On August, 20, 2002, the Office of Chief Counsel issued an Order (Order) to Mathers Associates Co. (Respondent) finding Respondent had knowingly committed the following two violations of the Hazardous Materials Regulations (HMR), and assessing a penalty in the amount of $5,400: Violation No. 1 – Offering for transportation in commerce a hazardous material, flammable liquid, n.o.s. (acetone, toluene), in an unauthorized non-UN standard packaging. Violation No. 2 – Allowing an employee to perform a function subject to the requirements of the HMR, when the employee had not been trained as required and training records were not created and retained, in violation of 49 C.F.R. §§ 172.702(b) and 172.704(d). Respondent’s appeal is granted in part and denied in part with respect to Violation No. 1 and denied with respect to Violation No. 2. Respondent is assessed the civil penalty of $3,900, which takes into account a reduction in the penalties assessed for Violation No. 1, in the amount of $1,500, as discussed above. Respondent is assessed the civil penalty of $3,900, which takes into account a reduction in the penalties assessed for Violation No.1, in the amount of $1,500, as discussed above.