### 05/05/201 1 15:4 7 FA X 202493514 2 

### FA A DM S 0001/01 0

1 2 3 4 5 6 7 A y .10
- 1 1 1 2 1 3 14 1 5 I S 1 7 

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## Scon-R . MORRI S FA A OFFICP
. O

h REGIONA

L COUl^SE

L 

### 160 1 LIN U AVE. , S W R£NTON , WASHINGTO N

### 9805 7
. TEI..F-PI10NE : 425/227-141 7 FACSIMILE : 425/227-100 7 

# UNITE D STATE S O FAMERIC A

DEPARTMEN T O FTRANSPORTATIO N OFFIGErO FHEARING S WASHINGTON , D,C
. INTH E MATTERO F WESTMAR K

INDUSTRIES , INC
. I


### > 

## FA A DOCKE T NO
. 

## CP06NM000 8 -. ? DM S No
. l''AA-2006-2633 8 o FA A Cas e No
. 2006NM70009 5 Judg e RichardGoodwi n r>o



## M O HO N T O TAK E JUDICIAI
. NOTIC E Complainant , throughhi s undersigne dcounsel , pursuant to Rule s o f

Practic e 13.218(a) an

dFR E 201
. herel-j y move s that

th e AL J tak e judicial notic e of

the following : Tli e Administrator' s publishe dsanctio n guideline s fo r hazardou s material violation s containe da t 6 4 Fed
. Reg
. 1944 3 - 1945 0 (Apri l 21,1999)
. (Attached ) DATED thi s IS" ^ da

y o f Apri l 2011
. ,::^OTrR
. MORRI S FAA Attorne y

Motio n t o Tak

e Judicia l t^oiic e FA. A Docke t No
. C1'06NM000 8 Pag e 1 of 2 SCOT T R
. MORRIS
. FA A ATTORNE V 

### TEL ; 42S.227.14I7 ; FAX ; 425.227.100

-05/05/201 1 15:4 8 FA X 202493514 2 FA A DM S 0002/01 0

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^ 0 4 1 4 2 4 3 4 4 4 5 4 6 4 7 4 8 4 9 5 0 5 1 5 S 5 3 

## CERTIFICAT E O FSERVICE I hereb y certif

y tha i th e foregoin g Motio n to Tak e Judicial Notic e ha s bee n serve dvi afacsimil e an dCertifie dMai l - Return Receip t Requeste dthi s date , t o the following : Th e Honorabl e Richar

dC
. Goodwi n

—Office-o£iiearings , M--20

- 120 0 Ne w Jer.<!e

y Avenue , S.E
. Eas t Buildin g Groun dFloor
. R m£12-32 0 Washington , D.C
. 2059 0 TEL : 202.366.213 9 FAX : 202.366.753 6 Federa l Aviatio n Administratio n 800 Independenc e Avenu e S W Washington , D.C
. 2059 1 Attn : Hearin g Docket

Clerk , AGC-43 0 Wilbur Wright Buildin g - Suit

e 2W100 0 FAX : 202.493.514 2 Michae l Oiler , Owne

r Westmar k Industries , Inc
. 670 1 SWMcEwanRoa d Lak e Oswego , OR97035-781 5 TEL : 503.620,094 5 FAX : 503.639.674 9 Date dtlii s 25t

hda y o f April , 2011
.
MOIFAIRCHI N

Office o f Regional Counse l (ANM-7 ) Federa l Aviatio n Administratio n 160 1 Lin dAve
. S W Renton , W

A 9805 7 425.227.216 0

Motio n t o Take Judicia l Notic e FA A Docke t No ! CP06NMOOO

S Pag.e2of 2 SCOT T R
. MORRIS , FA A ATTOBMS Y TEL ; 425.227.1417 ; FAX : •I2S.227.100 705/05/201 1 15:4 8 FA X 202493514 2 FA A DM S 0003/01 0

Federa l Register/Vol , 64 , No
. 76/Wednesday , Apri l 21 , 1999/Rule s an dRegulation s 1944 3 Smal l Busines s Regulatoi y Enfofccmsfi i Faimtis s Ac t Th e Smal l Busines s Regulator y Enforcemen t

Fairnes s Ac t

o f 199 6 (Pub
. L
. 104-121 ) provide s generall y fo r congressiona l revie w o f agenc y rules
. A reportin g requiremen t

I s triggere dI n Inscance s wher e NCtI A i^!>ue.i; i final —- rul e a s define db y .Sectio n 55 1 o f th e Adminisiratlv e PpDcedure s Aa
. 5 U.S.C
. 551
. Th e Offic e o f

Managemen t

an d Budge t ha s determine dtha t

thi s rul e doe s no t constitut e amajo r

rul e fo r purpose s o f

th e Smal l Busines s Regulator y Enforcemen t Fairnes s Ac t

o f 1996
. Li:s l o f Subject s i n 1 2 CF RPar t 70 1 Charitabl e contributions
. Credi t unions
. B y th e Nationa l Credi t

Unio n Adrnirii$lri)tio n Boardo n Apri l 15
. 1999
. Becky Baker , Secretar y o f

th e Board
. Fo r Ch e reason s se t

fort habove , NCU A amend s 1 2 CF Rpart . 70 1 a s follows : PAR T 701—ORGANIZATIO N AN D OPERATIO N O F FEDERA L CREDI T UNION S 1 , Th e aulhoril y citatio n fo r par t 70 1 conllnue s t o rea da s follows : Authorhy
. 1 2 U.S.C
. 1752(51
. 1755
. 175C
. 1757 , 1759.1761a
. 176Ih , 1766
. 1767 , 1782
. 1784 , 1787
. an d1789
. Sealo n 701. 6 i s als o authorize db

y 3 1 U.S.C
. 3717. Sectio n 701.3 1 I s als o authorise db y 1 5 U.S.C
. 160 1 etseq, . 42U.S.C , IBfi

l an d42^5.0 , 3601-3610 , Sectio n 701.3 5 I s als o authorize db y 42 U.S.C
. 4311-431Z
. 2
. Par t 70 1 i s amende db y addin g S 701.2 5 t o rea dX

i follows : $701.2 5 Charitabl e contribution * an d donations
. (a O A federa l credi t

unio n ma y mak e charitabl e contribution s arid/o r donat e fund s t o recipiieni s no t organize dfo r profi t tha t ar e locate di n o r

conduc t acdviLle s i n acommunit y I n whic hth e federa l Credi t

unio n ha s aplac e o f busines s o r

t o organisation s Iha t

ar e ta x exemp t or^ganlzation s tinde r

Secdo n 501(c)(3 ) o f

th e Interna l Revenu e Cod e an doperat e primaril y t o promot e an d develo p credi t

unions
. (b ) Tn e boar do f

director s mus t approv e charitabl e contribution s and/o r donations , an dth e approva l mus t b e base do n adecerminacio n b y th e boar d o f dtrecior s tha i th e contribuUon s and / o r donation.' ! ar e i n th e bes t interest s o f th e federa l credi t

unio n an dar e reasonabl e give n Ch

e siz e an dfinancia l conditio n o f

th e federa l credi t

union
. Th e boar do f

directors , i f

l i chooses , ma y establis habudge t fo r charitabl e contribution s and/o r

donation s an d authoris e appropriat e ofFldal s o f ih e federa l credi t

luilo n t o selec t

recipient s an ddisburs e budgete dfund s amon g chos e recipients
. |F RDoc
. 99-993 1 File d4-20-99 : 8:4 5 am ) BLLM G COD E TSSS-OI- P DEPARTMEN T O F TRANSPORTATIO N Federa l AvtatiD n AdmlnlGUatio n 1 4 CF RPar t

1 3 Federa l Aviatio n Administratio n Polic y o n Enforcemen t

o f th e Hazardou s Material s Regulations ; Penalt y Guideline s AGENCY : Federa l Aviatio n Adminktratio n (FAA)
. DOT
. ACTloK ; Genera l statemen t o f policy
. SUMtflARY

: Thi s documen t

state s tha t FA A polic y o n determinin g th e sancUo n amount s I n FA A enforcemen t acuon s addressin g violation s o f th e Departmen t o f Transportatio n Hazardou s Materia l Regulation s (HMR) , Thi s polic y statemen t

provide s guidanc e fo r agenc y personne l I n th e exercis e o f th e KAA' s prosecutoria l discretio n I n enforcemen t case s concernin g transponacto n o f hazardou s material s b y air
. Th e guidanc e shoul dai dI n analysi s o f th e fact s an dcircumstance s o f eac hcas e s o a s t o arriv e a t

a n appropriat e sanctio n i n ligh t o f th e statutoril y define dpenalt y considerations
. Th e analytica l framewor k

shoul dals o promot e a relativ e consistenc y i n deterrnlnln g civi l penaltie s fo r

violation s o f

th e HMR
. EFFECTIV EbATE : Apri l 14 , 1999
. FO RFURTHE

RIHFORIMHO H COMTACT ; Bil l Wilkening
. Offic e o f Civi l Aviatio n Seoirity , Dangerou s Good s an dCarg o Securit y Division , telephone : (202 ) 267

- 9B54
. facsimil e (202 ) 267-5760 , email : BllI.WJlkening®ifaa.gov , mailin g address ; ACO-800
. 80 0 Independenc e Avenue , S.W. , Washington , D.C
. 20591 , o r Alla n H , Horowitz , Enforcemen t Division , Offic e o f

th e Chie f

Counsel , telephon e (202 ) 267-3137
. facsimil e (202)267-5106 , email : AUan.Ho/owltzfffsfl.50v , mailin g address : AGC-300 , 80 0 Independenc e Avenue , S.W. , Washington , D.C
. 20591
. SUPPLEMENTAR Y INFORMATION : Backgroun d Congres ; deremilne dCha t th e unregulate dcranspori^do n o f hazardou s material s constitute s athrea t ( o publi c safet y i n al l fonn s o f

transportation
. Congres s addresse dtha t threa t i n 197 4 b y enactin g th e Hazardou s Material s Transportatio n Ac t

(HMTA)
. B y 1990
. Congres s determine dtha t effectiv e enforcemen t o f th e HMT A require d mor e sever e action , an denacte dth e Hazardou s Material s Transportatio n Unifor mSafet y Ac t

o f 1990 , Publi c La w No
. 101-615 , 199 0 U.S
. Cod e Congress
. & Admin
. New s 104 Stat
. 4605
. Th e primar y effec t

o f thi s 199 0 revisio n o f _ct)e-HMT- A wa s co rais e th e maximu m dvl l penall y fo r

vioiaclo n o f

an y regulatio n enacte dunde r th e IIMT A t o J25,000 , and
. fo r

th e first time , t o requir e aJ25 0 minimu mpenalt y for an y suc hviolation
. Th e HMT A wa s recodifie dI n 199 4 an dI s no w referre d t o a s th e "Federa l hazardou s materia l cratisportatlo n law. " 199 4 U.S
. Cod e Congress
. S

t Admin
. New s 10 8 Stat
. 759 , codifie da t

4 9 U.S.C
. 5101-5127
. I n th e 199 4 recodification
. Congres s specificall y state dtha t

th e recodificatio n create dn o substantiv e chang e t o th e earlie r

formo f th e statute , Th e Federa l Civi l Penaltie s Inflatio n Adjustmen t

Ac e o f 1990
. 2 8 U.S.C
. 246 1 (note) , a s amende db y th e Deb t CoUectlg n Improvemen t Ac t o f 1996 , Publi c La w 104-134
. Apri l 26 , 1996
. provide s amechanis mfo r adjustment s fo r monetar y civi l penaltie s fo r inflatio n I n Orde r t o maintai n th e deterren t effec t o f monetar y civi l penaltie s an dpromot e compliant ^ wit hth e law
. Unde r th e statute , th e ne w civi l penalt y maximum s canno t

b e applie dunles s the y ar e implemente db y reguladon
. O n Decembe r

20 , 199S
. th e FA A publishe d afina l rul e (6 1 FR6744)
. implementin g th e statut e fo r

eac hdv U penalt y subjec t t o th e FAA' s juri-<!dicticrn
. O n Januar y 21 , 1997 , th e FA A publi.she da correctio n t o th e final rul e (C 2 F R4134) , Th e final rul e i s codifie da t 1 4 CFRPar t 13
. Subpa n H
. Flirsuan i t o 1 4 CFR 13.305(d)
. th e maximu mcivi l penalt y tha t ma y b e assesse dfo r

aviolatio n o f th e Federa l hazardou s materia l la w o r a hazardou s materia l regulado n i s no w $27,500
. Congres s assigne dLh

e responsibilit y fo r th e enforcemen t

o f th e Federa l hazardou s materia ] transportatio n la w t o th e Secretar y o f

Transportation
. Withi n Ch e Departmen t

o f Transportation , th e Researc han dSpecia l Program s Administratio n (RSPA ) adopt s ih c Hazardou s Material s Regulation s (HMR) , 4 9 CF Rpan s 17 1 throug h178 , whic hgover n th e transportatio n o f hazardou s material s (Hazmac)
. Althoug h RSP A ha s som e enforcemen t responsibilities , th e responslbUlt y fo r enforcin g th e HIwl

Rwit hrespec t

t o dvl l aviatio n i s delegate db y th e Secretar y o f Transportatio n t o th e FAA
. 4 9 CFR 1.47(k)
. Th e HM Rse t

fort hregulation s fo r

th e transportatio n o f

Hazmat
. A knowin g violatio n o f

th e .statut e o r

o f th e HM R ca n suppor t

th e assessmen t

o f acivi l

### 05/05/201 1 15:4 8 FA X 202493514 2 

### FA A + DMS 12004/01 0

1944 4 Federa l Register/Vol
. 64
. No
. 75/Wednesday
. Apr Q 21
. 1999/Rule s an dRegularion s penalt y betwee n $25 0 an d$27,500
. A perso n act s knowingl y whe n th e perso n ha s actua l knowledg e of

th e fact s givin g rise t o th e violation : o r

areasonabl e perso n actin g i n th e circumstance s an d exercisin g reasonabl e car e woul dhav e tha t knowledge
. 4 9 U.S.C , 5123(a) ( ) )(A)
. ..Thecivi l penaltiesauthorlzedunder_the_
. statut e appl y t

o EAC H violatio n o

f an y regulatio n se

c fort hi n th e HMR
. Moreover , unde r

th e statute , eac h continuin g violatio n of

th e HM Rca n constitut e aseparat e violatio n fo r eac h da y aviolatio n continues
. In sectio n 5 ] 24 of th e statute . Congres s prescribe d crimina l penaltie s for awillfu l violatio n of th e Federa l hazardou s materia l transportatio n la w o r

th e HMR ; wlUful violation s requir e evidenc e o f bot h Knowledg e o f

th e law s an dregulation s an dinien l t o vlolar e them
. Pa n 1 3 o f th e Federa l Aviatio n Regulations—Investigativ e an d Enforcemen t

Procedure s 11

4 CF RPar t 13 ) govern s th e procedure s applicabl e t o enforcemen t

o f th e HM Rb y th e FAA
. Hazmat violation s occurrin g o n o r after Augus t 2 , 1990
. ma

y b e dismisse db y a n administrativ e la w Judg e (ALJ ) if a Notic e o f Propose dCivi l Penalty ha s not bee n issue dwjthi n 2 year s o f th e violetian , unles s goo dcau& e for dela y ha s bee n shown
. 1 4 CF

R13.208(d)
. Consideratio n o f

Statutor y Criteil a I n determlnin e th e sanctio n t o b e assessed , penalt y criteri ase t fort hi n 4 9 U.S.C
. 512 3 mus t

b e considered
. Thes e criteri aore th e nature , circumstances , ejcicni , an dgravity o

f th e violation , th e degre e o f culpabilit y o f

th e vioiatof
. an y hLstot y o f pas t violations , (h e abilit y t o pay , an y effect

o n thi ; abilit y t o continu e t o d o busirtess , an dothe r matter s a s justic e requires, Some of thts e consideration s alread y ar e factore dt o som e exten t

int o th e categorie s i n th e Hazardou s Materia l Sancdo n Guidanc e Matrix
. Th e statutor y factor s ar e furthe r considere dunde r

th e weightin g analysi s tha t i s performe dto Indicat e th e amoun t o f civi l penalt y withi n th e appropriat e range , i.e.
. at

th e minimum , moderate
. O f maximu mportio n of

th e .sanctio n range . T o compl y wit hth e underlyin g purpose s o

f th e Federal hazardou s materia l transportaUo hla w an dHMR, a sanctio n shoul db e Impose dtha t i s sufficientl y deterren t

but no t excessive
. Th e Hazardou s Material s Sanctio n CuidaiK e i s designe dt o promot e t>ecce r consistenc y s o tha

t similar penaltie s ar e Impose di n simila r

cases . Th e Matri x ranges : ar e intende dt o reflec t th e nature , circumstances , extent , an dgravity o f th e cas e a s compare dwit hothe r type s of cases . Eac hcase , however , mus t b e evaluate do n it s ow n facts
. A sanctio n may differ

ftomth e Matri x range s whe n th e fact s an dclrcumstance.< i o f acas e suppor t eithe r agreater o r lesse r penalry
. Whe n aspecia l agent believe s tha t apenal ^ shoul dexcee dth e Matri x ranges , th e agen

t shoul dcortsul t

with legal counse l befor

e furthe r processin g o f th e Enforcement

Investigativ e Repor

t (ElR).-Thl5.cfiD.j!ultatio

n I s no t necessary I n th e cas e o

f arecommende dpenalty that i s les s than tha t

provide di n th e Matrix
. In either

situation , th e basi s for th e decisio n t o g o outsid e th e ranges shoul db e explaine dIn detail

Violation s o

f Par t 17 5 of th e HMR , whic hestablis hparticula r requirement s fo r ai r carrier s an dothe r

aircraf t operators , are containe di n aseparat e matrix
. However , suc hoperator s olte n ofie r hazardou s material s fo

r ai r transportadon , a s wel l a s accep t ari d transpor t ihem
. Fo r

thi s rt:ason . suc h operator s ma

y b e liabl e for

violation s bot ha s abusines s entity withi n th e Hazardou s Material s Sanctio n Guidanc e Matrix , a s wel l a s specifi c ai r carrie r violations
. Us e of th e Sanctio n Guidanc e Thi s guidanc e provide s agenc y personne l withasysleinati c way t o evaluat e acas e an darriv e a t a n appropriat e penalty , considerin g al l th e relevan t statutory criteri aincludin g an y mitigatin g an daggravatin g circumstances
. Statutory consideration s hav e bee n factore dInt o th e variou s range s withi n th e Sanctio n Guidanc e Matrix
. Determinatio n of

wher e a sanctio n lie s withi n thes e range s I s aide db y aserie s of

weightin g quesdon s tha t prob e th e variou s aggravatin g an d mitigatin g faccor

s thai ma y exis t i n a case . First , th e weightin g analysi s i s performed
. Agency personne l respon d t o aserie s o

f question s t o determin e th e aggregate weight

o f th e case . Th e aggregai aweigh t

o f th e cas e help s determin e th e sanctio n amoun t o f eac h violatio n group withi n th e establishe d range s o f th e Matrix
. It I s importan t

t o not e tha t determinatio n o

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

th e resul t o f a mathematica l computation
. Evaluatio n o f th e cas e i s base do n th e rotallty o f th e fact s an dcircumstances
. Generally , i f th e answe r

to aparticular

questio n represent s amor e significan t aspec t o f a case , greater

consideratio n shoul db e give n t o tha t

answ^
. Fo r

example , violation s involvin g a n extremel y dangerou s substance , eve n I n minut e quancities , might

warran t apenalty a

t ihf r maximu men do

f th e rang e o r

eve n apenalt y exceedin g th e Matri x ranges . Unde r th e Sanctio n Guidanc e Matrix , agenc y personne l determin e th e categor y o f violato r th e perso n fall s withi n (e.g. , busines s entity tha t

regularl y offers , accepts , o r transport s Hazmat) an dth e offens e category (e.g. , undeclare dshipmen t

withi n Hazmat quaniii y limitations)
. Th e sanctio n range s unde r

th e variou s violato r categorie s take Into accoun t th e relativ e • culpabilit y o

f th e violator
. Similarly , th e offens e categorie s addres s th e nature , circumstances , an dgravity of th e particula r offense
. Afte

r determinin g th e appropriat e categorie s an dir^teraccilr^ bo x of th e Matrix , agenc y personne l the n determin e whic hsubcategorie s o f offense s (e.g.
. shippin g papers ) ar e allege dt o hav e bee n violated
. Base do n th e weightin g analysi s performe di n Sectio n I , a

n appropriat e penalt y i s assigne dfo

r eac ho f th e applicabl e violatio n groups . 'ITie penalty amoun t fo r eac hrelevan t

violatio n group i s adde dtogethe r

t o reac hth e recommende dsanction
. Unde r Sectio n 11 1 o

f th e Guidance , th e specia l agen t

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

aNotic e of

Propose dCivi l Penall y whe n ther e i s adequat e reliabl e if»formarir>

n concernin g th e corracriv c acUon s take n b y arespondent
. CoTTiiCiiv e action s tha t

Justif y reductio n o f th e recommende dpenalt y mus t excee dth e minimu mlegal requirements
. Th e specia l agent als o attempt s t o provid e informatio n concernin g th e allege dviolator' s size , financial condition , an dability to pa y a recortunende dsariction
. When a n EI Ri s forwardedt o legal counse l fo

r enforcemen t

action , counse l wit hgiv e appropriat e consideratio n t o th e recommende dsanction
. FA A lega l counse l wil l als o revie w th e factors , analysis , an ddecermination s unde r th e Hazardou s Material s Sanctio n Guidance
. An

y basi s fo r deviatin g from (h e recommen dsancdo n i s ordinaril y explaine dto . an ddiscusse dwith , th e Investigatin g specia l agent . Fina l determinatio n o

f th e sanctio n amoun t propose di n th e Notic e of Propose d Civi l Penalty i s ordinaril y aproduc t o f join t declsonmakln g an dapprova l of th e investigatin g agent

an dth e lega l office , Federa l Aviatio n AdmlnlstratlD n Hazardou s Material s Sanctio n Guidanc e Thi s Sancdo n Guidanc e I s divide d Int o thre e section.-: : LCas e AnaV$l3 , n . UUllUEto

n o f the Sanction Guidance Matri x (Mairte) , an

d H LCanalderaclQ

n o f ot>>e r Statutor y Factors
. Th t SanctJo n Guidance Matri

x I s coniaJne

d I n Figur e 1 an dth e Ris k Cacegorie s ate containedi n Figur e 2
.

### 05/05/201 1 15;4 8 FA X 202493514 2 

### FA A DM S 13005/01 0

Federa l Reglster/Vol
. 64 , No
. 76/Wednesday
. Apri l 21
. 1999/RuIe s an dRegulation s 1944 5 I , Cas e Analysi s (Evaluatio n o f Statutor y Assessmen t

Faaors ) Thi s sectio n contain s ascrie s o f question s designe d( o assis t specia l agent s an dattorney s i n evaluatin g a particula r

case . Th e questio n reWe w factor s Involvin g th e nature.
- circumstances , exten t

an dgravit y o f

(h e violation , di e violator' s degre e o f culpability , an dth e violator' s histor y o f prio r violations
. Som e o f

thes e factor s ar e alread y considere dt o som e exten t withi n th e variou s categorie s o f th e ' Sanctio n Guidanc e Matrix
. Th e question s i n thi s sectio n provid e additiona l consideratio n o f th e statutor y factor s an dexamin e th e existenc e o f aggravatin g an dmitigatin g faaor s i n a case . Th e agent/attorne y answer s eac h questio n I n Sectio n I an ddetermine s If arelativ e weigh t

o f minimum , moderate , o r

maximu mshoul db e assigne dbase do n th e respons e t o th e question
. Wit hth e exceptio n o f Questio n A.I.
. no t

al l question s wl U appl y t o agive n fac t

situation
. Questio n A.I. , whic haddresse s th e natur e o f th e hazardou s material(s ) involved , i s th e onl y questio n tha t

alway s receive s a "yes " answe r

t o on e o f

it s subquesUon s an di s considere dI n ever y case . Th e aggravatin g o r

mitigatin g faaor s addresse di n th e question s onl y appl y t o th e cas e whe n th e questio n receive s a "yes " response . Question s receivin g a "no " resporis e d o no t

affec t th e wel^tlti g o f

th e cas e an dar e no t considered
. Fo r

example , i f

th e violatio n resulte di n har mt o persor ^ o r properly , tha i ma y b e a n aggravatin g facto r i n th e case . However , th e fac t tha t th e violatio n di dno t

resul t i n Injur y o r damage , i s no t

amitigatin g lacto f

an d shoul dno t

resul t i n penalt y mitigation
. I n man y li^tances , th e ani^wcr s t o mos t o r al l o f th e question s wD ) b e "no " an d Ch e onl y relevan t

weightin g facto r

i n thi s sectio n wil l b e th e ris k categor y o f th e materia l identifie dI n Questio n A.i
. I n determinin g th e fina l aggregat e weigh t o f th e case , di e response s t o eac h o f th e questior e d o rw c hav e t o b e equall y considered
. Determinatio n o f whethe r th e overal l cas e shoul dhav e a minimuin , moderace , o r maximu m weigh t canno t b e determine dwit h mathematica l certainty
. Generally , i f th e answe r t o aquestio n demonstrate s iha t th e facto r

e l issu e represent s amor e significan t

aspec t o f th e case , greate r consideratio n I s give n t o tha t factor
. Th e fina l aggregat e weigli i i s base do n th e totalit y o f

th e fact s an dcircunrtslance s o f th e case . Onc e determined , th e final aggregat e weigh t

I s the n utilize dt o arriv e a t th e recommende dsanctio n To r eac happlicabl e violatio n grou p o n th e Sanctio n Guidanc e Matri x (Fig
. 1)
. A
. Th e Nature , Circiimstancea
. Exierti
. e n dCravic y o f

th e Violatio n (Factor s Concernin g th e Shipment ) 1
. Wha t MateriaKs ) Wa s Offered , Transported , or^Accepic dfo r Al t Transportation ? (Figur e 2 divide s hazardou s material s o f particula r

classes , divisions , an d packin g group s Int o thre e risk categories ; Categor y A , Categor y B , an d Categor y C
. Fin dth e material(s ) a t issu e I n Figur e 2 an danswe r th e questioiv s below. ) a . I s th e maicrial(s ) offered , transported , o r

accepte di n Categor y A ? I f yes . assig n aMaximu mweight
. b.I s di e mateTial(s ) offered , transported , o r

accepte di n Categor y B ? I f yes , assig n aModerat e weight
. c . 1 $ th e materiaKs } offered , transported , o r

accepte di n Categor y C7 I f yes . assig n aMinimu mweight
. Guidanc e Noto : Th£caCeEorlc s I n Figure 2 represen t th e Inlloren i ris k

o f dange r l o ai r rransponailo n pose dt>

j ih e mauilal
. V there 1 $ mor e tha n on e ryp e o

f hazardou s niateriA

l involve dIn ih c shipment , answe r thi s questio n usXn

^ th « hazardou s materia l i n th e iilEhesT ris k

category . 2
. Wha t Quantit y o f

th e Materia l (s ) Wa s Offered
. Transported , o r Accepte dfo r Ai r Transportation ? a . Di dCh e package(s ) excee dth e authorize dquantit y llmiration A b y a signiQcan t

amount ? I f yes , conside r

aModerat e o r Maximu mweigh t

dependin g o n ch e degre e t o whic hth e limitatio n wa s exceeded
. Guidanc e Note : Th e Mag-lx , discusse di n Sectio n ni , take s Int o accoun t di e factual sliuatlon s wher e th e quandt y limluiUDn s for ch e materia l ar e exceeded
. Thi s par t of (h e analysi s Is intende dt o detErmine^whether further BggisvalJng circumstance s cxlS T wher e quantit y limitation s ar e cxcecdo db y » slgnncan t

amount . Whethe r

thi s ^cio r

I s assigne damoderat e o r

maximu mweigh t

wil l depen do n th e degre e b

y whic hth e quantit y limilaUo n wa s exceeded
. Eiample : Th e quantit y limitatio n fo r gasolin e o n apassenger

plan e Is S liter s pe

r package
. I f aviolato r ofTet s 3 0 liter s i n a singl e packag e o n apassenge r plane , thi i may resul t i n amaximu mweigh t

fo r thi s facto r b
. Wer e ther e multipl e package s i n th e shipment ? I f yes , conside r

aModerat e o r Maximu mweight , dependin g o n th e numbe r o f package s an dtota l arnoun c o f ha7.ardou s materia l bein g iransporre di n violation
. Guidanc e Note ; A packag e mean s a padcagln g phi s li s contents , Ther e may b e muldpl e package s i n on e shipmen t o r overpack
. Multipl e package s oAe n represen t multipl e violations
. Unde r ih aSarictio n Guidance , this fact

I s considere da

n aggravatin g clrcutroianc e rathe r than adirec t multiplie r o f th e saricrlo n fo

r eaci i vioLitlon
. Eachcase , however , mus t b e evaluate do n it s particular facts , A vei y larg e numl>e r o f package s ma

y resul t I n suc ha n egregiou s cas e that the ' »'VerallJiicigliror

ch e caseJS.S O hig hiha l 9 penall y beyon dth e maxtmu m poin t i n th « rang e I s warranted
. A n Investigatio n wil l occaalonall y levea i severa l shipment s fromth e xitrn e olfcror ove r » perio do f several days , al l o

f whic hInvolv e vloladon s o

f th e HMR
. 'Thes e independen t »CC 5 of ofterln g usuall y ar c consolldaio dint o on e EI Ran daddresse di n on e Note of Propose dCM I Penalty
. However , fo r purpose s of

determinin g che appropriat e sanction , eac hseparat e shipmen t witha separat e ai r

waybil l o r

thlppln g papcn , separat e destination , and/o r an y othe r evidenc e e.uabUshln g I

t a s i separat e shipmen t i s ordinaril y considere da s a scparit e Inciden t

for purpose s o

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

th e separat e shipment s b e ireftteda s Individua l count s i n lh e EI Ran d th e NoUc c of

Propose dCivi l Penalty , wit h eac hcoun t

havin g It s ow n xmciio n derive d I>o mapplicatio n o f

thi s guidance
. Note , ther e mus t bi e sufllclen c evidenc e t o suppor t eac h counL 3

- Di dCh

e Shipmen t

Caus e Damag e o r Har mt o Person s o r

Property , o r

Interfer e Wit hCommerce ? If yes , cotiside r

aModerat e o r Maximu mweight
. Cuidanc e Note : Th e fact

tha t n o damii ^ occurre da s aresul t

o f th e shipmen t

I s no t amiligatin g faaor
. However , damag e o r harm may aggravB K

th e nature , clrcuiwtances
. extent , an dgravit

y o f th e violation
. Dependin g on th e degre e of danag e cause d by th e shipmen t

and/o r th e existenc e o f

othe r aggravatin g factors , departur e fro mth e range s ma y tTeJujilfled
. B
. VialAior' s Degre e o f CulpsbiUr y (Th e Matrix , Figur e 1
. consider s th e relativ e culpabilit y o f

th e violator
. Thi s sectio n o f

(h e analysi s fijrther

evaluate s th e degre s o f

culpabilit y o f

th e violator. ) 1
. I s ch e Violato r

ch e Manufacture r

o f th e Hazardou s Malcrial ? I f yes , conside r

aMaximu mweight
. Guidanc e Note ; A manufacture r o f a hasirdou j materia l i s cKpecredt o hav e complet e knowledg e o

f th e natur e o

f th e hazardou s materia l an dthus , ahig hdegre e o f culpabilit y wil l ordinaril y t> « impute d| o I L 2
. Di dSomeon e Oti^e r

Tha n th e Violato r Prepar e ih c Shipmen t

fo r Transportation ? I f yes , conside r

aMinimu mo r Moderac e weight
. Guldttne e Note ; Facto supportin g a n alHiTDaUv

e answe r t o thi s questio n ma y b e caus e n > mitigat e culpabilit y and/o r puisu c a05/05/201 1 15:4 9 FA} { 202493514 2 FA A DM S iaOOG/01 0



### 1944 6 Federa l Register/Vol
. 64
. No
. 76/Wednesday , Apri l 2] , 1999/Rule s an dReguIaHon s separat e enforcemen

c action aealnst

othe r responsible parue s wh

o handledthe shlpmeni

- Ashippe

r that reshlp s material s receive dfro manothe r pei^ n i n the sam

e packagin g I s independentl

y lesponslble fo

r ensuring the shipmen

t complie s wit

hthe HMR
. Neverthelass , th e rashippc

r i s gcnei-all y consideredt

o hav e aless w degre

e ' ofcCTlpabtHty-for-coinpTliin'c e o f thc-packa i as received
. However

, i f the reshlppe

r unpacks and/o

r repackage s th

e shipment , th

e reshlppe r remain s a s i^uLpabl

c a s th e origina

l shippe r andgenerall

y Is not accorde d mitigation unde

r ihd s welgiitln g factor
. (Fo

r purpose s o f thi s aectlan , a"reEhipper " refer s t o aperson , othe

r tha n the origina

l offeror , wh o offer s ashipmen

t o f hazardou s malaria

l fo r transporuitlon. ) 3
. Di dth e Violato r

Reasonabl y Fel y o n Incorrec t Informatio n Fro mAnothe r Source ? Ifyes , conside r

aMinimu mweight
. Guidanc e Note : Detrimenta

l o r reasonable relianc e o n anothe r part y ma y be amitigatin

g facto r whe n considering th e violator s degree , o f culpahllny
. Fo

r example , relianc e o

n a n Inaccurat e Maiena i Safet y IJat aSiiec T (MSDS ) ma y b e mlllgatlng
. 4 , Doe s th e Violato r

Hav e aHistory o f Previou s HM

RViolations ? Ifyes , conside r

aModerat e o r Maximu mweight
. Guidanc e Note : To esxahUs

haviolation history , aprio

r vjolaUo n must b e a n actua l findin g o f violation pursuan

t t o alega l enforcemen

t action
. Specia

l agent s should attempt t o determin

e the corporat

e sinicrur e o f the violato

r an dwhethe r othe r busines s enUUe s or name s ar e o r hav e bee n usfl db y th e entit y I n orde r t o obtain acomplet

e violation history
. The numbe r andage o f violation s shouldb

e considered , Ordinarily , finding s o f violation mor

e tha n S years old can y les s welgiit, unles s acontinuing patter n o f violatio n exists
. C
. Orherfsctoir s Eac hcas e miis t

b e evaluate do n it s particula r facts
. A s such , man y case s ma y presen t

uniqu e scenario s an d aggravatin g o r

mitigatin g factoi dtha t

ar e no c routinel y seen . I

f a n aggravatin g o r mitigatin g circumstanc e exist s cha c I s not adequatel y addresse delsewher e i n th e sanctio n guidance , i t

may b e include dan dassigne daweigh t unde r thi s section
. Th e facto r

shoul db e clearl y identifie dan dexplaine di n th e analysi s portio n o f di e EI Ran dcarefull y scrutinize dby lega l counsel
. Guidanc e Note : Fo

r example , aslilpmen

l o f asingle packag

e containing severa

l differen t hazardou s material s ma

y prcsc»i t a n aggravatin g factor
. The degra

e o f seriousnes s at thi s facto r will Increas e i

f di e hazardou s material s ar

c Incompatible wit

heac hothe r and , therefore , Creat

e a n Increase drisk Mitigatin g factor e ma y als o txis t

tha t have no t bee n adequatel

y considered
. Fo

r example , ashipment

containing ad

e minimi s quantit

y o f materia l o r o n airtoun c ttja t woul d liav E qualifie dunde r th e smal l quanth y exception o

f § 173.4 ma

y presen t amitlgaun

g facto r i f a< ; aresult ther e vw s areduce dris k 1 0 safet y I n transportation
. £>
. Deicrmlr e th e Fina l AggregAt e WalghiofttieCas e

- Al l Ui e responses/wclgHts~Ee " evaluate dt o determin e afina l aggregat e weigh t o f th e cas e (Minimum
. Moderate , an dMaximum)
. Question s receivin g a "no " respons e wil l not

b e include di n tills evaluation
. T o determin e th e fina l aggregat e weight , th e agent/attorne y mus e exercis e his/he r

discretio n I n ligh t o f th e scacucor

y factor s an dknowledg e o f th e particula r

fact s o f th e case . Th e fact ! cJ T Ih e particula r

cas e wil l dictat e th e relativ e importanc e o f eac hof ih e weightin g factor s I

n reachin g afina

l aggregat e weight
. Th e final aggregat e weigh t shoul db e decide da s aresul t o f carefu l analysis , no t

amathematica l averaging
. It

I s possibl e that

asingl e weightin g facto r

may outweig hal l oflicrs
. Th e agent/attorney' s analysi s shoul dalway s b e explaine di n thi s regard
. Example : A ca.'. c involvin

g « hazardou s materia l I n the lowest

risk categor y ma y b e evaluate dto have amaximu

mweigh t becaus e o f th e Intg c quantit y shippedo

r the damajj e resulting tlo

mth e shlpmcn

L H
. Utiliz e th e Matri x (Figure 1 ) Th e sanctio n range s unde r th e offero

r an doffens e categorie s o

f ch e Sarv:tio n Guidanc e Matri x reflec t

th e relativ e culpabilit y o

f th e violato r

an dth e nature , circumstances , extent , an d gravity o f che case . Consideratio n o f thes e particula r

scacucor y factor s unde r th e Federal hazardou s material transponatio n la w i s buil t int o th e Matrix
. Furche r

analysi s o

f th e siaiuior y factor s I s require dc

o decermin e th e appropriat e sanctio n withi n ch e range s establishe dunde r

th e Matrix
. Thi s analysi s i s performe dIn Sectio n 1
. Alte r determinin g th e final aggregat e weigh t o f ch e cas e unde r

ch e Sectio n 1 analysis , tha t weigh t i s applie dt o th e appropriat e macri x rang e c

o identif y th e recommende dsanctio n amoun t fo r eac h o f th e relevaru violatio n group s an dfo r ch e cas e a s awhole
. Altiioug hch e Notic e o f Propose dCivi l Penalty ma y cice ntimerou s violation s o

f aparticula r

par t o r subpa n o f th e HMR , unles s upwar d departur e IsJusriRed
. asingl e penalty amoun t fo r eac hviolatio n grou p i s ordinaril y use dc

o reac hth e full sanction
. A
. Instruction s 1 , Identif y th e appropriat e cacegor y fo r th e typ e o f

entit y an dch

e rtacur e o f Ui e offens e involve di n th e case . Refe r t o th e Definition s Sectio n that follow s th e Matri x i n Figure 1 fo r guidance
. C o t o ch e Intersectin g bo x an dIdentif y th e applicabl e sancQo n rang e fo r eac h violatio n group , 2
. Appl y th e conclusio n reache di n th e Sectio n I w^ightm g analysi s l o assig n asanctio n amoun t

withi n th e JtDiQimum
. mnrlpraii^ , o r

maximu m ponlo n o f ch e sanctio n rang e fo

r eac h relevan c violatio n group . TV e recomrtiende dcivi l penall y a t thi s stag e i s th e su mo

f th e sanction s fo

r eac ho f th e applicabl e vloletlo n groups . A sanaio n shoul dno t

b e Bs."MSsc

dfo r a violatio n grou p i

f ther e hav e bee n n o violation s o

f that part o r subpar t o f th e HMR

- Th e sanctio n amoun t

fo r eac h violatio n grou p nee dno t

b e identica l but ordinaril y I s vtrtthin di e portio n o f th e particula r

sanctio n rang e Cha

t represent s th e overal l weigh t o f th e case . 3
. Departur e fro

mth e Matri x ranges — Th e Matri x i s designe dt o cover A e majority o f

case s involvin g violation s o f th e HMR
. Th e fact s an dclrtumstance s o f aparticula r

case , however , ma

y Justif y eithe r a n upwar do r

downwar d departur e fromth e Matri x ranges . Thi s sanctio n guidanc e anticipate s an d encourage s departur e fromth e Matri x range s whe n justified
. A cas e involvin g violation s i n whic hth e nature , circumstances , extent , an dgravity o f Th e inciden t ar e particularl y severe o r egregious , ma

y Justif y upwar ddepanur e &o mdi e Matrix
. I

f th e investigatin g agen t believes , base dupo n che fact s o f acase , that

apenalt y shoul dexcee dth e Matri x ranges , th e agerr

t shoul dconsul t wit hlega l counse l before further processin g of

th e EU t Conversely , th e investigatin g ager^

r may believ e that mitigatin g faccor

s Justif y adownwan J departtjr e fro

mth e Matri x range . Consulcatio n wii hlega l counse l i s no t necessary I

n ch e cas e o f arecommende d penalt y cha

t i s les s tha n tha

c provide d I n th e Matrix
. In eithe r

situation , however , ch

e agent i s t o provid e a detaile dexplanatio n o

f th e basi s fo

r th e decisio n t o go outsid e th e ranges . 4
. Violation s o

f Pa n 17 5 regulations , wliic hestablis hparticula r requirement s fo r ai r carrier s an dothe r

aircraf t operators , ar e containe dIn aseparat e matrix
. However , suc hoperator s often o/Tei " Hazmat fo r ai r irarisportatio n as wel l a s accep t

an db-anspo n It
. A s such
. ch e operato r ma y b e liabl e fo

r violation s a s abusines s entit y withi n th e mai n Matri x a s wel l a s fo

r th e specifi c Part 17 5 violations
. in
. Impac t

o l Othe r Statutor y Faaor s Th e Federa l hazardou s material transportatio n la w als o require s consideratio n o

f aviolator' s ability t o pa y acivi l penalty , th e impac t o f di e civi l penalt y o n di e violacor' s ability c o05/05/201 1 15:4 9 FA X 202493514 2 FA A DM S 0007/01 0

federa l Regisier/Vol
. 64 , No
. 76/Wednesday , Apri l 21 , 1999/Rule s an dRegulation s 1944 7 continu e t o d o business , an docher matcer s cha

t Justic e requires
. Consideratio n of

thes e factor s ma

y resul t i n adjustmen t

o f ch e recommende dcivi l penalt y cslcularc d i n Sectio n I

LI n situation s wher e th e agen t o r attorne y I s i n possessio n ci f 1
. Th e investigatin g agen t wil l attemp t t o includ e financial informatio n a s a n exhibi t i n th e EIR
. I t

i s anticipate dtihat thi s Information , i f

available , wil l b e obtaine dfromreliabl e financial dat a bases
. Financia l documentatio n shoul d Include , bu t

nee dnot b e limite dto . miligating-triforTBatlon , sud i a s inability-—infermatio n coneemin e th e violator' s C O pa y th e recommende dcivi l penaic y o r correctiv e actio n taken , reductio n o f th e recommende dpenalt y may b e appropriate
. Mitigatin g Infornwtio n shoul db e sufBcienti y reliable , uncontrovened , an ddocumente di n orde r t o suppor t

reductio n of

th e recommende dclvU penalry prio r t o issuin g th e Notic e o f

Propose dCivi l Penalty
. A
. Ability To ?ay/Continu 6 i n Busines s Historically , th e FA

A ha s considere d thes e tectors afte

r ch e issuanc e o

f th e Notic e of Propose dCivi l Per«I( y du e c o ch e absenc e o

f reliabl e financial informatio n o n whic hro bas e a reductio n prio r

t o th e issuanc e o

f a Notice
. Thi s Sanctio n Guidanc e recommend s that

th e specia l agen t

make effort s t o obtai n reliabl e irtformado n rsgatdln g tiw violator' s siz e an d financia l conditio n fo

r revie w prio r

t o di e issuanc e o

f aNotice
. Tlii s informatio n wil l b e transmitte dt o ch e lega l offic e fo

r consideration
. It

i s recognize dtha

c i t ma y no t alway s b e possibl e fo

r th e specia l agen t

and/o r attorne y t o obtai n reliabl e financia l informatio n o n aparticula r respondent , thac financia l circumstance s chang e an d tha t Informatio n may b e provide dafte r di e Issuanc e o

f th e Notic e tha t

may warran t furthe r consideratio n o

f a respondent' s abilit y t o pay . corporat e structure , busines s address , ofRcert
. numbe r

o f employees , an d gros s revenues . Z
. Th e Investigatin g agent provide s a" statemen t o r commen t withrespec t

c o di e financial Infotmallo n obtaine dbu t ordinaril y doe s no t

evaluat e ch

e financia l conditio n of

arespondtent

with respec t t o it s abilit y t o pay aprtipose d clv U penalty
. Th e investigatin g agenc' s statemen t shoul dencompas s area s suc h a s th e numbe r

o f employees , gnjs s revenues , an dnatur e o

f busines s o f

th e violator
. 3
. FA A legal counse l review s th e financla J Informatio n provide di n th e EI Ran devaluate s it s sufficierjcy an d relevanc e t o th e recommende dcivi l penally
. Lega

l counse l ma

y determin e i f mor e curren t

informatio n exist s concernin g th e financia l conditio n o f a responden t

an di f cha c Informatio n substantiall y differ s fro

mch e informatio n availabl e a

t th e time of preparatio n o

f th e EI RI f ther e I s abasi s fo r determinin g that

(h e recommende d sanctio n i s inappropriat e base dupo n Ch e financial iiiformatio n provide di n th e ElR, th e recommende dsanctio n I s adjuste dprio r

t o Issuanc e o

f th e Notic e o f Propose dCivi l Penalty , Thi s I s a preliminar y consideratio n o f a company' s abilit y t o pay . A s such , pre Notlc e adjustmen t

o f arecommende d civi l penaic y doe s not

preclud e furthe r MATRI X AN D DEFINITION S

[Rgui e 1 ] consideratio n of are."5po n dent' s financial claim s after

issuanc e o

f th e Notice
. 4 , If legal counse l determine s that a responden t

qualifie s a s asmal l bU5ine.<^ s aniity , cauTts^l ma

y conside r

that statu s unde r th e Smal l Busines s Regulator y Enfcrrremtm

t Fairn«s-Acr(SBREFA ) wit hrespec t

l o th e appropriatenes s o

f th e recommende dcivi l penally
. A

. respondent' s statu s a s asmal l busines s entit y may b e considere di n conjunctio n wit hanalysi s o f

th e scacucor

y factor:;
. B
. Con^ctiv e Actio n Th e mos t commo n "ocher

matter " tha

t che FA A take s int o consideratio n I s correctiv e action
. Correctiv e uctio n tha t result s i n mitigatio n i s remedial actio n cha t exceed s th e minimu mlega l requirements
. Th e primary tactot s i n determinin g th e aj^ropriat e arrKHin t o f penalt y reductio n arc th e e)rten c an d timin g o f th e cotrecdv c action , I

n othe r words , mitigatio n i s deccrmine do n th e basi s o f ho w muc hcorrectiv e actio n wa s take n an dho w quickl y th e actio n wa s cakor LSystemi c chang e intende dt o preven t future violation s shoul db e give n greater

consideration
. Similarly , correctiv e actio n that

commence s upo n ch e violator' s firs t

notic e o f th e vloJatto n ordinaril y I s give n greate r credi t tha n correctiv e actio n tha t

commence s onl y after th e Notic e o

f Propose dCivi l Penalt y ha s bee n Issued
. Mitigatio n o

f arecommende dcivi l penaic y base dupo n correctiv e actio n . shoul db e reference di n th e Notic e of Propose dCivi l Penalt y s o cha t th e responden c i s o n notic e tha t credi t alread y ha s bee n give n fo r ."ai daction
.

Offens e categorie s (
. Declsre d Shipment : 1
. Shippin g Paper s 2
. Label s 4
. Packagin g _ 5
. TralnlD g 6
. Emerg
. Respons e _ II
. Ondeclsre d Snipmen i Wlht n Haana l Quantit yLMteiionE : 1
. Shippin g Paper s ,., . 2
. Label s . A
. Packaglr> g 7
. ReleaE S ini o Enviro n _ 8
. Olhe r_.. . A
. Individua l

250-50 0 250-50 0 250-50 0 250-50 0 250-50 0 250-50 0 250-SO O 250-1.00 0 250-1.00 0 250-1,00 0 250-1,00 0 250-1,00 0 230-1,00 0 250-1.QO O B , BuBines E entit y

250-1.00 0 2SO-1.0O 0 250-1,00 0 250-1,00 0 260-1,00 0 2SC^-1,00 0 250-1.00 0 250-1,00 0 1.500-7,50 0 1.500-7.50 0 1,500-7,50 0 1.500-7.50 0 1.500-7,50 0 1.500-7.50 0 1,500-7,50 0 1,500-7.50 0 C , Busines s entit y

tha i use s O

f han dle s Haana l i n th e cours e o f t)UEl nes s 500-2,00 0 500-2,00 0 500-2,00 0 500-2,00 0 500-2,00 0 500-2.00 0 500-2,00 0 SOO-2.00 0 2.500-10,00 0 2500-10,00 0 2.500-10,00 0 2,500-10,00 0 2.500-10.00 0 2,500-10,00 0 2.500-10,00 0 2.500-10,00 0 D
. Busines s entit y

tha i regulai V oi lers , accepts , o r iranspori s Hasma i 1,000-5,00 0 1,000-5.00 0 1,000-5,00 0 1,000-5.00 0 1,0QO-S,00 0 1.000-5,00 0 1,000-5,00 0 1.000-5,00 0 S,000-1Z.OO O 5,000-12.00 0 5,000-12.00 0 5,000-12,00 0 5,000-12.00 0 5,000-12,00 0 5,000-12,00 0 5,000-12.00 005/05/201 1 15:4 9 FA X 202493514 2 FA A DM S 1008/01 0

1944 8 Federa l Regisler/Vol , 64 , No
. 76/Wednesday , Apri l 21 , 1999/Rule s an dRegulation s MATRI X AN D DEFlNmoNS—Continue d

(Rgur e 1 ]
Offens e calagorie s
III
. Ondedera d Shipmen t Hazma t Forbidde n on , o rcxceed E qt ylimit s tor , Passenge rAircraft ; 1
. Shippin g Paper s 2
. Label s 3
. Marking s 4
. Packagin g 5
. Traioln a - 8
. Emerg
. Resporis e 7
. Releas e Inl B Enviro n _ 8
. IMhe r IV
. Undeclare d Sriipmem t Foitiitlde n on , o rexceed s qt ylimit s (or
. Al l Airaan : 1
. Shippin g Paper s 2
. Label s 3
. Marlqng B
_ 4
. Packagin g 5
. Trainin g _ 6
. Emerg
. RaEpons e _ _ 7
. Releas e Int o Enviro n , 8
. Olhe r V
. InlBntlena l o rDeKtjcial cViolatio n A
. Individua l
500-5,000 500-5.000 500-5.000 500-5.000 50t>-S,bo O 500-5.00 0 500-5.OD 0 500-27,500 ' 500-27,500 500-27.500 500-27,500 500-27,50 0 500-27,50 0 500-27,50 0 Consul t Lega l B
. Busines s entit y

5,000-15.00 0 5,000-15,00 0 5,000-15.00 0 5,000-15,00 0 5,000-15.00 0 5.0DO-15.00 0 5,000-15,00 0 3,000-15,00 0 7,500-27.50

0 7,500-27.50

0 7,500-27.50

0 7,500-27,50

0 7,600-27,50

0 7,500-27.50

0 7,500-27,50

0 7.500-27,50

0 Consul t Lega l C , Bueines e enlll y tha i use s o rhan dle s Harma t i n Bi e cours e o f buE k nes s 7,500-20,00

0 7,500-20.00

0 7.500-20,000 7,500-20,000 7,500-20,00

0 7.5O0-20.0O

0 7,500-20,000 7,500-20.000 10,000-27,50 0 10,000-27.50 0 10,000-27,50 0 10,000-27.50 0 l0,000-,27.50 0 10.000-27.50 0 10.000-27,50 0 1Q,000-:27,60 0 Consu H Lega l 0
. Busines s entit y

ina l regularl yot ters , accdple
. o r (ranspQit s Hazma t
10,000-27,50 0 10,000-27.50 0 10,000-27,50 0 IO.ODO-27,50 0 1fl.O0D-27,5D D 10,000-27,50 0 10000^7,50 0 10,000-27,50 0 15,000-27,50 0 15,000-27,50 0 15.000-27,50 0 15,000-27,50 0 15,000-27,50 0 15.000-27,50 0 15,000-27,50 0 15,000-27,50 0 Consul t Lega l

Ai rcarrie rar) d olhe raircraf t operato rviotslion s Failur e t o compl ywit h Pari s 171,172 , o r17 3 rcqulremenl G o f Ih e HM R a s a n offero ro f Hazma t Impropie racceptanc e o f Hazina t fo rai rttBrvsportallo n (i.e.
. quantily , labeling , maiVing , paelcaging , an d shippin g papers ) Sa e 4 9 CF R 17S,30(a ) {^)-^^ ) Failur e t o inspee l HaZTia l shipmen t propeiriy
. Se c4 9 CF R 175.3 0 (b)
. (c) , (d) , (e ) -... . Imprope rstorage/securin g o rHazma t at»ar d aircraf t Failur e t o pmvid cHazma t (raining , malnlai n record s o f trainrtg , o rmee t minimu m requirsmeni s lo r Hazirialtralnin g .'
. _ Failur e t o notil yFA Aproperl yo rinddeni/dlscrapancic s i n Hazma t fihipmem Failur e t o provid e notic e l o Ih o pilDl-in-commen d Othe rPar t USvipiaiion s _ ' < Us e (Ttai n Matrix
. £
. Gnju p I & I I ai r carrier s an d olhe r alrcral t operator s

0 ) 5,000-27.50 0 10.000-27.50 0 10,000-27,50 0 10.000-27,50 0 5,000-15,00 0 5,000'15,00 0 5.000-15,00 0 F
. Grou p II I & t V

ai rcarriar E an d othe r alrcra B operalQt s 2,500-15,00 0 5.00Ck-l5,00 0 5.OOO-15.OO0 5.000-13,00 0 1,000-5,00 0 1,000-5.00 0 1,000-5,00 0

Definition s (a ) Al f Carrie r aft dOthe r

Aircraf t Operato r Group s (I
. U , I E IV)—Ait carrier s an dothe r

aircrai t operator s ar e divide dint o tw o cateeorie s fo r purpose s o f determinin g a n appropriat e sanction , Thes e categorie s trac k

th e ai r carrie r group s establishe di n FA A Orde r No
. 2150.3A
. Appendi x 1
. Compliance / Enforcemen t

Bulleti n 92-1 , bu t

als o iridude s an y operato r

o f a n aircraf t cha c i s operate d"i n commerce " a s define di n th e Federa l hazardou s macerial s lavi
. includin g Part

129 Foreig n Ai r

Carriers , Pa n 12 5 OperaioK
. ar»dPart 9 1 Operators
. Grou p I i s comprise do f ai r carrier s an docher

aircraf t operator s wit h annua l operatin g revenu e o f J l 00,000,00 0 o r

more . Grou p II i s comprise do

f ai r carrier s an dothe r aircraf t operator.' ; tha c hol dPart

12 1 certificate s o r

hav e SOo r

mor e pilot s or operat e 2 5 o r

mor « aircrafC , withannua l operatin g revenu e o f les s tha n 1100,000.000
. Crou p II

I i s comprise dof ai r carrier s an dothe r

aircraf t operator s tha i d o no t

mee t th e criteri afo

r Crou p U wit h(1 ) 6 C

O "1 9 pilots , o r

(2 ) 6 t o Z 4 aircraft
. Crou p I

V i s compri.se do

f al l othe r ai r carrier s o r

aircraf t operator s no t meetin g th e critcrif

l for Croup s I , H
. orin
. (b ) Busines s £niity—Th e violato r i s a business , corporation , partnership , Sub

S Corporation , sol e proprlecor , association , or

an y typ e o

f conunercia l entity
. An individua l wh o offers a hazmat shipmen t

i n ai r transportatio n i n th e cours e of

his/he r self-owne d busines s fall s int o thi s category . Include s al l entitie.< ; define dunde r th e HMR' s definitio n of

•person. " (4 9 CF

R 1 7 l.S ) wit hth e excepdo n o f a n individua l a s define dherein
. (c ) Busines s Entity cha

t Ragularl y Offers , Accepts , o r

Transporrx Hazardou s Material s i n th e Cours e o f it s Business.—^

A manufaaure r

o r distributo r

o f Hazmac fall s int o thi s category . A freight

forwarde r

woul dals o fal l int o thi s category , Th e aspec t o f
. "regularly " offerin g cover s abusines s endt y tha t

offers Hazmat

wit hsom e anticipate dfrequenc y o r

purport s t o d o so , e.g. . acatalogu e compan y tha t offer s hB73rdou s materia l t o It s customer s woul dfal l Int o thi s category , eve n thoug hit s actua l sal e o r

transportatio n o f ch e Hazma c i s Irtfrequen t

o r limited
. (d ) Busines s Entit y ihti t

Uses , Handle s Karjna t i n th e Cours e o f

It s Business — Thi s fjitegor

y encompasse s th e busines.< ; tha i utilize s 1-Iazma

i i n it s busines s but doe s no r offe r i t fo r transportatio n o n a regula r basis , a s describe dabove
. Fo r example , amanufacture r

o f anon Hazmat produ athac ijse s Hazma c In th e manufacturin g proces s coul dfall int o thi s category . It

mus t b e establishe dtha t

### 05/05/201 1 15:5 0 FA X 202493514 2 

### FA A DM S 1009/01 0

Federa l Regisler/Vol
. 64
. No
. 76/Wednesday , Apri l 21 , 1999/Rule s an dRegulation s 1944 9 th e compan y ordinaril y doe s no t offe r th e Hazma t

i t utilize s for

cransporlation
. an d(h e shipmen t

i n thi s instanc e represent s an isolate dincident
. Thi s typ e o f busines s I s hel dt o ahighe r standar dtha n che busines s entit y tha i ha s n o regular

Involvemen t

w l t h Hazma LTh e desdibed-btisii'iea s entity" ' receive s th e subjec t

hazBrdou." ! materia l i n cransportuiio n an duse s it i n let business ; thus , i t

i s clearl y o n notic e o

f ch e hazardou s natur e o

f th e materia l an d th e regulator y requirement s t o whic h th e Hazmat

i s subject
. (e ) Declare dShipment—A declare d shipment , fo

r purpose s o

f thi s macrbc only , i s on e tha

c complie s wit hon e o r mor e o f ch e communicativ e requirement s of

ih e HMR, i.e. , i t

ha s markings , labels , and/o r

partially

correc t shippin g papers . A packag e cha t ha s shippin g paper s tha t

declar e lh e content s a s hazardou s materia l bu t i s otherwise'no t

mari^edo r

labele dfail s int o thi s cacegory . Similarly , aproperl y marke dan dlab^e dpackag e cha t lack s shippin g paper s als o fail s int o thi s category . A cas e fall s int o thi s categor y wher e ther e I s clea

r indicatio n that

th e offeror mad e som e atccmp c t o giv e notic e o f che hazardou s natur e of

th e shipment
. (f ) Forbidde n orEicceed s Quanar y Limit s fo r Passenge r

Aircraft—

A shipmen t

fall s int o thi s cacegor

y i f th e quantit y of

Hazmai pe r

packag e exceed s th e c{uancit

y limitation s fo

r passenger carryin g aircraf

t o r If ih e particula r hazardou s materia l i s forbidde n i n ai r transportatio n o n passenge r aircral L ( ^ Forbidde n o n o r

Exceed s Quantit y liniicsfu i All Alluaft—A shlpmei^ t will ' fall int o thi s categor

y i f th e quandi y o f hazardou s maierU l pe r

packag e exceed s th e allowabl e amoun t

fo r boi hpassenge r an dcarg o aircraf

t o r th e Hazmat

i s absolutel y forbidde n i n ai r tran^>onBCion
. (h ) Hazmat—

A "hazardou s material, " a s define di n 4 9 CF

R171.8 , include s an di s interchangeabl e wic hch e ter m "dangerou s goods , " a s use di n th e Internacional Civi l Aviatio n Organisatio n (ICAO ) Technica l Inscrucclons
. (i ) J'nd!ii'idijaI-~A

n individua l wh o offers ashipmen t

of hazardou s materia l i n his/he r persona l capacity withou t an y busines s purpose o r

a s part of a commercia l enterpris e o n th e par t o f th e Individual
. ( y Intentiona l o r

Deliberat e Violation—fi

i shipmen t

fall s Int o thi s categor y whe n ther e i s evidenc e tha t th e offeror , acceptor , ai r

carrier , o r

aircraf t operato r hadknowledg e o

f th e re<juirement s of

th e HM Ran dwlJlfiiU

y circumvente do r

attempte dl o RIS KCATECSORIE S [Figur s 2 ) circumven t ttvos e requirements
. Fo r example , a n oiTero

r wh o place s a properl y marke dan dlabele dHazma t shipmen t alon g wit hproperl y complete dshippin g papers , int o a n overpac k marke da s "printe dmaterial. " lia s commirce da n inienclona l o r dcUlJeface vtelotion
. Iivtiil s typ e o f case;— ch e invcscigatln g agent

shal l consul t wichFA A legal counse l an dfollo w agenc y guidanc e for

potentia l crimina l violation s of

th e HMR
. (k ) Undeclare dS/iipmcnr—Thi s i s a shipmen t tha c ha s n o indicatio n o

f it s hazardou s materia l concent s and/o r n o Indicatio n tha

c di e offeror communlcace dch

e hazardou s natur e o

f th e shipment s content s t o person s wh o accep t o r transport . (1 ) Within Hazma t

Quantit y LlmltatJoTjs-Th e amoun t o f hazardou s materia l I s withi n th e quanrity limitation s pe r

packag e a s establishe dI n ch e § 172.10 1 Tabl e (4 9 CF

R172.101 ) fo

r ch e typ e of aircraf t o n whic hth e shipmen t traveled
. Forea:ample , I

f ch e shipmen t wa s offere dfo

r transportatio n o n apassenge r

aircraft , th e quantit y o f hazardou s materia l wa s withi n th e establishe dlimi t

fo r cransporuiiio n b y passenge r aircraft
. I f

ch e shipmen t

wa s offeredfo r Lrarjsportatio n o n acarg o aircraft , th e quantit y llmifaiion s fo r carg o aircraf

t apply
.
Categor y"A " (Maximun i Weight ) Category"A " inaierial s ar e maierlal s Iha l whe n release d i n lh e contlne s » f a n altrraf l can peieniiall yhav e a cstastrophi ceffec t o n a n air craft' s abilit yl o continu e saf e fligiit , resulln g i n a ciast i e rerr^eiganc ylandin g causin g injuo ' o rdeat h t o passcngei s an d flightaew
. a s wel l s s person s o n at e ground
. Clas s 1 Exptestves : Divfelo n 1.1,1.2 , 1,3
. Clas s 2 - Compresso e Gase s W l 2.1 , 2. 2 vrll h SubsidiaryRis k 5.1 ' ar wAl l 2. 3 PI H Zone s A-D
. Clas e 3 Flammaol e Liquid E P G I
. II , an d (PIH)
. Clas s 4 Divisio n 4. 1 Flammabl e Solid s P G I , & (Matches)
. Divisio n 4. 2 Spontaneousl yCombjstibl e Maienal s P G I (Pyropboric)
. Divisio n 4. 3 Dangerou s Who n We t P G I
. Clas s 5 DMsk m 5. 1 Oxidizin g Liquid s an d Solid s P G I , H
. e.g. , "Cfiemica l Oxyge n Generators''
. DivisiuT) 5. 2 Organi cPer05(lde « P G I I (Typ e A
. 6 , C , o rD) , Clas s 6 , -.. - Divisio n 6. 1 Poisonou s Liquid s P G I (PW)
. aas s 7 Carg o Airergf t Onl yQuanlKic s o n Passai^ge rAlrcrsfl
. Clas s 8 CoriDaiv B li^alerla i Liqui d P G I art d (PIH)
. Forbidde n Material s (Se e 4 9 CF R 173.2 1 & ICAO Technica l InslrucUonB)
. Forbiddet t Hazma i Hale d I n Dangerou s Good s Tabl e 4 9 CF R 172.101
. Categor y"B " (Moderat e Weight ) Th e material s lisle d i n Categor y''B " ar e material s llia i ina yno t pos e a n immediat e threa t l o th e safet yo f a fllghl
. bu t can caus e deat h o rIn jur yt o person s du e I D unlnler>dd d relsBse s i n aircraf t cab h areas , an d potentia l damag e t o alrcral t structure s ove ra longe rperio d o f lim e <ju e t o undiscovere d release s o n alrcraf l Blructuta l componenlB
. Clas s 1 Clas s 3 Clas s 4 Qas s 5 Clas s e DiviBio n 1.4,1.S , 1.6
. Al l c:ompaliblllt y(atoupe
. P G II I Flarnrrtabi cLiquids
. Divisio n 4. 1 Flammabl e Solid s P G II , 111
. Divisio n 4. 2 Spontaneousl yCombustibl e Maierial s P G III
. Divisio n 4, 3 Dangerou s WTie n We t P G II , III
. Divisio n S. 1 Oxidizin g Liquid s o rSolid s P G III
. Divisio n 5. 2 Organi cPeroxide s (Typ e E
. F , G)
. Divisio n 6. 1 Poisonou s Liquid s P G I
. I I (NON-PIH)
. Divisio n 6. 2 Infectiou s Substances
.05/05/201 1 15:5 0 FA X 202493514 2 FA A • > DM S glOIO/01 0

1945 0 Federa l Regisler/Vol
. 64 , No , 76/Wednesday
. Apri l 21
. 1999/Rule s an d Regulation s RISKCATEGORIES—Continue d

(Figur e 2 J Clas s 7 

### Clas s e __ Radioactiv e f^alerlala , yello wlabe l 111 , yello wlabe l II , an d whil e labe l 1
. Liquid s P G II , II I SoM s P G 1 , II , III
. Categor y"C " (Minimu m WelshI ) Th e material s lisic d i n Calegor y" C ar a material s tha i ptvsen i th e ieastamounraCn B Clas s 2 Clas s 6 C^ass . 7 Clas s 9 2. 2 Nonnammabl e Gas
. Divisio n fl.1 Packin g tVou p Ml
. Al l othe rRA M (LSA , LT D QTY , Insinjment s an d ArUcles)
. MIscellanoou s Dangerou s Good s (ORM- D an d Consume rCommodity)
. Note : Thi s guidanc e I s no l Intende d t o replac e Ih e experience d judgmen t t o a specia l agen t wh o i s convinced , base d o n th e evidenc e an d fact s o f a case , tha t th e failur e o f a n ai rearner , shipper , iielgh l forwarder , o rpassenge rl o follov vestablishe d regulation s ha s poae d a risk t o aviatio n safety
. Issue di n Washingion
. D C o n Apri l 14 , 1999
. Jan e F
. Garvey , Admlnlstiaior
. [F RDoc , 99-99* 3 File d4-20-99 : 8:4 5 om ] aiLLIN O COD E 4»1«~1]- M SECURITIE S AM D EXCHANG E COMMISSIO N 1 7 CF R Part s 202,240,24 2 an d 24 9 [Releas e No
. 34~4i297 ; Fil e No
. S7-12-9B ] RI N 3235-AH4 1 Regulatloi > o f Alternativ e Tradin g Systems ; Technica l Amendmen t ACIENCY : Securiiie s an d Exchang e CDinniission
. ACTION ; Fina l rule : technica l amendmen t an drevise dcomplianc e date
. SUMMARY : Th e Securitie s an dExchang e Commi,";.'iiD

n i s modifyin g th e complianc e date s fo

r Rul e 30 1 (b)(3 ) an d makin g atechnica l chang e to Rul e 202,3
. Thes e an dodie r

Rile s an drul e amendment s relat e r

o th e regulatio n o

f alternativ e iradin g system s an d exchange s an dwer e publishe do n Decembe r 22
. 199 8 (6 3 F

R70844)
. Th e effectiv e dat e fo

r th e othe r rule s an d amendment s publishe di n 6 3 F R7084 4 remain s Apri l 21,1999
. excep t fo r th e effectiv e dat e fo

r § § 2 4 2.30 1 (b ) (5 ) (1 ) (D O an d(E ) an d§ § 242.30 1 (b)(6)(i){D) an d (E)
. whic hremain s Apri l I
. 2000
. DATES : Effectiv e Date : Apri l 21 , 199 9 fo r amendmen t

t o § 202.3
. Complianc e ^re ; Alternativ e tradin g system s mus t

compl y with S 242.301(b)(3 ) wit hrcsp«c t t o th e 5 0 securitie s liste di n Schedul e A b y Augu.<5 t 23
. 1999 ; wit hrespec t

t o th e securitie s liste do n Schedule s A an dB b y Septembe r

28
. 1999 ; wit hrespec t

l o th e securitie s liste do n Scbedtjle s A , B an dC b y Apri l 25 , 2000 ; an dwit h respec t t o al l securitie s b y Jun e 20 , 2000
. FO R FURTHE KINFORMATIO N CONTACT : ElizabethKing
. Senio r

Special Counsel
. a t (202 ) 942-0140
. Constanc e Klgglns , Special Counsel , a

t (202 ) 942-0059 , an d Kevi n Ehrlich
. Attorney , a i (202) 942

- 077S , Divisio n of

Market Regulation , Securitie s an dExchang e Commission , 45 0 Fift hStreet , N.W. , Washington
. D.C
. 20549-1001 , SUPPLEMENTAR

Y INFORMATION : I
. Backgroun d O n December

8 , 1998 , th e Securiae s an dExchang e CommlsiHpn ("Commission" ) adopte dne w rule s an d rul e amendment s t o allo w alcernarlv e tradin g system s t o choose , whethe r t o registe r a s naaona l securitie s exchanges , o r t o registe r

a s broker-dealer s an d compl y withadditiona l requirement s unde r Regulatio n ATS , dependin g o n thei r activitie s an dtradin g volume. ' Th e effectiv e dal e for

rnos i o f thes e ne w rule s an drul e amendment s i s Apri l 21
. 1999
. Th e Commissio n stale di n th e adoptin g releas e thai , prio r t o Apri l 21 , 1999
. i t woul dpublis halis t

o f thos e securitie s wit hrespec t

t o whic h alternativ e tradin g system s mus t compl y wit hRule 30 1 (b)(3 ) o n Apri l 21 , 199 9 an dthos e securitie s wit hrespec t ro whic halternativ e tradin g system s mus t compl y Wit

hRul e 30 1 (b)ri ) o n Augus t 30,1999
. Rul e 301(b)(3 ) require s a n alternativ e tradin g syste mt o provid e t o anationa l securitie s exchang e o r nationa l securitie s association , fo r Inclusio n i n th e publi c quotatio n system , th e price s an dsize s o f li s bes t price dbu y an dsel l orders , that are displBye dto mor e tha n on e person , i n eac hcovere dsecurit y i n whiic hth e alternativ e tradin g syste mrepresent s 5 % o r more o f th e total tradin g volume.''

- 1 S«eur>t> M Exchang e Act

Reln w No
. 40T« 0 (D« c B
. IS9B)
. S 3 F 9 70«4 4 (Dec
. IZ
. I99B)
. 'irCFRZlZ.SOl(D)(3) , Forpurpexeso r KegulaUon s ATS , » "ccvcrc dsecurlij' " Include ! «1 1 excltange.lIHtd
. Nuda qN M securiUes
. an dNuda q Smal l Ca p lecudllea , orht r

chm i dot i an d convHlibl e ncurltlu , Sae Rul e 1|AC1-1(B1(E) , I V II , Dela y o

f th e Complianc e Date s for Rul e 30 1 (b)(3 ) On e majo r alicrnativ e tradin g .-fyste

m ha s indicate dthat

i t wil l b e unabl e t o compl y withth e requirement s of Rul e 30 1 (b)(3 ) by th e origina l complianc e date s withou t

puttin g th e operatio n o

f ii s syste ma

t seriou s ris k

o f failure
. Th e operationa l failur e o

f amajor alternativ e tradin g syste mcoul dInicifcre wit hthe
. market s a s awhole
. Accordingly , th e Commissio n believers i t

necessar y l o a4jus t th e complianc e date s fo

r Rul e 30 1 (b)(3 ) a s follows : Augus t 23
. 1999 : Complianc e wit h Rul e 301(b)(3 ) wltl i respec t t o th e 5 0 Nasdaqsecuritie s liste do n Schedul e A
. attache di n [h e appendi:it
. Septembe r

28 , 1999 : Complianc e vidd ^ Rul e 30 1 (b)(3 ) for

th e 50 % o

f Nasda q securitie s liste do n Schedule s A an dB , attache dIn th e appendix
. Apri l 25
. 2O00 ; Complianc e wit hRul e 30 1 (b ) (3 ) fo r th e 75 % o

f Nasdaq securide s liste do n Schedule s A , B , an d C , attache di n th e appendix
. Jun e 20 , 2000 : Cranplianc e withRul e 301(b)(3 ) fo

r al l Nasda qsecurities
. Schedule s A , B
. an dC were create d b y rankin g al l covere d.lecurltle s trade d o n Nasda qb y ihcl r

Januar y 199 9 volume , an dIncludin g a n equal numbe r o f securitie s fro

meac hdecile
. Som e securitie s that

wer e not trade do n Nasda qi n Januar y 199 9 ma y commenc e Iradin g o n Nasda qsubsequently , Alternativ e tradin g 5y5Cem. s ma y wai t unti l Jun e 20 , 200 0 to compl y wit hRul e 301(b)(3 ) wit hrespec t

t o thes e securities
. Al l othe r complianc e date s fo

r th e rulE S an drul e amendment s adopte dlas t Decembe r remai n th e same . Th e Commissio n encourage s thos e alternativ e txadln g system s tha t ar e abl e t o compl y wit hRul e 30 1 (b)(3 ) o n Apri l 21
. 199 9 t o d o so . CF R240.llAcl-r(a)(6) l Rule30e(fi) , 1 7 CF R 242.S00(g)
.