06/23/201 0 10:3 8 FA X 202493514 2 FA A • > DM S glOOI/02 4

UNIlE D STATE S DKPAR' I MEN T O FTRANSPORTATIO N FEDERA LAVIATIO N ADMINISTRATIO N

WASHINGTON , D C I n th e Matte r

of ; ATLA S FRONTIERS . LL C F A AOrde r

No . 2010-1 0 Docke Lm . CI'07NM000 9 FDM S No . Served ; FAA-2007-0123 ' Jun e 16,201 0 DECISIO N AN D ORDER S Responden t

Atla s Frontiers , LL C (]"Atlas" ) ha s appeale dth e writte n initia l decisio n o f

Administrativ e Law Judg e ("ALJ" ) Richar dC . Goodwin ^ assessin g Atla s a civi l penall y o f

$12,00 0 for

t i numbe r o f violations' ' o f

th e Departmen t

o f Transporlalio n ("DOT" ) Hazardou s Material s Regulation l ("MMR" ) (4 9 C.F.R , Part s 171-178) . Thi s decisio n denie s Atlas' s appea l an dassesse s a$12,00 0 civi l penally . 1 . Fact s Atla s i s a n equipmen t

broke r in Boise , Idaho , (Exh . C-12. ) Usin g mainl y eBay , a n onlin e auctio n Web site , Atla s manage s th e auctio n o f item s for companie s that

d o no ! hav e tim e t o sel l th e item s themselves . (Ti" . 114-16 ; Exh . C-9. ) Atlas' s customer s Material s file

di n the FA A Hearing Docke

t (except fo r material s file

di n .securit y cases ) ar e als o availabl e fo

r viewing a t hnp.V/www.regulalions.gov . ?.., , Th e Adminislrator' s civil penalt y decisions , along wit

hindexe s o

f th e decisions , th

e rule s o f practice , an

dothe r information , ar

e availabl e o

n the Interne

t a t th e following address : hitp://Jaa.goWaboui/oJficej^rg/headqucu'i<irsJj:jSfices/agc/pol_adJudicaiioti^^ Fenalty . I n addition , Thomso

n Reuters/Wes i Publishing publishe s Federa l Aviation Decisions . Finally , th e decision s ar

e availabl e throughLliXI S (TRANS library ) an dWestLa w (FFRAN-hA

A database) . Fo r iidditionu l inrormaiion , se e the We

b site . ^ A cop y o f the ALJ' s initia

l decision datedDecembe

r 17 , 2008 , i.

s attached . ' ' The violtition s foun

db y the AL J ar e listedi n hi s "Orde

r o n Remand, " servedo

n Augu.s i 20 , 200 9 (attached) . The tex

t o f th e regulation s tha

t the A U foun

dAtla s violatedar

c includedi

n the Appendix t

o thi s decision . ip 4 06/23/201 0 10:3 8 FA X 202493514 2 FA A+ DM S @l002/02 4

includ e hospitals , offices , an drenta l an dconstructio n equipmen t companies , (Id. ) Atlas' s owner , W . Maso n Fuller , testifie dtha t Atla s i s aver y smal l company , Mit h onl y afe w employees . (Tr . 115. ) I t make s betwee n 20 0 an d30 0 shipment s pe r month . (Exh . C-12. ) Atlas' s We b sit e state s tha t it manage s al l packing . (Exh . C-9 ; Tr . 72. ) O n o r abou t Jun e 1,2007 , an Atla s employe e i n Bois e brough t afibcrboar dbox . for groun dshipmen t

t o DHL , an expres s courie r service . (Tr . 126 ; Exh , C- 8 at 1. ) Althoug hth e shipment' s ultimat e destinatio n wa s Lawton , Michiga n (Exh , C- 2 at 2) , tli e shipmen t /le w first t o Sal t Lak e City , wher e DHI - employee s discovere dtha t it wa s emittin g gasolin e fiune s an dwa s leakin g (Tr . 23 , 52) . DH Lcalle dUS A Environmental , aremediatio n company , t o clea n u p th e environmenta l hazard . (Tr. . 20 , 23, ) Kirk SlauITer , apartne r

i n US A Hnvironmcntal , responded . (Tr . 20 , 23 ) H e testifie dtha t ga" 3 fiime s wer e i n th e air . (Tr . 24 , 33, ) H e saw tha t gas , water , an doi l wer e leakin g ou t o f th e piec e o f

equipmen t

i n th e box . (Tr . 24 , 34 , 35-36. ) H e observe dan engin e withapum p attached . There wer e brcfither hole s i n th e engine' s ga s cap fro mwhic hth e gasolin e wa s leaking . (Tr . 24 , 35. ) Abou t 8 ounce s o f gasolin e ha dspille dout , accordin g t o tli e "Hazardou s Material s Inciden t Report " submitte db y DH Lt o DOT' s Researc han dSpecia l Program s Administratio n CRSPA) . (Exh . C- 2 at

2. ) Slauffe r

testifie dtha t

ther e wer e n o hazardou s material s label s o r marking s o n th e bo x (Tr . 29 , 40-41) , an dn o absorben t materia l use dfo r

packagin g liqui d hazardou s material s (Tr , 27) . StauiFer pu t th e engin e withth e attache dpum p i n a55 - gallo n dru man dseale dit . (Tr . 25. ) Th e bo x wa s discarded . (Tr . 97. ) Jame. s E . Berk

i s th e FA A hazardou s material s specialis t wh o investigate dth e incident . (Tr . 45,47. ) H e wen t t o DH Lan dobserve dth e engin e an dpum p (Tr . 47-48) ,OG/23/201 0 10;3 8 FA X 202493514 2 FA A* DM S §1003/02 4

bu t th e bo x ha dalread y bee n discarded . Or . 97. ) Berk too k photograph s o f

th e engin e an dpum p an dconducte dinterviews . (Exh . C-5 , C-6 ; Tr . 48. ) Berk testifie dtha t

th e prope r

shippin g nam e o f

th e engin e wa s "Engine , interna l combustion , flammable liqui dpowered, " an dth e correc t identificatio n numbe r

for i t wa s "UN3166. " (Tr . 62-63 ; se e als o 4 9 CF.R , § 172.101 , Hazardou s Material s Table. ) I t require daCLAS S 9 labe l o r placard . (Tr . 63 ; Sectio n 172,560, ) A s for th e gasoline , it s prope r

shippin g nam e wa s "Gasoline, " (Sectio n 172.101 , Hazardou s Material s Table, ) Berk testifie dtha t

it s identificatio n numbe r wa s U N 1204 , an dtha t i t belonge di n Packin g Grou p U , Clas s 3 . (Tr . 67. ) Berk testifie dtha t

ther e wa s abou t aquar t o f ga s lef t i n th e tan k

whe n h e observe dit . (Tr . 68. ) Th e prope r labe l i s a re dFLAMMABL ELIQUI D label . (Sectio n 172.101 , Hazardou s Material s Table ; Sectio n 172.419. ) Berk testifie dtha t

th e shipmen t

require dhazardou s material s labels , marking s (includin g orientatio n marking s t o preven t tippin g o n th e sid e an dleaking) , an dshippin g paper s (includin g emergenc y respons e information) . (Tr . 63-<56, ) H e als o testifie dtha t tiier e i s arequiremen t

t o purg e combustibl e engin e fuel tank s befor e shipment . (Tr . 69. ) Th e labe l indicate dtha t

Atla s wa s th e shipper . Th e labe l furthe r indicate dthat

i t wa s agroun dshipment , althoug hDH LExpress' s "Term s an dCondition s o f Service " indicate dtha t

DH Lma y carr

y it s parcel s b y an y mean s DH Lchooses , includin g air . (Exh . C- 4 at

1. ) Atla s di dno t

hav e acontrzic t

withDHL , bu t

instea dshippe dunde r

th e accoun t o f Flee t Stree t Courier s (Flee t

Street ) (Tr . 118) , acompan y owne db y th e fathe r o f Atlas' s owne r

(Tr . 126) .06/23/201 0 10;3 8 FA X 202493514 2 FA A• » DM S gl004/02 4

Berk testified , base do n aphotographi c exhibit , tha t ther e wa s asmal l orang e envelop e i n th e botto mright sid e come r

o f th e box , bu t

tha t th e envelop e containe dth e packin g lis t

rathe r tha n ha2ardou s material s shippin g papers . (Tr , 98 ; Exh , C-19. ) Berk sai dtha t i f ther e hadbee n hazardou s material s shippin g paper,s , the y woul dhav e bee n offere dat th e Boise , Idaho , statio n an dwoul dhav e "travele do n apalle t notification, " (Tr . 109. ) llier e als o woul dhav e bee n asecon dcopy , becaus e on e cop y stay s wit hth e bo x an don e i s give n t o th e pilo t o f th e aircraft . (Tr , 109-110. ) Th e shippin g paper s mus t b e reUunet

l b y th e shippe r

for 2 year s an db y tli e ai r

carrie r fo r 1 year , (fr . 111. ) Ber

k wa s unabl e t o obtai n fromAtla s any indicatio n that ther e ha dbee n ashipper' s declaratio n o f hazardou s good s (Tr . Ill) , an dDH Lha dn o recordo f receivin g th e hazardou s material s shippin g document s (Tr . 110) . Atlas' s owne r

testifie dtliat

"[n]o t t o m y knowledge" : (1 ) di dth e bo x hav e an y hazardou s material s label s o r markings ; (2 ) wa s th e bo x accompanie db y haT-ardou s material s shippin g papers , includin g emergenc y respons e information ; an d(3 ) di dth e shipmen t hav e th e require dabsorben t materials . (Tr , 121-22. ) Ber k testifie dtha t

h e aske dAtla s t o provid e hazardou s material s trainin g record s fo r th e appropriat e individual s a t th e company , bu t

Atla s di dno t

respond , (Tr . 74. ) Fulle r state ddurin g th e investigatio n tha t h e ha dthre e employee. ^ preparin g shipments , bu t non e o f the mwer e traine din th e shipmen t o f hazardou s materials . (Exh . C-12. ) H e testifie dtha t

h e wa s th e onl y perso n i n th e compan y t o receiv e hazardou s material s training , whic hoccun'e d9 month s after th e inciden t

an dconsiste do f

watchin g a hazardoti s material s .slid e sho w o n th e DO T We b site , whic hhada"sel f test, " (Tr , 124, ) Fulle r testifie dtha t

a t th e time , Atla s di dno t

hav e hazardou s material s trainin g becaus e06/23/201 0 10;3 8 FAX 202493514 2 FA A+ DM S @l005/02 4

Atla s di dno t

slii p hazardou s materials . (Tr . 117. ) H e testifie dtha t i t wa s ane w ventur e fo r Atla s t o dea l withconstructio n renta l equipment , whic hh e implie dwa s mor e likel y t o contai n hazardou s material s tha n Atlas' s othe r type s o f shipments . (}d ) I LALJ' s Decisio n Th e AL J foi.m

dtha t Fulle r admitte dtha t

th e shipmen t

lacke dth e require d markings , labeling , an dothe r require dinformation . H e fuiihe r foun dtha t

Fulle r admitte d tha t th e engin e ha dno t

bee n draine do f

fue l an dtha t

shippin g personne l di dno t hav e hazardou s material s training , Unde r th e circumstances , th e AL J found , eac hallege d violatio n wa s proven . I t mad e n o differenc e to th e ALJ tha t Atla s ha doffere dth e shipmen t fo r groun d transportation . Th e AL J state dtha t Atla s was , o r

shoul dhav e been , awar e o f th e pos-sibijjt y tha t th e packag e woul dtrave l b y ai r becaus e th e contrac t

withDH Lspecifie d tha t DH Lma y Uanspori shipment s offere dfor groun dtransportatio n b y air . Regardin g th e sanction , th e AL J foun dth e following :

• Undeclare dshipment s o f hazardou s material s "ar e particularl y worrisom e becaus e the y constitut e asafet y threa t whos e magnitud e i s unknown. " (Initia l Decisio n at

3. )

• Th e dange r

wa s heightene dbecaus e th e ga s coul dhav e ignited , th e ga s ca p ha dahol e i n it , an dthei- e wer e n o orientatio n marking s t o decreas e th e likelihoo dtha t

th e bo x woul db e tilte dar» dth e ga s spilled .

• Ther e wa s alea k

o f th e hazardou s material , whic hi s an aggravatin g factor .

• Atla s i s abusines s tha t use s haz^dou s material s i n th e cours e o f it s business , Nothin g suggeste dtha t th e shipmen t

"wa s uniqu e o r

unusual , or inconsisten t

withAtlas' s holdin g itsel f ou t a s a n equipmen t

broker, " (Initia l Decisio n at

4. )

• Fve n thoug hAtla s di dno t kno w abou t

th e requirement s fo r

hazardou s material s transportation , th e fac t that violation s wer e unintentiona l doe s no t mitigat e a n otherwis e rea,sonabl e sanction .06/23/201 0 10:3 8 FA X 202493514 2 FA A* DM S @l00G/02 4

• Regardin g correctiv e action , Fuller' s watchin g aslid e show , produce db y DOT , 9 month s after

th e incident , eve n i f

true , wa s no t

timel y an dwa s no t rigorous an dthoroug henoug ht o b e mitigating .

• Atlas' s -Status a s afirst-lime violato r wa s no t mitigatin g becaus e a violation-fi-e e history i s th e norm ,

• Atla s di dtio t

substantiat e it s clai mtha t th e propose dsanctio n o f .S I 2,00 0 woul dforc e i t

ou t o f business , Fo r al l o f thes e reasons , th e ALJ decide dt o asses s a$12,00 0 civi l penalty , th e amoun t propose db y th e agenc y attorney , i n . Atlas' s Appea l A . Rc^la r

Cours e of

Busines s O n appeal . Atla s argue s that th e sanctio n i s to o hig hbecaus e Atla s doe s no t shi p hazardou s material s i n th e "regular cours e o f

business, " Further , i t

claims , les s tha n 0.1 % o f it s shipment." ! are hazardous . Thi s argumen t i s rejecte dbecause , a s explaine dbelow. , th e civi l penalt y propose db y th e agenc y attorne y an dassesse db y th e AL J i s appropriat e unde r agenc y sanctio n guidanc e to r a n entity lik e Atlas . Th c FAA' s sanctio n guidanc e i n hazardou.* ? material s case s set s fort hsanctio n range s for

severa l categorie s o f

busines s entities . (6 4 Fed . Reg . 19443,1944 7 (Apri l 21 , 1999) ; FA A Orde r

No . 2150,3 A a

t 14 , Figur e 1. ) Th e sanctio n range , pe r violation , fo:

r a "busines s entity " i s $1,500-7,500 , whil e th e sanctio n rang e for a"busines s entity tha t

use s o r handle s Hazma t

i n th e cours e o f

business " i s $2,500-10,000 . Th e sanctio n rang e for a "busines s entit y tha t

regularl y offers , accepts , o r transport s Hazmat " i s $5,000-12,000 . I n thi s case , th e agenc y selecte dth e sanctio n rang e fo r a"busines s entity " - i.e. , $1,500-7,500 . Th e agenc y the n multipUe dseve n violation s (shippin g papers , labels , markings , iraining , packaging , emergenc y respons e information , an dreleas e int o th e06/23/201 0 10;3 8 FA X 202483514 2 FA A• » DM S 0007/02 4

environment ) - b y th e botto mo f th e range , $1,500 , yieldin g $10,500 . (Tr . 92. ) Th e agenc y als o multiplie dth e seve n violation s b y th e to p o f

th e range , $7,500 , yieldin g $52,500 . (Jd. ) Afte r

factorin g in othe r

require dconsideration s usin g th e sanctio n guidance , th e agenc y propose dapenalt y o f $12,000 , whic hwa s nea r th e lo w en do f

th e rang e fo r thes e violation s b y a"busines s entity. " Th e AL J impose dth e FAA' s propose d penalty o f

$12,000 . I n contrast , th e lo w en do f th e penalty rang e pe r

violatio n for

"busines s entit y tliat use s o r handle s Hazma t

i n th e cours e o f

business " i s $17,50 0 (seve n violation s x $2,500 ) an dth e lo w en do f

tli e rang e for

"busines s entit y tha t

regularl y offers , accepts , o r transport s Hazmat " wa s $35,00 0 (seve n violation s x $5,000) . Th e $12,00 0 assesse dby th e AL J wa s belo w th e rang e for thes e tw o categorie s o f

busines s entitie s an dwa s withi n th e rang e fo r

asimpl e "busines s entity. " Tlius , contrar y t o Atlas' s argument , th e AL J di d no t asses s ahighe r

penalt y for

abusines s tha t

ship s hazardou s material s i n th e "regula r cours e o f business. " D . Shippin g Paper s Atla s argue s that

i t i s unclear

whethe r ha/saidou s material s shippin g paper s accompanie dtli e shipment , give n tha t th e bo x wit hit s attache dpouc hwa s destroyed , Therefore , Atla s contends , th e agenc y attorne y di dno t sho w tha t

Atla s committe dth e violation s relate dt o shippin g papers, ^ Atla s point s ou t tha t th e remediatio n company' s

^ Thes e include th e following :

• Section 171.2 , whic

hprohibit s person s fro

moffering ahazardou s materia l fo r transportatio n i

n commerc e unles s th e hazardou s materia l i s properl

y classed , described , etc. ; • Section 172.200 , whic

hrequire s adescriptio n o

f th e hazardou s materia

l o n th e shippin g paper ; • Section 172.202 , vnhic

hdetail s wha

t must b e includedo

n th e haitardoois material s ."ihippin g papers ; an

d06/23/201 0 10:3 8 FA X 202483514 2 FA A^ DM S gl008/02 4

personne l an dth e special agen t wh o investigate dth e cas e di dno t ope n th e envelop e attache dt o th e box . A s note dabove , whe n aske dat th e hearin g whethe r

ther e wer e hazardou s material s shippin g papers . Atlas' s owne r responded , "No t

t o my knowledge. " (Tr . 121 - 22. ) Th e specia l agen t

testifie dthat

th e envelop e attache dt o th e bo x woul dhav e containe donl y th e packin g list . A s th e specia l agen t testified , if

ther e ha dbee n hazardou s material s sliippin g papers , ther e woul dhav e bee n tw o copie s - on e attache dt o th e box , an don e give n t o th e pilot . (IT . 109. ) Furdier , bothAtla s an dDH Lwer e require dt o kee p copie s o f th e hazardou s material s shippin g papers , bu t neithe r wa s abl e t o produc e any . (Tr , 98 , 110, ) Unde r th e circumstances , th e FA A successfull y me t it s burde n o f

provin g tha t

ther e wer e n o shippin g papers , C . Marking s Atla s als o argue s tha t

i t wa s unclea r

whethe r th e require dmarking s wer e present , bu t whe n aske da t

th e hearin g whethe r

ther e wer e an y hazardou s material s markings , Atlaa' aowne r

responded , "No t

t o my knowledge, " (Tr . 121, ) Further , th e markings , includin g th e orientatio n arrows , woul dhav e bee n visibl e on th e bo x an dStauiFer , wli o wa s firs t o n th e scen e an dwh o cleane du p th e spill , di dno t observ e an y marking s o n th e box , (Tr . 41. )

• Section 172.600(c) , whichrequire s emergency respons e informatioii t o be o n th e hazardou s material s shippin g papers . 806/23/201 0 10:3 8 FA X 202483514 2 FA A• > DM S 1009/02 4

D . Carrie r

Violation s Atla s argue s tha t

th e AL J improperl y foim dviolation s o f

Sectio n 172.30 0 an d 172.602(c) , which , i t

argues , appl y onl y t o carriers , an dAtla s i s no t acarrier . Whil e paragrap h(b ) o f

Sectio n 172,30 0 applie s t o caixicrs , paragrap h(a ) applie s t o a"person. " Sectio n 172,300((a ) provide s a s follows :

(a) Eac hperso n wh o offer s ahazardou s materia l for transportatio n shal l mark

eac hpackag e .. . containin g th e hazardou s materia l i n th e manne r require db y thi s subpart . Atla s i s a"person " a s tliat teii n i s define di n 4 9 C.F.R . § 171. 8 ("person").' ' A s for Sectio n 172.602(e) , i t

applie s b y it s ow n term s onl y t o carrier s an d t o operator s o f

facilitie s wher e ahazardou s materia l i s received , stored , o r handle d durin g transportation, ^ Atla s doe s no t com e withi n any o f

tlies e categories . Thus , th e AL J erre din finding aviolatio n o f Sectio n 172.602(c) , becaus e Atla s i s neithe r acarrie r no r afacility operator. "

^ "Person, " under

4 9 C.F.R . § 171.8 , "mean s a n individual , corporiition , company , association , firm, partnership , society , join t stoc k company ; o

r agovernment , India

n tribe , o r authorit y o f a governmen

t o r trib e offering ahazardou s materia l fo r transportatio n i

n commerc e o

r transportin g ahazardou, s materia

l to suppor

t acommercia

l enterprise. "

' Sectio n 172.602(c ) provide s u a follows : (c ) Emergency respons e information .<:hal l be maintaineda s follows : (1 ) Carriers . Eac

hcarrie r wh o transport s ahazardou s materia l shall maintain th e inlbmoation specifiedi n paragraph(a

) o f thi s sectio n an

d§ 172,60 6 o f thi s paj t i n th e sam e manne r a s prescribedfo

r shippin g paper s ,.. . (2 ) Facilit y operators . Eac

hoperator o f afacilit y wher e ahay.ard()us materia l i s received , storedo

r handledduring transportation , shal l maintain th e information requiredb

y paragraph(a ) o f

thi s section wheneve

r th e hazardou s materia l i s presen t

' N o adjustmen

t i n th e civil penalt

y i s wairanie ddue t

o thi s error

becau.se Atlas' s violation s still fal l within tli e sam

e basi c categorie s o

f shipping papers , labels , markings , training , packaging , emergency rcapons e information , an dreleas e int

o the environment . AlihoughSection 172.602(c ) was inapplicable , th e agency allegw daviolatio n o

f Section 172.600(c ) pertainin g t o emergency respons e information , andSection 172.600(c ) appliedto Atlas .06/23/201 0 10:3 8 FA X 202483514 2 FA A* DM S 0010/02 4

Th e AL J properl y foun dtha t Atla s violate dSectio n 172.600(c)(1 ) b y iailin g t o provid e emergenc y respons e information . Sectio n 172,600(c)(1 ) require s an y perso n wh o offer s hazardou s material s fo r transportatio n t o provid e emergenc y respons e information , {Se e 4 9 CF.R . § 172.600(b) , addressin g applicability. ) E . Chang e i n Transportatio n Mod e Atla s argue s tha t

i t di dno t hav e notic e tha t

DH Lmigh t

chang e th e mod e o f transportatio n fromgroun dt o ai r becaus e Atla s wa s shippin g unde r Flee t Street' s contrac t withDHL. ' Therefore , i l contends , an y penalt y scale s applie dt o i t shoul db e for groun dtransportatio n rathe r tha n for ai r transportation . Assuming , for

th e sak e o f

argument , tha t

Atla s lacke dnotic e tha t

DH Lmigh t chang e th e mod e o f

transportatio n Ixo

mgroun dt o air , i t

woul dno t

mak e adifference . Th e regulation s a t

issu e appl y t o transportatio n b y groun da s wel l a s b y air , an dth e penall y woul db e n o lowe r i f th e engin e ha dbee n shippe db y ground . Th e Pipelin e an dHazardou s Material s Safet y Administratio n ("PHMSA" ) (foimerl y RSPA) , a n agenc y o f DOT . ha s publishe dsanctio n guideline s for th e transportatio n o f

hazardou s material s b

y ground , Thes e guideline s appUe da s o f Octobe r 1 , 2005 , an dwer e in effec t at th e relevan t

time . (4 9 C.F.R , Part

107 . Subpart

D , Appx . A a t

4 3 (2007) ; Exh . C-1 5 a t 3. ) A s th e agenc y attorne y pointe dout , PHMSA' s baselin e assessmen t

for a n imdeclare dshipmen t

i n groim dmod e i s $ 15,000 , $3,00 0 highe r than th e penalt y assesse di n th e iastan t case . (4 9 CF.R . Part

107 , Subpart

D , Appx . A at

43-44 ; Exh , C-1 5 a

t 3-4 ; Tr , 94. ) PHMSA' s baselin e assessmen t to r th e leak

' DHL' s "Term s an

dConditions " fo

r Groun dServic e defin

e "shipment " to include al l parcel s tha t "ma y b e carriedb

y an y mear u DH Lchooses , includin g air , road , or an y otho r carriei, " (FA

A Exh , 4 ; emphasi s added, ) 1 006/23/201 0 10:3 8 FA X 202483514 2 FA A^ DM S ElOII/02 4

alone , give n tha t

th e gasolin e wa s i n Packin g Grou p II , woul dbe $9,000 . (4 9 C.F.R . Par t 107 , Subpart

D , Appx . A at

45 ; Exh , C-1 6 at

5 ; Tr . 95. ) Thus , a.ssessin g asanctio n base do n tli c guideline s for groun dtransportatio n woul dno t yiel dalowe r

penalty , F . Histor y o f

Violation s Atla s argue s tliat

th e sanctio n i s to o high , i n part , becaus e i t doe s no t hav e a histor y o f violations . A s state di

n previou s cases , aviolation-fi-e e histor y "i s no t a mitigatin g factor , becaus e aviolation-fre e histor y i s considere dth e norm. " Interstat e Chemica l Co. . Inc. . FA A OrderNo , 2002-2 9 a t 1 7 (Decembe r

6 , 2002);se e als o TC I Corp. . FA A Orde r

No . 1992-7 7 at

2 0 (Decembe r

22 , 1992 ) (t o th e sam e effect) . A histor y o f prio r violation s woul db e a

n aggravatin g factor . Interstat e Chemica l Co. , FA A Orde r

No . 2002-2 9 a

t 17 . Th e AL J eoirectl y rejecte dAtlas' s violation-fre e histor y a s amitigatin g factor . G . Financia l Hardshi p Alia s argue s that

i t doe s no t earn enoug ht o pa

y th e penalty . I t

state s tha t

i t i s a youn g compan y an dtha t th e penalty woul dreduc e Atlas' s owner' s incom e t o zer o for 2 year s an dwoul dcaus e Atla s t o ceas e busines s operations . Financia l hardshi p an dinability t o pay ar e affirmativ e defense s that th e responden t

ha s Iho burde n o f

provin g b y apreponderanc e o f th e reliable , probative , an d substantia l evidenc e i n th e record . Giuffridft , FA A Orde r No . 1992-7 2 a

t 2 (Decembe r

21,1992) , citin g 1 4 CF.R . § 13.224(c ) ("[a ] party wh o ha s asserte dan affirmativ e defens e ha s th e burde n o f provin g th e affirmativ e defense") ; se e als o ScenJ c Mountai n Air , Inc. . FA A OrderNo . 2001- 5 at 13-1 4 (May 16 , 2001 ) (Responden t "bor e th e burde n o f

provin g it s clai mo f

financial hardship") , A responden t bear s th e burde n o f

1 106/23/201 0 10:3 8 FAX 202483514 2 FA A^ DMS @]012/02 4

proo f becaus e it s financial record s ar e withi n it s sol e control . Seven' s Pain t & Wallpajy r Co. , FA A OrderNo . 2001- 6 a t 5 (May 16 , 2001) , quotin g Giuffrida . FA A OrderNo . 1992-7 2 at

2 . Th e onl y evidenc e i n th e recor do f financial hardshi p an dinabilit y t o pa y i s th e self-servin g testimon y o f Atlas' s owner . Atla s di dno t provid e an y supportin g docmnentatio n suc ha s ta x records . Unde r th e circumstances , th e AL J di dno t err i n finding tha t

Atla s faile dt

o bear it s burde n o f

provin g financial hardshi p an dinabilit y t o pay . H . Correctiv e Actio n Regardin g correctiv e action . Atlas' s owne r testifie dtha i 3 month s befor e th e hearing , h e too k

trainin g consistin g o f

ahazardou s material s slid e sho w o n th e DO T "Wi'e b site , (Tr , 123. ) H e testifie dtha t h e wa s th e onl y on e a

t Atla s doin g shippin g at

th e time . (Jd. ) H e di dno t

hav e copie s o f

th e trainin g record s wit hhi mat th e hearing . (Tr . 122. ) Th e AL J hel dthat

i f true , th e Uaining , whic hdi dno t tak e plac e unti l 9 month s after th e incident,' " wa s no t

timely , rigorous, o r

thoroug henoug ht o b e mitigating . Atla s argue s lliat

tli e Irainin g a

t issu e shotJ db e acceptabl e give n tha t DO T offer s th e slid e sho w o n it s We b site . Atla s als o argue s tha t Sectio n 172.702 , whic hcontain s th e requiremen t

tliat hazardou s material s employer s ensur e tha t eac ho f thei r hazardou s material s employee s i s traine di n accordanc e wit hth e hazardou s material s regulations , doe s no t indicat e a"preferenc e for rigo r o r venue, "

' " Th e inciden t

occuire din Jun e 2007 , an dth e hearin g too k plac e abou t

ayea r later , i n Jun e 2008 . Thus , i f Atlas' s owne r

wa s no t traine dunti l 3 month s Iwforc th e hearing , h e wa s no t traine dunti l approximatel y 9 month s after th e inciden t 1 206/23/201 0 10:3 8 FA X 202483514 2 FA A• > DM S §1013/02 4

Unde r certai n circumstances , correctiv e actio n may b e considere di n settin g th e civi l penalt y amount . Tovot aMoto r Sales . USA . Inc. , FA A Orde r No . 1994-2 8 at

9 (Septembe r

30 , 1994) . citin g TC I Corp. , FA A Orde r No . 1992-7 7 at

2 1 (Decembe r

21 . 1992) . Althoug hth e Federa l hai:ardou s material s statut e [no w at 4 9 U.S.C . § 5123(c)(3) ] doe s no t specificall y mentio n correctiv e actio n a s afacto r t o consider , i t

ma y b e considere dunde r

th e categor y o f

"suc hothe r

matter s a s justic e ma y require, " Seven' s Pain t & Wallpaper.Co. . FA A Orde r No . 2001- 6 at

6 , citin g Phillip s Buildin g Supply , FA A OrderNo , 2000-2 0 at 9 n.l O (Augus t

11 , 2000) , reconsideratio n denied , FA A Orde r No , 20O0-2 7 (Decembe r

21,2000) , citin g TCLCOTE ^ FA A OrderNo . 1992-7 7 a t 21 . Swift , comprehensive , an dpositiv e correctiv e actio n warrant s reductio n o f an otherwis e appropriat e civi l j^enalty . Whitley , FA A OrderNo . 2009- 4 a t 2 1 (January 14 , 2009) , citin g Detroit-Metropolitan-Wavn e County Airport . FA A Orde r No . 1997-2 3 at

5 (Jxm e 5 , 1997) . "Positive " mean s actio n to preven t future violations . Whitley . FA A OrderNo . 2009- 4 a

t 22 . Training , generally , constitute s apositiv e actio n sinc e i t i s designe dt o preven t

future violations.' ' Bu t

i n thi s case , th e trainin g wa s no t switl , an d unde r 4 9 C.F.R . § 172,702(a) . Atla s shoul dhav e accomplishe dth e trainin g befor e th e shipment . Se e FA A Orde r No . 2150.3A , Appx . 6 a t 11 ; 6 4 Fed . Reg . 19443 , 1944 7 (Apri l 21,1999 ) ("Icjoirectiv c actio n tha t result s i n mitigatio n i s remedia l actio n Tha t exceed s th e minimu mlega l requirements") . Further , th e $12,00 0 civi l penalt y i s alread y at th e lo w en do f

lli e appropriat e rang e fo r thes e violation s b y abusines s entity lik e Atlas .

" TC I Coip. . FA

A OrderNo , l!>92-77 a

t 21-2 2 (one example o

f positiv e correctiv e action i s sendin g one' s employee s t o hazardou s material s training ; if Respondent

ba ddone so , i

t migh t hav e boo n entitle dt o areduction i

nit s penalty) , citedi

n Interstate Cliemlca

) Com.^Tnc . FA/\

i OrderNo . 2002-2 9 a

t 1 8 (Decembe

r 6,2002 ) (finding iha

l penalt y Vfa s appropriate , amon

g othe r things , i n ligh t o f Respondent' s sending it s employee fo r additiona l training) .* ; 06/23/201 0 10:3 8 FA X 202483514 2 FA A* DM S 0014/02 4

I n ligh t o f Ihe egregiousncs s o f

tli e violatio n - ahidde n shipmen t o f agasolin e engin e containin g gasolin e - th e penalt y shoul dno t b e an y les s tha n $12,000 , I n fact , a highe r penall y migh t

b e assesse di f

th e Administrato r

wer e no t constraine db y th e penalt y sough t b y th e agenc y attorne y i n th e complaint . Se c 1 4 C.F.R . § 13.]6(j ) ("|t]h e FA A decisionmake r

ma y asses s acivi l penalty bu t shal l no t asses s acivi l penalt y in an amoun t greate r tha n tha t sough t in th e complaint") . '^

Conclusio n Havin g foun dn o prejudicia l erro r regardin g th e violation s o r tli e sanction , thi s decisio n denie s Atlas' s appea l an dafiiim s th e $12,00 0 civi l penalt y assesse db y th e ALJ.'' ^ 'RANDOLP H BAnBH T ADMINISIRATO R Federa l Aviatio n Adminisfratio n

^ An y argument s no t

discussedhav e bee

n considered , rejected , andfoundunworth y o f discussion . ' ^ Thi s decisio n shal

l be considere da

n orde r assessing civil penalt

y unles s Responden

t file s a petition fo r review within 6

0 day s of servic e o f thi s decision wit

hth e U.S . Cour

t o f Appeal s for th e District

o f Columbi aCircuit

o r the U.S . cour

t of appeal s fo r th e circui t

i n whic hth e responden t resiidc s o r has it s principa

l plac e o f business , 1 4 C.F.R , § § 13,lC(d)(4) , 13,233(j)(2) , 13.23 5 (2009) . i'c e 7 1 Fed . Reg , 70460 (Dec . 5 , 2006 ) (regardin g petition s fo r review o f fina l agency decision s i

n civil penalt

y cases) . 1 406/23/201 0 10:3 8 FA X 202493514 2 FA A+ DM S 21015/02 4

APPENDI X Sectio n 171.2(e)' ^ provides : N o perso n ma y offer

o r accep t ahazardoti s materia l for transportatio n i n commerc e unles s th e hazardou s materia l i s properl y classed , described , packaged , marked , labeled , an di n conditio n for shipmen t

a s require do r authorize db y applicabl e requirement s o f thi s subchapte r

... . Sectio n 172.200(a ) provides ; Descriptio n o f

hazardou s material s required . .. . [E]ac hperso n wh o offer s ahazardou s materia l for

transportatio n shal l describ e th e hazardou s materia l o n th e shippin g pape r i n th e manne r

require db y thi s subpart . Section s 172.20 2 provides :

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

mus t include : (1 ) The identificatio n numbe r ... ; (2 ) Th e prope r

shippin g nam e ,.. ; (3 ) Th e hazar dclas s o r

divisio n number... ; (4 ) Th e packin g grou p ... ; (5 ) [TJh e tota l quantity o f hazardou s material s covere db y tli e description ; (6 ) [T]h c total ne t

mas s pe r packag e .. . and ; (7 ) Th e numbe r

an dtyp e o f

package s ... . Sectio n 172.30 0 provides :

(a) Eac hpcr.9on wh o offer s ahazardou s materia l fo r transportatio n shal l mark

eac hpackag e .. . containin g tii e hazardou s materia l i n th e manne r require db y thi s subpart . Sectio n 172,301(a ) provides :

(a ) [E]ac hperso n wh o offer s for transportatio n ahazardou s materia l i n anon-bul k

packagin g niu<;

t mark th e packag e withth e prope r sliippin g nam e an didentificatio n numbe r (precede db y "UN " o r

"NA, " a s appropriate ) fo r

th e materia l a s show n i n th e § 172,10 1 table,,, . Sectio n 172.304(a)(1 ) provides ;

(a) Th e markin g require di n thi s subpart - M l citation s ar

c t o th e 200 7 edition o

f Titl e 4 9 o f th e Cod e o f Federa l Kjsgulations .06/23/201 0 10:4 0 FA X 202483514 2 FA A+ DM S 0016/02 4

(I ) Mus t b e durable , i n Englis han dprinte dor i o r affixe dt o th e surfac e o f apackag e o r

o nalabel , tag , o r

sign . Sectio n 172.400(a ) provides :

[Ejac hperso n wh o offer s for transportatio n o r

transport s a hazardou s materia l i n an y o f th e followin g package s o r containmen t devices , shal l labe l th e packag e o r containmen t

devic e wit hth e label s specifie dfor

th e materia l i n th e § 172.10 1 Tabl e an din thi s subpar t ... , Sectio n 172.600(c ) provides :

Genera l requirements . N o perso n t o who mthi s subpar t appUe s ma y offe r for transportatio n.. , ahazardou s materia l unless : (1 ) Emergenc y respons e informatio n eonfonnin g t o thi s subpart i s immediatel y availabl e for us e at al l time s th e hazardou s materia l i s presen t Sectio n 172,602(c ) provides :

(c ) Emergenc y respons e informatio n shal l b e maintaine da s follows : (1 ) Carriers . Eac hcarrie r wh o transport s ahazardou s materia l shal l maintai n th e informatio n specifie di n paragrap h(a ) o f thi s sectio n an d§ 172,60 6 o f

thi s par t i n th e sam e manne r

a s prescribe dfo r

shippin g paper s ... . (2 ) Facilit y operators . Eac hoperato r o f afacility wher e a hazardou s materia l i s received , store do r handle ddurm g transportation , shal l maintai n th e informatio n require db y paragrap h(a ) o f thi s sectio n wheneve r th e hazardou s materia l i s presen t Sectio n 172.702(a ) provides :

(a ) A hazma t

employe r

shal l ensur e tha t

eac ho f it s hazma t employee s i s traine di n accordanc e wit hth e requirement s prescribe di n thi s subpart . Sectio n 173.1(b ) provides :

(b ) A shipmen t

o f hazardou s material s tha t i s no t prepare di n accordanc e withthi s subchapte r ma y no t b e offere dfor

transportatio n b y air , highway , rail , o r

water . Sectio n 173.22(a ) provides :06/23/201 0 10:4 0 FA X 202483514 2 FA A. ,, , g,,,^^^ ^



### (a ) [A ] perso n ma

y offe r ahazardou s materia

l fo r transportatio n i

n apackagin g o r

containe r require db

y thi s par t onl y in accordanc e witli the following ; (1 ) iTi c perso n shall clas s an

ddescrib e the hazardou s materia l in accordanc e wit

hpart s 17 2 an

d17 3 of thi s subchapte

r ... . Section 173.24(b)(1 ) provides :

(b) F.ae hpackag e usedfo

r the shipmen

t of hazardou s material s under thi s subchapte

r shal l b e designed , constructed , maintained , filled, it s content s s o limited , an

dclosed , s o tha

t unde r condition s normally incident t o transportatio n - (1 ) Ther e will b e n o identifiable (witliou

t th e us e of instruments ) releas e o f hazardou s material s to the environmen t ... .

Il l

i : ^06/23/201 0 10:4 0 FA X 202483514 2 FA A • > DMS gl018/02 4



# -v N



# I > \ UEPTOFTR,^N$POf f DGCI<,ET S 

## 1 ^ ;.i;S'2 0 P2: l} 2 SJIRVE D AUGUS T 20,200 9 U.S . DEPARTMENT O FTRANSPORTATIO N

OFFIC EO FHEAlUNG S WA$HINGTOW , D C IN'Hi EMATTE

RO F ATLA S FROKHER S FA A DOCKET No . CP07KM000 9 (Civi l Penalt

y Action ) DM S No . FAA-2007-012 3 OKl>E RO N REMAN D FA A Order No . 2009-8 , serve dAugus t 4,2009 , remande dth e Initial Decisio n (hereiiiBfte

i "LD." ) i n thi s matter

t o th e undersigne dt o clarif y certai n matter s herein . Th e matteraconcer

n error e o f traiiscription . 'Ih e LD . i s hereb y clarifie da s follows : 1 ) Pag e 1 , secon dlin e fromth e bottom , betwee n "172.602(c) " and"173.1(b), " inser t "172,702(B), " 2 ) Pag e 6 , chang e th e final paragraph , followin g th e colon , t o read : "§§l71,2(c) , 172,200(B) , 172.202 , 172.3O0 , 172.301(a) , 172,304(a)(l) , 172.400(a) , 172.600(c) , 172.602(C) , 172,702(a) , 173.1(b) , 173.22(a) . and173.24(b)(1). " . '

RichardC . Ci^odwi a Administrativ e La w Judg e Attachment

- Servic e Lis t06/23/201 0 10:4 0 FA X 202433514 2 FA A + DM S 21018/02 4 

### SERVE D DECEMBE R 17 , 200 8 DEPlOF]^:S='pHigiO N UNFTE D STATE S DEPARTMEN T O FTRANSPORTA170 N^-^^ ^

OFFIC EO FHEARING S WASHINGTON , D.C . • -'^ ^ "- ^ 1 0 p 2

- Q" * FEDERA L AVIATIO N ADMINISTRATION .

Complainant , v . ATlA S FRONTIERS ,

Respondent , FA ADOCKE TNO , CP07NM0009 (Civi l Penalt

yAction ) DM S No. FAA-2007-612

3 INITIA L DECISIO N O F ADMINISTRATIV E LAW JUDG E RICHAR D C . GOODWI N Found : 1 ) Responden t

i s hereb y assesse dD civi l penalt y o f $12,0U0 . 1 . BackerowB d Atla s Frontiers , LL C (hereinafte r"Respondent " o r"Atlas") , o f Boise , ID , I s a n equipmen t broker . I t sell s item s fo rcustomers , generall yb ypostin g th e particular s online . I t handle s al l th e detail s o f sale , suc h a s preparatio n fo r shipmen t an d shipmen t itself . Atla s i s a hazma t employe r(Exh . C-9 ; Tr . 77,114 - 16) . Accordin g t o th e Amende d Complain t o f th e Fedena l Aviatio n Administratio n (hereinafte r"Complainant, " "FAA, " o r"th e agency") , o n o rabou t Jun e 1 , 2007 , a t Boise , ID , Atla s knowingl yoffere d i n ai rtransportatio n a n undeclare d shipmen t o f hazardou s materials . "Undeclared " mean s tha t th e externa l package , i n thi s cas e a fiberboar d box , wa s no t marke d o rlabele d i n a manne rtha t woul d indicat e th e hazardou s natur e o f Its contents . Complainan t identifie d th e hazardou s material s insid e th e boxa s 1 ) a gasolin e engin e (attache d t o a pump ) an d 2 ) approximatel yon e quart of gasoline , whic h wa s insid e th e engine' s fue l reservoir . Thus , accordin g t o Complainant , Responden t violate d severa l Hazardou s Material s Regulation s ("HMRs") , 4 9 CF R §17 1 etseq. , viz. , §§l71.2(e) , 172.200(a) , 172.202 , 172.300,172.301(a) . 172.304(a)(1) , 172.400(a) , 172.600(c) , 172.e02(c) , 173.1(b) , 173.22(a) , an d 173,24(b)(1) . TTies e provision s se t ou t marking , labeling , an d packin g requirement s fo rcertai n hazardous -06/23/201 0 10:4 0 FA X 202493514 2 FA A+ DM S @|020/02 4

material s shipments , an d mandat e trainin g fo rentitie s involve d i n suc h shipments . Th e agencyseeks a civi l penalt yo f $12,000 . Respondent , wh o appeare d pr o $ e an d wa s represente d b ymanagin g membe rMr . Maso n Fulle r(Tr . 4) , denie d th e charges . I t ha d Intende d th e shipmen t t o g o b ygroun d transportation . Ahearin g wa s hel d o n Jun e 12 , 2006 , i n Boise , ID . I determine d tha t a writte n decisio n wa s reasonabl e an d appropriat e unde rth e circumstance s (Tr . 141) . Th e partie s mad e concludin g argument s (Tr , 126-41 ) an d th e matte rno w i s read yfo rdecision . I hok l tha t th e fact s an d circumstance s o f thi s cas e warran t finding s o f violation s o n al l count s an d a n assessmen t agains t Responden t o f $12,000 . I LFact s an dCircunstance j Atla s Frontiers o n Jun e 1 , 2007 , ha d shippe d th e offendin g packag e vi a DH L fro m Boise , intendin g i t fo ra custome ri n Lawton , M l (Exh . C-8 ; Tr . 70-71) . Followin g a flight whic h touche d dow n a t Sal t Lake City , th e packag e wa s flagged o n accoun t o f spillag e (Exh , C-1) . Witnes s Kurti s Stauffer , a partne ri n U S Environmental , a remediatio n compan ywhic h manage s environmenta l hazard s suc h a s spill s (Tr . 18-20) , wa s calle d t o th e scen e a t th e DH L facilit yI n Sal t Lake . H e discovere d a fiberboar d bo xtendere d byResponden t apparentl yleakin g fro m th e inside . Th e "obvious " odo ro f ga s als o wa s presen t (Tr . 24 ; se e als o Tr . 6 6 (testimon yo f FAAspecia l agen t Jame s E . Berk)) , Stauffe rlooke d insid e an d determine d tha t th e bo xcontaine d a ditc h pum p attache d t o a small , gas powere d engin e (se e Exh . C-5) . Liqui d wa s comin g ou t o f th e ga s ca p breathe r nozzl e a t th e to p o f th e ga s can . Upo n openin g th e can , Stauffe rfoun d ga s i n th e container . Approximatel yon e an d one-hal f inche s o f gasolin e remaine d i n th e tank , o rabou t on e quart . Wate rdamage , originatin g fro m th e pump , als o wa s presen t Stauffe rcleane d u p th e spil l an d remove d th e offendin g material s (Tr . 22-29 , 33-34 ; Exh . C-10 ' pp . 2-5 ; Exh . C-20) . Th e shipmen t ough t t o hav e bee n classifie d a s a hazardou s material . Th e prope rshippin g nam e fo rth e engin e wa s 'engine , interna l combustion , flammabl e liqui d powered. ' (Se e Hazardou s Material s Tabl e immediatel y followin g 4 9 C.F.R . §172.101) . I t i s a Clas s 9 material . A s such , t o b e shippe d byai rth e HMR s require d th e displa yo f certai n label s an d marking s (notably , i n thi s matter , orientatio n markings ) an d emergencyrespons e Information . Th e shipmen t als o wa s obligate d t o follo wstandard s o f hazma t packaging - Non e o f thes e condition s wer e me t (Tr . 54-55 . 62-64 ; Exh . C-2) . Gasolin e als o I s classifie d a s a hazardou s materia l (Hazardou s Material s Tabl e followin g §172.101) , an d non e o f th e condition s fo rit s transport b yai rwer e presen t eithe r (Exhs . C-1 , C-7 ; Tr . 66-68) . Moreover , th e fue l lan k o f a combustibl e engin e mus t b e purge d prio rt o shipmen t (Tr . 69 ) - bu t thi s tan k wa s not .06/23/201 0 10:4 0 FAX 202493514 2 FA A^ DM S @l021/02 i

Finally , Atla s employee s responsibl e fo rtenderin g th e shipmen t ha d no t ha d th e hazardous-material s trainin g require d fo rsuc h task s (Tr . 13-14,74-75) . Mr . Fulle racknowledge d th e trut h o f thes e findings . H e admitte d tha t th e shipment , tendere d b ya n Atla s employee , lacke d th e require d markings , labeling , an d othe rrequire d Iriformatio n (Tr . 121-22,125-26) . H e acknowledge d tha t th e engin e ha d no t bee n draine d o f fuel . H e als o admitte d tha t shippin g personne l di d no t hav e hazardou s material s trainin g (Tr . 116-17 , 123) . I n thes e circumstances , I fin d tha t eac h o f th e violation s allege d wa s proved . I n Respondent s defense . Fulle rstresse d that Atla s ha d tendere d th e shipmen t fo rgroun d transportatio n (Tr . 118-19 ; se e a/s o Tr . 49-50) . Bu t thi s argumen t doe s no t avai l Respondent . Alia s was , o rshoul d hav e been , awar e o f th e possibilit ytha t th e packag e woul d trave l byair . Th e contract I t entere d int o wit h DH L specifie s that , eve n whe n a shipmen t i s offiere d fo rgroun d transportation , DH L ma ytransport i t b yai r(Exh , C-4 ; Tr . 60) , II LPenalt y Complainan t seeks a civi l penalt yo f $12,000 . I I bear s th e burde n o f provin g th e appropriatenes s o f thi s amoun t bya preponderanc e o f th e evidence , Phillip s Buildin g Supply , FA AOrde rNo , 2000-2 0 (Augus t 11 , 2000) . p . 8 . I hav e decide d t o asses s a civi l penalt yagains t Responden t o f $12,000 . I n determinin g th e amoun t o f th e penalty , th e decisionmake rmus t conside r"th e nature , circumstances , extent , an d gravityo f th e violation, " and , wit h respec t t o th e violator , th e degre e o f culpability , an yhistor yo f prio r violations , th e abilityt o pay , an d an yeffec t o n th e abilit yt o continu e t o d o business, " an d "othe rmatters tha t justic e requires " (4 9 U.S,C , §5l23(c)) . Hazardou s materials , b ythei rver ynature , ar e dangerous . Ai rshipmen t o f suc h good s put s th e safet yo f ai rtransportatio n - th e overridin g goa l o f th e Departmen t ~ at significan t risk. Becaus e o f hazmats ' inheren t capacit yfo rperil , th e HMR s effec t a we b o f protectio n t o minimiz e risk fo rperson s wh o coul d b e adversel yaffecte d byproximit yt o suc h materials , suc h a s handlers , passengers , an d crew . Undeclare d shipment s o f hazardou s material s lac k tha t protection . The y ar e particularl yworrisom e becaus e the yconstitut e a safet ythrea t whos e magnitud e i s unknown . Undeclare d shipmenl s o f hazardou s materials , th e Administrato rha s emphasized , 'increas e th e likelihoo d o f Injur y[and ] pos e a specia l risk " (see , e.g. , Toyot a Moto rSales , USA , Inc. , FA AOrde rNo . 94-2 8 (Septembe r30 , 1994) , p . 13) .06/23/201 0 10:4 0 FA X 202493514 2 FA A D M S 0022/02 4

I n thi s cas e circumstance s accentuatin g th e dange rals o wer e presen t Th e ga s remainin g insid e th e engin e coul d hav e ignite d (Tr . 39) . Further , th e ga s ca p ha d a hol e I n it , Invitin g additiona l peril . Whil e necessar yfo rengin e performanc e (Tr . 65) , th e presenc e o f th e hol e guarantee d tha t th e ga s woul d spil l ou t i f th e engin e wer e tippe d o n it s sid e (Tr . 65-66) . Withou t th e require d orientatio n arrow s o n th e box , th e risk o f a til t increase d unacceptably . Indeed , approximatel yeigh t ounce s o f gasolin e ha d leake d ou t prio rt o th e shipment' s remova l fro m th e lin e (Exh . C-2 , p , 5 ; Tr . 55) . Aleake d packag e constitute s a n aggravatin g fac t (6 4 Fed.Reg . 19443,1944 5 (Apri l 21.1999)) , Thes e circumstance s warran t a significan t firre . TT» e characte ro f Respondent' s busines s als o I s importan t I n determinin g a n appropriat e penalty . Th e Fin e shoul d reflect th e degre e o f Responden f s Involvemen t wit h hazardou s materials . Th e agency' s HM R Penalt yGuideline s sugges t tha t th e greate rth e degre e o f a respondent' s involvemen t i n hazardou s materials , th e highe rth e sanctio n amoun t shoul d be. ' Th e recor d show s tha t Responden t i s a busines s entit ywhic h use s hazardou s material s I n th e cours e o f it s business , RespondenVs representative , Mr , Fuller , contende d otherwise . Bu t hi s assertio n i s belie d b yth e ver yfact s o f thi s case . Nothin g i n thi s proceedin g suggest s tha t th e natur e o f th e material s shippe d wa s uniqu e o runusual , o rinconsisten t wit h Atlas ' holdin g itsel f ou t a s a n equipmen t broker . Respondent' s promis e t o handl e al l detail s attendan t t o shippin g I s no t limite d t o non-hazardou s materials . Promotiona l material s promis e withou t restrictio n t o "sel l off equipmen t an d inventorie s a t grea t prices. " (Exh . C-9 ) Respondent' s positio n a s a busines s handlin g hazardou s material s - eve n i f i t wer e doin g s o onl yo n a n occasiona l basi s - compel s a n awarenes s o f th e HMR s an d th e concomitan t obligatio n t o follo wthem , Th e Penalt yGuideline s emphasiz e tha t suc h a busines s "i s clearl yo n notic e o f th e hazardou s matur e o f th e materia l an d th e regulator yrequirement s t o whic h th e Hazma t i s subject " (6 4 Fed.Reg , 19443,19449) . Atla s canno t avoi d liabilityb yclaimin g tha t i t wa s unprepare d o rotherwis e surprised . Th e natur e o f Respor>dent' s business , I find , als o compel s a significan t assessmen t fo rth e violation s a t Issue . Bu t Responden t i n fac t ha d n o knowledg e o f th e requirement s attache d t o it s undertaking . N o employe e ha d undergon e an ykin d o f trainin g i n th e recognitio n o rappropriat e lende ro f hazardou s materials . Responden t wa s completel yunawar e o f requirements . Thi s circumstance , however , doe s no t Su e Federal Aviatio n Atlinmi.<:Tratio n Polic y o n En^Drcemcn

t orch aHazardou s MuterialB Regulaiions : Penalty Quidulincs , 6 4 Fo±R*g . 1944 3 w seq . (Apri l 21,1S>99) . FAA Orde r 2150.3A , Chg , 26 , Apvendi n6 , date dApri l )4 , 1999 . B y Orde r 2150.3B , th e agenc y issue dnow sanctio nguideline asupersedin g th e oW , Th e nev ^ guidclinM ar c mapplicabl e here , however , becaus e ih« y apply t o violation s occurrin g o nor afte r Oclgbc r I , 2007 , andth e incident i n thi s maltcrloo k

plac e o nJun e 1,2007 . Seg 7 2 Fed.Reg , 5555 3 (Oclobo r 1,2007) .OG/23/201 0 10;4 0 FA X 202493514 2 FA A• > DM S 2)023/02 4

avai l it . Evidenc e tha t violation s wer e unintentiona l doe s not mitigat e a n othen^is e reasonabl e sanctron . I n fac t evidenc e tha t a violatio n ha d bea n intentiona l woul d constitut e a n aggravatin g factor , makin g appropriat e a n eve n highe rsanction . America n Ai rNetwork , Inc. , FAAOrde rNo . 2006- 5 (Februar y 10,2006) , p . 8 . Mr . Fulle reventuall yundenven t a kin d o f hazardous-material s training . H e state d tha t nin e month s afte rth e incident , an d afte rth e proceedin g ha d bee n se t fo rhearing , h e watche d a slid e sho wproduce d b yth e Department . Th e slide s wer e followe d byself-testing . Mr . Fulle rproduce d n o record s o f i t (Tr . 122-24) . H e adde d tha t h e i s no wawar e o f th e importanc e o f training . Ever y Atla s employe e wh o ship s (onl yhimsel f a t thi s point ) wil l b e traine d i n th e ldentificatk) n an d us e o f hazardou s materials , h e sai d (Tr . 119) . Atlas ' respons e t o th e company' s lac k

o f training , however , fail s t o warran t mitigation . Swif t actio n designe d t o l^ette rensur e futur e complianc e ma yjustif ya reductio n i n sanction . On e suc h measur e whic h ha s le d t o a lesse rpenalt y involves^endin g responsibl e employee s t o trainin g program s {Westai r Commute rAirlines , Inc . d/b/ a Unite d Express , FA

AOrde r93-1 8 (Jun e 10 , 1993) , p . 15 ; Delt a Airlines , FA AOrde rNo . 91-4 0 (Septembe r30.1991)) . Th e actio n undertake n b yRespondent , however , eve n I f take n a s true , vy/a s no t timely , an d wa s o f a natur e considerabl yles s rigorous an d thoroug h tha n th e kin d o f action s recognize d fo rmitigatio n b yth e Department . I t simpl ydoe s no t constitut e th e typ e o f speed yo rsystemi cchang e favore d byth e agency(6 4 Fed.Reg . 19443 , 1944 7 (Apri l 21 , 1999)) . Al l othe rargument s proffere d b yAtla s hav e bee n considere d an d rejected. ^ I n weighin g al l th e totalit yo f th e fact s an d circumstances , I fin d an d conclud e tha t a civi l penaltyassessmen t o f $12,00 0 i s appropriate , Acompany , i n th e busines s o f sellin g equipmen t fo rothers , whic h ship s byai ra gasoline powere d engin e wit h gasolin e sloshin g aroun d insid e whe n no t oozin g out , an d whic h fail s t o pos t an ykin d o f wamin g o rt o emplo yappropriat e packaging , ha s acte d thoughtlessl yan d recklessly . I t deserve s a heft yfine . I conclud e tha t th e amoun t decide d wil l hel p t o achiev e th e statutor ypurpos e o f promotin g complianc e wit h th e HMRs, ^ I t contain s sufficien t 'bite" , o rdeterren t effect (se e

^ I n puticular , tha i Responden t may b e afirsl-thne violslo r (Tr , ) 20 ) fuil s t o justif

y areduce dpenatty . A violulion-rTv e history i s expecte dt o b e th e norm . ToyotaMoto r Sales , FAA OrderNo . 94-2 8 (Septembe r 30 , 1994) ; Tr . 67 . An dvrhil c Mv . Puller state du s onBfTiiTnaliv

e derens e tha t

Atla s coul dTai

l a s aconcer

n Ei s aresul t o f afine o f suc hmagniiud e (Tr , 120) , th e compan y faile dt o support thi s assertio nwit

hany evidenc e beyon dIIJ

B witness ' ba nuHemncc . A self-servin g clain ) withou t an y evidentiary backin g i s no t proof . Atlas , then , faile dt o demonstrai afinancial hardshi p (s^ e Vr . 130) , sn dIts clai mi s rcjecled , 1 d o no t say thi s withou t

nservations . Respondent' s representativ e Mr , Fuller , inhi ; viosin g statement , reiterate dhi s intentio n to hcncefbit hfollo w th e Department' s "guidelines " for th e shipmen t

ofhazaiiiou s matcriftls . Tr , 140 . Mr . Fuller' s chanicterizatio no f th e HMR s i s mistaJccn . Th e HMR s ar e no t euidelines , but legal requirement*; .06/23/201 0 10;4 1 FA X 202493514 2 FA A* DM S @l024/02 4

li. ! I" ! I Toyot a Moto rSales , Inc. , FA AOrde rNo . 94-2 8 (Septembe r30 , 1994) , p . 11) . I \ Th e assessmen t additionall yfairl yweigh s th e post-inciden t actkjn s Responden t

ha s undertaken . Finally , th e civi l penalt yals o appropriatel yaccount s fo rth e factor s th e statut e direct s i n fixin g th e assessment . t I Atla s Frontiers i s hereb yassesse d a civi l penalt yo f $12,00 0 fo rviolation s o f thefollowin g HMRs : §§171.2(a) , 172.200(a) , 172.202(a)(1)-(a)(3) , 172.202(a)(5) . 172.2Q3(f) , 172.204(a ) o r(c)(1) , 172.204(c)(2) , 172.204(c)(3) , | i 172,600 . 172.602(b)(3) , 173.1(b) . 172.702(a) , 173.27(b)(1) , an d 173.222. "

i char dC . Gooawi n Adminisirativ e La w Judg e Aliachmcn l - Servic e I^is t '; • 1 r : • ;



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