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

In the Matter of                     )
                                     )
                                     )
Richard Duncan d/b/a Anderson       )
Communications                      )   File No. 96F013
                                     )
Finder's Preference Request         )
For Station KNGZ274,  Licensed to      )
Morris Communications Inc.           )
At Greenville,  South Carolina      )


                  MEMORANDUM OPINION AND ORDER

   Adopted: October 7, 1999             Released: October 7, 1999

By the Deputy Chief, Commercial Wireless Division, Wireless Telecommunications Bureau:

                        I.  Introduction

1.     On January 23, 1997, Morris Communications, Inc. (Morris), the target licensee for Station
KNGZ274, filed a petition for reconsideration (Petition) of a decision by the Wireless Telecommunications
Bureau's Office of Operations granting a partial award of a finder's preference (Award) for frequencies
861-865.9125 MHz to Richard Duncan d/b/a Anderson Communications (Duncan).  For the reasons
discussed below, the petition for reconsideration filed by Morris is denied.

                        II.  Background

2.     On October 10, 1995, Duncan filed a finder's preference request alleging that five of the ten
frequencies for Station KNGZ274 were non-operational and permanently discontinued in violation of
section 90.157 of the Commission's rules. 47 C.F.R.  90.157.  On December 19, 1996, the Office of
Operations granted a partial award to Duncan for the five frequencies (861-865.9125 MHz) because the
finder showed that those frequencies had been discontinued from operation for more than one year in
violation section 90.157 of the Commission's rules.  47 C.F.R.  90.157.  On January 23, 1997, Morris
filed a petition for reconsideration.

3.     In its Petition, Morris alleges that the decision to grant Duncan a partial finder's preference
was based on information that Duncan provided in his Reply to the Opposition to the Finder's Preference
Request (Reply) dated January 11, 1996.  Morris claims that Duncan failed to provide proper service of the
Reply in violation of the Commission's ex parte rules.  Consequently, Morris asserts that it did not have an
opportunity to rebut statements presented in Duncan's Reply.  


                        III.  Discussion

4.     The Commission created the finder's preference program in order to relieve the scarcity of
spectrum in several frequency bands by creating "new incentives for persons to provide [the Commission
with] information about unconstructed, non-operational, or discontinued private land mobile radio
systems...."  Under the finder's preference program, a person could file a finder's preference request by
presenting the Commission with evidence leading to the cancellation of a license due to the licensee's
noncompliance with certain regulations. 

5.     When it established the finder's preference program, the Commission decided that the finder
has the burden of proving that the target licensee violated our rules relating to construction, placement- in-
operation, and continuance of operation.  Id.  In his finder's preference request, Duncan submitted
evidence, including a statement from a former employee of Morris, who attested that frequencies 861-
865.9125 MHz licensed to station KNGZ274 were not in operation.  The Office of Operations based its
decision to grant Duncan a partial award on the evidence submitted by Duncan in his finder's preference
request.  In Morris's Opposition to the Finder's Preference Request (Opposition), Morris acknowledged
that the frequencies targeted by Duncan were not in operation and stated that it was voluntarily canceling
its authorization for frequencies 861-865.9125 MHz.  Thus, we disagree with Morris that the decision was
based on statements provided to the Commission in Duncan's Reply. 

6.     Morris further argues that the Commission should not reward Duncan, as a former employee
of Morris, with a finder's preference because Duncan failed to notify the Commission of the deconstruction
of the five channels for almost six years.  The Finder's Preference Program was not designed to adjudicate
allegations such as civil claims or alleged violations of Commission rules other than the rule violations
specified in section 90.173(k) of the Commission's rules.  Therefore, we affirm the previous decision to
grant Duncan's partial finder's preference request.


                    IV.Ordering Clause

5.     Accordingly, IT IS ORDERED that, pursuant to sections 4(i) and 405 of the Communications
Act of 1934, as amended, 47 U.S.C.  154(i) and 405, and sections 0.331 and 1.106 of the Commission's
rules, 47 C.F.R.  0.331 and 1.106, the Petition for Reconsideration filed in the above referenced Finder's
Preference Case, No. 96F103, IS DENIED.


6.     IT IS FURTHER ORDERED that, the award of a finder's preference to Richard Duncan d/b/a
Anderson Communications, Inc., for frequencies 861-865.9125, Station KNGZ274, Greenville, South
Carolina, IS AFFIRMED.  Richard Duncan d/b/a Anderson Communications, Inc., has 90 days from the date
of this order to file an application with the Commission for the awarded frequencies.  If the target licensee
files an application for review of this decision, the filing of an application SHALL BE TOLLED.  


                                                       Federal Communications Commission




                                                  William W. Kunze
                              Deputy Chief, Commercial Wireless Division
                              Wireless Telecommunications Bureau