• \ 

•^^r^ARTMEMT OF 

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''^' .c:! Ur'tfiATlONf c*^^''^' Aviation Administration 

^SH fJuV 7-^ .A ifi- -^ij 

In the matter of ) ^^f\i^ Q 

) Docket No. CPlOSOOOll " *^0CKE T 

M & R HELICOPTER ) FAA Case No. 2009SO950434 

) Judge Richard C. Goodwin 

) Hearing Date: January 26-27, 2012 

) 

MOTION FOR DECISION 

Pursuant to 14 C.F.R. § 13.218(0(5), Complainant files this Motion for Decision. 

There are no genuine issues of material fact to resolve in this matter, 

I. INTRODUCTION 

A motion for decision shall be granted if there is ''no genuine issue of material 

fact and that the party making the motion is entitled to judgment as a matter of law." 

14 C.F.R. § 13.218(f)(5). Complainant "has the burden of showing that there is no 

genuine issue of material fact disputed by the parties." Id- The Complainant will show 

tlirough Respondent's admissions and evidence known to the parties and attached to this 

.motion, that no genuine issues of material fact exist and that the Complainant is entitled 

tojudgment as a matter of law. 

II. STATEMENT OF THE CASE 

Complainant served M & R Helicopters, LLC ("Respondent") with a Notice of 

Proposed Civil Penalty on July 23, 2010, in the amount of $5,400, for violations of the 

Federal Aviation Regulations ("TARs").' An infomial conference was held with 

Respondent, FAA attorneys and a representative from the Drug Abatement Division of 

The specific violations alleged are 14 C.F.R. §§ (35.251(a) and 135.255(b). 
the Office of Aerospace Medicine on October 1, 2010. A Final Notice of Proposed Civil 

Penalty was issued on October 21, 2010. Respondent requested a hearing on October 27, 

2010 and the Complaint was then filed on November 17, 2010. The Complaint has since 

been amended twice, once on December 10, 2010 to remove certain allegations and 

reduce the penalty to $4,400, and again on August 11, 2011 in order to correct 

typographical errors. 

Respondent filed his Preliminary Objections, which appear to serve as his 

Answer, on November 27, 2010. In his Preliminary Objections, Respondent agreed that 

Mr. Edward Baker III performed safety-sensitive functions for Respondent on July 24, 

2008. (Prelim. Objections at 3). In addition, Respondent agreed in part that Respondent is 

now, and at all times mentioned in the Complaint was. the holder of Air Carrier 

Certificate No. MR3A020K. issued under 14 C.F.R. part 119 and authorized to conduct 

operations under 14 C.F.R. part 135 of the FARs. Id. at 2. Respondent, however, asserted 

that it "has not been able to carry on part 135 operaUons since August 2007." Id. 

Respondent denied all of the other allegations listed in the Complaint. 

On March 25, 2011. a conference call was held among Chief Administrative Law 

Judge Yoder, Complainant and Respondent. On May 27, 2011, Complainant filed its Prehearing Brief in accordance with Judge Voder's direction. On June 3, 2011, Respondent 

filed its Reply to Complainant's Brief These proceedings were re-assigned to Judge 

Goodwin on June 10, 2011. On August 2, 2011, Complainant filed a Motion to Compel 

Discovery. In response, on August 15, 2011 Judge Goodwin served upon Respondent an 

Order to Respondent to Show Cause. On August 25, 2011, Respondent filed his Reply to 

the Order to Show Cause. On September 29, 2011, Judge Goodwin served an Order 
Sanctioning Respondent stating that Respondent failed to file adequate responses to the 

issues raised in the Order to Respondent to Show Cause. As a result, Judge Goodwin 

ordered that Respondent "will be foreclosed at the hearing from offering or relying upon 

any documents, or any information contained in them, or any witnesses, regarding which 

it has failed to notice in response to Complainant's discovery request." (Order 

Sanctioning Resp't at 1). Respondent subsequently filed a Motion for Reconsideration on 

October 3, 2011, which Judge Goodwin denied in his Order Denying Respondent's 

Motion filed on October 18,2011. 

III. STATEMENT OF FACTS 

Respondent is the holder of Air Carrier Certificate No. MR3A020K, issued under 

14 C.F.R. pail 119 and authorized to conduct operations under 14 C.F.R. part 135 of the 

FARs. (Exhibit A - Operations Specifications C'OPSPECS") - Issuance and 

Applicability). Respondent certified that it would comply with the requirements of 14 

C.F.R. part 121, Appendices ! and J and 49 C.F.R. part 40 for its Antidrug and Alcohol 

Misuse Prevention Program. (Exhibit B - OPSPECS - Antidrug and Alcohol Misuse 

Prevention Program). On July 21 and 23, 2009, the FAA conducted an inspection of 

Respondent's DOT-required drug and alcohol testing programs. (Exhibit C - Letter of 

Investigation). During the investigation, it was discovered that on July 24, 2008, 

maintenance work was performed on Respondent's aircraft (N98CM). (Exhibit D -

Maintenance Records for Aircraft N98CM; Exhibit E - OPSPECS - Aircraft Listing). 

This maintenance was performed by Edward Baker III. (Exhibit D). Mr. Baker performed 

this work in his capacity as a "moonlighter" or'Tree lancer." (Resp't's Reply to 
Compl't's Br. at 5)." Mr. Baker did not undergo pre-employment drug testing as an 

employee of Respondent and was not included in Respondent's random drug and alcohol 

testing pools. (ExhibiLF - Random Pool Rosters; Exhibit G - Statement of Dr. Selig 

dated July 23, 2009 and Inspector's Statement). Respondent claims that Mr. Baker was 

under the testing programs of Air Methods Inc. and the National Guard, however, neither 

of these entities was contracted to perform the work that Mr. Baker performed on 

Respondent's aircraft. (Prelim. Objections at 5; Resp't's Reply to Compl't's Br. at 5-6; 

Exhibit H - Letter from Dr. Selig dated August 29, 2009). 

IV. ARGUMENT 

A. Allegation I: Respondent was advised through a Final Notice of Proposed 

Civil Penalty on October 21, 2010, that Complainant proposed to assess a 

civil penalty in the amount of $5,400 for violations of Federal Aviation 

Regulations. By letter dated October 27, 2010, Respondent requested a 

hearing in the above-captioned matter. 

Respondent was advised tlirough a Final Notice of Proposed Civil Penalty on 

October 21, 2010 that Complainant proposed to assess a civil penalty in the amount of 

S5,400 for violations of FARs. (Exhibit I). Respondent requested a hearing in the abovecaptioned matter on October 27, 2010. (Exhibit J V Although Respondent claims that this 

allegation contains conclusions of law to which no answer is required, (Prelim. 

Objections at I), this allegation merely reflects the fact that Respondent was notified of 

the proposed penalty and that Respondent elected to request a hearing in this matter. No 

genuine issue of material fact exists with regard to this allegation. 

B. Allegation U.l: Respondent is now, and at all times mentioned in this 

document was, the holder of Air Carrier Certificate No. MR3A020K, issued 

under 14 C.F.R. part 119 and authorized to conduct operations under 14 

C.F.R. part 135 of the Federal Aviation Regulations. 

" Respondent's Reply to Complainant's Brief was filed June 3, 2011 in response to Complainant's PreHearinti Brief 
Respondent is. and at the time of the violations was, the holder of Air Carrier 

Certificate No. MR3A020K:, issued under 14 C.F.R. part 119 and authorized to conduct 

operations under 14 C.F.R. part 135 of the FARs. (Exhibit A). Respondent agrees in part 

with this allegation but claims that he ''has since ceased operating under the name and 

under the certificate number, ownership of helicopter has changed, financials have been 

closed, thereby rendering the coniplaint moot." (Prelim. Objections at 2). However, the 

current status of Respondent is not at issue in this case. At the time of the violation, 

Respondent had an active 14 C.F.R. part 119 certificate with OPSPECS authorizing it to 

conduct operations under part 135 that required its compliance with the FAA Drug and 

Alcohol Testing Regulations found in Appendices I and J of 14 C.F.R. part 121. Id. 

Respondent also argues that he has not been in operation since 2007. (Resp't's 

Reply to Compl't's Br. at 1). This argument, however, is erroneous. Respondent 

commenced 14 C.F.R. part 135 operations in or prior to 2005 and continues to have an 

active 14 C.F.R. part 119 certificate with OPSPECS authorizing it to conduct operations 

under part 135. (Exhibiij^). The OPSPECS "remain in effect as long as the certificate 

holder continues to meet the requirements of Part 119 as specified for certificauon." Id. 

hi addition, 14 C.F.R. § 135.25(a)(2) (2006) states that "[ejxcept as provided in 

paragraph (d) of this section, no certificate holder may operate an aircraft under this part 

unless that aircraft - [ijs in an airworthy condition and meets the applicable airworthiness 

requirements of this chapter, including those relating to identification and equipment." 

Section 135.25(b) stattjs that "[e]ach certificate holder must have the exclusive use of at 

least one aircraft that meets the requirements for at least one kind of operation authorized 

in the certificate holder's operations specificafions." In this case, a Bell-206-B, 
Registration No. N98CM, is listed in section D085 of the OPSPECS as the sole aircraft 

operated under Respondent's 14 C.F.R. part 119 certificate with OPSPECS authorizing it 

to conduct operations under part 135 and is therefore required to meet the requirements 

for part 135 operations as authorized under Respondent's OPSPECS. (Exhibit E; 

Exhibit A). 

Respondent had and continues to have an active Air Carrier Certificate, issued 

under 14 C.F.R. part 119 and authorizing it to conduct operations under 14 C.F.R. part 

135 of the FARs. Therefore, no genuine issue of material fact exists with regard to this 

allegation. 

C. Allegation II.2: At all times mentioned in this document, Respondents 

operations specifications required it to comply with 14 C.F.R. part 121, 

Appendices I and J and 49 C.F.R. part 40 for its antidrug and alcohol misuse 

prevention program. 

At the time of the violations. Respondent's OPSPECS required it to comply with 

14 C.F.R. part 121, Appendices I and J and 49 C.F.R. part 40 for its antidrug and alcohol 

misuse prevention program.•* (Exhibit B). Respondent denies the allegation, claiming that 

the operations specifications were signed off in 2004 and the regulations have since been 

changed without notification. (Prelim. Objections at 2). Further, Respondent claims that 

the regulations contained in 14 C.F.R. part 121, Appendices I and J and 49 C.F.R. Part 40 

were hidden and concealed. Id. Respondent's claim that the referenced regulations were 

changed, hidden, and concealed without notification is baseless. 

14 C.F.R. part 121, Appendices I and .1 and 49 C.F.R. part 40 were properly 

promulgated and amended by notice and comment in accordance with the Administrative 

"' Effective July 13, 2009. the FAA's drug and alcohol regulations in 14 C.F.R. part 121. Appendices 1 and J 

were recodified and are now found in 14 C.F.R. part 120, subparts E and F. See Final Rule. 74 Fed. Reg. 

22649 (May 14. 2009). The Final Rule is also available at the following internet address: 

hnp://www.faci.L;ov/;iboui/office_oru/lieadquarters_ol1"lces/avs/ol't"iccs/aam/druu alcohol/^estin^/ 
Procedures Act. See 59 FR 42928, Aug. 19, 1994 (amending 14 C.F.R. part 121, 

Appendi.x 1); 69 FR 1840, Jan. 12, 2004 (amending 14 C.F.R. part 121. Appendix J). In 

addition, when 14 C.F.R. part 121, Appendices I and J was recodified in 2009, the final. 

rule explicitly stated that, "[t]he FAA is not making any substantive changes to the drug 

and alcohol regulations in this rulemaking." Drug and Alcohol Testing Program; Final 

Rule, 74 Fed. Reg.22649, 22649 (May 14, 2009). Since no substantive changes were 

made to the regulations, no notice and comment period was required under the 

Administrative Procedures Act. 5 U.S.C. § 553(b). Because Respondent was notified of 

changes to the regulations through the Federal Register publication of the Final Rule 

when required, his argument thai the regulations were changed, hidden, and concealed 

without notification is without merit. Therefore, no genuine issue of material fact exists 

with regard to this allegation. 

D. Allegation 11.3: At all times mentioned in this document, 14 C.F.R. §§ 

135.251(a) and 135.255(b) required that Respondent test each employee who 

performs a safety-sensitive function listed in 14 C.F.R. part 121, Appendix I 

and J in accordance with those appendices. 

At all times mentioned in this document, 14 C.F.R. §§ 135.251(a) and 135.255(b) 

required that Respondent test each employee who performs a safely-sensitive fiinction 

listed in 14 C.F.R. part 121, Appendix I and J in accordance with those appendices. 

Respondent denies this allegafion, (Prelim. Objections at 2), however, this allegation is 

merely a restatement of the regulations."* Respondent holds an Air Carrier Certificate No. 

MR3A020K., issued under 14 C.F.R. part 119 and authorized to conduct operations under 

•* 14 C.F.R. § 135.251(a) - Each certificate holder or operator shall test each of its employees who performs 

a function listed in appendix I to part 121 ofthis chapter in accordance with that appendix." 

14 C.F.R. § 135.255(b)- Except as provided in paragraph (c) of this section, no certificate holder or 

operator may use any person who meets the definition of "covered employee" in appendix J to part 121 of 

this chapter to perform a safety-sensitive ftinction listed in that appendix unless such person is subject to 

testing for alcohol misuse in accordance with the provisions of appendix J. 
14 C.F.R. part 135 of the FARs. (Exhibit A). On July 24, 2008, maintenance work was 

performed on Respondent's aircraft (N98CM). (Exhibit D; Exhibit E). This maintenance 

was performed by Edward Baker 111. (Exhibit D). Sections 135.251(a) and 135.255(b) 

require that each certificate holder conduct drug testing in accordance with appendix I to 

part 121 and alcohol testing in accordance with appendix J to part 121 on any employee 

or covered employee who performs a safety-sensitive function as defined in those 

appendices. No genuine issue of material fact exists with regard to this allegation. 

E. Allegation 11.4: Under 14 C.F.R. part 121, Appendix 1, § 111, an employee 

who performs aircraft maintenance and preventive maintenance duties, 

directly or by contract for Respondent, is performing a safety-sensitive 

function and must be subject to drug testing under an antidrug program 

implemcntc'd in accordance with that appendix. 

At all times mentioned in this document, under 14 C.F.R. part 121, Appendix I, 

§ III, an employee who performs aircraft maintenance and preventive maintenance duties, 

directly or by contract for Respondent, is performing a safety-sensitive fiinction and must 

be subject to drug testing under an antidrug program implemented in accordance with 

that appendix. Respondent denies this allegation, (Prelim. Objections at 3), however, this 

allegation is merely a restatement of the regulation.^ No genuine issue of material fact 

exists with regard to this allegation. 

14 C.F.R. part 121. Appendix I, § III - Employees Who Must be Tested. Each employee, including any 

assistant, helper, or individual in a training status, who performs a safety-sensitive function listed in this 

section directly or by contract (including by subcontract at any tier) for an employer as defined in this 

appendi.x must be subject to drug testing under an antidrug program implemented in accordance with this 

appendix. This includes Full-time, part-time, temporary, and intermittent employees regardless of the 

degree of supervision. The safety-sensitive functions are: 

A. Flight crewmember duties. 

B. Flight attendant duties. 

C. Flight instruction duties. 

D. Aircraft dispatcher duties. 

E. Aircraft maimenance and preventive maintenance duties. 
F. Allegation 11.5: Under 14 C.F.R. part 121, Appendix J, § II.A, an employee 

who performs aircraft maintenance or preventive maintenance duties, 

directly or by contract for Respondent, is performing a safetj-sensitive 

function and must be subject to alcohol testing under an alcohol misuse 

prevention program ("AMPP") implemented in accordance with that 

appendix. 

At all times mentioned in this document, under 14 C.F.R. part 121, Appendix J, 

§ II.A, an employee who performs aircraft maintenance or preventive maintenance duties, 

directly or by contract for Respondent, is performing a safety-sensitive function and must 

be subject to alcohol testing under an AMPP implemented in accordance with that 

appendix. Respondent denies this allegation, (Prelim. Objections at 3), however, this 

allegation is merely a restatement of the regulation.^ No genuine issue of material fact 

exists with regard to this allegation. 

G. Allegation 11.6: At all times mentioned in this document, 14 C.F.R. part 121, 

Appendix 1, § V.B, required each safety-sensitive employee to be subjected to 

DOT-required random drug testing in accordance with that Appendix. 

. F. Ground security coordinator duties. 

G. Aviation screening duties. 

H. Air traffic control duties. 

14 C.F.R. part 121. Appendi.x J, § II.A - Covered Employees 

A. Each employee, including any assistant, helper, or individual in a training status, who performs 

a safety-sensitive function listed in this section directly or by contract (including by subcontract at any tier) 

for anemployer as defined in this appendix must be subject to alcohol testing under an alcohol misuse 

prevention program implemented in accordance with this appendix. This includes full-time, part-time, 

temporary, and intemiittent employees regardless of the degree of supervision. The safety-sensitive 

functions are: 

6 

1. Flight crewmember duties. 

2. Flight attendant duties. 

3. Flight instruction duties. 

4. Aircraft dispatcher duties. 

5. Aircraft maintenance or preventive maintenance duties. 

6. Ground security coordinator duties. 

7. Aviation screening duties. 

8. Air traffic control duties. 
At all tiines mentioned in this document, 14 C.F.R. part 121, Appendix I, § V.B, 

required each safety-sensitive employee to be subjected to DOT-required random drug 

testing in accordance with that Appendix. Respondent denies this allegation, (Prelim. 

Objections at 3), however, this allegation is merely a restatement of the regulation.^ No 

genuine issue of material fact exists with regard to this allegation. 

H. Allegation II.7: At all times mentioned in this document, 14 C.F.R. part 121, 

Appendix J, § III.C, required each safety-sensitive employee to be subjected 

to DOT-required random alcohol misuse testing in accordance with that 

Appendix. 

,At all times mentioned in this document, 14 C.F.R. part 121, Appendix J, § III.C, 

required each safety-sensitive employee to be subjected to DOT-required random alcohol 

misuse testing in accordance with that Appendix. Respondent denies this allegation, 

(Preliin. Objections at 3), however, this allegation is merely a restatement of the 

Q 

regulation. No genuine issue of material fact exists with regard to this allegation. 

I. Allegation 11.8: On or about July 24, 2008, Mr. Edward Baker III performed 

a safety-sensitive function for Respondent. 

This allegation was admitted to by Respondent. (Prelim. Objections at 8). 

J. Allegation 11.9: Mr. Baker was not included in Respondent's random pool 

for DOT-required drug and alcohol testing at the time of the performance on 

July 24,2008. 

Mr. Baker was not included in Respondent's random pool for DOT-required drug 

and alcohol testing when he performed a safety-sensitive function for Respondent on July 

24, 2008. Respondent denies this allegation. (Prelim. Objections at 3-5), however, the 

evidence clearly shows that Dr. Selig was the only employee included in Respondent's 

^ 14 C.F.R. part 121, Appendi.\ 1. § V.B - Types of Drug Testing Required. Each employer shall conduct 

the following types of testing in accordance with the procedures set forth in this appendix and the DOT 

"Procedures for Transportation Workplace Drug Testing Programs" (49 CFR part 40): B. Random Testing. 

•* 14C,F.R. part 121. Appendi.x J, § \U.C -Jesis Kequked - C. Random Testing. 

10 
random pool frotn January K 2007 to July 21, 2009. (Exhibit F). In addition, Respondent 

states that Mr. Baker was a "moonlighter" or ''freelancer" for the work he performed for 

Respondent. (Resp't's Reply to Compl't's Br. at 5). Respondent adds that Mr. Baker was 

under the drug and alcohol testing programs of Air Methods, his primary employer. Id. at 

5-6. No genuine issue of tnaterial fact exists with regard to this allegation. 

K. Allegation 11.10: Mr. Baker did not have and was not included in an FAAmandated antidrug program and alcohol misuse prevention program at the 

time he performed safety-sensitive functions for Respondent on July 24, 

2008. 

Mr. Baker did not have and was not included in an FAA-mandated antidrug 

program and AMPP at the time he perfomied safety-sensitive functions for Respondent 

on July 24, 2008. (Preliminary Objections at 5; Exhibit F: Exhibit G; Resp't's Reply to 

Compri's Br. at 6). Respondent denies this allegation based on an'erroneous 

understanding of the regulations and the so-called "moonlighting" loophole. (Prelim. 

Objections at 5). . 

Prior to 2004, a moonlighting loophole existed in 14 C.F.R., part 121, Appendix I 

of the drug testing regulations that allowed employers to use individuals to perform 

safety-sensitive functions while being included in the drug program of another employer. 

The language cited for this moonlighting loophole was contained in 14 C.F.R. part 121, 

Appendix 1, § II (2003) prior to the revisions enacted in 2004, and was as follows: 

Employer is a part 121 certificate holder, a part 135 certificate holder, an 

operator as defmed in § 135.1(c) ofthis chapter, or an air traffic control 

facility not operated by the FAA or by or under contract to the U.S. 

military. Provided, however, that an etnployer may use a person who is 

tiot included under that employer's drug program to perform a safetysensitive function, if that person is subject to the requirements of another 

employer's FAA-approved antidrug program. 

This language created a situation wherein. 

11 
[u]nder the moonlighting loophole, when an employee was covered under 

an employer's drug testing program (Employer A), another employer 

(Employer B) could have used that employee to perform safety-sensitive 

functions even when the work was unrelated to the work with Etiiployer 

A. 

Antidrug and Alcohol Misuse Prevention Programs for Personnel Engaged in Specified 

Aviation Activities; Final Rule, 69 Fed. Reg. 1840, 1843 (Jan. 12, 2004). 

This arrangement, however, created significant safety issues in that employers 

could be unaware of its employee's activities for the other employer. Id. For example, if 

an employee was terminated by the employer under whose drug testing program he was 

covered, the other employer may never find out and would then allow the individual to 

perfomi safety-sensitive work without being covered by the FAA-mandated drug testing 

program, id. The FAA changed the language of 14 C.F.R. part 121, Appendix 1, § II in 

2004, 

to make it clear that no employer can use a contract employee to perform a 

safety-sensitive function unless the contract employee: is included under 

that employer's FAA-mandated antidrug program; or is included under the 

contractor's FAA-mandated antidrug program and is performing a safetysensitive function on behalf of the contractor. 

Id. at 1842-43. 

With this revision, the FAA made it clear that "employers will only be pemiitted 

to rely on companies with whom they have contractual relationships to cover testing of 

their employees." Id-at 1843. The revised language of 14 C.F.R. part 121, Appendix I, 

§11 (2005) was as follows: 

Employer is a part 121 certificate holder, a part 135 certificate holder, an 

operator as defined in § 135.1(c) of this chapter, or an air traffic control 

facility not operated by the FAA or by or under contract to the U.S. 

military. An employer may use a contract employee who is not included 

under that employer's FAA-mandated antidrug program to perform a 

12 
safety-sensitive function only if that contract employee is included under 

the contractor's FAA-mandated antidrug program and is performing a 

safety-sensitive function on behalf of that contractor (/.i?., within the scope 

of employment with the contractor). 

With regard to the alcohol testing regulations contained in 14 C.F.R. part 121, 

Appendix J, the same moonlighting loophole did not exist prior to 2004 and therefore, did 

not require closing during the revisions made in 2004. Specifically, the language in 14 

C.F.R. part 121, Appendix J, § I.D (2003) stated the following: ""Employer means a part 

121 certificate holder; a part 135 certificate holder; an air traffic control facility not 

operated by the FAA or by or under contract to the U.S. military; an operator as defined 

in 14 C.F.R. 135.1(c)." After the revisions made in 2004, the language in 14 C.F.R. part 

121. Appendix J, § I.D was unchanged. 

The moonlighting loophole that was contained in 14 C.F.R. part 121, Appendix I 

created many safety concerns that led to the closing of the loophole in 2004. The same 

moonlighting loophole was never in existence within 14 C.F.R. part 121, Appendix J, and 

therefore did not need to be addressed through the amendments made in 2004. 

Accordingly, there was no moonlighting loophole in either the drug or alcohol testing 

regulations that pertained to Respondent's regulatory violations in 2007 and 2008. The 

moonlighting loophole that existed in the drug testing regulations prior to 2004 was no 

longer in existence at the time of Respondent's regulatory violations. In addition, there 

never was a moonlighting loophole in the alcohol testing regulations and there was 

certainly no such loophole in existence at the time of Respondent's regulatory violations. 

Therefore, contract employees who performed safety-sensitive functions for Respondent 

were required to either be included in Respondent's drug and alcohol testing programs or 

be included in the drug and alcohol testing programs of a company with whom 

13 
Respondent contracted to provide such safety-sensitive functions. In this case, Mr. Baker 

was not under Respondent's drug and alcohol testing programs or under the drug and 

alcohol testing programs of a company that was contracted with Respondent to provide 

safety-sensitive functions. 

Respondent's claim that there was no notification procedure as to the change in 

regulations is false. The 2004 ainendment was promulgated by notice and comment 

rulemaking and was available in the Federal Register. Antidrug and Alcohol Misuse 

Prevention Programs for Personnel Engaged in Specified Aviation Activities; Final Rule, 

69 Fed. Reg. 1840 (Jan. 12, 2004); Antidrug and Alcohol Misuse Prevention Programs . 

for Personnel Engaged in Specified Aviation Activities; Proposed Rule, 67 Fed. Reg. 

9365 (Feb. 28, 2002). 

No genuine issue of material fact exists with regard to this allegation. 

L. Allegation 11.11: By reason of the foregoing, Respondent violated the 

following FAA regulations: (a) 14 C.F.R. § 135.251(a), in that it failed to test 

each employee who performed a safety-sensitive function listed in 14 C.F.R. 

part 121, Appendix I in accordance with Section V.A.I and Section V.B.5 of 

that appendix; and (2) 14 C.F.R. § 135.255(b), in that it failed to test each 

employee who performed a safety-sensitive function listed in 14 C.F.R. part 

121, Appendix J in accordance with the provisions of Section IU.C.5 of that 

appendix. 

Respondent violated 14 C.F.R. § 135.251(a), in that it failed to test each employee 

who performed a safety-sensitive function listed in 14 C.F.R. part 121, Appendix I in 

accordance with Section V.A.I and Section V.B.5 of that appendix; and 14 C.F.R. 

§ 135.255(b), in that it failed to test each employee who performed a safety-sensitive 

function listed in 14 C.F.R. part 121, Appendix J in accordance with the provisions of 

Section III.C.5 of that appendix. Respondent denies this allegation, (Prelim. Objections at 

5-6), however the evidence shows that Mr. Baker performed safety-sensitive functions 

14 
for Respondent and Mr. Baker was not covered by either Respondent's or his own DOTrequired drug and alcohol testing program. (Exhibit D; Preliminary Objections at 5; 

Resp't's Reply to Compl't's Br. at 5-6; Exhibit F; Exhibit 0 ; Exhibit H). Therefore there 

are no genuine issues of material fact with regard to.this allegation. 

M. Allegation IIl.l: Pursuant to 49 U.S.C. § 46301(a)(5)(A), Respondent is 

subject to a civil penalty for each of the violations alleged. The maximum 

civil penalty per violation is S11,000. 

Pursuant to 49 U.S.C. § 46301(a)(5)(A), Respondent is subject to a civil penalty 

for each of the violations alleged. The maximum civil penalty per violation is $ 11,000. 

In this matter, Respondent is a small business concern and therefore, under 49 U.S.C. 

§ 46301(a)(5)(A) is subject to a civil penalty of not more than $11,000 for each violation 

alleged.^ Respondent denies this allegation, (Prelim. Objections at 6), however, this is 

merely a restatement of the statute. Therefore there are no genuine issues of material fact 

with regard to this allegation. 

N. Allegation 111.2: Under the facts and circumstances ofthis case, a civil 

penalty of $4,400 is appropriate. 

Under the facts and circumstances ofthis case, a civil penalty of $4,400 is 

appropriate. The FAA has broad authority to assess civil penalties for violations of the 

FARs. See e.g.. NL Industries. Inc. v. Department of Transportation. 901 F.2d 141, 144 

(Apr. 13, 1990). The FAA's sanction detemiination "is not to be overturned unless 'it is 

unwarranted in law' or 'without justification in fact.'" Id. quoting Panhandle Cooperative 

Ass'nv. EPA. 771 F.2d 1149, 1152 (8'^ Cir. 1985). 

The penalr>'amount was increased from $10,000 to $11,000 on May 16,2006. 71 FR 28523. 

15 
The civil penalty in this matter was assessed in accordance with FAA Order 

2150.3B, specifically. Appendix B -Table of Sanctions. (Exhibit K). Respondent is 

classified as a Group IV air carrier or operator. As discussed above, under 49 U.S.C. 

§ 46301(a)(5)(A), Respondent is subject to a civil penalty not to exceed $11,000. FAA 

Order 2150.3 B delineates penalty ranges for different types of violations by different 

types of entities. In this case, FAA Order 2150.3B sets forth the following penalty ranges: 

Maximum - $4,400-$ 11,000; Moderate - $2,200-$4.399; and Minimum - $550-$2,199. 

(Exhibit K at B-4). For the FARs violated by Respondent, FAA Order 2150.3B, Figure 

B-5-b(l) provides guidance that a maximum penalty should be levied. (Exhibit K at 

B-31). FAA Order 2150.38 states "that the middle of each recommended sanction range 

would be for a single violation without aggravating or mitigating factors." (Exhibit K at 

B-2). The middle of the maximum range for a Group IV air carrier or operator is $7,700 

per violation. In this case, because Respondent's two violations stem from the same 

omission, the FAA determined that based on the totality of the facts and circumstances a 

reduction of the penalty from the amount of $15,400 for the two violations to $4,400 was 

warranted." Respondent denies this allegation, (Prelim. Objections at 6), however no 

genuine issue of material fact exists because the sanction is reasonable and was set in 

accordance with the FAA's sanction guidance. See In the Matter of Air Solutions. LLC, 

FAA Order No. 2009-1 (2009) (recognizing the reasonableness of a sanction set in 

accordance with the FAA's sanction guidance). 

"* A Group IV air carrier is defined in FAA Order 2150.3B as an air carrier or commercial operator 

operaiing under part 135 with no more than 5 pilots and no more than 5 aircraft. FAA Order 2150.3B at B3. 

" The Complaint was amended on December 10, 2010 (o delete stale allegations and an appropriate 

adjustment to the penalty aniount was made at that time bringing it down to the current $4,400 civil 

penalty. 
Respondent has raised the issue of its inability to pay the sanction yet has not 

provided infomiation sufficient for Complainant to make a determination. Complainant 

requested that Respondent provide the most recent tliree years of federal tax returns 

including schedules. Respondent has only provided incomplete federal and state tax 

returns. (Exhibit L). An assertion of inability to pay is an affirmative defense and the 

burden is on Respondent to prove that defense. In the Matter of American Air Network, 

Inc.. FAA Order No. 2006-5, at fn. 19 (Feb. 10, 2006). Respondent has failed to provide 

the federal tax returns requested by Complainant in order for Complainant to assess 

Respondent's assertion of inability to pay.'^ As such. Complainant does not have 

sufficient materials from Respondent to fairly make a determination that Respondent is 

unable to pay the proposed civil penalty.'^ 

'• Respondent provided the following documents: (1) 2007 PA Corporate Tax Report; (2) 2007 PA 

Schedule L; (3) 2007 Federal Schedule C - Profit of Loss From Business; (4) 2008 PA Corporate Tax 

Report; (5) 2008 PA Schedule L; (6) 2009 PA Corporate Tax Report; (7) 2009 Schedule C-2 PA Dividend 

Deduction Schedule: (8) 2009 PA Schedule L; (9) 2009 PA Schedule C-5 Schedule of Taxes; (10) 2009 

Federal Schedule C - Profit or Loss From Business 

'•' To the extent the ALJ finds that Ihe issue of sanction is still in controversy, the Complainant respectfully 

requests that any hearing in this matter be limited to the issue of the appropriateness of the sanction. 

17 
V. CONCLUSION 

There are no genuine issues of material fact that remain in dispute in this case. 

Complainant, therefore, is entitled tojudgment as a matter of law and respectfially 

requests that this Motion for Decision is granted. 

Respectfully submitted, 

Peter Lynch 

Assistant Chief Counsel 

for Enforcement 

Charles Raley, Attorney 

Enforcement Division, AGC-300 

Office of the Chief Counsel' 

Federal Aviation Administration 

800 Independence Avenue, S.W. 

Washington, DC 20591 

Phone: (202)267-3357 

Facsimile: (202)267-5106 

Email: charles.raley@faa.gov 

Dated: November 15,2011 
Certificate of Service 

1 hereby certify that on this date I have placed in the U.S. mail, postage prepaid, 

certified return-receipt requested, a copy of Complainant's Motion for Decision In (he 

Mailer of 

M iSi R Helicopier. Docket No. CPlOSOOOl 10, FAA Case no. 2009SO950434, addressed 

to: 

Dr. Michael B. Selig 

President 

M & R Helicopters, LLC 

2045 Westgate Dr., Suite 205 

Bethlehem, PA 18017 

In addition, I hereby certify that on this date I have sent by the U.S. mail, postage 

prepaid, certified return-receipt requested, one copy of the foregoing document to: 

The Honorable Richard C Goodwin 

Administrative Law Judge 

U.S. Department of Transportation 

1200 New Jersey Avenue, S.E. 

Washington. DC 20590 

Facsimile: 202-366-7536 

In addition, I hereby certify that on this date I have sent by the U.S. mail, postage 

prepaid, certified return-receipt requested, the original and one copy of the foregoing 

document to: 

Federal Aviation Administration 

800 Independence Avenue, S.W. 

Washington, D.C. 20591 

Attn: Hearing Docket Clerk, AGC-430 

Wilbur Wright Building - Suite 2W1000 

Dated: November 15, 2011 

19 
Exhib 

E.xhib 

Exhib 

Exhib 

Exhib 

Exhib 

Exhib 

Exhib 

Exhib 

Exhib 

Exhib 

Exhib 

TABLE OF EXHIBITS 

lA - OPSPECS - Issuance and Applicability 

LB - OPSPECS - Antidrug and Alcohol Misuse Prevention Program 

LC - Letter of Investigation 

t f) - Maintenance Records for Aircraft N98CM 

LE - OPSPECS - Aircraft Listing 

t F - Random Pool Rosters 

t_(j - Statement of Dr. M. B. Selig July 23, 2009 and Inspector's Statement 

Hi - Letter from Dr. Selig dated August 29, 2009 

l i - Final Notice of Proposed Civil Penalty dated October 21,2010 

i i - Request for Hearing dated October 27, 2010 

t_K, - FAA Order 2150.3B - Appendix B - Table of Sanctions (applicable pages) 

t_L- Respondent's Submitted Tax Returns 
EXHIBIT A 

[See Attached] 
U.S. De'partmenl 

of TransportaUon 

Federal Avralian Operations Specifications 

Administration 

AOtJl. Issuance and Anplicablllty HQ Control: 05/09/03 

HQ Revision: 02c 

a. These operations specifications are issued to M AND R HELICOPTERS LLC, ^vhose principal base of 

opemtion is locnied at: 

Primary Business Address: Mailing Address: 

2045 Wesleatc Drive 2045 Westgate Drive 

Bt^dcheni, PA 18017 Bcthlehctii. PA 18107 

The holder of tliese operations specifications is the bolder of Air Carrier Certificate Number 

MR2Afl20K and shiH hereafter be referred to as the certificate holder. The certificate holder is 

audiorized to conducl; 

On Demand operations in Common carriage porsuanllo 119.25(b)-On and provided, at all times, the 

(135) Title 14 Code of Demand HEL certificate holder has oppropriale 

Vcdcni^ Regulaliojis written economic authority issued l)y 

(CFR)Section • the Dcpartmentof Transporlntion. 

The certificate holder shall conduct these icinds of operations in accordance with the specific 

authortiations, limitations, and procedures in these operations specifications and all appropriate Parts 

of die CFR. 

b. These operations specifications arc effective as of the "Date Approval is effective" listed in each . 

paragraph and ."ihalt leniaio in effect as long as the certificate holder continues to meet the requirements 

of Part 119 as specified for certification. • 

c. • The certiClcatt; holder is authorized (o nsc only tlie business name which appcan an tliecertificats to 

conducl the operations described in subparagraph Q. •. 

The certificate holder is authorized to conducl flights under 14 CFT^ Part 91 for crc\vniember training, 

maintenance tests, ferrying, re-positioning, and the carriage of company officials using the applicable 

authorizations in tJicsc operations specifications,' without obtaining a Letter of Author izati on, provided 

the flights are not coiiducted fbr compensation or liirt and no chargcof any kind is mads for llic 

conduct of the Hights., 

PrintDale: 2/4/2004 AOOI-l CertificatcNo.: MR3A020K 

M AND R HELICOPTERS LLC 
U.S. Department 

of Transportation 

Federal Aviation Operations Specifications' 

Admlnlsl/alion 

I. fssued by tlie Federal A\'i3rion Administration. 

ilions Sjiecificarions are approved by direction of the Administrator. 

Principal Operations Inspector EA05 

3. Dule Approval is effective: 2/4/04 AmendinentNumber; 3 

•1. [ hereby accept and receive the Operations Specifications in this parafiraph. 

V^1^.^^^ 

Selig. Michael B. Agent for. Service Dare: 2/4/04 

Print Date; 2/4/2004 AOOl-2 Certificate No.; MR3A020tC 

M AND R HELICOPTERS LLC 
EXHIBITS 

[See Attached] 
U.S. Department 

of Transportation 

Fodtiral Aviation 

Administration • 

Operations Specifications 

A449. Antidrug and Alcohol Misuse Prevention Proerflm 

b. 

HQ Control: 

HQ Revision: 

01/22/04 

000 

ITie certificate holder who operates under Title 14 Code of Federal Regulations (CFR) Part 135 

certifies that it uill comply with the requirements of 14 CFR Part 121 Appendices I and J and 

49 CFR. part 40 for its Antidrug and Alcohol Misuse Prevention Program. 

Antidrug and Alcohol Misuse Prevention Program records are maintained and available for inspection 

by the FAA's Drug Abatement Compliance and lEnforcement Inspectors at the location listed in Table 1 

below: 

Table 1 

Address: 

Address: 

City: 

State: 

Zip code: 

Location of Antidrug iind Alcohol Misuse 

Prevention Program Records: 

2045 Westfiale Drive 

Bethlehem 

PA 

18017 

Telephone Namber: 

(610)769-7000 

c. Limitations and Provisions. 

(1) Antidrug and Alcohol Misuse Prevention Program inspections and enforcement activity will be 

conducted exclusively by'the Drug Abatement Division. All questions regarding this program 

should be dn"ected to the Drug Abatement Division. 

(2) The certificate holder niu-st implement its Antidrug and Alcohol Misuse Prevention Programs fully 

in accordance with 14 CFR Part 121, Appendices I and J, and 49 CFR Part 4 0 

(3) The certificate holder is responsible for ensuring that its contractors who perform safety-sensitive 

wort for the certificate holder are subject to Antidrug and Alcohol Misuse Prevention ProgrHins. 

(4) The certificate holder is responsible for updating this operations specification when any changes 

occur in the following: ' •' '•' '• •• _.. ,.., .. .^ 

(a) Location or phone number where the Antidrug and Alcohol Misuse Preyentioh Records are 

kept (as listed in Table 1 above). -

(b) If the certificate holder's numberof safcryr^ensirive employees goes to 50 and above, or falls 

below 50 safety-sensitive etnployccs. '•'•'* _. .. ' V.."' 

(5) The certificate holder with 50 or more employees performing a safety-sensitive fimction on 

January 1 of the calendar year must submit an mmual report to the Drug Abatement Division of the 

FAA- The certificate holder with fewer than 50 employees performing a safety-sensitive fimction 

on January 1 of any calendar year must submit an annual report upon request of the Admirustrator, 

as specified in the regulations.' 

The certificate holder has fewer than 50 safety-sensitive employees. 

Print Date: S/15/2005 A449-t • 

M AND R HELICOPTERS LLC 

CertificatcNo.; MR3AO20K: 

FOR OFFICIAL USE ONLY 

Public Qvailabiiiiy to be determjned under 5 USC 552 
U.S. Departmont 

of Transportation 

Federal Aviation OperaiioDs Specifications 

Administration 

1. Issued by the Federal Aviation Administratiod. 

2. These Operations Specifications are approved by direction of the Administrator. 

ALOTTA, FRANK : , Principal Operations Inspector EA05 

3. Date Approval is effective: 2/4/04 Ainendment Number: 0 

4. J hereby accept and receive the Operations Specifications in this paragraph. 

Selig. Michael B: Agent for Service Dale: 2/4/04 

Print Date: 8/15/2005 A449-2 Certificate No.: MR3A020K 

. M AND R HEUCOPTERS LLC 

FOR OFFICIAL USE ONLY 

Public availabil'ity lo b e detetmined undei 5 USC 552 
EXHIBIT C 

[See Attached] 
<i 

U.S. Department 

of Transportation 

Federal Aviation 

Administration 

1701 Columbia Avenue 

College Park, GA 30337 

August 14, 2009 

Certified Mail - Return Receipt Requested 

File Number: 2009SO950434 

Dr. Michael B. Selig 

President 

M and R Helicopters LLC 

2045 Westgate Drive 

Bethlehem, PA 18017 

Dear Dr. Selig: 

On July 21 and 23, 2009, we inspected M and R Helicopters LLC's drug and alcohol 

testing programs to determine compliance with 49 CFR part 40 and 14 CFR part 

120 (formerly 14 CFR part 121, appendices I and J). As a result ofthis inspection, 

the following apparent violations were discovered: 

1. M and R Helicopters LLC did not determine that Eugene Mcintosh and Edward 

Baker (contractors) were covered under a FAA-mandated drug testing program 

and an alcohol misuse prevention program prior to using their services. 

2. M and R Helicopters LLC did not conduct pre-employment drug tests and 

receive verified negative test results prior to hiring Eugene Mcintosh and Edward 

Baker to perform safety-sensitive functions. 

This letter is to inform you that these matters are under investigation by the FAA. 

You may discuss these matters with me or submit a written statement, or both, 

within 10 days of receiving this letter. Please contact me at (404) 305-6175 if you 

have questions about these matters. A written statement should include all 

pertinent facts and mitigating circumstances that you believe may have a bearing on 

these matters. Send your written statement to: 

Attention: Latonya Williams, AAM-862 

Federal Aviation Administration 

Office of Aerospace Medicine 

Drug Abatement Division 

1701 Columbia Avenue 

College Park, GA 30337 

CONCURPENCES 

http://www.faa.gov/about/offlce org/headquarters offices/avs/offlces/aam/drug_alcohol/ 

FOR OFRCiAL liSE ONLY " 

Public GvaiiGbilily to be deisrmined under 5 USC 552 

^OUTING SYMBOL 

AAM-862 

NITIALSJSIG 

LWiNiams 

SATE 

08714/2009 

ROUTING EVMBOl 

^OUTING SVMBOL 

INITIALUSIC 

ROUTING SYMBOL 

NrTIALS/SiG 

ROUTING SVMBOL 

^OUTIKG SYMBOL 

NI71A1.5/S»G 

ROUlINC JVWDOL 

ROUTING SYMBOL 
If we do not hear from you within the specified time, our report will be processed 

without the benefit of your statement. 

Sincerely, 

Latonya Williams, Inspector 

Eastern Compliance and Enforcement Center 

Drug Abatement Division 

Office of Aerospace Medicine 

U.S. Department of Transportation f Q R OrHCiA L Ub ^ UM l Federal Aviation Adminislration 

Public availabi'ilY to be deieiniinsd under 5 USC 552 
SENDER : QOMPLETE THIS SECTION 

CompJete"items 1, 2, and 3. Also compJete 

item 4 if Restricted Delivery is desired. 

Print your name and address on the reverse 

so (hat we can return the cart* to you. 

Attach this card to the bacK of the mailpiece, 

or on the front if space permits. 

1. Anicfe Addressed to; 

Dr. Michael B. Seltg 

President 

M and R Helicopters LLC 

2045 Westgate Drive 

Bethlehem, PA 18017 

A. Siflfi 

N 

• Agent 

• Addressee 

B. flkceivwl'by (PrintedNaw^.--

If VES. enter deli jVa'^Sress betow: 

3. .Swvica Type ^ ^ 

(a^gertifled Man • Expra^ MaS' 

• Reglstenad D Return Receipt Tor Merchandise 

n Insured Mal( D C.0.0. 

4. Restrteted Deflvery? (Ertra fto^ a Yog 

2. Article Number 

(Trans for from service iabal) 7DQ7 m=1D DDD5 3754 T55M 

PS Form 3811 , February 2004 Domestic Retum Receipt 102S95-02-M.1540 

UNITED STATES POSTAL SERVICE 

First-CJass Mail 

Postage & Fees 

USPS 

Pemiit No. G-10 

Paid 

sender: eiease print your name, address, and 2IP.4 in this box 

v ' : •!; '''"^'"-"'^TM'ion Adminislrmion 

; ,; ;.^ :,: Mus,ryDn<g & Alcohol Programs ~- . 

-:•::'/ .^-^ ''^ ^ Columbia Avenue - • ' 

y.;. ;;::.• rv"; College Park, GA 30337 

:/l>ILnJh>JiihnLMiH,hMiiiJ>.!iin;:.JiiJ;J 

FOR OFFlCiAL USE ONLY 

Public avGiiabilitv/ lo b e deteiTiTined under 5 USC 552 
EXHIBIT D 

[See Attached] 
ET'I HelicopterQlQiI^ 

A Subsidiary ol teilron Ire 

POST OFFICE BOX *e i • FORT WORTH, TEXAS 76101 

HtLICOPTER LOG 

ntGlSTFlATiON NO //9r;.">W 

MFGRS SERIAL ^'a^ & ' . 

25 HR. INSP. DUE 100 HR. INSP. DUE 

DATE 

TAKEOFF 

HR. MIH. 

LAND 

HR. MIN. 

FLIGHT TIME 

BRGT. FflWO, 

HR. ^ 

NATURE OF FLIGHT 

AND LOCATION 

H ELICOPTER LOG 

REPAIRS. ADJUSTMENTS. PARTS REPLACED. REMARKS. SIGNATURE & LICENSE NO, 

l/-^-M? 

Q i -

s-' " 

S- o 

CO C > 

0 - ; 

/5ty:^ ,V ^P^^j/gr/ //(/ ^ dtrk^hl ^ <>'n^A^c; f^::K>C^-o(hiS¥''/r)7 

"^fi^ Lf>if'0l30' ^ J SH\L}^ ^oi-:^7.d.c^ 77? 'J.^M<yh7T: ^e -

Til^(r.-^<?>f/^ ^gfyu/*^g^*^v>r>>^ J.i^<^f;^ifcJ. M/l^^^'h^fic ^ S' : ^,_ 

/^/^: ^.-o/f-ZSi'/o y ^M\lt^¥0')7& cii^o/ Sy;^Ayr>r;^7 

Sf-^i-Jr hc>Ui^ce ^ P M^l>^ &fo-y As^^Q'^b/yrc^cJa^cJ. 

TOTAL FLIGHT TIME 

I i£ 

DATE 

//-/^- ^ 

GROUND TIME 

HR. MIN. 

7 

TO TALEf 

AIR TIME 

HB. MIH. 

. 

JGINE riME 

1 

\ \ 

m 

\ 

\ 

; 

t/a cU^c^Q o f hi^i^ci ujti^liN /ec^u'i^eJ. /X j^^'T t AJA^ 

o 

3 O 

X 

o 

o 

T3 

Wt^c^h ^ /^^iV/c^>nWCC Ai^^u.3/A^c J Qy^i^ffffC'^f £^^^''»^t3^J 

GINE LOG . 

REPAIRS, ADJUSTMENTS, PARTS REPLACED SIGNATURE & LICENSE NO. 

^y^hactf i^^^K^ f ^li^a-f-a*^ 63 X . M<?1^ ^oioj)' ^ 

\(1~ 7^tr/yue t^lfZcU i^eAclxcJ PQ^^ S^VM M Clu*, 

9 

Q 

> 

JEDWARDLBAKERia 

i ^ 

,J 

i^i^cTi-^^/y ^^[^f'npuizJ /zrt/ /<z-h<^u tci S^yi/tc<i_^ 

'//oftjc^^ fbfk 'PUSJ\ 

7661-6041 0 
r^M HelicopterCi^liiLiIiJ 

A SiibsidiBiy ol If'.icr. Inc HtLICOPTER LOG 

OWNER 

REGISTRATION 

MODEL 

POST OFFICE BOX 482 • FORT WORTH, TEXAS 76101 MFG'RS SERIAL, 

25 HR. INSP. DUE 

I DATE 

c=: 1 

Si 

Q ! • 

^ Q 

o ~ 

CD i- H 

f3- r n 

TAKEOFF 

HR. MIN. 

TO TALFI 

LAND 

HR. MIN. 

-IGHT' riME 

FLIGHT TIME 

BRGT. FRWO. 

HR. MIN. 

# 1 

m 

#2 

M<^<K^He[icopers^[kntO'wn(PJi 18109 

3/06/2008 

N98CM 

Hobbs: 1547.4 

ACTT-. 1547.4 

ACTC:2173 

1) Replaced Main ship battery with new RG206. Removed S/N 

40057588 life expired. 

2) histalled uew S/N 40214067. See Cert of Conformance from 

Concorde batteries dated 11/12/2007. 

3) Next inspection due 3/2009, Cap. Check. Ref. ICA drawing 5-0142 

rev, J- CoiKorde batteries. 

4) Ops checked good 

5) Retum to service 

Authoiized Signature: 

R Helicopters' 

ugeiie Mcintosh 

A&P#; 3220308 

CD \ 

CO 

r> 

DATE 

GROUND TIME 

HR. MIN. 

AIR TIME 

HR. MIN. 

TOTAL ENGINE TIME 

ENGINE TIME 

BRGT. FWD 

HR. MIN 

ENGINE' 

BRGT. F\ 5/16/2008 

^98CM_ 

Hobbs: 1550.3 

ACTT: 1550.3 

ACTC: 2177 

ETT: 1550.3 

0^€L<K^HeCtcoptersJlOentoum<PA 1S109 

1.) Torque checked C/W on Main Rotor Mast Nut. lAW Special. 

bispections 5-00-00 page 63/64. 

2.) Re-safetyed lock plate and applied anti- saboteur cream. 

\ LICENSE 

3.) Retum to service. 

Authorized Signature; '/^/^f^yWj 

&R Helicopters 

Eugene Mcintosh 

A&P#: 3220308 

7-24-2008 N98CM ACTT: 1553.0 Hrs Cycles:2183 Main Rotor track and balance ctiecked lAW Chadwick Helmuth 

check list # 4300 and Bell 206 Maintenance Manual Chapter 65. Track and Balance accomplished with Vibrex . 

2000 unit SN: 2575. Lateral balance 0.08 IPS, Vertical balance 0.15 Main Rotor track checked at 60,80 and 100 

KIAS. All measurements found to be \Yittiin lijDJjs, no adjuslmentsjgquired. Nothing Follows 

EVWARV L. BAKER 

A S P 1585^520 6 

V i 

786V60A10 
EXHIBIT E 

[See Attached] 
U.S. Oepartrfient 

of Transportation 

Federal Aviadon 

Administration 

Operations Specifications 

D085. Aircraft I.istJDg HQ Control: 02/06/98 

HQ Revision: 02a 

a. The certificate holder is authorized to conduct operations under 14 CFR Part 135 using the aircraft 

identified on this operations specification. 

Registration No. SeriaJ No. 

N9gCM 1 4056 

Aircraft M/M/S 

BELL-206-B 

1. Issued by the Federal Aviation Administration. 

2.- These Operations Specifications arc approved by direction of the Administrator. 

Hcnningcr, Gerald Principal Maintenance Inspector EA05 

3. Pate Approval is effective: 12/20/04 Amendment Number: 2 

4. 1 hereby accept aud receive the Operations Specifications in this paragraph. 

Sdig, Michael B. . Agent for Service Date: 12/20/04 

Print Date: 8/15/2005 DO 85-1 

M AND R HELICOPTERS LLC 

FOR OFFfCiAL USE ONLY 

Public availability fo be determined under 5 USC 552 

CertificatcNo.: MR3A020K 
EXHIBIT F 

[See Attached] 
"Domenica Phillips" To Latonya Williams/ASO/FAA@FAA 

<Dphlllips@pembrooke.com> 

07/21/2009 03:45 PM ^^^ 

Subject M & R Helicopters 

«MRH00 1 Random_Eligibility_Report[2].pdf» 

Suice%e£y.f 

Domenica Phillips 

DOMENICA PHILLIPS 

MADE 

A Pemhrooke Company 

CUSTOMIZED EMPLOYMENT SCREENING SOLUTIONS 

66 COMMACK RD. 

STE 100 

COMMACK, NY 11725 

PHN: 631-462-073 5 

OFFICE FAX: 631-462-097 8 

DIRECT E-FAX: 804-545-328 7 

E-mail: dphil[ips(a)pembrooke.com 

Website: www.pembrooke.com 

MRHCC-l ?,Endon_dQb'.y_F-eDon[2\.Q-ii 

FOR OFFICIAL USE ONLY 

Public avQilabiliiy to be determined under 5 USC 552 
.xandom Eligibility Report 

Customer: M & R HELICOPTERS - 24913 

Date Range: 01/01/2007 - 07/21/2009 

Location: M & R HELICOPTERS - MRHOOI 

Mode: FAA 

emprho J.;i;i-^''^^}.|^3-l 

XXX-XX-1711 

naif^''^-^^}v^'^^'•'.^'"jf f ,;'••, ' ' ^ :• •.' ; 

SELIG, MICHAEL 

., Job code 

1 

'.'•' ,• T'Pu" year 

2007 

.•:-"h"puH'period 

1 

Location: M & R HELICOPTERS - MRHOOI 

Mode: FAA 

?'T!Pln°C"'^'>S^i^ 

XXX-XX-1711 

na1fTie^A-yU,:.",^.3i^'t ^-I'V' ^ >• .''.'Li 

SELIG, r^lCHAEL 

' Job code 

1 

.' ^.' pull'year 

2007 

'^.'p'ulllperiod 

2 

Location: M & R HELICOPTERS - MRHOOI 

Mode: F/\A 

cmpl no " '•;7''V -v.*p 

xxx-xx-i7n 

name ,-r„-.~i '\ ' ~ -.'' > • • 

SELIG. IVIICHAEL 

. .Job'cbcie 

1 

," ", . pullyear 

2007 

/.'pull period 

3 

Location: M & R HELICOPTERS - MRHOOI 

Mode: FAA 

XXX-XX-1711 

name!i^:-^j*;'' •'•^*^ j, .'"ij'• , ' '_, .^' ,', 

SELIG, fvllCHAEL 

• Ijbb'cbde 

1 

c-v!r:':k. pk'l'X??'^ 

2007 

V pull period 

A 

Location: M & R HELICOPTERS - MRH001 

Mode: F/\A 

emp|no_v ': J.^.T'.-f .:.i*^ 

XXX-XX-1711 

'na'me'i,'*'...:.. •• • " ; • "' •'\l'^' ' 

SELIG, MICHAEL 

Job'cbcie 

1 

;• pull year 

2007 

[, pulllperiod 

5 

Location: M & R HELICOPTERS - MRHOOI 

Mode; FAA 

empl hp'-:r.^?^,;:<^^^:;r^ij^" 

XXX-XX-1711 

'name','::",',• ;i / • '^-',',y.\'! j.' . • ''- ' 

SELIG, MICHAEL 

J o b code 

1 

: pull yea'r 

2007 

pull period 

6 

Run on; 7/21/2009 3:43:31 PM 

Report Version: 1 0 

.,,, , FOSOFFfCKUSEOMV 

lof 6 
.^andom Eligibility Report 

Customer: M & R HELICOPTERS - 24913 

Date Range: 01/01/2007 - 07/21/2009 

Location: M & R HELICOPTERS - MRHOOI 

Mode: FAA 

empl no .-'>;•. ': |-

xxx-xx-i7n 

name ,' .'". _ • ~'^-. -j 

SELIG, MICHAEL 

job code 

1 

• , pullyear 

2007 

I'pull'p'enqd 

7 

Location: M & R HELICOPTERS - MRHOOI 

Mode: FAA 

empino "']•,•.•••'"^ ' 'tlC:A 

XXX-XX-J7TJ 

na'me'v'y ^ ""^''•.'" " ^-^ ' • •' -' : ' '' 

SELtG, MICHAEL 

' Job code 

1 

,', pull'ycar 

2007 

-^, pull period 

8 

Location: M & R HELICOPTERS - MRH001 

Mode: F/^A 

empl no • ' 

xxx-xx-i7n 

name . . 

SELIG, MICHAEL 

. 'job code 

1 

pullyear 

2007 

.' ptillF'period 

• 9 

Location: M & R HELICOPTERS - MRH001 

Mode: FAA 

empl no- ' ' • .^ '•'.. '^ 

XXX-XX-1711 

name' '.';. '} ,- , ' . ^ • •' 

SELIG, MICHAEL 

• • ;..iob code 

1 

^.SL^ : -^Pulliyear 

2007 

i-',pull'period 

10 

Location: M & R HELICOPTERS - MRHOOI 

Mode: FAA 

empl no •• ';"' . name ' '• " 

XXXXX-1711 SELIG, MICHAEL 

~. Job'code 

1 

' pull year 

2007 

pull period 

11 

Location: M & R HELICOPTERS - MRHOOI 

Mode: FAA 

empl ho- ' ." '• •• -1 . •; 

XXX-XX-1711 

name'~'"... . 

SELIG. MICHAEL 

• : job code 

1 

pull year 

2007 

pull'period 

12 

Run on: 7/21/2009 3:43:31 PM 

Report Version: t.O 

FOR OFFICIAL USE ONLY 

Public avQilQbilify to be determined under 5 USC 552 

2 of 6 
ixandom Eligibility Report 

Customer: M & R HELICOPTERS - 24913 

Date Range: 01/01/2007 - 07/21/2009 

Location: M & R HELICOPTERS - MRHOOI 

Mode: FAA 

emplino ^ ' ., . 

XXX-XX-1711 

namei '-','.'' . ' \ ' ''!' ' - .. " ; 

SELIG, MICHAEL 

'job code 

1 

" "_ ,. pull year 

2008 

'p'uH'perio'd 

1 

Location: M & R HELICOPTERS - MRHOOI 

Mode: FAA 

emp l n o . ^ ' '.•" •'•'7"'' 

xxx-xx-i7n 

name ' " ".)_; \ . \ ,' -!) ' " ' i 

SELIG. MICHAEL 

job code 

1 

,-,;^ pullyear 

2008 

pull period 

2 

Location: M & R HELICOPTERS - MRHOOI 

Mode: FAA 

empl no- ,*^.._ 

XXX-XX-1711 

ha'm' e • ••' • • 

SELIG, MICHAEL 

job code 

1 

. piill year 

2008 

'' pull period 

3 

Location: M & R HELICOPTERS - MRHOOI 

Mode: FAA 

enipl'iio ."i' , i'-^r" ..-.•. ''^• 

XXX-XX-1711 

n^me''j. •""^V '.(<, , ' v • - ^ 

SELIG, MICHAEL 

•.''- jbb'cbcle 

r.-l ,.^'.-.,« , ..J. I 

1 

"^"vT'I" ^'iJI ' year 

2008 

li^'pu^l I; period 

4 

Location: M & R HELICOPTERS - MRHOOI 

Mode: F/\A 

empLho- " ^ .'x'-?' i^ TXXX-XX-1711 name" ' , '".'',' • -.•> ' ' '. • '.• 

SELIG, MICHAEL 

' '. Job code 

1 

Ipiillyear 

2008 

." .pull peribcJ 

5 

Location: M & R HELICOPTERS - MRHOOI 

Mode: FAA 

emp|i'n6]_, .i !.V-;!^^^;''-v ^ 

XXX-XX-1711 

na'me?: • • '. ''1-',;. '• • ,'• - " 

SELIG, MICHAEL 

• , Job code 

1 

••• • pull year 

2008 

:'pullperlod 

6 

Run on: 7/21/2009 3:43:31 PM 

Report Version: 1 0 

FOR OFFICIAL USE ONLY 

Public avoilobiii^/ lo bs deiermined under 5 USC 552 

3 of 6 
.xandom Eligibility Report 

Customer: M & R HELICOPTERS - 24913 

Date Range: 01/01/2007 - 07/21/2009 

Location: M & R HELICOPTERS - MRHOOI 

Mode: FAA 

erhpl.'nb:.'.'': .',X '•' -'K.'r 

XXX-XX-1711 

l!^fi.^^<S\.^:K^J]^^-.LJ ... ^'.y'--' l 

SELIG, MICHAEL 

, job code 

1 

, •'.'•• 'pullyea r 

2008 

'.i.puirperiod 

7 

Location: M & R HELICOPTERS - MRHOOI 

Mode; FAA 

emplino;, .^''^'^ •.}}Z''1]-J^, 

XXX-XX-1711 

nanTe^',!" ' ^7''". ' ^"7.', ' '.' 

SELIG, MICHAEL 

, ' • job'cb'de 

1 

' pujlyear 

2008 

'.. pull peflb'cl 

8 

Location: M & R HELICOPTERS - MRHOOI 

Mode: FAA 

empl no .' •' "!' • -,; 

XXX-XX-1711 

fiarri'e-,^' -- ^ " ^ '/ ' * 

SELIG, MICHAEL 

Job' code 

1 

-'pullyear 

2008 

'. pulllperiod 

9 

Location: M & R HELICOPTERS - MRH001 

Mode: FAA 

empLnoV T • • '••'."'• '^. ,. - •s,-.. . _....;>'.-^:.t~i 

XXX-XX-1711 

'f?!s.iL >./:.."i'^i:.l :.-. i. :•;_.;; 

SELIG, MICHAEL 

' Job code 

1 

l&7-M:/.r.^i'y?3^ 

2008 

jj.-^tJllpenod 

••.. • . :-i o 

Location: M & R HELICOPTERS - MRHOOI 

Mode: FAA 

empInO'. " ' '" ^Tilname; - '^. ' • * - • - .••,-. 

XXX-XX-1711 SELIG, MICHAEL 

. Job code 

1 

'p'ull year 

2008 

' pull'peribd 

11 

Location: M & R HELICOPTERS - MRHOOI 

Mode: FAA 

erhprno.^'," ; ' '<?•'' 

XXX-XX-1711 

narfe' •'.•'"• - '^.P ' .; .** 

SELIG, MICHAEL 

. Job code 

1 

' pullyear 

2008 

^ pull peribd 

12 

Run on- 7/21/2009 3:43:31 PM 

Report Version: 1.0 

FOR OFFiCIAL USE ONLY 

Public availab!!i^/ lo b e deteircined undei 5 USC 552 4 of 6 
.xandom Eligibility Report 

Customer: M & R HELICOPTERS - 24913 

Date Range: 01/01/2007 - 07/21/2009 

Location-. M & R HELICOPTERS .- MRHOOI 

Mode: FAA 

eniplTio' '•'" ; ' , ' ,-• 

XXX-XX-1711 

Kame-' . •••.'"'''. ''.•.'^•\-^' ,• .'' 1 

SELIG, MICHAEL 

; Jo b code 

1 

J ' ; I'-'piillyeaf 

2009 

^^:•pu|liperi6d 

1 

Location: M & R HELICOPTERS - MRHOOI 

Mode: FAA 

emplinbi '.,•'.-.' l"-''J"^i'. 

XXX-XX-1711 

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SELIG, MICHAEL 

4;::jpfjcb'de 

1 

[--• j;pi^"yfi^' ^ 

2009 

^ pull'pe'riocf 

2 

Location: M & R HELICOPTERS - MRHOOI 

Mode: FAA 

emplh b 

XXX-XX-1711 

iianie)^ -; '. :-. :• •"'. ;, 

SELIG. MICHAEL 

'jo b code 

1 

'\.'" 'plillycar 

2009 

jt-.piillpeflod 

3 

Location: M & R HELICOPTERS - MRHOOI 

Mode: FAA 

empl'no.'',' -.'-^ y "•.•"• •;,' 

XXX-XX-1711 

na'rrie..'.";.'-..•''.'••'. '': "-'•.•' : •'••' ^[•'"•. 

SELIG. MICHAEL 

job' c"ode 

1 

;! ', ^" PJJ'J'y^^r 

2009 

'•'piill peribd 

4 

Location: M & R HELICOPTERS .- MRH001 

Mode; FAA 

empl hb. 

XXX-XX-1711 

name" ,i .' •'. 

SELIG, MICHAEL 

job code 

1 

• pullyear 

2009 

' pullperio'd 

5 

Location: M & R HELICOPTERS - MRHOOI 

Mode: FNK 

enipl no' ' • •; .',' ""i'-'^. 

XXX-XX-1711 

'name' '"'•'*."•• ' '- : • . • • .",• •"' 

SELIG, MICHAEL 

job code 

1 

- pull ye'ar 

2009 

„ pulTperiod 

6 

Run on 7/21/2009 3 4.1-31 PM 

Report Version: 1 0 

FOR OFFICIAL USE ONLY 

Public ayaiiQbllir/ lo be dsiermlnecl under 5 USC 552 5 of 6 
.xandom Eligibility Report 

Customer: M & R HELICOPTERS - 24913 

Date Range: 01/01/2007 - 07/21/2009 

Location: M & R HELICOPTERS - MRHOOI 

Mode: FAA 

empl no.. • •' •/77J'* ^ •'''•ji 

XXX-XX-1711 

i]-?.'I'^j:i\/..';':^';(iv^.':-if'r- ..'V»:l._".j 

SELIG, MICHAEL 

; ' job'cb'de 

1 

1 ',' • pLiUVeaV 

2009 

^'pul l period 

7 

Run on: 7/21/2009 3:43:31 PM 

Report Version: 1.0 

FOR OFFICIAL USE ONLY 

Public avQilQbiiliy lo bs deierniined under 5 USC 552 6 of 6 
EXHIBIT G 

[See Attached] 
July 23,2009 

M&R Helicopters 

2045 Westgate Dr 

Suite 205 

Bethlehem, Pa 18017 

Latonya Williams 

FAA 

The Inspector of Aimuals Mechanic was not on the M & R Helicopters Drug Corsortium 

program since the change in policy of February 2004, because it was not made known to the 

Director of Operations. This mechanic had been working on M&R Helicopters Aircraft since 

2003. The mechanic has always been on a drug program through other organizations. 

The second A&P mechanic, an experienced Bell Helicopter trained mechanic, only performed 

replacement of TT straps ever>' two years on the aircraft. He also was not on the drug program 

since 2004 for the same above reasons. This mechanic is also a Chief Medivac pilot for Flight 

Methods Inc and was on their drug program. 

Please note that FAA maintenance inspector, Gerr>' Henninger, who performs Bi-Armual records 

inspections never notified M&Rs Director of Operations of the drug consortium policy changes. 

There has only been 3 part 135's flights since 2004 when the change in policy occurred. 

Michael B. Selig, MD, FACC, CFI-H 

L 

FOR OFFiOAl USE ONLY ^ 

Public ovaiiobiSit^no b e d---''^^^^ 
Inspector Statement 

Reference lOP 6 

On Tuesday, July 21, 2009, the FAA inspection team (Latonya Williams and Kimmy 

Poon) requested Dr. Michael Selig to provide a statement, in writing, to explain why two 

contractors (Eugene Mcintosh and Edward Baker) were not included in his company's 

(M and R Helicopters, LLC) random drug and alcohol testing program. Dr. Selig stated 

that he was preoccupied with some personal matters and could not provide the 

statement on July 21, 2009. However, he would provide the statement on Thursday, 

July 23, 2009. Therefore, the inspection team returned on July 23, 2009, to obtain the 

statement. Upon arrival at the company. Dr. Selig was late for the meeting. Also, there 

was a patient in the waiting area expecting to meet with Dr. Selig. When Dr. Selig finally 

arrived for our meeting, he did have the letter ready to provide to the inspection team. 

He was also-preoccupied with other matters. Dr. Selig finally took the time to draft the 

letter and signed it on July 23, 2009. However, he did not identify the names of the two. 

contractors in his letter, whom were discussed during our initial meeting on Tuesday, 

July 21, 2009. Therefore, this statement is intended to clarify the identity of the 

"Inspector of Annuals Mechanic" and "the second A&P mechanic" as referenced in Dr. 

Selig's letter dated July 23, 2009. 

During the inspection on Tuesday, July 21, 2009, the inspection team looked at all 

records that Dr. Selig indicated that he had pertaining to the drug and alcohol programs. 

The inspector of Annuals Mechanic is referring to Eugene Mcintosh. The airframe 

maintenance log records for aircraft number N98CM dated February 17, 2008, and 

February 16, 2009, both identifies Eugene Mcintosh as the A&P mechanic who 

performed annual 100 hour inspections, which is consistent with Dr. Selig's statement of 

July 23, 2009. 

The second A&P mechanic is referring to Edward Baker. The helicopter maintenance 

log record for aircraft number N98CM dated November 2, 2007, Identifies Edward Baker 

as the A&P mechanic who removed and installed straps, which is consistent with Dr. 

Selig's statement of July 23, 2009. Furthermore, the helicopter maintenance log record 

for aircraft number N98CM dated July 24, 2008, identifies Edward Baker as the A&P 

mechanic who tracked and balanced the main rotor as required for a Bell Helicopter, 

which is also consistent with Dr. Selig's statement of July 23, 2009. 

^i<:.<^^ ^ . 

Latonya Wiiriams, Inspector 

Eastern Compliance and Enforcement Center 

Drug Abatement Division 

Office of Aerospace Medicine 

FOR OFFICIAL USE ONLY 

Public availability to be determined under 5 USC 552 
EXHIBIT H 

[See Attached] 
M&R Helicopters 

DR Helicopters (DRH) 

2045 Westgate Dr 

Suite, 205 

Bethlehem,'Pa 18017 ' 

August 29, 2009 

Latonya Williams, AAM-862 

FAA 

Office of Aerospace Medicine 

1701 Columbia Avenue 

College Park, GA 30337 

Sent by Regular Mail-CS 

Re: Jul y 23 , 200 9 Inspectio n file 2009SO95043 4 

Dear Ms Williams: 

In response to your letter dated August 14, 2009 and our conversation on 

August 24, 2009 regarding alleged violations, I would like to direct your 

attention and have you refer to my prior correspondence dated July 23, 2009 

that addresses some of the initial items you made me aware of during the 

inspection. 

Item Number 1: states that DRH did not determine that Eugene Mcintosh and 

Edward Baker were covered under an FAA-Mandated drug testing program 

prior to using their services. 

This assumption is in error; Eugene Mcintosh was continuously engaged in a 

drug program with Scott Richards Aviation in his capacity a s a full-time lA for 

a part 135 air charter, managing 6 multi-engine turbine aircraft prior to and 

during his performance of maintenance on the DRH aircraft. Scott Richards 

Aviation is located across the street from the Allentown FSDO. 

Also, Edward Baker wa s continuously engaged in a drug program in his 

capacity as a full-time Medivac Pilot and A&P mechanic with Air Methods Inc, 

prior to and during his performance of maintenance on the DRH aircraft. 

Item Number 2: This is erred because it was determined tha t drug testing 

protocols were in order with both mechanics via their full-time employers 

FOR OFFlCiAL USE ONIY 

iPiii: Qyciicbiiify to bs deisffninsd uncfer 5\}X552 
dating back before 2004. 

Please note that the DRH aircraft is located across the street from the 

Allentown FSDO, at Lehigh Valley International Airport. FAA Maintenance 

Inspector, Gerry Henninger, who performs bi-annual records inspections, never 

notified DRHs Director of Operations, Dr Selig of the drug consortium policy 

changes. Perhaps during his last 5 years of inspecting DRH aircraft, Mr 

Henninger was not made aware of policy changes either by the FAA. By lack of 

deficiencies through repetitive inspections by FAA officers, in this regard, over 

this timeframe, validates that regulations were followed, that DRH was in 

compliance and further indicates that the FAA ha s contributed to the ongoing 

alleged violadons. 

DRH is investigating the 2 possibilities discussed with you. I have calls into 

FAA officers' Jeff Stooky and Steve Heche for further options as to how to 

become compliant with the newly disclosed reguladons without any additional 

inconvenience to the mechanics (double testing programs), while containing 

costs. 

I am hopeful tha t we can work together and come to a reasonable resoludon 

and have this violation dismissed, thereby satisfactorily closing this matter. 

Thank you for your consideration. 

Sincerely, 

Michael B. Selig, MD, FACC, CFI-H 

FOROFRClALDSEONlY 

Public ovaliabiliiv lo be de^eimined undet 5 tlSC 55i 
CERTIFICATE OF SERVICE 

I hereby certify tha t I have served a true and correct copy of the forgoing 

document(s) upon the following person(s) by regular, first class mail, 

postage prepaid, addressed to the following: 

Latonya V/illiams, J^J^M-S62 

FAA 

Office of Aerospace Medicine 

1701 Columbia Avenue 

College Park, GA 30337 

By 

Michael Selig, MD, FACC. 

2816 Orefield Rd 

Ailentown^P3.„18104 

Dated % ^ ^ 

' 3\ v(S> 

FOR OFFICIAL USE Q W 

P i ^ ovGiiabilitv to m dstsfminsd undSf 5 USC 552 
EXHIBIT I 

[See Attached] 
o 

• 'J-^- Department Q^^ ^ ^f ,^g Q^J^^ Counsel 800 Independence Ave., SW. 

of Transportation Washington, DC 20591 

Federal Aviation 

Administration 

CERTIFIED MAIL - RETURN RECEIPT REQUESTED 

and REGULAR U.S. MAIL 

October 21,2010 

Dr. Michael B. Selig 

President 

M&RHelicopters, LLC 

2045 Westgate Dr. 

Suite 205 

Bethlehem, PA 18017 

RJE: M&R Helicopters. Case No: 2009SO950434 

FINAL NOTICE OF PROPOSED CIVIL PENALTY 

On July 23, 2010, M&R Helicopters, LLC (M&R Helicopters) was advised through a Notice 

of Proposed Civil Penalty that the Federal Aviation Administration (FAA) proposed to assess a 

civil penalty in the amount of $5,400. After considering all of the information presently part of 

this proceeding, including information presented at an informal conference, it appears that; 

1. M&R Helicopters, LLC (M&R Helicopters) is now, and at all times mentioned 

in this document was, the holder of Air Carrier Certificate No. MR3A020K, issued under 

14 C.F.R. part 119 and authorized to conduct operations under 14 C.F.R. part 135 of the 

Federal Aviation Regulations. 

2. At all times mentioned in this document, M&R Helicopters' operations 

specifications required it to comply with 14 C.F.R. part 121, Appendices I and J and 

49 C.F.R. Part 40 for its antidrug and alcohol misuse prevention program. 

3. At all times mentioned in this document, 14 C.F.R. §§ 135.251(a) and 135.255(a) 

required that M& R Helicopters test each employee who performs a safety-sensitive function 

listed in 14 C.F.R. part 121, Appendix J and J in accordance with those appendices. . 

4. Under 14 C.F.R. part 121, Appendix I, § III, an employee who performs aircraft 

maintenance or preventive maintenance duties, directly or by contract for M & R Helicopters, is 

performing a safety-sensitive function and must be subject lo drug testing under an antidrug 

program implemented in accordance with that appendix. 

5. Under 14 C.F.R. part 121, Appendix J, §11.A, an employee who performs aircraft 

maintenance or preventive maintenance duties, directly or by contract for M & R Helicopters, is 
perfonning a safety-sensitive function and must be subject to alcohol testing under an alcohol 

misuse prevention program (AMPP) implemented in accordance with that appendix. 

6. At all times mentioned in this document, 14 C.F.R. part 121, Appendix I, §V.B, 

required each safety-sensitive employee to be subjected to DOT-required random drug testing in 

accordance with that Appendix. 

7. At all times mentioned in this document, 14 C.F.R. part 121, Appendix J, §ni.C., 

required each safety-sensitive employee to be subjected to DOT-required random alcohol misuse 

testing in accordance with that Appendix. 

8. On or about November 2, 2007, November 18, 2007, and July 24, 2008, Mr. 

Edward Baker III performed safety-sensitive functions for M & R Helicopters. 

9. Mr. Baker was not included in M & R Helicopter's random pool for DOTrequired drug and alcohol testing at the time of the performance reference in paragraph 8. 

10. Mr. Baker did not have and was not included in an FAA-mandated antidrug 

program and AMPP at the time he performed safety-sensitive fiinctions for M & R Helicopters, 

as set forth in paragraph 8. 

By reason of the foregoing, M&R Helicopters violated the following FAA regulations: 

(a) 14 C.F.R. § 135.251(a), in that it failed to test each employee who performed a safetysensitive function listed in 14 C.F.R. part 121, Appendix I in accordance with Section V.A.I and 

Section V.B.5 of that appendix. 

(b) 14 C.F.R. § 135.255(b), in that it failed to test each employee who performed a 

safety-sensitive function listed in 14 C.F.R. part 121, Appendix J in accordance with the 

provisions of Section III.C.5 of that appendix. 

Pursuant to 49 U.S.C. § 46301 (a)(5)(A), M&R Helicopters is subject to a civil penalty not to 

exceed $11,000 for each violation of the Federal Aviation Regulations. After reviewing all of 

the information contained in our investigative file, we propose to assess a civil penalty in the 

amount of $5,400 for these violations. 

Not later than 15 days after it receives this Final Notice, M&R Helicopters may; (1) submit the 

amount of the proposed civil penalty, or an agreed-upon amount, to the FAA, in which case the 

FAA will send M&R Helicopters an order assessing civil penalty and M&R Helicopters will 

have no further right to a hearing; or (2) mail or personally deliver in writing a request for a 

hearing. If M & R Helicopters does not pay an agreed-upon amount or submit a written request 

for a hearing, it must pay the proposed civil penalty. 

Any request by M & R Helicopters for a hearing must be sent to the current address of the 

Hearing Docket as follows: 
Federal Aviation Administration 

600 Independence Avenue, S.W. 

Wilbur Wright Building - Suite 2W1000 

Washington, DC 20591 

ATTN; Hearing Docket Clerk, AGC-430 

Moreover, a copy of any request for a hearing must also be ser\'ed on: 

Laura Ponto, Attorney 

Enforcement Division, AGC-300 

Office of the Chief Counsel 

800 Independence Avenue, S.W. 

Washington, DC 20591 

M &R Helicopters' request for hearing must be dated and signed in accordance with 

14 C.F.R. § 13.16. 

Alternatively, M& R Helicopters may pay the proposed civil penalty by submittmg a check or 

money order payable to the Federal Aviation Administration, to; 

Federal Aviation Administration 

Attention: Brenda S. Barnhiil 

Mike Monroney Aeronautical Center 

6500 South MacArthur Blvd. 

General Accounting, AMZ-350 

Oklahoma City, OK 73169 

If M & R Helicopters elects (o submit payment, a photocopy of the payment instrument should 

also be sent by facsimile to Laura Ponto, Attorney, Enforcement Division/AGC-300 at (202) 

267-5106. 

Any other communications regarding this matter should be addressed to Laura Ponto, 

Enforcement Division/AGC-300, Office of the Chief Counsel, Federal Aviation Administration, 

800 Independence Avenue, S.W., Washington, D.C. 20591, facsimile (202) 267-5106. 

Peter J. Lynch 

Assistant Chief Counsel 

for Enforcement 

By: ^^3W^£<iMi: ^ ^ 

Ponto 

I'ttomey, Enforcement Division/AGC-300 

Office of the Chief Counsel 

Telephone: (202) 267-9863 

Facsimile: (202)267-5106 
EXHIBIT J 

[See Attached] 
MSGR Helicopters 

DR Helicopters (DRH) 

2045 Westgate Drive 

Suite 205 

Bethlehem, PA 18017 

October 27, 2010 

Laura Ponto, Esquire 

Enforcement Division/AGC-300 

Office of the Chief Counsel 

F/VA 

800 Independence Avenue, SW 

Washington, DC 20591 

Sen t by CERTIFIED MAIL- RETURN RECEIPT REQUESTED 

Re; Case No. 2009SO95043 4 

Dear Ms Ponto: 

F*ursuant to correspondence dated October 21 , 2010 and the telephone 

communication on October 1, 2010 requesting a hearing, please be advised 

tha t DR Helicopters will again reiterate its request to have a hearing concerning 

this matter to mediate the miscarriage of justice and the appropriateness of 

sanctions in this case. 

in accordance to the standard rules of court and standards of legal 

practice, please provide a full and complete copy of the text of every regulation 

referenced as a violation, inclusive of adoption dates, a s 1 have found them 

difficult to access on the F/VA website or several search engines and are not 

listed in the standard FAR. You have been so very kind to provide now 4 copies 

of the penalty proceedings regulations, but completely omitted copies of the 

actual language referenced in the regulations that you claim are in violation. 

Thank you for providing me with some of the investigation report, but a 

compiJete report is needed at this time. There was oi^e page that was corrupted, 

dedacted and spoliated, please provide the complete unaltered document. The 

other documents given were not helpful and already in my records. You did 

not include the text for the reference for the case of Jordon v Department of 

Justice . You did not provide the specific regulation and text detailing the 

allowance of your disclosure restriction. 
Thank j'ou for your kind considerations. 

Yours sincerely, i 

Michael Selig, MD, FACC, CFI-H \ ' 

cc. Federal Administration Administration 

600 Independence Avenue, S.W. 

Wilbur Wright Building -Suite 2W1000 

Washington, DC. 20591 

ATTN: Hearing Docket Clerk, AGC-430 
EXHIBIT K 

[See Attached] 
10/01/07 2150.38 

Appendix B 

Table of Sauctions 

All Enfurcement Programs 

Except Hazardous Materials 

Pari One - Abbreviations and Definitions 

1. Applicability. This table of sanctions applies to violations that occurred on or after 

October 1, 2007. For violations occurring before October 1, 2007, FAA enforcement personnel 

apply the sanction guidance principles in FAA Order 2150.3A using up to the statutory 

maximum sanction aniount in effect at the time of the violation. 

2. Abbreviations. The following abbreviations are used in this Table; 

APIS means approved production inspection system 

A/IV means airworthiness 

AWC means airworthiness certificate 

BTS means Under Secretary for Border and Transportation Security 

lA means in.'ipection authorization . 

LE means law enforcement 

PC means production certificate 

STC means supplemental type certificate 

TC means type certificate 

TFR means Temporary Flight Restriction 

TSA means Transportation Security Administration 

3. Definitions: 

q. A continuing violation arises when a specific violation occurs over more than one day 

or over more than one flight. It also may involve a violation that is ongoing, for example, an 

ongoing refusal to provide required records to the FAA for inspection. Punitive sanctions are 

appropriate for continuing violations that arc not currently ongoing. Sanction guidance for • 

these violations is set forth in paragraphs 6 and 7 (multiple acts or multiple violations) of 

chapter 7. A combination of punitive and remedial sanctions is appropriate when continuing 

violations are ongoing. 

b. Violation committed by a small business concern. Section 503 of Vision 100—Century 

of Aviation Reauthorization Act (CARA) amended 49 U.S.C. § 46301 to change the civil 

penalty amounts the FAA may seek for violations that occur on or after December 12, 2003; 

the law sets different limits on the civil penalties the FAA may seek for violations by small 

business concerns, as opposed to violations by other entities. Vision 100 CARA gives small 

business concern the same meaning as in the Small Business Act (15 U.S.C. § 632). Seiction 

632 defines small business concern as an enterprise "which is independently owned and 

operated and which is not dominant in its field of operation." The Small Business 

Administration regulations implement the Small Business Act and define business concern as 

B-1 
10/01/07 2150.3B 

"a business entity organized for profit, with a place of business located in the U.S., and which 

operates primarily within the U.S. or which makes a significant contribution to the U.S. 

economy through payment of taxes or use of American products, materials or labor." 13 

C.F.R. § 121.105. The SBA regulations further define small business concern in tables, 

describing each kind of entity by its economic activity or industry, and listing the limit for 

small by annual receipts or, more commonly, number of employees. (The size limits generally 

are established under the North American Industry Classification System (NAlCS).) For the 

complete list, see 13 C.F.R. § 121.201 or the SBA's website atwww.sba.gov. Thus, if a person 

meets the definition of business concern andhas annual receipts or the number of employees 

within the applicable SBA limit, it is a small business concern, and the FAA will determine the 

civil penalty using the applicable range. Limits for common aviation entities follow (in 

numbers of employees, imless otherwise noted). 

Manufacturing 

Aircraft-1,500 employees 

Aircraft engine and part - 1,000 employees 

Other aircraft part arid equipment- 1,000 employees 

Air transportation. 

Scheduled passenger- 1,500 employees 

Scheduled freight- 1,500 employees 

Nonscheduled passenger - 1,500 employees 

Nonschedulcd offshore marine passenger - $25.5 million annual receipts 

Nonscheduled fi-eight- 1,500 employees 

Nonscheduled offshore marine freight - $25.5 million annual receipts 

Other nonscheduled - $6.5 million amiual receipts 

Support.activities - $6.5 million annual receipts 

Flight Training - $23.5 million annual receipts 

Airport operations 

Airport operator, organized for profit-$6.5 million annual receipts 

Other operations, excluding air traffic control - $6.5 million annual receipts 

Note that the following guidance uses large business concern for some civil penalty ranges. 

That is not a statutory or regulatory term for purposes of FAA enforcement. It includes each 

business concern that exceeds the maximum limit for small business concern, as well as any 

other entit>' that does not meet the definition of "small business concern." 

c. Civil Penalty Ranges. For the purpose ofthis table, when civil penalty action is 

recommended and described as Minimum, Moderate, or Maximum, the penalty ranges are 

defined in subparagraphs (I) through (9) of this paragraph. Note that the middle of each 

recommended sanction range worfld be for a single violation without aggravating or mitigating 

factors. 

B-2 
10/01/07 2150.3B 

(I) VIOLATION COMMIT!HP BY U.S. AIR CARRIERS OR U.S. COMMERCIAL 

OPERATOR. . 

CLASSIFICATION OF AIR CARRIER AND OPERATOR 

GROUP 1 - Each air carrier operating under part 12 For part 135, with an annual operating 

revenue of $100,000,000 or more. Operating revenue is determined by reference to DOT's 

"Air Carrier Industry Scheduled Service Traffic Statistics Quarterly." See 

http://o5tpxwcb.dot.EOv/aviation/index.htmL and click on "Airiine Financial Review." 

GROUP II - Each air carrier or commercial operator operating under part 121 with an annual 

operating revenue of less than $100,000,000, or under part 135 with an annual operating 

revenue of less than $100,000,000, if the 135 operator has 50 or more pilots and 25 or more . 

aircraft on its operations specifications. Operating revenue is determined by reference to 

DOT'S "Air Carrier Industry Scheduled Service Traffic Statistics Quarteriy." 

GROUP III - Each air carrier or commercial operator operating underpart 135 with 6 to 49 

pilots or 6 lo 24 aircraft. 

GROUP rV - Each air carrier or commercial operator operating under part 135 with no more 

than 5 pilots and no more than 5 aircraft. 

GROUP I -/rtr^e business concern 

Maximum $18,750-$25,OOO 

Moderate $ 10,000-$ 18,749 

Minimum $2,00O-$9,999 

GROUP 1 - small business concern (for violations covered under 49 U.S.C. 

§ 46301(a)(5)(A)); 

Maximum $8,250-$! 1,000 

Moderate $4,400-$8,249 

Minimum $1,100-54,399 

GROUP 1 - small business concern (for violations covered under 49 U.S.C. § 46301(a)(1)(A) 

or (B) but not under 49 U.S.C. § 46301(a)(5)(A)): 

Maximum $850-$l,100 

Moderate $650-$849 

Minimum $500 $649 

GROUPII - large business concern: 

B-3 
10/01/07 2150.3B 

Maximum $16,250-$25,000 

Moderate $8,750-$l6,249 

Minimum "Sl,850-$8,749 

GROUP IT - small business concern (for violations covered under 49 U.S.C. § 46301 (a)(5)(A)): 

Maximum $8,250-$n,000 

Moderate $3,850-$8,249 

Minimum $935-$3,849 . 

GROUP II - small business concern (for violations covered under 49 U.S.C. § 46301(a)(1)(A) 

or (B) but not under 49 U.S.C. § 4630)(a)(5)(A)): 

Maximum $750-$ 1,100 

Moderate $450-$ 749 

Minimum $250$ 449 

GROUP 111 -for violations covered under 49 U.S.C. § 46301(a)(5)(A): 

Maximum $7,150-$n,000 

Moderate $3,300-$7,149 

Minimum $825-$3,299 • 

GROUP m - for violations covered under 49 U.S.C. § 46301(a)(1)(A) or (B) but not under 49 

U.S.C. § 46301(a)(5)(A): 

Maximum $650-31,100 

Moderate $400-$ 649 

Minimum $150-$ 399 

GROUP IV -for violations covered under 49 U.S.C. § 46301(a)(5)(A): 

Maximum $4,400^$ 11,000 

Moderate $2,200-$4,399 

Minimum $550-$2,199 

GROUP rv - for violations covered under 49 U.S.C. § 46301 (a)(1)(A) or (B) but not under 49 

U.S.C. § 46301(a)(5)(A): 

Maximum $500-$!,100 

Moderate $300-$499 

B-4 
10/01/07 2150.3B 

Mmimum $100-$299 

(2) VIOLATION COMMITTED BY PART 129 OPERATOR 

Maximum $18,750-$25,000 

Moderate $10,000-318,749 

Minimum $2,000-$9,999 

(3) VIOLATION COMMITTED BY PART 125 OPERATOR. 

Large Business Concern: 

Maximum $16,250-$25,000 

Moderate S8,750-$16,249 

Minimum $l,ii50-$8,749 

Small Business Concern (for violations covered under 49 U.S.C. § 46301(a)(5)(A)): 

Maximum $8,250-$ 11,000 

Moderate $3,850-38,249 

Minimum $935-$3,849 

Small Business Concern (for violations covered under 49 U.S.C. § 46301(a)(1)(A) or (B) but 

notunder49 U.S.C. §4630I(aj(5)(A)): 

Maximum $750-$!,100 

Moderate $450-$749 

Minimum $250 $449 

(4) VTOLATIQN COMMITTED BY AIR AGENCY (INCLUDING REPAfR STATION^. 

Large Business Concern: 

Maximum $I6,250-$25,000 

Moderate. $8,750-$ 16,249 

Minimum $l,850-$8,749 

Small Business Concern (for violations covered under 49 U.S.C. § 46301(a)(5)(A)): 

Maximum $7,150-$ 11,000 

Moderate $3,850^$7,149 

Minimum $935-$3,849 

B-5 
10/01/07 2150.3B 

Small Business Concern (for violations covered under 49 U.S.C. § 46301(a)(1)(A) or (B) but 

not under 49 U.S.C. § 46301(a)(5)(A)): 

Maximum $750-$L100 

Moderate $450-$749 

Minimum $250 $449 

(5) VIOLATION COMMnTED BY AIRPORT OPERATOR. 

Large Business Concern: 

Maximum $18,750-325,000 

Moderate $10,000-$18,749. 

Minimum $2,000-$9,999 

Small Business Concern (for violations covered under 49 U.S.C. § 46301(a)(5)(A)): 

Maximum $8,250-$l 1,000 

Moderate $4,400-$8,249 

Mmimum $1,100~$4,399 

Small Business Concern (for violations covered under 49 U.S.C. § 46301(a)(1)(A) or (B) but 

not under 49 U.S.C. §46301(a)(5)(A)): 

Ma.^irnum $850-31,100 

Moderate $650-3849 

Minimum $500 3649 

(6) LARGE BUSINESS CONCERN - DOES NOT HOLD CERTIFICATE 

Maximum $ 18,750-$25,000 

Moderate $10,000-$ 18,749 

Minimum $2,000-39,999 

(7) SMALL BUSINESS CONCERN - DOES NOT HOLD CERTIFICATE 

For violafions covered under 49 U.S.C. § 46301(a)(5)(A): 

Maximum $4,400-$! 1,000 

Moderate $2,200-$4,399 

Minimum 3550-32,199 

B-6 
10/01/07 2150.38 

For violations covered under 49 U.S.C. § 46301(a)(1)(A) or (B) but not under 49 

U.S.C. § 46301(a)(5)(A): 

Maximum $500-31,100 

Moderate $300-3499 

Minimum $100-$299 

(8) VIOLATION RELATING TO THE TRANSPORTATION OF A HAZARDOUS 

MATERL^L (14 CFR),TFCE REGISI'RATION OR RECORDATION OF AN 

AlRCRAFf NOT USED TO PROVIDE AIR TRANSPORTATION. 

THE LIMITATION ON THE CONSTRUCTION OR ESTABLISHMENT OF A 

LANDFILL. OR THE SAFE DISPOSAL OF A LIFE-LIMITED AIRCRAFT PART. 

Large Business Concern (if entity is not within a more specific category, for example, 

Group I Air Carrier or Operator): 

Maximum $I6,250-$25,000 

Moderate $8,750-316,249 

Minimum $1,850-38,749 

Small Business Concern (if not within a more specific category for example. Group II 

Air Carrier or Operator) or Individual: 

For violations covered under 49 U.S.C. § 46301 (a)(5)(A): 

Maximum $4,400-$ 11,000 

Moderate $2.200-$4,399 

Minimum $550-32,199 

For violations covered tmder 49 U.S.C. § 46301(a)(1)(A) or (B) but not under 49 

U.S.C. §46301(a)(5)(A): 

Maximum $500-$ 1,100 

Moderate $300-$499 

Minimum $iOO-$299 

(9) OTHER VIOLATION COMMITTED BY AN INDIVIDUALAIRMAN SERVING AS AN AIRMAN - INDIVIDUAL SERVING IN CAPACFFY OF AN 

AIRMAN. ALL VIOLATIONS EXCEPT THOSE LISTED IN (8). 

Maximum $850-$!,100 

B-7 
10/01/07 2150.3B 

Moderate S650-$849 

Minimum S500-$649 

OTHER INDIVIDUAL - NOT SERVING IN CAPACITY OF AIRMAN. 

For violations covered under 49 U.S.C. § .46301 (a)(5XA): 

Maximum $4,400-$l 1,000 

Moderate 52,200-34,399 

Minimum $550-32,199 

For violations covered under 49 U.S.C. § 46301(a)(1)(A) or (B) but not under 49 

U.S.C. § 46301(a)(5)(A): 

Maximum $500-31,100 

Moderate $300-$499 

Minimum $100-3299 

(10) . ENGINEERING AND MANaJFACTURTNG VIOLATIONS. 

Large Business Concern; 

Maximum $18,750-325,000 

Moderate $10,000-318,749 

Minimum $2,000-39,999 

Small Business Concern or Individual (for violations covered under 49 U.S.C. § 

46301(a)(5)(A): 

Maximum 38,250-311,000 

Moderate 34,400-38,249 

Minimum 31,100-34,399 

Small Business Concern or Individual (for violations covered under 49 U.S.C. § 

46301(a)(1)(A) or (B) but not under 49 U.S.C. § 46301(a)(5)(A): 

Maximum $850-$!,100 

Moderate $650-3849 

Minimum $500 $649 

B-8 
10/01/07 2150.3B 

d. Pending compliance or corrective action: injunctive relief. For many kinds of violations, 

there may be circumstances where the FAA should not allow the offending entity to continue lo 

operate or to continue in business. Examples include a certificate holder that does not allow an 

FAA inspector to inspect the holder's operation or facilities, or an unapproved manufacturer 

that produces aircraft parts in violation of 14 C.F.R. § 21.303. In that circumstance, suspension 

of an enlit>''s certificate or other approval, pending compliance or corrective action, or 

injunctive relief against an entity that does not hold an FAA approval, would be appropriate. 

In egregious circumstances revocation of the entity's certiticatcor other approval may be 

warranted. Such action or relief may be considered in addition to the assessment of a civil 

penalty as recommended in the following tables. 

Furthermore, amendment or modification of a certificate or approval may be appropriate in the 

circumstance where a definifive part of the offending entity's operation can be safely excluded 

from the operational approval. An example is an approved aircraft parts manufacturer that . 

makes multiple kinds of parts, but has quality control problems for only one kind of part. Such 

action may be considered in addition to the assessment of a civil penalty as recommended in • 

the following tables. 

Part Two - Sanction Guidapce Tables 

Index 

1. U.S. Air Carriers, U.S. Commercial Operators, Fart 125 Operators, and Part 129 

Operators, 

Fig. B-1-a. Maintenance Manual 

Fig. B-I-b. AAV Directive 

Fig. B-1-c. Operations Specifications 

Fig. B-i-d. Facilities and Equipment 

Fig. B-l-e. Maintenance and Inspection Organization 

Fig. B-l-f Training Program 

Fig. B-1-g. Maintenance or Aircraft Paperwork 

Fig. B-l-h. Performance of Maintenance 

Fig.B-1-i. SFAR36 

Fig. B-l-j. Records and Reports 

Fig. B-Uk. Dispatch and Flight Release Rules 

Fig. B-l-I. Operation of unairworthy aircraft 

Fig. B-l-m. Provisions specific to passenger-carrying 

Fig. B~l-n. Provisions specific to flight deck crew 

Fig. B-l-o. Other provisions 

Fig. B-l-p. Operations at airports requiring slots 

2. Personnel of Air Carriers, Commercial Operators, and Part 125 Operators. 

Fig. B-2-a. Maintenance, including inspection 

Fig. B-2-b. Inspection 

B-9 
10/01/07 2150.3B 

Fig. B-4-C. Drug convictions - no falstflciition involved 

cont. 

(2) Multiple convictions for simple possession* 

(3) Conviction(s) for other than simple possession* 

Civil Penalty Certificate 

Action 

120-day 

Suspension 

to 

Revocation 

of all part 61, 

63, or 65 

certificates 

Revocation 

of all part 61, 

63,or 65 

certificates 

*lt may be appropriate, in tlie exercise of prosecutorial discretion, not to take enforcement action when 

a conviction is several years old when discovered by the FAA and there is evidence that the certificate 

holder has been rehabilitited such that the individual can be expected to conform his or her conduct to • 

safety requirements. 

5. DRUG ANDALCOHOL TESTING MOLATIONS. 

Fig. B-5-a. Drug and Alcohol Testing Violations 

(1) Failure of an air carrier operaiing under part 121 or part 

135 operator to obtain an operations specification 

(2) Failure of a part 145 operator (that opts to have its own 

drug program and AMPP) lo obtain an operations 

specification 

(3) Failure of a Section 135.1(c) or non-PAA air tratTic 

control facility to submit a registration to the FAA 

(4) Failure of a contractor (that opts lo have its own drug and 

alcohol programs) to submit a registration to the FAA 

(5) Failure to implement or maintain continuous coverage in 

an FAA antidrug progrum and/or AMPP in accordance with 

Appendices I and/or J 

Civil Penalty 

Moderate 

Moderate 

Moderate 

Moderate 

Maximum 

Certificate 

Action 

Indefinite 

Suspension 

pending 

compliance 

or 

Revocation 

Fig. B-5-b. Coverage 

• 

(1) . Failure to include a safely-sensitive employee in FAA 

mandated drug and alcohol testing programs 

(2) Pennitting a contractor employee to perform a function 

listed in Appendix 1 or J who is not covered under an FAAmandaied antidrug and/or alcohol misuse prevention proRram 

Civil Penalty 

Maximum 

Maximum 

Certificate 

Action 

B-31 
EXHIBIT L 

[See Attached] 
04/01/20 1 1 8.43A H FAX gjOOOJ/UU- ^ f 

e .o\\// 

DETACH HERE BEFORE MAILING 

REV-853R CTco(fioT)IN 

PA OEPARFMENT OF REVENUE 

BUfiEAU OF COftPORATION TflXES 

PA CORPORATION TAXES 

REV-853 ANNUAL EXTENSION REQUEST 

ACCOUNT ID 

4719-700 

PERIOD ENDING 

12/31/07 

RPT. CODE EWriY ID (EiN) 

23-3078396 

DUE DATE 

4/15/08 

CORPORATION NAME 

M & R HELICOPTERS LLC 

STATE OF INCORPORATION 

PENNSYLVANIA 

NEW CDRPQRAT10N3 (ENTER NEW ADDRE33) 

STRECT 

Cirr' STATE ZIP 

1 CS/FF TAX PAYMENT .. . 

2 LOANS TAX PAYMENT... 

3 CNI TAX PAYMEHT 

4 TOTAL PAYMENT < t 

(Add lines 1,2 and 3.) ^ 

PACZOSOtL tl/27/07 

DEPT use ONLY 

00 

00 

00 

00 

DATE 

4/15/08 

TELEPHONE SIGNftTURE 

610-391-9050 ' ~^ ^ 

TITl.E 

CPA 
04/01/201 1 8:4dAM FAX I210004/002Y 

r 

:T-101 PAGET OF 6 

'^ 1120 1120S 

STEP A 

1D1DDD7135 

DEPARTMENT USE ONLY 

PA CORPORATE TAX REPORT 200 7 

i 200 n 20F 1120H 1055 1040 Other 

STEPS 

•vN /" y ^r.^ 

n 

Tax Year Bog. 

Tax Year End. 

XX 

XX 

D1Q1BGD7 

1531^007 

Regulated Inv Co. 

52-S3 Week FJJer 

AdClress ChangB 

XX 

XX 

XX 

N 

N 

N 

First Report 

Koz/ElP Credit 

FiiQ Period Chango 

XX 

XX 

XX 

N 

N 

N 

STEPC 

Corp Tax Account ID 

FOdoralEIN 

Business Activity Code 

corporation Nums 

Address Line 1 

Address Line 2 

City 

State 

ZIP 

XX 

XX 

XX 

XX 

XX 

XX 

XX 

XX 

XX 

STEP D A: Tay Ltabiiity 

from Tax Report 

CS/FF 

LOANS 

N I 

.OTAL 

D 

a 

D 

a 

233D7fl31t. 

4filOOD 

f1 a R HELICOPTERS LLC 

5045 WESTGATE DRIVE SUI 

BETHLEHEMPA 

B: Estimated Payments 

tt CrBditi on Deposit 

Q 

0 

a 

D 

C: Roslricted 

Credits 

D 

D 

D 

G 

CaJcyJdtion: 

A minus B minus C 

0 

Q 

• 

0 

STEP E; f^aymenf 

Mdka dmc h (Q[ this amouni 

pijroblB t o 'PA DB|) \ ul novanuo' 

Made Payment Via EFTj N 

STEP F: Refund/Transfer Method 

Select one ot the following options: 

A N T0l9l li«nsfcr ol oodil 

B N ToiAl leluiiJ ul uicdit 

STEP G: Corporate Officer 

(Sign affirmation below) 

NAME 

PHONE 

E-MAIL 

MICHAEL B SELIG 

FORM 

BARCODE 

1032 

PACZOIOI L n/7C/07 

"11 hereby afflm under penalties prescribed b> law that this report (including any jccompanying ichaduids and itjtem9nli) has beeimsmlred 

J and to 'Cnt besi of mi_ krwivIedgB and baliaf u a true, correct and complete report. M prepared t^i a person otherlhan the taipEver, his dec/ara 

I based gn all informaimn of which he has any knowledqe. I Corporata Oftlcar Slflnalurfl/Oate 

'anlian ts 
04/01/201 1 8:44AM FAX 00005/002 7 

r 

ACCOUNT I D 

TAX rEAR END 

:T-101 PAGE 2 OF 6 

1D1DDD7E35 

47n7n D 

1531EDD7 NAHE M S R HELICOPTERS LLC 

PA CORPORATE TAX REPORT 2007 

n 

SECTION A: CS/FF 

OLDEST PERIOD 

FIRST 

YEAR 1 

YEAR 2 

YEAR 3 

YEAR M 

YEAR 5 

YEAR t, 

YEAR 7 

CUR YR 

TAX PERIOD 

BEGINNING 

QIQIEDOB 

Q1Q12QDM 

DiaiBQDS 

DiniEODL 

DiaiPQD? 

TAX PERIOD 

ENDING 

1E312DD3 

1E31EQ0M 

13312005 

12315aOL. 

1231ED07 

BOOK INCOME 

-13=112 

•12b731 

•1212SM 

-1167i a 

Investment in LLC XX N 

Holding Company XX N 

Family Farm XX N 

WHOLE DOLLARS ONLY 

2 TOTAL BOOK INCOME (sum of income for all tax periods up to, but not over 5 years total) 

3 DIVISOR (in years and in part years roundod to three docimal places) See iristruclions 

4 Divide Line (2) by Line (3) 

5 AVERAGE BOOK INCOME - Enter Line (4) or if Line (4) is less than zero enter '0' 

-M3711X 

S-DDD 

-fi7M22 

Q 

6 Divide Line (5) by 0.095 

7 Stiaruholdors' equity at tlie END of the current pofiod 

B aharetioldera' equity at the BEGINNING ot the current period 

9 it Line (7) is more than twice as great or less than half as much as Line (8), 

add Linos (7) and (8) and ctivide by 2. Otherwise enter Line (7). 

D 

-536672 

-M2D15M 

n 

10 NET WORTH - Enter Line (9) or if Line (9) is less than zero enter '0' 

11 Multiply Lino (10) by 0.75 

12 AddLinas (5) and (11) 

13 Divide Line (12) by 2 

14 $150,000 valuation deduction 

15 CAPITAL STOCK VALUE - Line (13) less Lino (14) but not less than'0'. 

If 100% Taxable, enter Line (15) on Line (17) 

l a 

11 

12 

13 

IM 

IS 

0 

0 

0 

,0 

-1500QO 

0 

16 Proportion of taxable assets Or apportionment proportion (From Schedule A-1, Line 5) I L 

17 TAXABLE VALUE - Multiply Line (15) by Line (16). If less than zero, enter '0' 1 7 

IB CAPITAL STOCK/FOREIGN FRANCHISE TAX - Multiply Lino (17) by 0.003£9. If l 

i-onaonn 

0 

0 

Total Beginnino of 

Taxable Year Assets 3MflS15 

Total End of Ta<.able 

Yea; Assets 236077 

101DDD723S PAC2O102L n/26OT 1D1DDD723S J 
04/01/20 1 1 8:44AM FAX 1210006/0027 

r 

ACCOUNT I D 

TAX YEAR END 

:T-101 PAGE 3 OF 6 

1D1QD07335 

M71=^7DD 

123120D7 NAllE n a R HELICOPTERS 

PA CORPORATE TAX REPORT 2007 

LLC 

"1 

SECTION B ; Bonus Dspwclatlon 

1 Current Year Fed Depreciation of l68k Prop 1 

2 Current Year Adj for Disposition of 16Bk Prop 2 

3 Other Adjustments 3 

(Must Attach Schedule C-3 if claiming 

bonus depreciation) 

D 

D 

a 

Business Trust 

Solicitation Only 

Single Member LLC 

Multl-tVlombor LLC 

PA-S 

Taxable Built-in Gains 

XX 

XX 

XX 

XX 

XX 

XX 

N 

N 

Y 

N 

N 

N 

SECTION C: CORPORATE NET INCOME TAX 

1 Incomo or Loss irom toderal return on a separata company basis 

DEDUCTIONS; 

A Corporate Dividends Received (From Schedule C-2, Lino 6) 

B Interest on U.S. Securities (GROSS INT less EXPENSES) 

C Current Yr Additional PA Deproc plus Adjust for Sale (Attached Schodulo C-3) 

D Other (Attached Schedule). See Instructions 

TOTAL DEDUCTIONS - Sum o( (A) through (D) 

2A 

2B 

2C 

2D 

2 

ADDITIONS: 

A Taxes impoS'scl on or measured fay net income (Attached Schedule) 

B Tax Preforonco Items (Attached copy ol Fedoral Form 4626) 

C Employment Incentive Payment Credit Adlustment (Attached Schedule W) 

D Current Year Bonus Depredation (Attached Schedule C-3> 

E Other (Atlachad Schodulo). See Instructions 

TOTAL ADDITIONS - Sum of (A) through (E) 

3A 

3B 

3C 

3D 

3E 

3 

Income or Loss with Pennsylvania Adjustments (Line 1 • Line 2 + LIno 3) 

Total Nonbusiness Income (or Loss) 

Income (or Loss) to be Apportioned (Lino 4 • Line 5) 

Apportionment Proportion (from Schedule C-1 Line 5) 

Income (or Loss] Apportioned to PA (Line 6 x Line 7) 

Nonbusiness Income (or Loss) allocated to PA 

4 

5 

6 

7 

S 

9 

10 Tpxable Incoma (or Loss) after Apportionment (Line 8 + Line 9) 

n Total Net Operating Loss Deduction (from RCT-103) can not oxcced $3,000,000 

or 12-1/2% of Linelo 

12 PA Taxable Income (or Loss) (Line 10- Line 11) 

13 Corporate Net Income Tax (Line 12 x .0999) 

M 

5 

7 

6 

IQ 

11 

IS 

13 

1010007335 PACZ0ID3L 11/26/07 1D1DQD7335 J 
04/01/201 1 8.44A M FAX 1^000 {/ij\j ^ I 

r 

ACCOUNT I D 

TAX YEAR END 

r-101 PAGE 4 OF 6 

1D100D7M35 

M7n7aQ 

12312007 NAME n a R HELICOPTERS LLC 

PA CORPORATE TAX REPORT 2007 

n 

SECTION D: LOANS TAX 

1 Did this corporation tiave a fiscal officer resident in PA and paying interest on [ndebtedness of the corporation? 

2 Did this corpofation have indebtedness outstanding to individual residents and/or partnerships resident in Ponnsytvania? 

3 Did this corporation have indebtedness outstanding held by a trustee, agent oi guardian for a resident individual taxable 

in its OA'fi right or by an executor or administrator of an estate wharoin ms decedent was a rasidont of Ponnsyivania? 

XX N 

XX Y 

XX N 

List outstanding indebtedness. Attach separate schedule if additional space required. 

Interest Amount Interest Rale Taxable Value 

SCHEDULE A-1: 

Three Factor 

Properly - PA 

Property - 7oXa\ 

Payroll - PA 

Payroll - Total 

"•"ales - PA 

.ales - Total 

--riEDULEC-1: 

Three Factor 

Properly - PA 

Propeily - Total 

Payroll - PA 

Payroll - Total 

Sales - PA 

Sales - Total. 

0 D 

.0 D 

D D 

Q 

0 

0 

Apportionment Schedule For Capital Stock/Foreign Fra 

lA 0 

I B 0 

2A 0 

2B 0 

3A D 

38 0 

Apportionment Scligdula For Corporata 

lA D 

IB D 

2A D 

2B 0 

3A Q 

3B 0 

IC 

2C 

3C 

Nat Income Ta» 

IC 

2C' 

3C . 

TAXINDEBT XX 

LOANS TAX X X 

0 

0 

D 

Single Factor 

Numerator 

Denom'insior 

Apportionment 

Proportion 

HA 

4B 

5 

Q 

0 

1.000000 

0 

D 

0 

Single Factor 

Numarator 

Denominator 

Apportionment 

Proportion 

MA 

Mb 

5 

1010007435 PACZOIOIL 11/25/07 1010007435 J 
04/01/201 1 8.44AM FAX g]0008/002 7 

r

1010007535 I 

I 

ACCOUNT I D 4?l'=i70 D 

TAX YEAR END 1231200 7 NAME HS R HELICOPTER S LL C 

.CT-101 PAG E 5 O F 6 PA CORPORAT E TA X REPOR T 2007 

SECTION E: CORPORAT E STATU S CHANGE S 

V V Ki °^ * ° ' Existence/ ^ y 

Out ol Exi^tanco A A N Withdrawal Date XX 

(Final Report) "Date of Distribution of ^ X OR No Assets XX 

PA Assets to distribute 

PA Corporations: Report dale business activity ceased and data assets were distributed, 

Foreign (Non-PA) Corporations: Roport date business activity m PA ceased and date PA assets were distributed. 

'Schedule of Disposition of Assets MUST be completed and filed with tha PA Corporate Tax Report. 

Has tho corporation sold or translorred in bulk 51% or more ol any ot the following classes ol assets: XX M 

any slock oi goods, wares, merchandise of any kind, fixtures, machinery, eauipment, buildings or real estate. If so, 

please provirio the name and address of the purchaser. (Attach separate scriedule if additional space required.) 

Purchaser Name 

Address Lino 1 

Address Line 2 

City 

State 

ZIP 

XX 

XX 

XX 

XX 

XX 

XX 

SECTION F; GENERA L INFORMATIO N QUESTIONNAIR E 

Brief Description ol corporate activity in PA AI R TRANSPORTATIO N 

•"Srief Description ol corporate activity NONE 

.utside of PA 

••it other statos in which taxpayer NONE 

; activrty 

Slate of Incorporation XX PA Incorporation Date XX 0413200 1 

1 Does any corporation, individual, or other business entity hold all or a majorily of the stock of this corporation? 

2 Does this corporation own all or a majority of stock in other corporations? If yes, complete Schedule X. 

3 Is this taxpayer a parlngrship that elects to file federal taxes as a corporation? 

4 Has federal government changed taxable income as originally reported for any prior period for which reports of 

change have not been filed in PA? 

If yes. Firsl Period End Dale X X Last Period End Dale X X 

Accounting Method—Federal Tax Return 

Accrual 

X Cash 

Other 

Accounting Method—Financial Statements 

Accrual 

X Cash 

Other 

XX 

XX 

XX 

XX 

N 

N 

N 

N 

101000753 5 PACZ0I05L uf2^7 101DOD753S J 
04/01/20 1 1 8. 44AM FAX 1210009/0027 

_ 

ACCOUNT ID 

TAX YEAR END 

::T-IOI PAGE e OF 6 

lQlD007t.3S 

471=1700 

12312007 NAME n a R HELICOPTERS LLC 

PA CORPORATE TAX REPORT 2007 

n 

SCHEDULE O F REA L PROPERTY IN PA (Attach separate schedule if additional space required.) 

Own/Rent Street Address City County KOZ/KOEZ 

RENT LEHIGH VALLEY INTERNATIONA ALLENTOUIN LEHIGH N 

CORPORATE OFFICERS SSN Last Name First Name Ml 

President/Managing Partner 

Vice President 

Secretary 

Treasurer/TaK Manager 

TAX PREPARER'S 

NAME AND ADDRESS 

Mail to practitioner 

Federal BIN 

Firm Name 

Address Line 1 

Address Line 2 

City 

. Slate 

•ZIP 

XX 

XX 

XX 

XX 

XX 

XX 

XX 

XX 

XX 

XX 

XX 

XX 

Y 

233041347 

6EIGER a ASSOCIATES 

115D GLENLIVET DRIVE-. 

ALLENTOUN 

PA 

laio L 

T i K Prapprvr** SlgnaturWDKt* 

NAHE THOHAS S- GEIGER-, MT-. CPA 

PHONE LlOSTnOS Q 

E-riAl L 

lDlQDQ7b3S PACZOIOGL M/26/07 10100D7b3S J 
04/qV20.\l„8/'14AM FAX 

00010/0027 

Schedule L 

1, Cash 

b. Less allowance for bad debts 

3. Inventories 

4. U.S. Government Obligations 

5. Tax-exempt securltiea 

7. Mortgege and real estate ioaris 

Boqinnina of Year 

a b 

2.a. Trade notes and accounts receivable 

6^ Otlier current assets (attach schedule) 

8. Other investments (attach schedule) 

9.a. Buildings and other depreciable assets 

b. Less accumulated depreciation 

10.a. Depletable assets _. 

b. Less accumulated deplolion 

11. Land (net of ar\y amortization) 

12.a. Intangible asseta (amorlizable only) 

b. Less accumulated amortization 

13. Other assets (attach schedule) 

14. Total Assets _ 

Liabilities and Capital 

15. Accounts payable 

.7. 

Mortgages, notes, bonds payable in less than 1 year 

Other currant liabiHtlas (attach schedule) 

IB- Mortgages, notes, bonds payable In I yearorrnore 

19. Other liabilities (attach schedule) 

EndofYaar 

c d 

20. Member's Capital Account 

21. Total liabilities and capital 

(305,876) 

Schedule M 

faonciliaVortot,MorT)b©f?.s-CappiiAqqoia 

1. Member's Capital Account-Bag inning. 

2. Capital Contributed during Tax Period . 

3. Net Incomo for Tax Period 

4. Withdrawals of Capital During Tax Period 

5. Member'a Capital Account-Ending (Llaes 1 + 2 + 3-4) , 

Must equal Schedule L, Column D, Line 20 

Schedule N 

(118.718) 

(424,594 ) 

1. 

2. 

Name of Member Reporting Income from LLC 

on PA Personal Income Tax Return 

SSN of Member Reporting Income from LLC 

on PA Personal Income Tax Return 

MICHAEL B. SELIG 

M & R HELICOPTERS, LLC 

23-3078396 

12/31/0 7 
04/01/2011 e:44AM FAX 

i^UU I i/uu^ f 

M & R HELICOPTHRS, LLC: 

MICiiAELB. SELIG 

SCH13DULH L- ADDITIONAL. SCHHDULE 

Beginning End 

of Year ofYeiiV 

Other Cun'ent Assets; 

Prepiiicl Costs S i.168 $ 1,168 

Line 13 

Other Assets: 

Security Deposits 5 130 $ 130 

Line 19 

Other Liabilities: 

Member Loan $ 686,793 S 700,337 
04/01/20 118:44AM FAX 1^00 1 ^/ uu.; r 

SCHEDULE C 

(Form lOlQ) 

Departrnont of Ihs Treasuiy 

.Inleinal navanlja Sarm'co (77 ) 

Profit or Loss From Business 

(Solo Proprietorship) 

*• Partnorships, Joint Ventures, etc, mustfilo Form 1065 or 1065-B. 

•"Attach to Form 1040,1040NR, or 1041, *-Se© Instructions for Schedule C (Form 1C40). 

•tut or proptJalor 

..CHAEL B SELIG 

A Principal busineas or praleuuti. Including pi(iiluct Qr.Eorvics (bea InslcuctlUMij 

HELICOPTER TRANSPORTATION 

C BusliiA.'U fiAcdc. If no separata business name, leave blank.. 

M&R HELICOPTERS, LLC 

OMH No. 1545-007't 

2007 

Attachnwni -,-. 

Sailiiunco No, U ? 

Social (ccurlty number <5SN} 

Q £nl«r codD (ram jnctructlon* 

*- 481000 

D Employer ID numbsr (EIN), If an / 

E mi5ln..=iiaad«c»{inck«ll/>osuilcofioornno.)'-2045 WESTGATE DRIV E SUITE 101 

Cly.tovn ox post otiice, Stat., ^.dapcoae pg^HLEHEH , P A fsof?" " - ._ 

F Accounlino melhod: (T) (X| Cash (2) [ J Accrual (3) [Jotha r (spocify) •- 7"_ 

G Did you 'materially participatfl' in tho operation of this business during 2007? 11 'No,' see instructions for limit on iossas.. [X] Yes No 

H If you started or acquired thiis business during 2007, ctieck tiera ' 

Rart'JIftT-'.';^' Income 

1 Gross receipts or sales. Caution. If tJiis income was reported to you on Form W-2 and the 

'Statutory employee' box on thai form was checked, sea the instructions and check here.. 

2 Rolurns and allowances 

3 Subtract line 2 from lino 1 — 

4 Cost of goods sold (from line 42 on page 2) 

•D 

5 Gros s profit. Subtract line 4 from line 3 

6 Other income, including federal and stato QOSoHne or (uel lax credit or refund 

(sea instructions) 

7 Gross Income. Add linos 5 and 6 

1,440 

1,440 

1,440 

1,440 

^.art^ll'?^?^ Expenses . Enter expenses for business_use of your home only on line 30. 

8 Advertising. 

10 

13 

14 

15 

16 

xp< 

(see instructions) 

Commissions and foos. 

Contract labor 

(see instructions) 

Doplotion 

Depreciation and section 

179 expense deduction 

(not included in Part 111) 

(sGo inalructions) 

Employee benefit programs 

(olher than on line 19; 

Insurance (other than hoaltti).. 

Interest: 

a Mortgage (paid to banks, etc) 

b Otharr: ~ 

17 Legal & professional sorvicas 

10 

11 

12 

13 

14 

15 

168 

1Gb 

17 

764 

18,25 4 

7,22 8 

18 Office expensa 

19 Pension and profit-sharing plans 

20 Rent or loaso (see instruclions): 

a Vehicles, machinery, and equipment. 

b Olher business properly 

21 Repairs and maintenance 

22 Supplies (not included in Part III)... . 

23 . Taxes and licenses 

24 Travel, meals, and entertainment: 

a Travel 

b Deductible meals and entertainment 

(see instructions) 

25 Utilities. 

26 Wages (less employmenl credits)... 

27 Other expenses (from line 48 on 

paooS)' :. : 

la 

13 

m 

20 a 

20 b 

21 

22 

23 

24a 

24 b 

21 

26 

27 

ri^'/i-^t 

3,221 

13,574 

_2,.487 

4-630-

ii^a^i!^!^! ^ 

28 Total expenses before expenses for business use of home. Add lines 8 through 27 in columns, 28 120,158 

29 

30 

31 

32 

Tentative profit (loss). Subtract line 28 from line 7 

Expenses for business use of your home. Attach Form 8829 

Not profit or (loss). Subtract line 30 from line 29. 

• If a profit, enler on both Form 1040, line 12, and Schedule SE, line 2 or on Form ~ 

1040NR, line 13 (statutory employees, see instructions). Estates and trusts, enter on 

Form 1041, linQ 3. 

• If a loss, you must go to line 32. 

If you have a loss, check the box that describes your investment in this activity (see instructions). 

• If you chocked 32a, ontor Iho loss on both Form 1040, lino 1Z, and Schodulo SE, lino 2, or on Form 

104(fNR, lino 13 (statutory employees, see instructions). Estates and trusts, enter on Form 1041, line 3. 

• If you checked 32b, you mus t attach Form 6193j.YQ.ur loss may b9 limited. ; 

29 -118,718 

30 

31 -118,718. 

I—, Atl rnvQslment is 

32 a [Xj at risk. 

,__, Some investment 

32 b I lis not at risk. 

For Paporworlc Reduction Act Notice, see Form 1040 Instructions. Schodulo C (Form 1040) 2O07 

FDiZ01!2L 05/15/D7 
04/01/201 1 8:45AM FAX 2)0013/002 7 

S.chndulBC (Form 1040)2007 MICHAEL B SELIG 

!Bi^'lr!tJH|-4^'\ Cos t o f Good s Sol d (see instructions) 

p^qg2 

33 Meth6d(s) used to value closing inventorv: a |_JCost b {_J Lower of cost or market c Q Olher (attach explanation) 

34 Was there any change in dotarmininjj quantilias, costs, or valuations between opening and closing Inventory? 

If 'Yes,' attach explanation 

35 Inventory at beginning of year. If different from last year's closing inventory, 

attach explanation..: 

36 Purchases less cost of items withdrawn for personal use... 

37 Cost of labor. Do not includo any airiounls paidto youiselt. 

38 Materials and 5upplios 

39 Other costs 

40 Add lines 35 through 39 

41 Inventory at ond of year 

42 Cost of goods sold. Sublract lino 41 from line 40. Enter ttie result here and on page 1, line 4. 

36 

36 

37 

38 

39 

40 

41 

42 

Q Y " DNO 

1,168. 

1,168. 

1,168. 

|iPcitf(IV:^':l Informatio n o n You r Vehicle. Complete this part only if you aro claiming car or truck axpansos on lino 9 and are not 

required to file Form 4562 for this business. Sae the instruclions for lino 13 lo find out it you must file Form 4552. 

43 Whon did you place your vehicle in service for business purposes? (month, day, year) -

44 Ot the tola! number of miles you drove your vehicle during 2007. enter the numt)er of miles you used your vehicle for; 

a Businriss b Commuting (see instruclions) cOlhor 

45 Do you (or your spouse) have another vohicle available for personal use?. 

46 Was your vehicle availablo fof personal use during off-duty hours? 

47a Do you have evidence to support your deduction?. 

b If 'Yes,' is the evidence written? 

DYOS ONO 

• Yes- GNO 

• YQS' nNo 

•ftyr^i^ Othe r Expenses , List below business expenses not included on Unas B-26 or line 30. 

_BANK_ CHARGES_ 

DRUG PROGRAM 

i)UES7AND_~SUB_SCRiPTiq_NS: 

FLIGHT INSTRUCTION 

JUEL_ 

OUTSIDE SERVICES 

_POST_AGE__ 

TELEPHONE 

15 

274 

94 

1,311 

1,884 

90 

96 

866 

48 Total other expanses. Enter here and on page 1, line 27 •.•••.. I 48 4,630 

Schedule C (Form 1040) 20D7 

FDJ2011ZL 05n5/07 
•(Hll'VCCRTiPiEp PUDLid ACCOUNTANTS ; : ''/ . ;' 

MCJ H '•••' ;.-.•.•-V'•• • •'-'I.' ' ;..•-'•••-•'••^'-/•.".',•' 

• • • i_ J ^ ' . . ; ••;:••••. '.y-.-. - .•••.•.••. ijl-. . "•' . :—•—r . r-f . ' • ' :—-- ^ ^ 

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. A n office r must.signSah'd.dat c tiie rfi.tunivwhcrcmdipate d by;''X;''/as'foIlowsv;:,.;..:_.v. :•:;•.'•;.>:•: ••::\:\\-^:: :'•.•,'•' ^-:']'.:r':,"':•• ^ 

'..:• ••' '"' \Qistributi6n:o f assets.-;;;/;.!^:'.^;;:.;... •..• ..j'^i-^' .:..•. ^•^.'k•.•:•'.•'!.'•—•'.;--'-^^' •••'•'''•••••->•;;'"• vj\:^ ;';^:V.---1 .. :0:-w:^-;-' 

.•: • ' - I''6rm'.F£V-38;mu'sVbe^^ ^ 

• /•£j^Make.checici3^i^bIfe; ^ 

ij"^^^--^ -

^•:r-ir;-.- \ -

1' I '• • . 

•r- i . . ". 

• X • Nontax"diie . •.^• 

X.Mai VlaU'th l o tax Tctum on or before;:.'; V:-.0^^ • •.'••i;:.';:';,'. •;•!•::•'••••'•• ••7;^;-;:i^- ' l.v-'-^:^' ; '••y:: 

[••••• :•>; • ;./;•••••'^-'i/--•'••••• ? jv.\-;.^;-^.^ ^ 

.1. - '^'•y''-:-.\-,'/'.-^-::^^\ ^•••^•:-::!^';;V^-'-D^PQifeii^^280427h'i-v;;-'v:^ ::V'' •^i'.••r:-.v&;•y:.-•^•••.:' 

/;**i'*+***W_if*.*i''+^"^+***.*****'*^^ 

••••''••• ••••':^ ' '":•: • -.^ ^ •••>• / •••; - u .•.'•' : •:':''i'.'^:^.\y^:'':-\ \ •/\':^;:.-k''S^^-j-.'--^ - ^:^r> ' ::-.-^^ / !-.^V;';:\i;i':::-; v 

eck:piiyabie.to.?ADEPARTS •'... :'i' > ^Hi^/-

•. •''••'.' i ;••. 

' Make check 

; 1 " , • ' 

^•'•- : Du e Dat e 

^,;?^.'l;^:.•;:':•:•\;;VAn^ount';;^^;^^';o!^^ .-"^i-'.-v-_^;.: 

::'V:i-.GAE^STO<:K/:GNlv ly^i •.•T.:..vTotal 

. , • . : yr, — ^7^ . ••; •: .-r : :—TT .••'-! ''' ~ '•—\7~. "T ' 

• •<• : .(s^.^--:^;•;•'•': • .^'/.-•••';!.••.::?.';^"^'ii^-.'.-l'.-^-^v'^'^'!^^ ^ •• ;•• ''"l'.••'• • 

• ij- - . : ••.•i' ' :••.•;':• ' .-I-.-r - .- . • .'. . T-;.'-.;. - :'' • .r.•.,-.•.• . ..• •?•..• • ..••.•;• • ..:• • - :.' i ••,•-. 

. , • - • ——..—^ ^ - • - : • i.i: - .•..•.__* ^ . . I - ^ 

• , :^'.;!'-',- ; : •." ' :• : 

• •"•.•.''£•••. • • 

.••• -H- , 

•$::.S .^/::7-=::i/ •^-^ :^'V$-:. ; 

• ••REV;- 85 7 must'ljeisignp d bci^i^cfiling/•':;•:."' '•}]^'---'' ••'"; •'•ji.' •_'•'• -.•••.'•'•-'••';.•;:-^-^-''/^V^C'^ ^ 

OtOO/LOOO© 

XV J Hd'u : S 1102/62/ ^ 
DETACH HERE BEFORE MAILING 

REV-853R CT to ca-o;) IM 

PA DEP*«TMEfJT OF REVENUE 

BUREAU OF CORPORATION TAXES 

PA CORPORATION TAXES 

REV-853 ANNUAL EXTENSION REQUEST 

ACCOUNT ID 

4719-700 

PEfllOD ENDiriQ ! RPT. CODE 

12/31/0'8 1 

Ewnrr ID CEIN) 

23-3078396 

DUE DATE 

4/15/09 

CORPORATION NAME 

M & R 

1 

HELICOPTERS LLC 

STATE OF irJCOBPORATION 

PENNSYLVANIA 1 

NEW CORPORATIONS 1 CENTER NEW ADDRESS) 

STREET 1 

1 

crTY 1 STATE ZIP 

1 

1 CS/FFTAX PAYMENT,.. 

2 LOAHSTAXPAYMEHI.. 

3 CNI TAX PAYMENT. 

4 TOTAL PAYMENT <t 

(Addlinasl,2and3.)-.4' 

PACZ0501L 11/27/07 

•ATE 

4/15/09 

TELEPHONE ! 

610-391-9050 

si(;r«,Tune TITLE 

CPA 

OEPT USE ONLY 

00 

00 

00 

00 

OL00/2O0O I yV-) HA7.t -C M r\7./C7/or> 
iDiaDoaitb 

DEPARTMENT USE ONLY 

RCT-1Q1 PAGE! OF 6 

Y 1120 N 11203 N 1120C 

PA CORPORATE TAX REPORT 200 8 

120F N |n20H N IDGS N indQ N Other 

• J ' 

STEP A STEPB 

Tax Year Beg. 

Tax Year. End. 

STEP C 

XX 

XX 

Corp Tax Account ID 

Federal E1T4 

Buslnass Activity Code 

Corporation Name 

Address Line 1 

Address Line 2 

City 

State 

ZIP 

STEP D 

CS/F F 

LOANS 

C N I 

TOTAL 

OlPlBQQf l Regulated Inv Co, 

1531S0Qf l 52-53 Week Filer 

A'ddress Change 

Change Fed Group 

XX 

XX 

XX 

XX 

XX 

XX 

XX 

XX 

XX 

A: Tax Liability 

Irom Tax Report 

D 

Q 

D 

a 

47n7a D 

qaiQDD 

DR HELICOPTERS LLC 

SDMS UESTGATE DRIVE 

BETHLEHE 

PA 

B: Estimated Pay 

& Credits on Oepd 

1 

nfinl£ 

sit 

D 

D 

n 

0 

XX 

XX 

XX 

XX 

S U I 

C: Restriclod 

Credits 

D 

Q 

D 

D. 

N 

N 

N 

N 

First Report XX N 

KOZ/EIP Credit XX N 

File Period Change XX N 

Calculation: 

A minus B minus C 

D 

0 

D 

D 

STEP E: Payment 

Make ctwck far [till amotrnl 

payable lo 'PA Dept gl Rcvcnua 

D 

D 

D 

Q 

Made Payment Via EFT 

STEP F: Refundn"ransfer Method 

Select one of tho following options: 

A N Tpbl UarrelBr ot cradil 

B N • Tola! refund o' cretJil 

STEP G: Corporate Officer 

(Sign affirmation below) 

NAHE 

PHONE 

E-tlAIL 

MICHAEL B SELIG 

FORM 

BARCODE 

1035 

PAC2Q1DH. 'ilJ2'jJ03 

?reby affirrn under penalties prescribsd by law ttiat this report (including any accompanying schedules and stjtetnents) has bean eiamingd by mo 

i to the best ot my KnowlfldgB and.bnliBl da true, correct and complete report. If prepared by t pBrson other thjn the taxpayer, fils declaration Is 

•jod on all Informaiion of which he has any knowledgo. ; 

Corparalo Of/Icer Signature/Date 

CJlOO/ROfffll?) v y j wj7+, n f \ f\7 / c /o ^ 
ACCOUNT ID 

TAX YEAR END 

RCT-101 PAGE 2 OF 6 

iDinaaastti 

M7n7DD i 

i53iaDna NAME DR HELICOPTERS 

PA CORPORATE TAX REPORT 2008 

LLC 

SECTION A: CS/FF 

OLDEST PERIOD 

FIRST 

YEAR 

YEAR 

YEAR 

YEAR 

YEAR 

YEAR 

YEAR 

1 

e 

3 

M 

s 

b 

7 

CUR YR 

TAX PERIOD 

BEGINNING 

D1D12D0M 

D1D12DDS 

QlQlPQDb 

D1D1B0D7 

GlDlBaOfl 

TAX PERIOD 

ENDING 

1531sdDM 

1B31SDD5 

1231B0'nt, 

i231HD07 

1 

1 

123120 Ofi 

BOOK INCOtVIE 

-13T1 2 

'lEb73 1 

•1E125M 

•116713 

-1DSL32 

XX 

XX 

XX 

N 

N 

N 

investment in LLC 

Holding Company 

Family Farm 

WHOLE DOLLARS ONLY 

2 TOTAL BOOK INCOME (sum of incomo lor all t£X periods up to, but not over 5 years total) 2 

3 DIVISOR (in years and in part years rounded to hree decimal places) See Instructions 3 

4 Divide Lino 2 by Line 3 M 

5 AVERAGE BOOK INCOME - Enter Line 4 or it tJine 4 is less than zero enter 'O' S 

I 

Mflt,2M7 

S.DOD 

-•^7SM1 

0 

Divide Line S by 0.095 

Shareholders' equity at the END of the current period 

Shareholders' equity at tho BEGINNINQ of Ihe current poriod 

If Lino 7 is more than twice as great or loss thari half as much as Line 8, 

add Lines 7 and 8 and divide by 2. Otherwise enter Line 7. 

i 

10 NET WORTH - Enter Line 9 or if Line 9 is less than zero enter "0' 

n Multiply Line 10 by 0.75 | 

12 Add Lines G and 11 ! 

13 Divide Line 12 by 2 [ • 

14 $150,000 valuation deduction 

15 CAPITAL STOCK VALUE - Line 13 less Line 14.|bLrt not less than *0'. 

if 100% Taxable, antar Line 15 on Line 17. 

ID 

11 

12 

13 

m 

IS 

Q 

•53DE2b 

•M24STM 

D 

a 

Q 

• 

a 

-15D000 

0 

16 Proportion of taxable assets or apportionment proportion (From Schedule A-1, Line 5) 

17 TAXABLE VALUE ^ Multiply Line 15 by Line 16.' If less than zero, enter "0' 

18 CAPITAL STOCK/FOREIGN FRANCHISE TAX-iMulbply Une 17 by Q.0Q289. 

l b 

17 

la 

1-00000 0 

0 

0 

Total Beginning of 

Taxable Year Assets 27333 1 

Total End of Taxable 

Year Assets IflflflSl 

loioonfisbb PAC2010ZL n/21/08 loiDDoaaLb 

v u j wj7h-r. \\r,y/C7/or , 
iDiaDoa3bb 

ACCOUNT ID 

TAX YEAR END 

RCT-101 PAGE 3 OF 6 

M7n7DD : 

12312006 NAME DR HELICOPTERS 

PA CORPORATE TAX REPORT 2008 

LLC 

SECTION B: Bonus Depreciation 

1 Currant year fed depreciation of 168k prop 1 

2 Current year adj for disposition of 16Sk prop 2 

3 Olher adjustments 3 

(Musi attach Schodulfl 0-3 if claiming 

bonus depreciation) 

0 

0 

0 

Business Trust 

Sollcllatlon Only 

Single Member LLC 

Mulli-MemberULC 

PA-S 

Taxable Btiilt-ln Cains 

XX 

XX 

XX 

XX 

XX 

XX 

N 

N 

Y 

N 

N 

N 

SECTION C: CORPORATE NET INCOME TAX; 

1 Income or loss from federal return on • separata company basis 

2 DEDUCTIONS: j 

A- 'Corporate dividends rccoivpd (From Schedule C-2, Line 6) 

B Intorosl on U.S. securities (GROSS INT loss EXPENSES) 

C Current yr'addltlonal PA doprec plus adjust for sale (attached Schedule C-3) 

D other (attached schedule). See Instructions, i 

TOTAL DEDUCTIONS - Sum of (A) through (D) | 

5A 

2B 

2C 

2D 

2 

3 ADDITIONS: i 

A Taxes Imposed on or measured by net Income (attached schedule) 

B Tax Preference Items (attached copy of Federal Form 4626) 

C EmploymanI Incantlve paymant credit adjustment (attached Schedule W) 

D Current year bonus depreciation (attached Schedule C-3) 

E Other (attached schedule). See instructions. I 

. TOTAL ADDITIONS - Sum ol (A) through (E) ' ; 

3A 

3B 

3C 

3D 

3E 

3 

Incomo or loss with Pennsylvania adjustments (Line 1 • Line 2 + Line 3) 

Total nonbusiness Income (or loss) j 

Income (or loss) to be apportioned (Line 4 - Line 5) ; 

Apportlonmant proportion (from Schedule C-1 Line 5) 

Income (or loss) apportioned to PA (Line 6 X Line 7): 

Nonbusiness Income (or loss) allocated to PA 

4 

5 

6 

7 

8 

9 

10 Taxable Income (or loss) after apportionment (LIna 8 + Line 9) 

11 Total Not Operating Loss deduction (from RCT-ia3)!cannot sxcoed $3,000,000 

or1Z-1/2%of LInelO 

12 PA taxable income (or loss) (Lino 10-Line 11) 

13 Corporate Net Income Tax (Line 12 x .0999) 

H 

5 

b 

7 

a 

10 

1 1 

12 

1 3 

lG10DQfi3bfc PACZ0103L ii/zwoa lQlDDD63bb 

. rt / r r-1 rt rt rsi V W J WJ7 b C f\7 tC 7 yTi T 
ACCOUNT I D 

TAX YEAR END 

RCT-10 1 PAG E 4 O F 6 

i lOlDOOfiHb b 

I I 

M7n7Da . 

1231EDD a NAHE DR HELICOPTER S 

PA CORPORAT E TA X REPOR T ZOOS 

L L C 

SECTIO N D: UOAN S TA X 

1 Did this corporation have a fiscal officer resident In PA and paying interest on indebtedness of the corporation? X X 

2 Did this corporation have indebtedness outstanding to; individual residents and/or parlngrships resident in Pennsylvania? X X 

3 Did this corporation havo indeljtedness outstanding held by a trustee, anent or guardian for a resident individual taxable ^ X 

in Its own Fight of by an executor or administrator of an estata wherein the decadent was a resident of Pennsylvania? 

List outstandfno Indobtodness. Aitach separate scheduio if additional space is required. 

Interest Amount 

0 

0 

0 

Interest Rate 

D 

D 

0 

Taxable Value 

I TAX INDEBT 

LOANS TAX 

XX 

XX 

SCHEDULE A 1: Apportionment Schedule For Capital Stock/Foreign Franchise Tax (Indudn Form RCT-1Q2. RCT-105, or RCT.105) 

Three Factor 

Property — PA 

Properly — Total 

Payroll " PA 

^yroll — Total 

les ~ PA 

oales - Total 

lA 

I B 

2A 

EB 

3A 

3B 

IC 

2C 

3C 

0 

Q 

0 

Single Factor 

Numeralor 

Denominator 

Apportionment 

Propaition 

MA 

MB 

5 

D 

0 

l-DDODOO 

SCHEDULE C-1; Apportionment Schedule For Corporate Net Income Tax (Include Form RCT.106) 

Throo Factor 

Property - PA 

Properly - Tolal 

Payroll - PA 

Payroll - Total 

Sales - PA 

Sales — Tolal 

lA 

I B 

2A 

2B 

3A 

3B 

IC 

2C 

0 

a 

0 

a ! 

0 I 3C 

0 ! 

Single Fqctor 

0 Numerator 

Denominator 

D 

0 Apportionment 

Proportion 

MA 

MB 

lOlDODfiMbb PACZOIiML n/21/08 

lOlODDBML b 

n t rti-i /ortrti-ilvj i .-r / rt -? / I 
iDiDonasbL 

ACCOUNT I D 

TAX YEAR END 

RCT-101 PAG E 5 O F 6 

M7n7D D 

1231200 6 NAME DR HELICOPTER S 

PA CORPORAT E TAX REPOR T 2003 

LLC 

SECTION E: CORPORATE STATUS CHANGES 

Out of Existence 

(Final Report) 

XX Out of Existence/ ^ 

Withdrawal Date A A 

"Dato of Distribution of XX 

PA Assets 

OR No Assets 

to Distribute 

XX 

PA Corporations: Report dale business act'rvity ceased and date assets were distributed. 

Foreign (Non-PA) Corporations: Report data business activity in PA ceased and date PA assets v/ore dislribulod. 

'Schedule of Disposition of Assets MUST bo completed and filod with Iha PA Corporate Tax Reparl," 

Has the corporation sold Of transferred in bulk 51 % or more Of &r,y of the fottowing classes Of assets" 

any stock or poods, wares, merchandise of any kind, fixtures, machinery, eouipment, buildings or real estate. If so, 

plaaso provide the name and address of tho purchaser,' (Attach separate schedule if additional space is required.) 

XX 

Purchasor Name 

Address Line J 

Address Line 2 

City 

State 

ZIP 

XX 

XX 

XX 

XX 

XX 

XX 

SECTION F: GENERA L INFORMATIO N QUESTIONNAIR E 

Brief description of corporate activily m PA AI R T 

Irrot descfiptton o) corporate activity NONE 

jUtside of F'A 

List other stales in which taxpayer NON E 

has activity 

RANSPORTATION 

Stato'of Incorporation XX PA Incorporation Date XX am32DQi 

1 Does any corporation, individual, or other business entity hold all or a majority of (he stock of this corporation? 

2 Does this corporation own all or a majority o( sioc5< in other corporations? It yes, complete Schedule X, 

3 Is this taxpayer a partnership that elQCts to file federal taxes as a corporation? 

4 Has federal Qovernment changed taxable income astoriginalty reporled (or any prior period (or which reports of 

chango have not been filed in PA? 

If yes; First F'eriod End Data XX 

XX 

XX 

XX 

XX 

N 

N 

N 

N 

Last Period End Dale XX 

Accounting Method-Federal Tax Return 

N Accrual 

Y Cash 

N Other 

Accounting MQlhod-Flnancial Statements 

N Accrual 

Y Cash 

N Other 

lOlOODflSbb PACZfllOSL n/21/03 iDinooasbb 

r-ll i^ft/li^i-ii^r^. 

V U J (dJ7h' n iirt^/n^/cr- i 
- J 

ACCOUNT ID 

TAX YEAR EfJD 

RCT-101 PAGE 6 OF 6 

lOlOOOfibbb 

M7n700 

12312003 NAME DR HELICOPTERS LLC 

PA CORPORATE TAX REPORT 2008 

SCHEDULE OF REAL PROPERTY IN PA (Attach separate schedule if additional space required.) 

Own/Rent str^eet Address City 

RENT LEHIGH VALLEY INTERNATIONA ALLENTOWN 

County 

LEHIGH 

KOZ/KOEZ 

N 

CORPORATE OFFICERS SSN Lasl Name First Name Ml 

President/Managing Partner 

Vice President 

Secretary 

Tfcasurer/Tax Manager 

TAX PREPARER'S 

NAME AND ADDRESS 

Mail to Practitioner 

Fodaral EIN 

Firm Name 

Address Line 1 

Address Line 2 

. Cily 

State 

ZIP 

Tan pi»phT6f* Slgnihir«iD«t« 

NAME THOflAS 

XX 

XX 

XX 

XX 

XX 

XX 

XX 

XX 

XX 

XX 

XX 

XX 

j 

1 

Y • ; 

2330413LJ7 

6EIGER a ASSOCIATES 

llS a GLENLIVET DRIV 

I 

1 

ALLENTOUN 

PA 

laiDb 

i 

i 

S. GEICER-, fIT-.' 

PHONE bia3TnDS 0 

E-MAIL 

5/8/09 

CPA 

loiooaabtb PAC20I06I. H/2I/M lOlDOOflbbb 

n 10 n / R ft n n l?i V W J WJCb C 11(17/07/0 ^ 
REV-adO (2-05; 

Schedule L 

:'j.UV^Lr:-;;v^:?^'^ 

Beqfnninq ofYear 

a b 

End ofYear 

1.. Cash 

2.a. Trade notes and accounts receivable 

b. Less silowancs for bad debts 

3. Inventories 

4. U.S. Government Oblicjatlons 

5. Tax-exempt securities 

6. Other currenl assets (attach schedufe) 

7. Mortgage and reai estate loar^s 

8. Other investments (attach schedule) 

g.fl. Buildings end othar depreciable assets 

b. Less accumulated depreciation 

1Q.a. Depletable assels 

b. Lass accumulated depletion 

11. Land {net of any amortization) 

12.a. Intanpible assets (amortlzablaonly) 

b. Less accumulated amortization 

13. Other assets (attach schadula) 

14. Total Assets 

Liabilities and Capital 

15. Accounts payable 

16; Mortgages, notes, bonds payable in iess than 1 year 

17. Other current liabilities (aUacli schedule) 

18. Mortgaggs, notes, bonds prayable in I year or more 

19. Othar liabilities (attach schedule) i 

20. Member's Capital Account 

21. TotaMiabllittea and capital 

719.077 

530,226) 

188.851 

Schedula M 

1. Member's Capital Account-Beginning 

2. Capital Contributed during Tax Period 

3. Nat income for Tax Period '. 

4. Withdrawals of Capital During Tax Peribd 

5. Member's Capital Account-Ending (Line's 1 + 2 + 3-4) , 

Must equal Schedule L. Column D. Line 20 

424,59 4 

(105,632 ) 

(530,226) 

Schedule N 

1. Name of Member Reporiing Income frorVi LLC 

on PA Personal Income Tax Return ... : 

SSN of Member Reporting Income from-LLC 

on PA Personal Income Tax Retum ....'.,. . 

MICHAEL B. SELIG 

b R HELICOPTERS, LLC 

: 23-3078396 

j 12/31/0 8 

, .. ni nn/.cnnnl5i 
DR HELICOPTERS, LLC 

MICHAELS. SELIG . 

23-3078396 

SCHEDULE L- ADDITIONAL SCHEDLJLE 

Beginning End 

of Year ofYear 

Line 6 

Other Current Assets: 

Prepaid Costs $ 1,168 $ 160 

Line 13 

Other Assets: 

Security Deposits $ L^O $ 130 

Line 19 

Olhcr Liabilities; 

Member Loan 5 700,337 $ 719,077 

ninn/ninnf S XV-t \UP.b Q liC\7./P7./P.O 
04/01/201 1 9 :45A M FAX 10014/002 7 

•-C\ 

r.-j 

DETACH HERE BEFORE MAILING 

t^ • y Pennsylvania REV^SSR OT (7/O9) p^ CORPORATION TAXE S 

:u"i:rcoRPORAT>aN TAXES REV-853R ANNUAL EXTENSION REQUEST 

ACCOUfJT ID 

4719-700 

TAX YEAR EKD DATE 

12/31/09 

EIN 

23-3078396 

COflPORATION NAME 

DR HELICOPTERS LLC 

STATE OF INCORPORATION 

PENNSYLVANIA 

STREET 

cirr STATE £1P 

1 CS/fF TAX PAYMENT.... 

2 LOANS TAX PAYMENT... 

3 CNI TAX PAYMENT. 

4 TOTAL PAYMENT 

(Add lines I, 2 and 3.) $ 

DEFT USE ONLY 

00 

00 

00 

00 

Make checks avallablfl (o 'PA DEPT OF REVENUE.' 

PACZDSDIL 12/22/[« REPLACEMENT COUPON 

PLEASE READ THE INSTRUCTIONS BEFORE COMPLETING THIS COUPON. 

DATE 

4/15/10 

TELEPHONE 

61O-391-905O 

SIGNATURE 

/'^V..^„__ J^ Srr:^-.'^.^ 0-^-> 

TITLE 

CPA 
01/01/20 1 1 8 :45AI.1 FAX 1210015/0027 

lOlDDQ'IlD? 

DEPARTMENT USE ONLY 

RCT-101 PAGE 1 OF 6 ortnr t 

PA CORPORATE TAX REPORT 200 9 

A=1120 B==]120S C=1120C D-I120F E = 1120H F=1065 G=1040 H = Other Wf 

STEP A STEP B 

Tax Year Beg. XX QIQIEQD T Regulated Inv Co XX .N 

Tax Year End. XX 12315QD 1 • 52-53 Week Filer XX N 

Address Change XX N 

STEP C Change Pod Group XX N 

Fifst Report 

KOZ/EIP/SDA Credit 

File Period Chanflo 

XX 

XX 

XX 

N 

N 

N 

Corp Tax Account ID 

Federal BIN 

Business Activity Code 

Corporation Nome 

Address Line 1 

Address Line 2 

Cily 

Stale 

ZIP 

STEPD 

CS/FF 

LOANS 

CNI 

TOTAL 

XX 

XX 

XX 

XX 

XX 

XX 

XX 

XX 

XX 

A: Tax Liability 

from Tax Report 

D 

0 

D 

D 

MVn7DD 

E33D7fl3Tb 

M61DD0 

DR HELICOPTERS 

ea4S WESTGATE 

BETHLEHEM 

PA 

16017 

B: Estimated Payments 

£ Credits on Deposit 

D 

0 

D 

0 . 

LLC 

DRIVE SU 

C; Reslrictcd 

Credits 

0 

a 

D 

D 

Calculation: 

Amir^u&B minus C 

0 

D 

D 

0 

STEP E: Payment 

Mak« ctieck (or L'u'j amount 

S

aysblo to 'PA Dapt of 

Bvdiiue' 

Made Payment Via EFT 

STEP F: RefundrTransfer Method 

Select one of the following options: 

A = Total ironsfer of ciedit B ^ Total refund ot credit 

STEP G: Corporate Officer 

(Sign affirmation below) 

NAME 

PHONE 

E-MAIL 

niCHAEL B SELIG 

FORM 

BARCODE 

1D3E 

PACZOIOIL oyuino 

1 affirm under penalties prescnbed by law ttint Uils report (including any accom^jiinyftiotchadLjIei and sl^temfints) has been examined by me and to 

the tiest of my knowledge and belief is a true, correct and complete report. 11 prepared ay a person other than the taxpayer, his declaration is bastd 

I on all intonnation of wtiich he has any knowledgeI Corporals Officer Signature/Date 
04/01/20 1 1 S-45Al.t FAX [^OOlG/0027 

ACCOUNT ID 

TAX YEAR END 

;CT-101 PAGE 2 OF 6 

laiDDOieD ? 

H71'17Da 

ia3isn m NAME DR HELICOPTERS LLC 

PA CORPORATE TAX REPORT 2009 

SECTION A: CS/FF 

OLDEST PERIOD 

FIRST 

YEAR 1 

YEAR 2 

YEAR 3 

YEAR M 

YEAR S 

YEAR b 

YEAR 7 

CUR YR 

TAX PERIOD 

BEGINNING 

aiDlEDOS 

Dioianot 

01D1EDD7 

oiDiaoofl 

D10120D1 

TAX PERIOD 

ENDING 

1231HDG5 

12312QDL 

iBHiann? 

lE31SDDa 

• lEaiEDD'i 

BOOK INCOME 

-iaL731 

-laiEsq 

-iifi7i a 

-lQ5ti32 

-125575 

InvesttYient in LLC 

HoldipQ Company 

Family Farm 

XX N 

XX N 

XX N 

WHOLE DOLLARS ONLY 

2 TOTAL BOOK INCOME (Sum of income for all tax periods up to. but not over 5 years total) 

3 DIVISOR (in years and in part years roundod to Ihreo docimal places;) See Inslructions. 

4 Divide Lino 2 by Line 3. 

5 AVERAGE BOOK INCOIVIE - Enter Line 4, Or if Line 4 is less than zero enter '0' 

-5=14^10 

5.00 0 

-116=162 

D 

/ ' N 6 Divide Line 5 by 0.095. 

7 Shareholders' equity at (he END ot tho current period 

8 5haretiolders' equity at the BEGINNING of tho current period 

9 If Line 7 is more than twice as great or less than half as much as Line 8, 

odd Linas 7 and 8 arid divirif^ by 2. Otherwise enter Line 7. 

0 

(.33303 

•S3DeSb 

0 

10 NET WORTH - Enter Line 9, or if Line 9 is less than zero enter '0*. 

11 Multiply Lino 10 by 0.75. 

12 Add Lines 6 and II . 

13 Divide Line 12 by 2. 

14 $150,000 volualion deduction 

15 CAPITAL STOCK VALUE ~ Line 13 less Lina 14 but not less than "O". 

If 100% taxable, enter Line 15 on Line 17. 

10 

11 

l a 

13 

IH 

IS 

0 

0 

0 

a 

15DD0D 

a 

16 Proportion of taxable assets or apportionment proportion (from Schedule A-1. LIMA 5) I L 

17 TAXABLE VALUE - Multiply Line 15 by Line 16. If less than zero, enter 'O'. 1 7 

18 CAPITAL STOCtOFOREIGN FRANCHtSE TAX - Multiply Lino 17 by O.CK)?89. 1 6 

I'DQaOOQ 

Q 

D 

Total Beginning of 

Taxable Year Assets laaasi 

Total End of Taxable 

Year Assets IIQISE 

loioDD'ian? PAC^01Q2L 02/01/10 lOlQQDTED? 
04/01/20 1 1 8.45AM FAX @]0017/0027 

ACCOUNT ID 

TAX YEAR END 

CT-IO l PAG E 3 O F 6 

lDlDDm3D 7 

471170 0 

ie31EDD T NAME DR HELICOPTER S 

PA CORPORAT E TAX REPOR T 2009 

L L C 

SECTION B: Bonus Dapraclatlon 

1 Currenl year f(;d. deprecialion of 168k prop. 

2 Current year adj. for disposition of 168k prop. 

3 Other adjustments 

(Attach Schedule C-3 if claiming 

bonus depreciation.) 

0 

0 

0 

Business Trust 

Solicitation Only 

Single Member LLC 

MulliMemberLLC 

PA-S Corporation 

Taxable Built-in Gains 

XX 

XX 

XX 

XX 

XX 

XX 

N 

N 

Y 

N 

N 

N 

SECTION C: CORPORAT E NET INCOM E TAX 

1 Incomo or loss Irom federal return on a separate company basis 

DEDUCTIONS; 

A Corporate dividends locGwod (From Schedule C-2, Line 6) 

B Interest on U.S. securities (GROSS INT less EXPENSES) 

C Curr yr. addll. PA deprec. plus adjust, for sale (altached Schodulo C-3) 

D Othor (attached sctiedule) See instructions. 

TOTAL DEDUCTIONS - Sum of (A) through (D) 

EA 

EB 

EC 

ED 

E 

ADDITIONS: 

A Taxes imposed on or measured by net income (attached schedule) 

B Tax preference Items (attached copy of Federal Form 4G26) 

C Employment incentive payment credit adjustment (attached Schedule W) 

D Current year bonus depreciation (attached Schedule C-3) 

E Other (attached schedule) See instructions. 

TOTAL ADDITIONS - Sum of (A) through (E) 

3A 

3B 

3C 

3D 

3E 

3 

4 Incomo or loss with Pennsylvtinia adjuslmonls (Line 1 • Line 2 + Line 3) 

5 Total nonbusiness income or loss 

6 Income or loss to be apportior)ed (Line 4 - Line 5) 

7 Apportionment proportion (from Schedule C-1 Line 5) 

3 Income or loss apportioned to PA (Line 6 x Line 7) 

9 Nonbusiness iricoma or loss allocaled to PA 

10 Taxable income or loss after apportionment (Line 8 + Line 9) 

11 Total Net Operating Loss deduction (from RCT-103) 

12 PA taxohio income or loss (Line 10 • Lino 11) 

13 Corporate Net Income Tax (Line 12 x 0.0999) 

4 

5 

7 

fl 

ID 

11 

IE 

13 

lDlDDm3D7 PACZOI03L 02/Dl/lD 101000^307 
04/01/20 1 1 8- 15AI.1 FAX 

©0018/002 7 

IDIDOQTMD? 

ACCOUNT ID 

TAX YEAR EN0 

.<CT-101 PAGE 4 OF 6 

4711700 

laSlEDOT NAHE DR HELICOPTERS LLC 

PA CORPORATE TAX REPORT 2009 

SECTION D: LOANS TAX 

1 Did this corporation have a fiscal officer resident In PA and paying interest on indetiledness ot tho corporation? 

2 Did Diis corporation have indobtodness outstanding to individual residents and/or partnerships resident m Pennsylvania? 

3 Did this corporation have indebtedness outstanding held by a trustee, aoent or guardian for a resident individual taxable 

in itb own right oi by an executor or administrator of an estate wherein fho riecedBnt w.^s a resident of Pennsylvania? 

XX N 

XX Y 

XX N 

List outstanding indebtedness. Attach separate schedule if additional space is required. 

(r\tQrost Amount 

0 

D 

D 

Interest Rate 

0 

0 

0 

Taxable Valuo 

a 

D 

0 

Tax IndGbt 

Loans Tax 

XX 

XX 

SCHEDULE A-1: Apporlionmoilt Schedule For Capital Stock/Foreign Franchise Tax (Include Form RCT-102. RCT-IOS, or RCT-106) 

Three Factor 

Properly - PA 

Property ~ Total 

Payroll - PA 

• Payroll - Total 

-^^ale s - PA 

oa'ies - Total 

.HEDULEC-1: 

Ttiree Factor 

Pfoporly — PA 

Properly - Tolal 

Payroll - PA 

Payroll - Total . 

Sales - PA 

Sales - Total 

l A 

I B 

EA 

EB 

3A 

3B 

AppOrliui 

lA 

I B 

EA 

EB 

3A 

38 

n 

0 

D 

0 

0 

0 

I C 

EC 

3C 

Q 

0 

D 

Singlo Factor 

NumBratoi 

Denominator 

Apportionment 

•Proportion 

.4 A . 

4B 

5 

a 

0 

l.DOODOD 

Apporliunmont Schedule For Corporate Not Incomo Tax (Include Form RCT-106) 

I C 

EC 

3C 

Single Factor 

Numerator 

Denominator 

ApportioniTient 

Proportion 

4A 

MB 

101000^407 PACZDIOCL 02/31/10 1010001407 
04/01/201 1 8:45AM FAX 00019/002 7 

101DDa'=iSD7 

ACCOUNTID M71S7D 0 

TAXYEAREND 1231500* 1 NAME DR HELICOPTER S LL C 

i?CT-101 PAG E 5 O F 6 PA CORPORAT E TAX REPOR T 2009 

SECTION E; CORPORAT E STATU S CHANGES 

Out of Exislonco/ 

Out of Existence XX N Withdrawal Date XX 

(Final Report) Date of Distribution of XX OR No Assets XX 

PA Assels' to Distribute 

PA Corporations; Reparl dale business aclivily ceased and dato OSSOtS were dislributod. 

Foreign (Non-PA) Corporations; Report date business activity in PA ceased and date PA assets were distributed. 

•Schedule of Disposition of Assets MUST ba completed and filed with the PA Corporate Tax Report. 

Has Uie corporation sold or transferred In bulk 51 % or more ot any of the following classes of assets? XX N 

Any slock of goods, wares, merchandise of any kind, fixtures, machinery, equipment, buildings or real estate. If so, 

please provide the narne.and address of the purchaser, (Attach separate schedule if additional space is required.) 

Purchaser Name 

Address ^Line 1 

Address Line 2 

City 

State 

ZIP 

XX 

XX 

XX 

XX 

XX 

XX 

SECTION F: GENERA L INFORMATIO N QUESTIONNAIR E 

Briel description ol corporate activity in PA AI R TRANSPORTATIO N 

Brief description of corporate activity NONE 

outside PA 

• isl other slates in which taxpayer NONE 

as aclivily 

State ol incorporation XX PA Incorporation Date XX 0413ED0 1 

1 Does any corporation, individual, or other business entity hold all or a majority of the stock of this corporation? 

2 Does this corporation own all or a majority of stock in other coiporalions? If yes, complete Schedule X. 

3 Is this taxpayer a partnership thai elects to file federal taxes as a corporation? 

A Has federal government changed taxable income as originally reported for any prior period for which reports of 

change have not been filed in PA? 

If yes: First Period End Date X X Last Period End Dato X X 

Accounting Method-Federal Tax Return 

C A = Accrual c ^ Cash O = Other 

Other 

Accounting Method-Financial Statements 

C A = Accrual c = Cash O = Other 

Other 

10lDQmS07 PAC20105L D?/oi'io lOlDOmSD? 

XX 

XX 

XX 

XX 

Y 

N 

N 

N 
04/01/20 1 1 8-4GAI.1 F.»X [^0020/002 7 

iQlGDmLO ? 

ACCOUNTID 4711700 

TAXYEAREND lESlEDD I NAME DR HELICOPTERS LLC 

?CT-101 PAGE 6 OF 6 PA CORPORATE TAX REPORT 2009 

SCHEDULE OF REAL PROPERTY IN PA (Attach separate sctiedule if additional space rr^quired.) 

O = Own Street Address City 

R = Rent 

XX R LEHH; H VALLE Y INTERNATIO N ALLENTOUN 

XX 

XX 

XX 

County 

LEHIGH 

KOZ/KOEZ 

CORPORATE OFFICERS SSN Last Namo First Name Ml 

Presidenl/Manaoi'^O Partner 

Vice President 

Secretary 

TreasurerH'ax Mar^agei 

TAX PREPARER'S 

NAME AND ADDIRESS 

Mail to Practitionqr 

Federal EIN 

Firm Name 

Address Lino 1 

Address Line 2 

City 

Stale 

ZIP 

XX 

XX 

XX 

XX 

XX 

XX 

XX 

XX 

XX 

XX 

XX 

XX 

Y 

233041347 

GEIGER ft ASSOCIATES 

1150 GLENLIVET DRIV 

ALLENTOUN 

PA 

laiO L 

T u PrepBrer'3 Slgnatur»/Qatc 

NAM E THOMAS S- GEIGER-. HT-. CPA 

PHONE Liogmos o 

E-MAIL 

IGlOODibD? PACZOlOfiL 02/01/10 101000^^07 
04/01/20 1 1 « : 4tiAM 1-AX 

l^uu ^ l/uu ^ J 

nEV-793 CI'(12-06) IN 

CORPORATION 

SCHEDULE C-2 PA DIVIDEND DEDUCTION SCHEDULE 

CORP TAX 

ACCOUNT ID 

M M D D Y Y 

TAX PERIOD ENDma 

Fedeial Sctiedule C, Line (20), Total deductions. 

Federal Schedule C. Line (15). Foreign Dividend Gross-Up (Section 78). 

Dividends from less-than-20%-owncd foreign corporations listed on Lines (13) and (14) of federal 

Schedule C - x 70^1 

Dividends from 20%-or-mgro owned foreign corporations lislocl on Linos (13) and (]4) o( focleral 

Schedule C - x 80% 

Dividends listed on Lines (13) and (14) ol fedoral Schodulo C from foreign corporations that meat tho '80% 

voling and value lest' ol IRC Section 1504 (a) (2) ond otherwise would qualify for 100% deduction under IRC 

Section 243 (a) (3) if they were a domestic corporation. Do not list any amounts tnciudcd in item 4 

Total PA Dividend Deduction - Add Lines 1, 2. 3,1 and 5 

[Enter above at Section C, Lina (2a)] 

1 

2 

3 

4 

5 

6 

SCHEDULE X 

Taxpayers completing this sctiedule must provide beginning and ending balance 

sheets, reflecting the consolidated net worth of the taxpayer and all subsidiaries. 

CORPORATION DR HELICOPTERS LLC CORP TAX ,-,ir t Tn n 

AccouHTiD 4719-70 0 

IW M D 0 Y Y 

TAX PERIOD ENDING 12310 9 

'}•••:v^/.;-i :->-;vi^J:;-•:-:^^f-'^ 

.•ri ' .;•>;-••.-••,' • ••''^-'••••'^'-' ' :Cofp;TaX'Acc6urit<|D: 

:^^•?^^•'<^-^i-^•;?f".^-i;M7•^.vl•i^-' 

:-f;''¥--,^nlify-:i|C>-.<Em),';^:.; 

Name, SSN, EIN and/or Corp Tax Account ID Number (If applicable) of any Individual or business entity owning all or a majority o( tha stock 

of tho taxpayer. 

;NaJHe^^;:^:^:.^if-i^^::"'fef^s^^^^;;;i^^^ .SSNriSr?ElN^j;^??^r:V'?v Corp TaV;'Accdun t-lb •? 

r'ACAaiDlL 10:29/07 
04/01/201 1 S:06AH FAX 

REV-aaOCKOS-DO) 

Pennsylvania 

ocpAnTHwr or itcvEmis 

Schedul e L -Balance Sheets for Single^Member Limited Liability Companies 

when the Income is Reported on the Personal Income Tax Return of the Member 

Beginning ofYear End of Year 

1. Cash 

2.a. Trade notes and accounts receivable 

b. LBSS allowance forbad debts 

Inventorlee 

4. U.S. qovernmsnt Qbligationg 

5. Tax-exempt securities 

Other current assets (attach schedule) 

fviortgage and real estate loans 

8. Other investments (atlach schedule} 

9.a. Buildings and other depreclgbla assets 

b. Less accumulated depreciation 

fiiiMlSIlSi _AiJliij:££ 

mmmm 

WM^WJi^:A 

.,-f'^ ;•t.:^. :-....7,'>'.-:.lf.''----

;;^?^4^-::i^;5^i:i^ 

^fr(}:-!^-'iiy'^^r^\ 

53 9,0 7 2. 0 0 

351,591.O O 

160.0 0 

lfl7,481.0 0 

'•^IPWMMW^- 1,784 .00 

i ^ r V..; \ •llivr'ii'if ;^ 

^^^:-^^i^J^: : 

'.i-lO, 949,00 

436,900.00 

4, IfiO.DO 

104,048.00 

10. a. Depletable assets 

_ b. Lags accumulated depletion 

/;/;-r: r ; ^>;i•^;•:.; 

11. Land (nst of any amortization) 

J_2j. 

^b. 

13. 

Intangible assets (amortizable only) 

Less accumulated amortization 

Fvv^FV^i^Ori^ 

Other assets (attach schedula) 

14. Total assets 

Llabllltieg and capital 

Accounts payable 

I^ortgaqes, notes, bonds payable in less than one year 

130.0 0 1 3 0 

188,851.0 0 •.^' 1 .".:.•>. • :••'••'> • :^? ^ 110 , \?.2 

00 

00 

^•y^i: ^ 

15. 

16. 

.rr.,,,<u.-rT: w. ••ti.'-.".'-VJ.i':-->;''.\'\ V-'-w''-'-•'••-1-- -

» ^ W^^^^^MT!^ 

U^-^y^yiii(: 

•^>^^:^;:••.•^^' : 

••>•';.''•• 'yr^j^^m'^'-^:^: 

17. 

J 8 . 

19. 

20. 

other current llaPllltles (attach schedule) wm^:^^^^'^- 'Wy^:^^i^^^^^: 

Mortgages, notes, bonds payable in one year or more mmmm. ^i^^m^y^;^ 

other liabilities (attach schedule) 

Memljer's capital account 

'^fy^-'::^^X'>:^. 719,077.0 0 'j^r-^-^i^^t'^i^-ii^^v 

Total liabilities and capital 

-530,226.0 0 

188,851.0 0 

7 4 3,^25.OQ 

••Sit;i$;;o:l^il®lP'3 3, :i 0 3. 0 0 

^rl'^>:SV^x-:S^v 

Schedlil e M-1 -Reconciliation of Income (Loss) per Books to Income (Loss) per Return 

n o , 122.0 0 

1. Net Income (loss) per books 

2. Income included on federal Schedule C, 

federal Schedule E or federal Schedule H and 

not included on books this year (itemize) . 

3. Expenses recorded on books not included on 

federal Schedule C, ledaral Sct\cdule E or 

federal Schedule F thia year (itemiie) 

a Depreciation $ . 

tJ, Travel and entertainment $. 

4 Add Lines 1 through 3 

-122,575.0 0 

-122,575.0 0 

5. Income included on booKs not included on 

federal Schedule C, federal Schedule E or 

federal Schedule F this year (Itemize) 

a. Tax-exempt Interest 5 

6 Expenses recorded on federal Schedule C, 

federal Schedule E or federal Schedule F and 

not included on books this year (itamizo) 

a Depreciation $ . 

7 Add Lines S and 6 

8. Incomo or Loss on federal Schedule C, federal 

Schedule E or federal Schedule F. • 

Line 4 leas Line 7 . -1?,2, 57S,0 0 

Schedul e iyiT2.-Recon"ciliation of Member's Capital Account 

1. 

2. 

3. 

4 

5. 

fvlember's beginning capital account 

Capital contributed during tax period 

Net income for tax period , 

Withdrawals of capital during lax period 

Member's ending capital account (Lines 1-^2+3-4) 

fWuat equal Schedule L, Column D, Line 20. . . . 

-530, 2 7.6.00 

19,498.00 

-122,575.00 

-633,303,00 
04/01/201 1 8.4GA M FAX 

•REV-eeOCT (05-08) 

(210023/0027 

Pennsylvania 

DEPARTUCHf o f FUrvEhUE 

C-5 Schedule of Taxes 

PA Corporate Net Income Tax 

^A Capital Stock/Franchise Tax 

Philadelphia Business Privilege Tax-Gross Receipts Portion 

Philadelphia Business Privilege Tax-Net Income Portion 

Z] 

Income Taxes - Other States 

Payroll Taxes . 

Real Estate Taxes 

Sales and Use Tax 

J 

Z] 

Business Privilege Tax - Other than Incoma 

Occupancy Tax 

Local Income Taxes 

LocalTaxes-Not based on income Zl 

Olher Taxes - Not Based on Income 

Mher Income Tastes 

Total Tax Expense reported on Federal Income Tax Return 

1 

._ J 

Schedule OA - Other Additions 

Description 

Total 

Amount 

Schedule OD - Other Deductions 

Description 

Federal wages disallowed as a result of tax 

credits under IRC Sec 45B or IRC Sec. ^1 

Total 

Amount 

wt-io;r2 T.tiuo 
04/01/20 1 1 8:46AM FAX 00024/0027 

DR HELICOPTERS LLC 

23-3078396 

SCHEDULE L-ADDITIOIMAL INFORMATION 

BEGINNING END OF 

OF YEAR YEAR 

LINES OTHER CURRENT ASSETS 

PREPAID COSTS 160 4160 

LINE 13 OTHER ASSETS 

SECURITY DEPOSITS 130 130 

LINE 19 OTHER LIABILITIES 

MEMBER LOAN 719077 743425 
04/01/201 1 8:4GAM FAX 1^0025/0027 

^C^iHDUL E C 

'(Form 1040) 

DepSfliiistil of Ihc Trcasuo' ..^ v 

intarnni p»*Bnua SflrvlcB (yy ) 

Profit or Loss From Business 

(Sole Proprietorship) 

*- Partnerships, joint ventures, etc, generally must file Form 10G5 or 1065-B. 

•Attach to Form 1040,1040NR, or 1041. "See Instructions for Schedule C (Form 1040). 

GMONo, ]S'15-OD7a 

2009 

AHacfimtnl - _ 

aoflLrtnco No. tJ j 

Nnriir ot Qtoprlotor 

MICHAEL B SELIG 

Soclil tBcurlty numbar(5SN] 

A Pdnci;?;'! buslnoss or prolB^sion, incljrfino producl of safvlCa (ino irniriKlions) 

HELICOPTER TRANSPORTATION 

C E3usinc&3 name. It no seoarate bu:.-inc5£ nama. leave blAnk. 

DR HELICOPTERS , LL C 

E BuiLK:.^addrc6iCinclualnoiulteft,,oo(T.n3.)'-2045 WESTGAT E DRIV E SUIT E 20 5 

City, town Of posl pfficfl. stale, anfl ZIP eoJc BETHLEHEM , P A 1801 7 

F AccnunlinQ meUiod: 0 ) [XjCash (2) [JAccrual (3) [_)Other (specify)"• 3 1 

G Did you 'niateilally parlicipata' in the Operation ol this business during 2009? If 'No,' see instructions for limit oil tosses.. |XTYOS 

H If you Started or acquired this business during 2009, clieck here ** 

iPartTr-:-.! Incom e 

No 

Gross receipts or sales. Caution. See the instructions and ctieck Ihe box if: 

• This income was reported to you on Form W-2 and the 'Statutory employee' box on that form was 

checkdrt, or 

• You are a rnornbar of a qualifiod joint vonturo reporting only raiilal real ostato income not subjoci | 1 

to self-employment tax. Also see instructions for litriit on losses ^ | | 

Returns and allowances '. 

Subtract iina 2 from lino i 

Cost of floods sold .(from line 42 on page 2) 

Gross profit. Sublract line 4 from line 3 

6 Othor income, including fedoral and stale Qi'isolino or fuel lax credit or refund 

(sae instructions) 

7 Gross income. Add lines 5 and 6.. -. — 

Bart-ll ^ Expenses . Enter expenses 

a Advertising. 

Car and truck expenses 

(soe instruclions) 

10 Commissions and fees. 

n 

12 

13 

14 

Contract labor 

(see inslructions) 

Depletion ...; 

Depreciation'and section 

179 oxponso daduclioii 

(not included in Part 111) 

(see instructions) 

Employee bonolit programs 

(olher Ibon on line 19) 

Insurance (otfier than health)... 

Interest: 

a Morloago (paid lo tjonds,- otc) ...•..•.. r 

b Other 

15 

16 

17 Legal & professional services . 

10 

11 

12 

13 

14 

15 

16a 

for business use of your home only on line 30. 

85,309 . 

5,30 3 

16b 

17 3,440 . 

18 OfticQ expense 

19 Pension and profit-sharing plans 

20 Rent or loasQ (sea inslructions). 

a VohiclGs, machinery, and equipment. 

b Olher busini-'ss property 

21 Repairs and mainlonancB 

22 Supplies (not included in Part 111).. .. 

23 Taxes and licenses 

24 Travol, maals, and enlertainmont: 

a Travel 

b Deductible meals and entertainment 

(iea inslructions) 

25 Utilities 

2G Wages (loss omploynlent credits)... 

27 Other expenses (from lino 48 on 

page 2) 

IS 

19 

20 a 

20 b 

21 

22 

3,314 

14,530 

23 

24a 

24b 

25_ 

26 

27 

4,170 

147 

G,3&2 

"^'m'^^i^'^^^m^^"^^ 

23 Total expenses beforo expanses for business usa of homo. Adrl linos 8 Ihroufjh 27. 

29 Tenlaliv'e profit or (loss). Subtract line 28 from line 7 

30 Expenses for business use of your home. Attach Form 8829 

31 Net profit or (loss). Subtract lina 30 from lino 29. 

• If a profit, enlei on both Form 1040, line 12, and Schedule SE, line 2 or on Form 

1040NR, line 13 (if you checked the box on line 1. see instructians). Estates and 

trusts, enter on Form 1041, lino 3. 

• If a loss, you must go to lino 32. 

32 If you have a loss, check the box that describes your investment in this activily (see instructians). 

• If you chackod 32a. enter the loss on bolh Form 1040, Una 12, and Schsdula SE, line 2, or on Form 

1Q4[1NR, lino 13 Of you checked the box on line 1, see tho line 31 Instructions). Estates and trusts, enter 

on Forni 1041, line 3, 

If ypu chocked 32b. you must aitach Form 6198. Your loss may be lirnilod. ^ 

28_ 

iL 

30 

122,575 

-122,57 5 

31 -122 , Sib 

I—, All invaslmont is 

32 a [Xjat risk. 

,—, Some investment 

32b I lis not at risk. 

A For Paperwork Reduction Act Notice, see Form 1040 Instructions. 

FDi:!OnZL 00/18/09 

ScheduleC (Form 1040) 2009 
10026/0027 

04/01/20 1 1 8:46AM FAX 

. Srhbdu'ie C (Form 1040) 2009 MICHAEL B SELIG 

. 'fPal7t^lHM.V.'| Cos t o f Good s Sol d (see instructions) 

Paae2 

33 Melhod(s) used lo value closing inventory; a [ J Cost b Q Lower of cost or market c~Qoiher (attach explanation) 

34 Was Ihera any change in dolerminino quantities, costs, or valuations between opening and closing invontory? , . , . 

If 'Yes.'allocfi explanation ;.. Pl^e s P ] 

35 Inventory at beginning of year. !f different frotTi last year's closing inventory, 

attach explanalion 

36 Purchases lass cost of items withdrawn for personal use... 

37 Cost of labor. Do not include any amounts paid to yourself. 

38 Matorials and supplies 

39 Other costs 

40 Add linos 35 through 39 

41 Inventory at ond of year. 

35 

36 

160. 

37 

38 

39 

40 

41 

42 Cost of goods sold. Subtract line 41 from tine 4-0. Enter the result here and on page 1, line 4-

•P'art\IV.-in Informstion on Your Vehicle. Complete this part only if you are claiming car or truck 

requirod lo file Form 4562 for this business. See fhe instruclions for line 13 to find out if vou 

42 

160. 

160. 

expenses on line 9 and are not 

you must file Form 4562. 

43 When did you place your vehicle in service for business purposes? (month, day, year) *• 

4d Of the tolal number of miles you drove your vehicle during 2009, enler the number of milos you used your vehicle for; 

a Business b Commuitng (soe instructions) c Othor 

"-\ 45 Was your vehicle available tor personal use during off-duty hours? ^'''e s \Z\^° 

46 Do you (or your spouse) have another vehicle available for personal use? 1""]^^* [""[HQ 

/ a Da you have evidence fo suppori your deduction? Q Yos LJN O 

b If 'Yes,' is the evidence written?.. - ' Tlyp s | |NO 

[Part V-V-: .j othe r Expenses . List below business expenses nol incliiried on lines 8-26 or line 30 

BANK CHARGES 

DRUG TESTING 

DUES AND SUBSCRIPTIONS 

FLIGHT IMSTRUCTIOW _ _ _ _ _ -. 

FUEL _ ^_ _ _ .-_ _ _ 

INTERNET COSTS _ _ , -

MISCELLAbTEOUS _ _ _ . 

TELEPHONE • . „ _ „ J 

48 Total other expenses. Entor here and on page 1, 48 

X44. 

7 5 . 

353. 

2,885 . 

1,353 . 

825. 

205. 

522. 

6,362. 

Schedule C (Form 1040) 2009 

FDIZOtlSL lAJM/m