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


In the Matter of                     )
                                     )
Pilgrim Communications, Inc.         )  File Number:  EB-01-DV-044
                                     )
Licensee of Station KSKE(AM)         )            NAL/Acct.       No. 
Vail, Colorado                       200332800004
Facility ID # 16272                  )  FRN  0006-1472-19
                                     )


           NOTICE OF APPARENT LIABILITY FOR FORFEITURE

                                          Released:  November 
20, 2002

By the District Director, Denver Office, Enforcement Bureau:

                        I.   INTRODUCTION

     1.   In this  Notice of  Apparent Liability  for  Forfeiture 
("NAL"),  we  find  Pilgrim  Communications,  Inc.   ("Pilgrim"), 
licensee of AM radio station  KSKE in Vail, Colorado,  apparently 
liable for a forfeiture in the amount of eleven thousand  dollars 
($11,000)  for  willful  and   repeated  violation  of   Sections 
73.1125(a), 73.1560(a) and 73.1745(a)  of the Commission's  Rules 
(``Rules'').1  Specifically,  we find  Pilgrim apparently  liable 
for failing to  maintain the  requisite main  studio presence  at 
station KSKE, and  failing to maintain  power levels between  90% 
and 105% of authorized power levels and exceeding the  authorized 
nighttime power level at station KSKE.  

                         II.  BACKGROUND

     2.   During routine station  inspections in  the spring  and 
summer of 2001,  agents from the  Commission's Denver,  Colorado, 
Field Office  (``Denver  Office'')  inspected  several  AM  radio 
stations in  Colorado owned  and  operated by  Pilgrim.   Several 
Notices of  Violation  (``NOVs'')  were  issued  to  Pilgrim  for 
various rule violations discovered at the stations.  In this NAL, 
we address  the most  serious  violations discovered  at  station 
KSKE.  

     3.   Station KSKE is authorized to operate with 5,000  watts 
of power  during daytime  hours  and 217  watts of  power  during 
nighttime hours, on frequency 610 kHz.  According to the terms of 
KSKE's license, the average  hours of sunset  to sunrise for  May 
2001,  were  8:15  p.m.  to  6:00  a.m.  Mountain  Daylight  Time 
(``MDT'').  On  May 9,  2001,  an agent  from the  Denver  Office 
monitored  the  on-air   signal  of  radio   station  KSKE,   and 
specifically, from 7:30  p.m. to  9:00 p.m. MDT,  the agent  took 
numerous field strength measurements  at locations near the  KSKE 
transmitter in Minturn Recreation Park.  According to the station 
authorization,  KSKE  should  have   switched  from  daytime   to 
nighttime power at 8:15 p.m.   The agent observed no power  level 
change as required by KSKE's station authorization prior to  9:00 
p.m.  Subsequent on-air field strength measurements conducted  by 
the agent on May 10, 2001,  confirmed that KSKE was operating  at 
the same field strength observed previously on May 9.  

     4.   On May 10, 2001, the  agent attempted an inspection  of 
the KSKE main studio located at 0210 Edwards Village Blvd.,  Unit 
B-206, Edwards,  Colorado.  Upon  arrival, the  agent found  what 
appeared to be storage space.  There was no indication that there 
was a studio at the location.  Employees of an adjacent  business 
were not aware of a KSKE studio nearby.  The telephone number  in 
the  phone  book  listed  for   KSKE  was  disconnected  and   no 
alternative phone  number  was  given  by  directory  assistance.  
During a  May  10,  2001,  telephone  conversation  with  Pilgrim 
corporate staff in Indiana, the  agent was informed that  Pilgrim 
had no personnel in  the Vail area  for KSKE.  Pilgrim  corporate 
staff advised the  agent that  Pilgrim staff at  station KLMO  in 
Longmont,  Colorado,  approximately  160  miles  away  from   the 
location where KSKE's  main studio  was authorized  to be,  could 
provide assistance to the agent and control the KSKE  transmitter 
remotely.  The fact that KSKE  was operating over its  authorized 
nighttime power level  was confirmed when  the agent, not  noting 
any change in measured field strength from May 9 to May 10, asked 
the KLMO  operator  in  Longmont  to  remotely  reduce  the  KSKE 
transmitter to  its authorized  nighttime  power level,  and  the 
operator did so.

     5.   On July 30,  2001, the  Denver Office issued  a NOV  to 
Pilgrim for violations  at station KSKE,  among them, failing  to 
maintain operations as specified in the station license  (Section 
73.1745(a)) and  failing  to  maintain  a  main  studio  (Section 
73.1125).  Pilgrim stated in  the August 17,  2001, reply to  the 
NOV, that there had been an error in programming the remote power 
control system,  and  upon notification  by  the FCC  agent,  the 
programming of  the remote  power control  system was  corrected.  
Pilgrim also  stated that  a studio  was maintained  in  Edwards, 
Colorado, that Pilgrim  does have an  operating telephone  number 
there but Pilgrim  did not  know why  the phone  company did  not 
provide the  number  to  the  agent, and  that  Pilgrim  has  one 
employee working at KSKE.  Although Pilgrim's response  indicated 
that  one person was working at the KSKE main studio, that person 
was not present on the date of the inspection. 

                      III.      DISCUSSION

     6.   Section 503(b) of  the Communications Act  of 1934,  as 
amended, (``Act''),  provides that  any person  who willfully  or 
repeatedly fails  to  comply  substantially with  the  terms  and 
conditions of any  license, or willfully  or repeatedly fails  to 
comply with any  of the  provisions of the  Act or  of any  rule, 
regulation or order issued by the Commission thereunder, shall be 
liable for a forfeiture penalty.2  The term "willful" as used  in 
Section 503(b) has been interpreted to mean simply that the  acts 
or omissions  are committed  knowingly.3  The  term  ``repeated'' 
means that the violation occurred on more than one day.4

     7.   Section  73.1560(a)  of  the  Rules  provides  that  AM 
stations must  be  maintained  as  near  as  practicable  to  the 
authorized antenna input power and may  not be less than 90%  nor 
more than 105%  of the authorized  power.  Section 73.1745(a)  of 
the Rules  states  that no  broadcast  station shall  operate  at 
times, or with  modes or  power, other than  those specified  and 
made a part of the license unless otherwise permitted by Part  73 
of the  Rules.  On  May 9,  2001, Pilgrim  station KSKE  did  not 
reduce nighttime power as  required by the station  authorization 
in violation of Section 73.1560(a) and 73.1745(a) of the Rules. 

     8.   Section 73.1125(a)  of  the  Rules  generally  requires 
broadcast stations  to  maintain a  main  studio at  one  of  the 
following locations:   (i)  within  the  station's  community  of 
license; (ii)  at any  location  within the  principal  community 
contour of  any AM,  FM,  TV broadcast  station licensed  to  the 
station's community of license; or (iii) within twenty-five miles 
from the reference coordinates of the center of its community  of 
license.  The  station's main  studio must  serve the  needs  and 
interests of the residents of the station's community of license.  
To fulfill this  function, a  station must,  among other  things, 
maintain a meaningful management and  staff presence at its  main 
studio.5  The  Commission  has  defined  a  minimally  acceptable 
"meaningful presence" as full-time managerial and full-time staff 
personnel.6  In  addition, there  must be  "management and  staff 
presence" on a full-time basis during normal business hours to be 
considered "meaningful."  Although management personnel need  not 
be "chained to  their desks" during  normal business hours,  they 
must "report to work at the main studio on a daily basis, spend a 
substantial amount of  time there  and ...  use the  studio as  a 
'home base.'"7   On May  9, 2001,  Pilgrim had  no management  or 
staff presence during normal business  hours at the main  studios 
of station KSKE, in violation of Section 73.1125 of the Rules. 

     9.   Based on the evidence before  us, we find that  Pilgrim 
apparently exceeded the authorized  nighttime power level on  May 
9,  2001,  in  willful   violation  of  Section  73.1560(a)   and 
73.1745(a) of  the  Rules and  failed  to maintain  the  required 
management and staff presence at  KSKE's main studio, in  willful 
and repeated violation of Section 73.1125(a) of the Rules.

     10.  Pursuant  to   The   Commission's   Forfeiture   Policy 
Statement  and  Amendment  of  Section  1.80  of  the  Rules   to 
Incorporate  the  Forfeiture   Guidelines,  ("Forfeiture   Policy 
Statement"),8 and Section 1.80 of the Rules,9 the base forfeiture 
amount is  $4,000  for exceeding  power  limits at  nighttime  in 
violation of Sections 73.1560(a)  and 73.1745(a) of the  Rules;10 
and $7,000  for  failing to  maintain  the required  main  studio 
presence in violation of Section  73.1125(a) of the Rules.11   In 
assessing the monetary forfeiture amount, we must also take  into 
account the statutory factors  set forth in Section  503(b)(2)(D) 
of the Act  which include  the nature,  circumstance, extent  and 
gravity of the  violation(s), and with  respect to the  violator, 
the degree of culpability, and history of prior offenses, ability 
to  pay,  and  other  such  matters  as  justice  may  require.12  
Applying  the  Forfeiture  Policy  Statement  and  the  statutory 
factors to the instant case, a $11,000 forfeiture is warranted.

                      IV.  ORDERING CLAUSES

     11.  Accordingly, IT IS  ORDERED THAT,  pursuant to  Section 
503(b) of  the  Act  and  Section  1.80  of  the  Rules,  Pilgrim 
Communications,  Inc.,  is  hereby  NOTIFIED  of  this   APPARENT 
LIABILITY FOR  A  FORFEITURE in  the  amount of  eleven  thousand 
dollars ($11,000) for willfully and repeatedly violating Sections 
73.1125(a), 73.1560(a)  and 73.1745(a)  of the  Rules at  station 
KSKE. 

     12.  IT IS FURTHER ORDERED THAT, pursuant to Section 1.80 of 
the Commission's Rules, within thirty days of the release date of 
this NAL, Pilgrim Communications, Inc., SHALL PAY the full amount 
of the  proposed forfeiture  or SHALL  FILE a  written  statement 
seeking reduction or cancellation of the proposed forfeiture.

     13.  Payment may  be  made by  mailing  a check  or  similar 
instrument, payable to  the order of  the Federal  Communications 
Commission, to the Forfeiture Collection Section, Finance Branch, 
Federal  Communications  Commission,  P.O.  Box  73482,  Chicago, 
Illinois  60673-7482.    The  payment   must  include   the   FCC 
Registration Number (FRN) and the NAL/Acct. No. referenced in the 
caption.  Requests for  payment of  the full amount  of this  NAL 
under an installment plan should be sent to:  Chief, Revenue  and 
Receivables Operations Group, 445 12th Street, S.W.,  Washington, 
D.C. 20554.13

     14.  The response, if any, must  be mailed to the Office  of 
the  Secretary,  Federal  Communications  Commission,  445   12th 
Street, S.W., Washington, D.C. 20554, ATTN: Enforcement Bureau  - 
Technical and Public Safety  Division and must include  NAL/Acct. 
No. referenced in the caption.

     15.  The Commission will not consider reducing or  canceling 
a forfeiture in response  to a claim of  inability to pay  unless 
the petitioner submits:   (1) federal  tax returns  for the  most 
recent  three-year  period;  (2)  financial  statements  prepared 
according to generally accepted accounting practices ("GAAP"); or 
(3)  some  other  reliable   and  objective  documentation   that 
accurately reflects  the petitioner's  current financial  status.  
Any claim  of inability  to pay  must specifically  identify  the 
basis for the claim by  reference to the financial  documentation 
submitted.  

     16.  Under the Small Business Paperwork Relief Act of  2002, 
Pub L. No.  107-198, 116 Stat.  729 (June 28,  2002), the FCC  is 
engaged in  a two-year  tracking process  regarding the  size  of 
entities involved  in forfeitures.   If you  qualify as  a  small 
entity and  if you  wish to  be  treated as  a small  entity  for 
tracking purposes, please  so certify  to us  within thirty  (30) 
days of this  NAL, either in  your response  to the NAL  or in  a 
separate  filing  to  be  sent  to  the  Federal   Communications 
Commission,  Enforcement  Bureau,   Technical  &  Public   Safety 
Division.   Your  certification  should  indicate  whether   you, 
including your parent  entity and its  subsidiaries, meet one  of 
the definitions  set forth  in  the list  provided by  the  FCC's 
Office of  Communications Business  Opportunities (``OCBO'')  set 
forth in Attachment A of this Notice of Apparent Liability.  This 
information will  be  used  for  tracking  purposes  only.   Your 
response or  failure to  respond to  this question  will have  no 
effect on your  rights and responsibilities  pursuant to  Section 
503(b)  of  the  Communications  Act.   If  you  have   questions 
regarding any  of  the  information contained  in  Attachment  A, 
please contact OCBO at (202) 418-0990.

     17.  IT IS FURTHER  ORDERED THAT  a copy of  this NOTICE  OF 
APPARENT LIABILITY shall  be sent by  regular mail and  certified 
mail number 7001 0320 0002  9702 9885, return receipt  requested, 
to Pilgrim Communications, Inc.,  54 Monument Circle, Suite  250, 
Indianapolis, Indiana 46204.


                              FEDERAL COMMUNICATIONS COMMISSION



                              Leo E. Cirbo
                              District Director, Denver Office

Enclosure:  Attachment A
_________________________

     1 47 C.F.R.  73.1125(a), 73.1560(a) and 73.1745(a).
     2 47 U.S.C.  503(b).
     3 Section 312(f)(1) of the Act, 47 U.S.C.  312(f)(1), which 
applies to violations  for which forfeitures  are assessed  under 
Section 503(b) of the Act,  provides that "[t]he term  'willful', 
when used with  reference to  the commission or  omission of  any 
act, means the conscious and deliberate commission or omission of 
such act, irrespective of any intent to violate any provision  of 
this Act or any rule  or regulation of the Commission  authorized 
by this Act...."  See Southern California Broadcasting Co., 6 FCC 
Rcd 4387 (1991). 
     4 Section 312(f)(2), which also applies to Section 503(b), 
provides: "[t]he term 'repeated', when used with reference to the 
commission or omission of any act, means the commission or 
omission of such act more than once or, if such commission or 
omission is continuous, for more than one day."
     5 See Main Studio and Program Origination Rules, 3 FCC Rcd 
5024, 5026 (1988).
     6 Jones Eastern of the Outer Banks, Inc., 6 FCC Rcd 3615, 
3616 and n.2 (1992), clarified, 7 FCC Rcd 6800 (1992).
     7 Jones Eastern of the Outer Banks, Inc., 7 FCC Rcd 6800, 
6802 (1992).
     8 12 FCC Rcd 17087 (1997), recon. denied, 15 FCC Rcd 303 
(1999).
     9 47 C.F.R.  1.80.
     10 See, e.g., Buchanan Broadcasting Company, Inc., 15 FCC 
Rcd 24363 (2000) (upholding a $4,000 forfeiture for exceeding 
nighttime power limits).
     11 See, e.g., American Broadcasting Educational Foundation, 
15 FCC Rcd 8630, 8630 (Enf. Bur. 2000) (imposing a $7,000 
forfeiture for violation of the main studio rules).
     12 47 U.S.C.  503(b)(2)(D).
     13 See 47 C.F.R.  1.1914.