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     DA 96-1324


                                Before the
                     Federal Communications Commission
                          Washington, D.C. 20554

In the Matter of

Liability of 
Fernal, Inc., Former Licensee
Station KHTH-AM
Dillon, Colorado

For a Forfeiture

                       MEMORANDUM OPINION AND ORDER

Adopted:  August 13, 1996                           Released:  August 20, 1996

By the Chief, Mass Media Bureau:

     1.  The Commission by the Chief, Mass Media Bureau, acting pursuant to authority
delegated by Section 0.283 of the Commission's Rules, has before it for consideration (1) a
Notice of Apparent Liability (NAL), Fernal, Inc., 10 FCC Rcd 13652 (MMB 1995), assessing
a forfeiture of $6,000 against Fernal, Inc., for violation of 18 U.S.C. Section 1304 and
Section 73.1211 of the Commission's Rules (broadcast of lottery information), and (2) a
response filed January 11, 1996, by Fernal, Inc.

     2.  In its response, Fernal, Inc., seeks reduction and/or cancellation of the forfeiture on
the basis of its history of overall compliance with Commission Rules and its specific good
faith efforts to address and correct the violation at issue here.  In this latter regard, the
licensee notes that it discovered and eliminated the lottery announcements before our initial
letter of inquiry was mailed to it.

     3.  We agree that a reduction is warranted.  In Calnevar Broadcasting, Inc., 10 FCC
Rcd 13027 (MMB 1995), we assessed a forfeiture of $4,000 for a violation of the anti-lottery
provisions that had been mitigated by the licensee's good faith efforts to comply with these
requirements.  At the same time, we specifically rejected a claim of overall compliance with
Commission Rules.  Here, Fernal, Inc., has established both a history of overall compliance
and a record of good faith.  Under these circumstances, we believe that a forfeiture of $2,000
is appropriate.

     4.  Accordingly, the response of Fernal, Inc., IS GRANTED to the extent indicated
herein, and IS DENIED in all other respects.  IT IS ORDERED that Fernal, Inc., former
licensee of Station KHTH-AM, Dillon, Colorado, FORFEIT to the United States the sum of
two thousand dollars ($2,000) for repeated violation of 18 U.S.C. Section 1304 and Section
73.1211 of the Commission's Rules.  Payment of the forfeiture must be made by mailing to
the Commission, at the address indicated in the attachment to this Memorandum Opinion and
Order, a check or similar instrument payable to the Federal Communications Commission.  In
regard to the forfeiture proceeding, the licensee may take any of the actions set forth in
Section 1.115 of the Commission's Rules.

     FEDERAL COMMUNICATIONS COMMISSION




     Roy J. Stewart, Chief
     Mass Media Bureau