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Federal Communications Commission DA 15-1377
Before the
Federal Communications Commission
Washington, DC 20554
In the Matter of
Tesla Exploration, Inc.
Licensee of Station KD29596
Greenwood Village, Colorado
)
)
)
)
)
)
File No.: EB-FIELDNER-12-00004489
1
NAL/Acct. No.: 201232400008
FRN: 0021136999
ORDER
Adopted: December 28, 2015 Released: February 10, 2016
By the Chief, Enforcement Bureau:
1. The Enforcement Bureau (Bureau) of the Federal Communications Commission has
entered into a Consent Decree to resolve its investigation into whether Tesla Exploration, Inc. (Tesla)
violated the Commission’s rules by operating radio transmitting equipment on eleven unauthorized
frequencies. The Commission’s station authorization rules ensure that licensees operate their stations
within authorized parameters to avoid interference with public safety and other licensed operations and
support the security and available of the nation’s wireless networks. In response to a complaint of
interference to a police dispatch center, FCC agents determined that the interference was caused by a
multi-site, multi-frequency geo-surveying project conducted by Tesla. During the investigation, the
agents determined that Tesla operated on eleven unauthorized frequencies. To settle this matter, Tesla
admits that its unauthorized operations violated the Commission’s rules, will implement a comprehensive
compliance plan, and will pay a $50,000 civil penalty.
2. After reviewing the terms of the Consent Decree and evaluating the facts before us, we
find that the public interest would be served by adopting the Consent Decree and resolving the Notice of
Apparent Liability for Forfeiture
2
against Tesla regarding its compliance with its station operation
obligations under Section 301 of the Communications Act, as amended (Act)
3
and Section 1.903(a) of the
Commission’s rules (Rules).
4
3. In the absence of material new evidence relating to this matter, we do not set for haring
the question of Tesla’s qualifications to hold or obtain any Commission license or authorization.
5
4. Accordingly, IT IS ORDERED that, pursuant to Sections 4(i) and 503(b) of the Act
6
and
the authority delegated by Sections 0.111 and 0.311 of the Rules,
7
the attached Consent Decree IS
ADOPTED and its terms incorporated by reference.
5. IT IS FURTHER ORDERED that the above-captioned matter IS TERMINATED.
1
The investigation initiated under EB-11-PA-0153 was subsequently assigned File No. EB-FIELDNER-12-
00004489. All further correspondence related to this matter should reflect the new case number.
2
Tesla Exploration, Inc., Notice of Apparent Liability for Forfeiture, 27 FCC Rcd 9808 (2012).
3
47 U.S.C. § 301.
4
47 C.F.R. § 1.903(a).
5
47 C.F.R. § 1.93(b).
6
47 U.S.C. § 154(i), 503(b).
7
47 C.F.R. §§ 0.111, 0.311.
Federal Communications Commission DA 15-1377
2
6. IT IS FURTHER ORDERED that a copy of this Order and Consent Decree shall be
sent by first class mail and certified mail, return receipt requested, to Tesla Exploration, Inc. at 6430
South Fiddlers Green Circle, Suite 100, Attn: Quinten Bailey, Greenwood Village, Colorado 80111, and
to Andrew C. Iverson, Counsel for Tesla Exploration, Inc., at Hamilton Faatz and Waller, PC, 5105 DTC
Parkway, Suite 475, Greenwood Village, Colorado 80111.
FEDERAL COMMUNICATIONS COMMISSION
Travis LeBlanc
Chief
Enforcement Bureau
Federal Communications Commission DA 15-1377
Before the
Federal Communications Commission
Washington, DC 20554
In the Matter of
Tesla Exploration, Inc.
Licensee of Station KD29596
Greenwood Village, Colorado
)
)
)
)
)
)
File No.: EB-FIELDNER-12-00004489
1
NAL/Acct. No.: 201232400008
FRN: 0021136999
CONSENT DECREE
1. The Enforcement Bureau of the Federal Communications Commission and Tesla
Exploration, Inc. (Tesla), by their authorized representatives, hereby enter into this Consent Decree for
the purpose of terminating the Enforcement Bureau’s investigation into whether Tesla violated Section
301 of the Communications Act of 1934, as amended,
2
and Section 1.903(a) of the Commission’s rules
3
by operating radio transmitting equipment on eleven unauthorized frequencies.
I. DEFINITIONS
2. For the purposes of this Consent Decree, the following definitions shall apply:
(a) “Act” means the Communications Act of 1934, as amended.
4
(b) “Adopting Order” means an order of the Bureau adopting the terms of this Consent
Decree without change, addition, deletion, or modification.
(c) “Bureau” means the Enforcement Bureau of the Federal Communications
Commission.
(d) “Commission” and “FCC” mean the Federal Communications Commission and all
of its bureaus and offices.
(e) “Communications Laws” means collectively, the Act, the Rules, and the published
and promulgated orders and decisions of the Commission to which Tesla is subject
by virtue of its business activities, including but not limited to the Station
Authorization Rules.
(f) “Compliance Plan” means the compliance obligations, program, and procedures
described in this Consent Decree at paragraph 11.
(g) “Covered Employees” means all employees and agents of Tesla who perform, or
supervise, oversee, or manage the performance of, duties that relate to Tesla’s
responsibilities under the Communications Laws, including the Station
Authorization Rules.
(h) “Effective Date” means the date by which both the Bureau and Tesla have signed
the Consent Decree.
1
The investigation initiated under EB-11-PA-0153 was subsequently assigned File No. EB-FIELDNER-12-
00004489. All further correspondence related to this matter should reflect the new case number.
2
47 U.S.C. § 301.
3
47 C.F.R. § 1.903(a).
4
47 U.S.C. § 151 et seq.
Federal Communications Commission DA 15-1377
2
(i) “Investigation” means the investigation commenced by the Bureau in File No. EB-
11-PA-0153 regarding whether Tesla violated the Station Authorization Rules by
operating radio transmitting equipment on eleven unauthorized frequencies, which
culminated in the issuance of the NAL.
(j) “NAL” means the Notice of Apparent Liability for Forfeiture issued to Tesla on
August 3, 2012, proposing a $66,000 forfeiture for apparent violations of the Station
Authorization Rules.
5
(k) “Operating Procedures” means the standard internal operating procedures and
compliance policies established by Tesla to implement the Compliance Plan.
(l) “Parties” means Tesla and the Bureau, each of which is a “Party.”
(m) “Rules” means the Commission’s regulations found in Title 47 of the Code of
Federal Regulations.
(n) “Station Authorization Rules” mean Section 301 of the Act, Section 1.903(a) of the
Rules, and other provisions of the Act, the Rules, and Commission orders related to
the operation of stations in the Wireless Radio Services with a valid Commission
authorization and on an authorized frequency.
(o) “Tesla” means Tesla Exploration, Inc. and its affiliates, subsidiaries, predecessors-
in-interest, and successors-in-interest.
II. BACKGROUND
3. The Commission’s station authorization rules ensure that licensees operate their stations
within authorized parameters to avoid interference with public safety and other licensed operations and
support the security and available of the nation’s wireless networks. Section 301 of the Act states that no
person shall use or operate any apparatus for the transmission of energy or communications or signals by
radio within the United States, except under and in accordance with the Act and with a license issued by the
Commission.
6
Similarly, Section 1.903(a) of the Rules provides that stations in the Wireless Radio Services
must be used and operated only in accordance with the rules applicable to their particular service and with a
valid authorization granted by the Commission.
7
Section 1.903(b) further provides that the “holding of an
authorization does not create any rights beyond the terms, conditions, and period specified in the
authorization.”
8
4. Tesla is the licensee of Station KD29596 in Greenwood Village, Colorado. On August 3,
2012, the Commission issued the NAL against Tesla for apparently violating the Station Authorization
Rules by operating radio transmitting equipment on eleven unauthorized frequencies.
9
The unauthorized
operations caused harmful interference to licensed communications, including public safety operations.
10
5
Tesla Exploration, Inc., Notice of Apparent Liability for Forfeiture, 27 FCC Rcd 9808 (2012) (NAL).
6
47 U.S.C. § 301.
7
47 C.F.R. §1.903(a).
8
47 C.F.R. § 1.903(b).
9
NAL, 27 FCC Rcd at 9808–09, paras. 2–5. The NAL includes a more complete recitation of the facts and history
of this case and is incorporated herein by reference.
10
Id. at 9808, para. 2.
Federal Communications Commission DA 15-1377
3
Upon notification of its apparent violations, Tesla ceased operations on the unauthorized frequencies and
dismantled its radio transmitting equipment.
11
III. TERMS OF AGREEMENT
5. Adopting Order. The provisions of this Consent Decree shall be incorporated by the
Bureau in an Adopting Order.
6. Jurisdiction. Tesla agrees that the Bureau has jurisdiction over it and the matters
contained in this Consent Decree and has the authority to enter into and adopt this Consent Decree.
7. Effective Date; Violations. The Parties agree that this Consent Decree shall become
effective on the Effective Date as defined herein. As of the Effective Date, the Parties agree that this
Consent Decree shall have the same force and effect as any other order of the Commission.
8. Termination of Investigation. In express reliance on the covenants and representations
in this Consent Decree and to avoid further expenditure of public resources, the Bureau agrees to
terminate the Investigation. In consideration for the termination of the Investigation, Tesla agrees to the
terms, conditions, and procedures contained herein. The Bureau further agrees that, in the absence of new
material evidence, it will not use the facts developed in the Investigation through the Effective Date, or
the existence of this Consent Decree, to institute, on its own motion, any new proceeding, formal or
informal, or take any action on its own motion against Tesla concerning the matters that were the subject
of the Investigation. The Bureau also agrees that, in the absence of new material evidence, it will not use
the facts developed in the Investigation through the Effective Date, or the existence of this Consent
Decree, to institute, on its own motion, any new proceeding, formal or informal, or take any action on its
own motion against Tesla with respect to its basic qualifications, including its character qualifications, to
be a Commission licensee or hold Commission licenses or authorizations.
9. Admission of Liability. Tesla admits for the purpose of this Consent Decree and for
Commission civil enforcement purposes, and in express reliance on the provisions of paragraph 8 herein,
that its actions referenced in paragraph 4 herein and the NAL violated the Station Authorization Rules.
10. Compliance Officer. Within thirty (30) calendar days after the Effective Date, Tesla
shall designate a senior corporate manager with the requisite corporate and organizational authority to
serve as a Compliance Officer and to discharge the duties set forth below. The person designated as the
Compliance Officer shall be responsible for developing, implementing, and administering the Compliance
Plan and ensuring that Tesla complies with the terms and conditions of the Compliance Plan and this
Consent Decree. In addition to the general knowledge of the Communications Laws necessary to
discharge his or her duties under this Consent Decree, the Compliance Officer shall have specific
knowledge of the Station Authorization Rules prior to assuming his/her duties.
11. Compliance Plan. For purposes of settling the matters set forth herein, Tesla agrees that
it shall, within sixty (60) calendar days after the Effective Date, develop and implement a Compliance
Plan designed to ensure future compliance with the Communications Laws and with the terms and
conditions of this Consent Decree. With respect to the Station Authorization Rules, Tesla will
implement, at a minimum, the following procedures:
(a) Operating Procedures. Within thirty (30) calendar days after the Effective Date,
Tesla shall establish Operating Procedures that all Covered Employees must follow
to help ensure Tesla’s compliance with the Station Authorization Rules. Tesla’s
Operating Procedures shall include internal procedures and policies specifically
designed to ensure that it operates its radio stations in accordance with its
11
NAL, 27 FCC Rcd at 9809, para. 5. See Letter from Andrew Iverson, Esq., Hamilton Faatz and Waller, PC,
Counsel for Tesla Exploration, Inc., to Philadelphia Office, Northeast Region, Enforcement Bureau at 1–2 (received
Aug. 31, 2012) (on file in EB-FIELDNER-12-00004489).
Federal Communications Commission DA 15-1377
4
Commission authorization and on authorized frequencies. Tesla shall also develop a
Compliance Checklist that describes the steps that a Covered Employee must follow
to ensure compliance with the Station Authorization Rules.
(b) Compliance Manual. Within sixty (60) calendar days after the Effective Date, the
Compliance Officer shall develop and distribute a Compliance Manual to all
Covered Employees. The Compliance Manual shall explain the Station
Authorization Rules and set forth the Operating Procedures that Covered Employees
shall follow to help ensure Tesla’s compliance with the Station Authorization Rules.
Tesla shall periodically review and revise the Compliance Manual as necessary to
ensure that the information set forth therein remains current and accurate. Tesla
shall distribute any revisions to the Compliance Manual promptly to all Covered
Employees.
(c) Compliance Training Program. Tesla shall establish and implement a
Compliance Training Program on compliance with the Station Authorization Rules
and the Operating Procedures. As part of the Compliance Training Program,
Covered Employees shall be advised of Tesla’s obligation to report any
noncompliance with the Station Authorization Rules under paragraph 12 of this
Consent Decree and shall be instructed on how to disclose noncompliance to the
Compliance Officer. All Covered Employees shall be trained pursuant to the
Compliance Training Program within sixty (60) calendar days after the Effective
Date, except that any person who becomes a Covered Employee at any time after the
initial Compliance Training Program shall be trained within thirty (30) calendar
days after the date such person becomes a Covered Employee. Tesla shall repeat
compliance training on an annual basis, and shall periodically review and revise the
Compliance Training Program as necessary to ensure that it remains current and
complete and to enhance its effectiveness.
12. Reporting Noncompliance. Tesla shall report any noncompliance with the Station
Authorization Rules and with the terms and conditions of this Consent Decree within fifteen (15) calendar
days after discovery of such noncompliance. Such reports shall include a detailed explanation of: (i)
each instance of noncompliance; (ii) the steps that Tesla has taken or will take to remedy such
noncompliance; (iii) the schedule on which such remedial actions will be taken; and (iv) the steps that
Tesla has taken or will take to prevent the recurrence of any such noncompliance. All reports of
noncompliance shall be submitted to Federal Communications Commission, Enforcement Bureau,
Northeast Region, Philadelphia Office, One Oxford Valley Building, Suite 404, 2300 East Lincoln
Highway, Langhorne, Pennsylvania 19047, with a copy submitted electronically to NER-
Response@fcc.gov.
13. Compliance Reports. Tesla shall file compliance reports with the Commission ninety
(90) calendar days after the Effective Date, twelve (12) months after the Effective Date, twenty-four (24)
months after the Effective Date, and thirty-six (36) months after the Effective Date.
(a) Each Compliance Report shall include a detailed description of Tesla’s efforts
during the relevant period to comply with the terms and conditions of this Consent
Decree and the Station Authorization Rules. In addition, each Compliance Report
shall include a certification by the Compliance Officer, as an agent of and on behalf
of Tesla, stating that the Compliance Officer has personal knowledge that Tesla: (i)
has established and implemented the Compliance Plan; (ii) has utilized the
Operating Procedures since the implementation of the Compliance Plan; and (iii) is
not aware of any instances of noncompliance with the terms and conditions of this
Consent Decree, including the reporting obligations set forth in paragraph 12 of this
Consent Decree.
Federal Communications Commission DA 15-1377
5
(b) The Compliance Officer’s certification shall be accompanied by a statement
explaining the basis for such certification and shall comply with Section 1.16 of the
Rules and be subscribed to as true under penalty of perjury in substantially the form
set forth therein.
12
(c) If the Compliance Officer cannot provide the requisite certification, the Compliance
Officer, as an agent of and on behalf of Tesla, shall provide the Commission with a
detailed explanation of the reason(s) why and describe fully: (i) each instance of
noncompliance; (ii) the steps that Tesla has taken or will take to remedy such
noncompliance, including the schedule on which proposed remedial actions will be
taken; and (iii) the steps that Tesla has taken or will take to prevent the recurrence of
any such noncompliance, including the schedule on which such preventive action
will be taken.
(d) All Compliance Reports shall be submitted to Federal Communications
Commission, Enforcement Bureau, Northeast Region, Philadelphia Office, One
Oxford Valley Building, Suite 404, 2300 East Lincoln Highway, Langhorne,
Pennsylvania 19047, with a copy submitted electronically to NER-
Response@fcc.gov.
14. Termination Date. Unless stated otherwise, the requirements set forth in paragraphs 10
through 13 of this Consent Decree shall expire thirty-six (36) months after the Effective Date.
15. Civil Penalty. Tesla will pay a civil penalty to the United States Treasury in the amount
of fifty thousand dollars ($50,000) within thirty (30) calendar days of the Effective Date (the Civil
Penalty). Tesla shall send electronic notification of the Civil Penalty payment to NER-
Response@fcc.gov on the date payment is made. The payment must be made by check or similar
instrument, wire transfer, or credit card, and must include the NAL/Account Number and FRN referenced
above. Regardless of the form of payment, a completed FCC Form 159 (Remittance Advice) must be
submitted.
13
When completing the FCC Form 159, enter the NAL/Account Number in block number 23A
(call sign/other ID) and enter the letters “FORF” in block number 24A (payment type code). Below are
additional instructions that should be followed based on the form of payment selected:
? Payment by check or money order must be made payable to the order of the Federal
Communications Commission. Such payments (along with the completed Form 159) must be
mailed to Federal Communications Commission, P.O. Box 979088, St. Louis, MO 63197-
9000, or sent via overnight mail to U.S. Bank – Government Lockbox #979088,
SL-MO-C2-GL, 1005 Convention Plaza, St. Louis, MO 63101.
? Payment by wire transfer must be made to ABA Number 021030004, receiving bank
TREAS/NYC, and Account Number 27000001. To complete the wire transfer and ensure
appropriate crediting of the wired funds, a completed Form 159 must be faxed to U.S. Bank
at (314) 418-4232 on the same business day the wire transfer is initiated.
? Payment by credit card must be made by providing the required credit card information on
FCC Form 159 and signing and dating the Form 159 to authorize the credit card payment.
The completed Form 159 must then be mailed to Federal Communications Commission, P.O.
Box 979088, St. Louis, MO 63197-9000, or sent via overnight mail to U.S. Bank –
Government Lockbox #979088, SL-MO-C2-GL, 1005 Convention Plaza, St. Louis, MO
63101.
12
47 C.F.R. § 1.16.
13
An FCC Form 159 and detailed instructions for completing the form may be obtained at
http://www.fcc.gov/Forms/Form159/159.pdf.
Federal Communications Commission DA 15-1377
6
Questions regarding payment procedures should be addressed to the Financial Operations Group Help
Desk by phone, 1-877-480-3201, or by e-mail, ARINQUIRIES@fcc.gov.
16. Waivers. As of the Effective Date, Tesla waives any and all rights it may have to seek
administrative or judicial reconsideration, review, appeal or stay, or to otherwise challenge or contest the
validity of this Consent Decree and the Adopting Order. Tesla shall retain the right to challenge
Commission interpretation of the Consent Decree or any terms contained herein. If either Party (or the
United States on behalf of the Commission) brings a judicial action to enforce the terms of the Consent
Decree or the Adopting Order, neither Tesla nor the Commission shall contest the validity of the Consent
Decree or the Adopting Order, and Tesla shall waive any statutory right to a trial de novo. Tesla hereby
agrees to waive any claims it may otherwise have under the Equal Access to Justice Act
14
relating to the
matters addressed in this Consent Decree.
17. Severability. The Parties agree that if any of the provisions of the Consent Decree shall
be held unenforceable by any court of competent jurisdiction, such unenforceability shall not render
unenforceable the entire Consent Decree, but rather the entire Consent Decree shall be construed as if not
containing the particular unenforceable provision or provisions, and the rights and obligations of the
Parties shall be construed and enforced accordingly.
18. Invalidity. In the event that this Consent Decree in its entirety is rendered invalid by any
court of competent jurisdiction, it shall become null and void and may not be used in any manner in any
legal proceeding.
19. Subsequent Rule or Order. The Parties agree that if any provision of the Consent
Decree conflicts with any subsequent Rule or Order adopted by the Commission (except an Order
specifically intended to revise the terms of this Consent Decree to which Tesla does not expressly
consent) that provision will be superseded by such Rule or Order.
20. Successors and Assigns. Tesla agrees that the provisions of this Consent Decree shall be
binding on its successors, assigns, and transferees.
21. Final Settlement. The Parties agree and acknowledge that this Consent Decree shall
constitute a final settlement between the Parties with respect to the Investigation.
22. Modifications. This Consent Decree cannot be modified without the advance written
consent of both Parties.
23. Paragraph Headings. The headings of the paragraphs in this Consent Decree are
inserted for convenience only and are not intended to affect the meaning or interpretation of this Consent
Decree.
24. Authorized Representative. Each Party represents and warrants to the other that it has
full power and authority to enter into this Consent Decree. Each person signing this Consent Decree on
behalf of a Party hereby represents that he or she is fully authorized by the Party to execute this Consent
Decree and to bind the Party to its terms and conditions.
14
See 5 U.S.C. § 504; 47 C.F.R. §§ 1.1501–1.1530.
Federal Communications Commission DA 15-1377
7
25. Counterparts. This Consent Decree may be signed in counterpart (including
electronically or by facsimile). Each counterpart, when executed and delivered, shall be an original, and
all of the counterparts together shall constitute one and the same fully executed instrument.
________________________________
Travis LeBlanc
Chief
Enforcement Bureau
________________________________
Date
________________________________
David Buttle
President
Tesla Exploration, Inc.
________________________________
Date