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July 17, 2001

FAA Proposes $52,500 Penalty Against Rex Pegg Fabrics, Inc. for Hazmat Violations

The Federal Aviation Administration, Southern Region, has
proposed to assess a $52,500 civil penalty against Rex Pegg
Fabrics, Inc. of Tacoma, Wash., for allegedly violating
Department of Transportation hazardous materials regulations.

FAA alleges that Rex Pegg Fabrics, Inc. improperly offered a
fiberboard box containing 12-one-quart plastic bottles of
"Aqua-Tite," a flammable liquid, to UPS for transportation by air.
Ground handling employees at the UPS sort facility in Louisville,
Ky., discovered the shipment leaking.

Rex Pegg Fabrics, Inc. offered the hazardous materials for
transportation when they were not packaged, labeled, marked,
classed, described, documented, or in condition for shipment as
required by regulations. Rex Pegg Fabrics, Inc. also failed to
ensure employees were trained to properly package and handle
hazardous materials, and did not make available at all times the
required emergency response information.

Rex Pegg Fabrics, Inc. has 30 days from receipt of the FAA
notice to submit a reply to the agency. This announcement is
made in accordance with the FAA's practice of releasing
information to the public on newly issued enforcement actions
involving penalties of $50,000 or more.




--This story is posted courtesy FAA

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