Letter re assignment of KKIC (AM) and KHJY (FM) -- March 20, 1996 -- Audio Services Division (FCC) USA

                    FEDERAL COMMUNICATIONS COMMISSION
                          WASHINGTON, D.C.  20554
          
                                                       IN REPLY REFER TO:
                                                       1800B3-LLS     


Michael J. Wilhelm, Esq.
1350 Connecticut Ave., N.W. 
Suite 905
Washington, D.C.  20036

Dan J. Alpert, Esq.
2120 N. 21st Rd. 
Suite 400
Arlington, VA  22201


                                In re:   KKIC(AM), Boise, Idaho
                                           BAL-951011EA

                                           KJHY(FM), Emmett, Idaho
                                           BALH-951011EB

                                           Petition for Reconsideration

Dear Counsel:

We have on file a January 16, 1996 petition filed on behalf of Ray Montierth
and Sawtooth Energy Reserves, Inc. ("Petitioners") seeking reconsideration of
the Commission's December 5, 1995 grant of the assignment of license of
stations KKIC(AM), Boise, Idaho from Northwest Broadcasting, Inc ("NBI") to
Western Pacific Inc. and KJHY(FM), Emmett, Idaho from Radio Broadcasting, Inc.
("RBI") to Capital West Inc.  Those transactions are related because Steve
Sumner is the majority stockholder of both NBI and RBI and John Tanner is the
sole shareholder of both Western Pacific Inc. and Capital West Inc. 
Essentially, Petitioners argue that Steve Sumner may have lost his right to
control the majority of the stock in the licensee corporations through default
judgments and stock sales, and thus he had no right to seek to sell the
stations to Mr. Tanner.  They also bring to our attention an injunction
issued by a local court.  For the reasons set forth below, we dismiss the
petition for reconsideration as procedurally defective. 

Petitioners were not parties to the underlying proceeding, and thus we would
not consider their petition for reconsideration unless they show good reason
why it was not possible for them to participate in the earlier stages of the
proceeding.  See 47 C.F.R. § 1.106(b)(1).  Petitioners fail to do so.  They
merely state that they were not informed of the pendency of the applications
by Steve Sumner and only learned of the applications through a newspaper
advertisement on November 30, 1995.  They do not, however, address the implied
notice effectuated by the Commission's public notice of October 24, 1995 or
the local public notice published pursuant to 47 C.F.R. § 73.3580.

We further note that an Idaho court issued a preliminary injunction on January
6, 1996 to prohibit the sale of the stations until the court resolves the
matters alleged, but also note that the sale had already been consummated by
the parties on December 6, 1995.  Because the injunction was issued after the
sale was approved and consummated, this is now a matter for the local courts. 
The Commission grant merely authorizes the parties to proceed with the
transaction and does not prejudice any relief the parties may ultimately be
entitled to under a civil suit.  Similarly, the issue of whether Steve Sumner
had the authority to sign the applications is a matter of state corporate law
and is beyond our jurisdiction.  See John R. Kingsbery, 71 FCC 2d 1173 (1979);
John F. Runner, Receiver (KBIF), 36 RR 2d 773 (1976); Transcontinental
Television Corp., 21 RR 945 (1961).  Only if a local court of competent
jurisdiction resolves the issues of state corporate law would the Commission
be in a position to determine whether any action is required on our part.

Accordingly, Ray Montierth and Sawtooth Energy Reserves, Inc.'s petition for
reconsideration of grant of the applications assigning KKIC(AM), Boise, Idaho
from Northwest Broadcasting, Inc. to Western Pacific Inc. and KJHY(FM),
Emmett, Idaho from Radio Broadcasting, Inc. to Capital West Inc. IS HEREBY
DISMISSED.  Again, we emphasize that the Commission's grant of the assignment
application is not intended to prejudice any relief to which a court
of competent jurisdiction may ultimately determine that any person is
entitled.


                                          Sincerely,



                                          Linda Blair, Chief
                                          Audio Services Division
                                          Mass Media Bureau