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

In the Matter of                )
                                )  
Neu Ventures, Inc. d/b/a        )
Mountain Zone TV Systems        )    File No. EB-02-TS-070
                                )
Operator of Cable Systems in:   )
                                )    
Marfa, Texas                    )
Presidio, Texas                 )
Fort Davis, Texas               )
Balmorhea, Texas                )
Marathon, Texas                 )
Valentine, Texas                )
                                )
Request for Waiver of Section 11.11(a) of the     )    
Commission's Rules              )    
                                        
                              ORDER 

Adopted:  July 25, 2002                 Released:  July 30, 2002

By the Chief, Technical  and Public Safety Division,  Enforcement 
Bureau:

1.        In this  Order,  we  grant Neu  Ventures,  Inc.  d.b.a. 
  Mountain  Zone   TV  Systems   (``Mountain  Zone'')   temporary 
  waivers  of   Section  11.11(a)  of   the  Commission's   Rules 
  (``Rules'')  for the  each  of the  six  above-captioned  cable 
  television systems.   Specifically, we grant  a temporary,  24-
  month waiver  of Section 11.11(a) for  the Marfa, Texas  system 
  and a  temporary, 36-month waiver of  Section 11.11(a) for  the 
  Presidio,   Texas;  Fort   Davis,  Texas;   Balmorhea,   Texas; 
  Marathon,  Texas,   and  Valentine,   Texas  systems.   Section 
  11.11(a)  requires  cable  systems  serving  fewer  than  5,000 
  subscribers from  a headend  to either  provide national  level 
  Emergency  Alert System  (``EAS'') messages  on all  programmed 
  channels  or  install   EAS  equipment  and  provide  a   video 
  interrupt and  audio alert on all  programmed channels and  EAS 
  audio and video messages on at least one programmed channel  by 
  October 1, 2002.1

2.        The Cable Act of 1992  added new Section 624(g) to  the 
  Communications  Act  of 1934  (``Act''),  which  requires  that 
  cable  systems be  capable of  providing  EAS alerts  to  their 
  subscribers.2  In 1994, the Commission adopted rules  requiring 
  cable systems to participate in EAS.3  In 1997, the  Commission 
  amended the  EAS rules  to provide financial  relief for  small 
  cable systems.4  The Commission declined to exempt small  cable 
  systems  from the  EAS requirements,  concluding that  such  an 
  exemption would be  inconsistent with the statutory mandate  of 
  Section  624(g).5    However,  the   Commission  extended   the 
  deadline   for  cable   systems  serving   fewer  than   10,000 
  subscribers to  begin complying with the  EAS rules to  October 
  1, 2002,  and provided cable systems  serving fewer than  5,000 
  subscribers the option  of either providing national level  EAS 
  messages  on   all  programmed  channels   or  installing   EAS 
  equipment and  providing a video interrupt  and audio alert  on 
  all programmed channels and EAS audio and video messages on  at 
  least  one programmed  channel.6  In  addition, the  Commission 
  stated that  it would grant waivers of  the EAS rules to  small 
  cable  systems  on  a case-by-case  basis  upon  a  showing  of 
  financial  hardship.7   The Commission  indicated  that  waiver 
  requests must contain at least the following information:   (1) 
  justification for the waiver, with reference to the  particular 
  rule sections  for which  a waiver is  sought; (2)  information 
  about the financial status of the requesting entity, such as  a 
  balance sheet and  income statement for the two previous  years 
  (audited, if possible);  (3) the number of other entities  that 
  serve the  requesting entity's coverage area  and that have  or 
  are expected to  install EAS equipment; and (4) the  likelihood 
  (such  as proximity  or frequency)  of hazardous  risks to  the 
  requesting entity's audience.8

3.        Mountain Zone filed a  request for temporary waiver  of 
  Section  11.11(a)  for  the  six  captioned  cable  systems  on 
  February 15, 2002.   Mountain Zone seeks a 24-month waiver  for 
  the  Marfa,  Texas  system  and  a  36-month  waiver  for   the 
  Presidio,   Texas;  Fort   Davis,  Texas;   Balmorhea,   Texas; 
  Marathon, Texas,  and Valentine, Texas  systems. In support  of 
  its waiver request, Mountain  Zone states that each of the  six 
  systems  serves  small,  rural  communities,  and  each  system 
  serves between 32  and 682 subscribers.  Based on price  quotes 
  provided  by   EAS  equipment   manufacturers,  Mountain   Zone 
  estimates that  it would cost  approximately $9,000 to  install 
  EAS  equipment at each  of these  systems for a  total cost  of 
  $54,000.  Mountain  Zone asserts  that the  cost of  installing 
  EAS  equipment at  the six  systems will  impose a  substantial 
  financial hardship on it and provides financial statements  for 
  2000  and 2001  in support  of  this assertion.   In  addition, 
  Mountain Zone  submits that  its subscribers  will continue  to 
  have  ready  access to  national  EAS  information  from  other 
  sources,  including  its   cable  systems.   In  this   regard, 
  Mountain Zone notes that its subscribers currently have  access 
  to  national  EAS  messages on  at  least  43  percent  of  all 
  programmed  channels.   Mountain Zone  also  asserts  that  its 
  subscribers will have  access to EAS information through  over-
  the-air reception  of broadcast television  and radio  stations 
  and other sources.  

4.        Based upon our review of  the financial data and  other 
  information  submitted by  Mountain Zone,  we conclude  that  a 
  temporary, 24-month waiver  of Section 11.11(a) for the  Marfa, 
  Texas  system  and a  temporary,  36-month  waiver  of  Section 
  11.11(a)   for  the   Presidio,  Texas;   Fort  Davis,   Texas; 
  Balmorhea,  Texas;   Marathon,  Texas,  and  Valentine,   Texas 
  systems  are  warranted.9  In  particular,  we  find  that  the 
  estimated $54,000 cost  of EAS equipment for these small  cable 
  systems could impose a financial hardship on Mountain Zone. 

5.        We note that  the Commission recently  amended the  EAS 
  rules  to  permit  cable  systems  serving  fewer  than   5,000 
  subscribers  to   install  FCC-certified  decoder-only   units, 
  rather  than both  encoders  and  decoders, if  such  a  device 
  becomes  available.10    Based  on   comments  from   equipment 
  manufacturers, we  anticipate that such  a decoder-only  system 
  could  result  in  significant  cost  savings  to  small  cable 
  systems.11  

6.        Accordingly, IT IS ORDERED  that, pursuant to  Sections 
  0.111, 0.204(b)  and 0.311 of the  Rules,12 Neu Ventures,  Inc. 
  d.b.a. Mountain Zone TV Systems IS GRANTED a waiver of  Section 
  11.11(a) of  the Rules  until October  1, 2004  for its  Marfa, 
  Texas cable system and IS GRANTED a waiver of Section  11.11(a) 
  of the  Rules until October  1, 2005 for  its Presidio,  Texas; 
  Fort  Davis,  Texas; Balmorhea,  Texas;  Marathon,  Texas,  and 
  Valentine, Texas cable systems.

7.        IT IS FURTHER  ORDERED that Neu  Ventures, Inc.  d.b.a. 
  Mountain Zone  TV Systems place  a copy of  this waiver in  its 
  system files.

8.        IT IS FURTHER ORDERED that  a copy of this Order  shall 
  be sent by  Certified Mail Return Receipt Requested to  counsel 
  for  Neu  Ventures,  Inc.  d.b.a.  Mountain  Zone  TV  Systems, 
  Christopher  C. Cinnamon,  Esq.,  Cinnamon Mueller,  307  North 
  Michigan Avenue, Suite 1020, Chicago, Illinois 60601.

                         FEDERAL COMMUNICATIONS COMMISSION
                         


                         Joseph P. Casey
                         Chief, Technical and Public Safety 
Division
                         Enforcement Bureau
_________________________

  1 47 C.F.R.  11.11(a).

  2 Cable Television  Consumer Protection and Competition Act  of 
1992, Pub. L. No. 102-385,  16(b), 106 Stat. 1460, 1490  (1992).  
Section 624(g) provides that  ``each cable operator shall  comply 
with such standards as the  Commission shall prescribe to  ensure 
that viewers of video programming  on cable systems are  afforded 
the same emergency  information as is  afforded by the  emergency 
broadcasting system pursuant to Commission regulations ....''  47 
U.S.C.  544(g).  

  3 Amendment  of Part 73, Subpart  G, of the Commission's  Rules 
Regarding the Emergency  Broadcast System, Report  and Order  and 
Further Notice of Proposed Rule Making, FO Docket Nos. 91-171/91-
301, 10  FCC  Rcd  1786  (1994)  (``First  Report  and  Order''), 
reconsideration granted in part, denied in part, 10 FCC Rcd 11494 
(1995).

  4 Amendment  of Part 73, Subpart  G, of the Commission's  Rules 
Regarding the  Emergency  Broadcast  System,  Second  Report  and 
Order, FO  Docket Nos.  91-171/91-301, 12  FCC Rcd  15503  (1997) 
(``Second Report and Order'').

  5 Id. at 15512-13.

  6 Id. at 15516-15518.

  7 Id. at 15513.

  8 Id. at 15513, n. 59.

  9 The waiver for the Marfa, Texas system will extend 24  months 
from October 1, 2002,  until October 1, 2004  and the waiver  for 
the  Presidio,  Texas;  Fort  Davis,  Texas;  Balmorhea,   Texas; 
Marathon, Texas,  and Valentine,  Texas  systems will  extend  36 
months from October  1, 2002,  until October  1, 2005.   Mountain 
Zone also  specifically  requested  waiver  of  the  testing  and 
monitoring requirements of the EAS  rules for these six  systems.  
We clarify that the  waivers we are  granting also encompass  the 
EAS testing and monitoring requirements.  

  10 Amendment  of Part  11 of the  Commission's Rules  Regarding 
the Emergency Alert System,  EB Docket 01-66, FCC  02-64 at   71 
(released February 26, 2002).

  11 One manufacturer  estimated that an EAS decoder-only  system 
can reduce the cost by 64% over what a cable operator would spend 
for an encoder/decoder unit.  Id. at  70.

  12 47 C.F.R.  0.111, 0.204(b) and 0.311.