Report No. DC-2656         ACTION IN DOCKET CASE         September 29, 1994


        HIGHLANDS BROADCASTING, INC. DENIED EXTRAORDINARY RELIEF IN
                PROCEEDING FOR NEW FM STATION AT CARMEL, CA
                           (MM DOCKET NO. 90-48)

     The FCC has denied Highlands Broadcasting, Inc.'s petition
for extraordinary relief in the proceeding for a new FM station
on Channel 238A at Carmel, CA.  Additionally, the Commission
authorized J&M Broadcasting, Inc. to continue operation of a new
FM station at Carmel pending further consideration in this
proceeding.

     The Commission previously granted the application of J&M
Broadcasting for a new FM station in Carmel, CA, and denied the
competing application of Highlands Broadcasting.  J&M was
preferred over Highlands based on qualitative factors enhancing
integration.  Highlands appealed the Commission's action on
October 8, 1993, and on December 6, 1993, the Commission issued
J&M a construction permit for the station which began operation
later that month under the call sign KBOQ-FM.

     On December 17, 1993, during the pendency of Highlands'
appeal, the court, in Bechtel v. FCC, found the Commission's
integration criterion arbitrary and capricious, and thus
unlawful.  On May 16, 1994, the court, in response to a motion by
Highlands, reversed and remanded this proceeding for further
consideration in light of Bechtel.  J&M asked the Commission to
authorize its continued operation of the station on an interim
basis pending further proceedings.  Highlands asked the
Commission to appoint an independent interim operator for the
station.

     The Commission found that continued operation by J&M was
consistent with law and would serve the public interest.  The
Commission stated that it has the discretion to maintain J&M's
existing service in the public interest following remand,
provided that it does not prejudice Highlands.  The Commission
found it unlikely that the temporary maintenance of J&M's service
would cause prejudice to Highlands since the Commission
anticipates evaluating J&M and Highlands under comparative
criteria that gives J&M no credit for its temporary service.   

                                  (over)


                                    -2-

     The Commission noted, however, that when J&M chose to
construct its station, it assumed the risk that the comparative
decision in its favor may not survive at the end of the
proceeding.  The Commission stated that nothing in this decision
can, or is intended to change the fact that J&M bears this risk.

     Action by the Commission September 27, 1994, by Memorandum
Opinion and Order(FCC 94-245).  Chairman Hundt, Commissioners
Quello, Barrett, Ness, and Chong.

                                 -FCC-   

     News Media contact: Patricia A. Chew at (202) 418-0500.