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                                   Before the

                       Federal Communications Commission

                             Washington, D.C. 20554


                                            )                                
     In the Matter of                                                        
                                            )                                
     Jerry Russell dba The Russell                                           
     Company                                )     File Number: EB-06-DL-095  
                                                                             
     Licensee of Station KWRD               )   NAL/Acct. No.: 200732500002  
                                                                             
     Henderson, Texas                       )               FRN: 0009607078  
                                                                             
     Facility ID # 71519                    )                                
                                                                             
                                            )                                


                  NOTICE OF APPARENT LIABILITY FOR FORFEITURE

                                                  Released: November 14, 2006

   By the Dallas District Office, South Central Region, Enforcement Bureau:

   I. INTRODUCTION

    1. In this Notice of Apparent Liability for Forfeiture ("NAL"), we find
       that Jerry Russell dba The Russell Company ("Russell"), licensee of AM
       Broadcast Radio station KWRD, in Henderson, Texas, apparently
       willfully and repeatedly violated Section 11.35(a)  of the
       Commission's Rules ("Rules") by failing to ensure the operational
       readiness of station KWRD's Emergency Alert System ("EAS"). We
       conclude, pursuant to Section 503(b) of the Communications Act of
       1934, as amended ("Act"), that Russell is apparently liable for a
       forfeiture in the amount of eight  thousand dollars ($8,000).

   II. BACKGROUND

    2. On June 7, 2006, an agent from the Commission's Dallas Office of the
       Enforcement Bureau ("Dallas Office") conducted an inspection at the
       main studio of station KWRD located in Henderson, Texas. No employees
       of Russell were present at the station. On January 31, 2006, Russell
       signed a Time Brokerage and Option Agreement ("Agreement") with a
       third party ("Broker"). The Agreement allowed Broker to use the
       station's facilities to broadcast programming at the station for up to
       24 hours a day, seven days a week, but reserved two hours of
       programming each week for Russell. Broker and Broker's staff were
       present during the inspection. Broker stated that the EAS equipment
       had not been operational for "quite awhile." He further clarified that
       the EAS system had not been functional since he had been at the
       station; over three months. The agent observed that a red fault light
       was illuminated on the front panel of the EAS encoder/decoder.
       Additionally, the most recent station EAS log entry dated "6/23/05"
       simply stated "E.B.S. OK." No entries were made in the log by Russell
       or Broker staff to identify the date or cause of the EAS system
       failure, or what steps were taken to remedy any failures.

   III. DISCUSSION

    3. Section 503(b) of the Act provides that any person who willfully or
       repeatedly fails to comply substantially with the terms and conditions
       of any license, or willfully or repeatedly fails to comply with any of
       the provisions of the Act or of any rule, regulation or order issued
       by the Commission thereunder, shall be liable for a forfeiture
       penalty. The term "willful" as used in Section 503(b) has been
       interpreted to mean simply that the acts or omissions are committed
       knowingly. The term "repeated" means the commission or omission of
       such act more than once or for more than one day.

    4. Section 11.35 of the Rules requires all broadcast stations to ensure
       that EAS encoders, EAS decoders and Attention Signal generating and
       receiving equipment are installed and operational so that the
       monitoring and transmitting functions are available during the times
       the station is in operation. Broadcast stations must also determine
       the cause of any failure to receive required monthly and weekly EAS
       tests, and must indicate in the station's log why any required tests
       were not received and when defective equipment is removed and restored
       to service. On June 7, 2006, station KWRD's EAS encoder/decoder was
       not operational when the station was in operation. A red fault light
       was illuminated on the front panel of the EAS encoder/decoder. Broker,
       who was in charge of the station during the inspection, admitted that
       the EAS equipment had not worked since he arrived at the station.
       Broker did not know when the EAS equipment first became defective, but
       he did observe that it had been defective for over 90 days. The most
       recent EAS log entry for the station was dated 6/23/05, and there was
       no evidence that the equipment was operational after that date or that
       any required weekly or monthly EAS tests had been conducted after that
       date. There were also no log entries describing when the EAS equipment
       first became defective. Based on the evidence before us, we find that
       Russell  apparently willfully and repeatedly violated Section 11.35(a)
       of the Rules by failing to ensure the operational readiness of the EAS
       equipment at station KWRD.

    5. Pursuant to The Commission's Forfeiture Policy Statement and Amendment
       of Section 1.80 of the Rules to Incorporate the Forfeiture Guidelines,
       ("Forfeiture Policy Statement"), and Section 1.80 of the Rules, the
       base forfeiture amount for EAS equipment not operational is $8,000. In
       assessing the monetary forfeiture amount, we must also take into
       account the statutory factors set forth in Section 503(b)(2)(D) of the
       Act, which include the nature, circumstances, extent, and gravity of
       the violations, and with respect to the violator, the degree of
       culpability, and history of prior offenses, ability to pay, and other
       such matters as justice may require. Applying the Forfeiture Policy
       Statement, Section 1.80, and the statutory factors to the instant
       case, we conclude that Russell is apparently liable for a $8,000
       forfeiture.

   IV. ORDERING CLAUSES

    6. Accordingly, IT IS ORDERED that, pursuant to Section 503(b) of the
       Communications Act of 1934, as amended, and Sections 0.111, 0.311,
       0.314 and 1.80 of the Commission's Rules, Jerry Russell dba The
       Russell Company is hereby NOTIFIED of this APPARENT LIABILITY FOR A
       FORFEITURE in the amount of eight  thousand dollars ($8,000) for
       violation of Section 11.35(a), of the Rules.

    7. IT IS FURTHER ORDERED that, pursuant to Section 1.80 of the
       Commission's Rules within thirty days of the release date of this
       Notice of Apparent Liability for Forfeiture, Jerry Russell dba The
       Russell Company SHALL PAY the full amount of the proposed forfeiture
       or SHALL FILE a written statement seeking reduction or cancellation of
       the proposed forfeiture.

    8. Payment of the forfeiture must be made by check or similar instrument,
       payable to the order of the Federal Communications Commission.  The
       payment must include the NAL/Acct. No. and FRN No. referenced above.
       Payment by check or money order may be mailed to Federal
       Communications Commission, P.O. Box 358340, Pittsburgh, PA
       15251-8340.  Payment by overnight mail may be sent to Mellon
       Bank /LB 358340, 500 Ross Street, Room 1540670, Pittsburgh, PA
       15251.   Payment by wire transfer may be made to ABA Number 043000261,
       receiving bank Mellon Bank, and account number 911-6106.

    9. The response, if any, must be mailed to Federal Communications
       Commission, Enforcement Bureau, South Central Region, Dallas Office,
       9330 LBJ Freeway, Dallas, Texas 75243 and must include the NAL/Acct.
       No. referenced in the caption.

   10. The Commission will not consider reducing or canceling a forfeiture in
       response to a claim of inability to pay unless the petitioner submits:
       (1) federal tax returns for the most recent three-year period; (2)
       financial statements prepared according to generally accepted
       accounting practices ("GAAP"); or (3) some other reliable and
       objective documentation that accurately reflects the petitioner's
       current financial status. Any claim of inability to pay must
       specifically identify the basis for the claim by reference to the
       financial documentation submitted.

   11. Requests for payment of the full amount of this Notice of Apparent
       Liability for Forfeiture under an installment plan should be sent to:
       Associate Managing Director - Financial Operations, Room 1A625, 445
       12th Street, S.W., Washington, D.C. 20554.

   12. IT IS FURTHER ORDERED that a copy of this Notice of Apparent Liability
       for Forfeiture shall be sent by Certified Mail, Return Receipt
       Requested, and regular mail, to Jerry Russell dba The Russell Company
       at its address of record.

   FEDERAL COMMUNICATIONS COMMISSION

   James D. Wells

   District Director

   Dallas Office

   South Central Region

   Enforcement Bureau

   47 C.F.R. S 11.35(a).

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

   The Emergency Broadcast System predates EAS.

   Section 312(f)(1) of the Act, 47 U.S.C. S 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', when used with reference to the
   commission or omission of any act, 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).

   Section 312(f)(2) of the Act, 47 U.S.C. S 312(f)(2), which also applies to
   violations for which forfeitures are assessed under Section 503(b) of the
   Act, provides that "[t]he term 'repeated', when used with reference to the
   commission or omission of any act, means the commission or omission of
   such act more than once or, if such commission or omission is continuous,
   for more than one day."

   47 C.F.R. S 11.35(a), (b).

   12 FCC Rcd 17087 (1997), recon. denied, 15 FCC Rcd 303 (1999); 47 C.F.R.
   S1.80.

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

   47 U.S.C. S 503(b), 47 C.F.R. SS 0.111, 0.311, 0.314, 1.80, 11.35(a).

   See 47 C.F.R. S 1.1914.

   (...continued from previous page)

                                                              (continued....)

   Federal Communications Commission

                                       3

   Federal Communications Commission