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 Federal  Communications  Commission  DA-  04-  2033 
 Before  the  Federal  Communications  Commission 
 Washington,  D.  C.  20554 


 In  the  matter  of 
 LB  Cable  Montana  LLC 
 Operator  of  Cable  Systems  in: 
 Belt,  Montana  Charlo,  Montana 
 Chester,  Montana  Darby,  Montana 
 Dutton,  Montana  Ennis,  Montana 
 Hot  Springs,  Montana  Paradise,  Montana 
 Plains,  Montana  St.  Ignatius,  Montana 
 St.  Regis,  Montana  Valier,  Montana 
 Vaughn,  Montana 


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


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 File  No.:  EB-  04-  HS-  018 


 ORDER 
 Adopted:  July  6,  2004  Released:  July  8,  2004 
 By  the  Director,  Office  of  Homeland  Security,  Enforcement  Bureau 
 1.  In  this  Order,  we  grant  LB  Cable  Montana  LLB  (Montana)  temporary  waivers  of  section  11.11(  a)  of  the  Federal  Communications  Commissions  rules  (Rules)  1  for  the  thirteen-  above  captioned 
 cable  television  systems  in  Montana.  Section  11.11(  a)  of  the  Rules  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.  2 
 2.  The  Cable  Act  of  1992  added  new  Section  624(  g)  to  the  Communications  Act  of  1934,  as  amended  3  and  required  that  cable  systems  be  capable  of  providing  EAS  alerts  to  their  subscribers.  4  In 


 1  47  C.  F.  R.    11.11(  a). 
 2  Id. 
 3  The  Communications  Act  of  1934  was  amended  by  the  Telecommunications  Act  of  1996.  Pub.  L.  No.  104-  104, 
 110  Stat.  56  (1996  Act). 
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 Federal  Communications  Commission  DA  04-  2033 
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 1994,  the  Commission  adopted  rules  requiring  cable  systems  to  participate  in  EAS.  5  In  1997,  the  Commission  amended  the  EAS  rules  to  provide  financial  relief  for  small  cable  systems.  6  The 
 Commission  declined  to  exempt  small  cable  systems  from  the  EAS  requirements  entirely,  concluding  that  such  an  exemption  would  be  inconsistent  with  the  statutory  mandate  of  Section  624(  g).  7  The  amended 
 rules  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.  8  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.  9 
 3.  On  March  2,  2004,  LB  Cable  Montana  filed  a  request  for  temporary  waivers  of  the  EAS  requirements  for  the  recently  acquired  small  cable  systems  in  rural  Montana,  asserting  that  the  cost  of 
 immediate  installation  of  EAS  equipment  in  the  thirteen  systems  would  cause  financial  hardship.  LB  Cable  Montana  states  that  it  acquired  the  thirteen  systems  in  a  bankruptcy  sale  on  February  2,  2004,  and 
 therefore,  has  not  had  enough  time  to  generate  sufficient  revenue  to  purchase  and  install  EAS  equipment  at  this  time.  Based  on  price  quotes  from  EAS  equipment  manufacturers,  LB  Cable  Montana  estimates 
 that  it  would  cost  approximately  $130,000  to  purchase  and  install  the  EAS  equipment  at  the  13  headends.  LB  Cable  Montana  asserts  that  without  the  requested  waivers,  it  may  have  to  delay  or  cancel  its  upgrades 
 and  interconnections,  which  would  delay  or  eliminate  the  delivery  of  advanced  broadband  services  to  over  1,300  rural  subscribers.  Finally,  LB  Cable  Montana  contends  that  subscribers  will  continue  to  have 
 ready  access  to  national  EAS  information  from  other  sources,  including  its  cable  system  and  over-  the-  air  reception  of  broadcast  television  and  radio  stations. 


 4.  Based  on  our  review  of  the  information  submitted  by  LB  Cable  Montana,  we  conclude  that  temporary  waivers  of  section  11.11(  a)  of  the  Rules  for  the  thirteen  above-  captioned  cable  systems, 
 are  warranted.  In  particular,  we  find  that  the  estimated  cost  of  $130,000  to  purchase  and  install  EAS  equipment  at  these  recently  acquired  cable  television  systems  could  impose  a  financial  hardship  on  LB 
 Cable  Montana. 
 5.  Accordingly,  IT  IS  ORDERED  that,  pursuant  to  sections  0.111,  0204(  b)  and  0.311  of  the  rules,  10  LB  Cable  Montana  LLCs  request  for  temporary  waivers  of  section  11.11(  a)  of  the  rules  is 


 (...  continued  from  previous  page)  4  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). 
 5  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,  10  FCC  Rcd  1786  (1994),  reconsideration  granted  in  part,  denied  in  part,  10  FCC  Rcd  11494  (1995). 


 6  Amendment  of  Part  73,  Subpart  G,  of  the  Commissions  Rules  Regarding  the  Emergency  Broadcast  System, 
 Second  Report  and  Order,  12  FCC  Rcd  15503  (1997).  7 
 Id.  at  15512-  13.  8 
 Id.  at  15516-  15518.  9 
 Id.  at  15513.  10 
 47  C.  F.  R.    0.111,  0.  204(  b)  and  0.311. 
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 GRANTED  until  October  1,  2005,  for  its  thirteen  above-  captioned  cable  television  systems  in  Montana.  11 
 6.  IT  IS  FURTHER  ORDERED  that  LB  Cable  Montana  LLC  place  a  copy  of  this  waiver  in  its  system  files. 


 7.  IT  IS  FURTHER  ORDERED  that  a  copy  of  this  Order  shall  be  sent  by  Certified  Mail  Return  Receipt  Requested  to  counsel  for  LB  Cable  Montana  LLC,  Christopher  C.  Cinnamon,  Esq., 
 Cinnamon  Muller,  307  North  Michigan  Avenue,  Suite  1020,  Chicago,  Illinois  60601. 


 FEDERAL  COMMUNICATIONS  COMMISSION 


 James  A.  Dailey  Director,  Office  of  Homeland  Security 
 Enforcement  Bureau 


 11  We  clarify  that  these  waivers  also  encompass  the  EAS  testing  and  monitoring  requirements. 
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