**PUBLIC NOTICE**![](media/image1.png){width="0.7388888888888889in"
height="0.7458333333333333in"}

**FEDERAL COMMUNICATIONS COMMISSION**

**445 12th STREET, S.W.**

# WASHINGTON, D.C. 20554

News Media Information: (202) 418-0500

Fax-On-Demand: (202) 418-2830

Internet: http://www.fcc.gov

ftp.fcc.gov

**DA 99-2154**

October 12, 1999

**Closed Broadcast Auction No. 27 Closes**

## Winning Bidder in the Auction of Pahrump, Nevada 

## Broadcast Construction Permit 

Down Payment Due October 26, 1999

Long-Form Application Amendments Due November 12, 1999

*Ten Day Petition to Deny Period for FM Service;*

**Report No. AUC-99-27-B (Auction No. 27)**

On October 8, 1999, the Federal Communications Commission completed the
auction of the Pahrump, Nevada broadcast construction permit, raising a
total of \$172,250 for the U.S. Treasury.

This public notice provides detailed information concerning the winning
bidder, down payment, bid withdrawal payment and/or deposit, amendment
filing requirements for FCC Form 301 ("long-form application") of
winning bidder and other licensing matters. Key information appears in
the following attachments:

**Attachment A:** "Round Results, High Bids" lists the winning bidder
and both the gross and net high winning bid amounts.

**Attachment B:** "Bidder Payment/Refund Report" lists the down payment
owed by the winning bidder.

A copy of this public notice will be sent via overnight mail to the
winning bidder.

**Down payments.** The Commission\'s rules require that within ten
business days after the release of this public notice, in this case,
**by 6:00 p.m. ET on October 26, 1999**, the winning bidder in the
Pahrump, Nevada Closed Broadcast Auction (Auction No. 27) must have on
deposit with Mellon Bank in Pittsburgh, Pennsylvania, enough funds to
cover the required down payment on the winning bid. If the winning
bidder's upfront payment is not sufficient to meet this requirement, the
bidder must deposit additional funds. *See* 47 C.F.R. §§1.2107(b) and
73.5003(b).[^1]

The amount now due from the bidder, is set out in the last column of
**Attachment B**. The bidder\'s down payment must be a total of twenty
(20) percent of its net winning bid.

**Long-Form Application**. The winning bidder must submit minor
amendments to the previously filed long-form application within 30 days,
by November 12, 1999. The winning bidder's long form application, as
amended, will be placed on public notice, triggering the appropriate
period for the filing of petitions to deny. [*See* further discussion at
pp. 6-7, *infra*]{.underline}.

**Final payment.** After the termination of the pleading cycle for
petitions to deny (*see* 47 C.F.R. §73.5006), the Commission will issue
a public notice announcing that it is prepared to award the construction
permit to the winning bidder, if the application is uncontested.[^2]
Within ten business days after the date of that public notice, the
uncontested winning bidder will be required to make full payment of the
balance of their winning bid. *See* 47 C.F.R. §§1.2109 and 73.5003(c). A
broadcast construction permit will be granted by the Commission
following the receipt of full payment. The previously filed long-form
applications of the unsuccessful competing bidders will be dismissed
following the grant of the winning bidder's construction permit.

**Method of payment.** All payments must be in U.S. dollars and made in
the form of a wire transfer. No personal checks, credit card payments,
or other forms of payment will be accepted. All payments must be
accompanied by a completed FCC Remittance

Advice Form (FCC Form 159).[^3] A partially completed copy of the FCC
Form 159 will be

included in the overnight mailing of this public notice and sent to the
winning bidder to facilitate submission of the correct down payment. If
the partially completed FCC Form 159 is not received, contact Michelle
Bennett or Gail Glasser at 202-418-1995. **However, the winning bidder
is ultimately responsible for the insuring verification and submission
of the correct down payment from their bank to Mellon bank.**

**The wire transfer payment** must be **received** by Mellon Bank by
**6:00 p.m. ET, on October 26, 1999.** The winning bidder should
coordinate with their banker ahead of time regarding their wire
transfer, and allow sufficient time for the wire transfer to be
**initiated and completed prior to the deadline**. **As the Commission
is not accountable for the acts of an applicant's bank, the bidder is
urged to confirm before the deadline that their wire transfer payment
has been properly and timely transmitted by their bank to Mellon Bank.**
To submit funds by wire transfer, the bidder will need the following
information:

ABA Routing Number: 043000261

Receiving Bank: Mellon Pittsburgh

BNF: 911-6106

> OBI Field: (Skip one space between each information item) "AUCTIONPAY"

TAXPAYER IDENTIFICATION NO. (same as FCC Form 159, Block 26)

PAYMENT TYPE CODE (enter \"A27D\")

FCC CODE 1 (same as FCC Form 159, Block 23A: \"27\")

PAYOR NAME (same as FCC Form 159, Block 2)

LOCKBOX NO.: 358850

The bidder must fax a completed FCC Form 159 to Mellon Bank at
412-236-5702 at least one hour before placing the order for the wire
transfer (but on the same business day).

Proper completion of the **FCC Form 159** is critical to ensuring
correct credit of the bidder's deposit. **The bidder must use the same
Taxpayer Identification Number used on their FCC Form 175.**[^4]
Questions concerning the calculation and submission of the down payment
should be directed to Michelle Bennett or Gail Glasser at 202-418-1995.

**Withdrawal, default and disqualification payments.** The Commission
imposes payments on bidders that withdraw high bids during the course of
an auction, or that default on payments due after an auction closes, or
that are disqualified. *See* 47 C.F.R. §§ 1.2104(g), 1.2109(c),
73.5004(a). In Auction No. 27, there were no bid withdrawals during the
course of the auction.

*Bid Default/Disqualification Payments.* If a high bidder defaults or is
disqualified after the close of the auction, it will be subject to the
following payment obligations: 1) the difference between the high bid
and the amount of the winning bid the next time the construction permit
is offered by the Commission, **and** 2) a payment equal to 3 percent of
the subsequent winning bid. If the subsequent winning bid exceeds the
defaulting bidder's bid amount, the 3 percent payment will be calculated
based on the defaulting bidder's bid amount. With respect to the first
component above, the difference between the defaulted and subsequent bid
is determined by comparing the net defaulted bid with the subsequent net
bid, or the difference between the gross defaulted bid and the
subsequent gross bid, whichever is less.

Similarly, the calculation of the three percent payment is based on the
smaller of the two gross bids or smaller of the two net bids, whichever
basis (gross or net) was used to figure the first component. Thus, if
the difference between the gross bids is less than the difference
between the net bids, the three percent payment will be computed on the
lower of the gross bids. If the difference between the net bids is less
than or equal to the difference between the gross bids, the three
percent payment will be computed on the lower of the net bids. However,
if the differences between both the gross bids and the net bids are less
than or equal to zero, the three percent payment will be computed on the
lower of the net bids.

If the winning bidder fails to remit the required down payment within
ten (10) business days after the Commission has released this Public
Notice, in this case, by 6:00 p.m. ET, on October 26, 1999, the bidder
will be deemed to have defaulted, its application will be dismissed, and
it will be liable for a default payment as described above. In such
event, the Commission will offer the construction permit to the other
highest bidders (in descending order) at their final bids.[^5]

If the winning bidder fails to pay the balance of its winning bid in a
lump sum by the applicable deadline for final payment as specified by
the Commission, it will be allowed to make payment within ten (10)
business days after the payment deadline provided that it also pays a
late fee equal to five (5) percent of the amount due. When a winning
bidder fails to pay the balance of its winning bid plus late fee by the
late payment deadline, it is considered to be in default on its
construction permit(s) and subject to the applicable default payments.
Construction permits will be awarded upon the full and timely payment of
the winning bid and any applicable late fees. *See* 47 C.F.R.
§1.2109(a). If the winning bidder is found unqualified to be a licensee,
fails to remit the balance of its winning bid in a timely manner, or
defaults or is disqualified for any reason after having made the
required down payment, will be deemed to have defaulted and will be
liable for the payment set forth in Section 1.2104(g)(2). In such event,
the Commission shall offer the construction permit to the other highest
bidders (in descending order) at their highest bids.[^6]

Finally, if the bidder is found to have violated the antitrust laws or
the Commission\'s rules in connection with their participation in the
competitive bidding process may be subject, in addition to any other
applicable sanctions, to forfeiture of their upfront payment, down
payment, or full bid amount, and may be prohibited from participating in
future auctions. *See* 47 C.F.R. § 1.2109(d).

**Refund of upfront payments (for non-winning bidders).** Non-winning
bidders must fax the necessary wire transfer instructions to Michelle
Bennett at 202-418-2843. Any questions concerning refunds for
non-winning bidders should be referred to Michelle Bennett or Gail
Glasser at 202-418-1995.

**Amendment to Long-Form Application.** By **7:00 p.m. ET on November
12, 1999**, the winning bidder must submit any necessary minor
amendments to their previously filed, long-form application for the
market in which they were the winning high bidder.[^7] Long-form
amendments (in hard copies) must be filed in accordance with 47 C.F.R.
§73.3513, with the same number of copies as the originally filed
long-form application. Amendments must be submitted to the Office of the
Secretary, TW B204, 445 12^th^ Street S.W. Washington, D.C. 20554. If
the winning bidder amends its FM application, it may also send a
courtesy copy of the amendment to James Crutchfield, Room 2-B450, at the
same street address. In accordance with Commission rules, the winning
bidder may not submit amendments that constitute a major change from
either the technical or legal proposal specified in the previously filed
long-form application. Given the length of time that many long-form
applications have been pending, the winning bidder should take into
account any relevant rule changes or procedural modifications in
supplementing their long-form applications on file. For example, the
Commission recently significantly modified its broadcast application and
licensing procedures to eliminate unwarranted regulatory burdens.[^8]
The Commission has also established streamlined procedures regarding
antenna structure registration.[^9] The Commission also amended certain
aspects of its guidelines for evaluating the effects of radio frequency
(RF) electromagnetic emissions.[^10]

The winning bidder's long-form application, as amended, will
subsequently be placed on public notice, triggering the period for the
filing of petitions to deny. Petitions to deny the long-form application
for the FM construction permit must be filed within 10 days following
issuance of the public notice announcing acceptance of the long-form
application. An opposition must be filed 5 days from the filing date of
the petition to deny and a reply is to be filed 5 days from the filing
date of the opposition. **Late-filed amendments will not be accepted
without a showing of good cause.**

**Anti-collusion rules.** To ensure the competitiveness of the auction
process, the Commission's rules prohibit applicants for the same MX
Group from communicating with each other during the auction about bids,
bidding strategies, or settlements. As

explained more fully in the Public Notice announcing Auction No.
25,[^11] this prohibition

begins with the filing of short-form applications and ends on the down
payment due date.[^12] The prohibition ends on the down payment due date
whether or not a high bidder must supplement its upfront payment to
cover its down payment. By signing their FCC Form 175 short-form
applications, applicants are certifying their compliance with Section
1.2105(c). Applicants that entered into joint bidding arrangements are
reminded that a full, post-auction disclosure is required of the terms,
conditions and parties involved in any bidding consortia, joint venture,
partnership or other agreement or arrangement it entered into prior to
the completion of bidding.[^13]

**Additional Post-Auction Filing Requirements.** Section 73.5005(a) of
the Commission's rules requires that post auction filings include the
exhibits mandated by 47 C.F.R. § 1.2107(d) (concerning the terms,
conditions and parties involved in any bidding consortia, joint venture,
partnership or other agreement or arrangement the applicant had entered
into relating to the competitive bidding process); 47 C.F.R. § 1.2110
(i) (concerning a description of how the applicant satisfies the
eligibility requirements for designated entity status); and 47 C.F.R. §
1.2112 (a) and (b) (concerning disclosure of ownership and real party in
interest information). Where applicable, such exhibits must be filed as
amendments to the previously filed long-form application and must be
submitted by no later than November 12, 1999.

\* \* \* \*

**For further information, contact:**

News Media: Meribeth McCarrick at 202-418-0654

Office of the Managing Director Michelle Bennett or Gail Glasser

(Payment, FCC Form 159 and refund at 202-418-1995

questions)

Mass Media Bureau:

Audio Services Division Lisa Scanlan at (202) 418-2700

Wireless Telecommunications Bureau, Kathy Garland, Operations or

Auctions and Industry Analysis Division Bob Reagle, Auctions Analysis

(Auction-related questions) at 717-338-2888; Bob Allen,

Legal Branch at 202-418-0660

**- FCC -**

[^1]: In the event a bidder has withdrawn one or more bids and is
    subject to a bid withdrawal payment, the bidder\'s upfront payment
    will be first applied to satisfy the withdrawal payment before being
    applied toward its. down payment

[^2]: ^?^ In cases where petitions to deny are filed, no final payment
    public notice shall be issued for associated construction permits
    until the petitions have been reviewed. In such situations, final
    payment public notices shall be issued on a case-by-case basis. As
    each case is resolved, a separate final payment Public Notice shall
    issue if warranted.

[^3]: ^?^ Copies of the FCC Form 159 may be obtained by calling the
    Commission\'s Forms Distribution Center at 1-800-418-3676 (outside
    Washington, D.C.) or 202-418-3676 (in the Washington area). Copies
    of the FCC Form 159 can also be obtained via the Internet
    (http://www.fcc.gov/formpage.html) or by Fax-On-Demand
    (202-418-2830).

[^4]: ^?^ If, subsequent to final submission of its FCC Form 175, a
    bidder has provided the Commission with a written correction of its
    Taxpayer Identification Number, the bidder should use the corrected
    number.

[^5]: *See Implementation of Section 309(j) of the Communications Act --
    Competitive Bidding for Commercial Broadcast and Instructional
    Television Fixed Service Licenses, First Report and Order* in MM
    Docket No.97-234, GC Docket No. 92-52 and GEN Docket No. 90-264, 13
    FCC Rcd 15920 (1998) ("*Broadcast First Report and Order*"), at
    Para. 86.

[^6]: *Broadcast First Report and Order* at Para. 100.

[^7]: *Broadcast First Report and Order* at Para. 85.

[^8]: ^8^ *See* *1998 Biennial Regulatory Review -- Streamlining of Mass
    Media Applications Rules and Processes, Report and Order*, MM Docket
    No. 98-43, 13 FCC Rcd 23056 (1998), *Memorandum Opinion and Order*,
    FCC 99-267 (rel. October 6, 1999).

[^9]: ^?^ *See In the Matter of Streamlining the Commission's Antenna
    Structure Clearance Procedures and Revision of Part 17 of the
    Commission's Rules Concerning Construction, Marking and Lighting of
    Antenna Structures*, *Report and Order*, WT Docket No. 95-5, 11 FCC
    Rcd 4272 (1995).

[^10]: ^?^ *See Guidelines for Evaluating the Environmental Effects of
    Radiofrequency Radiation, Second Memorandum Opinion and Order*, ET
    Docket No. 93-62, (rel. August 25, 1997).

[^11]: ^?^ "Closed Broadcast Auction; Minimum Opening Bids and Other
    Procedural Issues," *Public Notice*, DA 99-1346 (rel. July 9, 1999).

[^12]: ^?^ *See id*. at 4-5.

[^13]: ^13^ *See* 47 C.F.R *.* § 1.2107(d).