Before the
 Federal Communications Commission
 Washington, D.C. 20554

In the Matter of )
 )
Liability of KXOJ, Inc. )
 )
Licensee of Stations KEOJ(FM), )
Caney, KS, and KEMX(FM), )
Locust Grove, OK )
 )
For a Forfeiture )

 MEMORANDUM OPINION AND ORDER
 AND FORFEITURE ORDER

 Adopted: October 25, 1999 Released: October 27, 1999

By the Chief, Mass Media Bureau:

 1. The Commission, by the Chief, Mass Media Bureau, acting pursuant to authority delegated
by Section 0.283(c)(3) of the Commission's Rules, has before it for consideration: (1) a Notice of
Apparent Liability ("NAL") for a forfeiture in the amount of $15,000, issued on June 30, 1999, to
KXOJ, Inc. ("KXOJ"), licensee of commercial radio stations KEOJ(FM), Caney, Kansas, and
KEMX(FM), Locust Grove, Oklahoma; and (2) a July 28, 1999, response thereto submitted by KXOJ.
KXOJ requests that the forfeiture be rescinded or, alternatively, reduced. For the reasons that follow,
we deny KXOJ's request for rescission, but grant its request for partial reduction of the original forfeiture
amount, pursuant to Section 503(b) of the Communications Act of 1934, as amended, 47 U.S.C. 
503(b) (the "Communications Act").

 2. In the NAL, we determined that KXOJ had failed to maintain the stations' main studios
within their respective principal community contours, and had relocated them outside those contours
without having first obtained required Commission authorizations, in apparent violation of Section
73.1125 of the Commission's Rules. We further found that the licensee had apparently violated the
station identification rule, Section 73.1201 of the Commission's Rules, with respect to Station
KEOJ(FM), by inserting impermissible information between its call letters and community of license
during a "top-of-the hour" station identification. In support of the monetary forfeiture, the NAL
specifically cited the substantial duration of the main studio violations occurring continuously since
October 15, 1992. The NAL did not, however, impose any additional monetary fine for the licensee's
apparent violation of the station identification rule.

 3. In its response to the NAL, KXOJ contends that the forfeiture should be reduced or rescinded
because it received incorrect advice from the Commission's licensing staff, and, as a result, it was never
made aware of the need to obtain a waiver. KXOJ claims that it contacted the Commission's legal staff,
which allegedly advised that such relocations were permissible, without waiver, so long as the licensee
maintained a toll-free telephone number in each of its communities of license. KXOJ also contends that
it fully disclosed its intention to consolidate its studios in applications for "intercity relays" and "studio-
transmitter links" ("STLs") that facilitated program transmission among the stations, and that because
the Commission's licensing staff never advised it to seek a separate main studio waiver, it assumed none
was necessary. KXOJ further argues that it has taken steps to diminish the impact of the loss of the
affected communities' main studios. In this regard, KXOJ claims that it has conducted programming
ascertainment, broadcast public service announcements, and maintained its toll-free telephone numbers
and station public inspection files locally. In these ways, KXOJ asserts, it remains significantly
connected to the communities it is licensed to serve. Finally, KXOJ contends that, because it did not
intend to violate the main studio rule, no penalty should be assessed.

 4. We have reexamined the forfeiture imposed in view of the statutory factors set forth in
Section 503(b)(2)(D) of the Communications Act pertaining to the nature, circumstances, extent and
gravity of the apparent violations. We affirm the prior finding that the licensee violated the main studio
rule. For the reasons set forth below, we further conclude that, in this case, rescission is not warranted,
but that partial reduction of the monetary forfeiture proposed in the NAL, from $15,000 to $12,000, is
appropriate.

 5. KXOJ asserts that the monetary fine should be rescinded or reduced because its rule violation
was not willful or intentional. However, it is not pertinent whether a licensee's acts or omissions were
specifically intended to violate the law because the term "willful," as used in Section 503(b) of the Act,
has been interpreted to mean simply that the acts or omissions were committed knowingly. See Liability
of Cate Communications Corp., 60 RR 2d 1386 (1986), citing Midwest Radio Television, Inc., 45 FCC
1137 (1963). In this case, KXOJ does not contend that the main studio relocation occurred without its
knowledge. Further, in view of the nearly seven years' duration of the violation, there is ample evidence
in this case that the violation was, in fact, "repeated." Moreover, the unauthorized relocation cannot be
said to reflect an isolated lapse of judgment or single act of negligence. Cf. Rumbaut Management, Inc.,
DA 95-2303 (MMB 1995) (minimal forfeiture for violation of anti-lottery advertising rule appropriate
where there were only three such instances, two of which were based upon prohibited mention of
"casino" during a live interview).

 6. Furthermore, we find no merit to KXOJ's assertion that its efforts to offset the impact of the
loss of the main studios in the affected communities warrants rescission or reduction of the forfeiture.
In this particular, we note that the main studio rule specifically requires licensees to maintain local
telephone listings or toll-free numbers. Moreover, under the former rule, in effect until October 30,
1998, licensees were also obligated to maintain their public files in their respective communities of
license, even where the main studios had been located outside. However, KXOJ does not demonstrate
how its observance of these aspects of the main studio and public file inspection rules excuses its
decision to relocate the Caney, KS, and Locust Grove, OK, main studios without first obtaining proper
authority. Similarly, the licensee cites no instance where a licensee's performance of community
programming ascertainment, or the broadcast of community-based public service announcements, has
been found by the Commission to nullify or excuse a main studio rule violation, and we decline to do so
now.

 7. Nonetheless, we recognize the presence of a single mitigating circumstance in this case. It
appears that KXOJ attempted to ascertain the proper course to follow when it sought staff advice and
made application for STLs in connection with its main studio relocations. To this end, KXOJ informed
the Commission of its plans to relocate in its STL applications. KXOJ apparently understood, albeit
erroneously, that main studio relocations could be made through securing STLs, and without obtaining
separate waivers. While KXOJ's understanding was incorrect, it appears that it was seeking information
and application forms to comply with the Commission's requirement. See, e.g., Liability of Monte
Corporation, 11 FCC Rcd 20535 (MMB 1996), citing Victor Valley Broadcasting, Inc., 2 FCC 2d 495
(1966). Given these circumstances, we conclude that a $3,000 reduction in the forfeiture is appropriate.
See, e.g, Liability of Monte Corporation, supra (twenty percent reduction in forfeiture amount warranted
in similar circumstance).

 8. Finally, we note that while KXOJ has alleged generally that it possesses limited financial
resources, it has not provided evidence that the forfeiture amount in this case poses a hardship, or
otherwise demonstrated its inability to pay. See Paragraph I(B) of the Attachment to the NAL. See also
Liability of Springtown Educational Broadcasting Foundation, 7 FCC Rcd 2588 (MMB 1992).
Consequently, we have no basis to reduce or rescind the fine under this factor. We are, however, willing
to entertain a request for an installment plan. If KXOJ wishes to arrange a payment plan, it should
address its request to: Regina Dorsey, Chief, Credit & Debt Management Center, Financial Operations
Division, Office of Managing Director, Federal Communications Commission, 445 12th Street, S.W.,
Washington, D.C. 20554.

 9. Accordingly, IT IS ORDERED that, pursuant to Section 503(b) of the Communications Act
of 1934, as amended, 47 U.S.C. Sec. 503(b), KXOJ, Inc. FORFEIT to the United States the sum of
Twelve Thousand Dollars ($12,000) for the willful and repeated violation of Section 73.1125 of the
Commission's Rules, 47 C.F.R. Sec. 73.1125, as described above. KXOJ, Inc. may take any of the steps
outlined in the attachment to this letter regarding payment of the forfeiture pursuant to Section 1.80 of
the Commission's Rules.

 10. The Mass Media Bureau will send by Certified Mail -- Return Receipt Requested, copies of
this Memorandum Opinion and Order and Forfeiture Order to KXOJ, Inc.

 FEDERAL COMMUNICATIONS COMMISSION

 Roy J. Stewart
 Chief, Mass Media Bureau