Compromise Order - 25-0071-SH-SO - Pelican Sales Inc
On January 14, 2025, an Investigator from PHMSA's Office of Hazardous Materials Safety Field Operations ("OHMSFO") conducted a compliance inspection at Respondent's facility in Melbourne, Florida, pursuant to 49 U.S.C. § 5121 and 49 CFR § I 07.305. PHMSA's Investigator reported one (1) alleged violation of the HMR. At the conclusion of the compliance inspection, PHMSA's Investigator 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 investigator submitted a report to the Director of OHMSFO 's Southern 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 March 31 , 2025, 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 $3,200 civil penalty. Respondent replied via email on March 31, 2025.
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, as well as corrective action, showing a proper emergency response number. For the financial hardship and in the interest of settling the matter, PHMSA's attorney has reduced the penalty to $1,600, on a four (4) month payment plan of $400 per month.