08/29/201 0 16:3 5 FA X 202493514 2 FA A + DMS 0001/00 7

UNITE D STATE S DEPARTMEN T O F TRANSPORTATIO N

OFFIC E O F HEARE^G S WASHINGTON , D.C .



### •.,. 2 2 

### 2c: o I N TII E MATTE RO F FEDERA L EXPRES S CORPORATIO N FA A DOCKE T NO . CP09ALOOO 5 (Civi l Penalt

y Action ) DM S NO . FAA-2009-009 9 MOTIO N T O TERMINAT E PROCEEDING S On Jun e 16 , 2010 , th e partie s agree dt o settl e thi s case . A cop y o f th e settlemen t agreemen t an dOrde r

Assessin g Civi l Penalt

y ar e altached . I n accordanc e wit h th e agreement , th e Complainan t

move s for

a n orde r dismissin g th e reques t

fo r ahearin g an dterminatin g th e proceeding s i n thi s matter . Respectfull y submitte dthi s 16" ' da y o f Jun e 2010 . HOWAR D L . MARTIN , JR . Regional Counse l — . .-^ 1 .••• ^ '

ill . Brow n Senio r Attorne yOG/29/201 0 1G:3 5 FA X 202493514 2 FA A • > DM S @l002/00 7

UNITE D STATE S DEPARTMEN T O F TRANSPORTATIO N

OFFIC E O F HEARING S WASHINGTON , D. C I N TH E MATTE RO F FEDERA L EXPRES S CORPORATIO N FA A DOCKE T NO , CP09AL000 5 (Civi l Penalt y Action ) DM S NO . FAA-2009-009 9 SETTLEMEN T AGREEMEN T Th e partie s i n th e above-style dactio n hereb y agre e to settl e thi s matte r unde r th e followin g terms : 1 , Th e Complainan t

wil l issu e a n Orde r

Assessin g Civi l Penalty . Thi s Orde r wil l includ e findings o f

th e fact s an dviolation s allege di n th e complaint , an dwil l asses s acivi l penalt y i n th e amoun t o f $225,000 . 2 . Th e filin g o f

thi s Settlemen t

Agreemen t

constitute s th e withdrawa l wit h prejudic e o f Respondent' s reques t

fo r ahearin g i n thi s case , an dResponden t understand s acop y o f

thi s agreemen t

wil l b e submitie dt o th e assigne dla w judg e wit h amotio n t o terminat e proceedings . 3 . Eac h part y shal l bea r

hi s ow n cost s an dattorney s fees , an dth e Responden t wil l no t appl y fo r a n awar do f

suc h unde r

th e Equa l Acces s t o Justic e Act , 5 U.S.C , § 504 , Date dthi s 16" " da y o f

.lun e 2010 . Fo r th e Complainant ; Fo r th e Respondent : HOWAR D L . MARTIN , J R Regiona l Counse l By : FEDERA L EXPRES S CORPORATIO N Responden t By : Oleju i H . Brow n Senio r Attorne y 

# CMh ^ Senio r Attomej yOG/29/201 0 1G:3 G FA X 202493514 2 FA A + DM S 0003/00 7 

# O U . S . Dcpunmcn t

Alaska n Regio n 22 2 W . 7t h Avenu e #1 4 ofTrQrisporlaiit

mOffic e o f ili e Regiona

l Coun.scl Anchorage , Alask a99513-758 7 Federa l Aviatio n PH ; (907)271-527 ! Administratio n FAX : (907)271-280 0 Cas e No . 2007AL70004 9 JU N 1 6 201 0 CERTIFIE D MAIL

- RETURN RECEIP T REQUESTE D

Courtne y E . Felts , Esq . Staf f Attorne y Legal Departmen t Buildin g B , 3'" * Floo r 362 0 Hack s Cros s Roa

d Memphis , TN 3812 5 ORDE RASSESSIN G CIVIL PENALT Y O n May 27 , 2008 , FedE x Expres s Corporatio n (FedEx ) wa s advise dthroug h aNotic e o f Propose dCivi l Penalt

y tha t th e FAA propose dt

o asses s acivi l penalty i n th e amoun t o f $300,000 . O n Ma

y 4 , 2009 , FedE x wa s advise dthroug h aFinal Notic e o f Propose dCivi l Penalt y tha t th e FAA woul dasses s acivi l penalty in th e amoun t o f $300,00 0 i f

FedE x di dno t reques t ahearing . O n Ma

y 13 , 2009 , FedEx requeste dahearing

- O n Jun e 16 , 2010 , th e partie s agree dt o settl e thi s matte r under th e term s containe dherein . Afte r considerin g all th e evidenc e in thi s matter , includin g th e informatio n presente ddurin g th e informa l conference , i t

ha s bee n determine dthat : 1 . O n o r abou t September

5 , 2007 , FedE x knowingl y accepte dfromRedo x Tech , LLC , anon bul k shipmen t containin g hazardou s material for transportatio n b y ai r

firomAttleboro , Massachusetts , t o Anchorage , Alaska , on FedE x U S Airbil l Trackin g Numbe r 859 2 073 2 3518 . 2 . Th e abov e shipmen t

consiste do f

ause dhydrauli c pum

p wit h a n interna l combustio n engin e an dalead/aci dstorag e battery , an da n aeroso l ca

n o f Thrus t Quic k Startin g Flui dthat

wa s secure dwit

h duc t tap e to th e hos e cag e o n th e to p o f th e pump . 3 . At th e tim e FedE x accepte dth e abov e shipmen t fo r transportation , th e pump wa s strappe dt o apalle t an dno t covere di n an y manner . ITius , the fact tha t th e shipmen t

consiste do f

ause d piec e o f machiner y wit h a n internal combustio n engin e andlead/aci dstorag e battery and include da

n aeroso l can o f

starte r flui dwer e readil y apparent .OG/29/201 0 18:3 G FAX 202493514 2 FA A * DMS 1004/00 7

13 . FedEx accepte dan dtransporte db y air th e above-describe dhazardou s material s whe n th e shippin g paper s di dno t

includ e a n emergenc y respons e telephon e numbe r a s prescribe din Subpar t G o f Par t 17 2 o f th e HMR . 14 . FedEx accepte dan dtransporte db y air th e above-describe dhazardou s material whe n th e shippin g paper s di dno t

includ e astatement

indicatin g tha

t th e shipmen t

i s withi n th e limitation s prescribe dfo

r cithe r passenge r

an dcarg o aircraf

t o r carg o aircraf

t only . 15 . FedEx accepte dan dtransporte dby air th e above-describe dhazardou s material s whe n th e shipper hadno t certifie dtha t

eac h hazardou s material wa s i n accordanc e with th e HMRb y printin g th e certificatio n se t fort h in § 172.204(a ) or

§ 172.204(c)(1 ) o f

th e HM Ron th e shippin g papers . 16 . FedEx accepte dan dtransporte db y ai r th e above-describe dhazardou s material s whe n th e shipper hadno t provide dtw o (2 ) copie s o f th e require dshipper' s certification , 17 . FedEx accepte dan dtransporte db y ai r th e above-describe dshipmen t whe n th e shippe r

had no t include din th e certificatio n require dby § 172.204 o f th e HM Rth e followin g statement : " I declar e tha

t al l o f th e applicabl e air

transportatio n requirement s hav e bee n met. " 18 . FedE x accepte dan dtransporte db y air th e above-describe dhazardou s material s when th e shipmen t wa s no t marke dor

labele di n any manner

tha t woul dindicat e th e hazardou s natur e of it s contents . 19 . FedEx accepte dan dtransporte db y air th e above-describe dshipmen t whe n th e shipmen t wa s no t marke dwit

h th e proper

shippin g name an dth e assigne didentificatio n numbe r o f eac h hazardou s materia l containe di n it , an dth e require dmarking s i n Englis h wer e no t printe do n o r

affixe dt o th e surfac e o f

th e shipment . 20 . FedE x accepte dan dtransporte dby ai r th e above-describe dshipmen t whe n n o "Flanunabl e Gas, " "Flammabl e hquid, " "Corrosive, " "Clas s 9, " o r ''Carg o Aircraf

t Only " label s wer e affixedt o th e surfac e o f

th e shipment . 21 . FedEx accepte dan dtransporte db y air th e above-describe dshipmen t whe n th e emergenc y respons e informatio n specifie di n subpar t G o f par t 17 2 o f th e HMR , includin g th e emergenc y respons e telephon e number , wa s no t immediatel y availabl e for us e a t al l lime s th e hazardou s materia l wa s present , 22 . FedE x accepte dan dtransporte db y air th e above-describe dshipmen t whe n th e fuel tank , engin e components , an dfue l line s ha dno t bee n completel y draine dan dsecurel y close dto preven t leakag e o f

fuel ; th e batter

y wa s no t protecte dagains t

shor t circuits ; an dth e containe r o f engin e startin g flui dwa s no t package di

n astrong , tigh t

oute r packaging .06/29/201 0 1G:3 6 FA X 202493514 2 FA A * DM S 21005/00 7

23 . Prio r t o th e flight

reference di n paragrap h 4 , FedE x di dno t provid e anotificatio n t o th e pilo t i n comman do f

tha t fligh t th e informatio n specifie di n § 175.33(a) o f th e HM Rregardin g th e abov e shipment . 24 . The shippin g paper s require dby § 175.30(a)(2 ) o f th e HM Rregardin g th e abov e shipmen t di dno t accompan y th e abov e shipmen t durin g th e flight

reference di n paragrap h 4 . 25 . FedE x accepte dfo

r transportatio n an dtransporte dth e abov e shipmen t aboar dan aircraf

t without ensurin g tha

t th e hazardou s materia

l wa s authorize dan dwithi n th e quantit y limitation s specifie dfor

carriag e aboar daircraf

t accordin g t o § 172.10 1 o f th e HM Ro r

a s otherwis e specificall y provide db y th e HMR . 26 . FedEx accepte dfo

r transportatio n an dtransporte dth e abov e shipmen t aboar da n aircraf t withou t ensurin g that

th e hazardou s material wa s describe dandcertifie do n ashippin g paper prepare di n duplicat e i n accordanc e wit h part 17 2 o f th e HM Ro r

a s authorize db

y subpar t C ofpart 171oftheHMR . 27 . FedE x accepte dfor

transportatio n andtransporte dth e abov e shipmen t aboar dan aircraf

t withou t ensurin g that

th e hazardou s material wa s marke dan dlabele din accordanc e wit h subpart s D an dE ofpar t

17 2 o f th e HMRo r

a s authorize di n § 171.2 2 o f th e HMR . 28 . FedEx accepte dfo

r tran.<;portatio

n an dtransporte dth e abov e shipmen t aboar da n aircraf

t withou t ensurin g tha t

th e hazardou s material wa s labele dwit h a"Carg o Aircraf

t Only " label . Base do n th e foregoin g fact s andcircumstances , FedE x violate dth e followin g Departmen t o f Transportatio n Hazardou s Material s Regulations : (a) Sectio n 171.2(e ) i

n tha t FedE x accepte dhazardou s material fo r transportatio n i

n commerc e withi n th e Unite dState s whe n eac h material wa s no t properl y classed , described , packaged , marked , labeled , an di n conditio n fo r shipmen t a s require do

r authorize db y applicabl e requirement s o f th e HMR , or

a n exemption , specia l permit , approval , o r

registratio n issue dunder

th e HM Ro r

Subchapte r

A o f Chapte r 1 o f Titl e 49 , Cod e o f

Federa l Regulations . (b ) Sectio n \71.2(f

) i n tha t FedE x transporte dhazardou s material in commerc e withi n th e Unite dState s whe n th e hazardou s material wa s no t transporte din accordanc e wit h applicabl e requirement s o f th e HMR , o r

a n exemption , special permit , approval , or registratio n i.ssuedunde r

th e HMRor

Subchapter

A o f Chapte r 1 o f Titl e 49 , Cod e o f Federal Regulations . (c ) Sectio n 172.400(a ) i n tha t FedE x transporte danon-bul k packag e containin g hazardou s material whe n (he packag e wa. s no t properl y labele da s specifie din § 172.10 1 an d subpar t E ofpar t 17 2 o f th e HMR .06/29/201 0 16:3 G FA X 202493514 2 FA A -* • QM S 12100G/00 7

(d) Sectio n 172.600(c ) in tha t FedE x accepte dfo

r transportatio n an dtransporte dhazardou s material whe n th e emergenc y respons e informatio n require dby subpart G ofpar t 17 2 o f th e HMR , includin g th e emergenc y respons e telephon e number , wa s no t immediatel y availabl e for

us e a t al l time s th e hazardou s material wa s pre.sent . (c ) Sectio n 175. 3 i n that

FejlEx accepte dfo

r transportatio n an dtransporte dhazardou s materia l aboar dan aircraf

t whe n th e hazardou s materia l wa s no t prepare dfo

r shipmen t i n accordanc e wit

h th e HMR . (f ) Sectio n 175.33(a ) in that FedE x carrie dhazardou s material subjec t to th e HM Ri n a

n aircraf t whe n acop y o f

th e shippin g pape r

require dby § 175.30(a)(2 ) o f th e HMRdi d no t accompan y th e shipment , an dFedE x hadno t provide dth e pilo t

i n comman dwit

h writte n informatio n tha t

include dth e informatio n specifie di n thi s sectio n regtirdin g tha t hazardou s material . THEREFORE , I T I S ORDERE D under 4 9 U.S.C . § 512 3 that

FedE x be , an dhereb y is , assesse d acivi l penalt

y i n th e amoun t

o f $225,000.00 . FedE x i s hereb y ordere dt o pay , immediately , th e assesse damoun t b y mailin g o r

deliverin g a chec k or mone y orde r

i n th e amoun t

o f $225,000.00 , payabl e t

o th e Federal Aviatio n Administration , FA A Account s Receivabl e Branch , P.O . Bo x 25770 , Oklahom aCity , O K 73125 , I n addition , th e civi l penalty ma y b e pai dwit

h acredi t cardove r th e Internet . T o pa

y electronically , visi t

th e web sit e a

t https://www.pav.eQv/pavg0v/fQrm5/fbrmIn.stance.htm l Enter "FAL-FINEI " i n th e bloc k for "Searc h Publi c Forms, " an dclic k o n "Go, " The n selec t

"FAA Civi l Penalt

y Payments—FA A Alaskan Region, " an dfollo w directions . I f FedE x pay s electronically , pleas e notif y th e undersigne dtha

t suc h apaymen t

ha s bee n made . Th e amoun t

o f civi l penalty assesse di

n thi s Orde r

constitute s adeb t

owe dt o th e Unite dStates . FedE x ha s no w exhauste dit s right t o seek revie w o f th e validity o r

amoim t o f thi s debt . If

thi s deb t i s no t pai din ful

l withi n 3 0 day s o f

you r receip t of thi s letter , th e deb t

i s considere d delinquent . Fo r

delinquen t

debts , federa

l regulatio n (4 9 C.F. R§ 89.23 ) require s u s t o charg e interest , fromth e dat e o f

thi s Order , a

t afixedannual rat e o f

1% , alon g with a

n administrativ e charg e o f $12.0 0 pe r

month , representin g our

cost s o f administrativ e collection . Furthermore , i f th e ful l amount assesse di s no t

pai di n ful

l withi n 12

0 day s o f your receip t o f thi s letter , w e are require dt o asses s a

n additiona l penalt

y at a n annual rat e o f

6% , accruin g fromth e dal e o f delinquency . Delinquen t

debt s ma y b e reporte dt o consume r reportin g agencie s or

commercial credi t bureaus , whic h coul dadversel y affec t FedEx' s credi t

rating . Nonpaymen t

o f thi s deb t ma y ultimatel y resul t

i n areferral t o acollectio n agency , th e Internal Revenu e Service , o r t o th e Unite dState s Departmen t o f Justic e for

enforce dcollection . HOWAR D L . MARTIN , J R Regional Counse l By : Glen n H . Brow n Senio r Attorne y 

### d^-.^^ ^06/29/201 0 1G:3 G FA X 202493514 2 FA A - DM S 0007/00 7

CERTIFICAT E O F SERVIC E Re : Federal Expres s Corporatio n FAA Docke t

No . CP09AL000 5 I hereb y certif

y that o n thi s dat e I hav e serve dacop y o f th e Complainant' s Motio n to Terminat e Proceeding s b y postage-prepaid , certifie dmail , return receip t requeste dt o th e following : Th e Honorabl e Richar dC . Goodwi n Administrativ e La w Judg e Offic e o f Hearings , M-2 0 U.S . Departmen t

o f Tran-Sportation 1200 Ne w Jerse y Avenue , S.E . Eas t Buildin g Groun dFloo r Roo mE l 2-32 0 Washington , D C 2059 0 Courtne y E . Felts , Staf

f Attorne y II Federal Expres s Corporatio n Regulator y Affairs , Legal Departmen t 362 0 Hack s Cros s Roa d Buildin g B , 3"^ Floo r Memphis , T

N 3812 5 Mr . Lawrenc e W . Bierlein , Esq . 110 1 30 * Street , N.W. , Suite 50 0 Washington , D C 2000 7 I furthe r certif y that o n thi s dat e I hav e serve dth e original an dtw o copie s o f th e Complainant' s Motio n t o Terminat e Proceeding s b y postage-prepaid , certifie dmail , retur n receip t requested , addresse da s follows : Federa l Aviatio n Administratio n 80 0 Independenc e Avenue , SW . Washington , D C 2059 1 Attention : Hearin g Docke t Clerk , AGC-43 0 Wilbu r Wrigh t Building—Suit e 2W100 0 

### DATED : C^,^ . / 4 ^O/ O

Federal Aviatio n Administration y J ' Offic e o f Regiona l Counse l ^ 22 2 Wes t 7t h Avenue , Bo x 14 , AAL- 7 Anchorage , Alask a99513-758 7