RESPONDENT SOLD THREE (3) UNREGISTERED PESTICIDES, AND PRO- DUCED TWO PESTICIDES IN AN UNREGISTERED ESTABLISHMENT. A PRE-FILING NOTICE WAS SENT TO RESPONDENT ON APRIL 8, 1999. SETTLEMENT DISCUSSIONS TOOK PLACE ON APRIL 14, 1999. AVAILABLE INFORMATION DEMONSTRATED THAT THE VIOLATIONS WERE NEITHER WILLFUL NOR KNOWING, AND THAT RESPONDENT INITIATED STEPS TO CORRECT THE VILATIONS AFTER BEING NOTIFIED OF THEM. IN ADDITION, THERE WAS NO EVIDENCE OF ENVIRONMENTAL HARM. THE PENALTY HAD BEEN ORIGINALLY CALCULATED AT $13,750. ON THE BASIS OF PRIOR ALJ DECISIONS ON PENALTIES IN SIMILAR CASES, THE PENALTY WAS REDUCED FOR LITIGATION RISKS TO $10,250. APPLYING A 20% REDUCTION FOR GOOD FAITH, A SETTLE- MENT AMOUNT OF $8,200 WAS OFFERED AND ACCEPTED. THE COMPLAINT AND CAFO WERE FILED SIMULTANEOUSLY ON NOVEMBER 17, 1999. THE RESPONDENT PAID THE FIRST OF TWO INSTALLMENTS OF THE PENALTY ON JANUARY 13, 1999. RESPONDENT HAS COMPLIED WITH ALL TERMS OF THE CAFO. THIS CASE SHOULD BE CLOSED OUT. THANKS.