On July 25, 2002, the Chief Counsel issued an Order to Dynamic Propellent Technologies, LLC, U.S. Rockets, LLC, and Mr. Jerry Irvine (Respondents), jointly and severally, assessing a penalty in the amount of $57,500 for the following violations of the Hazardous Materials Regulations (HMR): Violation No. 1 - Knowingly offering for transportation in commerce hazardous materials, rocket motors and propellent, solid, that had not been examined, classed, and approved in accordance with 49 C.F.R. § 173.56 and, therefore, were unapproved explosives and unauthorized for transportation in commerce. Violation No. 2 - Knowingly offering for transportation in commerce hazardous materials, rocket motors and propellent, solid, accompanied by a shipping paper that did not indicate that the materials are hazardous and that contained an improper description of the materials. Violation No. 3 - Knowingly offering for transportation in commerce hazardous materials, rocket motors and propellant, solid, in a quantity that required placarding, without registering with RSPA as a hazardous materials shipper. It was determined that there is sufficient information to dismiss this case against U.S. Rockets and to warrant mitigation of the civil penalty assessed in the Chief Counsel's Order against Dynamic and Mr. Irvine. I find that a civil penalty of $40,000 is appropriate in light of the nature and circumstances of these violations, their extent and gravity, the culpability of Dynamic and Mr. Irvine, their lack of prior offenses, the size of their business, their ability to pay, the effect of a civil penalty on their ability to continue in business, and all other relevant factors.