On May 22, 1996, the Chief Counsel issued an Order to Applied Companies, Inc. (Respondent) assessing a penalty in the amount of $3,920 for two violations of the Hazardous Materials Regulations (HMR). (Violation No. 1) The Order found that Respondent knowingly represented, marked, certified, offered, and sold compressed gas cylinders as meeting the requirements of the HMR when hydrostatic testing had been performed on equipment having a pressure gauge that was not capable of being read within one percent of test pressure, and (violation No. 2) training was not provided for its "hazmat" employees or creating and retaining training records. The Order modified the $5,320 civil penalty originally proposed in the July 12, 1995 Notice of Probable Violation (Notice). By letter dated June 10, 1996, as supplemented by its June 21, 1996 letter, Respondent submitted a timely appeal of the Order. It was determined that there is not sufficient information to set aside the findings of violation in the Chief Counsel’s Order or to warrant mitigation of the civil penalty assessed in that Order. I find that a civil penalty of $3,920 is appropriate in light of the nature and circumstances of these violations, their extent and gravity, Respondent's culpability, Respondent's lack of prior violations, Respondent's ability to pay, the effect of a civil penalty on Respondent's ability to continue in business, and all other relevant factors. The Order of May 22, 1996, is affirmed and the appeal is denied.