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 Federal  Communications  Commission  DA  02-  1748
 Before  the  Federal  Communications  Commission
 Washington,  D.  C.  20554
 In  the  Matter  of  )  )
 Cable  &  Communications  Corporation  d/  b/  a  )  File  No.  EB-  02-  TS-  049  Mid-  Rivers  Cable  Television  )
 )  Operator  of  Cable  Systems  in:  )
 )  Glendive,  Montana  )
 Sidney,  Montana  )  Roundup,  Montana  )
 Wibaux,  Montana  )  Circle,  Montana  )
 Jordan,  Montana  )  Ekalaka,  Montana  )
 Richey,  Montana  )  )
 Request  for  Waiver  of  Section  11.  11(  a)  of  the  )  Commissions  Rules  )
 ORDER
 Adopted:  July  25,  2002  Released:  July  30,  2002
 By  the  Chief,  Technical  and  Public  Safety  Division,  Enforcement  Bureau:
 1.  In  this  Order,  we  grant  Cable  &  Communications  Corporation  d.  b.  a.  Mid-  Rivers  Cable  Television  (  Mid-  Rivers)  temporary  waivers  of  Section  11.11(  a)  of  the  Commissions  Rules  (  Rules)
 for  the  each  of  the  eight  above-  captioned  cable  television  systems.  Specifically,  we  grant  a  temporary,  12-  month  waiver  of  Section  11.11(  a)  for  the  Glendive,  Montana  system,  a  temporary,  24-  month  waiver  of
 Section  11.11(  a)  for  the  Sidney,  Montana  system  and  a  temporary,  36-  month  waiver  of  Section  11.11(  a)  for  the  Roundup,  Montana;  Wibaux,  Montana;  Circle,  Montana;  Jordan,  Montana;  Ekalaka,  Montana;  and
 Richey,  Montana  systems.  Section  11.11(  a)  requires  cable  systems  serving  fewer  than  5,000  subscribers  from  a  headend  to  either  provide  national  level  EAS  messages  on  all  programmed  channels  or  install
 Emergency  Alert  System  (  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
 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
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 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  entitys  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
 entitys  audience.  8
 3.  Mid-  Rivers  filed  a  request  for  temporary  waiver  of  Section  11.11(  a)  for  each  of  the  eight  captioned  cable  systems  on  January  30,  2001.  Mid-  Rivers  seeks  a  12-  month  waiver  for  the  Glendive,
 Montana  system,  a  24-  month  waiver  for  the  Sidney,  Montana  system  and  a  36-  month  waiver  for  the  Roundup,  Montana;  Wibaux,  Montana;  Circle,  Montana;  Jordan,  Montana;  Ekalaka,  Montana;  and
 Richey,  Montana  systems.  In  support  of  its  waiver  request,  Mid-  Rivers  states  that  each  of  the  eight  systems  serves  small,  rural  communities  and  each  system  serves  between  68  and  1,445  subscribers.
 Based  on  price  quotes  provided  by  EAS  equipment  manufacturers,  Mid-  Rivers  estimates  that  it  would  cost  approximately  $9,000  to  install  EAS  equipment  at  each  of  these  systems  for  a  total  cost  of  $72,000.
 Mid-  Rivers  asserts  that  the  cost  of  installing  EAS  equipment  at  the  eight  systems  will  impose  a  substantial  financial  hardship  on  it  and  provides  financial  statements  for  2000  and  2001  in  support  of  this
 assertion.  In  addition,  Mid-  Rivers  submits  that  its  subscribers  will  continue  to  have  ready  access  to  national  EAS  information  on  at  least  one-  third  of  all  programmed  channels  carried  on  its  systems.  Mid-
 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  Commissions  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  Commissions  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.
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 Rivers  also  asserts  that  its  subscribers  will  have  access  to  EAS  information  through  over-  the-  air  reception  of  broadcast  television  and  radio  stations  and  other  sources.  Finally,  Mid-  Rivers  believes  that  it  can  fund
 EAS  equipment  for  the  eight  systems  by  phasing  them  into  compliance  over  the  next  three  years.
 4.  Based  upon  our  review  of  the  financial  data  and  other  information  submitted  by  Mid-Rivers,  we  conclude  that  a  12-  month  waiver  of  Section  11.  11(  a)  for  the  Glendive,  Montana  system,  a  24-
 month  waiver  of  Section  11.11(  a)  for  the  Sidney,  Montana  system  and  a  36-  month  waiver  of  Section  11.11(  a)  for  Roundup,  Montana;  Wibaux,  Montana;  Circle,  Montana;  Jordan,  Montana;  Ekalaka,
 Montana;  and  Richey,  Montana  systems  are  warranted.  9  In  particular,  we  find  that  the  estimated  $72,000  cost  of  EAS  equipment  for  these  small  cable  systems,  which  are  slated  for  elimination,  could  impose  a
 financial  hardship  on  Mid-  Rivers.
 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  Cable  &  Communications  Corporation  d.  b.  a.  Mid-  Rivers  Cable  Television  IS  GRANTED  a
 waiver  of  Section  11.11(  a)  of  the  Rules  until  October  1,  2003  for  its  Glendive,  Montana  cable  system,  IS  GRANTED  a  waiver  of  Section  11.11(  a)  of  the  Rules  until  October  1,  2004  for  its  Sidney,  Montana
 cable  system  and  IS  GRANTED  a  waiver  of  Section  11.11(  a)  of  the  Rules  until  October  1,  2005  for  its  Roundup,  Montana;  Wibaux,  Montana;  Circle,  Montana;  Jordan,  Montana;  Ekalaka,  Montana;  and
 Richey,  Montana  cable  systems.
 7.  IT  IS  FURTHER  ORDERED  that  Cable  &  Communications  Corporation  d.  b.  a.  Mid-Rivers  Cable  Television  place  a  copy  of  this  waiver  in  its  system  files.
 9  The  waiver  for  the  Glendive,  Montana  system  will  extend  12  months  from  October  1,  2002,  until  October  1,
 2003,  the  waiver  for  the  Sidney,  Montana  system  will  extend  24  months  from  October  1,  2002,  until  October  1,  2004  and  the  waiver  for  the  Roundup,  Montana;  Wibaux,  Montana;  Circle,  Montana;  Jordan,  Montana;  Ekalaka,
 Montana;  and  Richey,  Montana  systems  will  be  extend  36  months  from  October  1,  2002,  until  October  1,  2005.  Mid-  Rivers  also  specifically  requested  waiver  of  the  testing  and  monitoring  requirements  of  the  EAS  rules  for  these
 eight  systems.  We  clarify  that  the  waivers  we  are  granting  also  encompass  the  EAS  testing  and  monitoring  requirements.
 10  Amendment  of  Part  11  of  the  Commissions  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.
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 8.  IT  IS  FURTHER  ORDERED  that  a  copy  of  this  Order  shall  be  sent  by  Certified  Mail  Return  Receipt  Requested  to  counsel  for  Cable  &  Communications  Corporation  d.  b.  a.  Mid-  Rivers  Cable
 Television,  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
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