58700 Federal Register / Vol. 70, No. 194 / Friday, October 7, 2005 / Notices 

Joaquin Division, Long-Term Water 

Service Contract Renewal, Cities of 

Avenal, Coalinga and Huron, Fresno, 

King and Merced Counties, CA, 

Comment Period Ends: 11/25/2005, 

Contact: Joe Thompson 559–487–

5179. 

EIS No. 20050412, Final EIS, FHW, UT, 

US 6 Highway Project, Improvements 

from Interstate 15 (I–15) in Spanish 

Fork to Interstate (I–70) near Green 

River, Funding, Right-of-Way Permit 

and U.S. Army COE Section 404 

Permit, Utah, Wasatch, Carbon, Emery 

Counties, UT, Wait Period Ends: 11/ 

07/2005, Contact: Jeff Berna 801–963–

0182. 

EIS No. 20050413, Draft Supplement, 

FHW, NC, NC 12 Replacement of 

Herbert C. Bonner Bridge (Bridge No. 

11 ) New and Updated Information, 

over Oregon Inlet Construction, 

Funding, U.S. Coast Guard Permit, 

Special-Use-Permit, Right-of-Way 

Permit, U.S. Army COE Section 10 

and 404 Permit, Dare County, NC , 

Comment Period Ends: 11/23/2005, 

Contact: John F. Sullivan 919–856–

4346. 

EIS No. 20050414, Draft EIS, NRC, NY, 

Generic—License Renewal of Nuclear 

Plants for Nine Mile Point Nuclear 

Station, Units 1 and 2, Supplement 24 

to NUREG 1437, Implementation, 

Lake Ontario, Oswego County, NY, 

Comment Period Ends: 12/22/2005, 

Contact: Leslie C. Fields 301–415–

1186. 

EIS No. 20050415, Draft EIS, FRA, PA, 

Pennsylvania High-Speed Maglev 

Project, Construction between 

Pittsburgh International Airport (PIA) 

and Greensburg Area, The 

Pennsylvania Project of Magnetic 

Levitation Transportation Technology 

Deployment Program, Allegheny and 

Westmoreland Counties, PA, 

Comment Period Ends: 12/06/2005, 

Contact: David Valenstein 202–493–

6368. 

EIS No. 20050416, Draft EIS, NOA, TX, 

PROGRAMMATIC—Texas National 

Estuarine Research Reserve and 

Management Plan, Mission-Aransas 

Estuary, Site Designation, Federal 

Approval, TX, Comment Period 

Ends:11/23/2005, Contact: Laurie 

McGilvray 301–563–1158. 

EIS No. 20050417, Final Supplement, 

COE, MD, Poplar Island 

Environmental Restoration Project, 

Habitat Restoration and Dredged 

Material Capacity, Chesapeake Bay, 

Talbot County, MD, Wait Period Ends: 

11/07/2005, Contact: Mark 

Mendelsohn 410–962–9466. 

Dated: October 4, 2005. 

Robert W. Hargrove, 

Director, NEPA Compliance Division, Office 

of Federal Activities. 

[FR Doc. 05–20208 Filed 10–6–05; 8:45 am] 

BILLING CODE 6560–50–P 

FEDERAL COMMUNICATIONS 

COMMISSION 

[Report No. AUC–05–64–A (Auction No. 64); 

DA 05–2423] 

Television Station Construction 

Permits 

AGENCY: Federal Communications 

Commission. 

ACTION: Notice. 

SUMMARY: This document announces the 

auction of 11 full power television 

station construction permits scheduled 

to commence on March 15, 2006 

(Auction No. 64). This document also 

seeks comments on reserve prices or 

minimum opening bids and other 

procedures for Auction No. 64. 

DATES: Comments are due on or before 

October 14, 2005, and reply comments 

are due on or before October 21, 2005. 

ADDRESSES: Comments and reply 

comments must be sent by electronic 

mail to the following address: 

auction64@fcc.gov. Parties who file also 

by paper must file an original and four 

copies of each filing. U.S. Postal Service 

first class, express or priority mail must 

be addressed to the Office of the 

Secretary, 445 12th Street, SW., 

Washington, DC 20054. 

FOR FURTHER INFORMATION CONTACT: For 

legal questions: Lynne Milne at (202) 

418–0660. For general auction 

questions: Debbie Smith or Lisa Stover 

at (717) 338–2888. For service rule 

questions: Shaun Maher at (202) 418–

2324 or Shaleim Henry at (202) 418–

1600. 

SUPPLEMENTARY INFORMATION: This is a 

summary of the Auction No. 64 

Comment Public Notice released on 

September 23, 2005. The complete text 

of the Auction No. 64 Comment Public 

Notice, including attachments and any 

related Commission documents, is 

available for public inspection and 

copying from 8 a.m. to 4:30 p.m. 

Monday through Thursday or from 8 

a.m. to 11:30 a.m. on Friday at the FCC 

Reference Information Center, Portals II, 

445 12th Street, SW., Room CY–A257, 

Washington, DC 20554. The Auction No. 

64 Comment Public Notice and related 

Commission documents may also be 

purchased from the Commission’s 

duplicating contractor, Best Copy and 

Printing, Inc. (BCPI), Portals II, 445 12th 

Street, SW., Room CY–B402, 

Washington, DC, 20554, telephone 202–

488–5300, facsimile 202–488–5563, or 

BCPI Web site: http:// 

www.BCPIWEB.com. When ordering 

documents from BCPI, please provide 

the appropriate FCC document number, 

for example, DA 05–2423 for the 

Auction No. 64 Comment Public Notice. 

The Auction No. 64 Comment Public 

Notice and related documents are also 

available on the Internet at the 

Commission’s Web site: http:// 

wireless.fcc.gov/auctions/64/. 

I. Television Construction Permits in 

Auction No. 64 

A. Open Construction Permits 

1. By the Auction No. 64 Comment 

Public Notice, the Wireless 

Telecommunications Bureau and the 

Media Bureau (collectively referred to as 

the Bureaus) announce that the ten 

construction permits listed in 

Attachment A of the Auction No. 64 

Comment Public Notice as open are 

available to any interested party. Longform applications (FCC Forms 301) were 

filed previously for some of these 

stations. The pending applications for 

these stations are listed in Attachment 

A of the Auction No. 64 Comment 

Public Notice. Any party filing for a 

station with a pending application 

should understand that it is likely that 

its application will be mutually 

exclusive with the previously-filed 

application. Even if there is no pending 

long-form application for a station listed 

in Attachment A of the Auction No. 64 

Comment Public Notice, applicants 

specifying the same construction permit 

will be considered mutually exclusive 

for auction purposes. Once mutual 

exclusivity exists for auction purposes, 

even if only one applicant for the same 

construction permit in Auction No. 64 

submits an upfront payment, that 

applicant is required to submit a bid in 

order to obtain the construction permit. 

Any applicant that submits a short-form 

application that is accepted for filing 

but fails to timely submit an upfront 

payment will retain its status as an 

applicant in Auction No. 64 and will 

remain subject to the Commission’s 

anti-collusion rule, 47 CFR 1.2105(c), 

but, having purchased no bidding 

eligibility, will not be eligible to bid. 

2. The Commission’s competitive 

bidding rules will be used to select 

among mutually exclusive applicants 

for these 10 construction permits in 

Auction No. 64. Those wishing to 

participate in the auction, including 

those entities listed in Attachment A of 

the Auction No. 64 Comment Public 

Federal Register / Vol. 70, No. 194 / Friday, October 7, 2005 / Notices 58701 

Notice with a pending long-form 

application, will be required to file a 

short-form application (FCC Form 175) 

prior to the short-form deadline which 

will be announced in a subsequent 

public notice. 

B. Closed Construction Permit 

3. The construction permit listed in 

Attachment B of the Auction No. 64 

Comment Public Notice, identified as 

station TV–NTSC011–51, is the subject 

of pending, mutually exclusive 

applications for a new full power analog 

television station that were filed prior to 

July 1, 1997. The Commission’s 

competitive bidding rules will be used 

in Auction No. 64 to select among 

mutually exclusive applicants for 

construction permit TV–NTSC011–51. 

Pursuant to the Congressional directive 

of 47 U.S.C. Section 309(l)(3) and 

procedures set forth in the Broadcast 

Auctions First Report and Order, 63 FR 

48615 (September 11, 1998), 

participation in competitive bidding for 

a construction permit for station TV–

NTSC011–51 will be limited to those 

nine applicants identified in 

Attachment B of the Auction No. 64 

Comment Public Notice: Edward I. St. 

Pe, Fant Broadcasting Development, 

LLC, George S. Flinn, Jr., KB 

Communications Corp., KM 

Communications, Inc., Marri 

Broadcasting, LP, Natchez Trace 

Broadcasting Company, United 

Television, Inc., and Winstar 

Broadcasting Corp. 

C. FRN Submission Requirement 

4. The nine applicants identified in 

Attachment B of the Auction No. 64 

Comment Public Notice that wish to 

participate in the auction are required to 

file a short-form application (FCC Form 

175) and select TV–NTSC011–51 prior 

to the short-form deadline which will be 

announced in a subsequent public 

notice. In addition, each applicant 

identified in Attachment B of the 

Auction No. 64 Comment Public Notice 

that wishes to remain eligible for 

competitive bidding for station TV–

NTSC011–51 must provide its FCC 

Registration Number (FRN) prior to 5 

p.m. Eastern Time (ET) on November 

16, 2005. An FRN for an applicant 

identified in Attachment B is necessary 

in order for the FCC Auction System to 

display TV–NTSC011–51 in the 

construction permit selection list on its 

electronic short-form application. If an 

applicant fails to provide this 

information in the prescribed manner 

and before the deadline specified, the 

applicant will not be able to select a 

construction permit for station TV–

NTSC011–51 in its electronic short-form 

application, its long-form application 

will be dismissed, and it will no longer 

be eligible for competitive bidding for a 

construction permit for station TV–

NTSC011–51. 

5. To submit an FRN for association 

with construction permit TV–NTSC011–

51, each applicant listed in Attachment 

B of the Auction No. 64 Comment 

Public Notice must provide, prior to 5 

p.m. ET on November 16, 2005, its 

precise applicant name and FRN in an 

e-mail to auction64@fcc.gov or by 

facsimile to Kathryn Garland at (717) 

338–2850. Applicants that do not have 

an FRN must obtain one by registering 

using the FCC’s Commission 

Registration system (CORES). To access 

CORES, click on the CORES link under 

Related Sites on the FCC Auctions page 

at http://wireless.fcc.gov/auctions/. 

Next, follow the directions provided to 

register and receive an FRN. Each 

applicant should retain this number and 

password and keep such information 

strictly confidential. 

6. Interested parties should note that 

some of the stations listed in 

Attachment A of the Auction No. 64 

Comment Public Notice are single 

channel, digital-only television stations. 

Those stations are identified in 

Attachment A of the Auction No. 64 

Comment Public Notice as DTV. These 

stations must be operated in digital 

television mode. Those stations 

indicated in Attachments A and B of the 

Auction No. 64 Comment Public Notice 

as NTSC are single-channel stations that 

must be operated as either NTSC analog 

stations or, if they meet the 

Commission’s interference 

requirements, may be operated as DTV 

stations. 

7. To allow an adequate period of 

time before issuance of bidding rules, to 

permit notice and comment on 

proposed auction procedures, and to 

ensure that potential bidders have 

adequate time to familiarize themselves 

with the specific rules that will govern 

the day-to-day conduct of an auction, 

the Bureaus seek comment on a variety 

of auction-specific procedures prior to 

the start of Auction No. 64. 

II. Auction Structure 

A. Simultaneous Multiple-Round 

Auction Design 

8. Auction No. 64 will use the FCC’s 

Integrated Spectrum Auction System 

(ISAS or FCC Auction System), a 

redesign of the previous auction 

application and bidding systems. The 

Bureaus propose to award all 

construction permits included in 

Auction No. 64 in a simultaneous 

multiple-round auction. As described 

further below, this methodology offers 

every construction permit for bid at the 

same time with successive bidding 

rounds in which eligible bidders may 

place bids. That is, bidding will remain 

open on all construction permits until 

bidding stops on every construction 

permit. The Bureaus seek comment on 

this proposal. 

B. Upfront Payments and Bidding 

Eligibility 

9. The Bureaus have delegated 

authority and discretion to determine an 

appropriate upfront payment for each 

construction permit being auctioned, 

taking into account such factors as the 

efficiency of the auction process and the 

potential value of similar spectrum. As 

described further below, the upfront 

payment is a refundable deposit made 

by each bidder to establish eligibility to 

bid on construction permits. Upfront 

payments related to the specific 

spectrum subject to auction protect 

against frivolous or insincere bidding 

and provide the Commission with a 

source of funds from which to collect 

payments owed at the close of the 

auction. With these guidelines in mind, 

the Bureaus propose the schedule of 

upfront payments for each construction 

permit as set forth in Attachments A 

and B of the Auction No. 64 Comment 

Public Notice. The Bureaus seek 

comment on this proposal. 

10. The Bureaus further propose that 

the amount of the upfront payment 

submitted by a bidder will determine 

the maximum number of bidding units 

on which a bidder may place bids. This 

limit is a bidder’s initial bidding 

eligibility. Each construction permit is 

assigned a specific number of bidding 

units equal to the upfront payment 

listed in Attachments A and B of the 

Auction No. 64 Comment Public Notice, 

on a bidding unit per dollar basis. 

Bidding units for a given construction 

permit do not change as prices rise 

during the auction. A bidder’s upfront 

payment is not attributed to specific 

construction permits. Rather, a bidder 

may place bids on any combination of 

construction permits as long as the total 

number of bidding units associated with 

those construction permits does not 

exceed the bidder’s current eligibility. 

In order to bid on a construction permit, 

qualified bidders must have an 

eligibility level that meets the number of 

bidding units assigned to that 

construction permit. Eligibility cannot 

be increased during the auction; it can 

only remain the same or decrease. Thus, 

in calculating its upfront payment 

amount, an applicant must determine 

the maximum number of bidding units 

on which it may wish to bid (or hold 

58702 Federal Register / Vol. 70, No. 194 / Friday, October 7, 2005 / Notices 

provisionally winning bids) in any 

single round, and submit an upfront 

payment amount covering that total 

number of bidding units. Provisionally 

winning bids are bids that would 

become final winning bids if the auction 

were to close in that given round. The 

Bureaus seek comment on this proposal. 

C. Activity Rules 

11. In order to ensure that the auction 

closes within a reasonable period of 

time, an activity rule requires bidders to 

bid actively throughout the auction, 

rather than wait until late in the auction 

before participating. A bidder’s activity 

will be the sum of the bidding units 

associated with the construction permits 

upon which it places a bid during the 

current round and the bidding units 

associated with the construction permits 

upon which it holds provisionally 

winning bids. Bidders are required to be 

active on a specific percentage of their 

current bidding eligibility during each 

round of the auction. Failure to 

maintain the requisite activity level will 

result in the use of an activity rule 

waiver, if any remain, or a reduction in 

the bidder’s eligibility, possibly 

curtailing the bidder’s ability to bid on 

some construction permits or 

eliminating the bidder from further 

bidding in the auction. 

12. The Bureaus propose to divide the 

auction into two stages, each 

characterized by a different activity 

requirement. The auction will start in 

Stage One. The Bureaus propose that the 

auction generally will advance from 

Stage One to Stage Two when the 

auction activity level, as measured by 

the percentage of bidding units 

receiving new provisionally winning 

bids, is approximately twenty percent or 

below for three consecutive rounds of 

bidding. However, the Bureaus further 

propose that the Bureaus retain the 

discretion to change stages unilaterally 

by announcement during the auction. In 

exercising this discretion, the Bureaus 

will consider a variety of measures of 

bidder activity, including, but not 

limited to, the auction activity level, the 

percentage of construction permits (as 

measured in bidding units) on which 

there are new bids, the number of new 

bids, and the percentage increase in 

revenue. For example, when monitoring 

activity for determining when to change 

stages, we may consider the percentage 

of bidding units of the construction 

permits receiving new provisionally 

winning bids, excluding any FCC-held 

construction permits. The Bureaus seek 

comment on these proposals. 

13. For Auction No. 64, the Bureaus 

propose the following activity 

requirements: 

Stage One: In each round of the first 

stage of the auction, a bidder desiring to 

maintain its current bidding eligibility 

is required to be active on construction 

permits representing at least 75 percent 

of its current bidding eligibility. Failure 

to maintain the requisite activity level 

will result in a reduction in the bidder’s 

bidding eligibility in the next round of 

bidding (unless an activity rule waiver 

is used). During Stage One, a bidder’s 

reduced eligibility for the next round 

will be calculated by multiplying the 

bidder’s current round activity by fourthirds (4/3). 

Stage Two: In each round of the 

second stage, a bidder desiring to 

maintain its current bidding eligibility 

is required to be active on 95 percent of 

its current bidding eligibility. Failure to 

maintain the requisite activity level will 

result in a reduction in the bidder’s 

bidding eligibility in the next round of 

bidding (unless an activity rule waiver 

is used). During Stage Two, a bidder’s 

reduced eligibility for the next round 

will be calculated by multiplying the 

bidder’s current round activity by 

twenty-nineteenths (20/19). 

14. The Bureaus seek comment on 

these proposals. Commenters that 

believe these activity rules should be 

modified should explain their reasoning 

and comment on the desirability of an 

alternative approach. Commenters are 

advised to support their claims with 

analyses and suggested alternative 

activity rules. 

D. Activity Rule Waivers and Reducing 

Eligibility 

15. Use of an activity rule waiver 

preserves the bidder’s current bidding 

eligibility despite the bidder’s activity 

in the current round being below the 

required minimum level. An activity 

rule waiver applies to an entire round 

of bidding and not to a particular 

construction permit. Activity rule 

waivers can be either proactive or 

automatic and are principally a 

mechanism for auction participants to 

avoid the loss of bidding eligibility in 

the event that exigent circumstances 

prevent them from placing a bid in a 

particular round. 

16. The FCC Auction System assumes 

that bidders with insufficient activity 

would prefer to apply an activity rule 

waiver (if available) rather than lose 

bidding eligibility. Therefore, the 

system will automatically apply a 

waiver at the end of any bidding round 

where a bidder’s activity level is below 

the minimum required unless: (1) the 

bidder has no activity rule waivers 

available; or (2) the bidder overrides the 

automatic application of a waiver by 

reducing eligibility, thereby meeting the 

minimum requirement. If a bidder has 

no waivers remaining and does not 

satisfy the required activity level, its 

eligibility will be permanently reduced, 

possibly eliminating the bidder from 

further bidding in the auction. 

17. A bidder with insufficient activity 

may wish to reduce its bidding 

eligibility rather than use an activity 

rule waiver. If so, the bidder must 

affirmatively override the automatic 

waiver mechanism during the bidding 

round by using the reduce eligibility 

function in the FCC Auction System. In 

this case, the bidder’s eligibility is 

permanently reduced to bring the bidder 

into compliance with the activity rules 

as described above. Once eligibility has 

been reduced, a bidder will not be 

permitted to regain its lost bidding 

eligibility. 

18. A bidder may apply an activity 

rule waiver proactively as a means to 

keep the auction open without placing 

a bid. If a bidder proactively applies an 

activity rule waiver (using the apply 

waiver function in the FCC Auction 

System) during a bidding round in 

which no bids or withdrawals are 

submitted, the auction will remain open 

and the bidder’s eligibility will be 

preserved. An automatic waiver applied 

by the FCC Auction System in a round 

in which there are no new bids or 

withdrawals will not keep the auction 

open. A bidder cannot submit a 

proactive waiver after submitting a bid 

in a round, and submitting a proactive 

waiver will preclude a bidder from 

placing any bids in that round. 

Applying a waiver is irreversible; once 

a proactive waiver is submitted that 

waiver cannot be unsubmitted, even if 

the round has not yet closed. 

19. The Bureaus propose that each 

bidder in Auction No. 64 be provided 

with three activity rule waivers that may 

be used at the bidder’s discretion during 

the course of the auction as set forth 

above. The Bureaus seek comment on 

this proposal. 

E. Information Relating to Auction 

Delay, Suspension, or Cancellation 

20. For Auction No. 64, the Bureaus 

propose that, by public notice or by 

announcement during the auction, the 

Bureaus may delay, suspend, or cancel 

the auction in the event of natural 

disaster, technical obstacle, evidence of 

an auction security breach, unlawful 

bidding activity, administrative or 

weather necessity, or for any other 

reason that affects the fair and efficient 

conduct of competitive bidding. In such 

cases, the Bureaus, in their sole 

discretion, may elect to resume the 

auction starting from the beginning of 

the current round, resume the auction 

Federal Register / Vol. 70, No. 194 / Friday, October 7, 2005 / Notices 58703 

starting from some previous round, or 

cancel the auction in its entirety. 

Network interruption may cause the 

Bureaus to delay or suspend the 

auction. The Bureaus emphasize that 

exercise of this authority is solely 

within the discretion of the Bureaus, 

and its use is not intended to be a 

substitute for situations in which 

bidders may wish to apply their activity 

rule waivers. The Bureaus seek 

comment on this proposal. 

III. Bidding Procedures 

A. Round Structure 

21. The Commission will conduct 

Auction No. 64 over the Internet. 

Alternatively, telephonic bidding will 

also be available. The toll-free telephone 

number for telephonic bidding will be 

provided to qualified bidders. 

22. The initial bidding schedule will 

be announced in a public notice to be 

released at least one week before the 

start of the auction. The simultaneous 

multiple-round format will consist of 

sequential bidding rounds, each 

followed by the release of round results. 

Details on viewing round results, 

including the location and format of 

downloadable round results files will be 

included in the same public notice. 

23. The Bureaus have the discretion to 

change the bidding schedule in order to 

foster an auction pace that reasonably 

balances speed with the bidders’ need to 

study round results and adjust their 

bidding strategies. The Bureaus may 

increase or decrease the amount of time 

for the bidding rounds and review 

periods, or the number of rounds per 

day, depending upon the bidding 

activity level and other factors. The 

Bureaus seek comment on this proposal. 

B. Reserve Price or Minimum Opening 

Bid 

24. The Bureaus seek comment on the 

use of minimum opening bid amounts 

and/or reserve prices in Auction No. 64. 

Normally, a reserve price is an absolute 

minimum price below which an item 

will not be sold in a given auction. 

Reserve prices can be either published 

or unpublished. A minimum opening 

bid amount, on the other hand, is the 

minimum bid price set at the beginning 

of the auction below which no bids are 

accepted. It is generally used to 

accelerate the competitive bidding 

process. Also, the auctioneer often has 

the discretion to lower the minimum 

opening bid amount later in the auction. 

It is also possible for the minimum 

opening bid amount and the reserve 

price to be the same amount. 

25. The Bureaus propose to establish 

minimum opening bid amounts for 

Auction No. 64. The Bureaus believe a 

minimum opening bid amount, which 

has been used in other auctions, is an 

effective bidding tool. 

26. For Auction No. 64, the proposed 

minimum opening bids were 

determined by taking into account 

various factors related to the efficiency 

of the auction and the potential value of 

the spectrum, including the type of 

service, proposed population coverage, 

market size, industry cash flow data and 

recent broadcast transactions. The 

specific minimum opening bid for each 

construction permit available in 

Auction No. 64 is set forth in 

Attachments A and B of the Auction No. 

64 Comment Public Notice. The Bureaus 

seek comment on this proposal. 

27. If commenters believe that these 

minimum opening bid amounts will 

result in substantial numbers of unsold 

construction permits, or are not 

reasonable amounts, or should instead 

operate as reserve prices, they should 

explain why this is so, and comment on 

the desirability of an alternative 

approach. Commenters are advised to 

support their claims with valuation 

analyses and suggested reserve prices or 

minimum opening bid amount levels or 

formulas. In establishing the minimum 

opening bid amounts, the Bureaus 

particularly seek comment on such 

factors as the potential value of the 

spectrum being auctioned including the 

type of service, proposed population 

coverage, market size, and other 

relevant factors that could reasonably 

have an impact on valuation of the 

broadcast spectrum. The Bureaus also 

seek comment on whether, consistent 

with 47 U.S.C. Section 309(j), the public 

interest would be served by having no 

minimum opening bid amount or 

reserve price. 

C. Bid Amounts 

28. In each round, eligible bidders 

will be able to place bids on a particular 

construction permit in any of nine 

different amounts, if a bidder has 

sufficient eligibility to place a bid on the 

particular construction permit. The FCC 

Auction System interface will list the 

nine acceptable bid amounts for each 

construction permit. The nine 

acceptable bid amounts for each 

construction permit consist of the 

minimum acceptable bid amount 

calculated using a smoothing formula 

and additional amounts calculated 

using a bid increment percentage. 

i. Minimum Acceptable Bid Amounts 

29. The minimum acceptable bid 

amount for a construction permit will be 

equal to its minimum opening bid 

amount until there is a provisionally 

winning bid for the construction permit. 

After there is a provisionally winning 

bid for a construction permit, the 

minimum acceptable bid amount for 

that construction permit will be equal to 

the amount of the provisionally winning 

bid plus an additional amount 

calculated using a smoothing formula, 

as described below. The Bureaus will 

round the result using the Bureaus 

standard rounding procedures, in which 

results above $10,000 are rounded to the 

nearest $1,000, results below $10,000 

but above $1,000 are rounded to the 

nearest $100, and results below $1,000 

are rounded to the nearest $10. 

30. For Auction No. 64, the Bureaus 

propose to calculate minimum 

acceptable bid amounts by using a 

smoothing formula, as was done in 

several other auctions. The smoothing 

formula calculates minimum acceptable 

bid amounts by first calculating a 

percentage increment. The percentage 

increment for each construction permit 

is a function of bidding activity on that 

construction permit in prior rounds; 

therefore, a construction permit that has 

received many bids will have a higher 

percentage increment than a 

construction permit that has received 

few bids. 

31. The calculation of the percentage 

increment used to determine the 

minimum acceptable bid amounts for 

each construction permit for the next 

round is made at the end of each round. 

The computation is based on an activity 

index, which is a weighted average of 

the number of bids in that round and 

the activity index from the prior round, 

except for Round 1 calculations, for 

which the activity index from the prior 

round is set at 0 because there is no 

prior round. The current activity index 

is equal to a weighting factor times the 

number of bidders that submit bids on 

the construction permit in the most 

recent bidding round plus one minus 

the weighting factor times the activity 

index from the prior round. The activity 

index is then used to calculate a 

percentage increment by multiplying a 

minimum percentage increment by one 

plus the activity index with that result 

being subject to a maximum percentage 

increment. The Commission will 

initially set the weighting factor at 0.5, 

the minimum percentage increment at 

0.1 (10%), and the maximum percentage 

increment at 0.2 (20%). Hence, at these 

initial settings, the percentage 

increment will fluctuate between 10% 

and 20% depending upon the number of 

bids for the construction permit. 

Smoothing formula equations and 

examples are shown in Attachment C of 

the Auction No. 64 Comment Public 

Notice. 

58704 Federal Register / Vol. 70, No. 194 / Friday, October 7, 2005 / Notices 

32. In the case of a construction 

permit for which the provisionally 

winning bid has been withdrawn, the 

minimum acceptable bid amount will 

equal the second highest bid received 

for the construction permit. 

ii. Additional Bid Amounts 

33. The acceptable bid amounts in 

addition to the minimum acceptable bid 

amount for each construction permit are 

calculated using a bid increment 

percentage. The first additional 

acceptable bid amount equals the 

minimum acceptable bid amount times 

one plus the bid increment percentage, 

rounded—e.g., if the increment 

percentage is 10 percent, the calculation 

is (minimum acceptable bid amount) * 

(1 + 0.10), rounded, or (minimum 

acceptable bid amount) * 1.10, rounded; 

the second additional acceptable bid 

amount equals the minimum acceptable 

bid amount times one plus two times 

the bid increment percentage, rounded, 

or (minimum acceptable bid amount) * 

1.20, rounded; the third additional 

acceptable bid amount equals the 

minimum acceptable bid amount times 

one plus three times the bid increment 

percentage, rounded, or (minimum 

acceptable bid amount) * 1.30, rounded; 

etc. 

34. The Bureaus retain the discretion 

to change the minimum acceptable bid 

amounts, the smoothing formula 

parameters, and the bid increment 

percentage if they determine that 

circumstances so dictate. The Bureaus 

will do so by announcement in the FCC 

Auction System during the auction. The 

Bureaus seek comment on these 

proposals. 

D. Provisionally Winning Bids 

35. At the end of a bidding round, a 

provisionally winning bid amount for 

each construction permit will be 

determined based on the highest bid 

amount received for the construction 

permit. In the event of identical high bid 

amounts being submitted on a 

construction permit in a given round 

(i.e., tied bids), the Bureaus will use a 

random number generator to select a 

single provisionally winning bid from 

among the tied bids. If the auction were 

to end with no higher bids being placed 

for that construction permit, the 

winning bidder would be the one that 

placed the selected provisionally 

winning bid. However, the remaining 

bidders, as well as the provisionally 

winning bidder, can submit higher bids 

in subsequent rounds. If any bids are 

received on the construction permit in 

a subsequent round, the provisionally 

winning bid again will be determined 

by the highest bid amount received for 

the construction permit. 

36. A provisionally winning bid will 

remain the provisionally winning bid 

until there is a higher bid on the same 

construction permit at the close of a 

subsequent round, unless the 

provisionally winning bid is withdrawn. 

Bidders are reminded that provisionally 

winning bids confer activity. 

E. Information Regarding Bid Removal 

and Bid Withdrawal 

37. For Auction No. 64, the Bureaus 

propose the following bid removal and 

bid withdrawal procedures. Before the 

close of a bidding round, a bidder has 

the option of removing any bid placed 

in that round. By removing bids in the 

FCC Auction System, a bidder may 

effectively unsubmit any bid placed in 

that round. Once a round closes, a 

bidder may no longer remove a bid. In 

contrast to the bid withdrawal 

provisions described below, a bidder 

removing a bid placed in the same 

round is not subject to a withdrawal 

payment. 

38. For auctions for which bid 

withdrawals are permitted, a bidder 

may withdraw its provisionally winning 

bids using the withdraw bids function 

in the FCC Auction System. A bidder 

that withdraws its provisionally 

winning bid(s) is subject to the bid 

withdrawal payment provisions of 47 

CFR 1.2104(g) and 1.2109. The Bureaus 

seek comment on these bid removal and 

bid withdrawal procedures. 

39. In the Part 1 Third Report and 

Order, 63 FR 2315 (Jan. 15, 1998), the 

Commission explained that allowing bid 

withdrawals facilitates efficient 

aggregation of licenses and construction 

permits and the pursuit of efficient 

backup strategies as information 

becomes available during the course of 

an auction. The Commission noted, 

however, that, in some instances, 

bidders may seek to withdraw bids for 

improper reasons. The Bureaus, 

therefore, have discretion in managing 

the auction to limit the number of 

withdrawals to prevent any bidding 

abuses. The Commission stated that the 

Bureaus should assertively exercise 

their discretion, consider limiting the 

number of rounds in which bidders may 

withdraw bids, and prevent bidders 

from bidding on a particular 

construction permit if the Bureaus find 

that a bidder is abusing the 

Commission’s bid withdrawal 

procedures. 

40. Applying this reasoning, the 

Bureaus propose to limit each bidder in 

Auction No. 64 to withdrawing 

provisionally winning bids in no more 

than one round during the course of the 

auction. To permit a bidder to withdraw 

bids in more than one round may 

encourage insincere bidding or the use 

of withdrawals for anti-competitive 

purposes. The one round in which 

withdrawals may be used will be at the 

bidder’s discretion; withdrawals 

otherwise must be in accordance with 

the Commission’s rules. There is no 

limit on the number of provisionally 

winning bids that may be withdrawn in 

the one round in which a bidder’s one 

withdrawal is used. Withdrawals will 

remain subject to the bid withdrawal 

payment provisions specified in the 

Commission’s rules. The Bureaus seek 

comment on this proposal. The Bureaus 

also invite comments on whether bid 

withdrawals should not be permitted in 

Auction No. 64 in light of the sitespecific nature of television broadcast 

authorizations, the small number of 

construction permits available in this 

auction, or other factors. 

F. Stopping Rule 

41. The Bureaus have discretion to 

establish stopping rules before or during 

multiple round auctions in order to 

terminate the auction within a 

reasonable time. For Auction No. 64, the 

Bureaus propose to employ a 

simultaneous stopping rule approach. A 

simultaneous stopping rule means that 

all construction permits remain 

available for bidding until bidding 

closes simultaneously on all 

construction permits. 

42. Bidding will close simultaneously 

on all construction permits after the first 

round in which no bidder submits any 

new bids, applies a proactive waiver, or 

places any withdrawals. Thus, unless 

circumstances dictate otherwise, 

bidding will remain open on all 

construction permits until bidding stops 

on every construction permit. 

43. However, the Bureaus propose to 

retain the discretion to exercise any of 

the following options during Auction 

No. 64: 

a. Use a modified version of the 

simultaneous stopping rule. The 

modified stopping rule would close the 

auction for all construction permits after 

the first round in which no bidder 

applies a waiver, places a withdrawal or 

submits any new bids on any 

construction permit for which it is not 

the provisionally winning bidder. Thus, 

absent any other bidding activity, a 

bidder placing a new bid on a 

construction permit for which it is the 

provisionally winning bidder would not 

keep the auction open under this 

modified stopping rule. The Bureaus 

further seek comment on whether this 

modified stopping rule should be used 

Federal Register / Vol. 70, No. 194 / Friday, October 7, 2005 / Notices 58705 

at any time or only in stage two of the 

auction. 

b. Keep the auction open even if no 

bidder submits any new bids, applies a 

waiver or withdraws any provisionally 

winning bids. In this event, the effect 

will be the same as if a bidder had 

applied a waiver. The activity rule, 

therefore, will apply as usual and a 

bidder with insufficient activity will 

either lose bidding eligibility or use a 

remaining activity rule waiver. 

c. Declare that the auction will end 

after a specified number of additional 

rounds (which is called a special 

stopping rule). If the Bureaus invoke 

this special stopping rule, it will accept 

bids in the specified final round(s) and 

the auction will close. 

44. The Bureaus propose to exercise 

these options only in certain 

circumstances, for example, where the 

auction is proceeding very slowly, there 

is minimal overall bidding activity, or it 

appears likely that the auction will not 

close within a reasonable period of time. 

Before exercising these options, the 

Bureaus are likely to attempt to increase 

the pace of the auction by, for example, 

increasing the number of bidding 

rounds per day, and/or increasing the 

minimum acceptable bid percentage for 

the limited number of construction 

permits on which there is still a high 

level of bidding activity. The Bureaus 

seek comment on these proposals. 

IV. Due Diligence 

45. Potential bidders are solely 

responsible for investigating and 

evaluating all technical and market 

place factors that may have a bearing on 

the value of the broadcast facilities in 

this auction. The FCC makes no 

representations or warranties about the 

use of this spectrum for particular 

services. Applicants should be aware 

that an FCC auction represents an 

opportunity to become an FCC 

construction permittee in the broadcast 

service, subject to certain conditions 

and regulations. An FCC auction does 

not constitute an endorsement by the 

FCC of any particular service, 

technology, or product, nor does an FCC 

construction permit or license constitute 

a guarantee of business success. 

Applicants should perform their 

individual due diligence before 

proceeding as they would with any new 

business venture. In particular, potential 

bidders are strongly encouraged to 

review all underlying Commission 

orders, such as the specific Report and 

Order amending the TV or DTV Table of 

Allotments and allotting the TV 

channel(s) on which they plan to bid. 

Additionally, potential bidders should 

perform technical analyses sufficient to 

assure them that, should they prevail in 

competitive bidding for a given 

construction permit, they will be able to 

build and operate facilities that will 

fully comply with the Commission’s 

technical and legal requirements. 

Applicants are strongly encouraged to 

inspect any prospective transmitter sites 

located in, or near, the service area for 

which they plan to bid, and also to 

familiarize themselves with the 

Commission’s rules regarding the 

National Environmental Policy Act 

contained in 47 CFR chapter 1, part 1, 

subpart I. 

46. Potential bidders are strongly 

encouraged to conduct their own 

research prior to Auction No. 64 in 

order to determine the existence of 

pending proceedings that might affect 

their decisions regarding participation 

in the auction. Participants in Auction 

No. 64 are strongly encouraged to 

continue such research during the 

auction. 

47. Potential bidders should note that, 

in November of 1999, Congress enacted 

the Community Broadcasters Protection 

Act of 1999 (CBPA) which established a 

new Class A television service. In 

response to the enactment of the CBPA, 

the Commission adopted rules to 

establish the new Class A television 

service, including rules to provide 

interference protection for eligible Class 

A television stations from new full 

power television stations, in the Class A 

Report and Order, 65 FR 29985 (May 10, 

2000). 

48. Given the Commission’s ruling in 

the Class A Report and Order, a winning 

bidder in Auction No. 64, upon 

submission of its long-form application 

(FCC Form 301), will have to provide 

interference protection to qualified 

Class A television stations. Therefore, 

potential bidders are encouraged to 

perform engineering studies to 

determine the existence of Class A 

television stations and their effect on 

the ability to operate any full power 

television station proposed in this 

auction. Information about the identity 

and location of Class A television 

stations is available from the Media 

Bureau’s Consolidated Database System 

(CDBS) (public access available at: 

http://www.fcc.gov/mb) and on the 

Media Bureau’s Class A television Web 

page: http://www.fcc.gov/mb/video/ 

files/classa.html. 

49. Potential bidders for any new 

television facility in this auction are 

also reminded that full service 

television stations are in the process of 

converting from analog to digital 

operation and that stations may have 

pending applications to construct and 

operate digital television facilities, 

construction permits and/or licenses for 

such digital facilities. Bidders should 

investigate the impact such 

applications, permits and licenses may 

have on their ability to operate the 

facilities proposed in this auction. 

V. Conclusion 

50. Comments are due on or before 

October 14, 2005, and reply comments 

are due on or before October 21, 2005. 

All filings must be addressed to the 

Commission’s Secretary Attn: WTB/ 

ASAD, Office of the Secretary, Federal 

Communications Commission. Parties 

who file comments by paper must file 

an original and four copies of each 

filing. U.S. Postal Service first-class, 

Express, and Priority mail should be 

addressed to 445 12th Street, SW., 

Washington, DC 20554. Filings can be 

sent by hand or messenger delivery, by 

commercial overnight courier, or by 

first-class or overnight U.S. Postal 

Service mail. The Commission’s 

contractor will receive hand-delivered 

or messenger-delivered paper filings for 

the Commission’s Secretary at 236 

Massachusetts Avenue NE., Suite 110, 

Washington, DC 20002. The filing hours 

at this location are 8 a.m. to 7 p.m. All 

hand deliveries must be held together 

with rubber bands or fasteners. 

Commercial overnight mail (other than 

U.S. Postal Service Express Mail or 

Priority Mail) must be sent to 9300 East 

Hampton Drive, Capitol Heights, MD 

20743. 

51. The Bureaus also require that all 

comments and reply comments be filed 

electronically to the following address: 

auction64@fcc.gov. The electronic mail 

containing the comments or reply 

comments must include a subject or 

caption referring to Auction No. 64 

Comments and the name of the 

commenting party. The Bureaus request 

that parties format any attachments to 

electronic mail as Adobe Acrobat

(pdf) or Microsoft Word documents. 

Copies of comments and reply 

comments will be available for public 

inspection between 8 a.m. and 4:30 p.m. 

Monday through Thursday or 8 a.m. to 

11:30 a.m. on Friday in the FCC 

Reference Information Center, Room 

CY–A257, 445 12th Street, SW., 

Washington, DC 20554, and will also be 

posted on the Web page for Auction No. 

64 at http://wireless.fcc.gov/auctions/64. 

52. This proceeding has been 

designated as a permit-but-disclose 

proceeding in accordance with the 

Commission’s ex parte rules. Persons 

making oral ex parte presentations are 

reminded that memoranda summarizing 

the presentations must contain 

summaries of the substance of the 

presentations and not merely a listing of 

58706 Federal Register / Vol. 70, No. 194 / Friday, October 7, 2005 / Notices 

the subjects discussed. More than a one 

or two sentence description of the views 

and arguments presented is generally 

required. Other rules pertaining to oral 

and written ex parte presentations in 

permit-but-disclose proceedings are set 

forth in 47 CFR 1.1206(b). 

Federal Communications Commission. 

William W. Huber, 

Associate Chief, Auctions Spectrum and 

Access Division, WTB. 

[FR Doc. 05–20355 Filed 10–6–05; 8:45 am] 

BILLING CODE 6712–01–P 

FEDERAL HOUSING FINANCE BOARD 

Sunshine Act Meeting Notice; 

Announcing a Partially Open Meeting 

of the Board of Directors 

TIME AND DATE: The open meeting of the 

Board of Directors is scheduled to begin 

at 10 a.m. on Wednesday, October 12, 

2005. The closed portion of the meeting 

will follow immediately the open 

portion of the meeting. 

PLACE: Board Room, First Floor, Federal 

Housing Finance Board, 1625 Eye Street 

NW., Washington DC 20006. 

STATUS: The first portion of the meeting 

will be open to the public. The final 

portion of the meeting will be closed to 

the public. 

MATTER TO BE CONSIDERED AT THE OPEN

PORTION: Appointment of Financing 

Corporation Directors. 

MATTER TO BE CONSIDERED AT THE CLOSED

PORTION: Periodic Update of 

Examination Program Development and 

Supervisory Findings. 

CONTACT PERSON FOR MORE INFORMATION: 

Shelia Willis, Paralegal Specialist, 

Office of General Counsel, at 202–408–

2876 or williss@fhfb.gov. 

By the Federal Housing Finance Board. 

Dated: October 5, 2005. 

John P. Kennedy, 

General Counsel. 

[FR Doc. 05–20350 Filed 10–5–05; 1:40 pm] 

BILLING CODE 6725–01–P 

FEDERAL RESERVE SYSTEM 

Formations of, Acquisitions by, and 

Mergers of Bank Holding Companies 

The companies listed in this notice 

have applied to the Board for approval, 

pursuant to the Bank Holding Company 

Act of 1956 (12 U.S.C. 1841 et seq.) 

(BHC Act), Regulation Y (12 CFR Part 

225), and all other applicable statutes 

and regulations to become a bank 

holding company and/or to acquire the 

assets or the ownership of, control of, or 

the power to vote shares of a bank or 

bank holding company and all of the 

banks and nonbanking companies 

owned by the bank holding company, 

including the companies listed below. 

The applications listed below, as well 

as other related filings required by the 

Board, are available for immediate 

inspection at the Federal Reserve Bank 

indicated. The application also will be 

available for inspection at the offices of 

the Board of Governors. Interested 

persons may express their views in 

writing on the standards enumerated in 

the BHC Act (12 U.S.C. 1842(c)). If the 

proposal also involves the acquisition of 

a nonbanking company, the review also 

includes whether the acquisition of the 

nonbanking company complies with the 

standards in section 4 of the BHC Act 

(12 U.S.C. 1843). Unless otherwise 

noted, nonbanking activities will be 

conducted throughout the United States. 

Additional information on all bank 

holding companies may be obtained 

from the National Information Center 

website at www.ffiec.gov/nic/. 

Unless otherwise noted, comments 

regarding each of these applications 

must be received at the Reserve Bank 

indicated or the offices of the Board of 

Governors not later than November 3, 

2005. 

A. Federal Reserve Bank of St. Louis 

(Glenda Wilson, Community Affairs 

Officer) 411 Locust Street, St. Louis, 

Missouri 63166-2034: 

1. Cross County Bancshares, Inc., 

Wynne, Arkansas; to acquire 13.91 

percent of the voting shares of First 

Southern Bank, Batesville, Arkansas (a 

de novo bank). 

2. First Horizon National Corporation, 

Memphis, Tennessee; to acquire 100 

percent of the voting shares of Town 

and Country Bank of the Ozarks, 

Republic, Missouri. 

Board of Governors of the Federal Reserve 

System, October 4, 2005. 

Margie Shanks, 

Associate Secretary of the Board. 

[FR Doc. E5–5532 Filed 10–6–05; 8:45 am] 

BILLING CODE 6210–01–S 

DEPARTMENT OF HEALTH AND 

HUMAN SERVICES 

Assistant Secretary for Planning & 

Evaluation; Medicaid Program; 

Meeting of the Medicaid Commission—

October 26–27, 2005 

AGENCY: Assistant Secretary for 

Planning & Evaluation (ASPE), HHS. 

ACTION: Notice of meeting. 

SUMMARY: This notice announces a 

public meeting of the Medicaid 

Commission. Notice of this meeting is 

given under the Federal Advisory 

Committee Act (5 U.S.C. App. 2, section 

10(a)(1) and (a)(2)). The Medicaid 

Commission will advise the Secretary 

on ways to modernize the Medicaid 

program so that it can provide highquality health care to its beneficiaries in 

a financially sustainable way. 

DATES: The Meeting: October 26–27, 

2005. The meeting will begin at 9 a.m. 

each day. 

Special Accommodations: Persons 

attending the meeting who are hearing 

or visually impaired, or have a 

condition that requires special 

assistance or accommodations, are 

asked to notify the Executive Secretary 

by October 18, 2005 (see FOR FURTHER

INFORMATION CONTACT). 

ADDRESSES:

The Meeting: The meeting will be 

held at the following address: Holiday 

Inn on The Hill, 415 New Jersey 

Avenue, NW., Washington, DC 20001, 

United States, telephone: 1 (202) 638–

1616, fax: 1 (202) 638–0707. 

Web site: You may access up-to-date 

information on this meeting at http:// 

www.cms.hhs.gov/faca/mc/default.asp. 

FOR FURTHER INFORMATION CONTACT: 

Nancy Barnes, Executive Secretary, 

(202) 205–9164. 

SUPPLEMENTARY INFORMATION: On May 

24, 2005, we published a notice (70 FR 

29765) announcing the Medicaid 

Commission and requesting 

nominations for individuals to serve on 

the Medicaid Commission. This notice 

announces a public meeting of the 

Medicaid Commission. 

Topics of the Meeting: The 

Commission will discuss options for 

making longer-term recommendations 

on the future of the Medicaid program 

that ensure long-term sustainability. 

Issues to be addressed may include, but 

are not limited to: Eligibility, benefit 

design, and delivery; expanding the 

number of people covered with quality 

care while recognizing budget 

constraints; long term care; quality of 

care, choice, and beneficiary 

satisfaction; and program 

administration. The Commission may 

discuss the need to divide into subgroups for the purpose of focusing on 

particular issues within this broad 

subject, including a discussion of which 

members would serve on which subgroup. 

Procedure and Agenda: This meeting 

is open to the public. There will be a 

public comment period at the meeting. 

The Commission may limit the number 

and duration of oral presentations to the 

time available. We will request that you 

declare at the meeting whether or not