Federal Communications Commission
                      Washington, D.C. 20554

                                               In reply refer to:
                                                       1800C1-KMS
                                                       980050292
          

                          June 29, 1999

                                          Released: June 30, 1999

CERTIFIED MAIL -- RETURN RECEIPT REQUESTED              

KXOJ, Inc.
P.O. Box 1250
Sapulpa, Oklahoma  74067
                         Re:  Station KEOJ(FM), Caney, KS,
                               Station KEMX(FM), Locust Grove, OK          
Dear Licensee:
                    

     For the reasons discussed herein, this letter constitutes a NOTICE OF APPARENT LIABILITY FOR
A FORFEITURE pursuant to Section 503(b) of the Communications Act of 1934, as amended, (the "Act"),
for violations of Sections 73.1125 (station main studio and location) and 73.1201 (station identification) of the
Commission's Rules.  The Chief, Mass Media Bureau, takes this action pursuant to authority delegated him
under Section 0.283(c)(3) of the Commission's Rules.
  
     By letters dated June 30, 1998, August 17, 1998, and September 30, 1998, we inquired into allegations
that KXOJ, Inc., licensee of the above-captioned stations, violated: (1) Section 73.1125(a) of the Commission's
Rules by failing to maintain Station KEOJ(FM)'s and Station KEMX(FM)'s main studio within their respective
principal community contours; (2) Section 73.1125(c) of the Commission's Rules by failing to maintain a local
telephone listing in either Caney, Kansas or Locust Grove, Oklahoma, for the stations' toll-free numbers; (3)
and Section 73.1201 of the Commission's Rules by inserting  impermissible information between Station
KEOJ(FM)'s call letters and its community of license in its official identifications.  You responded on August
31, 1998, and October 12, 1998.  We have reviewed the allegations and your response, and on this basis,
conclude as follows.


     Main Studio.  A field inspection and subsequent inquiries revealed that you apparently violated the
Commission's main studio rule by locating Station KEOJ(FM)'s and Station KEMX(FM)'s main studios
outside their respective principal community contours, without first obtaining Commission authorization.  In
response to our inquiries, you indicated that these stations established their main studios in Sapulpa, Oklahoma
on October 15, 1992, and then at some later unspecified date relocated them to Tulsa, Oklahoma.  Based on
the information you submitted, both locations appear to be substantially outside the respective stations'
principal community contours.  You contend that the later consolidation of the stations' main studios at the
Tulsa location was undertaken for economic reasons, and with the assistance of a broadcast consulting firm
that failed to advise you that such relocation would first require a waiver of the Commission's rules.  You claim
that reestablishing and operating separate main studios in the stations' respective communities of license would
now prove to be prohibitively expensive, and that, if necessary, you will seek a rule waiver request in order to
avoid that requirement.
      
     At the time of the incidents described above, Section 73.1125 of the Commission's Rules, supra,
required FM licensees to construct their main studios within the station's principal community contour; at a
collocated main studio-transmitter site of a commonly-owned AM station licensed to serve the same principal
community; in the community the station is licensed to serve, at a point outside the principal community
contour; or elsewhere when good cause exists, and prior express authorization has been obtained.  See Report
and Order, "In the Matter of Amendment of Sections 73.1125 and 73.1130 of the Commission's Rules, the
Main Studio and Program Origination Rules for Radio and Television Broadcast Stations," 2 FCC Rcd 3215
(1987).  In the instant case, prior authorization to relocate the KEOJ(FM) and KEMX(FM) main studios to
locations outside those stations' respective principal community contours was required, but was not obtained. 
Moreover, we find no merit to your attempt to shift blame to your broadcasting consultant for the failure to
seek or obtain prior Commission authorization to relocate.  The Commission has long held that licensees remain
ultimately responsible for the acts and omissions of their employees, agents and consultants.  Gaffney
Broadcasting, Inc., 23 FCC 2d 912, 913 (1970), citing Eleven Ten Broadcasting Corp., 33 FCC 706 (1962). 
Consequently, it appears that those stations have been in continuing violation of the Commission's main studio
rule regarding their main studios' locations since October 15, 1992.

     In this case, the main studio rule also requires that the stations maintain local telephone numbers in
Caney, Kansas and Locust Grove, Oklahoma, or toll-free numbers so that local residents may contact them. 
You indicate that the stations did not maintain local numbers in their respective communities, but that they
instead utilized toll-free numbers.  While you acknowledge that those numbers were not locally listed, you
contend that the stations' practices complied with the rule because it does not specifically require that toll-free
numbers be locally listed.  Alternatively, you claim that the stations complied with the rule by informing
listeners of their toll-free numbers through broadcast announcements. You further explain that, in the case of
Locust Grove, the local telephone service, Salina-Spavinau Telephone Company, refuses to publish toll-free
numbers in its local directory.  Due to this, you maintained a toll-free listing in the Pryor, Oklahoma directory,
which you represent is distributed in the Locust Grove area, and constitutes compliance.  It appears, therefore,
that you did not violate Section 73.1125(c) of the Commission's Rules concerning maintenance of the stations'
toll-free numbers.  

     Station Identification.  Station KEOJ(FM) also apparently violated Section 73.1201 of the
Commission's Rules, the station identification rule, when two of its April 30, 1998 top-of-the-hour
identifications reported the community of license for Station KEOJ(FM) as "Bartlesville, Caney, Coffeyville." 
The rule provides that the station's official identification shall consist of the station's call letters immediately
followed by the community or communities identified in its license as the station's location.  Except for the
name of the licensee or the station's frequency or channel number, or both, as stated on the station's license,
no other insertion between the call letters and station location is permissible.  In response to our inquiry, you
indicate that, upon the advice of the Commission's staff, you took immediate action to correct your method of
station identification.  Nevertheless, Station KEOJ(FM), Caney, Kansas, has, on April 30, 1998, inserted
impermissible information between its call letters and community of license, and apparently violated the
pertinent rule.

      
     Sanction.  For the reasons set forth above, we find that a forfeiture is warranted for the apparent
violations of Sections 73.1125 and 73.1201 of the Commission's Rules.  From the information supplied, it
appears that the main studio violations at Stations KEOJ(FM) and KEMX(FM) first occurred on October 15,
1992, and have continued since then.  Accordingly, pursuant to Section 503(b) of the Act, you, KXOJ, Inc.,
licensee of the above-captioned radio stations, are hereby advised of your apparent liability for a forfeiture of
Fifteen Thousand Dollars ($15,000.00) for your apparent willful, repeated violations of Sections 73.1125 and
73.1201 of the Commission's Rules.

     In assessing this monetary forfeiture, we have taken into account the nature, circumstances, extent and
gravity of the violations, as well as the degree of culpability and the stations' prior enforcement history.  Section
503(b)(2)(D) of the Act, 47 U.S.C. Sec. 503(b)(2)(D).  We further note that the Report and Order "In the
Matter of the Commission's Forfeiture Policy Statement and Amendment of Section 1.80 of the Rules to
Incorporate the Forfeiture Guidelines," 12 FCC Rcd 17087 (July 28, 1997) ("Forfeiture Policy Statement"),
provides for a forfeiture of $7,000 as the base amount for a violation of the main studio rule, and $1,000 for
the failure to provide station identification.  In the instant case, we believe that the substantial duration and
continuing nature of the main studio violations, involving each of two stations, for a period of more than one
year, warrants the full amount for each.  See, e.g., The Dalton Group, Inc., 6 FCC Rcd 646 (1991) ($10,000
forfeiture for main studio, public inspection file and program origination rule violations that involved a single
station and continued for more than a year).
     

     In regard to this forfeiture proceeding, you are afforded a period of thirty (30) days from the date of
this letter "to show, in writing, why a forfeiture penalty should not be imposed or should be reduced, or to pay
the forfeiture.  Any showing as to why the forfeiture should not be imposed or should be 
reduced shall include a detailed factual statement and such documentation and affidavits as may be 









pertinent."  47 C.F.R. Section 1.80(f)(3).  Other relevant provisions of Section 1.80 are summarized in the
attachment to this letter.

     


                              FEDERAL COMMUNICATIONS COMMISSION




                              Roy J. Stewart
                              Chief, Mass Media Bureau

Attachment