OG/24/201 0 08:4 4 FA X 202493514 2 FA A • > DM S @1001/02 8

UNITE D STATE S DEPARTMEN T O FTRANSPORTATIO N FEDERA L AVIATIO N ADMINISTRATIO N

WASHINGTON , D C 11 1 th e Mfttte r

of ; MOLE-MASTE RSERVICE S CORPORATIO N F A AOrde r

No . 2010-1 1 DocketNo.CP08SO00] 2 FDM S No

- FAA-2008-0691 ' Served ; Jun e 16,201 0 DECISIO N AN D ORDER S Responden t

Mole-Maste r

Service s Corporatio n ("Mole-Master" ) ha s appeale dth e wriiie n initia l decisio n o f Administrativ e Law Judg e ("AU" ) Isaa c D . Bcnki n assessin g a civi l penall y o f

$25,00 0 agains i Molc-Masie r for anumbe r

o f violations ^ o f

th e Departmen t

o f Transportatio n ("DOT" ) Hazardou s Material s Rci^ulation s ("HMR'' ) (4 9 CF.R , Part s 17 1 - 180 ) resultin g I'ro mahidde n shipmen t

o f aflammable material.' * O n appeal , Mole-Maste r

argue s tha t

tli e $25,00 0 civi l penall y i s excessive , claimin g tha t

som e mitigatio n woul db e appropriat e du e t o correctiv e actio n take n by Mole-Master . Fo r

th e reason s discusse dbelow , th e civi l penalt y assesse db y th e AL J wa s appropriat e an dwil l no t

b e disturbe di n thi s decision .

' Maccrial s tile di

n th e F A A Hearing Docke

t (excep t fo r material s tile di

n securit y cases ) ar c availabl e fo

r viewing a t http://yvww.riigulaihns.gov . ^ Th e Administrator' s civi l penalt y decisions , along wit

hindexe s of

the decisions , the rule s o

f practice , andothe

r information , ar

e availabl e o

n the Interne

t a t th e following nddrcsis ; htip://Jaa.goy/abouiJo)f\c e org/headqvariers_offices/cigc/pol_adjud)catUm/AGC400/Civil_Piinalty . Ir addition , ThomiiOi

i ReutcrsAVcst

Publishing publishe s Federa l Aviation Decisions . Finally , th e decision s ar

e availabl e throughLEXIS (TRANS librajy ) iin dWe-slLa w (FTRAN-lrA

A database;) . Fo r additiona l information , sec th

e We b site . ^ Th e regulation s allegedly violatedca n b e foun di n th e Appendi x t

o thi s decision . ^ A copy ol'th e A

l J'. s orde r i s attached .OG/24/201 0 08:4 4 FA X 202493514 2 FA A + DM S @l002/02 £

I , Backgroun d O n Jun e 20 , 2008 , th e F

A A tile dacomplain t

allegin g tha t

Mole-Maste r

violate d th e HM Rwhe n i t

offere dt o UP S abo x containin g hazardou s material s fo r shipmen t

b y ai r o n o r abou t Februar y 13 , 2007 . Th e complain t sough t acivi l penall y o f

$30,000 . Th e AL J hel dahearin g o n Januar y 29 , 2009 , an dissue dhi s writte n initia l decisio n o n Februar y 10 , 2009 , findin g tha t Mole-Maste r

committe dth e allege dviolations , bu l iha t th e propose dcivi l penalt y o f $30,00 0 wa s to o high . Du e t o Mole-Master' s investTiient i n belte r ha7.ardou s material s trainin g for it s headquarter s shop , management , an dclerica l employees , th e ALJ assesse dacivi l penalt y o f $25,000 . II . Fact s Mole-Maste r

i s i n tli e busines s o f

cleanin g an drepairin g silos , bins , an dothe r storag e facilities . (Initia l Decisio n at 1. ) O n Februar y 13 , 2007 , Mole-Maste r shippe d vi aUP S acardboar dbo x containin g ahazardou s materia l - specifically , nin e 11-ounc e tube s o f afl^mnmble sealant . (Tr . 150 ; Exhibi t C-l. ) Th e .'Shipmen

t originate di n Marietta , Ohio , Mole-Master' s headquarters , an dit s destinatio n wa s Mole-Ma-ster'- s othe r facilit y i n Mosco w Mills , Missouri . (Tr . 41 ; Exhibi t C-l ; Exhibi t

C- 3 at 4. ) Mole-Maste r offere dth e shipmen t

for ai r transportatio n ("Next-Da y Air") , bu l i t wa. s transporte db y truc k o n th e fus l le g o f

it s trip , t o aUP S sortin g facility i n Louisville , Kentucky . A t th e UP S sortin g facility i n Louisville , UP S personne l discovere dihu t th e bo x containe dth e nin e 1 1 -ounc e rube s o f asealan t i n aclear

plasti c bag . (Tr . 50 ; Exhibi t C- 3 a t 9. ) Th e manufacture r

ha dlabele deac htub e wit hawarnin g tha t Hie sealan t

an dit s vapo r wer e flammable . Th e bo x lacke dth e require dhazardou s material s shippin g papers , marldngs , labels , an demergenc y respons e informatio n t o identif y i t a s ahazardou s06/24/201 0 09:4 4 FA X 202493514 2 FA A • > DM S @|003/02 8

maleiial . (Tr . 42 , 44 , 58 , 80 , 109. ) Thus , i t constitute da n undeclare dshipmen t o f a hazardou s material . Th e nex t day , UP S sen t

aHazardou s Material s Inciden t Report * an dacop y o f

a . Materia l Safety Dat aShee t ("MSDS" ) concernin g th e shipmen t t o FA A Specia l Agen t Beverl y Farris . Mole-Maste r late r submitie dth e sam e MSD S t o Specia l Agen t Fairi s (Tr . 59) , wh o determine dfromth e MSD S tha t th e materia l at

issu e wa s aregulated , hazardou s materia l (Tr . 38) . Accordin g t o th e MSDS , th e materia l i s a n adhesiv e (Exhibi t C- 5 at 4 ; Tr . 57-58 ) an di s i n Hazar dClas s 3 an dPackin g Grou p II . Th e MSD S indicate dtha t th e material' s identificatio n numbe r

i s UN I 133 ; tha t

i t i s aflammable material ; an dtha t shipment s o f thi s materia l requir e are dcautio n label . (Exhibi t C- 5 a i 4. ) Th e MSD S furthe r indicate d that th e materia l ha s harmfu l effect s o n th e tliroat , lungs , eyes , skin , an dgastrointestina l tract , (Id, ) Specia l Agen t

Farri s wen t

l o UP S t o inspec t

th e bo x (Tr , 46 ) an dfoun dtha t it wa s we t an dfallin g apar t

(Tr . 49) , UP S ha dopene di t t o dctenmin c i f

i t wa s leakin g o r

i f i t ha dbee n leake dupon , (Tr . 49 , 111, ) Specia l Agen t Farri.' ? di dno t

kno w ho w it

go t wet , bu t nothin g insid e th e packag e ha dleaked , (Tr . 87, ) I f ashipmen t

o f hazardou s material s i s offere dfor ai r transportation , i t

mus t b e prepare dfo r

ai r transportatio n i n accordanc e wit hth e HMR . (Tr . 43. ) Tlii s shipmen t wa s no t properl y prepare dfo r

transportatio n b y air . No t onl y wa s i t

a n undeclare dshipment , bu t Mole-Maste r

ha dno t me t th e requiremen t

tha t anyon e wh o prepare s ashipmen t containin g hazardou s material s b e traine daccordin g t o th e regulations . (Tr , 81, ) Further ,

' Carrier s are require dto notif y th e FA A o f possibl e violation s of

th e HMR , (Tr , 30-3 1 )OG/24/201 0 09:4 4 FAX 202493514 2 FA A • > DM S 0004/02 8

th e bo x containin g th e liazardou s materia l di dno t mee t ih c packagin g requirement s fo r an adhesive , Clas s 3 , Packin g Grou p U . (Tr . 82. ) Becaus e th e shipmen t wa s undeclared , UP S di dno t

kno w to trea t

i t a s ahazardou s matcriaJ . (Tr . 62, ) I f UP S know s tha t

th e shipmen t contain s hazardou s materials , i t wil l b e segregate dwhe n loaded , (Tr . 61. ) Mole-Maste r

responde dt o th e FAA' s lette r o f investigatio n a s follows : "W e hav e take n th e necessary action s t o se e tha t thi s wil l no t

happe n again . Pleas e accep t ou r apologie s fo r

any inconvenienc e thi s ma y hav e caused, " (Exhibi t C- 6 at 1.) Mole-Maste r attache dadociunen x regardin g it s safet y trainin g (Exhibi t

C- 6 at 2 ) t o it s letter . Specia l Agen t Farri s testifie dtha t

th e trainin g describe di n thi s documen t woul dno i mcc l th e regulation s for

training . (Tr , 71-72. ) Regardin g th e civi l penalty , th e FA A introduce dthroug hSpecia l Agen t Farri s a cop y o f FA A Orde r

No . 2150.3B , Appx , C , whic hth e AL J admitted . Thi s documen t i s entitled , "Sanctio n Guidanc e - Hazardou s Material s Enforcement, " (Exhibi t C- 7 at L ) I t contain s aMatri x i n figur e C- l for us e b y agenc y employee s in determinin g appropriat e civi l penaltie s i n case s involvin g tli c shipmen t o f haicardou s material s b y air . Specia l Agen t

Farri s testifie dthat

unde r thi s Matrix , th e Offens e Categor y wa*? "H " for a n "Undeclare dShipmen t withi n Ilazma i Quantity Limitalions. " (I'r , 83 ; Exhibi t C-7 , Figur e C-l , Ro w 2. ) Sh e als o testifie dthat sh e classifie dMole-Maste r a s asimpl e busines s entit y - no t

abusines s entit y tha t

use s o r handle s hazardou s material s i n th e cours e o f busines s an dno t

abusines s entity tha t

regularl y offers , accepts , o r transport s hazardou s materials . (Tr , 82 ; Rxliibi t C-7 , Figur e C-l , Colum n B. ) Usin g th e Matri x i n Figur e C-l , sh e determine dtha t tti c appropriat e civi l penalt y rang e pe r categoi y o f

violatio n wa s $1,500-8,200 . Sh e further testifie dtha t

Mole-Maste r06/24/201 0 08:4 4 FA X 202483514 2 FA A • > DM S i005/02 E

violate dsi x categoric.^ ? o f violations ; i.e. , violation s o f regulation s pertainin g t o (1 ) shippin g papers ; (2 ) labels ; (3 ) markings ; (4 ) packaging ; (5 ) training ; an d (6 ) emergenc y respons e informeition . (Tr . 83. ) Specia l Agen t Farri s testifie dtha t

Mole

Ma"!te r wa s no t charge dwit hareleas e int o th e environment , becaus e ther e wa s n o leak . Multiplyin g th e lo w en do f th e range , $1,500 , b y si x categorie s woul db e $9,000 . Multiplyin g th e hig hen do f $8,20 0 b y si x categorie s woul db e $49,200 . Whe n th e judg e aske dhe r i f th e propose d$30,00 0 civi l penalt y wa s arrive dat b y averagin g th e lo w end an dth e hig hend , sh e sai dye s ('I'r . 82 , 84) , althoug hsh e di dno t calculat e th e civi l penalt y hersel f (Tr . 97-98) . Mole-Master' s Genera l Manage r testifie da s follows . Mole-Maste r ha dabou t

35

- 4 0 employee s a

t tli c tim e o f

tli e incident . (Tr . 124, ) I t ha daflee t

o f abou t 12-1 5 vehicles , an dsom e sale s car s an dothe r piece s o f equipment . (Tr . 125. ) Th e majority o f ih e item s Mole-Maste r

ship s are catalogues , brochures , an dpromotiona l item s suc ha s coffe e mugs , T-shirts , an dbal l caps . (Id. ) A t th e tim e o f

th e incident , th e company' s annua l sale s volum e wa s alittl e morn ; tha n $ 4 million . (Tr . 127. ) Th e profitabilit y o f th e compan y wa

g 6 t o 8 percen t

befor e taxes . (Id. ) Mole-Maste r

di dno t normall y shi p o r

us e ih e sealan t

a t issue , (Tr . 128. ) UsuaJll y i t use danon-hazardou s sealaji t (Id. ) I t ha dn o prio r

violations , (Tr . 139. ) I t provide da 2-da y hazardou s material s trainin g clas s whic hwa s hel di n Septembe r 200 8 for everyon e i n th e company . Mole-Master , however , di dno t introduc e certificate s o f trainin g o r

a cop y o f th e cours e curriculu mint o th e record . (Tr . 14] , 146. ) Mole-Maste r no w ha s a safel y manager . (Tr . 147. ) Molc-Mastcr', s Genera l Manage r testifie dtha t

Mole-Maste r06/24/201 0 09:4 5 FA X 202493514 2 FA A• > DM S ©006/02 8

replace dit s shippin g perso n withamuc hhighe r pai dindividua l wh o ha dsignifican t experienc e i n handlin g hazardou s materials . (Tr . 149. ) III . Th e Initia l Decisio n Afte r th e hearing , th e /VL

J issue dadecisio n fmdin g tha t Mole-Masle r

committe d th e allege dviolations . (Initia l Decisio n at 5 . 6. ) Regardin g th e penalty , h e foun dtha t Specia l Agen t

Farri s accuratel y applie dFA A Orde r No . 2)50.3B , Appx . C , t o calculat e th e appropriat e civi l penalty , Th e AL J note dtha t

th e averag e or$9,000 * an d$49,200' ' i s $29,100 , H e di.sapprove dth e "roundin g up " t o $30,00 0 tha t h e sai dtoo k

plac e afte r

Specia l Agen t Farri s complete dhe r

repor t because , i n hi s view , it

wa s baseless . Thus , h e stated , th e tentativ e civi l penalt y shoul db e $29,100 . Th e A U recognize dtha t xmdc r FA A Orde r No . 2150,3B , Appx . C , mitigatin g factor s ma y b e relie do n t o reduc e th e penalty , bu t h e sai dtha t Mole-Maste r

ha dplace di n th e recor dlittl e o r n o har devidenc e tha t

woul d justif y reducin g th e penalt y significantly . Wit hrespec t

t o an y allege dnegativ e effec t o n Mole-Master' s abilit y t o remai n i n busines s an dit s inabilit y t o pay , th e AL J state dthat

th e burde n o f

comin g forwardreste d upoti Mole-Master . H e furthe r state dthat

Mole-Maste r

ct)ul dno t

rel y upo n mer e generalization s that

forme dmuc ho f

th e testimon y o f

Mole-Master' s Genera l Manager , bu t instead , Mole-Maste r

ha dt o "com e forwar dwithaudite dfmancia l statement s an d othe r dat ashowin g it s financia l positio n i n detail. " Mole-Master , h e found , faile dt o introduc e suc hdocumentar y evidenc e t o prov e it s financia l circumstances . (Initia l

* $1,500 , th e lo w ondo f

th e sanctio n rang e i n FA A Orde r No . 2150.3B , muhiplie db y si x violatio n categories . ^ $8,200 , th e hig hen do f th e sanctio n r.ing e i n FA A Orde r No . 2150.3B , multiplie db y si x violatio n categories .06/24/201 0 09:4 5 FAX 202493514 2 FA A^ DM S EI007/02 8



### Decisio n a

t 7. ) Mole-Master' s genera l argtimen l tha t th e civil penally shoul db e reduce d becaus e i t wa s asmall business , he found , was insufficien t an dcontrar y t o FA A Orde r No . 2150.3H , Appx . C , ^ 5c , whichprovide s tha t "[tjhe FA A doe s no t

reduc e or waiv e th e penalt y ,. . solely becaus e [the violator] i s asmall busines s entity. " The AL J emphasizedtha

t "[m]ajo r catastrophe s an

dsignifican

t los s of lif e ma y occu r becaus e seemingly iimocuou s househol ditem s ar e place di n the strea mof air commerc e without

adequat e warning to the carrier , it s employee s or emergency rescu e personnel. " (Initia

l Decisio n a

t 7. ) According to the AtJ , "*[t]h e garden-variet

y adhesiv e container s .. . containe daflanimable substanc e tha t woul dhav e been transforme dint o a powerfiil accelerant

if afir e ha dbroken out

in ihc carg o compartment

of th e aircraft. " (Id ) However , th e AL

J reduce dthe penalt

y sough t b y th e FA A fro m$29,10 0 t

o $25,00 0 basedon Mole-Master' s "investmen t in better trainin g i n hazardou s material s transportatio n fo

r it s headquarter s shop , management , andclerica l personnel. " (Initia

l Decisio n a

t 7. ) The AI. J di ds o eve

n thoug hMole-Master' s trainin g di dno t occu r unti l Septembe r 2008, 1 yea

r and7 month s afte

r th e violations , and , i

n hi s words , th e descriptio n of

th e trainin g fro

mMole-Master' s Genera

l Manage r wa s "rather

sketchy.' ' (Id. ) Nevertheless , th e AL J stated , Mole-Maste

r didmak e th e effor t t o remed y th e fvmdamenta

l cause s of

th e violation s - ignoranc e an dcarelessness .06/24/201 0 09:4 5 FA X 202493514 2 FA A^ DM S 0008/02 8

rv , Discussio n Onl y Mole-Maste r

ha s appealed. , Mole-Maste r contest s th e civi l penalt y amount , bu t no t th e finding o f

violations . Preliminarily , th e AL J use dth e wron g guidanc e i n determinin g th e civi l penalt y amount . H e use dFA A Orde r No . 2150,3B , Appx . C (Exhibi t C-7) , whic hbecam e effectiv e o n Octobe r

1 , 2007 , and , therefore , di dno l appl y t o th e violation s in thi s case , whic hoccurre do n Februar y 13 , 2007 . Instead , th e sanctio n guidanc e i n FA A Orde r No . 2150,3A , Appx . 6, * applie s l o thi s case. * Th e applicabl e sanctio n range , fo r busines s entitie s tlia t

shi p undeclare d .shipment s withi n th e hazardou s material s quantit y limitations , i s highe r unde r FA A Orde r No . 2150,3n , Appx . C , tha n unde r FA A Orde r

No , 2150.3A , Appx . 6 , 'fh e rang e unde r FA A Orde r

No . 2150.3B , Appx . C , i s $1,50 0 t o $8,200 , whil e th e rang e unde r th e applicabl e order , FA A Orde r No , 2150,3A , Appx . 6 , i s $1,50 0 t o $7,500 . I f th e FA A too k th e averag e o f

th e hig han dlo w end s o f th e rang e t o arriv e a

t amoderat e sanctio n (Tr . 84) , a s th e testimon y indicated , the n th e propose dcivi l penalt y wa s highe r Ihan i l shoul dhav e been . No t onl y di dth e FA A an dth e AL J us e th e wron g guidanc e i n determinin g th e penalty , bu t

th e F/VA' s sol e witness . Specia l Agen t Farr),5 , testifie dtha t

sh e di dno t

' Thi s sanctio n guidanc e ^va s publishe din the Federa

l Register ; th e citatio n i s Federa l Aviatio n Adminislratio n Polic y o

n Enforcemen

t o f the Hazardou

H Material s Regulations : Penalt y Considerations . 64 Fed . Reg , 1944 3 (April 21 . 1<)99) . * The ALJ' s relianc e o

n the wrong guidanc e i s undci-standable becaus e Specia l Agcnl Farri s testifie dregardin g FA

A Orde r No , 2150.3B , Appx , C , (Tr . 36. )06/24/201 0 09:4 5 FAX 202493514 2 FA A. nu c •^" ^ ^ OM S 21009/02 8

hersel f calculat e th e civi l penalt y an ddi dno t kno w ho w he r

colleague , wh o wa s no t

a t th e hearin g du e t o inclemen t weather , hadcalculate dth e amount . (T r 97-98.)'* * Notwithstandin g th e proceeding s befor e th e ALJ , th e Administrato r can determin e th e appropriat e civi l penalt y o n appeal . Cf , Zoltanski . FA A Orde r

No , 2002-1 2 at

7 (Apri l 26 , 2002 ) (statin g tha i th e Administrato r nee dno t reman dacas e fo r

asanctio n determinatio n whe n th e Administrato r overturn s afinding o f

n o violation) , citin g Esau . FA A Orde r

No , 1991-3 8 at

7 n . 7 (Septembe r

4 , 1991 ) (statin g tha t

whil e i t woul dno t

b e inappropriat e t o reman dth e cas e t o tli e ALJ , i t wa s mor e efficien t

for th e Administrato r t o determin e th e sanction) . Th e FA A issue dth e sanctio n guidanc e i n FA A Orde r No . 2150,3A , Appx . 6 , o n Apri l 21,1999 , A t

that time , th e Federa l hazardou s material s transportatio n la w (no w foun dat 4 9 U.S,C , § 5123 ) provide dfor aminimiu n civi l penalty o f $25 0 an da maximu mcivi l penalt y o f $25,000 , 6 4 Fed . Reg , 19443,1944 3 (Apri l 21 , 1999) . Will i th e adjustmen t

for inflatio n foun di n 1 4 C.F.R . Par t 13 , Subpar t

H , th e maximu mcivi l penalt y pe r

violatio n a l th e tim e wa s $27,500 . Id . I n 2007 , whe n Mole-Masic r offere dth e hazardou s material s fo r shipment , ih e minimu mcivi l penall y for genera l hazardou s material s violation s unde r 4 9 U.S.C . § 512 3 wa s stil l $250 , bu t

th e minimu mcivi l penalty for trainin g violation s ha drisen t o $450 . 1 4 C.F.R . Far t

13 , Subpar t

H , Tabl e 3

- Tabl e o f

Minimu man dMaximu mCivi l Monetar y Penalt y Amount s for Hazardou s Material s Violation s Occurrin g o n o r after Augus t 10,2005 . Th e maximu mpenalt y pe r violatio n ha drise n t o $50,000 . I d

"* She didtestif

y tha t "wc " - apparently meaning specia l agent s - all calculate civi l penaltie s i n the sam e way . (Id. )06/24/201 0 09:4 5 FA X 202493514 2 FA A^ DM S 0010/02 8

•I n determinin g th e amoun t o f acivi l penalt y i n hazardou s material s cases , th e followin g statutor y factor s mus t b e considered* . (1 ) th e nature , circumstances , extent , an d gravity o f th e Yiolation(s) ; (2 ) withrespec t t o th e violator , th e dcgi'e e o f cialpabiliiy , an y histor y o f prio r violations , th e ability l o pay , an dany effec t o n th e abilil y l o conrinu e t o do business ; an d(3 ) othe r matter s tha t

justic e requires . 4 9 U.S.C . § 5123(c) . Th e FAA' s sanctio n guidanc e i n FA A Orde r No . 2150.3A , Appx . 6 , take s int o accoun t th e .rtatutor

y factors . Th e guidanc e state s tha t i t "provide s agenc y persorme l wit hu systemati c wa y t o evaluat e acas e andarriv e at a n appropriat e penalty , considerin g al l th e relevan t statutor y criteri aincludin g an y mitigatin g andaggravatin g circumstances. " 6 4 Fed . Reg , 19443 , 19444 . Th e sanctio n guidanc e "contain s ascrie s o f question s designe dl o assis t specia l agent s an dattorney s i

n evaluatin g aparticular

case. " Id , Thes e question s are base do n th e statutory factors . I n respons e t o th e questio n *l s th e matcrial(s ) offered , transported , o r accepte di n Categor y A, " th e answe r i s "yes " becaus e tl) e materia l a t issu e i n thi. s cas e i s aflammabl e liqui di n HaTiai' dClas s 3 , Packin g Grou p 11 . FA A Orde r No . 2150.3A , Appx . 6 , Figur e 2 . Th e guidanc e slates , "I f yes , assig n aMaximti mweight." " Al l o f th e othe r que,"5tions" ' i n th e hazardou s material s sanctio n guidanc e in FA A Orde r No . 2150. 3 A , Appx . 6 , ar e answere d"no " an dtherefore , unde r th e guidance , d o

' ' Ih e AL J place dth e materia l i n Categor y B althoughthe material , aClas s 3 , Packing Grou p 1 1 material , i s clearly i

n Categor y A , according to Figur

e 2 . ' ^ (1 ) Didth

e pQckagc(s) exceedthe authorizedquantit y limitfttion s b

y asignificaji

t amount ? (2 ) Wer e ther e multipl e package s i

n th e shipment ? (3 ) Didthe shipmen t caus e damage o

r har mt o person s o r property , o

r interfer e wit hcommerce ? (4 ) I s the violator th e manuracturci

- of

the hazardou s material ? (5 ) Di dsomeone othe

r tha n the violator

prepare the shipmcn

Lfo r transportatjon ? (6 ) Di

dth e violator

reasonabl y rely o n incorrect information fro

mai^othe r source ? (7 ) Doe s the violator hav e ahistor

y o f previou s HM

RviolationsV 1 006/24/201 0 09:4 5 FA X 202493514 2 FA A• > DM S 21011/02 8

no t affec t th e weightin g o f

th e case . A s aresult , th e final , aggregat e weigh t o f th e cas e :i

s maximum . Th e nex t ste p i s l o us e th e Matti x i n FA A Orde r No . 2150.3A , Appx . 6 , Mole

Maste r fall s int o th e categor y o f "Busines s entity. " Fo r

a"Busines s entity " tlia t ship s aj i "Undeclare dShipmen t

Withi n Hazmat

Quantit y Limitalions, " th e rang e i n tli e Matri x i n $1,50 0 t o $7,50 0 for

eac ho f th e si x violatio n categorie s appUcabl e i n thi s cas e - i.e. , shippin g papers , labels , raoikings, packaging , training , an demergenc y respons e inforriiarion . Not e tha t

releas e int o th e environmen t i s no t on e o f th e violatio n categorie s at issu e i n thi s case . Th e evidenc e wa s iha i th e hazardou s material s offere db y Mole

Maste r fo r shipmen t

di dno t leak . I n ligh t o f th e factor s describe dabove , acivi l penall y o f a s muc ha s $45,00 0 woul db e appropriate . Bu t th e analysi s unde r

th e sanctio n guidanc e i s no t complete . Regardin g "othe r

matter s tha t

justic e require s [l o b e considered], " i t mus t b e determine d whethe r Mole-Maste r

loo k correctiv e actio n warrantin g areductio n i n th e civi l penalty . Mole-Master' s Genera l Manage r testifie dtliat

Mole-Maste r

conducte da2-da y traiiiin g cours e fo r

it s employees . I n addition , Mole-Mastei " no w ha s asafely manager . (Tr . 147, ) Mole-Master' s Genera l Manage r testifie dtha t

Mole-Master' s shippin g perso n i s n o longe r abasi c labore r

bu t i s amuc hhighe r

pai dindividua l wit hsignifican t experienc e i n handlin g hazardou s materials . (Tr , 149. ) Trainin g an dothe r

change s t o ensur e complianc e withth e regulation s ar c strongl y encouraged . Swift , comprehensive , an dpositiv e correctiv e actio n ma y warran t a reductio n i n a

n otherwis e reasonabl e civi l penalty . See , e.g. , Whitley . FA A Orde r No . 2009- 4 a t

1 0 (Januar y 14,2009) , In th e instan t case , however , Mole-Master' s

1 106/24/201 0 09:4 5 FAX 202493514 2 FA A. nu ^ '^"' ^ * DM S 21012/02 8

trainin g wa s no t

swif t - - it di dno t occu r unti l 1 yea r

an d7 month s after

th e violations , Moreover , th e AL J fotm dtha t th e Genera l Manager' s descriptio n o f th e trainin g wa s "sketchy, " (Initia l Decisio n at 7. ) Unde r

th e circumstances , n o mor e tha n aminima l adjustmen t

fo r trainin g i s warranletl . A mino r adjustmen t

fo r th e othe r correcliv e actio n - appointin g asafety manage r an dhayin g ashippin g perso n wit hsignifican t

hazardou s material s experienc e - i s als o warranted. " Th e Administrato r

i s constraine db y th e amoun t sough t i n th e complaint , Sectio n 13.16<j ) o f

th e FA A Rule s o f

Practice , 1 4 C.F.R . § 13.16(j) , provide s that"[fjh c FA A decisionmake r

ma y asses s acivi l penalt y bu t shal l no t asses. $ acivi l penalt y i n a n amoun t greate r tha n tha t sough t i n th e complaint.' " (Emphasi s added. ) Here , th e FA A sough t $30,000 , s o acivi l penall y abov e that ma y no t b e assessed . Further , th e FA A di d no t fil e across-appea l challengin g th e ALJ' s $25,00 0 civi l penalt y a s to o low ; therefore , th e ALJ' s penalt y amoun t wil l no t b e disturbe di n thi s dcci.sion . Mole-Maste r

argue s tha i i t

i s likel y tha t

th e FA A base dit s propose dpenalt y largel y o n th e aggravatin g facto r o f aleak , whic hdi dno t

exist . Mole^Maste r

point s ou t tha t ih c FA A di dno t

mov e t o strik e th e wor d"leaking " fro mth e complain t vmti l th e hearing , If

, however , th e FA A ha dbase dit s propo,se dcivi l penalt y o n aleak , th e penalt y i t sough t woul dhav e bee n muc hhigher . Not e lo o tha t th e propose dpenalt y i s no t a t i,s.su e an y longer . Th e $25,00 0 civi l penalt y assesse di n thi s decisio n take s int o accoun t tha t ther e wa s n o leak .

" Testimony bethr

u th e AL J suggeste dtha

t di e civi l penalt

y sough t i n th e complaint

wa s arrived a t b y averagin g the higlies t

an dlowes t end s o f th e civi l penalt

y rang e fo r th e numbe

r o f violatio n categorie s involvedi

n thi s ease . The Administrator doe s not encourag e th e us e o f

amathematica

l formul at o set

acivi l penalty , Further , i n thi s decision , the Administrator didno t us e a mathomatica

l formul at o arriv e a

t th e civi l penalty . Instead , tlie civil penalt y assesse di

n thi s decisio n i s base do

n aconsideratio n of

all relevant

factors . 1 206/24/201 0 09:4 5 FAX 202493514 2 FA A^ DM S §1013/02 0

Mole-Maste r

als o argue s tha t

th e $25,00 0 civi l penalt y assesse db y th e AL J i s lo o hig hcompare dwiththa t assesse di n apreviou s case , Phillip s Buildin g Supply . FA A Orde r No . 2000-2 0 (Augus t

11 , 2000) , reconsideratio n denied , FA A Orde r No . 2000-2 7 (Decembe r

21 , 2000) . Phillips , whic hha dn o histor y o f violations , shippe dfiv e 1-gallo n can s o f Formic aglue , whic hha dth e prope r shippin g nam e o f

Halogenatc dIrritatin g Liquid , NOS . On e o f

th e can s leaked . In Phillips , th e Administrato r assesse da$14,00 0 civi l penalty . Phillip. s i s inapposite , however . 'l"hc glu e wa s i n Hazar dClas s 6.1 , Packin g Grou p i n - indicatin g amateria l tlia t wa s les s ha^-ardou s tha n th e materia l offere db y Mole-Masle r

fo r shipment , whic hwa s i n Hazar dClas s 3 , Packin g Grou p II , Th e lowe r th e Hazar dClass , th e mor e hazardou s tli e materia l is . Ha:;iar dClas s 6,1 , Packin g Grou p i n material s fall withi n Ris k Category C an dtherefor e receiv e aminimu mweight , i n contras t t o Hazar dClas s 3 , Packin g Grou p I I materials , whic hfal l withi n Ris k Categorj ^ A an dwarran t

amaximum

n weight , FA A Orde r

No . 2150,3A , Appx . 6 , Figur e 2 . Further , Phillip s wa s decide dalmos t adecad e ago , an dth e shipmen t i n Phillip s too k

plac e prio r

t o th e publicatio n o f

F/ ^ Orde r

No . 2150.3A , Appx . 6 , o n Apri l 21 , 1999 . 6 4 Fed , Reg . 1944 3 (Apri l 21 , 1999) . Mole-Maste r

argue s tha t

it s conduc t

wa s no t egregiou s becaus e di e produc t at issu e i s foun di n an y hardwar e o r hom e improvemen t

stor e Whil e Mole-Master' s conduc t coul dhav e bee n worse , ih t materia l wa s flammable (an dwa s clearl y labele da s such) , whic hmake s thi s aver y seriou s matter . Mole-Maste r als o argue s tha t

it s conduc t wa s no t egregiou s becaus e i t

ha dno l use dtli e produc t before . However , th e civi l penalt y woul dhav e bee n highe r

unde r th e sanctio n guidanc e i f Mole-Maste r

haduse do r

handle d

1 306/24/201 0 09:4 6 FA X 202493514 2 FA A+ DM S il014/02 8

hazardou s material s i n th e cours e o f busines s o r

i f Mole-Maste r

regularl y offered , accepted , o r

transporte dhazardou s materials , Mole-Masle r

argue s tha t

ther e i s a"pilin g on " o f

violations , tha t

i t wa s asingl e ac t o f shippin g materials , tha t

i t di dno t kno w th e material s wer e hazardous , an dthat th e othe r violation s wer e primaril y paperwor k violations . Ther e wa s n o pilin g on . Althoug h thi s ma y hav e bee n asingl e event , i t wa s no t asingl e violation . Unde r th e sanctio n guidance , Mole-Maste r

violate dsi x differen t

categorie s o f

violations . Ha dMole-Maste r know n an dintentionall y shippe dth e hazardou s material , i t woul dhav e bee n subjec t t o crimina l penaltie s unde r

4 9 U,S.C . § 5124 , whic hprovide s fo r crimina l fine s unde r Titl e 1 8 o f

th e U.S . Cod e an dimprisonmen t o r both . Tha t

Mole-Maste r

argue s tha t

som e o f th e violation s wer e "primaril y paperwork violations " suggest s tha t i t stil l doe s no t understan dth e gravity o f it s offenses . I f

it i s referrin g t o th e violation s involvin g shippin g papers , labels , markings , o r emergenc y respons e information , i t doe s no t comprehen dtha t

complianc e wi'di thes e requirement s help s t o ensur e tha t hazardou s material s ar e properi y handled , s o tha t th e ris k o f a n inciden t

i s diminished , an ds o tha t ther e i s emergenc y hel p i f a n inciden t

doe s occitr .

1 406/24/201 0 09:4 6 FA X 202493514 2 FA A* DMS @1015/02 8

Conclusio n A civi l penalt y o f

$25,00 0 i s no t

excessive ; consequently , fo r th e reason s state d above , thi s decisio n affirm s th e civi l penalty assesse db y th e ALL'' '

^ — I RANDOLP H BABBIT f ADMINISTRATO R Federa l Aviatio n Administratio n

' " Thi s deeisio n .shal

l b e considere da

n orde r assessin g civil penally unles s Respondent iilc s a . petitio n fo r reviuw within 60 day s of

serviee o f thi s decision wit

hthe U.S . Cour

t of Appeal s fo

r th e Distric t

o f Columbi aCircui t

o r the U.S . cour

t o f appeal s fo r the circui t

i n whichth e respondent

re.s-idc ao r ha s it s principa

l plac e of business . 1 4 C.F.R . § § 13.16(d)(4) , 13.233(j)(2) , 13-23 5 (2009) . Se

e 7 1 Fed . Reg . 70460 (Dec . 5 , 2006 ) (regarding petition s fo r review o f fina l agency decision s i

n civi l penalt

y cases) . 1 506/24/201 0 09:4 e FAX 202493514 2 FA A^ DM S gjOie/02 8

APPENDI X Sectio n 171.2(e)'^provides ;

(c) N o perso n ma y offe

r o r accep t ahazardou s materia l fo r transportatio n i n commerc e uides s th e hazardou s materia ] i s 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 thi s subchapte r

... . Sectio n 172.200(a ) provides :

(a ) De,scripiio n o f

hazardou s material s required . .. , [KJac hperso n vdi o offer s ahazardou s materia l fo r transportatio n shal l describ e th e hazardou s materia l o n th e shippin g pape r i n th e manne r

require db y thi s subpart . Section s 172.202(a)(l)-(6 ) provide :

(a) Th e shippin g descriptio n o f ahazardou s materia l o n th e shippin g pape r

mus t include : (1 ) Th e prope r

shippin g nam e prescribe dfor th e materia l i n Colum n 2 o f

th e § 172.20 1 table ; (2 ) Th e hazar dclas s o r

divisio n numbe r

.. . a s show n i n Colum n (3 ) o f th e § 172.10 1 Tabic... . (3 ) Th e identificatio n numbe r prescribe dfor

th e materia l a s show n i n Colum n 4 o f

th e § 172.20 1 table ; (4 ) Th e packin g grou p i

n Roma n numerals , a s designate dfor th e hazardou s materia l i n Colum n 5 o f th e § 172.10 1 Tabl e ... ; an d (5 ) Th e tota l quantit y o f

hazardou s material s ... ; (6 ) Th e numbe r

an dtyp e o f

package s ... . Sectio n 172,204(a)(l)-(2 ) provides :

(a) [Ejac hperso n wh o offer s ahazardou s materia l for transportatio n shal l certif y iha t th e materia l i s offere dfo r transportatio n i n accordanc e wit hthi s subchapter b y printin g .. . o n di e shippin g pape r .. . th e certificatio n containe di n paragrap h(a)(1 ) o f thi s sectio n o r

th e certificatio n ,. , i n paragrap h(a)(2 ) o f thi s section . (1 ) "Thi s i s t o certif

y tha t th e above-name dmaterial s ar e properl y classified , described , packaged , marke dan dlabeled , an dar e i n prope r conditio n for

transportatio n accordin g t o th e appUcabl e regulation s o f th e Departmen t

o f Transportation. " ... .

' * Al l citjitjon s ar

e to th e Octobe

r 1 , 2006 , editio n o f

Titl e 4 9 o f the Code o

f Federa l Regulation,-; . Th e regulation s a

t issu e wer e not revisedagai

n until Octobe

r 1,2007 .06/24/201 0 08:4 6 FA X 202493514 2 FA A+ DM S 0017/02 8

(2 ) " I hereb y declar e tha i th e content s o f thi s consigimicn t

ar c full y an daccuratel y describe dabov e b y th e prope r shippin g name , an dar e classified , packaged , marke dan dlabelled/placarded , an dar c i n al ) respect s i n prope r conditio n for

transpor t accordin g t o applicabl e internationa l an d nationa l governmenta l regulations. " Sectio n 172.204(c)(] ) provides :

(c ) Transportatio n b

y ai r -(1 ) ., . Certificatio n containin g th e followin g languag e ma y b e use di n plac e o f th e certificatio n require db y paragrap h(a) o f

thi s section ; I hereby certif

y tha t th e content s o f

thi s consignmen

t ar e full y and accurately describe dabov e b y prope r shippin g nam

e an darc classified , packaged , marke dan dlabeled , on din prope r

conditio n fo r

carriag e b y ai r accordin g t o applieabl e naliona l governmenta l regulation s Sectio n 172.204(c)(2 ) provides :

(2 ) Certificat e i n duplicate . Eac hperso n wh o offer s ahazardou s materia l t o a n aircraf

t operato r fo r transportatio n b y ai r

shal l provid e tw o copie s o f th e certificatio n require di n thi s sectio n Sectio n 172.204(c)(3 ) provides :

(3 ) Additiona l certificatio n requirements . .. . [EJac hperso n wh o offer s a hazardou s materia l for

ti-ansportatio n b y ai r

mus t ad dt o th e certificatio n require d i n thi s sectio n ... : " 1 declar e that

al l o f th e applicabl e ai r

transpor t requirement s hav e bee n met. " Sectio n 172.300(a ) provides :

(a) Bac hperso n wh o offer s ahazardou s materia l fo r transportatio n shal l mar k

eac hpackag e .. . containin g th e hazardou s materia l i n th e manne r require db y thi s subpart . Sectio n 172.301(a ) provides :

(a ) [E]ac hperso n vt^h

o offer s ahazardou s materia l fo r transportatio n i n anon-bul k packagin g mus t

mar k th e packag e wit hth e prope r shippin g nam e an didentificatio n numbe r (precede db y "UN " o r "NA, " a s appropriate ) fo r th e materia l a s show n i n th e § 172.10 1 Table.,, ,06/24/201 0 09:4 6 FA X 202493514 2 FA A• > DM S @i018/02 £

Sectio n 172.312(a)(2 ) provides :

(a) .. . [E]ac hnon-bul k

combinatio n packag e havin g inne r packaging s containin g liqui dhazardou s material s mus t b e ., , (2 ) Legibl y marke dwit hpackag e orientatio n marking s .. , .o n tw o opposit e vertica l side s o f th e packag e withth e arrow s pointin g i n th e correc t uprigh t direction . Sectio n 172,400(a ) provides :

(a) fRlac hperso n wh o offer s for transportatio n o r

transport s a hazardou s materia l in an y o f th e follov^^in

g package s o r

containmen t devices , shal l labe l ih e packag e o r containmen t

devic e witl i th e label s specifie dfo r

th e materia l i n th e § 172.10 1 tabl e an di n thi s subpar t ... . Sectio n 172.600(c ) provides ;

(c ) .. . N o perso n t o who mthi s subpar t applie s ma y offer

fo r transportation , accep t

fo r transportation , transfer , stor e o r otherwis e handl e durin g transportatio n ahazardou s materia l unless : (1 ) Bmergcnc y respons e informatio n conformin g t o thi s subpar t i s immediatel y availabl e fo r us e at al l times th e hazardou s materia l i s present ; an d (2 ) Emergenc y respons e informatio n .. . i s immediatel y availabl e l o an y perso n who , a s arepresentativ e o f aFederal , stat e o r

loca l governmen t

agency , respond s t o a n inciden t

involvin g ahazardou s material , o r i s conductin g a n investigatio n whic hinvolve s ahazardou s material . Sectio n 172.602(b)(3 ) provides :

(b ) For mo f

information . Ih e informatio n require dfo r ahazardou s materia l ,, . mus t

b e ,. . (3 ) Presented— • (i ) O n ashippin g paper ; (ii ) I n adocument , othe r

tha n ashippin g paper , tha t include s bothth e basi c descriptio n an dtechnica l nam e o f th e haziirdou s materia l a s require db y § § 172.20 2 an d172,203(k) , th e ICA O Technica l Instructions , th e IMD GCode , o r ih e TD GRegulations , a s appropriate , an dth e emergenc y respons e informatio n require db y thi s subpar t

(e.g. , amateria l safety dat asheet) ; o r (iii ) Relate dt o th e informatio n o n ashippin g paper , awritte n notificatio n t o pilot-in-command , o r

adangerou s carg o manifest , i n a.separate documen t (e.g. , a n emergenc y respons e guidanc e document ) i n amanne r iha t cross-reference s Ih e descriptio n o f

th e haTardou s materia l o n th e shippin g pape r withth e emergenc y respons e informatio n containe di n th e documen i

u i

l-i m06/24/201 0 09:4 6 FA X 202493514 2 FA A* DM S @l019/02 8

Sectio n 172.604(a)(3 ) provides : j " (a ) A perso n wh o offer s ahazardou s materia l fo r transportatio n mus t provid e a n emergenc y respons e telephon e number , includin g th e are acod e o r ( internationa l acces s code , for us e i n th e even t

o f an emergenc y involvin g th e hazardou s material . Th e telephon e numbe r mus t b e - \(3 ) Emerc do n ashippin g paper , a s follows : j (i ) Immediatel y followin g th e descriptio n o f th e hazardou s material.. . ! (ii).. , i n aclearl y visibl e locatio n ... . f Sectio n 173.1(b ) provides ; j (b ) A shipmen t o f hazardou s material s tha i i s no t prepare di n j accordanc e withthi s subchapte r ma y no t b e offere dfo

r transportatio n b y r air , highway , rail , o r water . It i s th e responsibilit y o f

eac hhazma t I employe r ,. . t o ensur e tha t

eac hha/ana t

employe e i s traine di n accordanc e I wit hth e requirement s prescribe di n thi s subchapter . It i s th e duty o f

eac h f perso n wh o offer s hazardou s material s fo r transportatio n t o instruc t eac h j o f hi s officers , agents , an demployee s havin g an y responsibilit y fo r preparin g hazardou s material s for shipmen t

a s t o applicabl e regulation s in I thi s subchapter , [ Sectio n 173.20 2 provides : f (a ) Whe n § 172.10 1 o f thi s subchapte r

specifie s tha t

ahqui d j hazardou s materia l b e package dunde r (hi s section , onl y non-bul k packaging s prescribe di n thi s sectio n ma y b e use dfor it s transportation . f Eac hpackagin g mus t confor mto tli c genera l packagin g requirement s o f j subpar t D o f par t 173 , t o th e requirement s o f por t 17 8 o f thi s subchapte r

at j th e Packin g Grou p I o r I I performanc e leve l (unles s otherwis e excepted) , i an dl o th e particula r requirement s o f

th e specia l provision s o f colvim n 7 o f th e § 172,10 1 table .

I V06/24/201 0 09:4 6 FA X 202493514 2 FA A ^ QM S li020/02 8



## SERVE D FEBRUAR Y 10,200 9 U.S . DEPARTMEN T OFTRANSPORTATIO N

OFFIC E O FHEARING S WASHINGTON , D.C . I N TH E MATTE RO F FE B \I 200 9 

## MOLE-MASTE

RSERVICE

S CORPORATiq^ARIM GDOCKE T DOCKE T NO . CP08SO001 2 (Civi l Penalt y Action ) DM S NO . FAA-2008-069 1 INITIA LDECISIO N ASSESSIN G CIVI LPENALT Y O FS25,00 0 Mole-Maste r

Service s Corporation , th e Responden t i n thi s case , i s a busines s headquartere di n Marietta , Ohi o tha t perform s cleanin g an drepai r service s fo r

ownei- s an doperator s o f dr y storag e facilitie s suc ha s grai n silos . I t ha s bee n accuse db y th e Complainant , th e Federa l Aviatio n Administratio n (FAA) , o f violatin g th e Department' s Hazardou s Material s Regulation s (HMR ) b y tenderin g t o Unite dParce l Servic e (UPS ) for ai r transportatio n acardboar dbo x containin g nin e eleven-ounc e tube s o f Blac k Lap Sealant , abo x tha t

wa s no t labeled , paclcaged , marke do r identifie da s containin g hazardou s material s an dtha t wa s no t accompanie db y th e requisit e shippin g paper s o r emergenc y respons e information . Th e FAA' s complain t sough t acivi l penalt y o f

$30,000 . I n th e complaint , th e FA A identifie d1 7 separat e violation s o f th e HM Rtha t

Mole-Maste r

wa s allege d t o hav e committed . Mole-Maste r

file dan answer , generall y denyin g tha t i t ha dcommitte d th e violation s knowingl y an ddemande dahearing . I n it s answer , an dat th e hearing , Mole-Maste r

neve r seriousl y conteste dth e FAA' s positio n tha t th e Black-La p Sealan t

ha dbee n correctl y classifie da s ahazardou s material . A hearin g wa s hel dbefor e m e i n Louisville , Kentuck y o n Januar y 29,2009 . Bot hpartie s wer e represente db y counsel , an dth e testimon y o f tw o06/24/201 0 08:4 7 FAX 202433514 2 FA A



### witnesse s wa s presented . A t th e conclusio n o f

th e testimony , bot hpartie s electe dt o mak e a n ora l presentatio n i n lie u o f post-hearin g briefs . Th e Complainan t

offere dfor

th e recor dseve n documentar y exhibit s (labele dC- l throug hC-7) , al l o f

whic hwer e receive di n evidence . Th e Responden t identifie dasingl e docianentar y exhibi t bu t withdre w i t

an ddecline dt o offer it , o r an y othe r

document , for

th e record . Th e FAA' s witnes s was-Sp«eia l Agen t Beverle y Farris , aHazardou s Material s Specialis t

i n th e agency' s Louisville . Kentucky office . O n Februar y 14 , 2007 , sh e receive daHazardou s Material s Inciden t Repor t from aUP S employe e i n th e carrier' s Louisvill e sortin g facility. ' Th e repor t indicate dtha t

apackag e containin g "adhesives " ha dbee n opene dan dfoun d t o contai n undeclare dhazardou s materials . Se e Exh . C- l A T 1 . O n Februar y 22 , 2007 , Ms . Farri s wen t t o th e UP S facility an dwa s show n th e bo x i n question . Th e cardboar dcontaine r ha dbee n wet , reducin g it s structura l integrity . Thi s prompte dth e UP S personne l t o ope n i t i n orde r t o ascertai n whethe r th e sourc e o f

th e liqui dwa s insid e th e box . I t wa s bein g hel di n a specia l roo mwher e UP S kep t questionabl e packages . Insid e th e bo x wer e nin e 11-ounc e tube s o f

Blac k La p sealan t

insid e aclear

plasti c bag . Th e mbe s ha dbee n labele db y thei r manufacture r

withawarnin g t o th e effec t tha t th e sealan t

an dit s vapo r

wer e bothflammable . Th e bo x itsel f bor e a labe l indicatin g i t

ha dbee n shippe db y th e Responden t t o aMole-Maste r branc hoffic e locate di n Mosco w Mills , Missotir i withinstruction s t o conve y i t b y "Next-Da y Air.' * Document s furnishe dby UP S indicate dtha t th e bo x ha dtravele db y groun dtransportatio n fro mth e Mole-Ma-ster facility i n Marietta , Ohi o t o th e UP S sortin g statio n i n Louisville . Ther e wer e n o hazardou s material s marking s o r label s o n th e packag e an dn o shipper' s declaratio n o r othe r hazardou s materia l documentatio n accompanyin g th e shipment . Emergenc y respons e informatio n wa s als o absent . Se e Exh . C-2 . Ms . Farri s too k photograph s o f

th e packag e an dit s contents . The y ar e i n th e recor da s Exh . C-3 , A Materia l Safety Dat aShee t (MSDS ) fo r

th e La p Sealan t

wa s obtaine dfi-omUPS , A n identica l MSD S a s late r provide db y th e Responden t an dsen t t o th e FAA . Th e MSD S indicate s tha t th e materia l i s hazardou s bothi n contac t withhuma n ski n o r

eye s o r a s inhale do r

ingeste dan dbecaus e i t

i s extremel y flammable. Th e MSD S als o state s tha t th e U.S . Departmen t

o f Transportatio n ha s place dth e materia l i n

' UPS , a s a

n ai r carrier , i s require dt o mak e suchreports under

di e Federa

l Avidtion Kcgulalion.-! . Se e 49 C-K.R. § 175J1 , .See.al3fi.CaiyRiitner , FAA Orde r No . 2009-2 , Dockei>Jo.CP0GEA000 9 a t 4 (Jan . 12 , 2009) .06/24/201 0 09:4 7 FA X 202493514 2 FA A ^^' ^ " DM S @l022/02 8



### hazar dclas s 3 , packin g grou p I I an drequire s are dcautio n "flarrunable " labe l o n shipment s o f

thi s substance . Se e Exh . C-5 . Specia l Agen t Farri s testifie d—base do n he r

seve n year s o f

experienc e withUP S prio r t o he r employmen t

wit hth e FA A - tha t

i f th e shippe r

ha didentifie dth e content s a s aflammable hazardou s material , UP S woul dhav e take n specia l steps , suc h a s loadin g i t

i n asegregate dmanner , t o ensur e i t woul db e safel y transported . However , UP S ha dn o ide ath e content s wer e hazardou s becaus e Mole-Maste r

di dno t provid e tha t

information . Ms . Farri s identifie dth e Respondent' s answe r t o th e Lette r

o f Investigatio n on e o f

he r colleague s ha dsen t

t o th e Responden t

(Exh , C- l 0) , I n tha t response , th e Responden t sai dtha t i t ha d"take n th e necessar y action s t o se e tliat

thi s wil l no t

happe n again . Pleas e accep t ou r apologie s for

any inconvenienc e thi s ma y hav e caused. " I dfh c lette r als o addresse dth e safety trainin g tha t

ha dbee n provide dt o Mole-Maste r employees , trainin g tha t Agen t Farri s testifie ddi dno t

mee t DO T requirements . Ms , Farri s sponsore dacop y o f Appendi x C t o th e FAA' s Orde r No . 2150.3 B (Exh . C-7) . Thi s documen t provide s guidanc e o n ho w civi l penaltie s shoul db e develope di n case s o f violation s o f

th e HMR , Accordin g t o Ms , FairiS

j thes e violation s fell unde r ite mI T o n th e matri x (Figur e C- l at p . C-l2 ) a s a n "Undeclare dShipmen t Withi n Hazma t

Quantit y Limitations. " Ther e were , sh e said , si x categorie s o f violation s committe db y th e Respondent : (t ) shippin g papers ; (2 ) labels ; (3 ) markings ; (4 ) packaging ; (5 ) training ; an d(6 ) emergenc y respons e information . Th e violations , sh e said , fell int o th e "moderate " range , Le^ , aCategor y B material , prepare db y an allege dviolato r

withn o histor y o f

prio r violations . A s o f

th e dat e o f

Ms . Farris ' repor t

t o he r mai n offic e i n Atlanta , Mole-Maste r ha dno t institute da satisfactor y progra mt o trai n it s employee s i n th e prope r handlin g o f hazardou s material s intende dfor transportation . Usin g th e Figur e C

- \ matri x i n Orde r

No . 2150.3B , Specia l Agen t Farri s categofize dMole-Maste r a s abusines s entity tha t

di dno t us e o r handl e hazardou s material s i n th e cours e o f it s busines s (Colum n B ) ^ an dthereb y derive dapenalt y rang e o f $1,50 0 - $8,20 0 for

eac ho f th e si x categorie s o f

violations , Accordin g t o he r testimony , sh e determine dtha t i n ligh t o f th e "moderate " characte r o f th e violations , th e applicabl e penalt y shoul dres t i n th e middl e o f

tha t range , ie ^ S4,85 0 pe r

violation . Fo r

si x violations , th e tota l penall y woul damoun t t o $29,100 , afigure which , i t appeared , th e FA A "rounded " u p t o $30,00Q ,

' Thi s finding wai

s base do n Respondent' s reply t o the Lette r o f fnvesugatioti .06/24/201 0 09:4 7 FAX 202493514 2 FA A * DM S g|023/02 8



### Th e sol e witnes s fo r

Mole-Maste r

wa s Davi dLang , it s Genera l Manager . Accordin g t o hi s testimony , th e Responden t ha s 35-4 0 employees , man y o f who mar e o n th e roa dservicin g jo b sites , an di t ha dabou t

th e sam e numbe r whe n th e inciden t

i n questio n too k

place . Responden t

ha d approximatel y $ 4 millio n i n amiual sale s at tha t time ; it s profi t

margi n wa s i n th e rang e o f

si x t o eigh t

percen t befor e taxes , Mr . Lan g said . Mr . Lan g testifie dtha t

th e Responden t

generall y doe s no t

us e th e Blac k La p Sealan t

i n it s work . Instead , whe n sealan t i s required , th e compan y use s asilicon-base dsubstanc e tha t i s no t classifie da s ahazardou s material . I n thi s instance , however , th e Respondent' s fieldoffic e i n Missour i wa s installin g asil o roo f openin g an dneede daweather-proo f sealant . A neighborin g compan y i n th e same buildin g wher e Mole-Maste r wa s headquartere dsuggeste dtha t Blac k La p wa s th e produc t

neede dan d sol dth e nin e tube s o f

Blac k La p t o th e Respondent . On e o f th e Respondent' s employees , aslio p technicia n an dmachinis t name dJami e Francis , place dth e tube s o f Blac k La p int o abo x o f

non-hazardou s component s bein g sen t

t o th e Missour i office . Mr . Lan g professe dignoranc e a s t o whethe r

th e packag e or

it s content s ever

reache dthei r

intende d destination . Mr . Francis , sai dwitnes s Lang , di dno t kno w tha t

th e adhesiv e wa s classifie da s ahazardou s material ; i l can b e purchase da t any hardwar e store , h e noted , an dhenc e th e violation s wer e no t committe d"knowingly, " Th e compan y ha dneve r

previousl y bee n accuse do f violatin g aDepartmen t o f Transportatio n regulation , Mr . Lan g testified , an dit s truckin g fleet ha d bee n rate d"Satisfactory " b y th e Department' s Federa l Moto r Carrie r Safet y Administration . Mr . Lan g testifie dtha t

i n 2008 , th e Responden t contracte dfor , an d held , atwo-da y trainin g session , led . b y an outsid e consultant , i n complitinc e wit hth e HMR . Al l headquarter s sho p an doffic e employee s wer e require d t o tak e th e trainin g program , whic hwa s hel di n Septembe r 2008 . Certificate s o f

trainin g wer e issued , althoug hnon e wa s presente dfor th e record . No r

wa s acop y o f

th e cours e curriculu moffere da s an exhibit . Accordin g t o Mr . Lang , th e compan y ha s no w hire do r designate dasafet

y manager . A Mr . Smithburge r ha s bee n give n responsibilit y fo r complianc e withDO T regulations . A ne w employe e withmilitar y experienc e i n handlin g hazardou s material s ha s been hired .06/24/201 0 09:4 7 FA X 202493514 2 FA A i QM S il024/02 8



### A t th e outset , i t

seem s apparen t

tha t th e Complainan t

ha s sustaine dit s burde n o f provin g tha t

th e Responden t

committe dviolation s o f th e HM R tha t rende r Mole-Maste r

liabl e fo r acivi l penalty . Th e fac t tha t Ms , Farri s di dno t personall y se e th e packag e tendere dt o UP S o r inspec t i t whe n i t v/a s first opene ddoe s no t

detrac t fi-omth e weigh t

o f th e unconteste dfact s a s t o whic hsh e wa s acompeten t witness . Th e packag e i n questio n bor e th e Respondent' s fingerprints i n ampl e measure , I t carrie dalabe l indicatin g tha t i t ha dbee n tendere db y Mole-Maste r t o UPS , an ai r

carrier , for transportatio n b y "Next-Da y Air. " Ther e i s n o evidenc e tha t th e content s o f th e packag e ha dbee n tampere dwit hb y UP S o r

anyon e else . Th e Responden t

i n it s respons e t o th e LO I di dno t den y tha t it s employee s ha d place dnin e tube s o f

ahazardou s materia l i n th e bo x fo r transportatio n b y ai r withou t markin g o r

labelin g th e bo x o r

it s accompanyin g shippin g paper s to alert UP S an dit s employee s (includin g thos e wh o wer e t o loa dan dfly th e aircraft ) t o th e fac t

that hazardou s material s originatm g wit hMole-Maste r wer e t o b e place daboar dan dflown i n an aircraf l i n domesti c ai r

commerce . Th e Responden t

i s acorporation . Consequently , i t ca n ac t onl y throug hit s officer s an demployees . Thei r transgression s must , therefore , b e attribute d t o th e company . Se e Westai r Commute r

Airlines , Inc. . FA A Orde r No . 93

- 1 8 at 2 (Jun e 9 , 1993) ; USAir . Inc. , FA A Orde r No . 92-4 8 (Jul y 22 , 1992) . Th e fac t tha t th e shipmen t

travele db y groun dt o th e sortin g facilit) ^ an dwa s neve r

loade dont o an aircraf

t i s iirelevant . Th e Respondent' s ac t o f offerin g for

transportatio n in commerc e i s sufficien t t o requir e Molc-Ma^itei

t o compl y wit hth e HMR

- Se e N LIndustrie s v . Departmen t o f Transportation , 90 1 F.2 d14 1 (D.C . Cir . 1990) ; 4 9 C.F.R , § I71,2(b) . I t i s well-settle dtha t

th e sciente r

neede dt o prov e aviolatio n o f th e HM Rconsist s merel y o f

knowledg e o f

th e characte r

o f th e substanc e tha t

i s bein g tendere dfo r

transportafion . Se e 4 9 U.S.C . § 5123(a)(1) . Se e als o Unite dState s v . Int' l Mineral s & Chem. . 40 2 U.S . 558 , 564-6 5 (1971) . Knowledg e o f

th e fac t tliat tli e substanc e i s classifie da s ahazardou s materia l nee dno t b e establishe dan dis , indeed , irrelevant . Aer o Continent s S.A. , FA A Orde r

No . 2003- 8 a t

1 4 n.2 2 (Sept . 12 , 2003) ; Scott H . Smalling . FA A Orde r No . 1994-3 1 at

6- 7 (Oct . 5 , 1994) ; TCljCorp. , FA A Orde r No . 1992

- 7 7 at 8 (Dec . 22 , 1992 ) (notin g tha t th e administrativ e la w judg e ha s "conclude dtha t

Responden t

knowingl y violate dth e allege dsection s o f tli e HM Rbecaus e Responden t kne w tha t

PA P wa s aflammable Hquid) . Mr . Franci s kne w wha t

h e wa s puttin g int o th e bo x for shipmen t

t o th e06/24/201 0 09:4 7 FA X 202493514 2 FA A+ DM S 2)025/02 8



### company' s fieldoffice . S o fa r a s th e evidenc e shows , h e wa s no t unde r th e illusio n tha t

h e wa s shippin g somethin g othe r tha n Blac k

La p Sealant . S o I findtha t

th e Responden t

committe dth e violation s withwhic hi t wa s charge di n th e FAA' s complaint, ^ di d.';o knowingl y an di s liabl e fo r a civi l penalt y unde r

4 9 U.S.C . § 5123(a) . Tlii s bring s u s t o th e questio n o f th e amoun t

o f th e civ U penalt y for whic hth e Responden t

shoul db e hel dliable . I findthat Specia l Agen t

Farri s accuratel y applie dth e rule s i n FA A Orde r No , 2150.3B , Appendi x C t o calculat e th e appropriat e civi l penalt y for Mole-Master' s violation s o f th e HM Ra t th e tim e sh e mad e he r

recommendatio n t o th e agency' s Atlant a office . Th e upwar d"rounding " adjustmen t tha t apparentl y too k

plac e after he r repor t wa s rendere di s disapproved , however , o n th e groun dtha t i t wa s baseles s s o fa

r a s thi s recor dshows , liti s leave s u s wit hatentativ e figure o f $29,100 . Orde r

No . 2150-3 B doe s allo w adjustmen t o f tha t amoun t t o tak e accoun t o f specifie dmatter s i n mitigation , See , e.g. . Orde r No . 2150,3B , para , 3. c a t

p , B- 2 ("Not e tha t

th e middl e o f

eac hrecommende dsanctio n rang e woul db e fo r

asingl e violatio n withou t aggravatin g o r

mitigatin g factors." ) Som e o f

thes e factor s hav e bee n cite db y th e Responden t durin g it s counsel' s openin g an dclosin g arguments . A s w e hav e seen , however , th e Responden t

ha s place do n th e recor dlittl e o r n o "hard " evidenc e t o suppor t it s positio n an dupo n whic hon e coul drel y t o reduc e th e penalt y i n any significan t

way . Argument s o f

counse l ar c no t

evidence . Se e Delawar e Skvwavs . LLC . FA A Orde r No . 2005- 6 at

6 (Mar . 18,2005) ; Watt s Agric . Aviation , Inc. , FA A Orde r No . 1991- 8 at

13-1 4 (Apr . 11 , 1991) , pet , for revie w denie d97 7 F.2 d59 4 (9 * Cir . 1992) . Th e statute , 4 9 U.S.C . § 5123(c) , provide s tha t th e FA A mus t

conside r th e Respondent' s ability t o remai n i n busines s and , wha t may amotin t

t o th e sam e thing , tli e Respondent' s ability t o pay th e penalt y tlia t otherwis e woul d b e merited . Bu t

before th e Administrato r can conside r

thes e factors , someon e mus t

suppl y th e evidenc e upo n whic hsuc hconsideratio n woul db e based . I t i s well-establishe dthat

th e burde n o f

comin g forwar dwit hsuc h evidenc e rest s upo n th e Respondent . Se c 1 4 C.F.R . § 13.224(c) . I t i s equall y well-establishe dtha t t o b e successfu l th e Responden t canno t res t

^ Except fo r th e allegatio n that

the adhesiv e leake dwhil e i n transit . Counsel fo

r the FA A made a n ora l molion a t th e hearin g to strik

e the aliegatjon o f

leakag e fromth e complaint , I gitmtedtli e motion , Ms . Farri s teatifie dtha

t Icukag e o f th e commodit

y int o th e environment

wa s not afacto r i n urriving a

l th e FAA' s clai mfo

r aS30,00 0 civj ] penalt

y

kir n06/24/201 0 09:4 7 FAX 202493514 2 FA A* DM S 2)026/02 9



### Upo n mer e generalization s o f th e typ e tha t

forme dmuc ho f

Mr . Lang' s testimony . Instead , th e Responden t mus t com e forwar dwithaudite d financial statement s an dothe r dat ashowin g it s financial positio n i n detail . Mole-Maste r

di dnon e o f

this . I t contente ditsel f

wit hsimpl y th e genera l argumen t tha t i t wa s asmal l busines s and , hence , shoul dqualif y fo r specia l treatment . Tha t

i s no t sufficient . A s Orde r

No . 2150.3 B plainl y states , "[i]h e FA A doe s no t

reduc e o r

waiv e th e penalt y o f

a n allege dviolato r solel y becaus e i l i s asmal l busines s entity. " Id ^ at App . C , para . 5c . I t i s als o importan t

t o bea r i n min dtha t

violation s o f

th e HM Rfal l int o aspecia l category . Majo r catastrophe s an dsignifican t los s o f lif e may occu r becaus e seemingl y iimocuou s househol ditem s ar e place di n th e strea mo f ai r commerc e withou t

adequat e warnin g t o th e carrier , it s employee s o r emergenc y rescu e persormel . A s th e Administrato r ha s said , "hidde n shipment s pos e aspecia l danger. " Envirosolvc , Inc. , FA A Orde r No , 2006- 2 (Februar y 7 , 2006 ) at

14 . Undeclare dshipments , suc ha s th e on e unde r consideratio n here , ar e especiall y dangerous . Se e Seven' s Pain t an d Wallpape r

Co. , FA A Orde r

No , 2001- 6 a t

9 (May 16 , 2001) ; Phillip s Buildin g Supplv . FA A Orde r No . 2000-2 0 at

1 1 (Aug . 11 , 2000) ; Tovot a Moto r Sales . USA . Inc. , FA A Orde r No . 1994-2 8 at

1 3 (Sept . 30 , 1994) . Th e garden-variet y adhesiv e containers , nin e o f whic hth e Responden t tendere dt o UPS , containe daflammable substanc e tha t woul dhav e bee n transforme dint o apowerfu l acceleran t i f afire ha dbroke n ou t

i n th e carg o compartmen t

o f th e aircraft , Th e FAA' s missio n i s t o ensur e tha t suc h mishap s d o no t

occu r and , i f b y mischanc e the y do , t o reduc e th e threa t t o lif e an dlimb t o aminimum . I n thi s context , onl y on e matte r turn s i n Mole-Master' s favor . Tha t i s it s investmen t

i n bette r trainin g i n hazardou s material s transportatio n fo r it s headquarter s shop , managemen t an dclerica l personnel . Ther e i s ampl e preceden t fo r reducin g th e amoun t

o f acivi l penalt y t o reflec t

th e allege d violator' s investmen t

i n bette r trainin g fo r

it s employee s wh o ma y nee dt o handl e hazardou s material s i n th e cours e o f thei r duties . Se e Interstat e Chemica l Co. . FA A Orde r No . 2002-2 9 a

t 1 8 (Dec . 6 , 2002) ; Tovot aMoto r Sales . FA A Orde r

No . 1994-2 8 at

10-11 ; TC I Corp , FA A Orde r No , 1992-7 7 at 21-22. . I n hi s closin g argument , th e FAA' s attorne y indicate dthat , i n hi s view , Mole-Maste r

mad e it s investmen t

i n trainin g rathe r

lat e i n th e da y - i n Septembe r

2008 , ayea r

an dseve n month s after

th e violation s too k

place . I t i s als o tru e tha t

Mr . Lang' s rathe r

sketch y descriptio n o f

th e trainin g effor

t06/24/201 0 09:4 8 FA X 202493514 2 FA A^ DM S @|027/02 8



### lef t agrea t dea l o f doub t abou t ho w thoroug hi t

was , wha t

subjects wer e taugh t an dwha t wer e th e qualification s o f thos e wh o taugh t

th e course . Al l o f thi s i s relevant , o f

course , bu t

th e fac t remain s tha t

th e Responden t

di dmak e th e effor

t t o remed y th e fundamenta l caus e o f th e violations : ignoranc e an dcarelessnes s o n th e par t o f thos e employee s responsibl e for

shippin g material s vi aan air carrier . Takin g thi s facto r int o account , I hav e conclude dtha t areductio n i n th e penalt y fi-om$29,10 0 t o $25,00 0 i s calle dfor . I n consideratio n o f

th e foregoing , I T I S ORDERED , subjec t t o appeal t o th e Administrato r

a ^ provide din sectio n 13.23 3 o f th e Rule s o f

Practic e an dProcedure , 1 4 C.F.R , § 13.233 , that

1 . Responden t

Mole-Maste r

Service s Corporatio n i s liabl e t o th e Unite dState s o f

Americ aa s represente db y th e Federa l Aviatio n Administratio n fo r acivi l penalt y i n th e amotin t o f twenty-fiv e thousan ddollar s ($25,000.00) ; an d 2

- Responden t

Mole-Maste r

Service s Corporatio n shal l pa y th e amotm t o f th e civil , penalt y fo

r whic hi t ha s bee n hel dliabl e herei n t o th e Federa l Aviatio n Administratio n forthwith .



# i^^Ui ^ Isaa c D . Benki n Administrativ e La w Judg e Attachment-Servic e Lis t (Note : Thi s decisio

n ma y b e appeale dt

o the Administnito r

o f th e FAA . Th e Noitic

c o f Appea l mas t b e file dao f later than 1 0 day s afte

r servic e o f thi s decision . The appea l mus t b e perfectedwit

hawritte n brief

o r memorandumno t

late r than 50 day s afte r servic e o f thi s decision . Th e Notice o f Appea l andbrief o r memorandu

m mas t either be mailedto th e Federa

l Aviation Administration , Wilbur Wright Building , 80

0 Independenc e Avenue , S.W. , Washington , D.C . 20591 , Attention ; Hearin g Docke

t Cler k or deliveredpersonally or

vi aexpeditedcourier

servic e t o the Federa l Aviatio n Administration , 60

0 Independenc e Ave. , S.W . Washington ^ D.C . 20591 , Attention : Hearin g Docke t Clerk , AGC-430 . A cop

y o f th e Notic e o

f Appea l06/24/201 0 09:4 8 FA X 202493514 2 FA A+ DM S 0028/02 8



### an dbrie f o r memorandu mshoul dals o b e sen t to counse l fo r

th e FAA i n thi s proceeding. ]