02/22/201 1 10:2 4 FAX 202493514 2 FA A 02/22/201 1 10:2 3 FAX 202493514 2 FA A ^CD . lO./Ul l ll:44A M KhGULATOR Y AFFAIITT " + DM S + DM S MC . 91 5 01002/01 5

giooi/oi s P . 2/1 6



### UNITE D STATES O FAMERICA DEPARTMEN

T O FTRANSPORTATION OFHC E O FHEARINGS WASHINGTON , D.C . I n th e Matte r

of : Federa l Expres s Corporatio n Responden t FA A Docke t No . CP09NM001 0 FA A Cas e No . 2007NM70015 6 ' J > ••Z J '-• J

_ o - -j - ^ —

O' J



### Th e Honorabl e Richar dC . GoodTri n

POST-HEARIN G BRIE FO FRESPONDEN T A t th e conclusio n o f

th e Octobe r

25 , 201 0 hearin g i n thi s matter , th e Honorabl e Judg e provide dth e partie s th e opportunity t o fil e brief s o n th e issues . Pursuan t

t o Sectio n 13.231(c ) o f

th e Rule s o f

Practic e i n FA ACivi l Penalty Action s (1 4 C.F.R . §13-231(c)) . Respondent , b y an dthroug hundersigne dcounsel * hereb y file s thi s Post-Hearin g Brief . L INTRODUCTIO N Thi s cas e aros e ou t

o f a n inspectio n b y tw o Federa l Aviatio n Administratio n ("FAA" ) agents o n or

abou t Augus t 21,200 7 a t

th e Medford , Orego n facilit y operate db y Respondent , Federal Expres s Corporatio n d/b/ aFedE x Expres s (hereinafter referre dt o a s "FedE x Express") . Durin g th e cours e o f th e FAA' S 

### inapcction

j th e agent s observe dan d gathere dinformatio n conceimutt g tw o shipment s tendere dt o an dtransporte db y FedE x Express , whic hthe y believe ddi dno t compl y withth e regulatory requirement s for suc h goods . A Lette r

o f Investigatio n wa s issue db y th e FA A an danswere db y FedE x Express . A Notic e o f

Propose dCivi l Penalt y wa s issue dan dultimatel y aComplain t wa s filedb y02/22/201 1 10:2 4 FA X 202493514 2 FA A- D« S @]003/0l 5 rcD . to.^ui l il'.^^A M KtfiULAIUK YAFFAIR S !*J0 . 91 5 P , 4/" 6 responsibility dependin g primaril y o n th e shippe r advisin g A c carrie r

o f th e presenc e o f hazardou s material s /

dangerou s goods . (Tr . a i 151 , line s 15-20. ) Durin g th e testimon y o f

FA A Special Agen t

Donal dStiger , h e testifie dthat th e FedE x Expres s trackin g documentatio n containe di n Exhibi t C- 2 indicate dho w man y time s apackag e wa s physicall y scanne db y FedE x Expres s personnel . (Tr . at 38-42, ) However , o n cros s examinatiorL , Agen t Stigex admitte dtha t

h e di dno t

kno w whethe r every entry o n th e tracjdn g documentatio n containe di n Exhibi t C- 2 represente dphysica l o r machin e scans . (Tr . a

t 75-76. ) In fact , automatio n play s alarg e rol e i n FedE x Expres s operations . CSe

e generally . Tr . at

122-126. ) Agen t

Stige r als o testifie dthat , despit e indicatin g i n hi s agen t

statemen t

tha t eac hpackag e ha dth e ORM- D markiTL g o n boi h side s o f th e respectiv e boxes , h e di dno t hav e photographi c evidenc e t o support that . (Exhibit s C- 1 an dC-3 ; Tr . a t 78 » lin e 4 —Tr . a

t 79 , line s 1-7. ) FedE x Eicpres s Corporat e Safet y Adviso r

Davi dLittlejoh n testifie dtha t th e ORM- D mark

onl y nee dappear

o n a singl e sid e o f

th e package . (Tr . a

t 145 , line s 15-21. ) Thi s i s consisten t wit h4 9 C.F.R . 1172.316(a) . Agen t Stige r fiaiher testifie dtha t

h e believe dtha t

th e classificatio n o f

th e ite m wa s ethanol/alcoho l solutions , U N 1170 , hazar dclas s 3 , Packin g Grou p III . (Se e generally . Tr , at

3 4 an d53, ) H e testifie dthat , for sanctio n determinin g purposes , h e believe dtha t

th e ita mshippe dwa s i n Category B an dno t Category C . (Tr . at

87 , line s 20—Tr . a t

88 , line s 1-12. ) Testimon y wa s als o provide dconoemin g th e histor y o f ORM- D a s ahazar dclas s (Tr . a t 14^) , th e recognitio n proble mexperience db y carrier s (Tr . at 148 , line s 1 9 —Tr ,02/22/201 1 10:2 4 FA X 202493514 2 FAA+ DM S lg]004/01 5

i-tb . IB . ^Ul l 11:44A M REGULATOR YAFFAIR S N0.91 5 P , 5/1 5

a t 149 , line s 1-9) , an dth e acknowledgemen t o f th e proble mb y U.S . govermnen t an d internationa l association s a s well , (TV . at 152-154. ) m . ARGUMEN T A . Th e ORM- D mar

k o n th e tw o shipment s a

t issu e wa ^ no t sufficient indicatio n t o provid e th e rcq»fgit

e knowledg e tha t

th e shipment s cpntaim- ^ Tiazardou s material s /

dangerou s goods . FedE x Expres s doe s no t

deny tha t i t transporte dth e shipment s at issu e i n this proceeding. ^ However , di e applicabl e regulation s an dFedE x Expres s policie s establis h asyste mb y whic hshipper s o f hazardou s material s /

dangerou s good s ar e t o communicat e th e presenc e o f

thos e material s i n apackage . 4 9 C.F.R . §173.22 . Here , specifically , th e shipper di dno t provid e an y shippin g paper s o r an y verbal notificatio n tha t eithe r shipmen t containe dhazardou s material s / dangerou s goods . Thi s misrepresenutio n pu t FedE x Expres s a t

adisadvantag e i n havin g t o discove r tha t th e shippe r

provide dfals e infomution . Sinc e th e shippin g label s affixe dt o th e shipment s were applie db y th e shippe r an d loade dint o th e fi^ighi containe r b y th e shipper , th e opportunitie s for FedE x Expres s t o hav e see n th e insufficieat markin g o f

ORM- D durin g processin g operation s wer e limited . Thi s i s especiall y salien t

give n tha t

ther e wa s n o paperwork o r notificatio n provide db y th e shippe r

abou t th e shipment s containin g hazardou s material s / dangerou s goods . Additionally , th e shipper^ s pas t practic e o f

neve r offerin g hazardou s materials / dangerou s good s shipment s for

ai r transportatio n amplifie dth e potentia l for th e shipper' s misrepre s entation .

^ I t i s importan

t t o clarif y wlia t i s provide di ntlt e Procedura

l Sununar y o f ih e FAA's . brie

f regardin g wha t FedExBTpressadmitcc

di nits AJUWCT

. (CompUioam'sBrie

f atp . l.)IaSectionIK4H^)o f it s Answer , FedE x Eicpres s adminc donl y tha t i t naxispoite dth e shipment s & t issue . I nSectio n V o f it s Answer , JedB x Expres s deoie

dan y allegatio n no t specificall y addressed.02/22/201 1 10:2 4 FAX 202493514 2 FA A+ DM S (21005/01 5 ^hb . lb.;/Ul l n:4bA M REGULATOR YAFFAIR S NO . 91 5 » . 6/1 J

"V^it hregar dt o th e Consume r Commodity ^ /

ORM- D mac

k itselt ; th e mark

i s no t require dt o appea

r i n aparticular

locatio n o n a

. package , no r

i s i t require dt o b e o f

a specifi c siz e o r

color . 4 9 C.F.R . §172.316 . Th e onl y referenc e t o dimension s i s tha t th e rectangular

borde r sutroundm g th e ORM- D mark mus t b e Vi " fromth e lettei-s , bu t nothin g prescribe s th e siz e o f th e letters . Althoug hFA A Agen t Stige r sai dth e ORM- D mar k wa s o n tw o side s o f

bot hpackages , n o regulatio n require s dua l marking . Further * th e FA A offere dn o photographi c evidenc e confirmin g tha t th e mark

appeare do n tw o side s o f th e shipment s at

i issue . (Exhibit s C- 1 an dC-3 ; Tr . a t 78 » lin e 4 —Tr . at

79 , line s 1-7. ) Base do n th e evidence , on e ca n onl y conclud e tha t th e mar k

wa s i n onl y on e location , B . Th e ORM- D mark

ha s bee n confusin g for

years . an 4 th e U.S . throug hth e Unite dNatinn g ha e ^limttnae dthat confusio n throug hrulemaking . Al l regulatory code s basedupo n th e Unite dNation s CUN" ) Mode l Regulation s o n th e Transport

o f Dangerou s Goods , includin g th e Internationa l Civi l Aviatio n Organizatio n ("ICAO*' ) Technical Instructions , utiliz e a10 0 m mx 100 mmcolore d diamond , bearin g asymbo l o f th e hazar dan dth e numbe r o f th e U N classification , t o communicat e th e presenc e o f hazardou s material . (Unite dNation s Mode l Regulation s o n th e Transport

o f Dangerou s Goods , 5.2.2 ; Internationa l Maritim e Dangerou s Good s CodC : 5.2.2.2.2 ; ICA O Technica l Listructions , Chapte r 3 , sectio n 3.5.1.1 : Transport Canad aTransport

o f Dangerou s Good s Regulations , 4, 6 an d4.7.) * Th e ORM- D mark

i s uniqu e t o th e Unite dStates , It wa s no t i n th e ICA O Technical Instructions , whic hinclud e th e shippin g descriptio n "Consume r commodity .

^ Consume r cosiaoditle s ar

e materials abl

e t o b e classifie da s suitabl e fo r retai l sal e fo r persona l an d househol dus e purposes , 0C A O Packin g ^istnictio n Y9G3. ) * ImematiQna

l code s ar e adopte db y th e U.S . ifaroug

h4 9 C.F.R . 5171.1 2 an

d§171.23 .02/22/201 1 10:2 4 FA X 202493514 2 FA A+ DM S 0006/01 5 ^tti . ^y.-^t)] ! n;45A M REGULATOR YAFFAIR S NO . 91 5 ? . ?/l 5

I D SOOO* ' bu t requir e adiamond-shape dClas s 9 labe l an dfiil l shippin g document . (ICA O Lis t o f Dangerou s Good s an dPackin g Instructio n Y963. ) B y divergen t

shape , lac k

o f prescribe dcolor , an dlac k o f prescribe dsiz e o r location , th e ORM- D mark i s unique . A uniqu e provisio n i s particTJlarl y difficul t t o teac h t o thousand s o f

personne l handlin g packages i n international ai r commerc e wh o otherwis e ar e tol dtha t

adiamon di s th e primar y signal b y whic ht o designat e ahazardou s materia l / dangerou s goods , (Tr , a

t 128 , lin e 2 1 —

Tr . at 129 , line s 1-9) . Th e Unite dState s delegat e t o th e U N chaire dth e U N Committe e o f Expert s whe n thi s subjec t

o f non-harmonize dmaridn g o f smal l package dproduct s wa s raised , (Uscussed i n several meetings , an dultimatel y resolve di n a n effor t t o chang e t o amor e effective , coherent , an dharmonize dstandar dhazardou s material s mark . Tha t resolution , adopte d b y th e U N i n Decembe r

200S , call s for

a100 mmx 100 m

mdiamon dmark , an dtha t mark i s no w i n effec t

i n al l mode s o f

internationa l commerc e (ICA O Technica l InstTOCtions , Chapte r

4 . sectio n 4.5 ; Internationa l Maritim e Dangerou s Good e Code , 3.4.5 ; Europea n Agreemen t Concernin g th e Intemanona l Carriag e o f Dangerou s Good s b y Roa d(ADR ) 3.4, 7 an d3.4.8.0. ) I t ha s bee n implemente di n final formb y th e Unite d Stale s throug hrulemakin g Docke t No . PHMS A 2009-012 6 CHM-215K) . 7 6 Fed . Reg . 330 8 (January 19,2011) . Th e ineffectivenes s o f

th e ORM- D communicatio n wa s recognize db y FedE x Expres s prior

t o th e Pipelin e an dHazardou s Material s Safat y Administration' s ("PHMSA" ) rulemakin g activities , (Tr . at 148 , lin e 1 9 —Tr . a

t 149 , line s 1-9. ) FedE x Expres s formall y petitione dPHMS At o eliminat e this markin g an dt o revis e consume r commodity requirement s t o addres s th e inconsisten t requirement s for

groun dan dai r02/22/201 1 10:2 4 FA X 202493514 2 FA A^ DMS @|007/01 5 r:o . 10./ui i ii:4DM M Kttj"ULAlO,'{ YAl-FAIR S ^ NO . 91 5 P . 8/1 6 shippin g o f

suc hitem s an dt o b e consastcnt withworldwid e regulations , (Id . an d RespoudenV s Exhibit s A-C. ) Th e PHMS Arespons e t o th e FedE x Expres s petitio n for rulemakin g acknowledge dth e inadequac y o f th e ORM- D mark

a s amean s o f

hazar d communication : "W e agre e tha t increasin g th e visibility o f th e consume r

commodity package s t o enhanc e packag e markin g an dlabelin g woul dmak e the mmor e readil y identifiabl e durin g transportation.' ' (Ti , a t 152 , line s 8-12 ; Respondent' s Exhibi t B. ) F A Aha s characterize dFedE x Express ' regulatory effort s o n ORM-D s a s effort s t o chang e aregulatio n FedE x Expres s opposes , (Complaioant' s Brie f a t p . 12. ) Suc ha characterizatio n misse s th e poin t FedE x Expres s present s suc hinformatio n t o demonstrat e it s activ e regulatory involvemen t regardin g th e ORM- D mar k an dth e recognitio n proble mi t

present s for

carrier s an dshipper s alike . PHMSA' S rulemakin g activitie s o n th e matte r

evidence s th e govenimeni* s acknowledgemen t that aproble m exist s an dregulatoi y actio n i s necessary t o addres s it . FedE x Expres s woul dsubmi t that th e FAA , i n determinin g tha t apenalty wa s require dan di n settin g th e penalty amount , faile dt o giv e adequat e consideratio n t o thi s widely-know n proble mwithanon hflimonize dmark

unde r th e statutory consideration s o f "th e nature , circumstances , extern , an dgravity o f

th e violation " require db y 4 9 U.S.C . §5123(c)

- C . Th e propose dcivi l penalty i s no t appropriat e unde r

Th z facts an d circumstance s o f

this case . Th e propose dcivi l penalty o f S37,50 0 i s excessiv e an dshoul db e substantiall y reduce db y th e COUTL ^ Pursuan t

t o 1 4 C.F.R . §13.224(a) , th e Complainan t mus t sho w tiiat th e propose dcivi l penalt y i s appropriate . I n th e Matte r o f Willia mA . Li^er . Jr. . 201 0 FA A LEXI S 99 , FA A Docke t "No . CP09SW000a , at

*14 . Tli e FA A ha s02/22/201 1 10:2 5 FA X 202493514 2 FAA

.•CD . 10 . zv/ i I I N^DHiv i KtljULAIUK Y AFFAIR S - vDM S NO , 91 5 @1008/01 5

P . 9/) 6 promulgate dguidanc e for proposin g penalties , bu t

'*thi s Guidanc e [sic ] i s no t bindin g o n respondent s o r

administrativ e la w judge s I n settin g penalties. " Id . FedE x Expres s woul dals o poin t ou t tha t Administrativ e La w Judges , unde r th e provision s o f

th e FA ACivi l Penalt y Administrativ e Assessmen t Ac t an dth e provision s o f 1 4 C.F.R , §13.16 , hav e th e statutory an dregulatory authority t o reduc e th e penalty t o a n amoun t

tha t the y dee mjus t

an d^propriate : Unles s a n appea l i s filedwithth e FA A decisionmake r i n atimel y manner , a n initia l decisio n o r

order o f a n adminiartrativ e la w judg e shal l b e considere da n orde r

assessin g civi l penalt y i f a n a<iministrativ e la w Judg e finds tha i a n allege dviolatio n occurred , an ddetermm s thc aacivi l penalty , i n a n amoun t

foun dappropriat e b

y th e administrativ e law Judge , i s warrante d(Emphasi s added. ) 1 4 C.F. R§13.16(d)(3) . Th e clear an dtmambiguou s ]ai^:uag e o f tha t regulatio n indicate s tha t

th e Administrativ e La w Judg e no t

onl y ha s th e authority an dobligatio n t o determin e whethe r aregulatory violatio n ha s occurred , bu t i s als o taske dwithdecidin g whethe r acivi l penalty i s warrante dat

all , an di f

so , for what amoun t FedE x Expres s acknowledge s tha t a reasonabl e amoun t

o f deferenc e i s t o b e afforde dt o th e FAA' s enforcemen t mechaiusms , includin g th e Administrator' s Sanctio n Guidance , bu t contend s tha t

suc hdeferenc e doe s no t equat e t o a"rubbe r

stamp. " FedE x Expres s disagree s withth e FAA' s categorizatio n o f th e item s containe di n th e tw o shipment s a

t issu e her e a s Ris k

Category B , (Tr . a

t 62-63. ) Th e Administrator' s Sanctio n Guidanc e whe n adopte dan dwhe n incorporate db y th e FA A appropriatel y assign s th e highes t

penalty assessment s t o tibe mos t hazardou s material s suc ha s

^ FedE x Expres s doe

s no t contend , fo r ch e purpose s o f thi s argument

, tha t i t lack s th e abilit y t o pa y th e civi l peniUr y o r tha t th e penalt y woul dat&c t it s abilit y t o cootinu e i nbusm«sj .02/22/201 1 10:2 5 FA X 202493514 2 FAA^ QM S 0009/01 5 rtD . 10./U N WAo mHtiiULA.10 n AFFAIR S MO , 91 5 P

, 10/1 6 explosive s an dtoxi c inhalatio n hazards . (Exhibi t C-10. ) I t i s adeclinin g scale , however , wher e lli e lowe r

th e hazard , th e les s th e figure t o b e applie di n utilizin g th e matrix

Th e lowes t

category reference s ORM- D materials . (Exhibi t C-10. ) Consumer commodity , ORM-D , i s no t subjec t t o an y regulation s in . th e rail , highway , o r wate r mode s o f transpoTtatio n unde r

4 9 C.F.R . (Tr . a

t 137 , line s 13-19. ) Th e Sanctio n Gmdanc e doe s no t

sa y "ORM-D-AlR " meanin g thos e material s properl y prepare dfor ai r transport . Instead , th e Guidanc e describe s thos e material s for whic hth e ORM- D optio n woul db e available . Th e Sanctio n Giudanc e als o doe s no t say tha t material s mus t

hav e bee n package d for ai r transport o r declare da s ORM-D . Here , th e shipment s offere db y AstraZenec a wer p marke dORM-p . (Tr . at 78 , line s 8-16. ) Ti e sliipment s coniainc dhan dsanitizer . (Tr . a t 32 , line s 13-16. ) I n 4 9 C.F.R

- §172.101 , this material , a n alcoho l mixtur e tha t migh t hav e bee n initiall y describe da s "U N 1170 , Ethy l alcoho l solutions , 3 , P GUV " i s authorize dfor

transport aboar dpassenge r

aircraf t i n inne r receptacle s havin g acapacity o f 6 0 liteis . I t

i s referre dt o th e limite dquantity relie f describe di n 4 9 C.F.R . §173.150 . Tha t section , i n paragrap h(c ) state s that material s meetin g thes e siz e limits , ma y b e shippe da s consume r

commodities. 4 9 C.F.R . §173,150(o) . Th e positio n take n b y th e FA A i s tha t th e Sanctio n Guidanc e require s amateria l t o mee t ttic requirement s o f

ORM-D-AI Ri n orde r

t o fit th e lowes t

penalty category . Th e Sanctio n Guidanc e doe s no t sa y that , no r

doe s tha t Federa l Re^giste

r pag e o f Docke t No . HM-22 8 cite db y FA A counse l (Tr . a t 166 , lin e 13) . whic hpertaine donl y t o th e impositio n o f

acceptanc e inspectio n ciitcri ao f 4 9 C.F.R . §175.3 0 o n OR M coateriais .r* h + nw s 01O1O/O1 5 02/22/20 n 10-.2 5 FA X 2024935U 2 FA ALJM b ^ m cIK . ^ui i ii:4r)A M Kb(iULATOR YAFFAIR S NO . 91 : P . n/1 5

Furthermore , Th

e Sanctio n Guidance : documen t at pag e C- 8 doc s no t

requir e th e materia l t o hav e bee n properl y prepare dfor ai r shipment . "Tha t

th e materia l coul dhav e bee n shippe da s aconsume r cormaiDdrt

y ca n als o b e amitigatin g fector," (Emphasi s added ; FA A Orde r

2150.3B , Appendi x C at C-8, ) Thi s shipmen t

no t onl y coul dhav e been , bu t wa s shippe da s acoiisume r commodity . Th e fac t

tha t adde dstep s withregar d t o th e packagin g an ddocumentatio n woul dhav e bee n require dt o convert thi s t o a n ORM-D-AI Rshipmen t

i s no t relevan t t o th e fac t

tha t unde r th e DO T regulation s this materia l coul dhav e bee n an dwa s shippe da s ORM-D . Th e FA A mis^plie dth e Sanctio n Guidanc e i n thi s instance , an dmad e amistake whe n calculatin g th e penalt y figure. The y applie dahighe r hazar dcategory tha n describe di n th e matrix , whic hclearl y offer s th e lowes t dollar amoimt for material s that coul dhav e bee n shippe da s ORM- D and , i n fact , were shippe da s ORM- D i n thi s case . B y th e FAA' s designatio n an dth e MSDS for th e han dsanitize r

tha t wa s shipped , th e substanc e contain s ethy l alcohol . (Tr . a t 52 , line s 15-19. ) Elhy l alcoho l i s th e primary hazardou s materia l i n alcoholi c beverages . Exception s fo r Clas s 3 i n 4 9 C.F.R . §173.150(d ) provid e ful l relie f fromal l regulatio n b y passenge r aircraf t whe n alcoholi c beverage s ar e i n checke do r carry-o n baggag e u p t o 5 liters . 4 9 C.F.R . §173.150(d) . Th e han dsaniti2e r

shippe dwa s no t

a n alcoholi c beverage , bu t th e leve l o f

safety i s establishe db y th e 4 9 C.FJ t §173.15 0 for

ethyl alcoho l products . Whil e thi s shipmen t woul dhav e bee n subjec t t o regulation s becatis e i t i s no t potable , tha t

paralle l a s i t establishe s a n acceptabl e leve l o f safety shoul dhav e bee n considere di n th e penalty calculatio n proces s an dshoul dhav e resulte di n apenalt y assessmen t at alowe r level .

1 0+ DM S 0012/01 5 

### rtb.'lV'IuI l "ll:4:)A

MHtdULAiOR V

AFFAIR S NO . 91 5 P . 13/1 6 02/22/201 1 10:2 5 FA X 202493514 2 FA A

Th e FA A als o minimize dth e correctiv e actio n take n b y FedE x Expres s i n connectio n wit

hthi s matter . (Tr . at

5S , line s 7-20 ; Tr . at

82-85. ) Ther e wa s substantial testimon y at

tria l tha t FedE x Expres s take s it s regulatory responsibilitie s very seriousl y an dha s create dahug e infiastructur e t o ensur e tha t it s transportatio n o f

hazardou s material s /

dangerou s good s i s accomplishe dreliabl y an dsafely . JSc c generally

- Tr . a t 104-114. ) FedE x Expres s handle s mor e hazardou s material s / dangerou s good s shipment s pe r day tha n an y carrie r

i n th e world , estimate db y FedE x Expres s Corporat e Safet y Senio r Manage r Patric k Oppenheime r

a s les s tha n 1 percen t

o f th e mor e iha n 3 millio n package s accepte ddaily . (Tr . at 115 , lin e 6. ) "Whe

n a n erro r i s discovere dconcernin g a hazardou s material s /

dangerou s good s shipmen t tha t ha s bee n offere dt o FedE x Express , th e company' s Dangerou s Good s Administratio n teamimmediatel y conduct s a n investigatio n an dwork s wit hmanagemen t o f th e facilit y wher e th e shipmen t

at issu e wa s processe dan dth e shippe r t o addres s th e situation , al l o f whic hwa s don e i n thi s matter . (Tr . a t 144-145 ; Exhibi t

C-9. ) Specificall y i n thi s matter , managemen t wa s notifie dan dth e shippe r wa s contacted , (Tr . a t

144 , line s 1-^ ; Exhibi t

C-9. ) Hazardou s material s / dangerou s good s shipment s fi:omthi s shippe r wer e embargoe dunti l proo f o f hazardou s material s / dangerou s good s trainin g wa s provided . (Tr . a t 144 , Line

s 7-11 ; Exhibi t

C-9. ) Managemeii t

reiterate dcoireo t

policie s an dprocedure s an ddistribute da n ORM- D j o b ai d 1 0 a U employee s a

t thei r facilit y t o hel p avoi dasimila

r occurrence . (Exhibi t

C-9. ) A s afurther

correctiv e step , aprocessin g chang e wa s implemente dwhereb y personne l physicall y sca n al l shippin g label s whe n affixe dt o package s offere db y thi s shipper , (Tr . a t

144 , line s 12-15 ; Exhibi t C-9. ) Thi s practic e wa s institute dt o assis t

1 202/22/201 1 10.2 5 FA X 202493514 2 FA A- DM S (^013/01 5 FEB . 18.201 1 11:45A M REGULATOR YAFFAIR S NO . 91 5 P . 14/1 6 specificall y i n preventin g further occurrence s suc ha s th e on e involve di n th e cas e a t ba r an di s th e typ e o f

systemi c chang e tha t

shoul db e afforde dth e typ e o f "greate r consideration " reference di n th e Administrator' s Sanctio n Guidance . (Se e Exhibi t C-1 0 a t 19447. ) I t shoul dals o b e note dtha t al l th e correctiv e measure s describe dhere wer e take n shorti y after

FedE x Expres s becam e awar e o f th e tw o shipment s at

issu e here , a s oppose d t o bein g take n afte

r th e issuanc e o f

aNotic e o f

Civi l penally. ^ FA A Agen t

Stiger , i n explainin g hi s recommendatio n for apenalt y figure, di dno t credi t an y o f th e FedE x Expres s correctiv e actions . I n hi s vlcrw ^ action s abov e an d beyon dth e regulation s nee dt o hav e bee n take n t o validat e credi t o n apenalt y calculation . (Tr . a i 58 , line s 3-20. ) N o suc hcriterio n appear s i n th e Sanctio n Guidance . Fuithcnnore , a s outline dabove , FedE x Expres s too k severa l action s suc ha s th e embarg o tha t ar e no t require db y an y regulation . FedE x Expres s beUeve s tha t th e Administrativ e La w Judg e ha s ampl e evidenc e i n th e recor dt o orde r

asubstantia l reductio n o f th e civi l penalt y assesse di n this case , give n th e misus e o f

th e Sanctio n Guidanc e b y th e FAA . FedE x Expres s doe s no t deny that

i t ha s a n FA A hazardou s materials/dangerou s good s complianc e history , whic hth e FA A considere da n aggravatin g facto r whe n calculatin g th e $37,50 0 civi l penalty . However , FA A Agen t

Stiger , indicate ddurin g hi s testimon y tiiat h e wa s unawar e o f

th e fac t that FedE x Expres s normall y transport s approximatel y 30,00 0 regulate dhazardou s materials/dangerou s good s shipment s daily . (Tr . a t 90 , line s 18-22 ; Tr . at

91 , line s 1-2 ; Tr . 115 , line s 4-6. ) H e refuse dt o acknowledg e tha t th e opportunity fo r

huma n erro r

coul d b e greate r

fo r acarrie r transportin g suc hahig hnumbe r o f shipment s o n adail y basi s

^ FedE x Express ' Lette

r o f Respons e t o ih t FAA' S Lette

r o f InveadgatiQ D "^va s submitte dO D o r abou t Septwnbe r 6,2007 . CExbJbi

r C-9.) Th e FA AIssa&d . & Notic e o f Propose dCivi l Penalr y o nth e matte r o no r 1 302/22/201 1 10:2 5 FA X 202483514 2 FA A• » DMS 1014/01 5 FEB . 18.201 1 11:46A M REGULATOR YAFFAIR S NO,91 5 P . 15/1 6

•wbcD . compare dt o on e transportin g asubstantiall y lesse r amoun t (Tr . a t 91 , lin e 1 8 — Tr . a t 92 , line s 1-5, ) FedE x Expres s assert s tha t th e extensiv e infi-astructur e tha t i t ha s created , i n th e formo f

trainin g program s an dsystems , t o ensur e th e saf e an dcomplian t transportatio n o f

hazardou s materials/dangerou s goods , i s indicativ e o f apositiv e regulatory attitude , an dno t a**recalcitrant " on e a s characterize db y th e FAA . (Complaiiiant* s Brie f

a t p . 10. ) Thi s shoul db e considere damitigatin g fector i n th e equatio n for

assessin g any penalty .

TV . CONCLUSIO N Respondent , Federa l Expres s Corporatio n d/b/ aFedE x Express , respectfull y request s thai , i n ligh t

o f th e foregoin g discussio n an dargument , th e propose dcivi l penalt y o f $37,50 0 i s excessiv e an dshoul db e substantiall y reduce db y th e Court . Rcspectfiill y submitted , 

### FEDERA L EXPRES S CORPORATION Courtne y E . Felt s Senio r Attorne y - Regulatory Affair s Federal Expres s Corporatio n 362 0 Hack s Cros s Roa d Buildin g 3,3" * Floo r Memphis , TN 3812 5 (901)434-863 2 (901 ) 434-828 3 FA X Lawrenc e W , Bierlei n 110 1 30thStreet , N W Suit e 50 0 Washington , D C 2000 7 (202)625-835 5 (202 ) 625^36 3 FA X abou t Februai y 26,200$ . (Se

e Complaint

, Sectio n Z ; Answer ^ S«ctio n I. ) 1 402/22/201 1 10:2 6 FA X 202493514 2 FA A* DM S 12015/01 5 FEB . 18 , 2C1 1 M:46A WREGULATOR YAFFAIR S H0.9\ 5 P . I6/: 6

CERTIFICAT E O FSERVIC E I certif y tha t atcu e an dcorrec t

cop y o f th e foregoin g wa s forwarde dvi afacsimil e an dFedE x Ovemigh i delivery o n th e I ^f ^ day o f February , 2011 , to : Th e Honorabl e Richar dC . Goodwin , Administrativ e La w Judg e Ofiic c o f Hearings , M-2 0 U.S . Departmen t

o f Transportatio n 120 0 Ne w Jerse y Avenue , S E Eas t Buildin g Groun dFloor , Roo mEl2-32 0 Washington , D C 2059 0 FAX : (202 ) 366-753 6 Federa l Aviatio n Administratio n 80 0 Independenc e Avenue , S W Wilbur Wrigh t Building , Suit e 2W100 0 Washington , D C 2059 1 Attn : Hearin g Docke t

Clctfc , AGC-43 0 FAX : (202 ) 493-514 2 Mr . Scott R , Morris , Esq . Federa l Aviatio n Administratio n Offic e o f th e Regiona l Counse l -Northwes t Mountai n Regio n 160 1 Lin dAvenu e S W Rcnton , W A9805 7 FAX : (425 ) 227-100 7

Courtne y E.telt s

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