On August 20, 2002, the Office of Chief Counsel issued an Order to New York Enviromental Services Corporation, (Respondent) finding Respondent had committed the following violation of the Hazardous Materials Regulations (HMR) and assessing a penalty in the amount of $5,400. Offering for transportation in commerce a hazardous material, regulated medical waste, in non-bulk packagings that were not designed, constructed, maintained, filled, closed, and their contents limited so that the effectiveness of the package would not be substantially reduced and there would be no identifiable release of hazardous materials to the environment from packages. Thus, based on Respondent's prior knowledge of the packaging failures and of alternative methods, its second argument is rejected. For these reasons, Respondent's appeal is denied and Respondent is assessed a civil penalty of $5,400.