On May 29, 1998, the Office of the Chief Counsel issued an Order to Kesselring Gun Shop, Inc. (Respondent) finding that Respondent had knowingly committed the following two violations of the Hazardous Materials Regulations (HMR) and assessing a penalty in the amount of $11,550: Violation 1. Offering for transportation in commerce a hazardous material, Propellant, solid, as smokeless powder for small arms without using the proper shipping description, including the proper shipping name, class, classification code, UN number, and approval number. Respondent failed to adhere to the provision in the HMR that allows shipping of Propellant, solid, as smokeless powder for small arms if, among other requirements, the total weight of the shipment does not exceed 16 pounds. Violation 2. Offering for transportation in commerce a hazardous material, Propellant, solid, in a non-standard packaging. I have determined that there is not sufficient information to warrant mitigation of the civil penalty assessed in the Chief Counsel's Order. The civil penalty of $11,550 is appropriate in light of the nature and circumstance of the violations, their extent and gravity, Respondent's culpability, Respondent's lack of prior offenses, Respondent's ability to pay, the effect of a civil penalty on Respondent's ability to continue in business, and all other relevant factors. Therefore, the Order of May 29, 1998 is affirmed and the appeal is denied.