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In re Applications of ) ) Mobil Oil Telcom, Ltd., ) File Nos. 714772-OF-055 ) and 714593-OF-055 For Private Operational-Fixed ) Microwave Service Stations WNTG 997 ) and WNTZ 385 at Mobile Bay Block 869 ) in the Gulf of Mexico ) ORDER ON RECONSIDERATION Adopted: April 2, 1996 Released: April 10, 1996 By the Acting Chief, Wireless Telecommunications Bureau: I. Introduction 1. On July 19, 1995, Mobil Oil Telcom, Ltd., (Mobil) filed a Petition for Reconsideration regarding the staff's grant of secondary status, rather than primary status, to Station WNTG 997 and to new Station WNTZ 385 for the frequency assignment 2131.6 MHz. Mobil requests that it be granted primary status for the stations consistent with the May 14, 1992 Public Notice and the Third Report and Order in ET Docket No. 92-9. On October 5, 1995, Mobil filed supplemental information at the request of the staff. For the reasons discussed below, we grant Mobil's petition. II. Petition 2. Mobil states that it operates Stations WNEJ 974, WNEJ 975, WNTG 997 and WNTZ 385 as part of the same Mobile Bay emergency shutdown system. Mobil relocated two 2 GHz analog transmitters from Stations WNEH 974 and WNEJ 975 to Stations WNTG 997 and WNTZ 385. Mobil replaced the two analog transmitters at Stations WNEJ 974 and WNEJ 975 with digital transmitters operating in the 6 GHz frequency band. Mobil indicates that its 2 GHz analog equipment, which was originally authorized prior to January 16, 1992, would be operated at Stations WNTG 997 and WNTZ 385. Mobil points out that this link is at the end of the Mobile Bay system and will serve a single well platform. Mobil states that the 2 GHz equipment was moved farther offshore from the location for which it was originally granted. Thus, Mobil argues, since the 2 GHz equipment is being moved farther from any population center that might support the deployment of new technology, potential cost to a Personal Communications Service (PCS) provider would be reduced due to decreased interference considerations. 3. Mobil explains that its equipment is used to support hazardous offshore drilling and production activities. It states that the Mobile Bay operation is a "sour gas" field which produces poisonous gases, including hydrogen sulfide, in sufficient quantities to pose health and safety risks to Mobil employees, to nearby population centers, and to the environment. Accordingly, Mobil explains that remote safety shutdown units at each drilling rig are connected by means of the same microwave frequency to a master unit at the Mobile Bay gas plant. Mobil states that the microwave link is essential to the safe operation of the drilling rigs and to its ability to shut down drilling operations promptly in the event of an emergency. 4. Finally, Mobil observes that it obtained quality 2 GHz equipment for this system well before January 16, 1992, in reliance on the Commission's rules, with the expectation that it would be able to use the equipment for the duration of its useful life. Mobil argues that, as a matter of equity, the Commission's decision to change its rules should not deny Mobil the right to operate this equipment on a primary basis. Mobil claims that maintaining primary status for this equipment will not lead to additional costs for PCS licensees. Mobil further argues it requires primary status to maintain transition and negotiation rights to ensure that the critical safety functions supported by its 2 GHz equipment continue uninterrupted during a well-planned transition. III. Decision 5. In the Third Report and Order, the Commission reaffirmed its policy that, as a general rule, new fixed 2 GHz facilities would be licensed on a secondary basis, but minor extensions and some major extensions of systems licensed prior to January 16, 1992 could be licensed on a primary basis. In the Order, the Commission declined to continue general primary licensing of fixed microwave systems in the 2 GHz band, stating that: We are committed to providing spectrum for the development and growth of new services to the American public. Our policy allows for the continued use of the 2 GHz bands by incumbent licensees until the bands are needed by new services and ensures that other suitable bands are available to meet the requirements of the fixed microwave service. . . . 6. The Commission has stated that it will grant 2 GHz facilities primary status for certain license modifications and minor extensions if the stations were licensed prior to January 16, 1992. Acceptable modifications include: minor modifications, changes in antenna azimuth, antenna bandwidth, antenna height, authorized power, channel loading, emission, station location, ownership or control, reduction in authorized frequencies, or addition of frequencies not in the 2 GHz band. Major extensions or expansions of existing 2 GHz facilities will be permitted only on a secondary basis unless a special showing of need is made that justifies primary status. In addition, the Commission stated: We also believe the conditional secondary status should not be applied in certain situations where additional links may be required to complete a communications network, or where new facilities and/or frequencies are operationally connected to a system, licensed prior to January 16, 1992. In these instances, we will not apply the secondary conditional status when the applicant makes a valid showing of its need for the facilities. Accordingly, we must determine whether Mobil's request for new 2 GHz links within its existing emergency shutdown system constitutes a minor modification, and if not, whether Mobil's additional links are justified by a valid showing of need. 7. Applying the Commission's guidelines to this situation we must first determine whether Mobil's stations constitute a single system. This is particularly important because one of the 2 GHz links in question has been assigned a new call sign. One call sign typically represents one radio station. The definition of "radio station" is A separate transmitter or group of transmitters under simultaneous common control, including the accessory equipment required for carrying on a radiocommunications service. In this case, Mobil has demonstrated that its 2 GHz transmitters are under common control to effectuate an emergency shutdown system. As a result, we conclude that even though multiple call signs are assigned, the emergency shutdown links are under common control and the Mobile Bay system should be treated as a single radio station. 8. As a single station, Mobil's Mobile Bay system may undergo minor modifications to its telecommunications facilities and retain primary status for additional 2 GHz links. Mobil represents that it has moved the previously authorized 2 GHz radio links to a drilling rig approximately 8 miles farther offshore. We find that this action constitutes a station relocation of a degree normally considered major for land-based stations. 9. Finding as an initial matter that Mobil's modification is not minor, we turn to the Commission's policy statement regarding additional links to existing systems. First, the record shows that Mobil's new 2 GHz link is clearly part of a system authorized prior to January 16, 1992. Second, the record indicates that Mobil has a valid need for the additional links. In particular, the system is part of an emergency shutdown system which is designed to protect human life and the environment. Mobil has indicated that it would not conduct its operations without such capability. 10. We note that the new location is farther offshore. Moreover, there is little chance for a PCS licensee to offer service in the Gulf of Mexico without placing transmitters on the drilling rigs owned by companies who are likely, like Mobil, to be incumbent 2 GHz licensees. We note further that since the 2 GHz equipment being used for the additional site was authorized prior to January 16, 1992, there is no increase in cost to a potential PCS licensee who may wish to relocate Mobil's 2 GHz links. In fact, we believe that the potential cost to a PCS provider is less because Mobil has moved its 2 GHz links farther from the shoreline. 11. We find that Mobil's modification of its system is consistent with our policy regarding the retention of primary status for incumbent 2 GHz licensees. Clearly, the subject links are an integral part of, and connected to, a system licensed prior to January 16, 1992. It is highly unlikely that PCS licensees will be affected by Mobil's 2 GHz emergency shutdown links. The new location of these 2 GHz links results in decreased potential for interference to PCS licensees. Finally, Mobil's existing system provides important emergency communications which must continue until a PCS licensee needs the frequency. At that time, for the safety of personnel and the environment, an orderly transition subject to the Commission's rules for primary 2 GHz licensees should take place. IV. Ordering Clauses 12. Accordingly, IT IS ORDERED, pursuant to Section 5(d) of the Administrative Procedure Act, 5 U.S.C. 554, and Section 1.2 of the Commission's Rules, 47 C.F.R. 1.2, that the Petition for Reconsideration filed by Mobil Oil Telcom, Ltd., IS GRANTED for the reasons discussed herein. Superseding authorizations will be issued under separate cover. FEDERAL COMMUNICATIONS COMMISSION Michele C. Farquhar Acting Chief, Wireless Telecommunications Bureau