Federal Register/Vol. 83, No. 159/Thursday, August 16, 2018
Total Page：16
File Type：pdf, Size：1020Kb
40764 Federal Register / Vol. 83, No. 159 / Thursday, August 16, 2018 / Notices Milestone Target date Commission Issues Study Plan Determination .............................................................................................................. November 8, 2018. Notice of Formal Study Dispute (if necessary) .............................................................................................................. November 28, 2018. Commission Issues Study Dispute Determination (if necessary) .................................................................................. February 6, 2019. Dated: August 10, 2018. SUMMARY: This document commences a Commission’s national television Nathaniel J. Davis, Sr., hearing to determine whether granting multiple ownership rule, as well as the Deputy Secretary. the applications filed by Tribune Media public interest requirements of the [FR Doc. 2018–17655 Filed 8–15–18; 8:45 am] Company (Tribune) and Sinclair Communications Act of 1934, as BILLING CODE 6717–01–P Broadcast Group, Inc. (Sinclair) seeking amended (the Act). to transfer control of Tribune 2. Among these applications were subsidiaries to Sinclair would be in the three that, rather than transfer broadcast DEPARTMENT OF ENERGY public interest. The Commission has television licenses in Chicago, Dallas, designated the applications for hearing and Houston directly to Sinclair, Federal Energy Regulatory after finding that there were substantial proposed to transfer these licenses to Commission and material questions of fact as to other entities. According to the whether; Sinclair was a ‘‘real party in proposals, Sinclair would divest WGN– Notice of Effectiveness of Exempt interest’’ to the sale of certain broadcast TV, Chicago, Illinois, to WGN TV, LLC, Wholesale Generator and Foreign stations; Sinclair engaged in a newly-created entity by Steve Fader, Utility Company Status misrepresentation and/or lack of candor an individual with no broadcast in its applications with the Commission; Docket Nos. experience, for a purchase price of and consummation of the overall approximately $60 million. Sinclair East Hampton Energy Storage transaction would be in the public would also divest KDAF(TV), Dallas Center, LLC ................................. EG18–80–000 interest, including whether it would Texas, and KIAH(TV), Houston, Texas, Montauk Energy Storage Center, LLC .............................................. EG18–81–000 comply with § 73.3555 of the to Cunningham Broadcast Corporation Armadillo Flats Wind Project, LLC .. EG18–82–000 Commission’s rules. (Cunningham) for a combined purchase Heartland Divide Wind Project, LLC EG18–83–000 DATES: Persons desiring to participate as price of approximately $60 million. The Antelope Expansion 2, LLC ............ EG18–84–000 parties in the hearing shall file a Commission notes that the proposed Pegasus Wind, LLC ........................ EG18–85–000 Thunder Spirit Wind, LLC ............... EG18–86–000 petition for leave to intervene not later transfer applications to Fader and Pratt Wind, LLC ............................... EG18–87–000 than September 17, 2018. Cunningham were withdrawn on July Stoneray Power Partners, LLC ....... EG18–88–000 ADDRESSES: File documents with the 18, 2018. Copenhagen Wind Farm, LLC ........ EG18–89–000 Rio Bravo Windpower, LLC ............. EG18–90–000 Office of the Secretary, Federal 3. Multiple formal pleadings have Minco Wind IV, LLC ........................ EG18–91–000 Communications Commission, 445 12th been filed opposing this latest Minco Wind V, LLC ......................... EG18–92–000 Street SW, Washington, DC 20554, with divestiture plan. Most opponents Lorenzo Wind, LLC ......................... EG18–93–000 a copy mailed to each party to the challenge the divestitures as ‘‘shams’’ Wildcat Ranch Wind Project, LLC ... EG18–94–000 Enbridge Rampion UK Ltd .............. FC18–5–000 proceeding. Each document that is filed intended to circumvent the local and in this proceeding must display on the national television multiple ownership Take notice that during the month of front page the docket number of this rules and find most egregious the July 2018, the status of the above- hearing, ‘‘MB Docket No. 17–179.’’ proposed divestitures to Fader and captioned entities as Exempt Wholesale FOR FURTHER INFORMATION CONTACT: Cunningham. Some parties question Generators or Foreign Utility Companies David Brown, [email protected], whether Sinclair will hold de facto became effective by operation of the Media Bureau, (202) 418–1645. control over WGN TV, LLC. Commission’s regulations. 18 CFR SUPPLEMENTARY INFORMATION: This is a Specifically, they question the 366.7(a) (2017). summary of the Hearing Designation reasonableness of the terms of the transaction, including a purchase price Dated: August 10, 2018. Order (Order), MB Docket No. 17–139, FCC 18–100, adopted July 18, 2018, and of only $60 million, and Sinclair’s plans Nathaniel J. Davis, Sr., released July 19, 2018. The full text of to enter into a Joint Sales Agreement Deputy Secretary. the Order is available for inspection and (JSA), Shared Services Agreement [FR Doc. 2018–17653 Filed 8–15–18; 8:45 am] copying during normal business hours (SSA), and Option with WGN TV, LLC BILLING CODE 6717–01–P in the FCC’s Reference Information at closing. The parties also question Center at Portals II, CY–A257, 445 12th Fader’s independence from Sinclair Street SW, Washington, DC 20554. The given that Fader and David Smith, FEDERAL COMMUNICATIONS full text is also available online at currently a director and controlling COMMISSION http://apps.fcc.gov/ecfs/. shareholder of Sinclair and formerly its CEO, are business partners outside of [MB Docket No. 17–179; FCC 18–100] Summary of the Hearing Designation the broadcast industry. Specifically, Order Fader is the CEO of Atlantic Automotive Sinclair Broadcast Group, Inc. and 1. On June 28, 2017, Sinclair Group (Atlantic), in which David Smith Tribune Media Company, Applications Broadcast Group, Inc. (Sinclair) and has a controlling interest and serves as for Transfer of Control of Tribune Tribune Media Company (Tribune) filed a member of its board of directors, and Media Company and Certain applications seeking to transfer control Atlantic is a Sinclair advertiser and Subsidiaries, WDCW(TV) of Tribune subsidiaries to Sinclair. tenant. Similarly, some parties argue AGENCY: Federal Communications Sinclair and Tribune have amended that the sale of stations in Dallas and Commission. their applications several times Houston to Cunningham are in name thereafter, in an attempt to bring the only and warrant a hearing. According ACTION: Notice. transaction into compliance with the to the objectors, problematic aspects of VerDate Sep<11>2014 17:15 Aug 15, 2018 Jkt 244001 PO 00000 Frm 00021 Fmt 4703 Sfmt 4703 E:\FR\FM\16AUN1.SGM 16AUN1 sradovich on DSK3GMQ082PROD with NOTICES Federal Register / Vol. 83, No. 159 / Thursday, August 16, 2018 / Notices 40765 the proposed divestitures of the Texas 6520, 6534–6535 par. 36 (2011) (citing party-in-interest to the WGN–TV, stations include: The intertwined Fenwick Island Broadcast Corp. & KDAF, and KIAH applications and if so, relationship between Sinclair and Leonard P. Berger, Decision, 7 FCC Rcd whether Sinclair engaged in Cunningham, particularly in light of 2978, 2979 (Rev. Bd. 1992) (citation misrepresentation and/or lack of candor past Commission findings regarding the omitted)). The test for determining in its applications with the Commission. nature of the relationship; the recent whether an entity is a real-party-in- Accordingly, based upon the record, the acquisition of the voting shares of interest in an application is whether Commission is unable to find that grant Cunningham by Michael Anderson, a that entity ‘‘has an ownership interest or of this transaction would be consistent Sinclair associate, for a $400,000 sales is or will be in a position to actually or with the public interest. Specifically, in price that is far below market value; the potentially control the operation of the view of the longstanding and fact that the children of Sinclair’s station and/or applicant,’’ High Sierra intertwined relationships between and controlling shareholders are Broadcasting, Inc., Order, 96 FCC.2d among Sinclair, Fader, and beneficiaries of trusts controlling the 423, 435 (Rev. Bd. 1983). In the related Cunningham, along with sales terms non-voting shares of Cunningham with context of determining de facto control that are atypically favorable to the the parents holding options to buy the of an applicant or a licensee, we have buyers (specifically, purchase price, voting shares in the future; and traditionally looked beyond legal title financing, and contractual agreements), Sinclair’s apparent guarantee of $53.6 and financial interests to determine who substantial and material questions of million of Cunningham’s debt. holds operational control of the station fact exist as to whether: (1) Sinclair was 4. Under section 309(d) of the Act, 47 and/or applicant, see WHDH, Inc., 17 the real party in interest to the sale of U.S.C. 309(d), ‘‘[i]f a substantial and FCC.2d 856, 863 (1969), aff’d sub nom., WGN–TV, KDAF(TV), and KIAH(TV); material question of fact is presented or Greater Boston Television Corp. v. FCC, (2) Sinclair engaged in if the Commission for any reason is 444 F.2d 841 (D.C. Cir. 1970). In misrepresentation and/or lack of candor unable to find that grant of the particular, the Commission examines in its applications