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

In the Matter of                   )
                              )    File No.:  EB-00-SJ-075
Santiago Varela                    )
Hormigonera Chaparro, Inc.              )
P.O. Box 818                       )
                              )    NAL/Acct. No.:  X3268-002
Aguada, PR 00620                   )    

                         FORFEITURE ORDER

  Adopted:     January 3, 2001          Released:     January  4, 

By the Chief, Enforcement Bureau:

                        I.  INTRODUCTION

     1.   In  this  Forfeiture  Order  (``Order''),  we  issue  a 
monetary forfeiture  in  the  amount  of  five  thousand  dollars 
($5,000)  against  Hormigonera   Chaparro,  Inc.  (``HCI'')   for 
willfully violating  Section 301  of  the Communications  Act  of 
1934, as amended (``the Act'').  1  The noted violation  involves 
HCI's operation  of a  two-way radio  station without  Commission 

     2.   On  September  26,  2000,  the  Commission's  San  Juan 
Resident Agent Office  (``San Juan Office'')  issued a Notice  of 
Apparent Liability for Forfeiture (``NAL'') in the amount of five 
thousand dollars ($5,000) to HCI for the noted violation.2    HCI 
responded to the NAL on October 17, 2000.

                         II.  BACKGROUND

     3.  HCI formerly  held the license  for Land Mobile  Station 
WPIK940.  HCI did not respond to Commission correspondence asking 
whether it constructed and placed Station WPIK940 in operation by 
the required date.  As a result, the Commission notified HCI,  by 
letter dated January 26, 1998 (``800H letter''), that its license 
for Station WPIK940 had automatically cancelled.3

     4.  On August 15,  2000, an agent from  the San Juan  Office 
(``the  agent'')  received  a   report  of  possible   unlicensed 
operation on the  frequency pair 464.425  MHz/469.425 MHz,  which 
formerly was assigned  to Station WPIK940.   On August 18,  2000, 
the  agent  telephonically  notified  both  HCI's  communications 
representative, Mr. Luis Rosario,  and HCI's owner, Mr.  Santiago 
Varela, that HCI's station was unlicensed.  On the same date, the 
agent sent a Notice of  Unlicensed Radio Operation (``NURO'')  to 
HCI by facsimile and by mail.

     5.  As  of  September 7,  2000,  the agent  had  received  a 
certified mail receipt indicating that HCI received the NURO  but 
had not received  a reply to  the NURO.  On  that date the  agent 
monitored transmissions on the frequency pair 464.425 MHz/469.425 
MHz.  Using  a mobile  automatic direction  finding vehicle,  the 
agent traced the transmissions to an antenna installed at RD 411, 
Km 0.4,  Aguada,  PR.   An  inspection  confirmed  that  HCI  was 
operating an unlicensed station from that location.
     6.  Based on the above, on  September 26, 2000, the San Juan 
Office issued  a  NAL in  the  amount of  five  thousand  dollars 
($5,000) to HCI for violation of Section 301 of the Act.   

     7.  In response to the  NAL, Mr. Varela requests  rescission 
of the proposed monetary  forfeiture but does  not deny that  HCI 
engaged in unlicensed operation.    Mr. Varela indicates that  -- 
prior to the monitoring on September 7, 2000 -- he instructed his 
communications provider  to  terminate the  unlicensed  operation 
immediately but, for unknown reasons, the communications provider 
did not do so.  Additionally, Mr. Varela states that he  acquired 
HCI in  September  1998  and  that no  one  brought  the  license 
cancellation to his attention.4

                        III.  DISCUSSION

     8.  As  the  NAL  explicitly states,  the  San  Juan  Office 
assessed  the  proposed  forfeiture   amount  in  this  case   in 
accordance with  Section 503  of the  Act,5 Section  1.80 of  the 
Rules,6 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,  in  examining  Mr.  Varela's  response,  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 other such matters as justice may require.7 

     9.   Section  301  of  the  Act  prohibits  radio  operation 
``except under and in accordance with this Act and with a license 
in that behalf granted under the provisions of this Act.'' 

     10.  Mr. Varela does not  deny the violation alleged in  the 
NAL.  In view of the facts set forth above, we conclude that  HCI 
operated  without   authorization  on   frequency  pair   464.425 
MHz/469.425 MHz on  September 26, 2000,  in willful violation  of 
Section 301 of the Act.  

     11.  Mr. Varela should have taken whatever steps were needed 
to terminate the unlicensed operation rather than simply relying 
on his communications provider to follow instructions.  The San 
Juan Office took Mr. Varela's unsuccessful attempt to terminate 
the unlicensed operation into account when it set the proposed 
forfeiture amount at $5,000, a reduction  from the base amount of 
$10,000 specified by the Policy Statement for unlicensed 
operation.  No further reduction is warranted.  

     12.  We have  examined Mr.Varela's  response to  the NAL  in 
light of the above statutory  factors and  the factors set  forth 
in the  Policy  Statement.   Taking all  of  these  factors  into 
account, we conclude that neither cancellation nor mitigation  of 
the  proposed  forfeiture  is  justified  and  that  the   proper 
forfeiture amount is $5,000.

                      IV.  ORDERING CLAUSES

     13.  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,8 Hormigonera Chaparro, Inc., IS LIABLE FOR A  MONETARY 
FORFEITURE in the amount of  $5,000 for willful violation of  the 
provisions of Section 301of the Act.

     14.  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.9  
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 note the 
NAL/Acct. No. referenced above.  Requests for full payment  under 
an installment plan  should be  sent to: Chief,  Credit and  Debt 
Management  Center,  445  12th  Street,  S.W.,  Washington,  D.C. 

     15.  IT IS FURTHER ORDERED  that a copy of this Order  shall 
be sent by  Certified Mail  -- Return Receipt  Requested, to  Mr. 
Santiago  Varela,  Hormigonera  Chaparro,  Inc.,  P.O.  Box  818, 
Aguada, PR 00602.


                         David H. Solomon
                         Chief, Enforcement Bureau


     1 47 U.S.C.  301.

     2 Notice of Apparent Liability for Forfeiture, NAL Acct. No. 
X3268-002 (Enf.  Bur., San  Juan Office,  released September  26, 

     3 The NAL uses the date August 26, 1998, which is the date 
the Wireless Telecommunications Bureau deleted the license for 
Station WPIK940 from the Commission's license records.

     4  Mr. Varela requested copies of the 800H letter and the 
certified mail receipt for that letter.  800H letters instruct 
recipients to return those letters to the Commission with their 
responses.  Since HCI did not return its 800H letter to the 
Commission, we do not have a copy of that letter.  We will mail a 
copy of the certified mail receipt concurrently.

     5  47 U.S.C.  503(b).

     6 47 C.F.R.  1.80.

7    7 47 U.S.C.  503(b)(2)(D).

     8 47 C.F.R.  0.111, 0.311, 1.80(f)(4).

     9 47 U.S.C.  504(a).

     10 See 47 C.F.R.  1.1914.