**Before the**

**Federal Communications Commission**

**Washington, D.C. 20554**

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| In the matter of                 | *  | File No.: EB-04-HS-018       |
|                                  | *) |                              |
| LB Cable Montana LLC             | ** |                              |
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| Operator of Cable Systems in:    | *  |                              |
|                                  | *) |                              |
| Belt, Montana                    | ** |                              |
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| Charlo, Montana                  | *  |                              |
|                                  | *) |                              |
| Chester, Montana                 | ** |                              |
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| Darby, Montana                   | *  |                              |
|                                  | *) |                              |
| Dutton, Montana                  | ** |                              |
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| Ennis, Montana                   | *  |                              |
|                                  | *) |                              |
| Hot Springs, Montana             | ** |                              |
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| Paradise, Montana                | *  |                              |
|                                  | *) |                              |
| Plains, Montana                  | ** |                              |
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| St. Ignatius, Montana            | *  |                              |
|                                  | *) |                              |
| St. Regis, Montana               | ** |                              |
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| Valier, Montana                  | *  |                              |
|                                  | *) |                              |
| Vaughn, Montana                  | ** |                              |
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| Request for Waiver of Section    | *  |                              |
| 11.11(a) of the Commission's     | *) |                              |
| rules                            | ** |                              |
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**ORDER**

**Adopted: July 6, 2004 Released: July 8, 2004**

By the Director, Office of Homeland Security, Enforcement Bureau

1\. In this *Order*, we grant LB Cable Montana LLB (Montana) temporary
waivers of section 11.11(a) of the Federal Communications Commission's
rules (Rules)[^1] for the thirteen-above captioned cable television
systems in Montana. Section 11.11(a) of the Rules requires cable systems
serving fewer than 5,000 subscribers from a headend to either provide
national level Emergency Alert System (EAS) messages on all programmed
channels or install EAS equipment and provide a video interrupt and
audio alert on all programmed channels and EAS audio and video messages
on at least one programmed channel by October 1, 2002.[^2]

2\. The Cable Act of 1992 added new Section 624(g) to the Communications
Act of 1934, as amended[^3] and required that cable systems be capable
of providing EAS alerts to their subscribers.[^4] In 1994, the
Commission adopted rules requiring cable systems to participate in
EAS.[^5] In 1997, the Commission amended the EAS rules to provide
financial relief for small cable systems.[^6] The Commission declined to
exempt small cable systems from the EAS requirements entirely,
concluding that such an exemption would be inconsistent with the
statutory mandate of Section 624(g).[^7] The amended rules extended the
deadline for cable systems serving fewer than 10,000 subscribers to
begin complying with the EAS rules to October 1, 2002, and provided
cable systems serving fewer than 5,000 subscribers the option of either
providing national level EAS messages on all programmed channels or
installing EAS equipment and providing a video interrupt and audio alert
on all programmed channels and EAS audio and video messages on at least
one programmed channel.[^8] In addition, the Commission stated that it
would grant waivers of the EAS rules to small cable systems on a
case-by-case basis upon a showing of financial hardship.[^9]

3\. On March 2, 2004, LB Cable Montana filed a request for temporary
waivers of the EAS requirements for the recently acquired small cable
systems in rural Montana, asserting that the cost of immediate
installation of EAS equipment in the thirteen systems would cause
financial hardship. LB Cable Montana states that it acquired the
thirteen systems in a bankruptcy sale on February 2, 2004, and
therefore, has not had enough time to generate sufficient revenue to
purchase and install EAS equipment at this time. Based on price quotes
from EAS equipment manufacturers, LB Cable Montana estimates that it
would cost approximately \$130,000 to purchase and install the EAS
equipment at the 13 headends. LB Cable Montana asserts that without the
requested waivers, it may have to delay or cancel its upgrades and
interconnections, which would delay or eliminate the delivery of
advanced broadband services to over 1,300 rural subscribers. Finally, LB
Cable Montana contends that subscribers will continue to have ready
access to national EAS information from other sources, including its
cable system and over-the-air reception of broadcast television and
radio stations.

4\. Based on our review of the information submitted by LB Cable
Montana, we conclude that temporary waivers of section 11.11(a) of the
Rules for the thirteen above-captioned cable systems, are warranted. In
particular, we find that the estimated cost of \$130,000 to purchase and
install EAS equipment at these recently acquired cable television
systems could impose a financial hardship on LB Cable Montana.

5\. Accordingly, **IT IS ORDERED** that, pursuant to sections 0.111,
0204(b) and 0.311 of the rules,[^10] LB Cable Montana LLC's request for
temporary waivers of section 11.11(a) of the rules is **GRANTED** until
October 1, 2005, for its thirteen above-captioned cable television
systems in Montana.[^11]

6\. **IT IS FURTHER ORDERED** that LB Cable Montana LLC place a copy of
this waiver in its system files.

**7. IT IS FURTHER ORDERED** that a copy of this *Order* shall be sent
by Certified Mail Return Receipt Requested to counsel for LB Cable
Montana LLC, Christopher C. Cinnamon, Esq., Cinnamon Muller, 307 North
Michigan Avenue, Suite 1020, Chicago, Illinois 60601.

> FEDERAL COMMUNICATIONS COMMISSION
>
> James A. Dailey
>
> Director, Office of Homeland Security
>
> Enforcement Bureau

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# 

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[^1]: 47 C.F.R. § 11.11(a).

[^2]: *Id.*

[^3]: The Communications Act of 1934 was amended by the
    Telecommunications Act of 1996. Pub. L. No. 104-104, 110 Stat. 56
    (1996 Act).

[^4]: Cable Television Consumer Protection and Competition Act of 1992,
    Pub. L. No. 102-385, § 16(b), 106 Stat. 1460, 1490 (1992). Section
    624(g) provides that "each cable operator shall comply with such
    standards as the Commission shall prescribe to ensure that viewers
    of video programming on cable systems are afforded the same
    emergency information as is afforded by the emergency broadcasting
    system pursuant to Commission regulations ...." 47 U.S.C. § 544(g).

[^5]: *Amendment of Part 73, Subpart G, of the Commission's Rules
    Regarding the Emergency Broadcast System,* Report and Order and
    Further Notice of Proposed Rule Making, 10 FCC Rcd 1786 (1994),
    *reconsideration granted in part, denied in part*, 10 FCC Rcd 11494
    (1995).

[^6]: *Amendment of Part 73, Subpart G, of the Commission's Rules
    Regarding the Emergency Broadcast System,* Second Report and Order,
    12 FCC Rcd 15503 (1997).

[^7]: *Id.* at 15512-13.

[^8]: *Id.* at 15516-15518.

[^9]: *Id.* at 15513.

[^10]: 47 C.F.R. §§ 0.111, 0.204(b) and 0.311.

[^11]: We clarify that these waivers also encompass the EAS testing and
    monitoring requirements.