Q VV d 

### StLSSGtSO S XV d GO-L L OLOS/GL/O L