September 8, 2014 

US Department of Transportation 

Office of Hearings 

Washington DC 

RE: Docket No FAA 2014-316 

5~40 UNiVERSiTY Avr. SouTil, F11i1lb.~Nks, !\1\ 99/09 

RECEIVED 

HEARING DOCKET 

1. We prepared a response for the hearing that was scheduled for 08/03/2013. The hearing was 

never completed as FAA legal did not appear for the hearing. I took a day off from flying for a 

meeting that was canceled late in the day of 08/13/2013 by telephone. We were informed that 

it would be rescheduled but it never was. 

2. We had made a technical error regarding the hiring of Robert Osterhoudt. I was on an extended 

field trip at that time. Mr. Osterhoudt was on a drug plan with another carrier. My office 

manager called Fairbanks Toxicology to send Mr. Osterhoudt for a pre hire test and to add him 

to our roster. Our office manager was informed by Deb Fetters of Fairbanks Toxicology that 

since he was already on a plan that she would add him to our random roster and he would not 

need the pre hire test. 

3. We are a small business with 2 full time and 4 part time employees. 

4. We are a Group IV company. The minimum amount /violation is $500.00. We request the fine 

be reduced. 

5. See enclosed tax returns for the last 3 years and you will see that we cannot afford the $8,200 

that is requested. 

6. Please also see the attached copies of letters explaining the details of our mistake. 

Si.J;leerel~ 

" \ ( _______ J_ <j=\~,_ 

I 

James I Hamilton, Jr. 

Owner/Operator 
Arctic Air's Tax Returns For 2011-2013 

Are Located at the FAA Hearing Docket, 

600 Independence Avenue, SW, 

Washington, DC 20591 

See Order Denying Motion for Decision, dated 9/23/2014. 
·. "'I' 

_('- I I 

May 24. 2012 

'! 

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D2miel R. Roman, Inspector 

FAA Aviation ~3afety-AVS 

Office of Aerospace Medicine 

Druq Abatement Division 

15000 Aviation BLVD, Room 5014 

Lawndale, CA 90261 

Dear Mr Roman: 

Arctic Air Alaska, Inc was in the process of hiring a new mechanic, Robel'! Osterhoudt, whom 

needed to be added to our Company Drug Program. I called Fairbanl<s Toxicology to inquire if it 

was a convenient time to send an employee for a pre-employment drug test on April 1l, 2012 and 

mentioned tl1at he was currently under anotl1er company's (Evert's Air Cargo) Drug Program. I 

was informed Deb Fetters, Office Manager, that a pre-employment test W21S not necessary if he 

was on anot11er· program but he would be added to our Company Roster. 

After discussing the issue with James I Hamilton, Owner·/President, we still felt uncomfortable 

with not conducting a pre-employment test. James Hamilton called again on April ·1s, 2012 to 

double check with Fairbanks Toxicology that we did not need a pre-employment clrug test for 

Robert Osterhoudt. He spoke with Deb Fetters and was reassured that we did not need the preemployment drug test. 

The new hire was added to the Company Roster April 19, 2012 and began working April 23, 

2012. 

Sincerely, 

,'_./ --'\/1''·, __ ; __ ' . 'l. 

Laurie Hege 

Office Manager 

( !J.( 

' 
June 22, 2012 

File Number: 2012WP910268 

Daniel Roman, AAM-850 

Federal Aviation Administration 

Office of Aerospace Medicine 

Drug Abatement Division 

15000 Aviation Blvd., Room 5012 

Lawndale, CA 90261 

Dear Mr. Roman: 

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RECEIVED 

SEP 1 8 2014 

HEARING DOCKET 

I am writing this letter in response to the apparent violations discovered during the inspection of 

Arctic Air Alaska's drug and alcohol testing program. 

1. Arctic Air Alaska was mis-informed on the procedures for pre-employment drug testing. 

We were led to believe that if an employee was currently on another company's drug 

program that we did not need to have a pre-employment drug test done and simply 

needed to add the new employee to our company roster. Enclosed please find copies of 

statements written by Allan Stockbridge, Director of Maintenance and Laurie Hege, Office 

Manager on May 24, 2012 as to the circumstances. We now understand that all new 

hires must have a completed pre-employment drug test with results in and confirmed 

negative before beginning employment. 

2. Arctic Air Alaska has received and has kept semi-annual aggregate statistical 

summaries, which are filed in our records, from Fairbanks Toxicology in which we are 

included in the FAA Consortium's roster. We have spoke with Deb Fetters, Office 

Manager, Fairbanks Toxicology and requested the reports be forwarded to Arctic Air 

Alaska from the lab-Quest Diagnostics in the future. She stated that this was something 

that had never been requested before and agreed to send the report to us from the lab 

rather than send the summary from Fairbanl<s Toxicology. 

We intend to fully comply with the FAA Drug and Alcohol testing programs and will call the Drug 

Abatement Division with any questions or needed assistance in the future. 

Sincerely, 

James I. Hamilton 

President/CEO 

Enclosures 
Letter written by Deb Fetters, Fairbanks Toxicology, 

Dated July 17, 2012, Is Available at the 

FAA Hearing Docket, 

600 Independence Avenue, SW, 

Washington, DC 20591 

As per Judge Goodwin's Instructions 
July 12, 2012 

File Number: 2012WP910268 

Daniel Roman, AAM-850 

Federal Aviation Administration 

Office of Aerospace Medicine 

Drug Abatement Division 

15000 Aviation Blvd., Room 5012 

Lawndale, CA 90261 

Dear Mr. Roman, 

This letter is to confirm that the notes written on the attached copy of a Fax dated April 19, 2012 

were written by me. I documented in a quick note on the fax cover sheet my call on 4/17/12 to 

Deb Fetters, Fairbanks Toxicology. I also documented on another quick note on the same Fax 

cover sheet the next day after James Hamilton (Sandy) called Deb Fetters again. 

Thank you for your assistance with this matter, 

Laurie Hege 

Office Manager 

Attachment 

f-/ ·.· 
Fax Arctic Air Alaska, Inc. 

3540 University Ave. South 

Fairbanks, Alaska 99709 

From: 

Date: 

Pages: 

--~-

To: 

Phone: 

office@arcticairalasi<a .com 

Laurie Hege 

Office Manager 

April 19, 2012 

cover 

Deb Fetters 

456-4825 

Fax: 456-4899 

RE: 2"d Quarter Roster 

2"" Quarter Roster: 

James Hamilton: Pilot 

Taj Shoemaker: Pilot 

Robert Eubank: Pilot 

Allen Stockbridge: A & P Mechanic 

Robert Osterhoudt: A 8, P Mechanic 

Thank You, 

Laurie Hege 

Phone: 907-452-1115 

Fax: 907-452-3140 

' ' 

Contents of this facsimile transmil"l<'lli'ntendecl for lhE) nbovC:-) nc1rnecl rocipi(mt· only. PleAse r::ontncl 

907-452 ·1·115 if this document is roceived in errm. 
Autumn l<illingham, Attorney 

Enforcement Division/AGC-300 

Office of the Chief Counsel 

Federal Aviation Administration 

800 Independence Ave. SW 

Washington DC 20591. 

Attention: Autumn l<illingham, Attorney 

February 11, 2013 

RE: Arctic Air Alaska Inc.; Case 2012WP910268 

Arctic Air Alaska Inc is a basic air carrier with a total of 5 employees. We have 3 pilots and lmechanic [part time] 

that are in drug sensitive positions. The 511 ' employee is our office manager. 

As President and CEO of Arctic Air Alaska Inc; I agree that we were in violation of 14CFR 120.105. I was in the field 

on an extended job during much of this time period. I asked my office manager if Mr. Osterhoudt had received his 

pre hire drug test. She stated that she had called Fairbanks Toxicology to schedule Mr. Osterhoudt for his pre hire 

test. She was told [in error] that since he was already on another company drug program that he didn't need the 

test. She assured me that he was added to our random roster. I was remiss in not requiring Mr. Osterhoudt to 

have the test. 

Mr. Osterhoudt was added to our random drug roster program on April1.9'"- He was still employed as a mechanic 

for another Air Carrier at that time. He began working for us on April 23'"- His position was to work in a helpersupervised training program under the tutelage of our Director of Maintenance who wanted to retire. 

We had every intention of being in compliance. We were misinformed that a pre hire test was not necessary by a 

Medical Office Provider. Since Mr. Osterhoudt was still employed by and on another company's drug program, 

and since we had added him to our company random roster, we thought the bases were covered. It was a mistake 

that was well documented and fully admitted and a mistake that will never be repeated. Again, it was 

unintentional and a mistake. I believe the fine should be minimal if at all. 

I am not in agreement with your conclusion that we were in violation of 40.111 in regards to having a statistical 

summary for the period July 1, 2010 to December 31, 201.0. We had the summary from Fairbanks Toxicology for 

that time period. 

1 arn selecting option 3 as I arn financially unable to pay the civil penalty. Find enclosed rny profit and loss 

statement for 2012. I hope to be able to stay in business. I also am requesting option 5-The opportunity to discuss 

this matter informally with an FAA attorney at the Office of the Chief Counsel in Washington, DC. 

Sih~rely, ( '\ l, ,_, - ~ .... - Jame I. Hamilton CEO/President 
US Department of Transportation 

Office of Hearings 

Washington DC 

RE: Docket No FAA 2014-316 

1. 

We prepared a response for the hearing that was scheduled for 08/03/2013. The hearing was 

never completed as FAA legal did not appear for the hearing. I took a day off from flying for a 

meeting that was canceled late in the day of 08/13/2013 by telephone. We were informed that 

it would be rescheduled but it never was. 

2. We had made a technical error regarding the hiring of Robert Osterhoudt. I was on an extended 

field trip at that time. Mr. Osterhoudt was on a drug plan with another carrier. My office 

manager called Fairbanks Toxicology to send Mr. Osterhoudt for a pre hire test and to add him 

to our roster. Our office manager was informed by Deb Vetters of Fairbanks Toxicology that 

since he was already on a plan that she would add him to our random roster and he would not 

need the pre hire test. 

3. I know that he needed a pre hire test. 

4. We are a small business with 2 full time and 4 part time employees. 

5. We are a Group IV company. The minimum amount /violation is $500.00. 

6. See enclosed tax returns for the last 3 years and you will see that we cannot afford the $8,200 

that is requested. 

7. 
(J) 

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Click-N-Ship® Label Record 

Signature Confirmation'" : 

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Trans.#: 309414453 

Print Date: 09/08(2014 

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From: ARCTIC AIR ALASKA 

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