PanAmSat Corp v. FCC ( 1999 )


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  •                   United States Court of Appeals
    FOR THE DISTRICT OF COLUMBIA CIRCUIT
    Argued September 15, 1999   Decided December 21, 1999
    No. 98-1408
    PanAmSat Corporation,
    Petitioner
    v.
    Federal Communications Commission and
    United States of America,
    Respondents
    BellSouth Wireless, Inc.,
    Intervenor
    On Petition for Review of an Order of the
    Federal Communications Commission
    Henry Goldberg argued the cause for petitioner.  With him
    on the briefs were Joseph A. Godles and W. Kenneth Ferree.
    C. Grey Pash, Jr., Counsel, Federal Communications Com-
    mission, argued the cause for respondent.  With him on the
    brief were Christopher J. Wright, General Counsel, Daniel
    M. Armstrong, Associate General Counsel, Joel I. Klein,
    Assistant Attorney General, U.S. Department of Justice,
    Catherine G. O'Sullivan and Nancy C. Garrison, Attorneys.
    Before:  Williams, Rogers and Garland, Circuit Judges.
    Opinion for the Court filed by Circuit Judge Williams.
    Williams, Circuit Judge:  Congress requires that the Fed-
    eral Communications Commission collect fees to finance its
    regulatory activities.  In 1985, as part of the Consolidated
    Omnibus Budget Reconciliation Act, it amended the Commu-
    nications Act of 1934 by adding a section 8, 47 U.S.C. s 158,
    which created a schedule of "application fees" for regulatees
    to pay to the FCC.  In 1993, again as part of the Omnibus
    Budget Reconciliation Act, it expanded FCC fee collection by
    adding a section 9, which mandated the collection of "regula-
    tory fees" to recover the costs of "enforcement activities,
    policy and rulemaking activities, user information services,
    and international activities."  47 U.S.C. s 159(a)(1).
    PanAmSat Corporation, an operator of satellites for tele-
    communications purposes, petitions for review of two separate
    aspects of the FCC's 1998 assessment of regulatory fees.
    See Assessment and Collection of Regulatory Fees for Fiscal
    Year 1998, 
    13 FCC Rcd 19820
     (1998) ("1998 Order").  Both
    challenges relate to the Commission's interpretation of s 9.
    In the first PanAmSat attacks the FCC's exemption of Com-
    sat Corporation from "space station fees," 47 U.S.C. s 159(g),
    for satellites Comsat operates as part of the Intelsat and
    Inmarsat systems.  In the second it challenges the FCC's
    assessment of fees on PanAmSat for "international circuits."
    
    Id.
    Both challenges confront a jurisdictional problem.  Al-
    though PanAmSat attacks a 1998 Order, the decisions it
    complains of are identical to the formulations reached by the
    Commission in its 1997 Order.  See Assessment and Collec-
    tion of Regulatory Fees for Fiscal Year 1997, 
    12 FCC Rcd 17161
    , 17187-89 (1997) ("1997 Order").  The statute authoriz-
    ing judicial review states that petitions for review must be
    filed within 60 days of the final order, see 28 U.S.C. s 2344;
    PanAmSat's petition is timely for the 1998 Order but not for
    that of 1997.  We assume without deciding that the clock does
    not automatically start fresh on each new annual iteration of
    an order that imposes burdens with respect to a specific year.
    Even with that assumption, PanAmSat has brought itself
    within standard exceptions to any inference of preclusion to
    be drawn from the 60-day limit.  See Independent Comm.
    Bankers of Am. v. Board of Governors of the Fed. Reserve
    Sys., 
    1999 U.S. App. LEXIS 28145
    , at *19 (D.C. Cir. Nov. 2,
    1999) (noting that typical statutory review periods rarely
    contain an "explicit bar" to challenges brought after the time
    limit).  Because the exceptions are different, we address the
    jurisdictional issue separately for each substantive challenge.
    Space Station Fees for Comsat
    Comsat is a private corporation formed pursuant to the
    Communications Satellite Act of 1962.  See 47 U.S.C. s 701
    et seq.  At Comsat's creation Congress designated it the
    United States's sole representative and signatory to the In-
    ternational Telecommunications Satellite Organization ("Intel-
    sat"), 47 U.S.C. s 731, and later the International Maritime
    Satellite Organization ("Inmarsat"), 47 U.S.C. s 752;  see also
    Comsat Corp. v. FCC, 
    114 F.3d 223
    , 225 (D.C. Cir. 1997).
    These organizations own satellites that are used by signato-
    ries, such as Comsat, to provide international communica-
    tions.  Comsat provides such services as a common carrier
    and is "fully subject to the provisions of title II and title III
    of [the Communications] Act," 47 U.S.C. s 741.  Title II
    governs regulation of common carriers, 47 U.S.C. s 201 et
    seq.;  Title III governs radio communication, 47 U.S.C. s 301
    et seq.  To participate in the launch of an Intelsat satellite,
    for example, Comsat must seek authority from the FCC
    pursuant to 47 U.S.C. s 309.  See, e.g., In the Matter of
    Comsat Corporation Application for authority to participate
    in a program for the construction of up to four Intelsat VIII
    satellites and to provide its authorized Intelsat services via
    these facilities, 
    12 FCC Rcd 15971
     (1997) ("Authority to
    Participate").
    Until 1985 the FCC required (with limited exceptions) that
    international fixed satellite services be provided via the Intel-
    sat system.  In that year it authorized provision of separate
    international satellite services;  in 1988 PanAmSat became the
    first U.S. provider of a separate system and it now operates
    its own worldwide fleet of satellites.  Unlike Comsat, PanAm-
    Sat operates as a non-common carrier.
    Both Comsat and PanAmSat pay s 8 application fees for
    space stations.  47 U.S.C. s 158.  Such fees apply to those
    who "launch and operate" space stations.  47 U.S.C. s 158(g)
    (Schedule of Application Fees, Common Carrier Services
    (16)(b)).  PanAmSat launches and operates its own satellites,
    so it obviously must pay the fees;  in 1987 the FCC concluded
    that Comsat must do so as well insofar as it "participate[s] in
    the construction, or in the launch and operation, of [a station
    in the Intelsat or Inmarsat system]."  In the Matter of
    Establishment of a Fee Collection Program to Implement the
    Provisions of the Consolidated Omnibus Budget Reconcilia-
    tion Act of 1985, 
    2 FCC Rcd 947
    , 974 & n.226 (1987) ("1987
    Order").  But when Congress established regulatory fees for
    space stations in 1993 under s 9, the FCC concluded that
    Comsat was exempt from such fees for its Intelsat and
    Inmarsat space stations, even though companies like PanAm-
    Sat were required to pay the new s 9 fees.  See 47 U.S.C.
    s 159(g) (Schedule of Regulatory Fees, Common Carrier
    Bureau);  Assessment and Collection of Regulatory Fees for
    Fiscal Year 1995, 
    10 FCC Rcd 13512
     (1995) ("1995 Order").
    Comsat's exemption from these fees persists through the
    1998 Order.
    PanAmSat says that its challenge to the Comsat exemption
    is timely for two reasons.  It argues first that an intervening
    decision of this circuit, Comsat Corp. v. FCC, 
    114 F.3d 223
    (D.C. Cir. 1997), reopened the issue, and second that the
    FCC's 1997 decision, although deciding the issue for 1997,
    explicitly kept the issue open for the future.
    The FCC exempted Comsat from space station fees back in
    1995, but in 1996 it noted that Comsat was not being charged
    for the regulatory costs it imposed on the FCC.1  This
    prompted the agency to adopt a "signatory fee" that applied
    to Comsat as the United States's signatory in organizations
    like Intelsat.  See Comsat, 
    114 F.3d at 225-26
    .  Comsat
    challenged the fee, and in an opinion filed May 30, 1997, this
    court invalidated it because the FCC had not adopted the
    signatory fee as a consequence of any identified "rulemaking
    proceedings or changes in law," a requisite for changes in
    regulatory fees under 47 U.S.C. s 159(b)(3).  See Comsat,
    
    114 F.3d at 227-28
    .  At that point, the FCC had already
    proposed retaining the signatory fee for 1997 in a March 5,
    1997 notice of proposed rulemaking.  The FCC's final order,
    filed June 26, 1997, dropped the signatory fee, because of the
    judicial intervention, and put nothing in its stead.  Noting our
    decision, the FCC said, "Accordingly, we will not, at this time,
    assess a fee to recover the costs of our regulatory activities in
    connection with Comsat's role as U.S. Signatory."  1997
    Order, 12 FCC Rcd at 17187.  The Commission noted that
    those costs amounted to "approximately 7.8% of all interna-
    tional costs."  Id. at 17187 n.26.  In the 1998 Order, the FCC
    made no attempt to recover these costs and did not discuss
    possible space station fees for Comsat, even though PanAm-
    Sat argued in its comments that Comsat should not be
    exempt.  See 1998 Order, 13 FCC Rcd at 19835-36 (discuss-
    ing fees for geostationary satellites without mentioning any
    attempt to recoup signatory-related costs attributable to
    Comsat).
    PanAmSat argues that this court's decision in Comsat
    reopened the issue of Comsat's fees sufficiently to render a
    challenge to the 1998 Order timely.  We said in Kennecott
    Utah Copper Corp. v. United States Dep't of Interior, 
    88 F.3d 1191
    , 1214 (D.C. Cir. 1996), that judicial review of agency
    __________
    1 Even in its 1995 Order exempting Comsat the FCC noted that
    Comsat was escaping fees for its regulatory costs to the FCC.  See
    1995 Order, 10 FCC Rcd at 13550 ("[W]e intend to explore other
    ways to recover the regulatory costs imposed on the Commission on
    behalf of Comsat's participation in the Intersat [sic] and Inmarsat
    programs.").
    action can sometimes amount to a "constructive reopening" of
    a prior agency decision, where "[f]or us to foreclose review of
    the agency's [new] decision to adhere to the status quo ante
    under changed circumstances, on the ground that the agency
    had not evidenced a willingness to reconsider the issue, would
    be to deny the significance of our own earlier ruling."  But
    we qualified the reopening concept by saying that it would not
    be available where the "parties had adequate notice of a
    forthcoming change that might alter their incentive to seek
    judicial review," id., and indeed found in that case that the
    "potential litigants were on notice by the petition for review"
    which led to the intervening change, id. at 1215.
    PanAmSat may have had adequate notice of Comsat's
    petition for review of the signatory fee.  Certainly it had
    notice of the intervening decision in Comsat when the FCC
    issued its 1997 Order.  But we need not decide whether the
    timing of our decision in Comsat was such that a challenge
    should have been brought to the 1997, and not the 1998,
    Order.  In the 1997 Order the FCC itself made statements
    that kept the issue open enough for a challenge to the 1998
    Order.
    The FCC said in the 1997 Order that it would not "at this
    time, assess a fee to recover the costs of our regulatory
    activities in connection with Comsat's role as U.S. Signatory."
    1997 Order, 12 FCC Rcd at 17187 (emphasis added).  We
    think this statement is most reasonably read as stating an
    intention by the FCC to hold its approach to recovery of costs
    from Comsat open, especially given "the entire context of the
    rulemaking," see National Ass'n of Reversionary Property
    Owners v. Surface Transp. Bd., 
    158 F.3d 135
    , 141 (D.C. Cir.
    1998) (quoting Public Citizen v. NRC, 
    901 F.2d 147
    , 150 (D.C.
    Cir. 1990)):  the 1995 statement that the Commission would
    "explore other ways to recover the regulatory costs," 1995
    Order, 10 FCC Rcd at 13550, the 1996 imposition of the
    signatory fee, and the initial 1997 proposal (thwarted by our
    decision) to continue the signatory fee.  With that back-
    ground the Commission's statement that it would not seek to
    recover the costs "at this time," far from merely "reaffirming
    [the agency's] prior position," Kennecott, 
    88 F.3d at 1213
    , was
    a commitment to continue the quest for a solution.  Accord-
    ingly, we find PanAmSat's challenge to the 1998 Order timely
    and reach the merits of PanAmSat's attack on the exemption
    of Comsat from the regulatory fees under s 9.2
    The Commission's theory is that exemption is commanded
    by the statute's "plain legislative history," though not by the
    text itself.  See Respondent's Br. at 24.  We examine this
    theory under the standard principle that if Congress has
    spoken to the precise question at issue, we must "give effect
    to the unambiguously expressed intent of Congress," but if
    Congress has not, we defer to a permissible agency construc-
    tion of the statute.  Chevron U.S.A. Inc. v. NRDC, 
    467 U.S. 837
    , 842-43 (1984).
    The statute itself seems to have no suggestion that Comsat
    should be exempt.  Section 9 directs the Commission to
    "assess and collect regulatory fees to recover the costs of ...
    enforcement activities, policy and rulemaking activities, user
    information services, and international activities."  47 U.S.C.
    s 159(a)(1).  Fees are derived from a number of "factors,"
    including the number of Commission employees in various
    "bureaus," and "the benefits provided to the payor of the fee
    by the Commission's activities, including such factors as
    service area coverage, shared use versus exclusive use, and
    other factors that the Commission determines are necessary
    in the public interest."  47 U.S.C. s 159(b)(1)(A).  If the
    Commission wants to adjust or amend the schedule of fees, it
    must satisfy certain preconditions.  See Comsat, 
    114 F.3d at 227-28
    .  The statute then provides a starting schedule of
    fees, which includes a "space station" category, under which
    Congress assessed a fee "per operational station in geosynch-
    __________
    2 PanAmSat has standing to challenge a decision to exempt
    Comsat from space station fees because Congress sets a fixed
    amount the FCC must recover through s 9 fees.  Thus an exemp-
    tion for Comsat from certain fees increases the amount that must
    be extracted from other regulatees, such as PanAmSat.
    ronous orbit."  47 U.S.C. s 159(g) (Schedule of Regulatory
    Fees, Common Carrier Bureau).
    The Commission's invocation of legislative history of course
    presupposes some obscurity in the statute.  "[W]e do not
    resort to legislative history to cloud a statutory text that is
    clear."  Ratzlaf v. United States, 
    510 U.S. 135
    , 147-48 (1994);
    see also Sutton v. United Air Lines, Inc., 
    119 S. Ct. 2139
    ,
    2146 (1999);  Connecticut Nat'l Bank v. Germain, 
    503 U.S. 249
    , 253-54 (1992);  United States v. Bost, 
    87 F.3d 1333
    , 1336
    (D.C. Cir. 1996).  It is most unclear to us where the neces-
    sary statutory ambiguity lurks.
    The plain terms of s 9 have already been quoted;  they
    clearly do not require an exemption for Comsat, and there is
    no obvious hook in the language on which to hang an exemp-
    tion.  Moreover, the Commission conceded in its 1995 Order
    that "regulatory costs [are] imposed on the Commission on
    behalf of Comsat's participation in the Intersat [sic] and
    Inmarsat programs."  1995 Order, at 13550.  Thus Comsat's
    payment of regulatory fees for its space stations would serve
    s 9's general purpose of recovering the Commission's costs
    for its regulatory activities.  And s 9 contains a category of
    "Exceptions" to the fee schedule, 47 U.S.C. s 159(h), saying
    that the fees should not apply to "(1) governmental entities or
    nonprofit entities;  or (2) to amateur radio operator licenses
    under part 97 of the Commission's regulations."  If Congress
    intended an exception for Comsat, we might expect to find it
    there.
    Further, the FCC's treatment of the analogous provision in
    s 8 argues for non-exemption.  Section 8 calls for a fee for an
    "application for authority to launch and operate" for "space
    stations," 47 U.S.C. s 158(g) (Schedule of Application Fees,
    Common Carrier Services (16)(b)), and the Commission in
    1987 concluded that Comsat must pay such a fee when it
    participates in the launch and operation of stations in the
    Intelsat and Inmarsat systems.  See 1987 Order, 2 FCC Rcd
    at 974 & n.226.  It is hard to see why the "space station"
    application fee under s 8 covers Comsat, but the "space
    station" regulatory fee under s 9 does not.  The Commis-
    sion's reading of s 8 was in place when Congress enacted s 9.
    At oral argument the Commission cautioned that a parallel
    construction of the two sections would force the Commission
    to extract s 9 fees when, for example, Comsat and other U.S.
    companies use Canadian and Mexican satellites;  according to
    Commission counsel, U.S. companies pay s 8 fees when ap-
    plying to use foreign satellites.  When pressed, however,
    counsel did not know whether such use of foreign satellites
    actually causes the Commission any regulatory burdens--a
    prerequisite for s 9 fees and a conceded reality for Comsat's
    participation in Intelsat and Inmarsat.
    Thus the statute plainly does not require--and may not
    permit--Comsat's exemption from space station regulatory
    fees.  Nor would the legislative history change the result,
    assuming the statute to be ambiguous enough to allow its
    consideration.  The Commission points to the Conference
    Report for the 1993 amendments, which explicitly incorporat-
    ed by reference, "[t]o the extent applicable, the appropriate
    provisions of the House Report (H.R. Rep. 102-207)."  See
    Conf. Rep. H. Rep. No. 213, 103d Cong., 1st Sess. 499 (1993).
    The latter explicated a virtually identical bill that passed the
    House in 1991 but failed to be enacted.  The relevant passage
    of the incorporated report reads as follows:
    The Committee intends that [space station fees] be as-
    sessed on operators of U.S. facilities, consistent with
    FCC jurisdiction.  Therefore, these fees will apply only
    to space stations directly licensed by the Commission
    under Title III of the Communications Act.  Fees will
    not be applied to space stations operated by international
    organizations subject to the International Organizations
    Immunities Act, 22 U.S.C. s 288 et seq.
    H.R. Rep. 102-207, at 26 (1991).  In exempting Comsat from
    s 9 space station regulatory fees the Commission relied solely
    on this legislative history and on the fact that Intelsat and
    Inmarsat are both, by executive order, international organiza-
    tions subject to the International Organizations Immunities
    Act.  See 1995 Order, 10 FCC Rcd at 13550 & n.30.
    The legislative history does not seem to us anywhere near
    as conclusive as it did to the Commission.  The 1991 report
    speaks of granting cost recovery authority "consistent with
    FCC jurisdiction" for "space stations directly licensed by the
    Commission under Title III of the Communications Act."
    H.R. Rep. 102-207, at 26.  Comsat must seek FCC authoriza-
    tion under Title III (i.e., "application for license," 47 U.S.C.
    s 309) for its launch and operation of Intelsat and Inmarsat
    satellites.  See Statement of Policy Concerning Procedures
    Applicable to Comsat's Applying for Commission Authoriza-
    tion to Participate in Certain Intelsat Activities, 46 FCC 2d
    338, 338 & n.2 (1974);  see, e.g., Authority to Participate, 
    12 FCC Rcd 15971
    , 15971 n.1 (1997).  Thus imposing s 9 fees on
    Comsat is consistent with the FCC's Title III licensing juris-
    diction.  It was this precise rationale that led the FCC to
    include Comsat in the s 8 application fees.  See 2 FCC Rcd
    at 974 & n.226.
    At oral argument the Commission attempted a delicate
    distinction between, on the one hand, applications for satellite
    licenses, and on the other hand, Comsat's applications for
    approvals of its participation in the launch and operation of
    Intelsat satellites.  The Commission insisted that, even
    though it issues its approvals of the latter under the authority
    of 47 U.S.C. s 309, see Authority to Participate, 12 FCC Rcd
    at 15971 n.1, which relates exclusively to licensing, it does not
    "license" Intelsat satellites.  But it seems perfectly reason-
    able to say under these circumstances that the Commission
    "licenses" Comsat's operation of Intelsat satellites.  Thus, the
    legislative history's embrace of fees for satellites "directly
    licensed by the Commission under Title III" seems reason-
    ably to encompass Comsat.
    Even if we take the 1991 House report as gospel, the key
    passage seems most plausibly to leave Comsat subject to fees
    for the regulatory activity that it generates, and to exempt
    only organizations like Intelsat and Inmarsat themselves.
    Both organizations are covered by the International Organi-
    zations Immunities Act, 22 U.S.C. s 288 et seq., and their
    exemption would be consistent with the many privileges,
    exemptions, and immunities such organizations enjoy.  See,
    e.g., 22 U.S.C. s 288a(d) ("Insofar as concerns customs duties
    and internal-revenue taxes imposed upon or by reason of
    importation, and the procedures in connection therewith;  the
    registration of foreign agents;  and the treatment of official
    communications, the privileges, exemptions, and immunities
    to which international organizations shall be entitled shall be
    those accorded under similar circumstances to foreign gov-
    ernments.").  Comsat, on the other hand, has no claim to such
    privileges.
    Given the ambiguity of the legislative history, and more
    importantly the absence of any clear exemption in the statute,
    the FCC was mistaken in its conclusion that the statute
    compelled an exemption for Comsat.  Neither the statute nor
    its legislative history speaks precisely to an exemption for
    Comsat.  Perhaps there is some ambiguity in the coverage of
    the "space station" category in s 9, such that the Commission
    might "permissibly" read the statute as allowing a Comsat
    exemption.  But the FCC reached its conclusion via a plain
    misreading of the statute, finding exemption compelled.  "An
    agency action, however permissible as an exercise of discre-
    tion, cannot be sustained 'where it is based not on the
    agency's own judgment but on an erroneous view of the
    law.' "  Sea-Land Service, Inc. v. Department of Transporta-
    tion, 
    137 F.3d 640
    , 646 (D.C. Cir. 1998) (quoting Prill v.
    NLRB, 
    755 F.2d 941
    , 947 (D.C. Cir. 1985)).  We accordingly
    grant the petition and remand the case to the Commission for
    reconsideration of Comsat's exemption from the s 9 space
    station fees.
    Non-common Carrier International Circuits
    PanAmSat's second challenge is to the FCC's assessment
    of fees on PanAmSat for "international circuits."  The statute
    explicitly covers such circuits.  47 U.S.C. s 159(g) (Schedule
    of Regulatory Fees, Common Carrier Bureau).  Until 1997
    the FCC collected such fees only from common carriers,
    leaving PanAmSat off the hook.  But in 1997 it extended the
    fees to non-common carriers.  See 1997 Order, 12 FCC Rcd
    at 17188.  This assessment persists in the 1998 Order.
    Responding to the Commission's invocation of the time bar
    implicit in the 60-day limit of 28 U.S.C. s 2344, PanAmSat
    argues that the Commission itself reopened the issue in 1998,
    by responding in detail to comments and by not relying on its
    prior resolution of the issue.  We agree.
    The controlling principle is that if an agency's response to
    comments "explicitly or implicitly shows that the agency
    actually reconsidered the rule, the matter has been reopened
    and the time period for seeking judicial review begins anew."
    National Ass'n of Reversionary Property Owners, 
    158 F.3d at 141
    ;  see also Public Citizen, 
    901 F.2d at 150
    .
    Here we find that the FCC did reconsider the issue in
    adopting the final rule, and did not expressly reaffirm its
    prior position as if the matter were settled in 1997.  Both
    findings are important.  First, the 1998 Order states that "we
    [the FCC] proposed [in the NPRM] to again assess the
    bearer circuit fee."  1998 Order, 13 FCC Rcd at 19837.  The
    Order then devotes five paragraphs to defending the fee
    against the various comments that were made, including
    PanAmSat's, and concludes by stating "we continue to believe
    that our regulation of these entities has sufficiently changed
    so that it is now appropriate for them to contribute to the
    recovery of Commission costs through payment of the bearer
    circuit fee."  Id. at 19839.
    Moreover, the FCC did not suggest in 1998 that it had
    settled the matter conclusively in 1997.  In a sense, then, the
    Commission's characterization of the petition for review as
    untimely invokes reasoning that it failed to make in its
    response to comments.  We do not ordinarily consider agency
    reasoning that "appears nowhere in the [agency's] order."
    Graceba Total Communications, Inc. v. FCC, 
    115 F.3d 1038
    ,
    1041 (D.C. Cir. 1997);  see also SEC v. Chenery Corp., 
    332 U.S. 194
    , 196 (1947).  Our reopening analysis does not create
    a disincentive to an agency's responding to the substance of a
    renewed attack on a rule:  without risking loss of the benefits
    of the 60-day rule, the Commission could have first relied on
    the fact that the matter was settled in 1997, and then
    discussed the continued justification of the fee.  But it opted
    only for the latter, and in a manner that reasonably reads as
    a reopening.  PanAmSat's claim is therefore not time-barred.
    The attack on the "international circuits" assessment has
    two elements.  First, PanAmSat says that the "international
    circuit" category as created by Congress applies only to
    common carriers, which PanAmSat is not.  Second, if the
    FCC has amended the fee schedule (which must be true if the
    first argument is sound), then it must justify the change on
    the basis of "changes in the nature of its services as a
    consequence of Commission rulemaking proceedings or
    changes in law," 47 U.S.C. s 159(b)(3);  see also Comsat, 114
    F.2d at 227, which PanAmSat says the Commission has failed
    to do.  We need not consider the first challenge:  assuming in
    PanAmSat's favor that the "international circuit" category
    originally excluded non-common carriers, we find that the
    Commission's decision to include non-common carriers is jus-
    tifiable on the basis of changes in the Commission's services
    that flow from earlier rulemakings.
    PanAmSat does not deny that regulatory changes have
    occurred in the services non-common carriers may offer.  The
    most noteworthy development was progressive relaxation of a
    prior ban on interconnection between non-common carriers
    and the public switched telephone network.  The Commission
    invoked this and other rulemaking changes in justifying the
    new fee assessment in its 1997 Order and represented that
    "the steady expansion of services offered by the non-common
    carrier satellite operators has greatly increased the need for
    our oversight of their commercial activities and imposed a
    greater burden on [Commission] staff and other resources."
    1997 Order, 12 FCC Rcd at 17189 & nn.30-32 (citing other
    rulemakings).  The Commission reiterated this rationale in
    the 1998 Order, and noted that "Commission staff [have] also
    spent considerable time representing non-[common] carrier
    satellite operators in international forums," which corre-
    sponds directly with one of the purposes of the regulatory
    fees, the recovery of costs for "international activities."  1998
    Order, 13 FCC Rcd at 19839;  47 U.S.C. s 159(a)(1).
    PanAmSat concedes that such changes may have "argu-
    ably" increased the Commission's oversight responsibilities,
    but says that the increased costs to the FCC have not been
    enough to justify the fee changes, and that the fees from the
    common carriers suffice to cover costs.  Another theme from
    PanAmSat is that deregulation (which has admittedly oc-
    curred) does not logically entail an increase in regulatory
    costs for the Commission.  The Commission's response is that
    deregulation has indeed entailed greater regulatory costs.
    This response, that deregulation has made the Commission
    busier than ever, might at first glance seem worthy of Sir
    Humphrey Appleby, hero of the comedy "Yes Minister":
    "Naturally, as an experienced civil servant, a proposal to
    reduce and simplify the administration of government con-
    jured up in Humphrey's mind a picture of a large intake of
    new staff specifically to deal with the reductions."  Jonathan
    Lynn and Antony Jay, eds., The Complete Yes Minister 113
    (1987).  But it is not difficult to imagine deregulatory scenar-
    ios that would in fact place greater burdens on the regulator.
    A deregulatory change that generates significant growth in
    both the number of providers and the array of satellite
    services they may offer (which are activities to be overseen by
    the agency), may decrease regulation per provider or per unit
    of activity and yet sharply increase total regulatory action.
    Given PanAmSat's grudging concession that the Commis-
    sion's oversight responsibilities have "arguably" increased
    and no evidence that the Commission has been deceitful about
    its burdens, we find that the Commission has adequately
    pointed to regulatory changes and to apparently contributory
    changes in law.  See Comsat, 
    114 F.3d at 227-28
    .
    * * *
    We grant the petition in part, remanding the case to the
    Commission for reconsideration of Comsat's exemption from
    s 9 space station fees.  We deny the petition with respect to
    the assessment of international circuit fees on PanAmSat.
    So ordered.