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


In the Matter of                        )         File  No.:  EB-
01-DV-300
                              )         NAL/Acct.             No. 
                         200332800005
Pilgrim Communications, Inc.                 )                        
FRN 0006-1472-19
Licensee, KWYD(AM)                 )
Colorado Springs, Colorado              )

                  MEMORANDUM OPINION AND ORDER

     Adopted:  August 26, 2005               Released:  September 
2, 2005  

By the Acting Chief, Enforcement Bureau:

I.   INTRODUCTION

     1.   In this  Memorandum Opinion and  Order (``Order''),  we 
          deny  the petition  for reconsideration  (``petition'') 
          filed  by Pilgrim  Communications, Inc.  (``Pilgrim''), 
          licensee   of  Station   KWYD(AM),  Colorado   Springs, 
          Colorado.1   Pilgrim   seeks  reconsideration  of   the 
          Forfeiture  Order2  in  which  the  Chief,  Enforcement 
          Bureau  (``Bureau''), found  it liable  for a  monetary 
          forfeiture in  the amount  of $19,000  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'').3  

II.       BACKGROUND

     2.   On November 20, 2002, the Commission's Denver, 
          Colorado Field Office (``Denver Office'') issued a 
          Notice of Apparent Liability for Forfeiture (``NAL'')4 
          in the amount of $19,000 to Pilgrim.  The NAL was 
          based on findings by the Denver Office that: between 
          March 2001 and August 22, 2001, Pilgrim did not have 
          fully operational Emergency Alert System (``EAS'') 
          equipment at Station KWYD; on August 21, 2001 Pilgrim 
          did not reduce Station KWYD's power to the authorized 
          nighttime power level and it did not increase KWYD's 
          power to the authorized daytime power level on August 
          22, 2001; and Pilgrim did not have a full-time 
          management and staff presence during normal business 
          hours at KWYD's main studio from July 15 to August 22, 
          2001. 

     3.   Pilgrim responded to the NAL on January 21, 2003 and 
          supplemented its response on February 20, 2003.  On 
          May 19, 2004, the Bureau issued the subject Forfeiture 
          Order in which it upheld the NAL.  On June 18, 2004, 
          Pilgrim filed a petition for reconsideration of the 
          Forfeiture Order.  In its petition, Pilgrim does not 
          challenge the findings of violations against KWYD in 
          the Forfeiture Order.  However, Pilgrim does challenge 
          and requests reconsideration of the Bureau's finding 
          that neither cancellation nor reduction of the 
          forfeiture is warranted.  In support of its request, 
          Pilgrim notes PJB Communications of Virginia, Inc.,5 
          and cites to language therein stating that ``in some 
          cases, other financial indicators such as net losses, 
          may be relevant.6  Pilgrim notes that the financial 
          data it submitted demonstrated that KWYD had lost 
          money each year, except for 2000, when it was 
          marginally profitable.  Pilgrim also cites Renaissance 
          Radio, Inc.,7 in further support of its request for 
          cancellation or reduction of the forfeiture.       

III.      DISCUSSION

     4.   The forfeiture amount in this case was assessed in 
          accordance with Section 503(b) of the Communications 
          Act of 1934 as amended (``Act''), 8 Section 1.80 of 
          the Rules,9 and The Commission's Forfeiture Policy 
          Statement and Amendment of Section 1.80 of the Rules 
          to Incorporate the Forfeiture Guidelines.10  In 
          examining Pilgrim's petition, Section 503(b) of the 
          Act requires that the Commission 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 any other such matters as justice 
          may require.11  

     5.The general rule of PJB is that a licensee's gross 
revenues are the best indicator of its ability to pay a 
forfeiture.12  The Bureau followed that rule in the Forfeiture 
Order when it averaged  Pilgrim's gross revenues over a three-
year period and compared that amount to the forfeiture amount.  
As a result, the Bureau determined that the percentage of gross 
revenues represented by the forfeiture amount was within a range 
generally considered to be payable.13  While it is true that PJB 
recognizes that in some cases other financial indicators such as 
net losses may be relevant, it is not generally the case that net 
losses alone will mandate cancellation or reduction of a 
forfeiture.  As a matter of fact, PJB goes on to point out that 
if gross revenues are sufficiently great, the mere fact that a 
business is operating at a loss does not itself mean that it can 
not afford to pay a forfeiture.14  In Renaissance, the case cited 
by Pilgrim, the Bureau considered Renaissance's financial 
statements as well as its bankruptcy filing in determining that 
Renaissance could not pay the forfeiture.  Here, we do not have 
such a severe financial situation that it has resulted in a 
bankruptcy filing.  Moreover, Pilgrim has significant gross 
revenues in all three of the years that its financial 
documentation was reviewed and, when depreciation is added back, 
net income in two of those years.  Under the circumstances, we 
find that neither cancellation nor reduction of the forfeiture is 
appropriate.

IV.    ORDERING CLAUSES

     6.   Accordingly, IT IS ORDERED that, pursuant to Section 
405 of the Act15 and Section 1.106 of the Rules,16 Pilgrim 
Communications, Inc.'s petition for reconsideration of the May 
19, 2004 Forfeiture Order IS hereby DENIED.

     7.   IT IS ALSO ORDERED that, pursuant to Section 503(b) of 
the Act, and Sections 0.111, 0.311 and 1.80(f)(4) of the Rules,17 
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.

     8.Payment of the forfeiture shall be made in the manner 
provided in Section 1.80 of the Rules within 30 days of the 
release of the 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.18  
Payment of the forfeiture must be made by check or similar 
instrument, payable to the order of the Federal Communications 
Commission. The payment must include the NAL/Acct. No. and FRN 
No. referenced above. Payment bycheck or money order may be 
mailed to Federal Communications Commission, P.O. 
Box358340,Pittsburgh, PA 15251-8340. Payment by overnight mail 
may be sent toMellon Bank/LB358340,500 Ross Street, Room 
1540670, Pittsburgh, PA 15251. Payment by wire transfer may be 
made to ABA Number043000261, receiving bankMellon Bank, and 
account number911-6106.

     9.        IT IS FURTHER ORDERED that this Order shall be 
sent by regular mail and by certified mail, return receipt 
requested, to Pilgrim's counsel, Christopher L. Robbins, Esq., 
Wiley, Rein, and Fielding LLP, 1776 K Street, NW, Washington, DC  
20006.

                         FEDERAL COMMUNICATIONS COMMISSION       

                         Kris Anne Monteith
                         Acting Chief, Enforcement Bureau
_________________________

1 Pilgrim filed  a consolidated petition  for reconsideration  to 
encompass the instant Forfeiture  Order and the Forfeiture  Order 
issued to it  for violations  at Station  KSKE(AM).  See  Pilgrim 
Communications, Inc., 19  FCC Rcd  8877 (2004).   We address  the 
arguments raised regarding KSKE in a separate Memorandum  Opinion 
and Order.

2  Pilgrim  Communications,  Inc., 19  FCC  Rcd 8881  (Enf.  Bur. 
2004).

3 47 C.F.R.  11.35, 73.1125(a), 73.1560(a), and 73.1745(a).

4 Notice  of Apparent  Liability  for Forfeiture,  NAL/Acct.  No. 
200332800005 (Enf. Bur., Denver Office, November 20, 2002). 

5 PJB Communications of Virginia, Inc., 7 FCC Rcd 2088 (1992). 



6 Id. at 2089.

7 19 FCC Rcd 10494 (Enf. Bur., 2004).

8 47 U.S.C.  503(b).

9 47 C.F.R.  1.80.

10 12  FCC Rcd.  17087 (1997),  recon. denied,  15 FCC  Rcd.  303 
(1999).

11 47 U.S.C.  503(b)(2)(D).

12 PJB at 2089. 

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).  

14 Id. at 2089.

15 47 U.S.C.  405.

16 47 C.F.R.  1.106.

17 47 C.F.R.  0.111, 0.311, 1.80(f)(4).

18 See 47 U.S.C.  504(a).