**Before the**

**Federal Communications Commission**

**Washington, D.C. 20554**

In the Matter of )

)

Treasure Lake Communications, Inc. ).

) File No. EB-02-TS-499

Operator of Cable System in: )

)

Treasure Lake, Pennsylvania )

)

Request for Waiver of Section 11.11(a) of the )

Commission's Rules )

## ORDER 

**Adopted: October 25, 2002 Released: October 30, 2002**

By the Chief, Technical and Public Safety Division, Enforcement Bureau:

1.  In this *Order*, we grant Treasure Lake Communications, Inc.
    ("Treasure Lake") a temporary, 12-month waiver of Section 11.11(a)
    of the Commission's Rules ("Rules") for the above-captioned cable
    television system. Section 11.11(a) 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.[^1]

2.  The Cable Act of 1992 added new Section 624(g) to the Communications
    Act of 1934 ("Act"), which requires that cable systems be capable of
    providing EAS alerts to their subscribers.[^2] In 1994, the
    Commission adopted rules requiring cable systems to participate in
    EAS.[^3] In 1997, the Commission amended the EAS rules to provide
    financial relief for small cable systems.[^4] The Commission
    declined to exempt small cable systems from the EAS requirements,
    concluding that such an exemption would be inconsistent with the
    statutory mandate of Section 624(g).[^5] However, the Commission
    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.[^6] 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.[^7] The Commission
    indicated that waiver requests must contain at least the following
    information: (1) justification for the waiver, with reference to the
    particular rule sections for which a waiver is sought; (2)
    information about the financial status of the requesting entity,
    such as a balance sheet and income statement for the two previous
    years (audited, if possible); (3) the number of other entities that
    serve the requesting entity's coverage area and that have or are
    expected to install EAS equipment; and (4) the likelihood (such as
    proximity or frequency) of hazardous risks to the requesting
    entity's audience.[^8]

3.  Treasure Lake filed a request for a temporary, 18-month waiver of
    Section 11.11(a) for the captioned cable system on August 30, 2002.
    In support of its waiver request, Treasure Lake states that this is
    a small, rural cable system which serves 1,453 subscribers. Based on
    price quotes provided by EAS equipment vendors, Treasure Lake
    estimates that it would cost \$7,800 to purchase and install EAS
    equipment at their system. Treasure Lake asserts that this cost will
    impose a substantial financial hardship on it and provides its
    financial statements for 2000 and 2001 in support of this assertion.
    In addition, Treasure Lake submits that its subscribers will
    continue to have ready access to national EAS information from other
    sources, including its cable systems. In this regard, Treasure Lake
    notes that its subscribers currently have access to national EAS
    messages on twenty-one of all programmed channels. Treasure Lake
    further submits that its subscribers will have access to EAS
    information through over-the-air reception of broadcast television
    and other sources.

4.  Based upon our review of the financial data and other information
    submitted by Treasure Lake, we conclude that a temporary, 12-month
    waiver of Section 11.11(a) for the captioned system is
    warranted.[^9] In particular, we find that the estimated \$7,800
    cost of EAS equipment for this small cable system could impose a
    financial hardship on Treasure Lake.

5.  We note that the Commission recently amended the EAS rules to permit
    cable systems serving fewer than 5,000 subscribers to install
    FCC-certified decoder-only units, rather than both encoders and
    decoders, if such a device becomes available.[^10] Based on comments
    from equipment manufacturers, we anticipate that such a decoder-only
    system could result in significant cost savings to small cable
    systems.[^11]

6.  Accordingly, **IT IS ORDERED** that, pursuant to Sections 0.111,
    0.204(b) and 0.311 of the Rules,[^12] Treasure Lake Communications,
    Inc. **IS GRANTED** a waiver of Section 11.11(a) of the Rules until
    October 1, 2005 for the above-captioned cable television system.

7.  **IT IS FURTHER ORDERED** that Treasure Lake Communications, Inc.,
    place a copy of this waiver in its system files.

8.  **IT IS FURTHER ORDERED** that a copy of this *Order* shall be sent
    by Certified Mail Return Receipt Requested to counsel for Treasure
    Lake Communications, Inc., Christopher C. Cinnamon, Esq., Cinnamon
    Mueller, 307 North Michigan Avenue, Suite 1020, Chicago, Illinois
    60601.

FEDERAL COMMUNICATIONS COMMISSION

Joseph P. Casey

Chief, Technical and Public Safety Division

> Enforcement Bureau

[^1]: 47 C.F.R. § 11.11(a).

[^2]: 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).

[^3]: *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*, FO Docket Nos.
    91-171/91-301, 10 FCC Rcd 1786 (1994) ("*First Report and Order*"),
    *reconsideration granted in part, denied in part*, 10 FCC Rcd 11494
    (1995).

[^4]: *Amendment of Part 73, Subpart G, of the Commission's Rules
    Regarding the Emergency Broadcast System, Second Report and Order*,
    FO Docket Nos. 91-171/91-301, 12 FCC Rcd 15503 (1997) ("*Second
    Report and Order*").

[^5]: *Id.* at 15512-13.

[^6]: *Id.* at 15516-15518.

[^7]: *Id.* at 15513.

[^8]: *Id.* at 15513, n. 59.

[^9]: The waiver will extend 12 months from October 1, 2002, until
    October 1, 2003. We clarify that the waiver we are granting also
    encompasses the EAS testing and monitoring requirements.

[^10]: *Amendment of Part 11 of the Commission's Rules Regarding the
    Emergency Alert System*, EB Docket 01-66, FCC 02-64 at ¶ 71
    (released February 26, 2002).

[^11]: One manufacturer estimated that an EAS decoder-only system can
    reduce the cost by 64% over what a cable operator would spend for an
    encoder/decoder unit. *Id.* at ¶ 70.

[^12]: 47 C.F.R. §§ 0.111, 0.204(b) and 0.311.