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

In the Matter of                )
                                )
Bayou Cable, Inc.               )    File No. EB-02-TS-082
                                )
Operator of Cable Systems in:   )
                                )    
Huttig, Arkansas                )
Strong, Arkansas                )
Marion, Louisiana               )
Rocky Branch, Louisiana         )
Sterlington, Louisiana          )
                                )
Request for Waiver of Section 11.11(a) of the     )    
Commission's Rules              )    
                                        
                              ORDER 

Adopted:  June 19, 2002                 Released:  June 24, 2002

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

1.        In this  Order, we  grant  Bayou Cable,  Inc.  (``Bayou 
  Cable'')  temporary   waivers  of  Section   11.11(a)  of   the 
  Commission's  Rules (``Rules'')  for the  five  above-captioned 
  cable television systems.  Specifically, we grant a  temporary, 
  24-month  waiver  of  Section  11.11(a)  for  the  Sterlington, 
  Louisiana  system and  temporary, 36-month  waivers of  Section 
  11.11(a) for  the Huttig, Arkansas;  Strong, Arkansas;  Marion, 
  Louisiana,  and  Rocky  Branch,  Louisiana  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.        Bayou Cable  filed a  request for  temporary waiver  of 
  Section 11.11(a) for the five captioned cable systems on  March 
  4,  2002.   Bayou  Cable  seeks  a  24-month  waiver  for   the 
  Sterlington, Louisiana  system and  a 36-month  waiver for  the 
  Huttig,  Arkansas;  Strong, Arkansas;  Marion,  Louisiana;  and 
  Rocky  Branch, Louisiana  systems.  In  support of  its  waiver 
  request, Bayou Cable states that these are small cable  systems 
  with Sterlington  serving 603 subscribers,  Strong serving  319 
  subscribers,  Huttig serving  284 subscribers,  Marion  serving 
  255  subscribers, and  Rocky  Branch serving  201  subscribers.  
  Based on price quotes provided by EAS equipment  manufacturers, 
  Bayou Cable estimates that it would cost approximately  $11,000 
  to install EAS equipment  at each of these systems for a  total 
  cost of  $55,000.  Bayou asserts that  this cost will impose  a 
  substantial  financial   hardship  on  it   and  provides   its 
  financial statement for 2001 in support of this assertion.   In 
  addition, Bayou submits  that its subscribers will continue  to 
  have  ready  access to  national  EAS  information  from  other 
  sources, including  its cable systems.   In this regard,  Bayou 
  Cable  notes that  its  subscribers currently  have  access  to 
  national EAS  messages on at least  one half of all  programmed 
  channels.  Bayou Cable  also asserts that its subscribers  will 
  have access to  EAS information through over-the-air  reception 
  of broadcast television and radio stations.  

4.        Based upon our review of  the financial data and  other 
  information  submitted  by Bayou  Cable,  we  conclude  that  a 
  temporary,  24-month  waiver   of  Section  11.11(a)  for   the 
  Sterlington, Louisiana  system and temporary, 36-month  waivers 
  of  Section   11.11(a)  for  the   Huttig,  Arkansas;   Marion, 
  Louisiana; Rocky  Branch, Louisiana, and  the Strong,  Arkansas 
  system  is  warranted.9   In  particular,  we  find  that   the 
  estimated $55,000 cost  of EAS equipment for these small  cable 
  systems could impose a financial hardship on Bayou Cable.  

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 Bayou Cable, Inc.  IS 
  GRANTED  a  waiver  of Section  11.11(a)  of  the  Rules  until 
  October 1,  2004 for  its Sterlington,  Louisiana cable  system 
  and IS GRANTED a waiver of Section 11.11(a) of the Rules  until 
  October 1,  2005 for  its Huttig,  Arkansas; Strong,  Arkansas; 
  Marion, Louisiana and Rocky Branch, Louisiana cable systems.

7.        IT IS FURTHER  ORDERED that Bayou  Cable, Inc. 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 Bayou Cable, Inc., 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 Sterlington, Louisiana system will  extend 
24 months from October 1, 2002, until     October 1, 2004 and the 
waiver  for  the  Huttig,  Arkansas;  Strong,  Arkansas;  Marion, 
Louisiana and  Rocky Branch,  Louisiana  systems will  extend  36 
months from October 1, 2002, until October 1, 2005.  Bayou  Cable 
specifically requested  a waiver  of the  testing and  monitoring 
requirements of the EAS rules for these two 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.