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E M A I L : D L O U I E @ M C F A L L

- L A W

. C O M WWW

. M C F A L L

- L A W

. C O M

November 5 , 2015

Mr. Anthony Foxx Via E

- File United States Secretary of Transportation 1200 New Jersey Ave, SE Washington, D.C., 20590

Re: Petition of Axis ROAV, LL for Exemption Pursuant to Section 333 of the Federal

Aviation Administration Modernization and Reform Act of 2012

Dear Mr. Secretary,

Pursuant to Section 333(c) of the Fede ral Aviation Administration Modernization and

Reform Act of 2012 (“Reform Act”) and 11 C.F.R. Part 11, Axis ROAV Services, LLC (“Axis”) hereby applies for an exemption from Federal Aviation Regulations (“FARs”) identified below,

and further discussed in Ap pendix A

, to allow commercial operation of small unmanned aerial vehicles (“small unmanned aircraft” or “ UAS ”) for inspection a nd survey o f production platforms and pipeline operations

, and commercial real estate transaction surveying

. These services include obtaining still photographs, real

- time video, and other data taken by onboard sensors

.

This exemption is sought pursuant to the protocols outlined in this petition for exemption,

the UAS manufacturer’s operations and/or instructions manual, and any other requirements established by the FAA pursuant to Section 333 of the Reform Act. Performing inspections with UAS technology is in the public interest for several reason s , which are further detailed below , and include: (1) significantly improving safety and reducing risk by alleviating human exposure to danger; (2) optimizing the s urveying and inspection process and saving operating costs ; (3) enhancing s urveying capabilities through ease of access to areas not previously or easily

accessible ; and ( 4 ) providing environment al monitoring during inspections and surveying , where

necessary

.

The batter y

- powered Falcon Hover weighs be tween 7 and 11 pounds (depending on payload) , maintains an operation range of 1.5 km (0.8099 NM), and has a flight time 60

- 90 minutes depending on operating conditions. 1 The Falcon Hover can fly in sustained winds of 20 knots and in wind gusts of up to 30 knots. The flight controller system compensates for win d and wind gusts, which is imperative for offshore inspections and operations. Its flight control system utilizes sonar,

1 Given the battery life, Petitioner submits that 14 C.F.R. § 91.151(a) is not implicated, and Axis operations guidelines prov ide that no mission shall last longer than 45 minutes.Mr. Anthony Foxx

United States Secretary of Transportation

November 5

, 2015 Page 2

barometric pressure, temperature, wind speed, and other sensors to ensure the most reliable control of systems in its class. The Falcon Hover is also GPS controlled and can maintain position when the operator is not explicitly in command. The current payload includes combined day/thermal IR live video payload on a two

- axis stabili zed gimbal, with a Sony A6000 24.1 MP mapping payload,

16.1 MP multi

- spectral mapping payload, GoPro two

- axis stabilized gimbal. The Falcon Hover can carry payloads of up to 2 pounds. Operations under the FAA exemptions will be maintained per the limitat ions and conditions contained in Appendix B hereto , and as may be modified by the FAA as required by Section 333. 2

Utilizing the Falcon Hover to perform i nspection and surveying services on production platforms, pipelines, and commercial real estate , as proposed herein, would provide significant public safety benefits over traditional inspection and surveying operations, because of the size, weight, and speed of the UAS, and also by removing the human risk factor

.

The use of UAS offer s numerous safety benefits. For example, using UAS for platform inspection alleviates the needs to use on

- site personnel to perform manual inspection of the platform . Manual inspections require a shutdown of the flare stack to dispel toxic fumes prior to any inspection. By utilizing UAS in spection services, flare stacks and other pipeline operations

w ill no longer need to be shut down for inspections to occur because UAS can be flown from a safe distance, using high

- powered camera and video technology to gather inspection data, thereby decreasing the risk to on

- site inspectors. This would also increas e the ability to routinely inspect facilities, such as flare stacks on production platforms because operations would not be affected.

The same holds true for pipeline inspections and surveying . Using UAS inspection service allows for inspections to occur in more remot e or difficult

- to

- reach areas, thereby promoting more routine inspection. U AS technology also allows companies to cover greater spans of area in shorter periods of time, which further allows for more routine inspections and surveying

, thereby ensuring

comp anies are maintaining up

- to

- date records.

In the context of commercial real estate surveying

, UAS technology c an enhance the survey

process . By way of example, UAS technology will allow the surveyor to have photographs and video at different ranges si mply by controlling the distance and elevation of the UAS. Large commercial properties can also be surveyed in a more effective manner due to the range and functionality of the proposed UAS. This w ill help streamline the surveying process, providing

cost

- savings to the consumer and minimizing the time required to surve y projects.

2 Axis has modeled its request off of Part 333 exemption grants as of the date of its application, but requests that the FAA treat Axis’ application as requesting the most lenient relief granted to similar applicants at the time of adjudication. Should the FAA modify any of its UAS operating conditions through exemptions or other exceptions after adjudicating Axis’ application, Axis request s blanket approval to operate its UASs in accordance with the more lenient operating conditions. Axis reserves the rig ht to supplement or amend this application.Mr. Anthony Foxx

United States Secretary of Transportation

November 5

, 2015 Page 3

Although the Falcon Hover can be operated by one person, Axi s will utilize two pilots as required by the FAA: a pilot

- in

- command (“PIC”) and a visual observer (“VO”). The PIC is

res ponsible for flying the UAS, monitoring its status and flight dynamics, while keeping the flight within the manufacturer’s specified operation limits to ensure safe operation of the vehicle. VOs will be responsible for monitoring the airspace for other ai rcraft and hazards, and advising the PIC before and during flights of all such observed risks. The PIC and VO will hold at least a private pilot certificate and third

- class medical certificate.

APPLICANT INFORMATIO N

The name of the applicant is:

Axis ROAV Services, LLC

The primary contact for this application, with a copy to me at the address above, is:

Mr. Paul Byington Managing Member 20328 Timber Ridge Court Magnolia, Texas 77355 Phone: (832) 487

- 7291

Email: pbyington@sbcglobal.net

By separate cover letter, Axis is confidentially submitting its proprietary Systems Operations M anual to be considered with th is exemption request.

EXEMPTIONS REQUESTED

Axis requests exemptions from the following regulations:

 14 C.F.R. Part 21

 14 C.F.R. Part 27

 14 C.F.R. 61.113(a) and (b)

 14 C.F.R. § 91.7(a)

 14 C.F.R. § 91.119

 14 C.F.R. § 91.121

 14 C.F.R. §§ 91.9, 45.23(b), and 45.27(a)

 14 C.F.R. § 91.203

 14 C.F.R. §§ 91.405(a), 91.407(a)(1), 91.409(a)(2); 91.417(a) and (b)Mr. Anthony Foxx

United States Secretary of Transportation

November 5

, 2015 Page 4

AIRWORTHINESS OF UAS

The Falcon hover was designed by CLMax Engineering, LLC, a small, veteran

- owned business, founded in 2007 by an honorably discharged U.S. Air force Officer with an engineering education (B.S. Mechanical Engineering; M.S. Aero Engineering). From 2007

- 2011, CLMax Engineering focused primarily on defense

- related UA S technologies for customers including the Air Force Research Laboratory, Air For Institute of Technology, API Defense, Coastal Defense, and Lockheed Martin Missile and Fire Control, amongst others. Since 2011, CLMax Engineering shifted its focus to publi c safety, civil, and foreign UAS markets, developing the Falcon Unmanned

Aircraft. Falcon Unmanned Aircraft have since received two FAA Certificate of Authorizations (COAs), including a fixed

- wing, county

- wide, jurisdictional public safety COA covering al l 3,300 square miles of the Mesa County Sheriff’s Office jurisdiction in Grand Junction, Colorado. Falcon Unmanned was also selected from a field office of over 50 proposals to be the provider to the World Wildlife Fund Wildlife Crimes Technology Project. Further details regarding the Falcon

Hover are included in Appendix C . A copy of the Falcon Hover’s operator’s manual is available

upon request.

OPERATING CONDITIONS

Axis requests an exemption subject to the conditions listed in Appendix B , which are

sub stantially similar to the operating conditions required for the FAA’s previous grants of exemption under Section 333.

In accordance with the conditions approved in previous exemption grants, Axis is requesting authority to operate the Falcon Hover within v isual line of sight and below 400 feet AGL except as provided by FAA Air Traffic Control via COA. Flights will be operated at a lateral

distance of at least 2 00 feet from any inhabited structure, buildings, vehicles, vessels, or people

not associated with operation or who have not signed a waiver in advanced of the operation. These operating conditions, along with those listed in Appendix B provide an equivalent level of safety

as set forth below.

Operations will be conducted in airspace that is: (1) limited; (2) predetermined; (3) controlled as to access; and that (4) provides an increased level of safety beyond that existing when fixed or rotor wing aircraft are used to accomplish the same purpose. Axis’ UAS are able to operate at a low speed with t he capability to hover, and move in the vertical and horizontal plane

.

The Falcon Hover can be operated in both semi and fully autonomous flight modes. Creating pre

- planned flight paths to fly in autonomous mode as simple as clicking on the map to

create a pre

- planned flight path. In semi

- autonomous mode, the operator clicks on the map and the Falcon automatically flies to the point on the map where the operator is pointing. Pre

- mission waypoints, landing zone points, and flight area dimensions can all b e entered during preflight,Mr. Anthony Foxx

United States Secretary of Transportation

November 5

, 2015 Page 5

ensuring the Falcon operates only within specified parameters. The Falcon Hover can be operated entirely by a touch

- screen, map based interface

. This means t he operator only needs to command

the system where to go, and the system does all the flying for the operator. Maps can be saved

and flight plans can be made or recalled with no internet connection required.

The Falcon Hover includes many advanced safety features that make the Falcon the safest

choice for both urban and non

- urban environments. Built

- in intelligent fault handling allows the

Falcon to detect a system fault while in the air, and to automatically fly back to its take

- off

location and land. Faults that can be detected include: loss of communication RFP: UAS for “ at height ” inspection to the command station; exceeding pre

- set wind thresholds exceeded; and low battery levels

. In addition, the operator can create no fly zones or maximum flight ranges and

altitudes so the system cannot enter areas deemed unsafe or unnecessary to fly over. Before every take

- off automated flight checks ensure the system is flight ready before it takes off.

OPERATING REQUIREMEN TS

As a condition to the grant of exemptions, Axis will require that the PIC hold a private pilot

certificate and valid third

- class medical certificate. For each operation, a PIC will be designated, who will be directly responsible for the operation of the U AS and the safety of the operation. It will be the responsibility of the PIC to ensure the operation complies with the UAS’ s specified operational limits, applicable regulations and/or ensures professional “best practice” to all applicable regulations. Th e VO will be responsible to visually maintain contact with the UAS , and scan the airspace for other aircraft and hazards. The VO will maintain communications between the PIC, the platform, and all other personnel in the flight space. The VO will also be on standby to assume control of the UAS should the PIC become incapacitated. Axi s currently maintains two operators, who shall serve as PIC and VO as each operation dictates.

Operator Profiles

Terrence “Terry” Rogers

, Axis ROAV Chief Pilot, FAA fixed

- wing single, high performance, and complex rating, License #3338793; Experimental Repairman License #3739272

Total Flight 151 hours

Total PIC 116 hours

FAA Rotocraft 4.5 hours

FAA Multi

-

Engine 9.2 hours

Instructor 39.4 hoursMr. Anthony Foxx

United States Secretary of Transportation

November 5

, 2015 Page 6

Kevin J. Dolan

, Axis ROAV Pilot, FAA fixed

- wing single, high performance and complex rating. CFII

#3412643.

Total PIC 4000+ hours

FAA Rotocraft 4 .5 hours

FAA Multi

-

Engine 9 .2 hours

Each operator will hold appropriate maintenance certification for the system provided by

the UAS manufacturer.

PUBLIC INTEREST

Axis’ proposed inspection and s urveying operations utilizing UASs in lieu of manned inspections and surveying are in the public interest because a net safety benefit will be achieved in the spirit of Section 333(c) of the Reform Act. Approval of this exemption will also benefit the publi c interest by allowing better, safer, and more cost effic ient inspection and su r veying of platform and pipeline operations, and commercial real estate.

Inspection operations on platform and pipeline operations are traditionally conducted in person. This presents several setbacks. In the case of traditional platform inspections, the flare stack must be shut down prior to inspection, and then the system must be flushed to ensure that noxious and toxic gasses are no longer present before personnel being inspection. This requires that operations be shut down, and subjects inspectors to potentially hazardous situations. Utilizing UAS technology to perform inspection services recognizes a benefit that is at least two

- fold. F irst, platform operations no longer need to be shut down, thereby incre asing operational efficiency and minimizing downtime. Second, and more importantly, inspectors no longer need to be onsite and subjected to potentially hazardous substances. Instead, the UAS can maintain safe distances from the platform, while using its high

- powered camera and video technology to gather data from the platform to perform the inspection

. Third , UAS can access areas traditionally inaccessible by on

site personnel ( e.g. , the underside of the platform) to provide even more information in the inspection process . In sum, risk to people and infrastructure on the ground is minimized versus traditional inspection methods

.

In the case of pipeline inspection, the public interest is benefited by utilizing safe flight operations for inspection , while removing the human risk . Inspection operations are further enhanced by utilizing UAS which can be used to reach rural areas or precarious terrain, allowing for the inspection team to focus on the task at hand.

In the case of commercial real estateMr. Anthony Foxx

United States Secretary of Transportation

November 5

, 2015 Page 7

No national security issue raised by the gran t of this requested exemption due to the Falcon

Hover’s small size and load

- carrying capacity, as well as its operational limitations and absence

of flammable fuel.

The grant of the application is in the public interest based on the clear direction in Sect ion 333 and 49 U.S.C. § 44701(f) , the equivalent and enhanced level of safety of the proposed operations, the significant public benefit, and cost savings to be realized as a result of the use of UAS for aerial inspections. The FAA has already granted exe mptions for UAS used to conduct similar inspection operations. 3

PRIVACY CONCERNS

Axis’ proposed operations will take place over property with the property owner’s prior consent and knowledge.

FEDERAL REGISTER SUM MARY

Pursuant to 14 C.F.R. § 11.81(f), the f ollowing summary is provided for publication in the Federal Register, should the FAA determine that publication is needed:

Docket No. : No. FAA

- 2015

-

_________ Petitioner: Axis ROAV Services, L.L.C. Section of 14 C.F.R.: Part 21, Part 27, § 61.113(a) and (b)

, § 91.7(a)

, § 91.119 , § 9 1.121

, § 9 1.9, § 45.23(b), and 45.27(a), § 91.203, § 91.405(a), § 91.407(a)(1), § 91.409(a)(2), and § 91.417(a) and (b). Description of Relief Sought: Axis is s eeking an exemption to conduct platform and pipeline inspections using small unmanned aircraft (55 pounds or less)

.

Thank you for your attention to this matter. Should you have any questions or require further information, please do not hesitate to contact me.

Very truly yours,

David L. Louie

3 E.g. , Exemption Nos. 11156, 11251, 11593, 1112B.Mr. Anthony Foxx

United States Secretary of Transportation

November 5

, 2015 Page 8

DLL

cc: Paul Byington, Axis ROAV Services, L.L.C. Darin Dooley, Axis ROAV Services, L.L.C.APPENDIX A

EXEMPTION REQUEST AN D EQUIVALENT LEVEL O F

SAFETY SHOWINGS UNDER APPLI CABLE RULES SUBJECT TO EXEMPTION 4

Axis requests an exemption from the following regulations, as well as any additional regulations that may technically apply to the operation of the Falcon Hover UAS:

A. 14 C.F.R. P ART 21, S UBPART H: A IRWORTHINESS C ERTIFICATES

Part 21, Subpart H, entitled Airworthiness Certificates, establishes the procedural requirements for the issuance of airworthiness certificates as required by 91.203(a)(1). Given the size and weight of the Falcon Hover, the ope rating conditions, design safety features , and proposed conditions and limitations, it is unnecessary to go through the certificate of airworthiness process

under Part 21

, Subpart H to achieve or exceed current safety levels. Such an exemption meets the

r equirements of an equivalent level of safety under Part 11 and Section 333. Section 333 and 49 U.S.C. § 44701(f) both authorize the FAA to exempt aircraft from the requirement for an airworthiness certificate, upon consideration of the size, weight, speed , operational capability, and proximity to airports and populated areas of the UAS involved.

In this case, an analysis of the criteria demonstrates that the UAS operated without an airworthiness certificate, under these conditions proposed herein, will be at least as safe, or safer, than a conventional aircraft (fixed wing or roto r craft) with an airworthiness certificate. The Falcon Hover weighs up to 11 pounds fully loaded. It will not carry a pilot, passenger, or flammable fuel. The Falcon Hover operat es exclusively within a controlled area pre

- determined and in compliance with conditions set forth herein. Unlike other civil aircraft, operations under this exemption will be tightly controlled and monitored by the PIC and VO, pursuant to the conditions set forth in Appendix B , the operator’s manual, and other applicable public safety requirements, if any. The FAA will have advance notice of all operations through the filing of NOTAMs. The lack of

flammable fuel and the fact that the aircraft is carried to the flight location and not flown there all establish the equivalent level of safety. The UAS provides at least an equivalent level of safety to that of such operations being conducted with conventional aircraft that would be larger in magnitude and w ould be carrying passengers, cargo, and flammable fuel.

B. 14 C.F.R. P ART 27: A IRWORTHINESS S TANDARDS

Part 27 sets forth the procedural requirements for airworthiness certification of normal category rotorcraft. To the extent Axis’ UAS would otherwise requir e certification under Part 27, Axis seeks an exemption from Part 27’s airworthiness standards for the same reasons identified in the exemption request from 14 C.F.R. Part 21, Subpart H.

C. 14 C.F.R. §§ 61.113( A ) AND ( B ): C OMMERCIAL P ILOT P RIVILEGES

Sections 6 1.113(a) and (b) limit private pilots to non

- commercial operations. Unlike conventional aircraft that includes a pilot, passengers, and cargo, the Falcon Hover is remotely

4 Based on the area of operations (i.e., more than 12 nm off the coast of the United States), 14 C.F.R. §§ 91.103

– 147 do not apply.Mr. Anthony Fox x

United States Secretary of Transportation

November 5 , 2015 Page 10

controlled with no passengers or property of others on board. The area of operatio n is controlled and restricted, and all flights are planned and coordinated in advance. In conjunction with the required training of the PIC and VO, the level of safety utilized by Axis’ operations will exceed those provided by a single individual holding a commercial pilot certificate operating a conventional aircraft. The proposed operations will achieve at least an equivalent level of safety.

D. 14 C.F.R. § 91.7( A ): C IVIL A IRCRAFT A IRWORTHINESS

Section 91.7(A) prohibits an individual from operating a ci vil aircraft unless it is in an airworthy condition. No FAA standards exist for determining an aircraft’s airworthiness when an airworthiness certificate is not issued. As the FAA has done with previous exemption grants, 5
airworthiness will be ensured and an equivalent level of safety will be achieved by complying following the Falcon Hover’s maintenance guidelines and utilizing safety check lists prior to each flight.

E. 14 C.F.R. § 91.119 : M INIMUM S AFE A LTITUDES

Section 9 1.119 establishes minimum safe altitudes for operation of civil aircraft. Specifically, Section 91.119(c) limits aircraft flying over areas other than congested areas to an altitude of 500 feet above the surface, except over open water or sparsely populat ed areas. In those cases, the aircraft may not be operated closer than 500 feet to any person, vessel, vehicle, or structure. Section 91.119(d) allows for a helicopter to operate at less than those minimum altitudes when it can be operated “without hazar d to persons or property on the surface,” provided that “each person operating the helicopter complies with any routes or altitudes specifically prescribed by helicopters by the FAA.”

To conduct operations, the UAS will operate at a lateral distance of a t least 2 00 feet from inhabited structures, buildings, vehicles, vessels, and people not associated with the operation. An equivalent level of safety will be achieved by the size, weight, and speed of the UAS, as well as the location of operation. Operat ions will occur in restricted and protected areas, where buildings and people will not be exposed to operations without pre

- obtained consent. Advanced notice will provide property owners and participants with awareness of the planned flight operations.

F. 14 C.F.R. § 91. 121 : A LTIMETER S ETTINGS

Section 91.121 requires a person operating an aircraft to maintain cruising altitude or flight level by reference to an altimeter that is set to the elevation of the departure airport or ground elevation along the route of the flight . This regulation should not apply. The altimeter exists to be read by the onboard pilot. Neither the pilot nor altimeter are on board the UAS. Operations will not be conducted near airport, so no local altimeter setting is available . Operations are to be

5 E.g. , Exemption Nos. 1115 6, 11158, 11159.Mr. Anthony Fox x

United States Secretary of Transportation

November 5 , 2015 Page 11

conducted within visual range of the PIC. The PIC will be aware of the height of the UAS above ground primarily to keep from venturing into airspace use by manned aircraft. The information is

sent to the PIC via the Falcon Hover o perating platform. This system satisfies the intent of the regulation and provides an equivalent level of safety.

G. 14 C.F.R. § 91.9( B ) (2) : C IVIL A IRCRAFT M ANUAL IN THE A IRCRAFT

In pertinent part, Section 91.9(b)(2) states:

(b) No person may operate a U.S.

- registered civil aircraft

–

. . .

(2) For which an Airplane or Rotorcraft Flight Manual is not required by § 21.5 of this chapter, unless there is available in the aircraft a current approved airplane or Rotorcraft Flight Manual, approved manual material, markings and placards, or any

combination thereof.

Due to the UAS physical dimensions, configuration, and load capacity, the UAS has no ability to carry such a manual on the aircraft, not only because there is no pilot on board, but

because there is no ca pacity for such an item on the aircraft. An equivalent level of safety can be obtained by maintaining the Falcon Hover flight manual at the Ground Control Station where the

PIC will have immediate access.

H. 14 C.F.R. § 91.9( C ); 45.23( B ) AND 45.27( A ): C IVI L A IRCRAFT A IRWORTHINESS

Sections 91.9(c), 45.23(b), and 45.27(a) relate to marking and identification requirements.

14 C.F.R. § 91.9(c), Civil Aircraft Flight Manual, Marking and Placard Requirements,

states:

No person may operate a U.S.

- registered civil aircraft unless that aircraft is identified in accordance with Part 45 of this chapter.

14 C.F.R. § 45.23(b), Markings of the Aircraft, states:

When marks include only the Roman capital letter “N” and the registration number is displayed on limited, restricted, or light

- sporty category aircraft or experimental or provisionally certificated aircraft, the operator must also display on that aircraft near each entrance to the cabin, cockpit, or pilot station, in letters not less than 2 inches nor more than 6 inches high, the words “limited,” “restricted,” “light

- sport,” “experimental,” or “provisional,” as applicable.Mr. Anthony Fox x

United States Secretary of Transportation

November 5 , 2015 Page 12

14 C.F.R. § 45.27(a), Rotorcraft, states:

Each operator of a rotorcraft must display on that rotorcraft horizontally on both surfaces of the cabin, fuselage, boom, or tail the marks required by § 45.23.

Exemption from 14 C.F.R. § 45.23(b) is warranted because the UAS has no entrance to the cabin, cockpit, or pilot station on which the word “Experimental” can be placed. Furthermore, given the UAS’s size, two

- inch lettering would be impossible. The word “Experimental” will be placed on the fuselage in compliance with 14 C.F.R. § 45.29(f), t hereby providing an equivalent level of safety.

I. 14 C.F.R. § 91. 203( A ) AND ( B ): C ARRYING C IVIL A IRCRAFT C ERTIFICATION AND
R EGISTRATION

Germane to this application , the Section 14 C.F.R. § 91.203 states:

(a) Except as provided in § 91.715, no person may operate a civil aircraft unless it has within it the following:

(1) An appropriate and current airworthiness certificate . . .

(b) No person may operate a civil aircraft unless the airworthiness certificate required by paragraph (a) of this section or a special f light authorized issued under § 91.715 is displayed at the cabin or cockpit entrance so that it is legible to passengers or crew.

In addition to the fact that Axis is seeking an exemption from the airworthiness certificate requirements, an exemption to thi s regulation is necessary because: (1) the UAS configuration, load capacity, and size does not allow it to carry certification and registration documents; (2) the UAS does not have a cabin or cockpit entrance in which documents could be displayed; and (3) there are no passengers or crew for whom the certificates need to be displayed.

To the extent these regulations are applicable to the proposed UAS operations, an equivalent level of safety will be achieved by keeping these documents with ground control at the point where the PIC will have immediate access to them. Moreover, the FAA has already issued numerous exemptions to this regulation. 6

J. 14 C.F.R. §§ 91.405( A ), 91.407( A )(1), 91.409( A )(2); 91.417( A ) AND ( B ): M AINTENANCE
I NSPECTIONS

Section 91.405(a) requ ires that an aircraft operator or owner “shall have that aircraft

6 E.g. , Exemption Nos. 9565, 9665, 9789, 9797, 10700.Mr. Anthony Fox x

United States Secretary of Transportation

November 5 , 2015 Page 13

inspected as prescribed in subpart E of this part and shall between require inspections, except as provided in paragraph (c) of this section, have discrepancies repaired as prescribed in par t 43 of this chapter.” Section 91.407 similarly makes reference to requirements in Part 43, Section 91.409(a)(2) , which require an annual inspection for the issuance of an airworthiness certificate. Section 91.417(a) requires the owner or operator to kee p records showing certain maintenance work has been accomplished by certificated mechanics, under Part 43, or licensed pilots and records of approval of the aircraft for return to service.

Axis pre

- flight checks will be performed by a qualified person prio r to each flight and at predefined intervals as part of the maintenance schedule. The pre

- flight checklist includes:

1. Visual inspection of the airframe;

2. Visual inspection of the propellers;

3. Verify battery power and charge;

4. Verify GPS acquisition;

5. Plan and upload mission;

6. Video and payload check;

7. Controls check;

8. Gyro/control surfaces check;

9. Throttle check;

10. Check pitot tube readings;

11. Check sensors; and

12. Verify failsafes are set correctly.

An equivalent level of safety will be achieved because the UAS will carry no external payload, will operate only in restricted predetermined area, and is not a complex mechanical device. In addition, the PIC or operator will ensure that the UAS is in work ing order prior to initiating flight, perform required maintenance, and maintain a log of any maintenance that is performed. Further, the PIC or operator are the persons most familiar with the aircraft and best

suited to maintain the aircraft in an airwor thy condition and to ensure an equivalent level of safety. Moreover, the UAS’s maintenance guidelines provide an equivalent level of safety to the maintenance requirements of Part 91.Mr. Anthony Fox x

United States Secretary of Transportation

November 5 , 2015 Page 14

APPENDIX B

AXIS OPERATING LIMIT ATIONS

1. Operations authorized by the grant of exemption are limited to the Falcon Hover which weighs 11 pounds.

2. The UAS will not be flown at a ground speed exceeding 60 knots.

3. The UAS will not be operated at an altitude of more than 400 feet except as may be provi ded by FAA Air Traffic Control (“ATC”) via COA.

4. The UAS will be operated within the PIC’s visual line of sight at all times. This requires the PIC to be able to use human vision unaided by any device other than corrective lenses, as specified on the PIC’s FAA

- issued airman medical certificate.

5. All operations must us e a VO. The VO and PIC must be able to communicate verbally at all times. The PIC must be designated prior to any flight. The PIC shall ensure that the VO can perform the functions prescribed in the Axis Systems Operations Manual

.

6. The System Operations Manual and this grant of exemption shall be accessible during UAS operations and made available to the Administrator upon request. If a conflict exists

between the conditions and limitations i n the exemption and the procedures outlined in the operating documents, the conditions and limitations in the exemption shall take precedence and must be followed. Otherwise, Axis shall follow the procedures as outlined it its operating documents. Axis m ay update or revise its operating documents. It is Axis’ responsibility to track such revisions and present updated and revised documents to the Administrator upon request. Axis shall also present updated and revised documents if its petitions for extens ion or amendment to this grant of exemption.

7. Prior to each flight, the PIC shall inspect the UAS to ensure that it is in a condition for safe flight. The PIC s hall not operate the aircraft if the inspection reveals a condition that affects the safe operat ion of the UAS until the necessary maintenance has been performed and the

UAS is determined to be in safe

- flight condition. The Ground Control Station, if utilized, shall be included in the preflight inspection. All maintenance and alternations shall be properly documented in the aircraft records.

8. Any UAS that has undergone maintenance or alterations that affect the UAS’s operation or flight characteristics ( e.g. , replacement of a flight critical component) must undergo a functional test flight in accor dance with the Systems Operations Manual . The PIC who conducts the functional test flight must make an entry in the aircraft records of the flight.Mr. Anthony Fox x

United States Secretary of Transportation

November 5 , 2015 Page 15

The requirements and procedures for a functional test flight and aircraft record entry shall

be included i n the Systems Operations Manual.

9. The pre

- flight inspection shall account for all discrepancies ( e.g. , inoperable components, items, or equipment, not already covered in the relevant sections of the Systems Operations Manual)

.

10. Axis shall follow all of the F alcon Unmanned Aircraft’s aircraft/component, maintenance, overhaul, replacement, inspection, and life

- limit requirements and specifications.

11. Axis shall carry out its maintenance, inspections, and record keeping requirements in

accordance with the Systems Operations Manual . Maintenance, inspection, alterations, and status of replacement/overhaul component parts shall be noted in the aircraft records, including total time in service, description of work accomplished, and the signature of the person authoriz ed to return the UAS to service.

12. Each UAS operated under this exemption shall comply with all manufacturer Safety

Bulletins.

13. The PIC shall carry at least a private pilot certificate and at least a current third

- class

medical certificate. The PIC shall als o meet the flight review requirements specified in 14 C.F.R. § 61.56 in an aircraft in which the PIC is rated on his or her pilot certificate.

14. Axis shall not permit any PIC to operate unless the PIC meets the operator’s qualification

criteria and demonstra tes the ability to safely operate the UAS in a manner consistent with how the UAS will be operated under this exemption, including evasive and emergency maneuvers and maintaining appropriate distances from persons, vessels, vehicles, and

structures. 7 PIC qualification flight hours and currency must be logged in a manner consistent with 14 C.F.R. § 61.51(b). The PIC must ensure that the VO is trained appropriately in order to fulfill his or her duties. A record of training and qualification

must be docume nted and made available upon request by the Administrator. Flights for the purposes of training the operator’s PICs and VOs ( e.g. , training, proficiency, and experience

- building), are permitted under the terms of this exemption. During such flights,

all nonessential personnel for flight operations are considered nonparticipants, and the PIC must operate the UAS with appropriate distance from nonparticipants in accordance with these operating conditions.

15. Operations shall not be conducted during night, as d efined in 14 C.F.R. § 1.1. All operations shall be conducted under visual meteorological conditions (“VMC”). No

7 Prior documented flight experience obtained in compliance with applicable regulations may satisfy this requirement.Mr. Anthony Fox x

United States Secretary of Transportation

November 5 , 2015 Page 16

special visual flight rules are authorized. A weather report of the area of operations shall be obtained 60 minutes prior to each inspection.

16. The UAS shall not be operated less than 500 feet below or less than 2,000 feet horizontally from a cloud or when visibility is less than 3 statute miles from the PIC.

17. If the UAS loses communications or loses its GPS signal, the UAS must return to a pre

de termined location within the security perimeter and land or be recovered in accordance

with the Systems Operations Manual.

18. The PIC shall abort the flight in the event of unpredicted obstacles or emergencies in

accordance with the Systems Operations Manual.

19. The UAS’s operations shall be completed within 45 minutes flight time.

20. All aircraft operated pursuant to the requested exemption must be identified by serial number, registered in accordance with 14 C.F.R. Part 47, and have identification (N

Number) marki ngs in accordance with 14 C.F.R. Part 45, Subpart C. Markings shall be as large as practicable.

21. The radio frequency spectrum used for operation and control of the UAS shall comply with Federal Communication (FCC) or other applicable government oversight a gency requirements.

22. The documents required under 14 C.F.R. §§ 91.9 and 91.203 must be available to the PIC at the Ground Control Station of the UAS any time the aircraft is operating. These documents shall be made available to the Administrator upon reque st.

23. The UAS shall remain clear and yield the right of way to all other manned operations and

activities at all times.

24. Flight operations shall be conducted at least 2 00 feet from all nonparticipating persons, vessels, vehicles, structures, and public access roads unless:

a. The nonparticipating persons are authorized personnel who have received Axis’ safety training, and are wearing personal protective gear (“Authorized Personnel”);

b. For nonparticipants who are not Authorized Personnel, barriers or structures ar e present to sufficient protect nonparticipants from the UAS and/or debris in the event of an accident. The operator shall ensure that nonparticipating persons who are not Authorized Personnel remain under such protection. If a situation arises whereMr. Anthony Fox x

United States Secretary of Transportation

November 5 , 2015 Page 17

non participating persons who are not Authorized Personnel leave such protection

and are within 500 feet of the UAS, flight operations shall cease immediately; or

c. The aircraft is operated near vessels, vehicles, or structures where the

owner/controller of such vessels, vehicles, or structures has granted permission and the PIC has made a safety assessment of the risk of operating closer to those object and determined that it does not present an undue hazard.

25. Operations closer than 500 feet to the PIC, VO, or ot her essential persons are permitted if those operations do not present an undue hazard to those persons, as determined by the

PIC.

26. Prior to any flight, the PIC and/or VO shall perform an on location site survey to determine:

a. the area of operations;

b. locat ions of hazards;

c. location of launch/recovery;

d. location of forward observers, if any ; and

e. communications/frequency deconfliction

27. Forty

- eight hours prior to inspection of any platform, the operations team shall issue a NOTAMS for the inspection, describing t he location and approximate times of the operations.

28. To the extent operations occur in the Gulf of Mexico at remotely located offshore platforms, air traffic is expected to be minimal, and comprised mostly of helicopter traffic coming to and from the production platform. These helicopter flights are scheduled and in

constant commu nication with the platform air traffic officer. Inspections will occur in “dead” periods between scheduled arrivals and departures. Communications between Axis personnel and the air officer shall be continuous throughout each inspection through

aviation band radios. In other instances, Axis operations will occur at or near 500 feet above ground level and away from airports so as to avoid FAA minimum flight altitudes

of civilian aircraft.

29. Prior to flight, the PIC shall pre

- program an emergency return

- to

- home waypoint. In the event notice is given by an observer or air traffic officer, the system will at all times be able to return to the LZ within a ten minute period.

30. The UAS shall maintain a minimum of 200 feet laterally from any platform or structure.

31. Any incident, accident, or flight operation that transgresses the lateral or vertical boundaries of the operation area as defined by the applicable COA shall be reported to theMr. Anthony Fox x

United States Secretary of Transportation

November 5 , 2015 Page 18

FAA’s UAS Integration Office (AFS

- 80) within 24 hours. Accidents shall be repo rted to the National Transportation Safety Board (NTSB) per instructions contained on the NTSB

website.Mr. Anthony Fox x

United States Secretary of Transportation

November 5 , 2015 Page 19

APPENDIX C

UAS SYSTEM DESCRIPTI ON

Axis Overview : Axis is a Texas based corporation with its headquarters in Magnolia, Texas. Axis is a company form ed to conduct flare stack inspections using UAV technology to increase savings and cost expenditures for production platforms and pipeline operations.

UAS Operating Overview : The Falcon Hover is a tactical multi

- copter aircraft and an FAA

COA approved sys tem, constructed with aircraft

- grade composites, materials, electronics, and wiring

. The Falcon Hover Operating Handbook is available upon request.

Parameter Characteristic

Measurements 48 in. diameter; 8 foot wingspan; 4.5 foot length Engines Four (4) electric brushless DC Motors

Fuel Lithium polymer batteries, with self

contained, high duration “SMART” intelligence on board, including cycle charge times, locations, GPS antenna, chemical management, and real time data feeds Weight, with payload 7 poun ds (11 pound max.) Wireless Range 3 miles

Maximum Altitude 1,500 feet Cruise Speed (Best Endurance) 27 knots Dash Speed 45 knots Operational Range 1.5 km (0.8099 NM)

Max wind 30 knots sustained; 40 knots gusts Precipitation Light rain or moisture Flight Duration/ Endurance 60 + minutes, 90 minute s maximum (operations / mission dependent)

Climb Rate 16 fps

Launch Autonomous Vertical Lift Landing Autonomous Vertical Lift Flight Control Autonomous or Manual Visibility 1 statute mile Exterior Lighting Navigation lightingMr. Anthony Fox x

United States Secretary of Transportation

November 5 , 2015 Page 20

Command and Control Frequency 8 900 MHz, 2.4 GHz,

Video Bands 5.8GHz

Command and Control Systems :

The UAS can be controlled entirely through a touch

- screen, map based interface, requiring the operator to only command the system where to go, while the system performs all of the flying for the operator. The Falcon Hover Ground Control station allows the operator simultaneous control over aircraft and payloads. The touchscreen allows for quick navigation and data entry while the displace screen provides all essential flight data to the operator. Telemetry data is

transmitted to the command station at le ast once per second.

The Falcon Hover has a vertical lift autonomous launch and recovery. A Landing Zone (“LZ”) is designated by the operators and identified in the GCS software. For launch procedures, the UAS will takeoff and hover 3 meters directly abo ve the LZ and hold until further operator instruction is given. The aircraft will automatically adjust for wind during this period.

The flight control system is GPS controlled and can maintain hold position when the operator is not explicitly in command. The flight controller system uses not only GPS positioning, but additional sensors including sonar, barometric pressure, temperature, wind speed, and others to ensure the most reliable control of any system in its class.

Maps can be saved and flight plans can be made or recalled with not internet connection required. Specific maps can be downloaded to the display screen and are overlaid with GPS position data. Waypoints can be created before and during flight operation to create specific locations and seq uences for the aircraft.

The Falcon Hover can be operated in both semi and fully autonomous flight modes. Creating pre

- planned flight paths to fly in autonomous mode is as simple as clicking on the map
to create a pre

- planned flight path. In semi

- auton omous mode, the operator clicks on the map and the Falcon automatically flies to the point on the map where the operator is pointing. Pre

- mission waypoints, landing zone points, and flight area dimensions canal be entered during preflight, ensuring the Fa lcon Hover operates only within specified parameters.

Built

- in intelligent fault handling allows the Falcon to detect a system fault while in the air, and to automatically fly back to its take

- off location and land. Faults that can be detected

include: loss of communication RFP ; UAS for "at height" inspection to the command station; exceeding pre

- set wind thresholds exceeded; and low battery levels

. In addition, the operator can

create no fly zones or maximum flight ranges and altitudes so the system cannot enter areas

8 The communications links are encrypted through the manufacturer’s proprietary software.Mr. Anthony Fox x

United States Secretary of Transportation

November 5 , 2015 Page 21

deemed unsafe or unnecessary to fly over. And before every take

- off automated flight checks

ensure the system is flight ready before it takes off.

The Falcon Hover can fly in sustained winds of 20 knots and in wind gusts of up to 30 knots. The flight controller system compensates for wind and wind gusts that is imperative for offshore inspections and operations.

On

- Board Flight Instruments :

The Falcon Hover’s on

- board flight instruments include an Inertial Navigation System using a 3

- axis gyroscop, 3

- axis magnetometer, GPS receiver, and static pressure sensor, as well as a sonar sensor for precision AGL altitude measurement. The Falcon Hover also has on

- board guidance and navigation equipment which allows the UAS to operate autonomously, and does not require input from ground

- based equipment or operator to hover in place.

The Falcon Hover also has a flight termination link available to the op erator at the Ground Control Station, to prevent “fly away” or other potentially dangerous situations.

Emergency Procedures and System Failures :

The Falcon Hover has extensive failure detection and handling capabilities. All failures

are deeded to be eith er fatal or non

- fatal. Fatal failures result in Fatal Condition Response (“FCR”); non

- fatal failures result in a Non

- Fatal Condition Response (“NFCR”).

Should Falcon Hover’s on

- board flight instruments and sensors fail, a FCR or NFCR will occur depending on their severity. If the UAS becomes unstable due to sensor failure, it will stop all four motors and free fall to avoid a fly away condition.

The Falcon Hover maintains a low batter condition notification, which will alert the operator, who shall land t he aircraft as soon as possible.

Payload :

The Falcon Hover has a modular payload design and multiple payload/mission options. Payloads can be changed out between flights so on one flight the operator can use a thermal

infrared video camera and on the next flight the operator can conduct high

- resolution mapping/aerial photography. For this mission, the Falcon Hover will utilize

1. Combined Day/Thermal IR live video payload on two axis stabilized gimbal;

2. Sony A6000 24.1 MP mapping payload;Mr. Anthony Fox x

United States Secretary of Transportation

November 5 , 2015 Page 22

3. 16.1 MP Multi

- Spectr al Mapping Payload (Precisions Agriculture/NDVI); and

4. GoPro two axis stabilized gimbal.

Maintenance and Safety Issues :

The Falcon Hover is nearly maintenance free. It performs automatic pre

- flight checks, including checks for structural damage, and the failure of any check prevents takeoff. Checks which cannot be performed by the system will be performed by qualified personnel prior to each flight. The pre

- flight checklist includes:

1. Visual inspection of the airframe;

2. Visual inspection of the propellers ; 3. Verify battery power and charge;

4. Verify GPS acquisition;

5. Plan and upload mission;

6. Video and payload check;

7. Controls check;

8. Gyro/control surfaces check;

9. Throttle check;

10. Check pitot tube readings;

11. Check sensors; and

12. Verify failsafes are set correctly.

The UAS system also detects numerous conditions which make flying unsafe, such as reduced GPS accuracy, magnetic anomalies, low battery charge, battery cell imbalances, and temperature fluctuations. Automatic pre

- flight checks prevent the UAS from taking off if such conditions are presents; or, if the condition is detected during flight, the system will trigger a Fatal Conditioned Response.