10 FCC Red No. 22 Federal Communications Commission Record DA 95-2155 Before the Federal Communications Commission Washington, D. C. 20554 LETTER October 10,1995 Released: October 25,1995 In reply refer to: 1800B3-RRC Robert Lewis Thompson, Esquire Counsel for Cloud Nine Broadcasting, Inc. Taylor Thiemann and Aitken, L.C. 908 King Street, Suite 300 Alexandria, Virginia 22314 Dan J. Alpert, Esquire Counsel for Frank Copsidas, Jr. 1250 Connecticut Avenue, N.W., Seventh Floor Washington, D.C. 20036 Re: Dear Counsel: KCWX(FM), Columbia Falls, Montana Application for Minor Modification of Broadcast Station Construction Permit (File No. BPH-940713B) By letter dated May 30, 1995, we granted the above referenced application filed by Frank Copsidas, Jr., permittee of KCWX(FM), Columbia Falls, Montana. We now have before us a petition for reconsideration of this decision, filed by Cloud Nine Broadcasting, Inc. ("Cloud Nine"),1 and Copsidas's opposition. For the reasons stated below, we deny reconsideration. Background: On July 30, 1992, we granted Copsidas's application for a construction permit for a new FM Station on Channel 240A in Columbia Falls, Montana. Shortly thereafter, on October 22, 1992, 1 Cloud Nine is the licensee of KDBR(FM), Kalispell, Montana, a competitor of KCWX. Our May 30,1995, letter also granted Copsidas's application for extension of time to construct KCWX, BMPH-940128JE. On reconsideration, Cloud Nine does not challenge that decision. Copsidas requested an upgrade to Channel 240C2. This application was granted over the opposition of Bee Broadcasting, Inc. ("Bee"),2 on March 2, 1993, Amendment of Section 73.202(B) (Columbia Falls, Montana), 8 FCC Red 1548 (MMB, Pol. and Rules Div., Alloc. Branch, 1993), reconsideration denied, 8 FCC Red 6647 (MMB, Pol. and Rules Div., 1993). After the grant became final, Copsidas filed an application for minor modification of the KCWX construction permit to specify operation as a Class C2 facility, BPH-940225IA. Thereafter, on July 13, 1994, he filed a minor amendment seeking to change the KCWX tower site; this amendment was resubmitted on October 17, 1994. Cloud Nine filed an informal objection to Copsidas's application on March 13,1995, alleging that: (1) Copsidas had misrepresented to the Commission that he had reasonable assurance of the availability of the tower site identified in the amendment; and (2) Copsidas had failed to notify the FAA of the proposed amendment. By letter dated May 30, 1995, we resolved these issues in favor of Copsidas, accepted the amendment, renumbered the application to correspond to the amendment date, and granted the modification, as amended. Cloud Nine filed a petition for reconsideration of this decision, alleging two errors of law, as follows: (1) We improperly accepted the July 13, 1994, amendment because the time for "amendments as of right" had expired and Copsidas did not show good cause for acceptance as required; and (2) We failed to afford the public the statutory 30-day period for filing petitions to deny by simultaneously accepting the July 13, 1994, amendment, renumbering the application, and granting it, as amended. 2 Bee was then the permittee of KDBR(FM), Kalispell, Montana. Bee consummated its transfer of control of the KDBR construction permit to Cloud Nine on January 3, 1995, BTCH-940916GG, and we granted the KDBR broadcast license application, BLH-940914KF, on April 20, 1995. 11555 10 FCC Red No. 22 Federal Communications Commission Record DA 95-2155 Cloud Nine also reasserts its original argument that Copsidas lacks reasonable assurance of site availability. Procedural Issues: As an initial matter, Copsidas argues that Cloud Nine lacks standing to file a petition for reconsideration, noting that Cloud Nine failed to file a petition to deny the modification application. We disagree. The Communications Act of 1934 provides that a petition for reconsideration may be filed by (1) a party to a proceeding or (2) "any other person aggrieved or whose interests are adversely affected by" the underlying decision. 47 U.S.C. § 405(a); see also 47 C.F.R. § 1.106(b)(l). We conclude that, although Cloud Nine is not a party to this proceeding, it nevertheless may petition for reconsideration under the second, "aggrieved or adversely affected" test. Status as a Parly: Unlike the filing of a petition to deny, the filing of an informal objection does not confer party status upon the objector. Montgomery County Broadcasting Corp., 65 F.C.C.2d 876,877 n.2 (1977); BarnesEnterprises, Inc., 55 F.C.C.2d 721,722 (1975). Therefore, Cloud Nine was legally precluded from becoming a party to this proceeding because a petition to deny an application for a minor modification of the facilities of an authorized station is procedurally inappropriate. 47 U.S.C. §§ 309(c)(2)(A) and 309(d)(l); Beasley Radio Co., 4 FCC Red 6344, 6344 (1989). However, our conclusion that Cloud Nine does not have standing to file a petition for reconsideration as a party is unchanged by the fact that it could not file a procedurally proper pre-grant petition to deny. Rainbow Broadcasting Co., 9 FCC Red 2839,2844 n.24 (1994) (citingMontgomery County Broadcasting, 65 F.C.C.2d at 877 n.2), affd in relevant part sub nom. Press Broadcasting Co., Inc. v. FCC, 59 F.3d 1365,1369 n.6 (D.C. Cir. 1995). "Aggrieved or Adversely Affected" Test: Because Cloud Nine is not a party to this proceeding, it must establish standing to file a petition for reconsideration under the "aggrieved or adversely affected" test of 47 U.S.C. § 405(a). The Commission's rules require that such a petitioner "state with particularity the manner in which the person's interests are adversely affected by the action taken, and shall show good reason why it was not possible for him to participate in the earlier stages of the proceeding." 47 C.F.R. § 1.106(b)(l). As the licensee of an existing KCWX competitor, Cloud Nine's interests have been adversely affected by our decision in this proceeding. FCC v. Sanders Bros. Radio Station, 309 U.S. 470,477 (1940); Rainbow, 9 FCC Red at 2844 n.24 (1994). In addition, Cloud Nine has demonstrated why it was not possible for it to participate as a petitioner to deny in the earlier stages of the proceeding, meeting the "good cause" standard of § 1.106(b)(l). By filing a pre-grant informal objection, Cloud Nine participated in our processes to the fullest extent permitted. Where, as here, an informal objector would have had standing to file a petition to deny, but was legally precluded by the Communications Act or our rules from doing so, that informal objector has standing to file a petition for reconsideration. See Rainbow, 9 FCC Red at 2844 n.24 (1994); Channel 41, Inc., 30 F.C.C.2d 6 (1971) (considering the merits of a petition for reconsideration of Commission grant of minor modification where petitioner, a competitor, had filed pre-grant informal objection); cf. Davidson County Broadcasting Co., Inc., 8 FCC Red 1689, 1690 (1993) (competitor's petition for reconsideration "defective" where competitor had opportunity to file informal objection to minor modification application, but failed to do so); Louisiana Television Broadcasting Corp., 17 F.C.C.2d 973, 974 (1969) (competitor's petition for reconsideration was "defective" where competitor acknowledged that it could have filed an informal objection to applicant's minor modification, but made no showing as to why it had failed to do so). Under these circumstances, consideration of the merits of Cloud Nine's petition is consistent with the Commission's interest in "orderliness, expedition and finality" reflected in§ 1.106. ParkellBroadcasting, Inc., 59 F.C.C.2d 811, 812-13 (1976), affd sub nom. Southwest Broadcasting Co. v. FCC, 559 F.2d 188 (D.C. Cir. 1977); Ogden Television, Inc., 7 FCC Red 3116, 3117 (MMB, Vid. Serv.Div. 1992). Discussion: Cloud Nine's petition for reconsideration asserts that we committed error of law by accepting Copsidas's July 13, 1994, minor amendment absent a showing of good cause under 47 C.F.R. § 73.3522(a)(6). We disagree. This rule provides that such a late-filed amendment is "subject to return by the Commission without consideration." Id. However, under the specific circumstances presented here, it is our practice to waive the requirements of this rule, renumber and grant the application, and bill the applicant for the appropriate fee. This renumbering and billing process is used only in connection with FM processing under the "hard look" procedures unique to FM processing, and 11556 10 FCC Red No. 22 Federal Communications Commission Record DA 95-2155 then, only in the context of applications to modify the facilities of existing stations or outstanding construction permits where the application, as amended, does not conflict with any other application filed prior to the date of amendment This process is used for the benefit of the Commission, not the applicant. However, both parties gain, because the Commission saves time and conserves resources, while acting more quickly on the applicant's filing. When an applicant files such an untimely minor amendment to an application for minor modification of station facilities, without showing good cause under § 73.3522(a)(6), the staff has two options: (1) Return the amendment as unacceptable, being both untimely and without good cause. This option would delay action on an otherwise acceptable amendment, forcing the applicant to withdraw the original application and resubmit the amendment as a new application along with the appropriate filing fee. (2) Alternately, we may associate the original application with the amendment and consider it as a new application filed on the date of the amendment, give it a file number corresponding to that date, and grant it conditional on the payment of the appropriate filing fee. Based on considerations of efficiency and expedience, we believe that the second option is more consistent with our mandate to serve the public interest, convenience and necessity. 47 U.S.C. § 309(a). Because such "minor change" applications do not involve filing windows and are not subject to petitions to deny, waiving the good cause requirement of § 73.3522(a)(6) does not prejudice any other applicant, objector, or party. This practice is more fully discussed in an August 9, 1991, letter from Dennis Williams, Chief, FM Branch, Audio Services Division, Mass Media Bureau, to Henry E. Crawford, Esq., in the record of KRTS, Inc., Application for Minor Modification of Broadcast Station Construction Permit of KRTS(FM), Seabrook, Texas, File No. BPH- 910215MT.3 The petition for reconsideration also argues that we improperly granted Copsidas's amended application without affording the public the statutory 30 day period for filing petitions to deny. We disagree. The 30-day period provided by the Communcations Act, 47 U.S.C. § 309(b), does not apply to minor change applications such as the one at issue here. 47 U.S.C. § 309(c)(2)(A). In addition, as discussed above, a petition to deny is not permitted against either an application for minor modification of a construction permit, Beasley Radio, 4 FCC Red at 6344, or a minor amendment thereto, Davidson County Broadcasting, 8 FCC Red at 1690 n.10. Finally, the petition for reconsideration argues that Copsidas lacks reasonable assurance of the availability of the transmission site specified in his application amendment and that we committed error by failing to consider additional evidence offered in Cloud Nine's reply, filed May 1, 1995. We disagree. We considered and rejected this evidence in connection with our original, May 30,1995, decision. Cloud Nine's reply supplied two documents as attachments: (1) a letter, dated March 23, 1995, from J.R. Smith, Legal Affairs Administrator for MCII General Partnership d.b.a. Western Wireless, the owner of the proposed site; and (2) a declaration under penalty of perjury, dated April 28, 1995, from Robert L. Thompson, Esquire, FCC Counsel to Cloud Nine. Smith's letter states that MCII "is unable to rent tower space to B-Broadcasting, Inc., for its radio antenna" on a tower in Whitefish, Montana. As such, the letter relates neither to Copsidas nor to his proposed site on an MCII tower in Lone Pine State Park, Kalispell, Montana. The letter does confirm MCII's general policy, also discussed in Thompson's declaration, not to lease tower space to any person or entity that is not classified as an emergency service provider. Even if we were to accept this hearsay information, Cloud Nine fails to raise any substantial or material question of fact concerning the issue of reasonable assurance. The Commission does not require 3 Attached to Letter from Dennis Williams, Chief, FM Branch, Audio Services Division, Mass Media Bureau, to David S. Kier, Esq., John S. Neely, Esq., and Robert J. Buenzle, Esq., File Nos. BPH-910215MT and BLH- 910802KE (KRTS(FM), Seabrook, Texas, Ref. No. 1800B3- GDG, January 26,1995). 11557 10 FCC Red No. 22 Federal Communications Commission Record DA 95-2155 an applicant to secure a binding commitment to use a proposed broadcast site, e.g., Elijah Broadcasting Corp., 5 FCC Red 5350, 5351 (1990); rather, the "reasonable assurance" standard is a liberal one, requiring only that the applicant obtain "some clear indication from the landowner that he is amenable to entering into a future arrangement with the applicant for use of the property as its transmitter site, on terms to be negotiated, and that he would give notice of any change of intention." Id. The Thompson declaration specifically reflects Smith's indication that Copsidas's application would be considered under a "grandfather exception" to the general MCII policy. Therefore, on its face, the Thompson declaration is not in conflict with the Declaration of J.R. Smith, attached to Copsidas's opposition and dated April 20, 1995, in which Smith confirms that he provided Copsidas with sufficient assurance to meet the legal standard. As such, we find no error in our May 30,1995, decision. Conclusion: In sum, Cloud Nine has failed to demonstrate any errors of law or fact in our decision denying its informal objection, and has not otherwise demonstrated under 47 C.F.R. § 1.106 that reconsideration is warranted. Accordingly, the petition for reconsideration, filed by Cloud Nine Broadcasting, Inc., of our grant of Frank Copsidas's application for minor modification of the KCWX(FM) construction permit, BPH-940713D3, IS HEREBY DENIED. Sincerely, Linda Blair, Acting Chief Audio Services Division Mass Media Bureau 11558