**Before the**

**Federal Communications Commission**

**Washington, D.C. 20554**

+----------------------------------+----+------------------------------+
| In the Matter of Application of  | *  | FCC File No. 0001109771      |
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| CHEVRON USA, INC.                | ** |                              |
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| Request for Waiver to Allow      | *  |                              |
| Temporary Fixed, Wideband        | *) |                              |
| Digital Operation in the Gulf    | ** |                              |
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+----------------------------------+----+------------------------------+

**ORDER**

**Adopted: July 30, 2004 Released: August 16, 2004**

By the Chief, Public Safety and Critical Infrastructure Division,
Wireless Telecommunications Bureau:

# INTRODUCTION

1.  We have before us an application and waiver request filed by Chevron
    USA, Inc. (Chevron) for authority to operate a new
    industrial/business radio system on four frequency pairs in the
    490-491 and 493-494 MHz bands, at temporary locations in the Gulf of
    Mexico and along the adjacent Mississippi and Louisiana
    shorelines.[^1] For the reasons discussed herein, we grant Chevron's
    waiver request.

# BACKGROUND

## Special Provisions in the Southern Louisiana-Texas Offshore Zone 

2.  In August of 1976, the Commission established a new service, the
    Offshore Radio Service (ORS).[^2] ORS was designed to meet the
    growing communications needs of the petrochemical companies
    operating in the Outer Continental Shelf region of the Southern
    Louisiana Gulf Coast, and was intended for use primarily by these
    companies.[^3]

3.  The Commission reallocated UHF-TV Channel 17 frequencies (488-494
    MHz) to the Domestic Public and Private Land Mobile Radio Services
    in the offshore Louisiana Gulf Coast area. The Commission assigned
    four megahertz of this spectrum to ORS use[^4] and assigned the
    remaining two megahertz to the Private Land Mobile Radio (PLMR)
    Services for private offshore use.[^5] In 1976, wireless data
    communications and digital signal modulation were virtually
    nonexistent; therefore, the Commission designed Section 90.315 to
    provide for general voice grade communications.

4.  In 1985, the Commission added the 476-488 MHz band (TV channels 15
    and 16) to ORS and expanded the geographical service area for ORS in
    the Gulf region.[^6] The Commission allocated a portion of the
    Channel 15 and Channel 16 spectrum for PLMR use.[^7]

5.  In 1995, the Commission adopted extensive rule changes to promote
    the efficient use of the PLMR service and facilitate the
    introduction of advanced technologies.[^8] As a result, the
    Commission amended Section 90.315 of its rules. Moreover, the
    Commission sought to improve the efficiency of spacing between
    frequency pairs in Section 90.315 by changing the spacing from 25
    kHz to 6.25 kHz and allowing applicants to request bandwidths other
    (greater) than 25 kHz.[^9] The remainder of Section 90.315 has
    remained essentially unchanged since its inception in 1976.

## Chevron's Waiver Request

6.  On December 23, 2002, Chevron applied for four 490/493 MHz frequency
    pairs at temporary locations in the Gulf of Mexico and the adjacent
    Mississippi and Louisiana coast.[^10] Chevron proposes to utilize a
    50 kHz bandwidth with a D1[^11] type emission. Chevron has
    calculated that a 50 kHz bandwidth will enable it to provide data
    and voice communications to each drill rig and lift boat in a single
    radio link. Chevron asserts that a 50 kHz bandwidth can provide one
    64 kb/s data channel and four 16 kb/s voice channels. However, the
    maximum bandwidth permitted for 470-512 MHz channels is 25 kHz[^12]
    and the Commission's rules do not authorize the use of the D1
    emission in the Southern Louisiana-Texas Offshore Zone.[^13]
    Operating at 50 kHz bandwidth would also require a waiver of the
    equipment certification requirements.[^14] In addition, Chevron
    seeks a waiver of the minimum distances between shore or offshore
    stations and TV stations, 241 km (150 mi) for co-channel[^15] and
    128 km (80 mi) for adjacent channel.[^16] Chevron's proposed
    operations would approach points located 117.8 miles from co-channel
    TV Station W17CG operating on TV Channel 17, and 51.5 miles from
    adjacent Channel TV Station KLTL-TV operating on TV Channel 18. To
    minimize potential interference, Chevron proposes to operate at no
    more than 2 watts Effective Radiated Power (ERP). Chevron submitted
    an engineering statement that illustrates interference protection to
    the respective Grade B contours.[^17] We also note that the
    Commission recently modified section 90.209 requiring all non-public
    safety stations to operate on channels with a bandwidth of 12.5 kHz
    or less beginning January 13, 2013[^18]. Consequently, the system
    that Chevron proposes to operate would appear to require a waiver of
    Sections 90.173(m), 90.203(a), 90.209, 90.210(c), 90.315(c),
    90.315(d), and 90.315(g) of the Commission's Rules.[^19]

7.  On March 25, 2003, the Wireless Telecommunications Bureau ("Bureau")
    placed Chevron's December 2002 application and waiver request on
    public notice.[^20] On April 24, 2003, the Commission received one
    comment in opposition filed by Loli, Inc. (Loli). Loli is an Arizona
    corporation and owner of a 218-219 MHz Radio Service license for the
    Gulf of Mexico. We fail to see how Chevron's proposed service in the
    488-494 MHz band adversely affects Loli's 218-219 MHz operations in
    the Gulf Region. Loli's petition does not demonstrate how the grant
    of Chevron's waiver would adversely affect its operations, which is
    cause for dismissal under 47 C.F.R. § 1.106(b)(1).[^21] We therefore
    dismiss Loli's petition without consideration.

# DISCUSSION

8.  To obtain a waiver of the Commission\'s Rules, a petitioner must
    demonstrate either that the underlying purpose of the rule(s) would
    not be served or would be frustrated by application to the present
    case and that grant of the waiver would be in the public
    interest;[^22] or that, in view of unique or unusual factual
    circumstances of the instant case, application of the rule(s) would
    be inequitable, unduly burdensome, or contrary to the public
    interest, or the applicant has no reasonable alternative.[^23] We
    find that Chevron has demonstrated that grant of the waiver is
    warranted because the circumstances presented would be frustrated by
    the application of the rules and a waiver of the rules in this
    instance would serve the public interest.

## Transmitter Certification

9.  The Commission's rules require licensees operating on the subject
    frequencies to use transmitters that have been certificated for use
    under Part 90.[^24] Chevron is seeking a waiver of this equipment
    certification requirement to use Microwave Data Systems, Inc. (MDS)
    equipment. The Commission has certified this equipment for use under
    Part 74 with 25 kHz and 50 kHz channels and under Part 90 with 25
    kHz channels.[^25] However, Chevron states it "has been unable to
    identify any existing equipment that is certified for use under Part
    90 with 50 kHz channels, presumably because 50 kHz channels
    typically are not available for use under Part 90. Thus, there are
    no alternatives available to Chevron that would comply with the
    equipment certification rule."[^26] As Chevron points out, the
    Commission has not certified equipment for 50 kHz channels because
    50 kHz channels are not available in this band. In this case, the
    Commission certified the MDS equipment for 25 kHz and 50 kHz
    operation under Part 74 and 25 kHz operation under Part 90. As such,
    we believe that granting a waiver of Section 90.203(a) does not
    undermine the purpose of the transmitter requirement since the
    equipment meets the required radiated and conducted emissions limits
    beyond the channel edge[^27], the frequency stability requirements
    of Section 90.213 and the power limits of 90.205.

##  Emission Masks

10. Chevron is seeking a waiver of the emission mask requirements set
    forth in 90.210(c) and 90.315(c). The emission masks in Section
    90.315(c) date back to the original 1976 ORS rulemaking and have not
    been updated to reflect the system presently in use.[^28] ORS was
    designed to provide general voice grade communications, which is
    what the equipment available in 1976 was capable of providing. The
    field of wireless communications, especially wireless digital
    communications has experienced a quantum leap in technology
    since 1976. In reference to the emission designators, Chevron states
    advances in technology alleviate or eliminate concerns that may have
    been present at the time a particular rule was adopted, and while
    such technological advances ultimately should be addressed through
    the rule amendment process, individualized rule waivers should be
    considered appropriate where strict application of the rule would
    serve no purpose. Such is the case here, given that Chevron\'s
    proposed operations, including the contemplated type of emissions,
    have been properly coordinated, and there is no reason to believe
    that its operations would be incompatible with those of other users
    in the relevant frequency band.

11. Furthermore, it should be noted that the equipment authorization for
    Part 90 of the proposed equipment provides for D1 emissions."[^29]
    Chevron notes, however, that the engineering test results that were
    submitted in support of the equipment certification application for
    the MDS LEDR equipment under Section 74.462(c), would satisfy an
    \"extrapolated\" 50 kHz channel equivalent emissions mask as defined
    in Section 90.210(c), for any emissions outside of the 50 kHz
    channel.[^30] Chevron further states: "It should be noted that
    because digital modulation has a \"square\" spectral dispersion, no
    digital modulation could meet the emissions mask defined in Section
    90.210(c) for analog modulation and still provide the spectral
    efficiency that is achieved by the proposed equipment. Moreover, the
    \"interference-mitigating\" purposes of Section 90.210(c) are not
    thwarted, since the measured emissions of the proposed equipment are
    below the required emissions at and beyond the channel edge."[^31]
    Section 90.315(c) allows emissions with either type "A" amplitude
    modulation or type "F" frequency modulation. Type "D1" digital
    modulation is not included in section 90.315(c), most likely because
    it was not generally available when this rule was drafted in 1976.
    We agree with Chevron's analysis and find no reason to exclude D1
    emissions from the Gulf of Mexico. In this regard, we believe that
    digital modulation most probably was not previously authorized
    because in the subject band digital equipment was not available when
    the rules were written in 1976. Under the circumstances described,
    the present case would be frustrated by the application of an
    out-of-date Section 90.315(c) rule.

## Co-channel and Adjacent Channel Protection

12. The present use of UHF-TV Channel 17 in the Gulf region was
    authorized based on certain separation distances derived to minimize
    the probability of interference to on-land UHF-TV broadcast
    stations. Chevron\'s proposed operations are co-channel with TV
    Channel 17 and adjacent channel with TV Channel 18. The distance to
    the closest Channel 17 television station (W17CG, 117.8 miles) is 32
    miles closer than the lowest specified distance of 150 miles.
    However, Chevron proposes to operate at much lower power levels than
    those set forth in Table 1 of Section 90.315. At a separation of 150
    miles, Table 1 allows an Effective Radiated Power (ERP) of 35 watts.
    Chevron proposes to operate with an ERP of 2 watts. Chevron has
    submitted a contour analysis which shows that that an operation with
    an ERP of 2 watts protects the TV Channel 17 broadcast operations in
    excess of the 65 dB required by Section 90.315(d), Table 1.[^32]
    Chevron also states: "even in the unlikelihood that Chevron would
    operate a remote site at the \"worst case\" location, it would use a
    directional antenna with its azimuth pointed in the general opposite
    direction from TV station W17CG, reducing the \"rearward\" ERP below
    2 Watts. Thus, Chevron\'s proposed ERP is well below the level that
    would potentially cause interference to any operations on TV Channel
    17."[^33] Chevron also provides a contour study to illustrate how
    its proposed operations do not cause interference to adjacent TV
    channel 18 operations, KLTLTV, located 51.5 miles away from the
    proposed facilities in Lake Charles, LA.[^34] Based on the
    information before us, we find that waiver of Sections 90.315(d) and
    90.315(g) is warranted because at the requested power levels Chevron
    has demonstrated that no interference is anticipated on adjacent or
    co-channel users in the area.

## Efficient Technology.

13. Chevron provides a convincing argument that the use of a single 50
    kHz channel pair at each location is a more spectrally efficient and
    cost-effective solution than the use of multiple, smaller bandwidth
    channels. According to Chevron, the purpose underlying the
    Commission\'s bandwidth limitation set forth in Section 90.173(m) is
    to maximize spectrum use by encouraging the implementation of
    narrowband or spectrally efficient technology. In this instance,
    however, Chevron\'s need for additional bandwidth is not based on a
    desire to use outdated or inefficient equipment. Indeed, the
    equipment proposed for use in this application provides a data rate
    that is more than 3 times the 4800 bps per 6.25 kHz bandwidth
    required by Section 90.203(j)(3) and provides the equivalent of one
    voice channel per 6.25 kHz bandwidth required by Section
    90.203(j)(5), which applies to equipment manufactured on or after
    January 1, 2005. Moreover, Chevron has determined that 25 kHz
    equipment simply will not provide the 128 kb/s capacity required to
    meet both its voice and data needs to each point of communications
    and that 50 kHz channels are therefore necessary in order to be able
    to serve each drill rig or lift boat with a single link. Presently,
    the same needs are being met through the use of multiple 12.5 kHz
    and 25 kHz bandwidth UHF radio links to each rig or barge. The
    proposed use of a single 50 kHz channel pair at each location is a
    more, rather than less, spectrally efficient approach. Chevron also
    notes that because its contemplated operations are to be at the low
    transmitter power of 1 watt, the grant of its application and
    associated rule waiver requests is unlikely to substantially limit
    potential spectrum use by other, future applicants."[^35] Chevron is
    technically correct that the operation of four voice channels and
    one data channel per 50 kHz channel pair exceeds January, 2005
    certification standards[^36] and also satisfies the Commission's
    definition of narrowband technology.[^37] Based on the facts
    presented we conclude that the system that Chevron proposes does in
    fact promote the efficient use of available spectrum.

14. In sum, we conclude, based on the record before us, that the Chevron
    waiver request should be granted with the conditions as set forth
    herein. Chevron is required to comply with all rules not
    specifically waived by this Order. We remind Chevron that they are
    required to comply with Sections 90.137(a)(2) and 90.137(b) which
    require that operations at temporary locations exceeding 180 days be
    subject to frequency coordination and any station remaining at the
    same location for greater than one year require a separate
    application specifying the fixed location. Chevron has demonstrated
    that grant of a waiver is warranted because at the requested power
    levels no interference is anticipated on adjacent or co-channel
    users in the area. Furthermore the proposed use does not limit the
    prospects for other users in the Gulf area. Grant of the waiver
    would also serve the public interest because the proposed radio
    system protects the eco-system of the Gulf of Mexico by facilitating
    Chevron's safety and environmental operations, such as oil spill
    prevention and detection. We therefore grant Chevron USA, Inc. a
    waiver of Sections 90.173(m), 90.203(a), 90.209, 90.210(c),
    90.315(c), 90.315(d), and 90.315(g) of the Commission's Rules with
    the condition that its operation cause no interference to any
    existing licensee. In regards to other licensees we specifically
    note that Chevron's operation is secondary to TV Channel 17 station
    (W17CG) and TV Channel 18 (KLTLTV) and must cease operations
    immediately if its transmissions interfere with the operations of
    these stations. Consequently, we reserve the discretion to revisit
    the continuation of such authority should we receive complaints from
    other licensees in the future.

# ORDERING CLAUSES

15. Accordingly, pursuant to Section 4(i) of the Communications Act of
    1934, as amended, 47 U.S.C. § 154(i), and Section 1.925 of the
    Commission's Rules, 47 C.F.R. § 1.925, that the waiver request filed
    by the Chevron USA, Inc., on December 23, 2002 with respect to FCC
    File No. 0001109771 IS GRANTED SUBJECT TO THE CONDITIONS set forth
    herein

16. IT IS FURTHER ORDERED, pursuant and Section 4(i) and 309(a) of the
    Communications Act of 1934, as amended, 47 U.S.C. § 154(i), 309(a),
    that the Public Safety and Critical Infrastructure Division SHALL
    PROCESS FCC File No. 0001109771 in accordance with this *Order*.

17. This action is taken under delegated authority pursuant to Sections
    0.131 and 0.331of the Commission's Rules, 47 C.F.R. §§ 0.131, 0.331.

FEDERAL COMMUNICATIONS COMMISSION

D'wana R. Terry

Chief, Public Safety and Critical Infrastructure Division

Wireless Telecommunications Bureau

[^1]: Chevron Waiver Request, FCC File Number: 0001109771, (December 23,
    2002)

[^2]: Report and Order, Docket No. 20368, 41 FR 33883 (August 11, 1976).

[^3]: The Outer Continental Shelf is the seabed extending from the three
    mile limit outward to a water depth of 200 meters (656 ft.).

[^4]: 47 C.F.R. § 22.1001.

[^5]: 47 C.F.R. § 90.315.

[^6]: Frequency Allocation to the Offshore Radio Service, FCC 84-509, 50
    FR 12021, March 27, 1985

[^7]: 47 C.F.R. § 90.315.

[^8]: *See* Replacement of Part 90 by Part 88 to Revise the Private Land
    Mobile Radio Services and Modify the Policies Governing Them,
    *Report and Order and Further Notice of Proposed Rulemaking,* PR
    Docket No. 92-235, 10 FCC Rcd 10313, ¶ 41 (1995) ("*Refarming Report
    and Order and Further Notice*").

[^9]: *Id.*

[^10]: Chevron Waiver Request, FCC File Number: 0001109771, (December
    23, 2002).

[^11]: The symbols in "D1" are defined in 47 C.F.R. § 90.210, although
    in reverse order, and emission designators have three symbols.
    Chevron requests W1D emissions. The "W" represents modulation of the
    carrier wave by two or more of the following modes: amplitude,
    angle, pulse. The "1" represents digital modulation, no subcarrier.
    The "D" represents data, telemetry, and telecommand information.

[^12]: 47 C.F.R. § 90.173(m).

[^13]: 47 C.F.R. § 90.315(c).

[^14]: 47 C.F.R. § 90.203(a).

[^15]: 47 C.F.R. § 90.315(d).

[^16]: 47 C.F.R. § 90.315(g).

[^17]: Chevron Engineering Statement, FCC File Number: 0001109771,
    (December 23, 2002)

[^18]: *See* In the Matter of Implementation of Sections 309(j) and 337
    of the Communications Act of 1934 as Amended, Promotion of Spectrum
    Efficient Technologies on Certain Part 90 Frequencies, FCC 03-34 WT
    Docket No. 99-87, RM-9332, Released February 25, 2003.

[^19]: FCC File No. 0001109771

[^20]: *See* Wireless Telecommunications Bureau Seeks Comment on Request
    for Waiver by Chevron USA, Inc. to Allow Temporary Fixed, Wideband,
    Digital, Operation in the Gulf Area, *Public Notice*, DA 03-859,
    released March 25, 2003.

[^21]: See 47 CFR § 1.106(b)(1), "Subject to the limitations set forth
    in paragraph (b)(2) of this section, any party to the proceeding, or
    any other person whose interests are adversely affected by any
    action taken by the Commission or by the designated authority, may
    file a petition requesting reconsideration of the action taken. If
    the petition is filed by a person who is not a party to the
    proceeding, it shall state with particularity the manner in which
    the person\'s interests are adversely affected by the action taken,
    and shall show good reason why it was not possible for him to
    participate in the earlier stages of the proceeding."

[^22]: 47 C.F.R. § 1.925(b)(3)(i).

[^23]: 47 C.F.R. § 1.925(b)(3)(ii).

[^24]: 47 C.F.R. § 90.203(a).

[^25]: *See* Exhibit A and Exhibit B, Chevron Waiver Request, FCC File
    Number: 0001109771, (December 23, 2002)

[^26]: Chevron Waiver Request, FCC File Number: 0001109771 (December 23,
    2002).

[^27]: *See* the "extrapolated" emission mask discussion paragraph 11
    below.

[^28]: Two digit emission designators such as F9 and A9 were updated to
    a three digit system in 1984. *See* "Provision for New System of
    Emission Designators Described in Article 4 of the International
    Telecommunication Union Radio Regulations", Docket No. 80-739; FCC
    84-510, 49 FR 48694**,** December 14, 1984

[^29]: Chevron Waiver Request, FCC File Number: 0001109771 (December 23,
    2002).

[^30]: *See* Exhibit C. FCC File No. 0001109771, Request for Rule
    Waivers (December 23, 2002).

[^31]: Chevron Waiver Request, FCC File Number: 0001109771 (December 23,
    2002).

[^32]: *See* Exhibit 2. Chevron Engineering Statement, File Number:
    0001109771, (December 23, 2002)

[^33]: Chevron Engineering Statement, File Number: 0001109771, (
    December 23, 2002)

[^34]: *See* Exhibit 5. Chevron Engineering Statement, File Number:
    0001109771, (December 23, 2002)

[^35]: Chevron Waiver Request, FCC File Number: 0001109771, (December
    23, 2002)

[^36]: *See* 47 C.F.R. § 90.203(j)(5) ("...the equipment must be capable
    of supporting a minimum data rate of 4800 bits per second per 6.25
    kHz of channel bandwidth.").

[^37]: Implementation of Sections 309(j) and 337 of the Communications
    Act of 1934 as Amended and Promotion of Spectrum Efficient
    Technologies on Certain Part 90 Frequencies, *Second Report and
    Order and Second Further Notice of Proposed Rule Making*, 18 FCC
    Rcd. 3036 at n.10 (2003), "For the purpose of this (Order)
    narrowband technology will refer to the utilization of one voice
    path per 12.5kHz of spectrum."