On December 15, 2004, the Office of Chief Counsel issued an Order to Lomack Drum Company (Respondent), finding Respondent had committed the following violation of the Hazardous Materials Regulations (HMR), 49 C.F.R. Parts 171-180, and assessing a penalty in the amount of $11,340: Violation 1 Representing, marking, certifying, selling, and offering open-head steel drums, marked in part UN1A2/Y1.2/100/USA/11-03/1319RL, as meeting the requirements of the Hazardous Materials Regulations, when design qualification testing was not performed as prescribed. Respondent’s request for a reduction in the penalty amount to $275 is denied. However, Respondent’s financial condition warrants an additional 20 percent reduction of the civil penalty assessed in the Chief Counsel’s Order of December 15, 2004. The civil penalty of $9,072 is appropriate in light of the nature and circumstances of these violations.