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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-044
Licensee of Station KSKE(AM)         )            NAL/Acct.       No. 
Vail, Colorado                       200332800004
Facility ID # 16272                  )  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 eleven  thousand  dollars 
($11,000) to Pilgrim  Communications, Inc. ("Pilgrim"),  licensee 
of AM  radio station  KSKE  in Vail,  Colorado, for  willful  and 
repeated violation  of  Section 73.1125(a)  of  the  Commission's 
Rules (``Rules''), and willful  violation of Sections  73.1560(a) 
and 73.1745(a)  of the   Rules.1   The noted  violations  involve 
Pilgrim's failure to maintain a main studio for station KSKE, its 
failure to reduce KSKE's power  at sunset to the nighttime  level 
required by the  station authorization and  its exceeding  KSKE's 
authorized nighttime 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 eleven thousand dollars  ($11,000).2  
Pilgrim responded to  the NAL on  January 21, 2003,  and filed  a 
supplementary response on February 20, 2003.

                      II.  BACKGROUND     

     3.   Radio station KSKE is authorized to operate with  5,000 
watts of power during daytime hours and 217 watts between  sunset 
and sunrise, on frequency 610 kHz.  On May 9, 2001, an agent from 
the Denver Office monitored KSKE and took numerous field strength 
measurements at locations near the KSKE transmitter between  7:30 
p.m. to 9:00 p.m. MDT.   According to its station  authorization, 
KSKE should have switched from daytime to nighttime power at 8:15 
p.m.  The agent  observed no  change in the  field strength  from 
8:15 p.m. to 9:00 p.m.  

     4.   On May 10, 2001, the agent attempted to inspect  KSKE's 
main studio.   The agent went to the location listed for KSKE  in 
the local telephone directory,  0210 Edwards Village Blvd.,  Unit 
B-206, Edwards, Colorado, but found  no studio at that  location.  
Employees at a  business adjacent  to Unit B-206  told the  agent 
that they had no knowledge of a studio for KSKE in the  vicinity.  
The agent called the local  telephone number listed for KSKE  but 
found it  was  disconnected.  The  agent,  however, was  able  to 
contact Pilgrim's  corporate  office  in  Indianapolis,  Indiana, 
which informed him that Pilgrim had no staff in the Vail area and 
that Pilgrim's staff  at AM  station KLMO  in Longmont,  Colorado 
(approximately 160 miles from  Vail), remotely controlled  KSKE's 

     5.   Additionally, on  May  10,  2001,  the  agent  measured 
KSKE's field strength during daylight  hours and noted no  change 
from the May 9 nighttime measurements.  The agent then asked  the 
operator at  KLMO  in Longmont  to  reduce KSKE's  power  to  its 
authorized nighttime  level  through remote  control.   When  the 
operator did so, the reduction in KSKE's measured field  strength 
confirmed that KSKE had  been operating with  power in excess  of 
its authorized nighttime power on May 9, 2001.

     6.   On July 30, 2001, the Denver Office issued an  Official 
Notice of Violation (``NOV'') to Pilgrim for violations at  KSKE.  
In its response, Pilgrim stated  that, after notification by  the 
FCC, it corrected KSKE's  power level by  correcting an error  in 
the programming of the remote power control system.  Pilgrim also 
stated that it maintained a studio for KSKE in Edwards, Colorado, 
and that it had a telephone number and one employee there. 

     7.   On November 20, 2002, the Denver Office issued a NAL to 
Pilgrim for a forfeiture in the amount of eleven thousand dollars 
($11,000).  In its January 21, 2003, response to the NAL, Pilgrim 
states that KSKE is ``staffed by  a full time staff person  based 
at the station's studio'' in Eagle-Vail, Colorado; that the chief 
operator monitors KSKE's technical operations ``on a daily basis, 
using remote computer  access''; that it  has equipment in  place 
which is properly adjusted to assure compliance with the terms of 
KSKE's license; and that it has instituted daily manual checks to 
insure that  KSKE's power  level is  properly adjusted.   Pilgrim 
requests cancellation of the proposed forfeiture 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''),3 Section 1.80 of the  Rules,4 
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.5

     9.   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 
provides, 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.  
On May 9, 2001, Pilgrim did not reduce KSKE's power at sunset  to 
the level required by the station authorization and operated with 
power exceeding of  the authorized nighttime  level, in  willful6 
violation of Sections 73.1560(a) and 73.1745(a) of the Rules. 

     10.  Section 73.1125(a)  of the  Rules requires  that  every 
broadcast  station  licensee  maintain  a  main  studio  for  the 
station.   Although Pilgrim  claimed in its  response to the  NOV 
that it maintained a  main studio in  Edwards, Colorado, the  FCC 
agent found  that there  was  no main  studio at  that  location.  
Furthermore, during a telephone conversation on May 10, 2001, the 
staff member at  station KLMO who  remotely controlled KSKE  told 
the  agent  that  Pilgrim  formerly  had  a  studio  in  Edwards, 
Colorado, but had  closed it.   We conclude that  Pilgrim had  no 
main studio for station KSKE, in willful and repeated7  violation 
of Section 73.1125 of the Rules. 

     11.  To the extent that  Pilgrim now complies with  Sections 
73.1125(a), 73.1560(a) and 73.1745(a) of the Rules, no mitigation 
is  warranted  on  the  basis  of  Pilgrim's  correction  of  its 
violations of those rules.  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.'' 8

     12.  Finally, Pilgrim argues that,  if the proposed  $11,000 
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.9  
The Commission  has determined  that,  in general,  a  licensee's 
gross revenues are  the best indicator  of its ability  to pay  a 
forfeiture.10  After reviewing the  financial data submitted,  we 
find  that  the  proposed  monetary  forfeiture  should  not   be 
cancelled or reduced. 11

     13.  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 Section 73.1125(a) 
of the  Rules  and  willfully violated  Sections  73.1560(a)  and 
73.1745(a)  of  the  Rules  and  that  neither  cancellation  nor 
reduction  of  the  proposed   $11,000  monetary  forfeiture   is 

     14.  Pilgrim's response  to the  NAL indicates  that  KSKE's 
main studio currently has ``a  full time staff person'' but  does 
not indicate that there  is any managerial  presence at the  main 
studio.  To serve the needs and  interests of the residents of  a 
broadcast station's  community  of  license,  the  licensee  must 
maintain a full-time staff and managerial presence during  normal 
business hours.  12  Accordingly,  we will  require, pursuant  to 
Section  308(b)  of  the  Act,13  that  Pilgrim  report  to   the 
Enforcement Bureau within thirty (30) days of the release of this 
Order whether  there  is a  managerial  presence at  KSKE's  main 
studio and, if the  report indicates that  there is a  managerial 
presence, describe  the  managerial presence.   Pilgrim's  report 
must be  submitted in  the  form of  an  affidavit signed  by  an 
officer or director of the licensee.  If Pilgrim fails to  submit 
such  a report  or  we  find  that  Pilgrim  has  not  come  into 
compliance with our  main studio rule,  we will consider  further 
appropriate enforcement action.

                      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 eleven  thousand  dollars 
($11,000)  for   willfully  and   repeatedly  violating   Section 
73.1125(a)  of  the  Rules   and  willfully  violating   Sections 
73.1560(a) and 73.1745(a) of the Rules.

     16.  IT IS ALSO ORDERED that, pursuant Section 308(b) of the 
Act, Pilgrim must  submit the report  described in Paragraph  14, 
above, within 30 days from the release of this Order, to  Federal 
Communications   Commission,    Enforcement   Bureau,    Spectrum 
Enforcement Division,  445  12th  Street,  S.W.,  Room  7-A  820, 
Washington, D.C.  20554.

     17.  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. 
200332800004 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. 

     18.  IT IS FURTHER  ORDERED That a  copy of this  Forfeiture 
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.  73.1125(a), 73.1560(a) and 73.1745(a).
     2 Notice of Apparent Liability for Forfeiture, NAL/Acct. No. 
200332800004 (Enf. Bur., Denver Office, released November 20, 
     3 47 U.S.C.  503(b).
     4 47 C.F.R.  1.80.
     5 47 U.S.C.  503(b)(2)(D).
     6 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).  
     7 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).
     8 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 
     9 Since we consider only the three most recent federal 
income tax returns, we are not considering the 1998 return.
     10  See PJB Communications of Virginia, Inc., 7 FCC Rcd 
2088, 2089 (1992). 
     11 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).
     12 Jones Eastern of the Outer Banks, Inc., 6 FCC Rcd 3615, 
3616 and n.2 (1992), clarified, 7 FCC Rcd 6800 (1992).
     13 47 U.S.C.  308(b)
     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.