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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-300
                                     )
Licensee of Station KWYD(AM)         )            NAL/Acct.       No. 
Colorado Springs, Colorado           200332800005
Facility ID # 51816                  )  FRN  0006-1472-19
                                     )


                        FORFEITURE ORDER

Adopted:   May 17, 2004                 Released:   May 19, 2004

By the Chief, Enforcement Bureau:

                        I.   INTRODUCTION

     1.   In  this  Forfeiture  Order  (``Order''),  we  issue  a 
monetary forfeiture in  the amount of  nineteen thousand  dollars 
($19,000) to Pilgrim  Communications, Inc. ("Pilgrim"),  licensee 
of AM  radio  station KWYD  in  Colorado Springs,  Colorado,  for 
willful and  repeated violation  of Sections  11.35,  73.1125(a), 
73.1560(a) and 73.1745(a) of  the Commission's Rules  ("Rules").1  
The noted  violations involve  Pilgrim's  failure to  have  fully 
operational Emergency Alert System ("EAS") equipment, its failure 
to maintain the  requisite main studio  presence, its failure  to 
reduce KWYD's power at sunset to the nighttime level required  by 
the station authorization, its  failure to increase KWYD's  power 
at  sunrise  to  the  daytime  level  required  by  the   station 
authorization, its  exceeding KWYD's  authorized nighttime  power 
level and its operation with  power below the authorized  daytime 
power level.  

     2.   On  November   20,  2002,   the  Commission's   Denver, 
Colorado, Field  Office (``Denver  Office'') issued  a Notice  of 
Apparent Liability  for Forfeiture  (``NAL'')  to Pilgrim  for  a 
forfeiture in the amount of nineteen thousand dollars ($19,000).2  
Pilgrim responded to  the NAL on  January 21, 2003,  and filed  a 
supplementary response on February 20, 2003.

                         II.  BACKGROUND

     3.   Radio station KWYD is authorized to operate with 10,000 
watts of power during daytime  hours and 67 watts between  sunset 
and sunrise on frequency 1580 kHz.  On August 21, 2001, an  agent 
from the Denver  Office monitored  KWYD and  took numerous  field 
strength measurements  at  locations near  the  KWYD  transmitter 
between 7:10 p.m.  to 9:00  p.m. MDT.  According  to its  station 
authorization,  KWYD  should  have   switched  from  daytime   to 
nighttime power at 8:00 p.m.  The agent observed no change in the 
field strength from 8:00 p.m. to 9:00 p.m.  The agent  concluded, 
based on  his  observations  and experience,  that  KWYD's  power 
appeared to  remain  at approximately  the  station's  authorized 
daytime level,  10,000 watts,  throughout the  monitoring  period 
(7:10 p.m. to 9:00 p.m) and did not decrease at 8:00 pm.

     4.   On August 22, 2001,  from 5:40 a.m.  to 9:30 a.m.  MDT, 
the agent again  conducted numerous  field strength  measurements 
near KWYD's transmitter.  According to its station authorization, 
KWYD should have switched from nighttime to daytime power at 6:15 
a.m.  The agent observed no change in the field strength at  that 
time and also  observed that  KWYD's field  strength remained  at 
approximately the same  level throughout  the monitoring  period.  
After  the  monitoring,  the  agent  inspected  the  station  and 
observed that KWYD  was operating with  a power of  approximately 
225 watts.3  Specifically, KWYD was operating with about 336%  of 
the authorized nighttime power level from 5:40 a.m. to 6:15  a.m. 
and with about 2.25% of  the authorized daytime power level  from 
6:15 a.m. to 9:30 a.m.

     5.   On the  morning  of August  22,  2001, when  the  agent 
initially attempted to inspect the KWYD main studio at 490 Willow 
Springs Road, Fountain, Colorado, the main studio was closed  and 
unstaffed.  A sign on  the door provided  the name and  telephone 
number of the general manager, but indicated that, as of July 15, 
2001, the studio was open by appointment only.  After  contacting 
the  general  manager,  the  agent  was  able  to  complete   the 
inspection.  During the inspection of KWYD, the agent found that, 
although EAS  equipment was  installed, the  EAS system  was  not 
fully  operational  because  it  was  not  properly   programmed.  
Following the inspection and after  KWYD's power had been  raised 
to 10,000  watts, the  agent took  a new  field strength  reading 
which confirmed  that  KWYD  had been  operating  with  power  of 
approximately 10,000 watts on August 21, 2001.

     6.   On December 12, 2001, the  Denver Office issued an  NOV 
to Pilgrim for  the violations  discovered on August  21 and  22, 
2001, at station KWYD.  In its response, Pilgrim stated that  its 
remote control system, which controls KWYD's power level, was not 
programmed after KWYD's studio relocation  in March 2001 but  has 
now been programmed.  In addition, Pilgrim stated that the KWYD's 
EAS equipment  was  also  not  programmed  following  the  studio 
relocation but has now been programmed.  Pilgrim also stated that 
it has hired a person to staff its main studio between 9:00  a.m. 
and 5:00 p.m., Monday through Friday.

     7.   On November 20, 2002, the Denver Office issued a NAL to 
Pilgrim for  a  forfeiture in  the  amount of  nineteen  thousand 
dollars ($19,000).  In its January 21, 2003, response to the NAL, 
Pilgrim states that it has  replaced KWYD's EAS system; that  the 
EAS system  has  been  programmed  and  has  a  properly  trained 
operator; that the station is  required to reduce power at  night 
and daily manual checks have been instituted to assure that  KWYD 
reduces its  power at  the  proper times;  and that  KWYD's  main 
studio is  staffed from  9:00 a.m.  to 5:00  p.m. Monday  through 
Friday ``by a manager  and a full  time staff person.''   Pilgrim 
requested cancellation  on the  basis of  its correction  of  the 
violations  and  its  inability  to  pay  the  proposed  monetary 
forfeiture.  Pilgrim filed a  supplementary response on  February 
20, 2003,  containing copies  of its  1998, 1999,  2000 and  2001 
federal income tax returns.

                      III.      DISCUSSION

     8.   The  proposed  forfeiture  amount  in  this  case   was 
assessed in accordance with Section 503(b) of the  Communications 
Act of 1934, as amended  (``Act''),4 Section 1.80 of the  Rules,5 
and The Commission's Forfeiture Policy Statement and Amendment of 
Section  1.80  of  the   Rules  to  Incorporate  the   Forfeiture 
Guidelines, 12 FCC Rcd  17087 (1997), recon.  denied, 15 FCC  Rcd 
303 (1999)  (``Policy Statement'').   Section 503(b)  of the  Act 
requires that the  Commission, in  examining Pilgrim's  response, 
take into account the  nature, circumstances, extent and  gravity 
of the violation and, with respect to the violator, the degree of 
culpability, any history of prior  offenses, ability to pay,  and 
such other matters as justice may require.6

     9.   Section 11.35(a) of the  Rules requires that  broadcast 
stations have fully operational EAS equipment.   The FCC  agent's 
investigation  establishes  that  Pilgrim  did  not  have   fully 
operational EAS equipment at its  station between March 2001  and 
August 22, 2001.  Further, Pilgrim does not dispute that KWYD did 
not have fully operational EAS equipment during this time.  Based 
on the  facts before  us,  we find  that Pilgrim  willfully7  and 
repeatedly8 violated Section 11.35(a) of the Rules.     

     10.  Section  73.1560(a)  of  the  Rules  provides  that  AM 
stations must  be  maintained  as  near  as  practicable  to  the 
authorized antenna input power.  Section 73.1745(a) of the  Rules 
states, in  pertinent  part,  that  no  broadcast  station  shall 
operate with power other than that  specified and made a part  of 
the license unless otherwise  provided in Part  73 of the  Rules.  
We  find  that  Pilgrim  did  not  reduce  KWYD's  power  to  the 
authorized nighttime level at sunset on August 21, 2001; and  did 
not increase  KWYD's power  to the  authorized daytime  level  at 
sunrise on August 22, 2001 --  in willful and repeated  violation 
of Sections 73.1560(a) and 73.1745(a) of the Rules.

     11.  Section 73.1125(a)  of the  Rules requires  that  every 
broadcast  station  licensee  maintain  a  main  studio  for  the 
station. To serve the needs and interests of the residents of the 
station's community  of license,  the  licensee must  maintain  a 
full-time staff and  managerial presence  during normal  business 
hours.9  We  conclude that,  from  July 15  to August  22,  2001, 
Pilgrim did not have  a full time  management and staff  presence 
during normal business hours at the main studio of station  KWYD, 
in willful and  repeated violation of  Section 73.1125(a) of  the 
Rules. 

     12.  No mitigation is  warranted on the  basis of  Pilgrim's 
correction of  the  violations.   As  the  Commission  stated  in 
Seawest Yacht Brokers, 9 FCC Rcd 6099, 6099 (1994),  ``corrective 
action taken to  come into  compliance with  Commission rules  or 
policy is expected, and  does not nullify  or mitigate any  prior 
forfeitures or violations.'' 10

     13.  Finally, Pilgrim argues that,  if the proposed  $19,000 
forfeiture is imposed, it will be unable to pay that amount.   In 
support of its financial  hardship claim, Pilgrim submits  copies 
of its 1998, 1999,  2000 and 2001  federal income tax  returns.11  
The Commission  has determined  that,  in general,  a  licensee's 
gross revenues are  the best indicator  of its ability  to pay  a 
forfeiture.12  After reviewing the  financial data submitted,  we 
find  that  the  proposed  monetary  forfeiture  should  not   be 
cancelled or reduced. 13

     14.  We have examined Pilgrim's response to the NAL pursuant 
to the  statutory  factors above,  and  in conjunction  with  the 
Policy Statement as well.  As a result of our review, we conclude 
that Pilgrim willfully  and repeatedly  violated Sections  11.35, 
73.1125(a), 73.1560(a)  and  73.1745(a)  of the  Rules  and  that 
neither  cancellation  nor  reduction  of  the  proposed  $19,000 
monetary forfeiture is warranted.

                      IV.  ORDERING CLAUSES

     15.   Accordingly, IT IS  ORDERED that, pursuant to  Section 
503(b) of the Act,  and Sections 0.111,  0.311 and 1.80(f)(4)  of 
the Rules,14  Pilgrim  Communications,  Inc.,  IS  LIABLE  FOR  A 
MONETARY FORFEITURE in  the amount of  nineteen thousand  dollars 
($19,000) for willful and  repeated violation of Sections  11.35, 
73.1125(a), 73.1560(a) and 73.1745(a) of the Rules.

     16.  Payment of the forfeiture shall  be made in the  manner 
provided for in Section 1.80 of  the Rules within 30 days of  the 
release of this Order.  If the forfeiture is not paid within  the 
period specified, the case may  be referred to the Department  of 
Justice for collection pursuant to  Section 504(a) of the  Act.15  
Payment may be  made by  mailing a check  or similar  instrument, 
payable to the order of the Federal Communications Commission, to 
the Federal Communications Commission,  P.O. Box 73482,  Chicago, 
Illinois 60673-7482.  The payment should reference NAL/Acct.  No. 
200332800005 and  FRN 0006-1472-19.   Requests for  full  payment 
under an installment plan should  be sent to: Chief, Revenue  and 
Receivables  Group,  445  12th  Street,  S.W.,  Washington,  D.C. 
20554.16

     17.  IT IS FURTHER  ORDERED That a  copy of this  Forfeiture 
Order shall be sent by certified mail, return receipt  requested, 
to Pilgrim's  counsel,  Marnie K.  Sarver,  Esq., Wiley,  Rein  & 
Fielding LLP, 1776 K Street, N.W., Washington, D.C. 20006.


                              FEDERAL COMMUNICATIONS COMMISSION



                              David H. Solomon
                              Chief, Enforcement Bureau
_________________________

     1 47 C.F.R.  11.35, 73.1125(a), 73.1560(a) and 73.1745(a).
     2 Notice of Apparent Liability for Forfeiture, NAL/Acct. No. 
200332800005 (Enf. Bur., Denver Office, released November 20, 
2002).    
          
     3 Apparently, at some time between 9:00 p.m. on August 21, 
2001, and 5:40 a.m. on August 22, 2001, KWYD's power was reduced 
from about 10,00 watts to about 225 watts.
     4 47 U.S.C.  503(b).
     5 47 C.F.R.  1.80.
     6 47 U.S.C.  503(b)(2)(D).
     7 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,' 
... 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).  
     8 As provided by 47 U.S.C.  312(f)(2), a continuous 
violation is ``repeated'' if it continues for more than one day.   
The Conference Report for Section 312(f)(2) indicates that 
Congress intended to apply this definition to Section 503 of the 
Act as well as Section 312.  See H.R. Rep. 97th Cong. 2d Sess. 51 
(1982).  See Southern California Broadcasting Company, 6 FCC Rcd 
4387, 4388 (1991).
     9 Jones Eastern of the Outer Banks, Inc., 6 FCC Rcd 3615, 
3616 and n.2 (1992), clarified, 7 FCC Rcd 6800 (1992).
     10 See also Callais Cablevision, Inc., 17 FCC Rcd 22626, 
22629 (2002); Radio Station KGVL, Inc., 42 FCC 2d 258, 259 
(1973); and Executive Broadcasting Corp., 3 FCC 2d 699, 700 
(1966).
     11 Since we consider only the three most recent federal 
income tax returns, we are not considering the 1998 return.
     12  See PJB Communications of Virginia, Inc., 7 FCC Rcd 
2088, 2089 (1992). 
     13 Id. at 2089 (forfeiture not deemed excessive where it 
represented approximately 2.02 percent of the violator's gross 
revenues); Hoosier Broadcasting Corporation, 15 FCC Rcd 8640, 
8641 (Enf. Bur. 2002) (forfeiture not deemed excessive where it 
represented approximately 7.6 percent of the violator's gross 
revenues); Afton Communications Corp., 7 FCC Rcd 6741 (Com. Car. 
Bur. 1992) (forfeiture not deemed excessive where it represented 
approximately 3.9 percent of the violator's gross revenues).  We 
have reviewed Pilgrim's financial data in this case and another 
case involving Pilgrim simultaneously and have determined it is 
able to pay both forfeitures.  Pilgrim Communications, Inc., DA 
04-xxxx (Enf. Bur., released mm/dd/04).
     14 47 C.F.R.  0.111, 0.311, 1.80(f)(4).
     15 47 U.S.C.  504(a).
     16 See 47 C.F.R.  1.1914.