On March 6, 2024, an Investigator.from PHMSA's Office of Hazardous Materials Safety Field Operations ("OHMSFO") conducted a compliance inspection at a facility in Lenexa, Kansas, pursuant to 49 U.S.C. § 5121 and 49 C.F.R. § 107.305. PHMSA's investigator reported two alleged violations of the HMR. At the conclusion of the compliance inspection, PHMSA's Investigator conducted an "exit briefing" during which the investigator discussed the alleged violations and the required corrective actions with Respondent's representative.

Upon completion of the compliance inspection, the investigator submitted a report to the Director of OHMSFO's Central Region, who reviewed the report for accuracy and sufficiency of evidence. Based on that review, the Regional Director referred the matter to PHMSA' s Office of Chief Counsel thereby recommending the initiation of a civil penalty action against Respondent pursuant to 49 C.F.R. § 107.311.

Based on a preliminary assessment of the apparent nature, circumstances, extent, and gravity of the probable violations, as set forth in the inspector's report, on March 26, 2025, an attorney from PHMSA's Office of Chief Counsel issued a Notice of Probable Violation ("NOPV") alleging two violations of the HMR and proposing a $8,700 civil penalty.

Respondent requested a reduction in the penalty based on the fact that the inspection occurred over a year ago and it resolved the violations quickly thereafter, that this is its first NOPV from PHMSA, and that the fine is quite hefty. Based on this information and for the purpose of compromise, the total penalty has been reduced by 25%.