## " """'"EXHIBIT S

SMIT H CABL E CP09AL001 2

2009-097 6 # Descriptio n 0 Exhibi t 1 C- 1 photo s Cdlema n caniste ran d spra yca n - 1 p p 2 C- 2 photo s Colema n caniste ran d spra yca n - 1 p p 3 C-3 phot o Coleme n caniste r- 1 p p 4 C-4 phot o spra yca n - 1 p p 5 C- 5 Ai r WayBi H dt d2008091 0 - 1 p p 6 Ai rCarg o Dangerou s Good s Ir rRp t dt d - 1 p p 7 Emai l dt d 200809 1 Cam p - 1 p p 8 emai l dt d2008091 5 Cook - 1 p p 9 Lt rdt d 9/17/0 8 LO I Diet z - 1 p p 1 0 Not e Smit h Cabl e 11/1/0 ? - 1 p p 1 1 MFRS ADiet z sta - 1 p p 1 2 Note s Aer o Sv

c- 1 p p 1 3 MF R S

ADiet z st a - 1 p p 1 4 MFRS ADiet z sta - 1 p p 1 5 Ap p C , Sanctio n Guidanc e -1 7 p p \ / FA AExhibi t Lis t I D I D X X X X X X X X X X X X X X X I M I N X X X X N O X N O N O X X X N O X N O J N

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2 8 2 9U.S . I)in>AI<rMBN T OrTKANSPOUTATIO N I'KDERA L AVIATIO N ADMINISTRATIO N Si;Cl'RJTVA,HA/',ARIX)U S MATI'.HIAI. S 

### 3 ~ 1

Photograp hshow s th e propan e an dspray paint ottere da s carg o b y SMIT H CABL E SYSTEMS . Photograp htake n o n Septembe r 15 , 2008 , b y Kyl e Forbes , ASA A KTN , ande-maile dth e sam e day . Th e propan e an dpain t

were dispose do f

b y ASA A statio n personnel , KTN . Th e picture s were downloade ddirectl y fro me-mail . N o alteration s wer e mad e t o th e photograph s othe r than copyin g ihe mfromLotu s Note s t o Microsof t Offic e Word .

Interviewed/R e viewe d O n B y 

### Special Agent

Jeffrey Deit z FA A For m1600-32- 1 is-ae.) 0 \ ^ ,01 / Cft)<l/^iO0) ^ 

## J A t Fii e No . 

### 2008AL70008 1 

# = 5 ^ 

# y r £^

- O FO R OFFICIA L US E ONL Y (Publi c svallabllil /

l o b o dtlermino dunde r

5 U.S.C . 553 )U.S . DllPARlMEN T OV

- TIlANSl'ORTATIO N FKDCRA L AVIATIO N ADMINISTRATIO N SEi:i.JRIT Y & HAZARDOU S MATERIAL S 

### 3 - 2

Photograp h\ s asecon dvie w ofAh e hazardou s materials . Th e propan e an dpain t

wer e dispose do f

b y ASA A statio n personnel , KTN . Th e picture s were downloade ddirectl y fro me-mail . N o alteration s wer e mad e t o th e photograph s othe r tha n copyin g the mfro

mLotu s Note s to Microsof t Offic e Word .

Inteiviewed/Revrewe d O n 

### Special Agent

Jeffrey Deil z A t B y Fil e No . 

### 2008AL70008 1 FA AFor m 1600-32- 1 p i 

## CPcA^im z 

# ^ p FO R OFFICIA L US E ONL Y (Publi cavailabilit yt o b e determin e unde r

5 U.S.C . 552

^U.S . DnCAKTMHNTOrTRANSPORIAllO N FKDCRA L AVIATIO N ADMINrSTkA' l IO N .SECURIT Y & HAZAkDOU S MATERIAL S 

### 3- 3

Photograp hshow s aclos e up o f on e o f the ' Propan e Cylinders . Th e propan e an dpain t

were dispose do f

b y ASA A statio n personnel , KTN. Th e picture s were downloade ddirectl y fro mFujifilmCamer ato thi s document . N o alteration s wer e mad e t o th e photograph s othe r

than copyin g the mfromI.,otu s Note s t o Microsof t Offic e Word .

Inten/iewod/Reviewe d O n 

### Special Agen t

Jeffrey Deit z B y FA A For m 1600-32- 1 oeej ,\S ) f/J ^ ~>y r'Pn a A l f A )•

? 

# <J ^ At Fil e No . 

### !008AL7000S 1 

# B^'c ^ FO R OFFICIA L US E ONL Y (Publi cavailabilit yt o b e determine d unda rS U.S.C . 552 )U.S . OEPARTMliN T OFIHANSVOKTATIO

N FKI>ERA L AVI A HO N ADMINISTRATIO N SECURIT Y & I lAZARDO l ) S MATfiRlAL S 3 - 4



### Photograp hshow s aclos e up o f th e bac k o f th e spra y paint . Th e propan e andpain t

were dispose do f

b y ASAA statio n personnel , KTN . Th e picture s were downloade ddirectl y fro mFujifilmCamer ato thi s document . N o alteration s were mad e t o th e photograph s othe r

than copyin g the mfromLotu s Note s l o Microsof t Offic e Word .

Interviewed/Reviewe

dO n B y 

### Special Agen t

Jeffrey Deit z FA A For m1600-32- 1 (986 ) /-^Vt ^ :r)0 ^ 

# crc^Auioiz . At Fri e No . 

### 2008AL7000 8 FO R OFFICIA L US E ONL Y (Publi c ovallabilil y t o b o determine dunde r

5 U.S.C . 552 ):;tt-^-15-£ld0 8 08:3 8 FROM :

02 7 KT N 747 1 263 2 ^ 0:1907271^93 3 ' P.1^ 1 < w 027-747 1 263 2 Stilpptr* * Nom a an d AddiBi t SMIT H CABL E SYSTEM S 435 1 E 145t h Av e P O BO X 1T166 5 Anchorag e A K ANCHORAGE , A K9951 5 US A Tel : ShIppW i Accoun t Mumbo r 2744211712 5 Cuilc>mar > I D Numb v , 1089 6 9951 1

Condgnfla' a Nnni B an d Addios B SMIT H CABL E SYSTEM S 435 1 e 145t h Av e P O po x11156 5 Anchorag e A K9951 1 ANCHORAGE , A K9951 5 US A Tel ConiisnsB' i Acooun i Numbt r 2744211712 5 ND l NogollBbt s Af rWaybil l UHjadB v ALASK AAtRLtNE S P.O . BO X 6l«a 0 SCATTLe , W A9116 0 aOO-22S-279 2 ALASKAfAilC0.CO M 7EoTOu5 "

Tel : iMUlr ^ CvJiai' t Apan l an d Ctl y

X"g»nt'»lAfAC«i» " Accoun t tit> r Alrpof i o l Daparlur a (Addr . of.Plrc ) Cerrlor ) in d RMiueilB d Routin g Kelchika n AccfiutUn D hfonniBo n SMI- m CABL E SYSTEM S IN C 435 1 E 145t h Av e P O BO X 11 1 se e Anchorag e A K8851 1 ANCHORAGE , A K9951 5 US A PriorityCarg o 1089 6

T o B y ^In i CanJa r AN C Alask a Airline s I T OviMia dVilu aFo r Ctnto m NC V TTo T FA I ^ S YoT W Currtnc y

US D »X Wr/VA L "oiF5 7



## x l >BclBrM l Valu a F vGanrlag a

NV O Alipo n o f Duilnitlo n Fairbank s FNghl/OBt a A S 067/1 0 llgtit/DAt a

AS . 196/1 0 Amom i o f Iniuranc a

XX X Handin g ir\iorm*tio n 6C 1

N o o f Placa i 5roi t Conmodli y Tta m No . CPvgaBb b Watgh l Rata / Char{) a ToU l falur a en d QuB/^ir yo f Oood a find . DlTnanalon a » Votuma ) 2 4 1,213. 0 1.213. 0 0.6 B 624.8 4 TOOL S

2 4 1,213. 0 B24.8 4 PR I Volume : 0.00 0 Prepai d VValoh l ChBrs a Collac l

824.8 4

Valuitio n Charg a 68.2 3 TQIH I Olha rChBr0» t Du a Ann ' 38.5 7 Tota l Othe rChargs a Du a Carrlo r 266.8 6

roU l ^apai J 1,198.5 0 Tota l Cottac i Otho rChargt i MY C 242.6 0 s e c24.2 6 PU A38.5 7

Shipp wcwtMa i Ihi l O w panjcufa n o n t)i o fu a tuffo T o n coniE l in d bu l (niofi r• • an ypa n flf th a coMlonman t contain * dangarm a good* , auc h pa n l a pro|Mil ydaacribai l b yfiam o an d l a I n ptoftt xconditio n tarcarrtig a b y^«ccardtnsl0tha«ppllcafaIaDanB«nniaOBa<f i R*auI*Uona . (conHn l tvthalnspacUono f Ihlacaiqa . For : SMIT H CABL E SYSTEM S IN C SlanaUir a o f Ghlooo ro rhl a Aaan i 

# !0 : J p p*l S BKlpMEW t DqeSHQ T COKTW N ''— " iANQEROiJ B GOOD S U s SHIPMEN T GOE S COMTAI N DANGEROU S GOOD S 1 0 Se p 200 8 13:1 2 Ketchika n Alaska_Airline s _ 'MMaajIat l O n {6a\i ) ' V l TRaca t " Slgnntuf w a l liauln n Cnntmo f '! • Agan l 027-747 1 263 2 

### A ^ 

## cro^A^coiz . 

# £y . C' 5ici-ctja o itf::D rhKUn : TO:1907271493 3 P.1^ 1



## Ai r Carg o Dangerou s Good s Irregularit y Repor t INSTRUCTIONS : Phon e o r fa x (hi s complete drepor t t o th e FAA . Photograph s ma y b e take n t o suppor t th e incident . (T o repor t

spill s o r leak s involvin g dangeruu s guodx . us e DO T For m5800.1 , whic h ma y b e foun di n Firs t

Class . G o to : AS A Conferences/A S Environmental/S& E Forms . ^Undeclared/Hidde n Typ e o f incident : • • Erroneousl y declare d

Q Insufficient/imprope r absorptio n material s Q Quantit y exceed s allowe dlimit s Q Imprope r

insid e container s Q Insid e container s no t oriente da s show n o n th e packagin g INITIA LINCIDEN T INFORMATION : Datc/^rim c discovered : ^^^i > ^ ~ P f ^ .^_ _ Wher e an dho w discovere d(e.g . X-ray . physica l inspection , spill , etc) : __ ^ Namc/phon c numbe r

o f perso n reporting : ' Wher e ar e th e dangerou s good s now ? n/ \Z^)^^fi<-\

- \3'^pQ,5^ A ( AfP^ ^ CARG O INFOUMAIION : Ai r Waybil l numbe r

o f itcm(s ) comainin g Dangerou s Goods : 

# 1 ^(^3 ^ ^ Typ e o f carg o involve d(e.g . Goldstreak , Goldrush , Cargo , etc) : 

# .Jjkca o . PropeuShWingName : -Vibpgt^-g , Cu.tJ p „ U N Number : i^'^ .

[JcTaKiorfthe^tsidferfftheKipm^ ^ "P^N o I f yes , wha t

kind?'^ ^ Ar e ther e an y 'I'oial numbe r

o f piece s offere db y shipper : Tota l numbe r

o f piece s containin g Dangerou s Goods : 

# ^t E



# z . SHIIM'K U INFORMATION : ^ , , Name : ^Cr\\^i ^ W lo l g SV^.^^^ ^ Address : ^^T " G ) 4 & ^ ^ /V ^ 

# City : ^Airy/horoae ^ Telephon e numbe r 

# H o ^'ve ^ state : ^,^}i<:.^

_ Z< p Cod e V^T^/v S rNCIDEN T IJICSCRIPTION : Describ e th e dangerou s good s iha l wa s found , includin g type , amount , bran dnam e o r manuraclurer . etc : -^fiv / "kjldeTe d ^^^ Z ^'gL/yt/ O 'SH/e . 

# .^ki\f}V>^<^

] rAng5 > 'AH'k ^ ^aroA^ dan d _(2aAN."f c 4X>- ^ S \o\^^ d. —. —

ZK-2 1 (06/03 t ASAtttM)4lO-2-301 2 -.^^ ' K ' ^ 

# ^^^\'/ J 

# cmAim^ z"Stephe n Camp " T o Jef f Deitz/AAL/FAA@FA

A <Stephen.Camp@AlaskaAlr. c om > ^ ^ 09/15/200 8 09:4 3 A M ^ ^ Subjec t regardin g aw b 7471-263 2 Whil e picitin

g u p a smal l beac h barbeque , tw o Colema n campin g propan e bottles , bot h o f whic h wer e halfwa yful l fel l out . The n Ti mCoo k screene d 100 % an d foun d som e spra ypain t a s well . Afte r removin g Ch e restricte d article s th e carg o wa s sen t o n fligh t 6 9 tha t evening .

V



# H h Odo o 'PCAUcoiz .-Ti mCook " <Tim.Cook@AlaskaAir.com > 09/15/200 8 09:5 8 A M T o Jef f Deit2/AAL/FAA@FA A c c •bc c Subjec t AW B #7471-263 2 Hello , X wa s workin g th e werehous e whe n th e shipmen t wit h th e ai r wa ybil l o f 7471-263 2 wa s drope d off . I sen d th e item' s tha t neede d t o b e screene d t o TS Aa s a know n shipper . The m item' s vjhere fin e s o i sen d i t t o th e ramp t o b e loade d o n aircraft . Late r tha t da yi t wa s bumpe d fro mth e aircraf t du e t o roo man d wa s sen t bac k C o th e werehous e wher e a rampe r spille d fe w peace s of f th e pallet wher e 2 propan e bottle s fel l out . The n afte r tha t i di d a IDG' S scree n an d foun d a spra ypain t bottl e ful l i n th e botto mo f a actio n packe r crat e . . An ythin g yo u nee d pleas e emai l m e o f cal l m e a t work . Than k yo u Ti mCoo k



### T >



# cmmi ^

# 3^

U.S . Departmen t o f Transportatio n Federa l Aviatio n Administratio n ANCHORAG E AVIATIO N SECURIT Y an d HAZARDOU S MATERIAL S 22 2 Wes t 7' ^

Avenu e #1 4 Anchorage , Alask a 99513-758 7 Tel : 907 ) 271-500 3 Fax : (907 ) 27 1 49^ 3 CERTIFIE D MAIL—RETUR N RECEIP T REQUESTE D Smit h Cabl e System s Attn : President/CE O P O Bo x11156 5 Anchorage , A K9951 1 7 1\:\: : r-.'-i . Dea rSi ro rMadam : Lette ro f Investigatio n Fil e Number : 2008AL70008 1 O n Septembe r15 , 2008 , th e Federa l Aviatio n Administratio n (FAA ) Offic e o f Securit yan d Hazardou s Material s (ASH ) branc h offic e i n Anchorage , Alask a wa s notifie d o f undeclare d hazardou s material s discovere d b yAlask a Airline s (ASAA) , a t th e Ketchika n airport (KTN) . Specifically , ASA Areporte d t o thi s offic e tha t o n Septembe r10 , 2008 , you rcompan yoffere d a 2 4 piec e shipmen t t o ASA Afo rai rtransportatio n a s carg o fro m KT N t o Fairbanks , A Ko n ai r waybil l # 7471-2632 . Durin g th e handlin g process , tw o 16. 4 ounce/46 5 gra m cylinder s o f Colema n Propan e (Petroleu m gases , liquefied , clas s 2.1 , UN1075 ) wer e discovered . Thi s le d t o furthe rinspection/screenin g wher e on e 1 2 o z ca n o f Premiu m D6co rspra ypain t (Aerosols , flammable , clas s 2.1 , UN1950 ) wa s discovered . Liquefie d petroleu m gase s ar e forbidde n fo r transportatio n o n a passenge rcarryin g aircraft . Th e Federa l Aviatio n Administratio n i s conductin g a n investigatio n int o thi s matte ran d preliminaryevidenc e indicate s tha i yo u ma yhav e violate d th e Federa l Hazardou s Material s Regulations , 4 9 Cod e o f Federa l Regulations . W e wis h t o offe ryo u th e opportunit yt o furnis h explanatoryinformatio n reflectin g extenuatin g o r mitigatin g circumstance s regardin g thes e allege d violations . You rwritte n repl ywil l b e neede d withi n te n (10 ) workin g day s o f receip t o f thi s lette rt o resolv e thi s matte rpromptly . I f n o respons e i s received , thi s cas e wil l b e processe d withou t th e benefi t of you rreply . Pleas e includ e i n you rresponse , th e hazma t training.record s fo ranyon e involve d wit h thi s shipment . Sincerely , / 

## /JeWfeVL . Dt\^ ' Hazardou s Matehal s Specialis t Hazardou s Material s Branc h Anchorag e Offic e /T/ ^ : ^ , ^

. V

CPO^ALOOI ZU.S . DEPARTMEN T O F TRANSPORTATIO N FEDERA L AVIATIO N AUMIINISTRATIO N SECI;RIT Y& HAZARIXIU S MATERIAL S 

### AGEN T STATEMENT : Jeffrey L . Deitz , Special Agen t (SA) , Federal Aviatio n Administration , Offic e o f Securit y andHazardou s Materials , 22 2 Wes t 7^* ^ Avenu e #14 , Anchorage , Alaska , 99523 , Telephon e (907)271-5003 . ' O n September

15 , 2008 , this offic e receive dnotificatio n fromAlask aAirline s (ASAA ) Carg o Facility locate di

n Ketchikan , AK . Th e notificatio n state dtha t o n Septembe r

10 , 2008 , SMITH CABLE SYSTEM S offere dundeclare dhazardou s material s fo r ai r transportatio n fro

mKT N to FA I a s par t o f a24 piec e carg o shipment . . ASAA reporte dtha

t i n thi s shipmen t

offere do n ASA A Ai r

Waybil l U 747 1 2632 , wa s foundt o contai n tw o 16. 4 ounc e cylinder s o f Coleman Propan e fue

l (Petroleu mgases , liquefied , clas s 2;1 , U N 1075 ) andon e 1 2 ounc e ca n o f Premiu mDeco r

spray pain t

(Aerosols , flammable, clas s 2.1 , UNI950) . ASA A i n KT N provide dphotographs , aD G irregularity report andacop y o f

th e Ai r Waybill . Th e photograph s wer e take n o n Septembe r 15 , 2008 , b

y Kyl e Forbes , ASAA KTN , an de-maile dth e sam e day . Material Safet

y Dat aSheet s (MSDS ) were obtaine dfor bot h th e Coleman Propan e andPremiu m deco r spray paint . O n Septembe r

17 , 2008 , aLette r

o f Investigatio n wa s dispatche dto SMIT H CABL E SYSTEM S . concernin g m

y investigation . O n Octobe r

1 , 2008 , I receive datelephon e cal l fromRon Smith , Presiden t o f SMIT H CABLE SYSTEMS . H e wante dt o acknowledg e th e receip t o f th e LO I an dsai dthat

h e di dno t

kno w anythin g abou t

th e shipmen t

bu t woul dge l bac k

t o me . O n Octobe r

27 , 2008 , no t

havin g receive danythin g fromRo n Smith , I telephone dhim . H e apologize dfo

r no t gettin g bac k

t o me an dsai dtha

t a n interna l investigatio n conducte db y him confirme dtha

t the y hadshippe dth e hazardou s material s i n question . H e promise dto sen dawritte n accoun t to me . A s o f

thi s dat e nothin g ha s bee n received .

Jeffrey L . Deilz , Special Agen t Hazardou s Material s Specialis t 

## -2- 

# .-a \ ^ ^ ^ 

## b^ - S

Interviewed/Reviewe d O n At B y 

### Special Agent

Jeffrey Deit z Fil e No . 

### 2008AL7000 8 FA AFor m 1600-32- 1 o-ao ) / ^ 

### CVMAi.m/

7 

# £/• € FO R OFFICIA L US E ONL Y (Publi cavailabilit yt o b o dutermina d unde r5 U.S.C . 552 )1* ' 1 1



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### RECOR D O FINTERVIEW : Jessic aFreeman , Freigh t Driver , Aer o Services , Ketchikan , A K

(907)247-570 1 On Septembe r

14 , 2009 , th e undersigne dtelephonicall y intei^iewe dJessic aFreeman regardin g th e circumstance s sunoundin g th e pic k u p o f freigh t fromSmith Cable , an d subsequen t

offerin g o f

th e freight

t o ASA A i n Ketchika n o n Septembe r 10 , 2008 , i n whic hundeclare dhazardou s material s wer e discovered . Prio r t o th e intervie w Freeman wa s informe dthat

th e purpos e o f

th e intervie w wa s for

th e investigatio n o f

aregulatory violation . Freema n agree dt o b e interviewe dan drelate dth e following : Freeman state dtha t

sh e doe s no t

remembe r

thi s particular

shipment . Sh e state d tha t i t wa s no t unusua l to break

dow n apalle t

fo r loadin g i n he r

truc k an dre palletizin g th e loada

t ASAA . Freema n als o state dtha t i t wa s no t unusual fo

r her to hav e mor e tha

n on e shipmen t

i n th e truc k

a t atime . Freeman sai dtha

t becaus e o f

liability reason s sh e woul dalway s kee p th e shipment s physicall y separate . Becaus e th e compan y hel dher personall y responsibl e an dliable , sh e woul densur e tha t i f more than on e shipmen t

wa s presen t i n th e truc k

tha t the y woul dno t

mix . Freeman state dthat

sh e ha s picke du p freight fo r ove r ayea r an dneve r

hada mistak e o r

complaint .

Jeffrey L . Deitz , Specia l Agen t Hazardou s Material s Specialis t9



### AGEN T STATEMENT : Jeffrey L . Deitz , Specia l Agen t (SA) , Federa l Aviatio n Administration , Offic e o f Security an dHazardou s Materials , 22 2 Wes t 7^* ^ Avenu e #14 , Anchorage , Alaska . 99523 , Telephon e (907 ) 271-5003 . After receivin g acop y o f

th e lette r submitte dt o Glen n Brow n b y Marsto n & Gole , I pulle dth e cas e file an dwent ove r th e contents . I n th e Affidavi t

o f Tod dLinne , Linn e state s tha t h e an dhi s coworke r

neve r loade dan y propan e cylinder s no r a n aeroso l ca n o f

paint . I n th e ASA A Irregularity Report i t state s that

th e propan e wa s discovere dinsid e a smal l Stove , an dwhe n th e res t o f thipmen t wa s searche dth e pain t

wa s found . Al l hazma t wa s hidde n andno t

visibl e to thos e loadin g it . I n m y note s I foundastatemen t fromASA A employee , Stephan Camp . In thi s Statement Camp state s tha t

whil e pickin g u p asmal l beac h barbeque , tw o Coleman campin g propan e bottle s fell out . H e ha dTi mCoo k scree n th e res t

o f th e shipmen t

wher e th e pain t

wa s discovered . Agai n th e hazma t i s sai dt o b e hidde n fromview . I als o foun di n m

y notes , referenc e to atelephon e conversatio n tha t I ha dwith Ro n Smith , Presiden t

o f Smit h Cabl e Systems , wher e h e state dtha t hi s interna l investigatio n showe dtha

t the y di dshi p th e item s an dtha t the y ha dagrill . Thi s conversatio n too k

plac e o n Septembe r

27 , 200 8 a

t 113 5 hours .

Jeffrey LDeitz , Specia l Agen t Hazardou s Material s Specialis t '/•:• '



# y ^x. . 

# fAAOm G£^,cr t ymtmi' ^10/01/0 7 2150.3 8 Appendi x C . Sanctio n Guidanc e Hazardou s Material s Enforcemen t 1 . Background . a . Legislation . Congres s dclemiinc dthat th e unregulate dtransportatio n o f hazardou s material s conslilulc s athrea t t o publi c safel y i n al l fomi s o f transportation . Congres s addresse d tha t threat i n 197 4 b y enactin g thcHazardou s Material s Transportatio n Ac t (HMTA) . B y 1990 , Congres s determine dthat effective.enforcemen t

o f th e HMT A require dmor e sever e action , an d enacte dth e Hazardou s Material s Transportatio n Unifoni i Safety Ac t o f 1990 , Publi c Law No . U)N615 , 199 0 U.S . Cod e Congress . & Admin . New s 10 4 Slat . 4605 . Th e primar y effec t o f thi s 199 0 revisio n o f

th e HMT A wa s t o rais e th e maximu mcivi l penalty fo r violation,o f

an y regulatio n enacte dunde r th e HMT A t o $25,000 ; and , for th e firs t time , t o requir e a$25 0 minimu mpenall y for

an y .suc hviolation . Th e HMT A wa s recodifie di n 199 4 an di s no w referre d t o a s th e "Federa l hazardou s materia l transportatio n law^ " 199 4 U.S . Cod e Congress . &Admin . New s 10 8 Stat . 759 , codilie da l 4 9 U:S.C . §§-5101-5127 . I n the.199 4 recodification . Congres s specillcall y stated-that-th e recodificatio n create dn o substantiv e change't o th e eartie r for mofth e statute . I n 2005 , th e Congres s enacte dan dth e Presiden t signe dth e Safe , Accountable , Flexible , Efficien t Transportatio n Equity Act : A Legac y fo r User s (SAFETE A - LU) , Publi c Law 109-59 , Augus t 10,2005 . Tha t

legislation , amon g othe r things , modifie dth e limitation s o n civi l • • • penaltie s Ihatma y b e assesse dfor violationso f

th e hazardou s material s statut e an dregulations . b . CiviLPcriaitics:

- Th e FcderalCivi l Penaltie s Inflatio n Adjuslment-Ae t o f 1990 , 2 8 U.S.C . § 246 1 (note),

- a s amende db y th e Deb t Collectio n Improvemen t Ac t o f 1996 , Publi c Law 104-134 , Apri l 26 , 1996 , provide s amechanis mfo r adjustment s fo

r monetary civi l penaltie s for inflatio n i

n orde r t o maintai n th e deterren t effec t o f monetar y civi l penaltie s an dpromot e complianc e wit

hth e law . Unde r

th e statute , th e adjuste dcivi l penalt y maximum s camio t b e applie dunles s the y ar e implemented-b y regulation . Th e adjuste dcivi l penaltie s ar e liste di n par t 1 3 ofTitl e 1 4 ofth e GFR , subpar t H . ; Pursuant to.SAFETEA

- LU , the,.maximu mcivi l penalt y tha t may b e assesse dfor

aviolatio n ofth e Federa l hazardou s materia l law o r ahazardou s materia l regulatio n i s no w $50,000 ; th e mininiu mcivi l penalt y i s no w $250 . Ther e ar e tw o exception s l o thos e limits . A maximu mcivi l penalt y o f

$100,00 0 may.b e assesse di f th e violatio n result s i

n death , seriou s illness ' o r sever e injur y t o an y person , o r

substantia l destructio n o f property . Th e minimu mcivi l penall y tha i may b e assesse dfo

r atrainin g violatio n i s $450 . c . Enforcemen t

Responsibility.- ; Withi n th e Departmen t o f Transportation,-th e Pipelin e & Hazardou s Material s Safet y Programs-Administratio n (PHMSA) , create db y th e Norma n Y . Minet aResearc han dSpecia l Program s Improvemen t Ac t i n 2004 , adopt s th e Hazardou s Material s Regulation s (HMR) , whic hgove mth e transportatio n o f hazardou s material s (hazmat) . Th e FAA , unde r

delegate dauthority , enforce s th e Federa l hazardou s materia l transportatio n la w an dth e HMR , wit

hparticula r

emphasi s o n shipmen t

o f hazma t b y air . 49C.F.R . § L47(j) . 

# <^C \ C- 1 EXHIBI T

- • ^

PAG E 

### CPM4/(»I Z10/01/0 7 2150.3 B

d . Violatio n o f

th e HMRs . Th e ITM

Rse t fort hregulation s for

th e transportatio n o f

hazmal . A knowin g violatio n ofth e statut e o r o f (h e HM Rca n support

th e assessmen t

o f acivi l penalt y betwee n $25 0 an d$100,000 . A perso n act s knowingl y whe n th e perso n ha s actua l knowledg e o f th e fact s givin g rise t

o th e violation ; o r

areasonabl e perso n actin g i n th e circumstance s an d.^ exercisin g reasonabl e car e woul dhav e tha t knowledge . 4 9 U.S.C . i

j 5i23(a)(l)(A) . Th e civi l penaltie s authorize dunde r th e statut e appl y t o eac hviolatio n o f an y regulatio n se t

fort hi n th e HMR ; the y als o appl y t

o th e violatio n o f

an order , specia l permit , o r approva l issue db y th e Department . Moreover ; unde r th e statute , eac hcontinuin g violatio n o f th e HM Rca n constitut e a. separat e violatio n for

eac hda y aviolatio n continues . I n sectio n 512 4 ofth e statute , Congres s prescribe dcnmina l penaltie s fo r awillfu l violatio n ofth e Federal hazardou s materia l transportatio n law o r

th e HMR ; willfu l violation s requir e evidenc e o f bot hIciiowledg e ofth e law s an dregulation s an dinten t t o violat e them . c . Investigativ e an dEnforcemen t Procedures , Par

t 1 3 ofth e FederalAvialio n Regulation s - Investigativ e an dEnforcemen t Procedure s (1 4 C.F.R . par t 13 ) govern s th e procedure s applicabl e t o enforcemen t ofth e HM Rb y theFAA . Hazma t violation s occurrin g on o r after Augus t 2 , 1990 , mayb e dismisse db y a n administrativ e law judg e (ALJ ) i f anotic e o f propose dcivi l penalt y ha s no t bee n issue dwithi n 2 year s ofth e violation,unlessgoo dcaus e fo r delay ha s bee n shown . 1 4 C.F.R . § 13.208(d) . 2 . Consideratio n o f

Statutor y Criteria . A s agenera l maUer , asanction^shoul db e impose d tha t i s sufficientl y detenen t

bu t no t excessive , i

n orde r t o compl y wit

hth e underiyin g puqiose s ofth e Federal hazardou s materia l transportatio n law an dHMR . I n deiemiinin g th e sanctio n t o b e assessed , penalty , criteri ase t fort hi n 4 9 U.S.C.- § 5123'musl-beconsidered.'Thes e criteri aar e th e nature , circumstances , extent , an dgravit y ofth e violation ; th e degre e o f culpabilit y ofth e violator ; th e histor y ofpas t violation s (i f

any) ; th e abilit y l o pay ; th e effec t o n th e abilit y t

o continu e l o d o business ; an dothe r matter s a s justic e requires : Som e o f thes e consideration s alread y ar e factore dt o som e exten t int o th e categorie s i

n th e Hazardou s Materia l Sanctio n Guidanc e Matrix . Th e stamtory factor s ar e furthe r considere dunde r

th e weightm g analysi s thai i s performe dt

o indicat e th e amoun t

ofth e civi l penalt y withi n th e appropriat e range , i.e. . a t th e minimum , moderate , o r

maximu mportio n ofth e sanctio n range . Th e Matri x recognize s that a n eve n highe r

penalt y coul db e warrante dfor asignificantl y aggravate dcase , consisten t withih c increase dmaximu mpenalt y o f $50,00 0 impose db y SAFETEA-LU . I n addition , th e Matri x reOect s th e potentia l $100,00 0 penalty , als o impose dby SAFETEA-LU , for aviolatio n tha t result s i n death , seriou s illness , o r sever e injury t o an y person , o r substantia l destructio n o f property . • . • , 3 . Consistenc y o f

Penalt y Sanctions . Th e Hazardou s Material s Sanctio n Guidanc e i s designe d t o promot e bette r

consistenc y s o that

simila r penahie s ar e impose di

n similar cases . Th e specifie dMatri x range s (e.g. , $250-$550,;o r $15,000-$32,500 ) ar e intende dt o reflec t th e namre , circumstances,'extenl , an dgravit y o f th e cas e a s compare dwit hothe r type s o f cases . Eac hcase , however , mus t

b e evaluate do n it s ow n facts. A sanctio n may differ fromth e specifie dMatri x range s whe n th e fact s an dcircumstance s o f acas e suppor t

eithe r agreate r o r lesse r penalty . Whe n aspecia l agen t

believe s tha i apenalt y shoul dexcee dth e specifie dMatri x ranges , th e agen t shoul dconsul t

wit hlegal counse l befor e furthe r processin g o f

th e Enforcemen t

Investigativ e Report (EIR) . Thi s consultatio n i s no t necessar y i

n th e cas e o f

arecommende dpenall y tha t i s

v . 1 EXHIBI T 

### PAGE..2_OFJ„'5 L10/01/0 7 2150.3 B

les s than tha

t provide di n th e Matrix . I n eilhc r situation , th e basi s for

th e decisio n t o g o outsid e th e range s shoul db e explaine di n detail . 4 . Par t 17 5 Violations.- . Violation s o f part 17 5 ofth e HMR , whic hestablis hparticula r requirement s fo

r ai r earner s an dothe r

aircraf t operators , ar e containe di n aseparat e matrix . "

^ However , suc hoperator s ofte n offer hazardou s material s fo

r ai r transportation , a s well a s accep t an dtranspor t

them . Fo r

thi s reason , suc hoperator s may b e liabl e fo r violation s bot

ha s a busines s entity withi n th e Hazardou s Material s Sanctio n Guidanc e Matrix , a s wel l a s to r specifi c ai r caiTier violations . . . . . 5 . Violatio n Committe db y Smal l Busines s Entity . T o mee t statistics-gatherin g requirements , th e investigatin g specia l agen t mus t determin e whethe r

th e allege dviolato r

qualifie s a s asmal l busines s concer n unde r

th e Smal l BusinessRegulator y Enforcemen t Fairnes s Act^o f

199 6 (SBREFA) . For

a n extensiv e discussio n o f how . l o mak e thai delemiination ; se e Part One

- Abbrevialion s an dDefinitions , i n Appendi x B o f

thi s order . I f

investigatin g specia l agent s ar e unabl e t o obtai n independentl y informatio n t o determin e whethe r a n allege dviolato r

i s asmal l busines s concern , the y reques t suc hinfonnatio n i

n th e lette r

o f investigation. . Se e sampl e lette r o f investigatio n i

n Figur e A- 1 o f

Appendi x A.

< Because-violation s ofTitl e 4 9 ofth e U.SrCod e an dth e HMRmay b e committe db y entitie s i n additio n t o thos e normall y regulate db y th e FAA , th e investigatin g agen t

may nee dt o refer

t o th e SBA' s complet e tabl e o f siz e standard s t

o find th e coiTCC

t siz e limi t fo r a n allege dviolator . • - . , ! a . Enforcemen t

Polic y unde r

SBREKA . Chaptcr-7 , Paragrap h10 , o f thi s orde r

generall y outline s th e FAA's,enforcemen t polic y unde r

SBREFA.

- I

n detemiinin g whethe r

an dho w tO : provid e for,th e reductio n o r waive r o f civi l penaltie s fo

r statutory onrcgulator y violation s b y smal l entities , th e FAA' s polic y may contai n certai n conditions . Thos e condition s may allo w for excludin g fromsuc hareductio n o r waiver : asmal l entity tha t ha s bee n subjec t

t o multiple / enforcemen t

action s by th e agency , aviolatio n involvin g willfu l o r crimina l conduct , aviolatio n tha t result s whentherctha s no t bee n agoodTait hattemp t t o comply.wil hth e requirements , an da violationitha t

pose s aseriou s health , safety'or-enviroruiienta l threat . Wit hrespec t t o ai r carrier s and.othc r aircraf t operators,-th e FA A take s int o consideratio n compan y siz e i n delenninin g th e appropriat e amoun t

o f civi l penalty . Se e th e Matrix , Figur e C-1 , below. . b . Informatio n Shee t

fo r Complaint s b y Smal l Busines s Concerns . Eac hFAA employe e who,conduct s an inspectio n o f asmal l business.concer n that i s regulate db y th e FA A provide s th e smal l busines s concer n wit ha n informatio n sheet . Th e informatio n shee t inform s tha t

entit y tha t it may submi t

complaint s o r

comment s re'garding'unfai r FA A regulator y enforcemen t t o th e National.Ombudsman . FAA specia l agent s may . obtai n acop y ofth e informatio n shee t fo r hazardou s material s inspection s an dadditiona l guidanc e fo r distributin g it

fromth e AS H regiona l offices . c . Reductio n o r

Waive r o f Penalty . Th e FA A doe s no t reduc e o r

waiv e th e penall y o f

an allege dviolato r

solel y becaus e i t

i s asmal l busines s entity . Thi s i s becaus e aviolatio n ofth e hazma t statute s orHM Rtypicall y pose s aseriou s health , safely , o r environmenta l threa t

(an d' may involv e on e o f

th e othe r reason s for

exclusion) . Accordingly , th e FAA wil l usuall y reduc e

^ ( 

### PAG E _3—OJ^-Z-I ^10/01/0 7 2150.3 B

o r waiv e apenalt y onl y i f

th e smal l busines s entit y provide s evidenc e t o demonstrat e it s inability l o pay o r tha t th e propose dpenalt y woul dpreven t th e entit y fro

mcontinuin g i

n business . d . Enforcemen t

Action s Otbc r

tha n Civi l Penalties . Th e FA A may , i n limite d circumstances , announc e policie s t o provid e fo r hazma t enforcemen t

action s les s onerou s tha n civi l penalties , tha t

is , administrativ e actions . Suc hpolicie s may appl y l o smal l busines s entitie s o r l o others , an dwil l b e announce da s Complianc e an dEnforcemen t Bulletin s i

n thi s order . 6 . Us e ofth e Sanctio n Guidance . Thi s guidanc e provide s agenc y personne l wit hasystemati c wa y t o evaluat e acas e an daniv e a t a n appropriat e penalty , considerin g al l th e relevan t slalutor> ' criteri aincludin g mitigatin g an daggravatin g circumstances , i f any . Stalutoi y consideration s hav e bee n factore dint o th e variou s range s withi n th e Sanctio n Guidanc e Matrix . Delemiinatio n o f wher e asanctio n lie s withi n thes e range s i s aide db y aserie s o f weightin g question s tha t prob e th e variou s aggravatin g an dmitigatin g factor s tha t may exis t

i n acase . a . Weigh t

Analysis . First , th e weightin g analysi s i s performed . Agenc y personne l respon d l o aserie s o f

question s t o delennin c ihcaggregat e weigh t ofth e case . Th e aggregat e weigh t o f th e cas e help s determin e th e sanctio n amoun t for eac hviolatio n grou p withi n th e establishe d ranges^o f th e Matrix . . • j * b . Determinatio n o f

Sanction . I

t i s importan t

l o not e that

delemiinatio n o f

wher e th e .sanctio n lie s withi n th e Matri x i s no t th e resul t

o f amathematica l computation . Evaluatio n ofth e cas e i s base do n th e totalit y ofth e fact s an dcircumstances ; Generally , i f th e answe r

t o a particula r questio n leprcscnt s amor e significan t aspec t o f acase,-greate r

consideratio n .shoul db e give n totha t

answer . Fo r

example , violation s involvin g a n extremel y dangerou s substance,'eve n i n minut e quantities,

- migh t warran t apenalt y a t

th e maximu men dofth e rang e o r eve n apenalt y exceedin g th e Matri x range s (i f no t alread y a l th e statutory maximum). ' ) c . Determinatio n o f

Category . Unde r

th e Sanctio n Guidanc e Matrix , agenc y personne l dctcmiin e th e categor y o f violato r th e perso n fall s withi n {fo r example , busines s entit y tha t regularl y offers , accepts , o r transport s hazmal ) an dth e offens e categor y {fo r example , undeclare d shipmen t withi n hazma t

quantit y limilations) . Thesanclio n range s unde r th e variou s violato r categorie s tak e int o accoun t th e relativ e culpabilit y ofth e violator . Similarly , th e offens e categorie s addres s th e nature ; circumstances ; an dgravit y o f th e particular

offense . Afte r determinin g th e appropriat e categorie s an dintersectin g bo x ofth e Matrix , agenc y personne l the n detemiin e whic hsubcategorie s o f offense s {fo

r example ; shippin g papers ) ar e allege dt o hav e bee n violated . Base do n th e weighting.analysi s perfomie di n subparagraph s 8.a.-e. , a n appropriat e penalt y i s assigne dfor eac h o f the.applicabl e violatio n groups . Th e penalt y amoun t fo r eac hrelevan t

violatio n grou p i s added-togclhe r t o reac hth e reconmiende dsanction : d . Othe r Relevan t

Sanctio n Factors . Unde r subparagrap h8.g. , th e specia l agen t the n consider s othe r

relevan t factors , includin g evidenc e o f correctiv e action . A recommende d sanctio n may b e reduce dprio r t o th e issuanc e o f

anotic e o f

propose dcivi l penalt y whe n ther e i s adequat e reliabl e infonnatio n concernin g th e correctiv e action s take n b y arespondent . Correctiv e action s that

justif y reductio n ofth e recoimnende dpenalt y mus t excee dth e minimu m



## ^ ^ 4 f-XHiea^Xfiil^ ! 

## ?^| J , ~ ?AGE_^_orj A10/01/0 7 2150.3 8

lega l requirements . Th e specia l agen t als o attempt s t o provid e infonnatio n eonceniin g Ih e allege dviolator' s size , financial condition , an dabilit y l o pay areconmiende dsanction . 7 . FA A Lega l Counse l Review . Whe n a n EIR.i s forwarde dl o legal counse l fo r enforcemen t action , counse l wil l giv e appropriat e consideratio n t o th e recommende dsanction . FA A legal counse l wil l als o revie w th e factors , analysis , an ddetemiination s unde r th e Hazardou s Material s Sanctio n Guidance . .Th e basi s for deviatin g fromth e recommende dsanction , i f any , shoul db e explaine dlo , an ddiscussed-with , th e investigatin g specia l agent . Fina l deteniiinatio n ofth e • sanctio n amoun t

propose di

n th e notic e o f

propose dcivi l penalt y i s ordinaril y aproduc t o f join t decisioimiakin g an dapprova l ofth e investigatin g agen t an dth e legal office . • 8 . Federa l Aviatio n Administrntio n Hazardou s Material s Sanctio n Cuidjancc . Thi s Sanctio n Guidanc e i s divide dint o tlue e sections : cas e analysis ; utilizatio n o f di e Sanctio n Guidanc e Matri x (Matrix) ; an dconsideratio n o f othe r slatutoi y factors . Th e Sanctio n Guidanc e Matri x i s containe di

n Figur e C^l an dth e Ris k Categorie s ar e containe di n Figur e C-2 . a . Cas e Analysi s (Evaluatio n o f Statutor y Assessmen t

Factors) . . (1 ) Thi s sectio n contain s aserie s o f question s t o assis t

aspecia l agen t

i n evaluatin g a eas e an drecommendin g asanction . I t als o assist s a

n attorne y i

n evaluatin g acas e file prio r t o initiation , an dafte r

additiona l infomiatio n i s receive di n respons e t

o anotic e o f

propose dcivi l penalty , Th e question s revie w factorsjnvolving.lh c nature , circumstances , exten t an dgravity o f th e violation , th e violator' s degre e o f culpability,.an dth e violator' s histor y o f prio r violations . Som e o f thes e factor s ar e alread y considere dt o som e exten t withi n th e variou s categorie s ofth e Sanctio n Guidanc e Matrix . Th e question s i n thi s sectio n provid e additiona l consideratio n ofth e statutor y factor s an dexamin e the.existenc e o f aggravatin g an dtnitigatin g factor s i n acase . (2 ) Th e agcn l answei- s eac hquestio n i n Sectio n I an ddetcmiine s i f arelativ e weigh t

o f minimum , moderate , o r

maximu mshoul db e assigne dbase do n th e respons e t o th e question . With th e exceptio n o f

Questio n (J)(a) , no t

al l question s wil l necessaril y apply.t o agive n fact situation . Questio n (l)(o ) addresse s th e natur e ofth e hazardou s niaterial(s ) involved , an dth e evidenc e wil l indicat e th e ris k caliegor y and , therefore , th e weight . Th e aggravatin g orjnitigatin g factor s addresse di n tli e othe r question s only,appl y to'th e cas e whe n th e questio n receive s aye s resporise . Question s receivin g an o respons e d o no t affec t the.weightin g ofth e cas e an dar e no t considered . Fo r

example , tha

t th e violatio n di dno t

resul t i n injur y o r damag e i s no t

amitigatin g factor , an dshoul dno t

resul t i n penalt y mitigation . I

n man y instances , th e answer s t o mos t o r al l ofth e question s wil l b e n o an dth e pnl y relevan t weightin g facto r

i n this'sectio n wiJ

I b e th e risk categor y o f

th e materia l identifie di n ^HCj'f//o/; f'y^fW). . . , . . (3 ) i n determinin g th e final aggregat e weigh t ofth e case , th e response s t o eac hofth e question s d o no t

hav e t o b e equall y considered . Determinatio n o f whethe r th e overal l eas e shoul dhav e aminimum , moderate , o r maximu mweigh t

canno t b e determine dwit

hmathematica l certainly . Generally , i

f th e answe r

t o aquestio n demonstrate s that,th e factor,atissu e represent s a mor e significan t

aspec t ofth e ease , greate r

consideratio n i s give n t o that factor . Th e final aggregat e weigh t

i s base do n th e totalit y o f th e fact s an dcircumstance s ofth e case . Onc e



## ^'-• ^ ' ^' ^ £XHlB!T_jC|5 ^ "- ^ PAG E .S^Q?Jj h10/01/0 7 2150.3 8

determined , th e final aggregat e weigh t i s the n utilize dt o amv c a t th e recommende dsanctio n fo r eac happlicabl e violatio n grou p o n th e Sanctio n Guidanc e Matri x {See , Figur e C-1) . . b . Th e Nature , Circumstances , Extent , an dGravit y ofth e Violatio n (Factor s Concernin g th e Shipment) : (1 ) Wha t

niaterial(s ) wa s offered , transported , o r accepte dfo r

ai r tran.sportalion ? Figur e C- 2 divide s hazardou s material s o f particula r

classes , divisions , an dpackin g group s int o thre e risk categories : Categor y A , Categor y B . an dCategor y G . Fin dth e materia l offered , transported , o r accepted , i n Figur e C- 2 an danswe r th e question s below .

• I f th e material(s ) i s i n Categor y A , assig n aMaximu mweight . • I f th e n'iaterial(s ) i s i n Cdtdgor y B , assig n aModerat e weight . • •< . . - • I f the'iiiaterial(.s ) i s i n Categor y C , assig n aMinimu mweight . Guidanc e Note : Th e categorie s i n Figur e C- 2 represen t th e inheren t

ris k o f dange r t o ai r transportatio n pose db y th e material . I f ther e i s mor e tha n on e typ e o f hazardou s materia l involve di n th e shipment , u.s c th e hazardou s ihaterialii i th e highes t ris k category . (2 ) Wha t

quantit y ofth e matcrial(s ) wa s offered , transported , o r accepte dfo r

ai r transportation ? • . • •

• Di dtli e packagc(s ) excee dth e authorize dquantit y limitation s b y asignifican t amount ? • \fyes , conside r aModerat e o r

Maximu mweigh t

depending'o n ihedegrc e t o whic h th e limitatio n wa s exceeded . Guidanc e Example : Th e (fuantit y limitatio n fo r gasolin e o n a'passenge r plan e i s 5 liter s pe r package . I f

aviolato r

offer s 3 0 liter s i n asingl e packag e o n apassenge r plane , assig n a maxitntt mweigh'tfo r

thi s factor .

• Di dth e packag e contai n atbrbidde n material ? \fyes , assig n aMaximu mweight .

• Wer e ther e multipl e package s i n th e shipment ? Ifyc.v , conside r aModerat e o r Maximu mweight , dependin g o n th e numbe r o f package s an dtota l amoun t o f hazardou s materia l bein g transporte di n Violation . Guidanc e Note : A packag e mean s apackagin g plia s it s contents . Ther e ma y b e multipl e package s i n on e shipmen t o r overpack . Multipl e package s ofte n represen t multipl e violations . Unde r th e Sanctio n Guidance , thi s fac t i s considere da u aggravatin g circumstanc e rathe r tha n a direc t multiplie r

ofth e sanctio n fo r

eac hviolation . Eac h case , however , mus t b e evaluate do n it s particula r

facts . A ver y larg e numbe r o f package s ma y resul t

i n suc h a n egregiou s cas e tha t th e overal l weigh t

o f th e cas e i s s o hig htha t apenalt y beyon dth e maxiihu mpoin t i n th e rang e i s wai'ranted . ; • . • . . t A n investigatio n wil l occasionall y revea l sufficien t evidenc e o f

severa l shipment s fro mth e sam e offero r ove r aperio do f

severa l days , al l 'o f

whic hinvolv e violation s ofth e HMR . thes e independen t

act s o f offerin g usudllyar e consolidate dint o on' e EI Ran daddresse di n on e notic e



# , ^1 0 ^- ^ B.HieiTlCj5 _ • V 1 < ^ PAG E(pZo^J^ _10/01/0 7 2150.3 8

o f propose dcivi l penalty . However , fo r purpose s o f

determinin g th e appropriat e sanction , eac h separat e shipmen t

wit hseparat e ai r

waybil l o r

.shippin g papers , separat e destination , and/o r othe r evidenc e establishin g i t a s aseparat e shipment , i s ordinaril y co?isidcre da s aseparat e inciden t fo r purpo.se s o f

applyin g th e .sanctio n guidanc e analysis . I f i s suggeste dtha t

th e .separat e shipment s h e treate da s individua l count s i n th e EI Ran dth e notic e ofproposedcivi l penalty , wit h eac hcoun t havin g it s ow n sancticn i derive dfro mapplicatio n o f thi s guidance . (3 ) Di dth e shipmen t

caus e som e damag e o r liam i l o person s o r

propert y o r

interfer e wit h commerce ? ]('yes , conside r aModerat e o r

Maximtt mwciii^ht . Guidanc e Note : Th e fac t tha t n o damag e occurre da s aresul t ofth e shipmen t

i s no t amitigatin g factor . However , damag e o r har mma y aggravat e th e nattwe , circumstances , extent , an dgravit y ofth e violation . Dependin g o n th e degre e o f damag e cause db y th e shipment,and/o r th e existenc e o f

othe r aggravatin g factors , departur e fro mth e range s ma y b e Justified . I t i s importan t

t o not e tha t

death , seriou s illness , o r sever e in/'ui y t o an y person , (n

- substantia l destructio n o f

property , warrant s additiona l consideratio n o f aggravatio n ofth e tota l penalty . c . Violator' s Degre e o f Culpability . Th e Matrix , Figur e C-1 , consider s th e relativ e culpabilit y ofth e violator.-Thi s sectio n o f th e analysi s furthe r

evaluate s th e degre e o f culpabilit y o f th e violator . (1 ) I s th e violato r

th e manufacture r

o f th e hazardou s material ? I f ve.v , consider a Maximu mweight . Guidanc e Note : A manufacture r o f ahazardou s materia l i s expecte dt o hav e complet e hiowledg e ofth e natur e ofth e hazardou s materia l i t manufacture s o r

uses : thus , ahig h degre e o f culpability.wil l ordinaril y h e impute dt o it . (2 ) Di dsomeon e othe r tha n th e violato r

prepar e th e shipmen t

fo r transportation ? Ifyes , .conside r aMinimu mo r

Moderat e weight . Guidanc e N(}te : Fact s .supportin g a n affirmativ e answe r t o thi s questio n ma y b e caus e t o mitigat e culpabilit y and/o r pursu e aseparat e enforcemen t actio n agains t

othe r responsibl e partie s wh o handle dth e shipment . A shippe r tha t reship s material s receive dfro manothe r perso n i n th e sam e packagin g i s independentl y responsibl e fo r ensurin g th e shipmen t complie s wit h th e HMR . Nevertheless , th e reshippe r i s generall y considere dt o hav e alesse r degre e o f culpabilit y fo r

complianc e ofth e packag e a s received . However , i f th e reshippe r

unpack s and/o r repackage s th e shipment , th e reshippe r remain s a s culpabl e a s th e origina l shippe r an d generall y i s no t

accorde dmitigatio n unde r thi s weightin g factor . (Fo r purpose s o f

thi s section , a "reshippe r

" refer s t o aperson , othe r tha n th e origina l offeror , wh o offer s ashipmen t o f hazardou s materia l fo r transportation. ) (3 ) Di dth e violato r

reasonabl y rel y o n incorrec t infonnatio n fro manothe r source ? I f yes , conside r

aMinimu mweight .

^ ! 

### C- 7 

# ^ 1 'S L-^.Mit311 . 

# 0 5 FAGE_J^OF_/=. ^10/01/0 7 2150.3 B

Guidanc e Note : Detrimental , rea.sonabl e relianc e o n anothe r part} ' tna y b e amitigatin g facto r whe n considerin g th e violator' s degre e o f culpability . Ftn

- example , relianc e o n a n inaccurat e Materia l Safet y Dat aShee t (MSDS ) woul db e mitigating . (4 ) Doe s th e violato r

hav e ahistor y o f

previou s HM Rviolations ? Ifyes , conside r a Moderat e o r

Maximu mweight . Guidanc e Note : T

o establis h aviolatio n history , aprio r violatio n mus t

b e a n actua l findin g o f violatio n pursuan t

t o alega l enforcemen t action . Specia l agent s shiml dattemp t t o determin e th e corporat e .structur e ofth e violato r an dwhethe r

othe r busines s entitie s o r

name s ar e o r

hav e bee n use db y th e entit y i n orde r t o obtai n acomplet e violatio n history . Th e numbe r an dag e o f violation s shoul dh e considered . Ordinarily , finding s o f violatio n mor e tha n 5 yan s ol dcarr y les s weight , unles s acontinuin g patter n o f violatio n exists . ,., , ,.. . d . Othe r

Factors . (1 ) Eac hcas e mus t

b e evaluate do n it s particula r facts . ,A s such ; man y case s ma y presen t uniqu e scenario s an daggravatin g o r mitigatin g factor s tha t ar e no t routinel y seen . I f

a n aggravatin g o r

mitigatin g circumstanc e exist s tha t i s no t adequatel y addresse delsewher e i n th e sanctio n guidance , i t

ma y b e include dan dassigne daweigh t unde r thi s section . Th e facto r shoul db e cleart y identifie dan dexplaine di n th e analysi s portio n ofth e EI Ran dcarefull y sciTitinize db y lega l counsel . Guidanc e Note : Fo r

example , ashipmen t

o f asingl e packag e containin g severa l differen t hazardou s material s ma y pre.seti t a n aggravatin g factor . Th e degre e o f .seriousnes s o f

thi s facto r wil l increas e i f

th e hazardou s material s ar e incompatibl e wit h eac h othe r and . therefore , creat e a n increase drisk . Mitigatin g factor s ma y als o exis t tha t hav e no t

bee n adecptatel y considered . Fo r example , a shipmen t containin g ad e minimi s quantit y o f materia l o r

a n amoun t

tha t woul dhav e quidifie d unde r th e smal l quantit y exceptio n o f 4 9 C.F.R . § 173.4 . ma y presen t amitigatin g facto r

i f a s a resul t ther e wa s areduce dris k t o .safety i n transportation . Tha t th e materia l coul dhav e bee n shippe da s acon.sume r commodit y ca n als o b e amitigatin g factor . e . Determin e th e Fina l Aggregat e Weigh t o f th e Case . (1 ) Al l th e responses/weight s ar e evaluate dt o determin e afinal aggregat e weigh t fo r th e cas e {Minimum , Moderate , an dMaximum.) . Question s receivin g an o respons e wil l no t b e include di n thi s evaluation . Todetermin e th e final aggregat e weight , th e agen t o r attorne y mus t exercis e hi s o r

he r discreUo n i n ligh t

o f th e statutor y factor s an dknowledg e o f th e particula r fact s ofth e case . Th e fact s o f th e particula r

cas e wil l dictat e th e relativ e importanc e o f eac h o f th e weightin g factor s i n reachin g th e final aggregat e weight . Th e final aggregat e weigh t shoul d b e decide da s aresul t

o f carefu l analysis , no t

amathematica l averaging . It i s possibl e tha t

a singl e weightin g facto r ma y outweig hal l others . Th e agen t o r attorney' s analysi s shoul dalway s b e explaine di n thi s regard . ^ r \. C- 8 tX-iiSil ^ 

### • • 5 ' "*.. . PAGE_o—or^Lr: .10/01/0 7 2150.3 B

Guidanc e Example : A cas e involvin g ahazardtni s materia l i n th e lowes t

ris k categor y may h e evabutte dl o hav e amaximum , weigh t becaus e o

f th e larg e quantit y shippe do r th e damag e resultin g fromth c shipment . f . utiliz e th e Matri x (Figur e C-1) . (1 ) Th e sanctio n range s unde r th e offero r

an doffens e categorie s ofth e Sanctio n Guidanc e Matri x reflect:tli e relativ e culpabilit y o f ihe.violato r

an dth e nature , circumstances , extent , an dgravity o f

case s fo r th e majority o f

violations . Consideratio n ofthes e particula r stalutoi y factor s unde r

th e Federa l hazardou s materia l transportatio n law i s buil t int o th e Matrix . Furthe r analysi s ofth e statutor y factor s i s require dt o detemiin e th e appropriat e sanctio n withi n th e range s establishe dunde r di e Matrix . Thi s analysi s i s perfonne di n subparagraph s 8.a.-e . Afte r detenninin g th e final aggregat e weigh t ofth e cas e unde r

subparagraph s 8.a.-e. , tha t weigh t i s applie dt o th e appropriat e Matri x rang e t o identif y th e recommende dsanctio n amoun t fo r eac h ofth e relevan t

violatio n group s an dfo

r th e eas e a s awhole . Althoug hth e notic e o f propose d civi l penalt y may . cit e numerou s violation s o f aparticula r

part or.subpar t

ofth e HMR , unles s upwar ddepartur e i s justified , asingl e penalt y amoun t fo r eac hviolatio n grou p i s ordinaril y use d t o reac hth e ful

l sanction . • . . . (2 ) Instructions .

- • Identif

y th e appropriat e categor y for th e typ e o f

entity'an dth e natur e ofth e offens e involve di n th e case . Refe r l o th e Definition s Sectio n that follow s th e Matri x i

n Figur e C- 1 for guidance . G o t

o th e intersectin g bo x an didentif y the . applicabl e sanctio n rang e fo r eac h violatio n group.. . • - . .

•' . Appl y th e conclusio n reache di n th e subparagraph s 8.a.-e . weightin g analysi s l o assig n asanetiohamoun t withi n th e minimum , moderate , o r maximu mportio n ofth e sanction ' rang e for eac hrelevan t

violatio n group . Th e recommende dcivi l penalt y a t thi s stag e i s th e su m o f th e sanction s fo

r eac ho f th e applicabl e violatio n groups . A sanctio n shoul dno t b e assesse d fo r aviolatio n grou p i f

ther e hav e bee n n o violation s o f tha t part o r subpart ofth e HMR . Th e sanctio n amoun t

for eac hviolatio n grou p nee dno t b e identica l but

ordinaril y i s withi n th e portio n o f

th e particula r

sanctio n rang e tha t

represent s th e overall'weigh t ofth e case . (3 ) Departur e fromlhe Matri x ranges . Th e ranges,o f penaltie s specifie di

n th e Matri x (e.g. , $250-$550 ) ar e intende dt o cove r th e majority o f

ease s involvin g violation s ofth e HMR . Th e fact s an dcircumstance s o f aparticula r

case , however , ma y justif y eithe r an upwar do r downwar ddepartur e fromthespecified-Matri x ranges., - Thi s sanctio n guidance.anticipate s departur e from.th e specifie dMatri x range s whe n justified . , A cas e involvin g violation s i n whic h th e namre , circumstances , extent , an dgravit y ofth e inciden t ar e particularl y sever e o r egregious , ma y justif

y upwar ddeparture , from.th e specifie dranges. ; I f th e investigatin g agen t

believes , base dupo n th e fact s o f

acase , tha t

apenalt y shoul dexcee dth e specifie dMatri x ranges ; th e agen t shoul dconsul t

wit hlegal counse l befor e further processin g ofth e EIR . (However , i n n o cas e may the;civil,penalt y pe r violatio n excee dth e maximu mallowe db y law: ) Conversely , th e investigatin g ageri t

may believe.tha t

mitigatin g factor s justif

y adownwar ddeparture-fro mth e 

# ^ 1 ^ ^ ^ \ "AGt;_9„ofL[: ^10/01/0 7 - 2150.3 8

Matri x range . Consultatio n wit hlegal counse l i s no t neoes.sai y i

n di e cas e o f

areconmiende d penalt y tha

t i s les s than tha

t provide di

n th e Matrix . (However , i n n o cas e may th e civi l penalty pe r violatio n b e les s than th e minimu mallowe dby law. ) I n eithe r situation , however , th e agen t i s l o provid e adetaile dexplanatio n ofth e basi s fo r di e decisio n t

o g o outsid e th e ranges . (4 ) Violation s o f

par t 17 5 regulations , whic hestablis hparticula r requirement s fo

r ai r carrier s an dothe r

aircraf t oj>erators , ar e containe di n aseparat e matrix . However , suc hoperator s ofte n offe r hazma t for ai r transportatio n a s wel l a s accep t an dtranspor t

it . A s such , th e operato r may b e liabl e fo

r violation s a s abusines s entit y withi n th e mai n Matri x a s wel l a s fo r th e specifi c part 17 5 violations . g . -Impac t

o f Othe r Statutor y Factors . Th e Federa l hazardou s materia l transportatio n la w als o require s consideratio n o f aviolator' s abilit y t

o pay acivi l penalty , th e impac t o f th e civi l penalt y o n th e violator' s abilit y t o continu e t

o d o business , an dothe r

maUer s tha

t justic e requires : Consideratio n o f ihes e factor s may resul t

i n adjustmen t

ofth e recommende dcivi l penalt y calculate di

n subparagraph.8. f

I n siUiation s wher e th e agen t o r altonie y i s i

n possessio n o f miligalin g infonnation , suc ha n inabilit y t

o pay th e recommende dcivi l penall y o r coneetiv e actio n taken , reductio n ofth e reconmiende dpenalt y may b e appropriate . Mitigatin g infonnatio n shoul db e sufficientl y reliable , uncontroverted , an ddocumente di n orde r t o support

reductio n o f th e recommende dcivi l penalt y prio r t o issuin g th e notic e o f

propose dcivi l penally . (1 ) Abilit y t

o pay o r continu e i

n business . Historically , th e FA A ha s considere dthes e factor s after

di e issuano e ofth e notic e o f propose dcivi l penalt y du e t o th e absenc e o f

reliabl e financial infonnatio n on whic ht o base, areductio n prio r t o th e issuanc e o f

anotice . Thi s Sanctio n Guidanc e recommend s tha t th e special.agen t

mak e effort s l o obtai n reliabl e infonnatio n regardin g th e violator' s siz e an dfinancial condifio n fo r revie w prio r

t o th e issuanc e o f

anotice . Thi s infoniialio n wil l b e transmitte dt o th e legal offic e fo

r consideration . It

i s recognize dthat

i t may no t alway s be,possibl e fo

r the.specia l agen t

and/o r altonie y l o obtai n reliabl e financial informatio n o n aparticular respondent , that

financial circumstance s change , an dtha t infomiatio n may b e provide dafter

th e issuanc e ofth e notic e that may wanan t

further consideratio n o f

a respondent' s abilit y t o pay .

. • Th e invesUgatin g agen t wil l attemp t

t o includ e financial infonnatio n a s an exhibi t i n th e EIR . I

t i s anticipate dtha

t thi s infomiation , i f

available , wil l b e obtaine dfromreliabl e financial dat abases . Financia l documentatio n shoul dinclude , but nee dno t b e limite dto , informatio n eonceniingth e violator' s corporat e structure , busines s address , officers ; numbe r o f employees , an dgros s revenues . .. .

• Th e investigatin g agen t provide s astatemen t

o r conmien t withrespec t

t o th e financial infomiatio n obtaine dbu t ordinaril y doe s no t

evaluat e th e financial conditio n o f a responden t

withrespec t

l o it s abilit y t o pa y apropose dcivi l penalty . Th e investigatin g agent' s statement,shoul dencompass.area s lik e th e numbe r o f employees ; gros s revenues , an dnaUir e o f busines s o f

th e violator . • ... .

• FAA legal counse l review s th e financial infomiatio n provide di n th e EIRan d evaluate s it s sufficienc y an drelevanc e t o th e reconunende dcivi l penalty . Legal counse l may 

# ?*.r \C-1 0 •- - Cl6._ _10/01/0 7 2150.3 8

detemiin e i f

mor e cunen t

infomiatio n exist s concernin g th e financial conditio n o f aresponden t an di f that infoimafio n substantiall y differ s fromth e informatio n availabl e a t th e tim e o f preparatio n ofth e EIR . I f ther e i s abasi s fo

r determinin g tha t

th e recommende dsancUo n i s inappropriat e base dupo n th e financial infonnatio n provide di n th e EIR , th e recommende d sanctio n i s adjuste dprio r t o issuanc e ofth e noUc e o f propose dcivi l penalty . Thi s i s a prcliniinaryconsideralio n o f acompany' s abilit y l o pay . A s such , pre-notic e adjustmen t o f a recommende dcivi l penalt y doe s no t preclud e furthe r

consideratio n o f

arespondent' s financial claim s after

issuanc e ofth e notice . (2 ) Coneetiv e Action .

• Th e mos t

commo n othe r

matte r tha t th e FAA take s int o consideratio n is'cori'cctiv e action . Correctiv e actio n tha t result s i n mitigatio n i s remedia l actio n tha t exceeds.th e minimu m lega l requirements . Th e primar y factor s i n detenninin g th e appropriat e amoun t o f penall y reductio n ar e Ih e exten t

an dtimin g ofth e correctiv e action . I n othe r words , mitigatio n i s detemiine do n th e basi s o f ho w muc hcortecliv e actio n wa s take n an dho w quickl y th e actio n wa s taken . Systemi c chang e intende dl o preven t fuUir e violation s shoul db e give n greate r consideration . Similariy , correctiv e actio n that commence s upo n th e violator'sfii's t learnin g o f th e violation s oidinaril y i s give n greate r credi t tha n coneetiv e actio n that conmience s onl y after th e violato r

receive s th e lette r

o f investigatio n o r

th e notic e o f

propose dcivi l penalty . Mitigatio n o f

areconunende dcivi l penall y base dupo n coneetiv e actio n shoul db e reference di

n th e Notic e o f

Propose dCivi l Penall y s o dial th e responden l i s on notic e that credi t alread y ha s bee n give n for suc haction . (2 ) Statu s o f

violato r a s asmal l busines s ci}tit} > o r ecmcern . Se e subparagraph s 5.a.-b . above . .. .

### 10/01/0 7 2150.3 B MATRI X & DEFlNmON S (Figur e C-1 )

OFFENS E CATEGORIE S I . Declare d Shipmen t 1 . Shippin g l'.ipcr s 2 . Eubel s 3 . Miiiking s 4 . Packagin g 5 . 'I'niinin g 6 . Eiricrg . Respons e 7 . Releas e int o Environ . 8 . Othe r. 11 . Undeclare d Shipmei U Withi n Hazma t Ouantit vLimitation s 1 . Shippin g Piipei s 2 . Labels ' 3 . Marking s 4 . Packagin g 5 . Tiainin g 6 . , Einerg . Respons e . 7 . Releas e int o Environ . 8 . Othe r III . Undeclare d Shionicn t ' Ha/mu t Forbidde n on . o rexceed s at vlimit s Tor . Fasseniie rAircraf t ] . Shippin g Paper s 2 . Label s 3 . Marking s 4 . Packagin g 5 . • Trainin g 6 . Emerg . Respons e 7 . Releas e int o Environ . 8 . Othe r IV . Undeclare d Shiomen t Forbidde n on . o r exceed s at\ ' limit s for . Al l Aircraf t 1 . Shippin g Paper s 2 . Label s 3 . Marking s 4 . Packagin g 5 . Trainin g 6 . Emerg . Respons e 7 . Releas e int o Environ . 8 . Othe r V . Intentiona l o r A . IndividuaM ' z.-^o-ss o 250-55 0 250-55 0 250-55 0 250-55 0 250-55 0 250-55 0

250-1,10 0 250^1,10 0 250-1.10 0 250-1.10 0 250-1,10 0 250-l,ib b 250-1,10 0

500-5,50 0 500-5,50 0 500-5,50 0 500-5,50 0 500-5,50 0 500-5,50 0 500-5,50 0

500-32,50 0 500-32.50 0 500-32,50 0 500-32,50 0 500-32,50 0 500-32,50 0 500-32.50 0 CONSUL T B . Busines s Entil y 250-1,10 0 250-1,10 0 250-1,10 0 250-1,10 0 , 4.50-1,10 0 250-1,10 0 250-1,10 0 250-1.10 0

1,500-8,20 0 1,500-8,20 0 1,500-8,20 0 1,500-8,20 0 1,500-8.20 0 1,500:8,20 0 . 1,500-8,20 0 1,500-8,20 0

5,000-16,20 0 5,000-16,20 0 5,000-16,20 0 5,000-16,20 0 5,000-16,20 0 5,000-16,20 0 5,000-16,20 0 5,000-16,20 0

7,500-32,50 0 7,500-32,50 0 7,500-32,50 0 7,500-32,50 0 7,500-32,50 0 7,500-32,50 0 7,500-32,50 0 7.500-32,50 0 CONSUL T C . Busines s Entit y tlia l use s o rhandle s lia/.ina l i n th e cours e o f busines s 500-2,20 0 500-2,20 0 500-2,20 0 500:2,20 0 500-2,20 0 500-2,20 0 • 500-2,20 0 500-2,20 0

2,500-11,00 0 2,500-11,00 0 2,500-11,00 0 2.500-11,00 0 2,500-11,00 0 2,500-11,00 0 2,500-11,00 0 2:500-11,00 0

7,500-22,00 0 7,500-22,00 0 7,500-22,00 0 7,500-22.00 0 7,500-22,00 0 7,500-22,00 0 7,500-22,00 0 7,500-22,00 0

10,000-32.50 0 10,000-32,50 0 10,000-32,50 0 10,000-32,50 0 10,000-32,50 0 10,000-32.50 0 10,000-32,50 0 10,000-32,50 0 CONSUL T • v D . Busines s Entit y tha i rcgulaii y offers , accepts , o r transport s hazma t 1,000-5,50 0 ! ,000-5,50 0 1,000-5,50 0 1,000-5,50 0 1,000-5,50 0 "l'6i3b-5;50 0 ~ * • 1,000-5,50 0 1,000-5,50 0

5,000-13,00 0 5,000-13,00 0 5,000-13,00 0 5,000-13.00 0 .5,000-13,00 0 5,000.-13,00 0 5,000-13,00 0 5.000-13,000 "

10,000-32,50 0 10,000-32,50 0 10,000-32,50 0 10,000-32,50 0 10,000-32,50 0 10.000-32,50 0 10.000-32,50 0 10,000-32,50 0

15.000-32,50 0 15,000-32,50 0 15,000-32,50 0 15,000-32,50 0 15,000-32,50 0 15,000-32,50 0 15,000-32,50 0 15,000-32,50 0 CONSUL T 

### c-1 2 ppct.j^ .10/01/0 7 2150.3 8

Deliberat e Violation , o r othe rsi{>nincan l a<>{>rnva(in n V I . Violatio n result s i n death , seriou s illness . sever e iniurv . o r substatitia l ilestriictio n ' o f DroDcrt y LEGAL - Upl o 50,00 0 pe rolTcns e categor yma yb e assesse d CONSUL T LEGAL-U p t o 100,00 0 pe r offens e categor y ma yb e assesse d LEGA L - U p t o 5(1,00 0 jierolTens e categor yma yb e as.sesse d CONSUL T LEGAL - U p t o 100.00 0 pe r offens e categoi' y ma yb e assesse d LEGAL - Upl o 50,00 0 pe roffepi.-^

e categor yma yb e assesse d CONSUL T LEGAL - Upl o 100,00 0 pe roffens e categor yma yb e assesse d LEGAL-U p t o 50.00 0 pe roffens e categoi yma yb e assesse d CONSUL T LEGAL-U p t o 100,00 0 ma yb e assesse d h . ^Sanction s applicabl e t o ai rcarrie ran d commercia l operato rpassenger s an d crcwniembcrs . Th e rang e fo rth e tota l civi l penalt yl o b e assessed , absen t mifigatin g o r aggravatin g factors , i s $25 0 (th e statutor yminimum ) t o $1,000 . 

### AI RCARRIE RAN D OTHE RAIRCRAF T OPERATO RVIOLATION S Failur e l o compl y wit

hPart s 171,172 , o r

17 3 requirement s ofth e HM Ras.an offero r o f hazmal . Improper"^acceptanc e o f

Hazriia t for ai r transportation . (i.e. ; quantity , labeling ; marking , packaging , an d shippin g piipcrs ) ' See4 9 C.F.R . § § 1.75.30(a)(1)-(4 ) FaiJiire t o irispcc t

hazrria t shipmen t property . Se e 4 9 C.F.R. " §§l'75.3d(b),(c),*(d),'(c ) Imprope r storage/securin g o f

hazma t aboar daircraft . Failur e t o provid e hazma t training , maintai n record s o f training , o r

mee t miriiiiiu mi-equifcmenl s foi " hazmat • trainin g (4 9 C.F.R.) ! Usin g untraine^/impropeil y traine dhazina t persomiel , failur e t o retai n hazma t

trainin g record s (4 9 C.F.R. ) Failur e t o notif y FAA propert y o f

incident/discrepancie s i n hazma t shipment . Failur e t o provid e notic e t o th e pilot-in-cohmiand . Othe r Part 17 5 violations. . Intentional , deliberate , o r othe r significantl y aggravate d violation . Violatio n result s i

n death , seriou s illness , sever e injury , o r substantia l destmctio n o f property . E . CroupI& M Ai r Carrier s an d Othe r Aircraf t Operator s Us e mai n Matrix . 5,000:32,50 0 10,000-32,50 0 10,000-32,50 0 10,000-32,50 0 10,000-32,50 0 5,000-16,20 0 5,000-16,20 0 . 5,000-16,20 0 . CONSULT . LEGA L - Up t o 50,00 0 per . , • . offens e categor y ma y b e assesse d CONSULT . LEGAL : Up.t o 100,00 0 per

^ offens e categor y may b e assesse d -^t^^,- ^

F . Grou p 11 1 & IV Ai r Carrier s an d Othe r Aircraf t Operator s Us e mai n Matrix . 2,500-16,20 0 5,000-16,20 0 5,000-16,20 0 5,000-16,20 0 5,000-16,20 0 1,000-5,50 0 1,000.-5,50 0 .1,000-5,50 0 .CONSUL T LEGA L

- Up.to.50,00 0 pe r offens e categor y may b e assesse d CONSUL T LEGA L

- Up t o 100,00 0 per offens e categor y . may b e assesse d

^ . J 

### V * V l ^

••^^ ' C-1 3 V^ \10/01/0 7 2150.3 B

9 . Defiuitions : Not e tha t thes e definition s ar e onl y fo r th e puipos e o f

applyin g th e sanctio n guidanc e i

n thi s appendix . a . Ai r Carrie r an dOthe r

Aircraft Operato r

Group s (I , II , 111 , IV ) - Ai r earner s an dv othe r aircraf i operator s ar e divide dint o tw o categorie s fo r puiposc s o f

determinin g a

n appropriat e .sancfion . Thes e categorie s trac k Ui e ai r carrie r group s establishe di

n Appendi x B thi s order . Fo r

purpose s o f

hazma t sanctio n guidance , th e FAA als o include s othe r aircraf t operator s operatin g i

n commerc e that

ar c o f similar size , e.g. . part

12 9 Foreig n Ai r

Carriers , par

t 125 Operators , an dpart

9 1 Operators . (1 ) Grou p I i s comprise do f ai r carrier s wit

hannua l operatin g revenu e o f $100,000,00 0 o r more . Othe r

aircraf t operator s wit

hannua l operatin g revenu e o f $100,000,00 0 o r

mor e ar e include di

n Grou p I-fo

r hazina t sanctio n guidanc e purposes . (2 ) Grou p I

I i s comprise do f

ai r canier s an dothe r

commercia l operator s that hav e a n amiual operatin g revenu e o f les s than $100,000,000 , an dhav e 5 0 o r mor e pijol s an doperat e 2 5 o r mor e aircraft . Othe r

aircraf t operator s ofth e sam e siz e ar e include di n Grou p I I fo r hazma t sanctio n guidanc e puiposes . (3 ) Grou p 11 1 i s comprise do f ai r carrier s an dothe r

aircraf t operaloi' s tha

t d o no t nicc t th e criteri afor

Grou p II , Ihal is , the y hav e onl y 6 l o 4 9 pilots , o r onl y 6 t o 2 4 aircrafi . Othe r aircraf t operator s ofth e sam e siz e ar c include di n Grou p II I fo

r hazmal sanctio n guidanc e purposes . (4 ) Grou p IV i s comprise do f al l olhe r ai r carrier s an dcomniercja l operator s no t meetin g th e criteri afo

r Group s 1 , II , o r

III . Othe r

aircraf i operator s ofth e sam e siz e ar e include di n Grou p I V fo r hazma t sanctio n guidanc e purposes . b . Busiiics s Entity . A business , corporation , partnei-ship , Sub- S Coriioraliqn , sol e proprietor , association , o r an y typ e o f

commercia l entily . A

n individua l wh o offer s ahazma t shipmen t i n ai r transportatio n i

n th e cours e o f

hi s o r her seli-owne dbusines s fall s int o thi s category . I

t include s anon-profi t

organizatio n an dallolhe r entitie s define duiidci

- th e HMR' s definitio n o f

perso n (4 9 C.F.R . § 171.8) , wit hth e exceptio n o f

a n individua l (a s define dbelow) . { ••• . c . Busines s Entit y tha t Regularl y Offers , Accepts , o r Transport s Hazardou s Material s i n th e Cours e of

It s Business . A busines s entitytha t offer s hazma t

wit hsom e anticipate d frequency , o f

purport s t o d o so , regularl y offer s hazmat . Fo r example , acatalogu e compan y tha t offer s hazardou s materia l t o it s customer s woul dfal l int o thi s category , eve n thoug hit s actua l sal e o r transportatio n ofth e hazma t i s infrequen t

o r limited . Thi s categor y include s manufacmre r

o r distributo r

ofhazma t

an dafreight

forwarder . d . Busines s Entit y tha t Uses , Handle s Hazma t i n th e Cours e o f

It s Business . Thi s categor y encompasse s th e business.dia l utilize s hazma t i n it s busines s bu t

doe s no t offer it fo r transportatio n o n aregular basis , a s describe dabove . Fo r example , ariianufacturer o f ahdn

hazma t produc t tha t use s hazmat'i n th e manufacUirin g proces s coul dfal l int o thi s category . It mus t b e establishe dtha t

th e compan y ordinaril y doe s no t offer th e hazma t

i t utilize s fo

r transportation , an dth e shipmen t i n thi s instanc e represent s an isolate dincident . Thi s typ e o f busines s i s hel dt

o ahighe r

standar dthan th e busines s entity tha t ha s no regular

involvemen t C-1 4 

# r \10/01/0 7 2150.3 B

wid i hazmat . Th e describe dbusines s entit y receive s th e subjec t hazardou s materia l i

n transporlaUo n an du.'^cs it i n it s business ; thus , i

t i s clearl y on notic e ofth e hazardou s natur e o f th e materia l an dth e regulator y requirement s t o whic hth e hazma l i s subject . e . Declare dShipment . Fo r purpose s o f

thi s sanctio n guidance , adeclare dshipmen t ha s a t leas t on e o f th e followin g conmiunicativ c indicia—markings , labels , and/o r shippin g paper s tha t mee t th e communicativ e requirement s ofth e HMR . A packag e tha t ha s shippin g paper s tha t declar e th e content s a s hazardou s material , bu t i s otheiAvis e no t

marke do r

labeled , fall s int o thi s category . Fo r

puipose s o f

dii s definition, ' ashippin g pape r i s an y documcnLt o whic hhandler s refe r i n th e nomia l cours e o f

transportatio n an dthat

complie s wit

hon e o r mor e ofth e communicativ e requirement s i n th e HM Rfor

shippin g papers . Siniilarty, aproperl y marke dan d labele dpackag e tha

t lack s shippin g paper s als o fall s inl o thi s category . An exampl e o f a shipmen t tluit woul dno t

mee t thi s definitio n ison e wher e th e offero r state s that

th e shipmen t contain s hazmat , but

onl y i n paperwork

t o whic hth e handler s d o not refe r i n th e norma l cours e o f transportation . • ' f;--Hazmat

- A hazardou s material,'a s define di n 4 9 C.F:R . § 171.S , include s an di s interchangeabl e wit

hth e termdangerou s goods , a s use di n th e Intenialioha l Civi l Aviatio n Organizatio n (ICAO ) Technica l Instructions . g . Individua l - A human wh o offer s ashipmen t o f hazardou s materia l i

n hi s o r he r persona l capacity , withou t

an y busines s puipos e an dno t a s par t o f acommercia l enterprise . h . Intentiona l o r

Deliberat e Violatio n - A violatio n fall s int o thi s categor y whe n th e offeror , acceptor , ai r

carrier , o r

aircraf t operato r ha s knowledg e ofth e requirement s o f th e HMR , an dwillfull y circumvent s o r attempt s t o circumven t

thos e requirements . Fo r example , a

n offero r wh o place s apropert y marke dan dlabele dhazma t shipmen t alon g wit

hproperl y complete d shippin g papers , int o an oveipac k marke da s printe dmaterial , ha s conunitte dan intentiona l o r deliberat e violation . i . Undeclare dShipmen t - I f ashipmen t

doc s no t meet th e definitio n o f

declare dshipment , it i s a n undeclare dshipment . j . Undeclare dShipmen t Hazma t Exceed s Quantit y Limit s fo r Al l Aircraf

t - An undeclare dshipmen t

tha t i s offere dfo

r transportatio n o n o r

transporte do n an y aircraf t an dth e quantit y o f

hazardou s materia l exceed s th e limit , pe r package , for

transportatio n o n carg o aircraft , a s establishe di

n th e 4 9 C.F.R . § 172.10 1 Table . k . Undeclare dShipmen t Hazma t Exceed s Quantit y Limit s fo r Passenge r

Aircraft - An undeclare dshipmen t

that i s offere dfo

r transportatio n o n o r

transporte do n apassenge r aircraft , an dth e quantit y o f

hazardou s materia l exceed s th e limitafion , pe r package , for

transportatio n o n passenge r aircraf t (bu l no t for transportatio n o n carg o aircraft) , a s establishe di n th e 4 9 C.F.R . § 172.10 1 Table . I . Undeclare dShipmen t Hazma t Forbidde n o n Al l Aircraf t - A n undeclare dshipmen t that i s offere dfo

r transportatio n o n o r

transporte do n an y aircraf t an dth e hazardou s materia l i s forbidde n i

n ai r transportatio n o n carg o aircraft , a s establishe di n th e 4 9 C.F.R . t; 172.10 1 Table . 

### '5K ) C-1 5 

# 15^ 0 J ^10/01/0 7 2150.3 B

ni . Undeclare dShipmen t Hazma t Forbidde n o n Passenge r Aircraf t - An undeclare d shipmen t that i s offevedfo

r transportatio n o n o r

liausporte do n apassenge r aircrafi , an dth e hazardou s materia l i s forbidde n i n ai r transportatio n o n passenge r aircraf t (bu t no t i n ai r ^ v transportatio n o n carg o aircrafi) , a s establishe di n th e 4 9 C.F.R . § 172.10 1 Table . n . Undeclare dShipmen t Withi n Ha/ma t

Quantit y Limitations . (1 ) I f Ihe undeclare dshipmen t i s offere dfor

transportatio n o n o r

transporte do n apassenge r aircraft , th e quantit y o f

hazardou s materia l mus t bc.wilhi n th e limitafion , pe r package , for transportatio n o n passenge r aircraft , a s eslablishc din-.th e 4 9 C.F.R . § 1-72,10 1 Table . (2 ) I f th e undeclare dshipmen t i s offere dfor

transportatio n on acarg o aircraft,-bu t no t transported , th e quantit y o f hazardou s materia l mus t b e withi n th e limitation , pe r package , fo

r transportatio n o n passenge r aircrafi , a s establishe di n th e 4 9 C.F.R . § 172.10 1 Tabic . (3 ) I f th e undeclare dshipmen t i s offere dfo

r transportatio n on an dtransporte do n acarg o aircraft , th e quantit y o f

hazardou s materia l mus t b e withi n th e limitafion , pe r package , fo

r transportatio n on carg o aircraft , a s establishe di n th e 4 9 C.F.R . § 172.10 1 Table . Al l othe r undeclare dshipment s fit withi n th e definition s fo r Undeclare dShipmen t

Hazma t Exceed s Quantit y Limit s for...Aircraft , o r Undeclare dShipmen t

Hazma t Forbidde n on...Aircraft , se e above .



# •: . , ^ ^ C-1 6 -...^y^- ^ XJ 5 S '10/01/0 7 2150.3 B 

### RIS KCATEGORIE S (Figur e C-2 ) CATEGOR Y "A " {Maximu m Weight } Categor y"A " material s ar e material s tlia t whe n release d i n th e confine s o f a n aircraf t ca n potentiall yhav e a catastrophi c effec t o n a n aircraft' s abilit yt o continu e saf e flight , resultin g i n a cras h o remergenc ylandin g causin g injur yo rdeat h t o passenger s an d fiightcrew , a s wel l a s person s o n th e ground . Clas s 1 Explosives : Divisio n 1.1,1.2,1.3 , Clas s 2 Compresse d Gase s Al l 2.1 , 2. 2 wit h Subsidiar yRis k 5. 1 an d Al l 2. 3 PI H Zone s A- D Clas s 3 Flammabl e Liquid s P G I , II , an d (PIH ) Clas s 4 Divisio n 4. 1 Flammabl e Solid s P G I , & (Matches )

Divisio n 4. 2 Spontaneousl yCombustibl e Material s P G I (Pyrophoric ) Divisio n 4. 3 Dangerou s Whe n We t P G I Clas s 5 Divisio n 5. 1 Oxidizin g Liquid s an d Solid s P G I , II , e.g. , "Chemica l Oxyge n Generators "

Divisio n 5. 2 Organi c Peroxide s P G 1 1 (Typ e A,B,C,D ) Clas s 6 Divisio n 6. 1 Toxic/Poisonou s Material s P G I (PIH ) Clas s 7 Carg o Aircraf t Onl yQuantitie s o n Passenge rAircraf t Clas s 8 Corrosiv e Materia l Liqui d P G I an d (PIH ) Forbidde n Material s (Se e 4 9 C.F.R . § 173.2 1 & ICA O Technica l Instructions ) Forbidde n Hazma t liste d i n Dangerou s Good s Tabl e 4 9 C.F.R . § 172.10 1 

### CATEGOR Y "B " {Moderat e Weight } Th e material s liste d i n Categor y"B " ar e material s tha t ma yno t pos e a n immediat e threa t t o th e safet yo f a flight , bu t ca n caus e deat h o rinjur yt o person s du e t o unintende d release s I n aircraf t cabi n areas , an d potentia l damag e t o aircraf t structure s ove ra longe rperio d o f tim e du e t o undiscovere d release s o n aircraf t structura l components . Clas s 1 Divisio n 1.4,1.5,1.6 , Al l Compatibilit yGroup s Clas s 3 P G II I Flammabl e Liquid s Clas s 4 Divisio n 4. 1 Flammabl e Solid s P G II , II I

Divisio n 4. 2 Spontaneousl yCombustibl e Material s P G W , 11 1 Divisio n 4. 3 Dangerou s Whe n Wo t P G II , II I Clas s 5 Divisio n 5. 1 Oxidizin g Liquid s o rSolid s P G II I

Divisio n 5. 2 Organi c Peroxide s (Typ e E,F,G ) Clas s 6 Divisio n 6. 1 Toxic/Poisonou s Material s P G I , I I ( NON - PI H )

Divisio n 6. 2 Infectiou s Substance s Clas s 7 Radioactiv e Materials , yello wlabe l II , whit e labe l I Clas s 8 Liquid s P G II , II I Solid s P G I , II , II I 

### Categor y"C " {Minimu m Weight } Th e material s liste d i n Categor y"C " ar e material s tha t presen t th e leas t amoun t o f ris k t o th e transportatio n system . Clas s 2 2. 2 Nonflammabl e Ga s Clas s 6 Divisio n 6. 1 Toxic/Poisonou s Material s P G II I Clas s 7 Al l othe rRA M (LSA , LT D QTY , Instruments , an d Articles ) Clas s 9 Miscellaneou s Dangerou s Good s {ORM- D an d Consume rCommodity } NOTE : Thi s guidanc e I s no t Intende d t o replac e th e experience d judgmen t o f a specia l agen t wh o i s convinced , base d o n th e evidenc e an d fact s o f a case , tha t th e failur e o f a n ai rcarrier , shipper , freigh t forwarder , o rpassenge rt o follo w establishe d regulation s ha s pose d a ris k t o aviatio n safety .

## EXHIBIT S SMIT H CABL E CP09AL001 2 j 2009-0976-RESPONDEN T # Descriptio n I D I N Aemai l dt d 2008090 8 Annie ; Itinerar y#137308 6 dt d 2008091 8 - 2 p p x B Ai rWaybil l dt d 2008091 0 - 1 p p x C Af f Linn e dt d 2009060 9 - 3 p p V x D photo s - 4 p p ^ E A S Ai rCarg o DG Irregularit yRp t - 1 p p x F emai l Coo k

dt d 20080915- 2 p p x G Note s - 6 p p X H FAA' s respons e t o discover y- 9 p p x I Calenda rfo rSe p 200 8 xx JFrom : annt a [annfe@catv.com J

Sant : Tuesday , Septembe r09.200 8 11:5 7 A M To : 'Iinne04@netzero,ne f Cc ; 'Shannon ' Subject : Freigh t fro m Ketchika n 

### W e or e schedule d wit h Aep j ou t o f Ketchikan , 247-570 1 t o pic k u p 3 pollet s o f tools ; luggag e an d wha t no t tomorro wmorning , Septembe r1 0 a t aroun d 8am . I t wil l b e shippe d vi a fiold Streak , airwa ybil l # 7471263 2 an d should.arriv e i n Fairbanks b yThursda yo t th e latest . Th e 4 wheele ran d ga s dril l wil l b e pu t wit h th e truck/traile rt o b e shippe d vi a th e Alaska Marin e Highwayo n Monday , Septembe r15 ^ t o avoi d prablem s wit h th e hazma t paperwor k a t th e airport . W e wil l nee d t o arrang e ho w t o ge t thes e item s t o Fairbank s onc e the yarriv e i n Whittie ro n Septembe r1 8 . I have attache d th e ferr yconfirmatio n agai n t o thi s e-mai l s o tha t w e ca n mak

e arrangement s fo rsomeon e i n Ketchika n t o hel p u s pu t i t ont o th e ferr yfo r us . Onc e i t leav

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### ww;-7.ferryala8)ca*coin Itinerai y NiJinJier : 137308 6 Telephone : (907 ) 465-394 1 (800 ) 642-006 6 FAX : (907 ) 465-B82 4

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### AFFtDAVIT O FTODD LINN E STAT E O FMISSOUR

I )

) s s COUNT Y OFiiEyr\ s ) Tod dLinne . bein g first

duly sworn , depose s an

dsays : 1 . I n th e summer

o f 2008 » I wa s employe db y Smit h Cabl e Systems , Inc . ("Smit hCabl e ") . Smit

h Cabl e contracte dt o perfor mwor k i n Ketchikan , Alaska , that summer . I hav e worke dfo r Smit h Gabl e for

f years . Durin g that

time , I wa s mad e aware o f an dfamilia

r wit h rule s an dregulation s applicabl e to th e transportatio n o f hazardou s material s o n aircraf t ("Hazmat") . 2 . A t th e beginnin g o f

Septembe r

2008^ ou

r jo b wa s finishing up andw e bega n th e proces s o f

packin g u

p our equipmen t

an dshippin g i t

t o eithe r Fairbank s (where our nex t jo b was ) o r

Anchorag e (wher e ou r

home bas e was) . Ou r

company wa s sendin g some item s vi aair

carg o t o Fairbank s andsome thing s vi ath e maritime highway . 1 assiste di n th e demobilizatio n o f

th e company' s equipment an dit s preparatio n fo

r shipmen t t o variou s destinations . 3 . On September

10 , 2008 ^ m

y co-worke r

To mplO . / & K andI wer e advise d t o ge l apalle t

o f item s ready t o b e shippe dai r cargo . W

e spen t nearl y tw o hour s i n th e mornin g workin g i

n th e rai n preparin g material s fo r shipment

fromKetchika

n t o Fairbanks . We kne w thi s material wa s goin g t o b e shippe dai r cargo , an

dw e knew i

t coul dno t contai n hazardou s material s withou t certai n require dnotification . We place d Affidavi t o f Tod dLion c Pag e I o f 3 

## i^j:;;C)EpNI3pipJi:: ^

>• • 'i'^'rtCAS E NUMHERl'-:?-? . - I LVi:(CASE.NyMBER)>;5 ^

### al l th e item s o n th e palle t an dsecure dthe mi

n preparatio n fo

r th e pic k up . 1 woul dno t hav e place dpropan e canister s or spra y can s o n thi s pallet

becaus e I kne w tha

t this paltet , wa s bein g transferre dfo

r ai r carg o t o Fairbanks , an

dthes e are hazardou s substance s tha t mus t b e reported . 4 . A n employe e o f

Aerl , alocal company whic h pick s u p an ddeliver s item s fo r ai r cargo , arrive daroun d9:0 0 a mwith abo x truc k

to pic k u p th e shipment . Th e employe e ha

dn o wa y to pic k u p th e palle t

loa dandplac e i

t i n th e bac k

ofth e truck . We expecte dhi mt o hav e aforklif t o r simila r too l t o loa

dth e pallet

int o th e bac k

o f hi s truck . Becaus e w e di dno t

hav e aforklift , w e hadto unloa dth e entire palle t

an dloadal l th e item s b y handinto th e bac k

o f th e truck . We di dno t

plac e propan e cylinder s into th e back o f th e truck , no r

di dw e plac e any aeroso l spra y can s i n th e bed . Th e employe e assiste du s i

n placin g the item s i

n th e bac k

o f hi s truck . 5 . We never

saw th e loa

do f item s again . I d o no t

kno w ho w they go t

ftx)m th e back ofth e truc k

onto apalle t

i n th e Alask aAi r

Carg o building , I understoo dtha t th e Aer l employe e wa s responsibl e fo r placin g th e item s o n th e palle t a t th e building . 6 . I hav e n o ide aho w a n aeroso l paint

ca n or ga s cylinde r

go t into th e material s that

were shippe dt o Fairbank s for Smit h Cabl e Systems . To man dI handle d everythin g that

wa s suppose dt o b e shipped , an dth e pai mca n andga s cylinder s were no t par t o f Smit hCabl e Systems ' shipment .

Affidavi t o f Tod dLinn e Pag e 2 o f 3

### 7 . W e di dno t us e an y aerosol spra

y pain t o n ou r jo b an dI a mnot awar e o f ou r compan y buyin g o r using suc haproduc t o n thi s job * 

# rLcrAA CK. L Kjy^>j^<^-si _ 

### TOD D LIN E i i ^ 

### SUBSCRIBE

D AN D SWOR N t o befor e m e thi s 5 da

y o f June , 2009 .

Notar y Public i n an dfo r Missour i M y commissio

n expires : \\'^Sl O AMAND AF, WAD E Notai yPubli c- Notai ySea l Stat e o f Missour i Commissione d lo rTexa s Count y M yCommisski n Expires : Novembe r25,201 0 Commissio n Numbe r0639275 6

Affidavi t o f Tod d Linn e Pag e 3 of 3U.S . DliPAKrMliNTUFIRAN.St'ORI'ATlO N FRDEKA L AVIATIO N Al>Ml!NISTRAT[O N SECURIT Y & HAZARDOU S MATERIAL S 

### 3 - 1

Photograp hshow s the propan e an dspra y pai moffereda s carg o b

y SMITH CABL

E SYSTEMS . Photographtake n o n September 15 , 2008 , b y Kyl e Forbes , ASA A KTN , an

de-maile dthe sam

e day . Th e propan e an

dpaint wer e dispose dof

b y ASA A statio n personnel , KTN . Th e picture s wer

e downloade ddirectl y frome-mail . N o alteration s wer e made to the photograph s other tha n copyin g themfromLotu s Note s t o Microsof t Otfic e Word .

Intervlflwed/Reviewe d O n B y 

### Specia l Agent Jeffre y Deit z FA AFor m 1600-32- 1 o-es) 

### i^ ^ DEEENDANTC;^ : EXHIBITiNO::::M2l± E

r, ' -^HCAS E NUMBER)'-.: ' 'C' r At Fil e No . 

### 2008AL70004

5 FO R OFFICIA L US E ONL Y (Publl t tvmirabtm yto b m (f«(anirffia d ufttf«rf i U.S.C . SSi )U.S . DHPAK'lMtN T o r TRANSPORTATfO N rEDERA t

AViATIO N A1>MINISTRAT10 N SKCUdir

y & MAZARIXH/. S MATERIAL S



### Photograp hi s asecon dvie w ofth e hazardou s materials . Th e propan e an

dpaint were dispose do f

b y ASA A statio n personnel , KTN . The picture s wer

e downloade ddirectl y fro

me-mail . N o alteration s wer e made to the photograph s other tha n copyin g themfro

mLotu s Note s t

o Microsof

t Offic e Word .

Interviewed/Rovlewfl d O n A t e y 

### Specia

l Agent Jeffre y Deitz 

# 4 $ FAAFor m 1600-32- 1 (o-oo ) 

# V Fil e No . 

### 2008AL70004 5 FO R OFFICIA L US E ONLY (Publi c •YaflaMliy t o b 9 dMtrmlnt l unda r

5 US.C . BS yU.S . DFPAR l MEN T Ol

- TRANSI*ORTATIO N FEDKIIA L AVIAIIO N ADMiNISTRAHO N SHCURiTV * HAZARDOU S MATERIAL S 3 - 3



### Photograp hshow s aclos e u p o f one ofth e Propan e Cylinders . Th e propan e andpain t

were dispose do f

b y ASA A statio n personnel , KTN . Th e picture s wer

e downloade ddirectly fro

mFujifilmCamerato thi s document . N o alteration s were made t o th e photograph s othe r

tha n copyin g themfro

mLotu s Note s to Microsof t Office Word .

Interviewed/Reviewe d O n A t B y 

### Specia

l Agen t Jeffre y Deit z FA AForn i 1600-32- 1 (ft.ao ) # ^ Fii B No . . 

### 2O08AL700O8 1 FO R OFFICIA L US E ONL Y (PubU e mvtUtbUtt

r » b w detvnnlnti l und w 8 U.S.C . Kl )U.S . DEPARIMRN T O FTRANSPORTATIO N FEDERA L AVIATIO N ADMINISrill A IIO N sKcuRrn r&

. HAZARDOU S M AH'RIAL S 3 - 4



### Photograp hshow s aclos e u p ofth e back

ofth e spra

y paint . The propan e an

dpain t wer e dispose do f

b y ASA A statio n personnel , KTN . The picture s wer

e downloade ddirectly fromFujifil mCamerato thi s document . N o alteration s wer e mad e t o th e photograph s other

tha n copyin g themfro

mLotu s Note s to Microsof t Office Word .

Interviewed/Reviewe d O n A t By 

### Specia

l Agen t Jeffre y Deit z Fil e No . 

### 2008AL70008 1 FA AFom i 1600-32- 1 (»4a i 

# l ^



# ^ 

# Ai" ^ FO R OFFICIA L US E ONL Y (Publi c wOtbillt y t

o b * d»frmin M imO f

5 U.S.C . SSi iSEP-10-2Q0 e 18:5 ? FROM : 70:1907271493 3 P.l'- l



## Ai r Carg o Dangerou s Good s Irregularit y Report INSTRUCTIONS : Phon e o r fa x thi s complete drepor t t o th e FAA . Photograph s ma y b e take n t o suppor t -* . (h e incident . (T

o repor t spill s o r leak s involvin g dangerou s goods , us e DO T Form5300.1 , which ma y b e foun di n Firs t Class . C o lo : AS

A Conferences/A S Environmenlal/S& E Forms . "p t Undeclared/Hidde n Typ e o f incident" . ' Q Erroneousl y declare d

Q Insufficient/im

p rope r absorptio n material s Q Quantit y exceed s allowe dlimit s Q Impropc

T insid e container s Q Insid e container s no t

orienle da s show n o n th e packagin g INITIA L INCIDEN T INFORMATION : DatciTim c discov c Where an dho w discovere d(e.g . X-ray . physica l inspection , ^iplll . cic) : NaiTic/phone numbe r

ofperso n reporting : Wher e ar e Ihe dangerou s good s now ? n/ \Z^p^p^V

- I^;fe>p/1.,'; ^ ( , ^ y4f^^^ ^ 

# 1 Z^i^3' ^ CARG O INFOUMATION : Ai r Waybil l numberofttemCs ) containin g Dangerou s Goods : _ _ Typ e o f carg o involve d(e.g . Goldstreak , Goldrush . Cargo , etc) : " ^ y^\C7y"|'T ^

Ar c there any nCTabelloli'thSitsideVfthel^ ^ ^rf^l o I f yes , wha t kind?/^ ^ Proper Sh*rpriingNarne^ "j j U N Numbe r 

# z. m

Tota l numbe r ofpiece s offere db

y shipper ; 'Z'M ^ Total numbe r

o f piece s containin g Dangerou s Goods : ."Z * SHIPPE U INFORMATION : Name : Address- , Cny . ^AfXlhorp^L ^ ; state : .^Oi^v

- ^' P CodT^QS/v S Telephon e numbe r

1^C$i " 0\W6r ^ ^ INCIDEN T DKSCHJPTION : Describ e th e dangerou s good s tha t wa s found , includin g type , amount , bran dnam e or manufacturer , etc : ^fil ^ ^k^CT^ d <:i/yVxJ l OdU ^ SW^

- 

### PXAN V I^A_-^^ ^ 

## ^^^CKjUn c 

# y ZK-31(06A)3 ) ASAC0-O410-2-M1 2 K;:);;DEFENDANT K 

### :EXHIBlTNO?!ii^l ^

' '^l^ifCASE'NUMBER):^;:- :"TimCoolc " <Ti m.Cook @ AlaskaAir . com > 09/15/200 8 09:5 8 A

M T o Jef f Deit2/AAUFAA@FA

A c c bc c Subjec t AW B #7471-263 2 . Hello , I wa s workin g th e werehous e whe n th e shipmen t wH; h the ai r wa ybil l o f 7471-2G3 2 wa s drope d off . I sen d th e item' s tha t neede d t o b e screene d t o TS Aa s a know n shipper . The

m item' s wher e fin e s o i sen d i t t o th e ram

p t o b e loade d on aircraft . Late r tha t dayi t wa s bumpe d fro mth e aircraf t du e t o roo man d wa s sen t bac k t o ' th e werehous e wher e a rampe r spille d fe w peace s of f the palle t wher e 2 propan e bottle s fel l out . The n afte r tha t i di d a 100 % scree n an d foun d a spra

ypain t bottl e ful l i n th e botto mo f a actio n packe r crat e . . An ythin g yo u nee d pleas e emai l m e o f cal l me a t work . Than k yo u Ti mCoo k



# r \ ^ 

### f DEFENDAN T 1"Stephe n Camp " <Stephen.CQmp(g)Ata5kaAlr. c om > 09/15/200 8 09:4 3 A M T o Jef f Deitz/AAUFAA@FAA c c bc c Subject regardin g aw b 7471-263 2 Whil e pickin g u

p a'smal l beac h barbeque , tw o Colema n campin g propan e bottles , bot h o f whic h wer e halfwa yful l fel l out . The n Ti mCoo k screene d 100 % and foun d som e spra ypain t a s well . Afte r removin g the restricte d article s th e carg o wa s sen t o n fligh t 6 9 tha t evening .



# f

fhh060O ) /LK ^

## k-e ^ ^.-i,^, ^

^--Int/- t^4 ^

l ^ ^ ^, ^ 

# ^ysr ^ ^.^^ ^

o

[EXHlBIT^NQ^^^^'^^^' f U^A"^;.!'(CASE'NUM0efl)i'V.^D j

### RECOR D O FINTERVIEW ; Jessic aFreeman , Freight Driver , Aer

o Services , Ketchikan , A K

(907 ) 247-570 1 O n Septembe

r 14 , 2009 , th e undersigne dtelephonicall y interviewe dJessic aFreema n regarding the circumstance s surroundin g th e pic k u p of freigh t fro mSmit h Cable , an

d subsequen t offering ofth e freigh

t t o ASA A i n Ketchika

n o n Septembe

r 10 , 2008 , i

n whichundeclare dhazardou s material s were discovered . Prio r to the intervie w Freema

n was informedtha

t th e purpos e ofth e intervie w wa s fo r the investigatio n o f

aregulatory violation . Freema

n agree dto b e interviewe dan drelate dthe following : Freema n state dtha

t sh e doe s no t

remember

thi s particula

r shipment . She stated tha t i t wa s no t unusua l t o brea k down apalle t

fo r loading i n her truck an dre palletizin g th e loa

da t ASAA . Freema

n als o state dtha

t i t wa s not unusua l fo r he r t o hav e more tha

n on e shipment

i n the truc k

a t atime . Freema n sai dtha t becaus e o f

liabilit y reason s sh e woul

dalway s keep th e shipment s physicall y separate . Becaus e th e compan y hel dhe r personally responsibl e andliable , she woul densur e tha t if mor e tha n on e shipment

wa s present i n th e tmc k

tha t they woul dnot

mix . Freema n state dtha

t she ha s picke du

p freigh t fo r ove r ayea r andneve r ha da mistak e o r complaint .

Jeffrey'L . Deitti , Specia

l Agen t Hazardou s Material s Specialis t

\ ^ ^ 

# fA AOOOO ^

# z/^'^ " /f^ A 

# J^X t '^^ ^ ' (^V ^ 

# a

# ji j 2^?-57^ ^

^ ^^""^' ^

''^' ^ t.- . W ^ ^

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# fAA000D 6 

# r

A \ P9



### AGEN T STATEMENT : Jeffre y L, Deitz , Special Agen

t (SA) , Federal Aviatio n Administration , Offic e o f

Securit y an dHazardou s Materials , 22 2 Wes t 7" ^ Avenu e #14 , Anchorage , Alaska , 99523 , Telephon e (907)271-5003 . '* . 

### Afte r receivin g acop y ofth e letter submitte dt o Glen

n Brown b y Marsto n & Cole , I pulle dth e cas e file andwen t ove r th e contents . I n th e Affidavit

of ToddLinne , Linn e state s tha t h e an dhi s coworker

never loade dany propan e cylinder s no r a n aeroso l ca

n o f paint . I n th e ASAA Dregularit

y Repor t i t state s tha t th e propane wa s discovere dinsid e a small stove , andwhe n th e res t o f thipmen t wa s searchedth e paint

wa s found . All hazma t wa s hidde n an

dno t visibl e to thos e loading it . I n m y note s I foun

dastatement

fromASA A employee , Stepha n Camp . I

n thi s statement Cam p state s tha

t whil e pickin g u

p asmall beac h barbeque , tw o Coleman campin g propan e bottle s fel l out . H e ha

dTi mCoo

k screen th e res t

o f th e shipment

wher e th e pain t wa s discovered . Again th e hazma t i s sai dto b e hidde n fromview . I als o foun

di n m y notes , referenc e t o atelephon e conversatio n tha t I ha dwit h Ro n Smith , President

o f Smit h Cabl e Systems , wher

e h e state dtha

t hi s internal investigatio n showe dtha

t they di dship th e item s an dtha t the y ha dagrill . Thi s conversatio n took

plac e o n September

27 , 200 8 a

t 113 5 hours .

^'Jdt^e y LDei^s , Special Agent / Hazardou s Material s Specialis t



# fAA0C00i >I U.S . DEPARTMENTO FTRANSPORTATIO N ' FEDERA L AVIATIO N ADMINISTRATIO N

. SECURIT

Y & HAZAKDOU S MATERIAL S 

### AGEN T STATEMENT : Jeffre y L . Deitz , Specia

l Agent (SA) , Federa

l Aviatio n Administration , Offic e o f Security an

dHazardou s Materials , 22 2 Wes t 7' ^ Avenu e #14 , Anchorage , Alaska , 99523 , Telephon e (907)271-5003 . On September

15 , 2008 , thi s offic e receive dnotificatio n fromAlaskaAirline s (ASAA ) Carg o Facilit y locate di

n Ketchikan , AK . Th e notificatio n state dtha t o n September

10 , 2008 , SMITH CABL E SYSTEM S offeredundeclare dhazardou s material s fo r air transportatio n fro

mKT N t o FAI a s par t o f a2 4 piec e carg o shipment . ASA A reporte dtha

t i n thi s shipment

offeredo n ASA A Air Waybill #747 1 2632 , wa s foun dto contai n tw o 16. 4 ounc e cylinder s o f Colema n Propan e fue

l (Petroleu mgases , liquefied , clas s 2.1 , U N 1075 ) an

don e 1 2 ounc e ca

n o f PremiumD6cor

spra y paint (Aerosols , flammable, clas s 2.1 , UN I 950) . ASA A i n KT N provide dphotographs , aD G irregularit y repor t andacopy ofth e Ai

r Waybill . Th e photograph s were taken o

n September

15 , 2008 , b y Kyl e Forbes , ASA A KTN , an

de-maile dt

o m e th e same day . Materia l Safet y Dat aSheet s (MSDS ) were obtaine dfo r bot h the Colema

n Propane an

dPremium d6cor spra y paint . On September

17 , 2008 , aLetter

o f Investigatio n wa s dispatche dto SMITH CABL E SYSTEM S concernin g m

y investigation . O n Octobe r 1 , 2008, 1 receive datelephon e cal l fromRo n Smith , President o f SMIT H CABL E SYSTEMS . H e wante dto acknowledg e th e receip t ofth e LO

I an dsai dtha t h e di dnot kno w anythin g about

the shipment

but woul dge t bac k to mc . On Octobe

r 27 , 2008 , not

havin g receive danythin g fro mRon Smith , I telephone dhim . H e apologize dfo

r not gettin g bac k

t o me an dsai dtha t a n interna l investigatio n conducte db y him confirme dtha

t they ha dshippe dth e hazardou s material s i n question . H e promisedt o sendawritte n account t o me . A s o f

November

5 , 2008 , nothin g ha s been received .

•V . 

### /JeTflrey L?t)eitz , Specia

l Agent Hazardou s Material s Specialis t /

interviewed/Ravlawe d O n . . A t 

### 3 y Special Agen

t Jeffre y Deitz ' ^.^ ^ 2008AL70008 1 FA AFor m 1600-32- 1 (B-M ) FO R OFFICIA L US E ONL Y fPi/bf/ c mvtIUIilllt

y t o b m dUtntOitt i und t

5 U.S. C 552 }U.S . Departmen t ANCHORAG E AVIATIO N

o f Transportatio n SECURIT Yan d HAZARDOU S ^ AUTERIAL S 222 Wes t 7 * Avenu e #1 4 Federa l Aviatio n Anchorage , Alask a 99513-758

7 Administratio n ^^ t W7 > 271500 3 Fax : (9071271-493 3 CERTIFIE D MAIL—RETUR N RECEIP T REQUESTE D Smit h Cabl e System s Attn : President/CE O , ,r., q P O Bo x11156 5 vsh H i - / '-' - Anchorage , A K9951 1 Dea rSi ro rMadam : Lette ro f investigatio n Fil e Number : 2008AL70008 1 O n Septembe r15 , 2008 , th e Federa l Aviatio n Administratio n (FAA ) Offic e o f Securit yan d Hazardou s Material s (ASH ) branc h offic e i n Anchorage , Alask a wa s notifie d o f undeclare d hazardou s material s discovere d b yAlask a Airline s (ASAA) , a t th e Ketchika n airpor t (KTN) . Specifically , ASA A reporte d t o thi s offic e tha t o n Septembe r10 , 2008 , you rcompan yoffere d a 2 4 piec e shipmen t t o ASA A fo rai rtransportatio n a s carg o fro m KT N t o Fairbanks , A Ko n ai r waybil l # 747 1 2632 . Durin g th e handlin g process , tw o 16. 4 ounce/46 5 gra m cylinder s o f Colema n Propan e (Petroleu m gases , liquefied , clas s 2.1 , UN1075 ) wer e discovered . Thi s le d t o furthe rinspection/screenin g wher e on e 1 2 0 2 ca n o f Premiu m D6co rspra ypain t (Aerosols , flammable , clas s 2.1 , UN1950)wa s discovered . Liquefie d petroleu m gase s ar e forbidde n fo r transportatio n o n a passenge rcarryin g aircraft . Th e Federa l Aviatio n Administratio n is conductin g a n Investigatio n int o thi s matte ran d preliminar yevidenc e indicate s tha t yo u ma yhav e violate d th e Federa l Hazardou s Material s Regulations , 4 9 Cod e o f Federa l Regulations . W e wis h t o offe ryo u th e opportunit yt o furnis h explanator yinfonnatio n reflectin g extenuatin g o r mitigatin g circumstance s regardin g thes e allege d violations . You rwritte n repl ywil l b e neede d withi n te n (10 ) workin g day s o f receip t o f thi s lette rt o resolv e thi s matte rpromptly . I f n o respons e is received , thi s cas e wil l b e processe d withou t th e benefi t o f you rreply . Pleas e includ e i n you rresponse , th e hazma t trainin g record s fo ranyon e involve d wit h thi s shipment . Sincerely ,

laterial s Specialis t Hazardou s Material s Branc h Anchorag e Offic e

### UNITE D STATE S DEPARTMEN T O FTRANSPORTATIO N

OFFIC E O FHEARING S WASHINGTON , D.C . I N THE MATTE

RO F 

## SMIT H CABL E SYSTEMS , INC.f ^ [ I © [ 1 I ] | 7 FAA DOCKET NO . CP09AL001 2 11 | | JU N - 7 201 0 (Civi l Penalt

y Action ) 

## MARSTO N & COLE , P C DM S NO . FAA-2009-097 6 FAA' S RESPONS E T O SMIT H CABLE' S FIRS T DISCOVER Y REQUES T Complainant

Federa l Aviatio n Administratio n ("FAA") , through counsel , hereb y respond s to th e variou s discover y request s containe di n Respondent' s Discover y Request s t

o Administrato r

serve do n th e FA

A b y respondent

Smit h Cabl e Systems , Inc . ("Smit h Cable") . REQUES T FO RPRODUCTtO N NO . 2 : Pleas e produc e acopy o f an y recorde dwitnes s interviews . FAA' S RESPONSE : Th e FA A ha s n o recording s o f

an y interview s o f

witnesse s i

n thi s matter . REQUES T FO RPRODUCTIO N NO , 2 : Pleas e produc e acopy o f any note s take

n durin g any witnes s interviews . FAA' S RESPONSE : On Januar y 13 , 2009 , th e FA

A provide dth e releasabl e portio n o f it s enforcemen

t investigativ e repor

t ("EIR" ) to Smit

h Cable . I

n additio n t

o the note s containe di

n tha t report , th e FA

A herewit h produce s th e following : FAAOOOO l Email fromStephen Cam p o f AlaskaAirline s to Jef

f Deit z FAA0000 2 Email fromTi mCoo k o f Alask aAiriine s t o Jef

f Deit z FAA0000 3 Jef

f Deitz' s note s o f

intervie w wit

h Jessic aFreema

n of Aer o Service s 

## . C ^

:^:f?DEFENDAN T . |EXH!BITVNO;;|Ei^ ' 

## i>a^MiOTD?[D^^:iS' s ••-.^•a'i(CAS E NUMBER):;ia%" |FAA0000 4 Recor do f Intervie w o f

Jessic aFreema n b y Jef

f Deit z FAA0000 5 JefTDeitz' s note s o f intervie w wit hRo n Smit ho f Smit hCabl e FAA0000 6 JeffDeitz' s Agen t Statemen t REQUES T FO RPRODUCTIO N NO . 3 : Pleas e produc e acop y o f al l note s take n b y Jeffre y Deit z durin g thi s investigation . FAA' S RESPONSE : O n Januar y 13 , 2009 , tli e FA A provide dth e releasabl e portio n o f it s enforcemen t

investigativ e repor t

t o Smit hCable . Beyon dth e materia l provide dfromth e EI R an di n respons e t o Reques t fo r Productio n No . 2 above , th e FA A ha s n o note s take n b y FA A Specia l Agen t

Jeffre y Deit z i n it s custod y o r contro l tha t

ar e responsiv e t o thi s request . REQUES T FO RPRODUCTIO N NO . 4 : Pleas e produc e acop y o f al l note s take n b y an y othe r FAA investigato r

involve di n thi s investigation .

. FAA' S RESPONSE : O n Januar y 13 , 2009 , th e FA A provide dth e releasabl e portio n o f . it s enforcemen t

investigativ e repor t

t o Smit hCable . Beyon dth e materia l provide dfromth e EIR , th e FA A ha s n o note s take n b y an y o f it s investigator s i n it s custod y o r contro l tha t

ar e responsiv e t o thi s request . REQUES T FO RADMISSIO N NO . 1 : Pleas e admi t tha t aSmit hCabl e employe e di dno t prepar e th e Alask aAi r

Carg o Ai r

Waybil l Numbe r

027-747 1 2632 . FAA' S RESPONSE : Denied . Becaus e th e waybil l a ) idenfifie s th e shippe r a s "Smit hCabl e Systems" ; b ) indicate s ashipper' s addres s that , o n informatio n an dbelief , i s a n addres s whic hSmit h Cabl e use s fo r

it s business ; c ) indicate s an Alask aAi r Carg o shipper' s accoun t numbe r that , o n informatio n an dbelief , i s an accoun t

numbe r use db y Smit hCable ;

Smith Cabl e Systems . Inc . -2

- DM S No . FAA-2009-097 6d ) indicate s a n Alask aAi r Carg o customer' s I D numbe r that , o n informatio n an dbelief , i s an I D numbe r

use db y Smit hCable ; e ) identifie s th e consigne e a s "Smit hCabl e Systems" ; f ) indicate s aconsignee' s addres s that , o n informatio n an dbelief , i s an addres s whic hSmi't h Cabl e use s for

it s business ; g ) indicate s an Alask aAi r Carg o consignee' s accoun t numbe r that , o n infonnatio n an d belief , i s an accoun t

numbe r use db y Smit hCable ; h ) reads , i n th e "Accountin g Information " portio n ofth e waybill , "SMIT H CABL E SYSTEM S INC." ; i ) indicates , i n th e "Accountin g Information " portio n ofth e waybill , a n addres s an d customer' s I D numbe r

that , o n informatio n an dbelief, ar e bot huse db y Smit hCable ; j ) indicates , i n th e shipper' s certificatio n portio n ofth e waybill , tha t th e shipper' s certificatio n wa s execute dfo r "SMIT H CABL E SYSTEM S INC" ; an d k ) indicates , i n th e shipper' s certificatio n portio n ofth e waybill , tha t th e waybil l wa s signe d b y th e "Shippe r

o r hi s Agent" , th e FA A doe s no t

admi t tha t aSmit hCabl e employe e di dno t prepar e th e waybill . REQUES T FO RADMISSIO N NO . 2 : Pleas e admi t tha t aSmit hCabl e employe e di dno t sig n th e Alask aAi r

Carg o Ai r

Waybil l Numbe r

027-747 1 2632 . FAA' S RESPONSE : Denied . Althoug hth e lon e signatur e o n th e waybil l i s presentl y illegibl e t o th e FAA , th e waybil l itsel f recite s tha t

i t wa s signe db y th e "Shippe r o r hi s agent" , allowin g fo r

th e possibilit y tha t

it wa s signe db y a n employe e o f th e shipper , Smit hCable . INTERROGATOR Y NO . 1 : Pleas e lis t al l fact s tha t

suppor t you r contentio n tha t

Aer l compan y wa s authorize dt o ac t

a s a n agen t

fo r SmithCable .

. FAA' S RESPONSE : Smit hCabl e provide da n Affidavi t o f Tod dLinn e date dJun e 5 , 200 9 t o FAA . I n tha t

affidavit , Mr . Linn e relate s that , i n Septembe r 200 8 whil e workin g fo r Smit hCabl e i n Ketchikan , h e helpe dSmit hCabl e prepar e apalle t o f item s t o b e shippe dai r carg o fromKetchika n t o Fairbanks . Specifically , Mr . Linn e relate s tha t o n Septembe r

10 , 2008 , "s

A ( V d / SmithCabl e Systems . Inc . -3

- DM S No . FAA-2009-097 6

### h e personall y prepare dth e item s fo r th e ai r carg o shipment

fro mKetchika

n to Fairbank s and gav e themto "Aerl" , whic h h e i n bi s affidavit describe s a s " aloca

l company which pick s u

p an d deliver s item s fo

r air cargo" . Mr . Linn e specifically describe s ho w h e assiste di n "placin g th e item s i n th e bac k o f [th e 'AerP company employee's ] truck. " Th e waybill describe di

n th e FAA' s respons e to Reques t fo r Admissio n No . 1 abov e i s date dSeptember

10,2008 , originate di

n Ketchikan , identifie s Fairbank s a s th e airpor t o f destination , an

didentifie s Smit

h Cabl e i n numerou s spot s a s bot

h th e shippe

r andthe consignee . Althoug hth e FA

A ha s no t allege dtha

t another compan y serveda s Smit

h Cable' s agen

t i n dispatchin g th e shipment

a t issu e i n thi s matter , thes e facts amply suppor t aconclusio n tha

t Smit hCabl e di di

n fac t authoriz e Aero Service s t o ac t a s Smit h Cable' s agent . REQUES T FO RPRODUCTIO N NO . S : Pleas e produc e an y document s whic

h suppor t the propositio n that

Aer l compan y wa s authorize dt

o ac t a s a n agen t

fo r Smit h Cable. . FAA' S RESPONSE : All document s know n to th e FA A tha t ar e responsiv e to thi s reques t ar e already i n Smit h Cable' s possession , includin g th e waybil l describe di n th e FAA' s respons e t o Re<iues

t fo r Admissio n No . 1 abov e andthe Affidavit o f ToddLinn

e describe di n th e FAA' s respons e t

o Interrogator

y No . 1 above . REQUES T FO RADMISSIO N NO . 3 : Pleas e admi t tha t the hazardou s material s i

n questio n were place do n the palle t

b y eithe r employee s fo r

Aerl compan

y o r AlaskaAi

r Carg o employee s o r both . FAA' S RESPONSE : Denied . I n th e Affidavi

t o f ToddLinne describe di

n the FAA' s respons e to Interrogator

y No . 1 above , Mr . Linn e (1 ) identifie s himsel f a s aSmit h Cabl e \

Smit hCabl e Systems . Inc . -4

- DM S No . FAA-2009-097 6 

# (kemployee , (2 ) describe s how , o n Septembe r 10 , 2008 , he , a s par t

o f hi s wor k duties , personall y worke dt o "ge t

apalle t o f item s read y t o b e shippe dai r carg o . . . fromKetchika n t o Fairbanks" , an d(3 ) describe s ho w h e "place dal l th e item s o n th e palle t an dsecure dthe mi n preparatio n fo r th e pic k up. " Tha t

th e shipmen t

wa s discovere dlate r

i n th e da y t o includ e hazardou s material s support s th e conclusio n tha t on e o r mor e Smit hCabl e employee s place dhazardou s material s o n th e pallet . REQUES T FO RADMISSIO N NO . 4 : Pleas e admi t tha t Smit hCabl e employee s wer e no t presen t whe n th e hazardou s material s wer e place do n th e pallet . FAA' S RESPONSE : Denied . Se e th e FAA' s Respons e t o Reques t fo r Admissio n No . 3 . INTERROGATOR Y NO . 2 : Pleas e se t fort hal l fact s know n t o yo u tha t suppor t you r contentio n tha t SmithCabl e "knowingl y "place dhazardou s material s i n ai r cargo . FAA' S RESPONSE : Th e FA A ha s allege dtha t SmithCabl e "knowingl y offere dt o Alask aAirline s ashipmen t containin g hazardou s materia l fo r transportatio n b y ai r

. . .. " ' Complain t

a t 1 . Under4 9 U.S.C . § 5123(a)(1) , aperso n knowingl y violate s 4 9 C.F.R . Chapte r 1 , Subchapte r

C i f h e o r sh e ha s actua l knowledg e ofth e fact s givin g rise t o th e violatio n o r i f a reasonabl e person , actin g i n th e circumstance s an dexercisin g reasonabl e care , woul dhav e tha t knowledge . Th e FA A ha s not , a s thi s interrogator y posits , contende dtha t Smit hCabl e knowingl y place dhazardou s material s i n ai r cargo . Rather , th e FA A contend s tha t Smit hCabl e knowingl y \ \f \

SmithCabl e Systems . Inc . -5

- DM S No . FAA-2009-097 6

### offeredashipment fo r transportatio n b y ai

r andthat th e shipmen

t containe dhazardou s materials . Se e Riverdal e Mill s Con). . FA A Order No . 2003-1 0 a

t 5 (Sept . 12 , 2003) . REQUES T FO RADMISSIO N NO . 5 : Pleas e admi t tha t yo u do no t know whether

th e hazardou s material s were presen t a t the tim e Smit h Cable' s carg o wa s picke du p b y a n employee o f Aer l company . FAA' S RESPONSE : Denied . Th e FA A contend s tha

t Smit h Cabl e knowingl y offereda shipment fo r transportatio n b y ai r

an dtha t th e shipment

containe dhazardou s materials . I n th e Affidavit o f ToddLinn e describe di n th e FAA' s respons e to Interrogator y No . 1 above , Mr . Linn e allege s tha

t a n employe e o f

"Aerl" , likel y Aero Services , transporte dthe Smit h Cabl e shipment t o Alask aAirlines . Mr . Linn e say s th e shipment di dnot include any propan e cylinder s o r aerosols . However , th e FA

A interviewe dJessic aFreeman , a n employe e o f

Aero Services , wh

o sai dtha t Aero Service s employ s specifi c procedure s to kee p shipment s intac t

fro mreceip t t o deliver y s o tha t item s are neither

adde dnor

removed . Moreover , Smit h Cabl e President

Ron Smit htoldJeffre

y Deit z tha

t Smit h Cable' s equipment

i n Ketchikan , which Mr . Linn e wa s to demobiliz e an

drem mto Fairbanks , include dagrill . Combin e tha t wit h th e discover

y b y Alask

a Airlines * personne l ofth e hazardou s material s withi n th e Smit h Cabl e shipment , th e self-servin g statement s o f

Smit h Cable' s employe e are insufficien t to overcome th e conclusio n tha t the hazardou s material s were present a t th e time Smit

h Cable' s shipment

wa s picke du

p b y Aero Services . 

# ^ . A 

# V ^

Smit hCabl e Systems . Inc . -6 - DM S No . FAA-2009-097 6REQUES T FO RADMISSIO N NO . 6 : Pleas e admi t tha t yo u di dno t

seiz e o r kee p an y ofth e hazardou s material s property . FAA' S RESPONSE : Th e FA A admit s tha t i t di dno t seiz e an y ofth e item s i t allege s Smit hCabl e shippe di n thi s matter . REQUES T FO RADMISSIO N NO . 7 ; Pleas e admi t tha t yo u di dno t

seiz e o r kee p th e smal l beac hbarbecue . FAA' S RESPONSE : Th e FA A admit s tha t i t di dno t seiz e an y ofth e item s it allege s Smit hCabl e shippe di n thi s matter . REQUES T FO RADMISSIO N NO . 8 : Pleas e admi t tha t yo u di dno t

seiz e o r kee p th e cam p stove .

. FAA' S RESPONSE : Th e FA A admit s tha t i t di dno t seiz e an y ofth e item s i t allege s Smit hCabl e shippe di n thi s matter . REQUES T FO RADMISSIO N NO . 9 : Pleas e admi t tha t ther e wer e n o marking s o n th e item s i n questio n identifyin g wh o owne dthem . FAA' S RESPONSE : Th e FA A ha s no t allege dtha t

SmithCabl e owne dth e hazardou s material s a

t issu e i n thi s matter . Rather , th e FA A ha s allege dtha t SmithCabl e offere dthe mfor transportatio n b y air . Th e FA A doe s no t kno w whethe r

ther e wer e ownership-relate dmarking s o n th e propan e cylinder s o r aeroso l ca n an dtherefor e denie s same .

Smith Cabl e Systems . Inc . -7

- DM S No . FAA'2009-097 6

### INTERROGATORY NO . 3 : I f you r respons e t o any o f

the foregoin g request s fo r admissio n i s anythin g but

aful l admission , pleas e stat e al l factua l information supportin g you r denia l an d whether areasonabl e inquir

y ha s been made b

y yo u to ascertai n th e fact s regardin g eac h reques t yo u denied . FAA' S RESPONSE : Th e FAA' s respons e to each Reques t fo r Admissio n include s al

l factua l informafion requeste dan dwa s mad e afte

r areasonabl e inquir

y t o ascertai n th e fact s regardin g eac h request . DATE D thi s / da y o f June , 2010 .

HOWAR D L . MARTIN , JR . Regiona l Counsel

Smit hCabl e Systems . Inc . -8

- DM S No . FAA-2009-097 6

### CERTIFICAT E O FSERVIC E

Re : Smit

h Cabl e Systems , Inc . FA A Docke t No . CP09AL001 2 DM S No . FAA-2009-097 6 1 HEREB Y CERTIFY tha t o n thi s dat e I hav e serve dthe origina l ofth e foregoin g wit

h attachment s b y postage-prepai dU.S . mail addresse dto : Bren t R . Col e Marsto n & Cole , P.C . 82 1 N Street , Suite 20 8 Anchorage , A

K 9950 1 

## DATED : {7c.^l . ^^^Qj O

Federa l Aviatio n Administration ? Offic e o f Regiona l Counse l 22 2 Wes t 7t hAvenue , Box 14 , AAL- 7 Anchorage , A K

99513-758 7



# V v f ^ \ ' 

## 0 '

Smit hCabl e Systems . Inc . -9

- DM S No . FAA-2009-097 6