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UNITED STATES DEPARTMENT OF TRANSPORTATION 

OFFICE OF HEARE^GS 

WASHINGTON, D.C. 

•.,. 2 2 2c:o 

IN TIIE MATTER OF 

FEDERAL EXPRESS CORPORATION 

FAA DOCKET NO. CP09ALOOO5 

(Civil Penalty Action) 

DMS NO. FAA-2009-0099 

MOTION TO TERMINATE PROCEEDINGS 

On June 16, 2010, the parties agreed to settle this case. A copy of the settlement 

agreement and Order Assessing Civil Penalty are altached. In accordance with the agreement, 

the Complainant moves for an order dismissing the request for a hearing and terminating the 

proceedings in this matter. 

Respectfully submitted this 16"' day of June 2010. 

HOWARD L. MARTIN, JR. 

Regional Counsel 

— . .-^ 1 .••• ^ ' 

ill. Brown 

Senior Attorney 
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UNITED STATES DEPARTMENT OF TRANSPORTATION 

OFFICE OF HEARINGS 

WASHINGTON, D.C 

IN THE MATTER OF 

FEDERAL EXPRESS CORPORATION 

FAA DOCKET NO, CP09AL0005 

(Civil Penalty Action) 

DMS NO. FAA-2009-0099 

SETTLEMENT AGREEMENT 

The parties in the above-styled action hereby agree to settle this matter under the 

following terms: 

1, The Complainant will issue an Order Assessing Civil Penalty. This Order will include 

findings of the facts and violations alleged in the complaint, and will assess a civil penalty in the 

amount of $225,000. 

2. The filing of this Settlement Agreement constitutes the withdrawal with prejudice of 

Respondent's request for a hearing in this case, and Respondent understands a copy of this 

agreement will be submitied to the assigned law judge with a motion to terminate proceedings. 

3. Each party shall bear his own costs and attorneys fees, and the Respondent will not 

apply for an award of such under the Equal Access to Justice Act, 5 U.S.C, § 504, 

Dated this 16"" day of .lune 2010. 

For the Complainant; For the Respondent: 

HOWARD L. MARTIN, JR 

Regional Counsel 

By: 

FEDERAL EXPRESS CORPORATION 

Respondent 

By: 

Olejui H. Brown 

Senior Attorney 

CMh^ 

Senior Attomejy 
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O 

U. S. Dcpunmcnt Alaskan Region 222 W. 7th Avenue #14 

ofTrQrisporlaiitm Office of ilie Regional Coun.scl Anchorage, Alaska 99513-7587 

Federal Aviation PH; (907)271-527! 

Administration FAX: (907)271-2800 

Case No. 2007AL700049 

JUN 1 6 2010 

CERTIFIED MAIL- RETURN RECEIPT REQUESTED 

Courtney E. Felts, Esq. 

Staff Attorney 

Legal Department 

Building B, 3'"* Floor 

3620 Hacks Cross Road 

Memphis, TN 38125 

ORDER ASSESSING CIVIL PENALTY 

On May 27, 2008, FedEx Express Corporation (FedEx) was advised through a Notice of 

Proposed Civil Penalty that the FAA proposed to assess a civil penalty in the amount of 

$300,000. On May 4, 2009, FedEx was advised through a Final Notice of Proposed Civil 

Penalty that the FAA would assess a civil penalty in the amount of $300,000 if FedEx did not 

request a hearing. On May 13, 2009, FedEx requested a hearing- On June 16, 2010, the parties 

agreed to settle this matter under the terms contained herein. 

After considering all the evidence in this matter, including the information presented during the 

informal conference, it has been determined that: 

1. On or about September 5, 2007, FedEx knowingly accepted from Redox Tech, LLC, a nonbulk shipment containing hazardous material for transportation by air firom Attleboro, 

Massachusetts, to Anchorage, Alaska, on FedEx US Airbill Tracking Number 8592 0732 

3518. 

2. The above shipment consisted of a used hydraulic pump with an internal combustion engine 

and a lead/acid storage battery, and an aerosol can of Thrust Quick Starting Fluid that was 

secured with duct tape to the hose cage on the top of the pump. 

3. At the time FedEx accepted the above shipment for transportation, the pump was strapped to 

a pallet and not covered in any manner. ITius, the fact that the shipment consisted of a used 

piece of machinery with an internal combustion engine and lead/acid storage battery and 

included an aerosol can of starter fluid were readily apparent. 
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13. FedEx accepted and transported by air the above-described hazardous materials when the 

shipping papers did not include an emergency response telephone number as prescribed in 

Subpart G of Part 172 of the HMR. 

14. FedEx accepted and transported by air the above-described hazardous material when the 

shipping papers did not include a statement indicating that the shipment is within the 

limitations prescribed for cither passenger and cargo aircraft or cargo aircraft only. 

15. FedEx accepted and transported by air the above-described hazardous materials when the 

shipper had not certified that each hazardous material was in accordance with the HMR by 

printing the certification set forth in § 172.204(a) or § 172.204(c)(1) of the HMR on the 

shipping papers. 

16. FedEx accepted and transported by air the above-described hazardous materials when the 

shipper had not provided two (2) copies of the required shipper's certification, 

17. FedEx accepted and transported by air the above-described shipment when the shipper had 

not included in the certification required by § 172.204 of the HMR the following statement: 

"I declare that all of the applicable air transportation requirements have been met." 

18. FedEx accepted and transported by air the above-described hazardous materials when the 

shipment was not marked or labeled in any manner that would indicate the hazardous nature 

of its contents. 

19. FedEx accepted and transported by air the above-described shipment when the shipment 

was not marked with the proper shipping name and the assigned identification number of 

each hazardous material contained in it, and the required markings in English were not 

printed on or affixed to the surface of the shipment. 

20. FedEx accepted and transported by air the above-described shipment when no "Flanunable 

Gas," "Flammable hquid," "Corrosive," "Class 9," or ''Cargo Aircraft Only" labels were 

affixed to the surface of the shipment. 

21. FedEx accepted and transported by air the above-described shipment when the emergency 

response information specified in subpart G of part 172 of the HMR, including the 

emergency response telephone number, was not immediately available for use at all limes 

the hazardous material was present, 

22. FedEx accepted and transported by air the above-described shipment when the fuel tank, 

engine components, and fuel lines had not been completely drained and securely closed to 

prevent leakage of fuel; the battery was not protected against short circuits; and the 

container of engine starting fluid was not packaged in a strong, tight outer packaging. 
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23. Prior to the flight referenced in paragraph 4, FedEx did not provide a notification to the pilot 

in command of that flight the information specified in § 175.33(a) of the HMR regarding the 

above shipment. 

24. The shipping papers required by § 175.30(a)(2) of the HMR regarding the above shipment 

did not accompany the above shipment during the flight referenced in paragraph 4. 

25. FedEx accepted for transportation and transported the above shipment aboard an aircraft 

without ensuring that the hazardous material was authorized and within the quantity 

limitations specified for carriage aboard aircraft according to § 172.101 of the HMR or as 

otherwise specifically provided by the HMR. 

26. FedEx accepted for transportation and transported the above shipment aboard an aircraft 

without ensuring that the hazardous material was described and certified on a shipping paper 

prepared in duplicate in accordance with part 172 of the HMR or as authorized by subpart C 

ofpart 171oftheHMR. 

27. FedEx accepted for transportation and transported the above shipment aboard an aircraft 

without ensuring that the hazardous material was marked and labeled in accordance with 

subparts D and E ofpart 172 of the HMR or as authorized in § 171.22 of the HMR. 

28. FedEx accepted for tran.<;portation and transported the above shipment aboard an aircraft 

without ensuring that the hazardous material was labeled with a "Cargo Aircraft Only" 

label. 

Based on the foregoing facts and circumstances, FedEx violated the following Department of 

Transportation Hazardous Materials Regulations: 

(a) Section 171.2(e) in that FedEx accepted hazardous material for transportation in 

commerce within the United States when each material was not properly classed, 

described, packaged, marked, labeled, and in condition for shipment as required or 

authorized by applicable requirements of the HMR, or an exemption, special permit, 

approval, or registration issued under the HMR or Subchapter A of Chapter 1 of Title 

49, Code of Federal Regulations. 

(b) Section \ 71.2(f) in that FedEx transported hazardous material in commerce within the 

United States when the hazardous material was not transported in accordance with 

applicable requirements of the HMR, or an exemption, special permit, approval, or 

registration i.ssued under the HMR or Subchapter A of Chapter 1 of Title 49, Code of 

Federal Regulations. 

(c) Section 172.400(a) in that FedEx transported a non-bulk package containing hazardous 

material when (he package wa.s not properly labeled as specified in § 172.101 and 

subpart E ofpart 172 of the HMR. 
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(d) Section 172.600(c) in that FedEx accepted for transportation and transported hazardous 

material when the emergency response information required by subpart G ofpart 172 of 

the HMR, including the emergency response telephone number, was not immediately 

available for use at all times the hazardous material was pre.sent. 

(c) Section 175.3 in that FejlEx accepted for transportation and transported hazardous 

material aboard an aircraft when the hazardous material was not prepared for shipment 

in accordance with the HMR. 

(f) Section 175.33(a) in that FedEx carried hazardous material subject to the HMR in an 

aircraft when a copy of the shipping paper required by § 175.30(a)(2) of the HMR did 

not accompany the shipment, and FedEx had not provided the pilot in command with 

written information that included the information specified in this section regtirding that 

hazardous material. 

THEREFORE, IT IS ORDERED under 49 U.S.C. § 5123 that FedEx be, and hereby is, assessed 

a civil penalty in the amount of $225,000.00. 

FedEx is hereby ordered to pay, immediately, the assessed amount by mailing or delivering a 

check or money order in the amount of $225,000.00, payable to the Federal Aviation 

Administration, FAA Accounts Receivable Branch, P.O. Box 25770, Oklahoma City, OK 

73125, In addition, the civil penalty may be paid with a credit card over the Internet. To pay 

electronically, visit the web site at https://www.pav.eQv/pavg0v/fQrm5/fbrmIn.stance.html Enter 

"FAL-FINEI" in the block for "Search Public Forms," and click on "Go," Then select "FAA 

Civil Penalty Payments—FAA Alaskan Region," and follow directions. If FedEx pays 

electronically, please notify the undersigned that such a payment has been made. 

The amount of civil penalty assessed in this Order constitutes a debt owed to the United States. 

FedEx has now exhausted its right to seek review of the validity or amoimt of this debt. If this 

debt is not paid in full within 30 days of your receipt of this letter, the debt is considered 

delinquent. For delinquent debts, federal regulation (49 C.F.R § 89.23) requires us to charge 

interest, from the date of this Order, at a fixed annual rate of 1%, along with an administrative 

charge of $12.00 per month, representing our costs of administrative collection. Furthermore, if 

the full amount assessed is not paid in full within 120 days of your receipt of this letter, we are 

required to assess an additional penalty at an annual rate of 6%, accruing from the dale of 

delinquency. Delinquent debts may be reported to consumer reporting agencies or commercial 

credit bureaus, which could adversely affect FedEx's credit rating. Nonpayment of this debt may 

ultimately result in a referral to a collection agency, the Internal Revenue Service, or to the 

United States Department of Justice for enforced collection. 

HOWARD L. MARTIN, JR 

Regional Counsel 

By: 

Glenn H. Brown 

Senior Attorney 

d^-.^^ ^ 
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CERTIFICATE OF SERVICE 

Re: Federal Express Corporation 

FAA Docket No. CP09AL0005 

I hereby certify that on this date I have served a copy of the Complainant's Motion to Terminate 

Proceedings by postage-prepaid, certified mail, return receipt requested to the following: 

The Honorable Richard C. Goodwin 

Administrative Law Judge 

Office of Hearings, M-20 

U.S. Department of Tran-Sportation 

1200 New Jersey Avenue, S.E. 

East Building Ground Floor 

Room El 2-320 

Washington, DC 20590 

Courtney E. Felts, Staff Attorney II 

Federal Express Corporation 

Regulatory Affairs, Legal Department 

3620 Hacks Cross Road 

Building B, 3"^ Floor 

Memphis, TN 38125 

Mr. Lawrence W. Bierlein, Esq. 

1101 30* Street, N.W., Suite 500 

Washington, DC 20007 

I further certify that on this date I have served the original and two copies of the Complainant's 

Motion to Terminate Proceedings by postage-prepaid, certified mail, return receipt requested, 

addressed as follows: 

Federal Aviation Administration 

800 Independence Avenue, SW. 

Washington, DC 20591 

Attention: Hearing Docket Clerk, AGC-430 

Wilbur Wright Building—Suite 2W1000 

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

Federal Aviation Administrationy J ' 

Office of Regional Counsel ^ 

222 West 7th Avenue, Box 14, AAL-7 

Anchorage, Alaska 99513-7587