On May 22, 2024, Investigators from PHMSA's Office of Hazardous Materials Safety Field Operations (“OHMSFO”) conducted inspections at Respondent's facility in Sioux Falls, South Dakota, pursuant to 49 U.S.C. § 5121 and 49 CFR § 107.305. PHMSA's Investigators reported one (1) alleged violation of the HMR. At the conclusion of the compliance inspection, PHMSA's Investigators conducted an "exit briefing," during which the Investigator discussed the alleged violation and the required corrective actions with Respondent’s representatives. Upon completion of the inspection, the Investigators 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 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
CFR § 107.311.

Based on a preliminary assessment of the apparent nature, circumstances, extent, and gravity of the probable violations, as set forth in the Investigator's report, on October 22, 2024, an attorney from PHMSA's Office of Chief Counsel electronically issued a Notice of Probable Violation ("Notice"), alleging one (1) violation of the HMR, and proposing a $9,000 civil penalty. Respondent replied via email on October 25, 2024.

At the time of the Notice, Respondent had provided full corrective action. Following the informal conference, Respondent was able to provide financial documents (federal tax returns, a profit & loss statement, and a current balance sheet), showing financial hardship. For the financial hardship and in the interest of settling the matter, PHMSA's attorney has reduced the penalty to $4,500, on a six (6) month payment plan of $750 per month.