******************************************************** NOTICE ******************************************************** This document was converted from WordPerfect to ASCII Text format. Content from the original version of the document such as headers, footers, footnotes, endnotes, graphics, and page numbers will not show up in this text version. All text attributes such as bold, italic, underlining, etc. from the original document will not show up in this text version. Features of the original document layout such as columns, tables, line and letter spacing, pagination, and margins will not be preserved in the text version. If you need the complete document, download the WordPerfect version or Adobe Acrobat version, if available. ***************************************************************** Before the Federal Communications Commission Washington, D.C. 20554 In re Request of ) ) Seagull Communications Corporation) ) For Waiver of the One-to-a-Market Rule) ) KSGI-TV, Cedar City, Utah ) KSGI(AM), St. George, Utah ) KZEZ(FM), St. George, Utah ) MEMORANDUM OPINION AND ORDER Adopted: December 5, 1997 Released: December 8, 1997 By the Chief, Mass Media Bureau: 1. The Commission, by the Chief, Mass Media Bureau, acting pursuant to delegated authority, has before it the request of Seagull Communications Corporation ("Seagull"), for waiver of 47 C.F.R.  73.3555(c), the Commission's one-to-a-market rule. Seagull is the licensee of television station KSGI-TV, Channel 4 (IND), Cedar City, Utah ("KSGI"). Seagull principals Morgan Skinner and Lavon Randall are principals of KSGI, Inc., licensee of radio station KSGI(AM), and KZEZ, Inc., licensee of KZEZ(FM), St. George, Utah. The Grade A signal of KSGI, computed using the standard prediction methods set forth in 47 C.F.R.  73.684, completely encompasses St. George. Therefore, Seagull's ownership of KSGI appears to be inconsistent with Section 73.3555(c) of the Commission's Rules, which prohibits the common ownership of television and radio stations in the same market. By letter dated December 19, 1996, the Chief, Video Services Division, directed Seagull to demonstrate how continuation of its common ownership of stations KSGI and KSGI(AM)/FM was consistent with the Commission's multiple ownership rules. On May 1, 1997, Seagull submitted a request for waiver of the one-to-a-market rule, and on August 7, 1997, the Video Services Division released a Public Notice (Report No. 24050C) inviting interested parties to file comments in response to the waiver request. Seagull filed comments in response to the Public Notice. No other comments were received. 2. Seagull bases its waiver request on the one-to-a-market waiver standards adopted in the Second Report and Order in MM Docket 87-7, 4 FCC Rcd 1741 (1989), recon. granted in part and denied in part, 4 FCC Rcd 6489 (1989). In accordance with these standards, the Commission presumptively favors waiver requests involving: (a) station combinations serving the top 25 markets where there remain at least 30 separately owned, operated and controlled broadcast licenses or "voices" after the proposed combination is consummated ("top 25 market/30 voice standard"); or (b) "failed" broadcast stations, i.e., stations which have not been operating for a substantial period of time (four months or more) or are involved in bankruptcy proceedings. See 47 C.F.R.  73.3555(c), note 7. 3. Seagull filed an application to acquire KSGI out of bankruptcy on October 20, 1993 (BALCT-931020KF). The former licensee had originally filed for protection under Chapter 11 of the Bankruptcy Code on December 17, 1992, and the case was converted to a proceeding under Chapter 7 on June 22, 1993. Additionally, the station did not broadcast from November 1992 until February 1, 1994, when it was returned to the air by Seagull. For these reasons, we conclude that Seagull has met the necessary standard to receive a waiver under the "failed station" criterion. See Carlos J. Lastra, Trustee, 10 FCC Rcd 7163 (1995); Hombres Enterprises, Inc., 10 FCC Rcd 3793 (1995); WPRV-TV, Inc., 9 FCC Rcd 5296 (1994); Dennis Elam and Bakke Communications, Inc., 8 FCC Rcd 5185 (1993). 4. Accordingly, IT IS ORDERED, That Seagull's request for waiver of the one-to-a-market rule IS GRANTED. FEDERAL COMMUNICATIONS COMMISSION Roy J. Stewart Chief, Mass Media Bureau