# MA R ~ 8 aor o UNITE D STATE S O FAMERIC A ^^'^^^^^^ 0 QOCK l U.S . DEPARTMEN T O FTRANSPORTATIO N OFFIC E O FHEARING S - WASHINGTON , D.C .

I n th e matte r

of : THRESHOL D AI RCHARTER , INC . Responden t APPLICATIO N FO R ATTORNEY' S FEE S AN D COST S UNDE REQUA L ACCES S T O JUSTIC E AC T

— 1 ASSIGNE D T O - Th e Honorabl e RICHAR D C . GOODWI N J j COME S NO W th e Responden t THRESHOL D AI RCHARTER , INC. , e g Responden t

i n th e abov e entitle dmatter , fo r itsel f alone , an dpursuan t

t o 1 4 CF R§14.0 1 o f th e Rule s Implementin g th e Equal Acces s t o Justic e Ac t o f 198 0 submit s thi s applicatio n t o th e Administrativ e La w Judg e i n support o f it s applicatio n fo

r attorney' s fee s an dexpenses . STATEMEN T O FTH E CAS E O n January 27 , 200 9 th e FA A issue daNotic e o f Propose dCivi l Penalty . A t that tim e th e Responden t

di dno t hav e counse l an dth e principal s o f Responden t

hel dan informal conferenc e with FA A counsel . Th e partie s wer e unabl e t o resolv e th e matte r informall y a

t that tim e an dsubsequently , o n Apri l 16,2009 , aFinal Notic e o f Propose dCivi l Penalty was issue dassessin g th e Responden t th e su mo f

$ 15,675.0 0 for

allege dviolation s o f

th e Federa l Aviatio n Regulations . A s thi s applicatio n i s read , th e ALJ shoul db e apprise dtha t n o ne w fact s hav e com e t o th e attentio n o f

th e Agenc y whic h woul dhav e cause dthe mt o chang e thei r position . Rather , th e FAA , decide dt o dismis s th e charge s agains t th e Responden t

o n th e sam e se t

o f fact s with whic h i t

too k initia l action . In short , th e FA A kva s not substantiall y justifie di n initiatin g thi s legal actio n agains t th e Respondent/Applica|nt. , FACT S O FTH E CAS E Th e Responden t

Threshol dAi r

Charter , Inc . (hereinafte r

referre dt o a s "Threshold" ) i s aPart 13 5 Ai r Carrie r with it s principa l plac e o f busines s i n Chino , California . Amon g th e variou s aircraf t tha t i s operate db y Respotident i s N416CG , aGulfstream GA-1159 , alarg e corporat e je t commonl y know n a s aG-II (pAcinounced"G-2") . Thi s aircraf t Pag e 1 APPLICATIO N FO RATTORNEY' S FEE S uHfDE REAJAi s manufacture db y GulfstreamAerospac e Corporation . Threshold' s Operation s Specification s (hereinafte r "O p Specs") , whic h ar e require d t o b e approve db y th e FA A before the y ca n b e used , requir e tha t thi s aircraf

t b e maintaine d i n accordanc e wit

h th e manufacturer' s computerize dmaintenanc e program . In effec t thi s mean s tha t

th e manufacturer , no t

th e certificat e holde r

o r th e FAA , determine s ho w th e aircraf t shoul db e maintained . A cop y o f th e appropriat e sectio n o f Threshol dAi r

Charte r Inc.' s Operation s specificatio n i s attache dheret o a s Exhibi t "A " an dincorporate dherei n b y reference . Th e computerize dmaintenanc e programrequire da n inspectio n o f

aparticula

r portio n o f th e aircraf

t b y x-ray technology . Th e technica l terminolog y for th e inspectio n i s reference da s "Gi l CM P 539535-Fuselag e Statio n 58 0 ND T (Comscan ) Inspection" . Thi s inspectio n was du e o n Novembe r 30 , 2007 . Whe n th e inspectio n was due . Threshol dflew th e aircraf t t o Lo s Angele s Internationa l Airpor t

t o Landmar

k Aviatio n aPart

145 repai r

statio n t o hav e th e wor k performed . Unfortunately , whe n th e inspectio n began , th e X-ray machin e brok e an dth e wor k coul dnot

b e completed . A s aresul t

o f th e failure o f

th e equipment , Threshol dthroug h it s Part 14 5 Repai r Statio n (Aviatio n Maintenanc e Group ) contacte dth e manufacture r an drequeste da

n extensio n t o th e inspection . I f th e manufacture r

believe s tha t

th e reques t

wil l no t compromis e safety , th e manufacture r wil l issu e what

i s know n a s aLette r

o f N o Technica l Objectio n (NTO) . A s aresul t o f thi s request , alette r

wa s receive dfromGulfstrea mo n Novembe r

16 , 200 7 statin g that : "Thi s lette r

i s i n respons e t o you r

reques t t o exten dth e nex t

du e complianc e dat e fo r th e Chapte r

5 schedule dmaintenanc e chec k liste dbelow . Ou r

computerize d Maintenanc e Progra mrecord s indicat e thi s inspectio n Vchec k i s du e o n 11/30/07 . Yo

u hav e requeste dt o exten dcomplianc e o f th e followm g Maintenanc e Check s unti l 02/28/200 8 du e t o equipmen t repai r an dschedulin g cortcerns : Gi l CM P 53953 5 - Fuselag e Statio n 58 0 ND T (ComScdn ) Inspection . Base do n Gi l flee t

history , Gulfstrea mconclude s ma t th e requeste d(sic ) wil l hav e n o impac t o n th e safety o r

operationa l capabilitie s o f you r aircraft . Ther e i s th e possibilit y o f incurrin g additiona l maintenanc e cost s by delayin g th e maintenanc e chec k liste di n thi s request . Gulfstrea mha s n o technica l objectio n wit h you r re)guestfo r

th e Fuselag e Statio n Pag e 2 APPLICATIO N FO RATTORNEY' S FEE S UMDE REAJ A(FS ) 58 0 Bulkhea dND T (ComScan ) Inspection , CM P Cod e 539535 . However , final

authorizatio n o f

thi s deviatio n mus t

b e obtaine dthroug h you r loca l Airworthines s Authority. " A cop y o f th e subjec t

NT O lette r

i s attache dheret o a s Exhibi t "B " an dincorporate d herei n b y reference . Base dupo n prio r

NT O letters . Threshol dan dit s Part 14 5 repai r

statio n hav e alway s interprete dth e word s "loca l Airworthines s authority " a s referrin g t o th e Directo r o f Maintenanc e for

Threshol drathe r

tha n th e FAA . Ha dGulfstreammean t th e FAA , the y woul dhav e use dtha t

shor t phras e rathe r

tha n th e longer , no n specifi c description . I n fact . Threshol dha s ha danumbe r o f NT O letter s issue dt o the mb y th e manufacture r an dnon e o f the mhav e eve r

ha dFA A approva l eve n thoug h th e FAA ha s know n o f th e situations . N o approva l was eve r

obtaine db y Threshol dfromth e FA A t o operat e th e aircraf t durin g th e extensio n perio dno r

wer e th e FA A eve n notifie do f th e situation . Threshold , a s a n ai r carrie r believe dtha t

FA A approval wa s no t

necessary . A s aresul t

o f th e NT O letter . Threshol dkep t th e aircraf

t i n it s charte r

fleet an d operate dth e sam e durin g th e perio do f extensio n i n accordanc e with Part 13 5 o f th e Federa l Aviatio n Regulations . Th e X-ray equipmen t

wa s eventuall y repaire dan do n Februar y 28,2008 , acomsca n inspectio n was performe dfor N416C G an dn o defect s o f any typ e wer e detected . Th e logbook s wer e appropriatel y signe dof f A s par t o f norma l oversigh t

an drevie w o f

record s o f

Threshold , th e FA A discovere d th e NT O lette r

an dth e operatio n o f

th e aircraf

t betwee n Novembe r

30 , 200 7 an dFebruary 28 , 2008 . CONTENTION S O FTH E PARTIE S Th e FA A contend s that

Threshol dAi r

Charte r shoul dhav e sough t

prio r FA A approva l t o operat e th e aircraf t (N416CG ) afte

r i t receivec^ th e NT O fro mGulfstream . Th e FA A contends tha t

th e failur e t o obtai n thi s approva l constitute da n operatio n i n violatio n o f it s Operation s Specification s (FA R§119.5(1 ) an dFAR1§91.403(C) . Threshol dcontends , an di t raise dth e issu e at

th e informal conferenc e that : (1 ) It s maintenanc e programa s se t fort h i n th e Operation s Specification s whic h wer e approve db y th e FA A require s that | i t follo w th e manufacturer' s computerize dmaintenanc e program . (2 ) B y issuin g th e Lette r o f N o Technica l Objectilpn , th e manufacture r modifie d Pag e 3 APPLICATIO N FO RATTORNEY' S FEE S UNbE REAJ Ait s computerize dmaintenanc e progra mfor that specifi c aircraft . (3 ) Safet

y (accordin g t o th e manufacturer ) was no t compromise db y th e dela y i n conductin g th e inspectio n an dtha t determinatio n wa s mad e b y th e manufacturer . (4 ) Ther e ar e n o Federa l Aviatio n Regulations , Orders , Operatio n Specificatio n limitations . Advisory Circular s o r any publishe ddocumentatio n requirin g that FA A approva l b e obtaine dafte r receip t o f a n NT O letter . A s amatte r o f courtesy , i t

may b e don e bu t

ther e i s n o mandatory requirement . I f i t i s not amandatory requirement , i t canno t b e aviolation . Respondent/Applican t

contend s tha t

unde r our syste mo f laws , an dspecifi c referenc e i s mad e t o th e Federa l Aviatio n Regulations , i f somethin g i s no t

specificall y prohibited , the n i t i s permitted . ULTIMAT E RULIN G O FCAS E Th e FA A o n January 28 , 201 0 (erroneousl y date d2009 ) unilaterall y withdre w it s complain t i n thi s matter . Ther e wa s n o settlemen t o f th e cas e an dther e wer e n o ne w issue s o r fact s brough t

t o th e attentio n o f

th e FA A whic h cause dthe mt o withdraw . Thereafte r o n February 2,2010 , th e ALJ issue di s Orde r o f Dismissa l wit h Prejudice . WH Y FA A WA S NO T SUBSTANTIALL Y JUSTIFIE D

I N PURSUIN G THI S MATTE R Applican t i s th e Prevailin g Party i n thi s matter . Th e FA A was o r shoul dhav e bee n awar e prio r

t o it s issuanc e o f

th e Fina l Notic e o f

Propose dCivi l Penalty tha t ther e wer e n o regulation s tha t

covere dNT O letter s issue db y th e manufacture r o f th e aircraft . Th e FA A shoul dhav e know n tha t

th e action s o f

th e Respondent/Applicant , whil e the y may no t hav e bee n like db y th e loca l FSDO , di dnot constitut e aviolatio n o f

th e regulations . A s ageneral premise , wh o bette r tha n th e manufacturer , wh o ha s an approve d computerize dmaintenanc e program , ha s knowledg e regardin g whethe r arequire dinspectio n can b e extended ? I n thi s situation , th e certificate holde r idi dexactl y what

it s operation s specification s instructe di t t o d o - i t followe dth e direction s o f th e aircraf

t manufacturer . A s aresul t o f th e extensio n b y Gulfstream , th e inspection s wer e no t overdue . Therefore , ther e was n o violatio n o f

eithe r operation s specification s o r an appjrovedmaintenanc e progra ma s allege db y th e Agency . O n Marc h 26 , 2007 , th e Assistan t Chie f Counse l foJi

* Regulation , Offic e o f

Chie f Pag e 4 APPLICATIO N FO RATTORNEY' S FEE S UNtoE REAJ ACounsel , FAA , issue dawritte n opinio n o n th e questio n o f "Whe n amanufacture r

issue s aN o Technica l Objectio n lette r t o acustome r

regardin g a n ite mwhic h meet s th e definitio n o f

mino r repai r o r alteratio n pe r

th e FARs , i s i t

mandator y fo r

tha t custome r t o tak e tha t

NT O t o thei r

loca l FSD O fo r

approva l befor e returnin g th e aircraf t t o service? " Keepin g i n min dthat th e inspectio n whic h i s th e subjec t o f thi s litigatio n i s maintenanc e whic h doe s no t ris e t o th e leve l o f

arepai r o r alternation . However , th e basi c premis e i s th e same ; doe s i t nee dprio r

FA A approval ? What

define s thi s cas e an di s german e t o th e applicant' s contentio n that th e FA A wa s no t

substantiall y justifie di s th e response : "Procedure s fo r

handlin g N o Technica l Objectio n (NTO ) letter s ar e no t addresse di n th e regulations , [emphasi s added ] Individua l operator s shoul dwor k wit h thei r loca l flight Standard s Distric t

Offic e (FSDO ) o n issue s involvin g th e acceptabilit y o f usin g NTOs.... " What i s relevan t

t o th e instan t

situatio n i s that

FA A approva l i s discretionary throug h th e us e o f th e wor d"should " rathe r tha n th e word"musf . Thi s memorandu mwa s issue dprio r t o th e FA A issuin g it s Order . A cop y o f tha t legal opinio n i s attache dheret o a s Exhibi t "C " an dincorporate dherei n b y reference . Thi s matte r

was filedwithou t

any substantia l lega l justificatio n t o substantiat e tha t aviolatio n occurred . I t wa s allege db y th e FA A tha t th e Respondent/Applican t violate dtw o (2 ) FA A regulation s whe n i t

operate dth e aircraf

t durin g th e extensio n period. . Th e first allege dviolatio n [FA R§119.5(1) ] wa s an allegatio n tha t Threshol dAi r Charter , Inc . failin g t o operat e it s aircraf t i n accordanc e with it s operation s specifications. . Th e FA A kne w ftill wel l tha t th e Responden t

wa s followin g Gulfstream' s computerize d maintenanc e program . Th e NT O was part o f tha t program . Th e secon dallege dviolatio n involve s FA R§91.403© . Thi s i s aconvolute d regulatio n whic h basicall y require s that n o perso n shal l operat e an aircraf t unles s i t complie s with th e inspectio n interval s se t fort h i n accordanc e with it s operation s specification s o r a n inspectio n progra mapprove dunde r FA R§91.409(e) . Sectio n 91.409(e ) i n tur n obligate s aperso n operatin g aturboje t multi-engin e airplan e t o hav e aparticular inspectio n progra m approve db y th e Administrato r an damon g thos e designate dprogram s ar e " A curren t inspectio n progra mrecommende db y th e manufacturer. " [FAR§91.409(f)(3)] . Th e FA A kne w tha t

th e Responden t

ha damaintenanc e progra mapprove db y th e FA A whos e specifi c term s an dcondition s wer e establishe db y th e manufacturer , includin g Pag e 5 APPLICATIO N FO RATTORNEY' S FEE S UNI>EREAJ Athos e for aGi l CM P 53953 5 - Fuselag e Statio n 58 0 N D T (ComScan ) Inspection . Th e FA A

kne w tha t th e manufacture r

coul dexten dtha t

tim e fo r inspection s unde r

it s maintenanc e progra mthroug h Letter s o f N o Technica l Objection . Th e FA A ha dacces s t o th e opinion s o f it s Chie f Counse l wh o ha dopine dthat n o regulation s covere dNT O letter s an dtha t ther e wa s n o specifi c requiremen t that th e sam e b e approve di n advanc e b y th e local FSDO . Th e FA A coul dcit e n o specifi c regulation . Order , Advisory Circular , Legal Opinio n o r an y publishe ddocumen t

whic h covere dNTO's . In effect , i n thi s case , th e FA A "mad e up " thi s requiremen t an dwhe n face dwith th e optio n o f provin g thi s matte r

i n court , cave di n an dwithdra w it s complaint . Th e Respondent/Applican t

wa s force dt o defen ditsel f an dfinall y mad e th e determinatio n tha t i t woul dlitigat e thi s matte r

regardles s o f

cos t o n th e basi s o f

"Million s for

defense , bu t

not on e dim e for tribute" . Th e FA A shoul dno t b e allowe dt o rid e roughsho dwithou t reaso n ove r smal l businesse s causin g the mt o spen dsubstantia l sum s o f mone y t o defen dthemselves . Whil e th e decisio n o f

Threshol dAi r

Charter , Inc . t o fight

thi s matte r

whe n i t ha dth e opportunity t o settl e migh t hav e bee n apoo r

decisio n but

i t amorall y correc t

one . NE T WORT H O FRESPONDEN T Attache dheret o a s Exhibi t "D " i s th e ne t

worth Exhibi t

o f responden t

i n accordanc e with 1 4 CF R§14.1 1 showin g ne t worth o f les s tha n 7 millio n an dnot mor e tha n 50 0 employee s at

th e tim e th e adversary adjudicatio n was initiated .



### ATTORNEY' S FEE S INCURRE D Attache dheret o a s Exhibi t "E " pleas e findth e Declaratio n o f Steve n L . Graff

, counse l fo r th e Respondent/applicant . Sai ddeclaratio n include s a n itemizatio n o f

th e hour s spen t i n connectio n with thi s matter , (i.e. : 70. 2 hrs ) adescriptio n o f th e service s provide dan d th e rat e at whic h th e fe e was calculated . Th e declaratio n als o include s hi s customary fees , th e prevailin g rat e for

attorney s i n th e community , th e tim e spen t i n representatio n o f

thi s clien t an dth e complexity o f

th e matter . Th e prevailin g rat e for attorney' s fee s i n th e community i s fa

r i n exces s o f

what i s permitte dunde r

EAJA . COST S INCURRE D B Y RESPONDEN T FO REXPER T WITNES S Attache dheret o a s Exhibi t "F" , pleas e findth e Resum e o f Charle s Hicks , Jr . Esq. , togethe r with asworn declaratio n an dacop y o f hi s billing . Mr . Hick s woul dhav e bee n use d a s an expert

witnes s i n thi s matter . H e i s a n attorne y a s wel l p aretire dFA A inspecto r (jus t severa l year s ago ) whos e las t jo b with th e FA A wa s the ! Technica l Standard s Branc h Manager . Hi s testimon y woul dhav e bee n o n th e issu e a s th e NT O letter s an dwhethe r o r no t I I 1 Pag e 6 1 APPLICATIO N FO RATTORNEY' S FEE S UNi)EREAJAther e wa s an y requiremen t o n th e part

o f acertificate holde r

t o obtai n FA A approval . H e woul dhav e provide dopinio n testimon y a s t o whethe r o r no t th e fact s i n thi s subjec t

cas e indicate daviolation . Furthe r h e woul dhav e testifie do n th e issu e a s t o whethe r or no t th e FA A was substantiall y justifie di n pursuin g thi s applican t i n vie w o f

th e FA A guideline s se t fort h i n Orde r

2150.3B . Thi s cas e involve dextremel y comple x issue s involvin g maintenanc e manuals , operation s specification s an dsubstantia l documentatio n o f th e Respondent . Mr . Hick s expertis e a s aformer

FA A Fligh t

Standard s employe e wa s invaluabl e i n helpin g defens e counse l revie w al l pertinen t documentatio n an dassiste di n defens e counse l preparin g witnes s examinatio n an dcross-examinatio n fo r trial . Mr . Hick s charge dth e su mo f $300.0 0 pe r

hou r for hi s wor k an dth e tota l charg e for Mr . Hick s wa s $5,550.00 . I n accordanc e with th e discovery i n thi s matte r counse l for

th e Adminisfrato r

indicate dsh e woul dno t

hav e an y expert

witnesse s althoug h sh e state dtha t sh e woul dhav e som e o f

he r inspector s testif

y a s t o "safet

y issues" . Applican t

doe s not kno w th e prevailin g wag e for

inspector s (includin g retiremen t an dmedical ) s o i t

caimo t informth e court a s t o th e compensatio n pai db y th e FA A for it s expert witnesses . CONCLUSIO N Base dupo n th e foregoing . Applican t request s th e su mo f

$8,775.0 0 a s attorney ' s fee s an dth e su mo f

$5,550.0 0 a s cost s for

th e expens e o f

an expert witness . VERIFICATIO N PE R1 4 CF R§14.10(e ) I hereb y certif

y unde r penalty o f

perjur y i n accordanc e with th e law s o f th e Stat e o f Californi atha t

th e informatio n containe di n thi s applicatio n i s tru e an dcorrect . DATED : February 2 7 , 201 0 STEVE N L . GRAFF , INC , A PfofSSSTojia

l Ira w Cbrodration ^

STEVE N L . GRAF F P.O . Bo x 89240 9 Temecula , C A 92589-240 9 (951 ) 303-640 0 te l (951 ) 303-072 3 fa

x Aviationcounsel@aol.co m Attorne y for

Responden t Pag e 7 APPLICATIO N FO RATTORNEY' S FEE S UNDE REAJ A" V * >' ' ' • ? < .j v ''"''. '

^•:''^- ^ 'C Ft^'-'X*^- ' - . ' " i ' '.'Kt- ^ • '' ' . "'j , • -? .

'•-t^' : '"> ' ''^'!:•'t^'^"•>•*'«',f''-w' • >^, . ^»i&Lw£jart-*iHL ^U.S . Departmen t ofTransportatlo n Federa l Aviatio n Admfnislralio n Operation. s Specification s D072 . Aircraf

t Maintenance

- Continuou s Airworthines s Maintenanc e Progra m(CAMP ) Authorizatio n H Q Control : H Q Revision ; 09/27/0 5

01 b a . Th e certificate holde r i s authoTtzcc

l to conduc t

operation s under

1 4 CF RPart

13 5 o f th e Federal Aviatio n Regulation s usin g tli e aircraf t identifie di

n th e certificate holder' s aircraf t listin g provide dtli e followin g condition s ar

e met . b . Eac h aircraf

t liste di n tli e tabl e belo w i s authorize dfo r us e an dshal l b e maintaine di n accordanc e wit h th e continuou s airsvorthines s maintenanc e progra mandlimitation s specifie din thes e operation s specifications . c . Tli e continuou s airworthines s maintenanc e progra mmus t b e sufficiently comprehensiv e in scop e an d detai l t o fulfil

l it s respoiisibilit

y to maintai n th e aircraf

t i n a n airvvortli y conditio n i

n accordanc e witl i applicabl e FederalAviatio n Regulation s an dstandard s prescribe dan dapprove db y th e Administrator . Th e progra mshal l b e include di

n th e certificate holder' s manual . d . Each aircraf

t andit s componen t

parts , accessories , andappliance s are maintaine din a n airwortii y conditio n i n accordanc e wit h th e time limit s fo

r th e accomplishment

o f th e overhaul , replacement , periodi c inspection , androutin e check s o f th e aircraf

t andit s coinponen l parts , accessories , an dappliances . Tim e limit s o r standard s fo

r dctenninin g lime limit s shal l b e containe din thes e operation s specification s o r i n a documen t approve db y th e Administrato r andreference di n tlies e operation s specifications . e . Item s identifie da s "o n condition " shal l b e maintaine din acontinuou s airworth y conditio n b y periodi c inspections , checks , service , repair , and/o r preventiv e maintenance . Th e procedure s an dstandard s fo r inspections , checks , service , repair , and/o r preventiv e maintenance , check s o r tests , shal l b e describe di n th e certificate holder' s manual . r. Part s o r

subassemblie s o f

component s dial d o no t

hav e specifi c tim e interval s shal l b e checked , inspected , and/o r

overhaule da

t th e sam e tim

e limitation s specifie dfo

r th e componen t

o r accessoi y t o whic h suc h part s o r

subassemblie s are relate do r include da

t th e time perio dindicate dfo r th e ATA chapte r heading . Aircraf t M/M/ S GA-1159-115 9 CAM P Documen t Nam e an dNumbe r Gulfstrea mAerospac e Corporatio n Computerize dMaintenanc e Program/Electroni c Dat aTransfe r

Progra m (A s Revised )

Prin t Date : 4/8/200 8 D072- 1 THRESHOLD AIRCHARTE RIN C Certificat e No. : TZDA485 KU.S . Departmen t OfTransportatlo n Federa l Aviatio n Operation s Specification s Administratio n 1 . Issue dby th e Federa

l Aviatio n Administration . 2 . Thes e Operation s Specification s are approve db y directio n o f the Administrator . Serrano , Gabrie l Principa l Maintenanc e Inspecto r

WP2 1 3 . Date Approval i s effective : 10/18/0 5 Amendmen t Number : 1 4 . I hereb y accep t

andreceiv e th e Operation s Specification s i n thi s paragrapli . Mehlinger , Eri c NM

N Chie f Pilot , Par t 13 5 Date : 10/18/0 5

Print Date : 4/8/200 8 D072- 2 Certificate No. : TZDA485K . THRESHOLD AIRCHARTE RINC 

# d'**M» i

. C 't

-

. ' ' f" . ' '•''^iF%, h ^•-'->-t.^'ie i

K J „ ,1^ '

' , ' •,"<^*''•"."- ' "'i ' -A'''C.N'",'.

- .'"- ' "'

- .'j, ' •-''"^,"1'

- v".„'^^'••'^;7•'*.- . *^.;;/i''

- 'f/\ . • ' <',,.7rt , . - • ' \> .

1November 16 , 200 7 - R&MENG07-15 9 Mr . And y McMaster Aviatio n Maintenanc e Group 835 2 Kimball Ave . BLD G F35 0 # 3 Chino , CA . 9170 8 Phone:(909)606-166 6 Fax : (909 ) 606-250 7 Subject : Reques t

for Extensio n o

f Chapter 5 Schedule dMaintenanc e Check . Gulfstrea mGil , Seria

l Numbe r 180 Registratio n Numbe

r N416C G Thi s letter i s i n respons e t o your

reques t to exten dthe nex t

du e complianc e date fo

r th e Chaptei 5 schedule dmaintenanc e chexl ; liste dbelow . Ou r Computerize dMaintenanc e Progra mrecord s indicat e thi s inspectio n /

chec k i s du e on 11/30/2007 . Yo u hav e requeste dt o exten dcomplianc e of th e following Maintenanc e Check s unti l 02/28/200 8 du e t o equipmen t repai r an dAircraf t schedulin g concerns : Gi l CIvl P 53953 5 - Fuselag e Statio n 58 0 NDT (ComScan ) inspectio n Base do n Gi l flee t history , Gulfstrea

mconclude s tha

t th e requeste dwill hav e n o impac t o n th e safet y o r operationa

l capabilitie s o

f your au-ciTaft . Ther e i s th e possibilit

y o f incurrin g additiona ! maintenanc e cost s by delayin g th e maintenanc e chec k listedin tlu s request . Gulfstrea mha s no technical objectio n wid i you i reques t fo r th e Fuselag e Statio n (FS ) 58 0 Bulkhea dND T (ComScan ) Inspection , CM P code 539535 . However , fina l authorizado n o

f thi t deviatio n mus

t b e obtaine dthroug h you

r loca l Airworthines s Authorit

y I tnis i thi s informado n will help i n th e operatio n o

f you r G U aircraf t andif w e can b e o f

fxirthe r assistance , pleas e d o no t

hesitat e t o contac t

us .

JoyM . Sila s Sr . Mintainabilit y Engineerin g•^jy j i * '"-«

- 1

?>/• »

i , ^



# 3

, •-' -

. - i i



# ^- ^ ^: x,/>>^si#t#f?m ^Marc h 26,200 7

CERTIFIE D MAI L - RETURN RECEIP T REQUESTE D Dassaul t Falco n Je t

Corporatio n Joh n K . Lo h Director , Technica l support Teterbor o Airport Bo x 200 0 Sout h Hackensack , N J 0760 6 80 0 Independenc e Ave. , S.w . Washington , D.C . 2059 1 Re : Reques t

fo r Interpretatio n o f

th e Par t 13 5 Regulation s Pertainin g t o Whethe r Genera l Maintenanc e Manual s Use di n Par t 13 5 Operation s ar e Approve db y th e Federa l Aviatio n Administratio n (FAA) , an dWhethe r Mino r Repair s an dAlteration s Mus t b e FAA-Approve d Dea r Mr . Loh : Thi s i s i n respons e t o you r lette r date dOctobe r

22,2006 , i n whic h yo u aske dfor aFedera l Aviatio n Administratio n (FAA ) legal interpretatio n o f "th e Part 13 5 regulatio n whic h pertain s t o a13 5 Operator s Genera l Maintenanc e Manual (par t 135.21). " Your

reques t appear s t o b e base d o n th e premis e tha t

som e operator s hav e indicate dt o Dassaul t Falco n Je t

Corporatio n (Dassaul t Falcon ) thei r

belie f tha t thei r General Maintenanc e Manual s (GMM ) ar e approve db y th e FAA . Accordingly , the y believ e tha t al l repair s an dalteration s t o thei r aircraft , whethe r

majo r o r minor , mus t b e approve db y th e FAA . O n pag e tw o o f you r letter , yo u as k

four specifi c question s o n thes e matters . W e wil l answe r the mi n order . 1 . Pleas e advis e i f

i n fac t th e approval o f

aPart 13 5 GM M constitute s th e expres s FA A approva l o f

al l document s reference dwithi n that document . FA A Answer . I n orde r

t o provid e context , yo u state di n th e backgroun dsectio n o f you r lette r that an operato r

advise dyo u o f

astatemen t

i n it s manual that

i t "wil l us e th e OEM' s maintenanc e manua l i n th e maintenanc e o f th e aircraft. " Yo u state dfurther that th e operator' s perceptio n i s that , "sinc e th e GM M i s approve db y th e FAA , the n th e dat acontaine dwithi n that GM M the n become s approve ddata. " Th e regiUatio n yo u refer to , sectio n 135.2 1 o f

th e Federa l Aviatio n Regulations , 1 4 C.F.R . § 135.21 , states , i n pertinen t part : Eac h certificat e holder , othe r tha n on e wh o use s onl y on e pilo t i n th e certificat e holder' s operations , shal l prepar e an dkee p curren t amanua l settin g fort

h th e certificate holder' s procedure s an dpolicie s acceptabl e t o th e Administrator . Thi s manua l mus t b e use db y th e certificat e holder' s flight, ground , an dmaintenanc e personne l i n conductin g it s operations . Printe dfromSummi t

Aviation' s Digita l Aviatio n Referenc e Library , 2/26/201 0

Pag e 1B y it s terms , th e regulatio n require s onl y tha t th e manua l b e "acceptable " t o th e FAA . I f w e understan dyou r

questio n correctly , i t

seem s t o b e base do n inquirie s yo u hav e receive dtha t se t fort h an erroneou s premis e that th e operators ' GMM s are approve db y th e FAA . A s a regulatory matter , suc h approva l i s no t required . Moreover , th e performanc e rule s o f th e FAA' s maintenanc e regulations , specificall y 1 4 C.F.R . § 43.13(c) , provide , i n pertinen t part , that : Unles s otherwis e notifie db y th e Administrator , th e methods , techniques , an dpractice s containe di n th e maintenanc e manual o r th e maintenanc e part o f th e manua l o f

th e holde r

o f a n ai r carrie r operatin g certificat e o r

an operatin g certificate unde r Part 12 1 o r 13 5 ... . constitut e acceptabl e mean s o f complianc e with thi s section . Nevertheless , operators ' GMM s may contai n document s tha t requir e formal approva l b y th e FAA . B y way o f

example , portion s o f

th e Structural Repai r

Manua l (SRM) , Weigh t

an d Balanc e Manual , an dth e Airworthines s Limitation s sectio n o f th e Instruction s fo r

Continue d Airworthines s (ICA ) [se e H250 4 "Airworthines s Limitation s section " o f Appendi x H t o 1 4 C.F.R . part

25 ] hav e dat atha t

i s FAA-approved . Detail s o f GMM s may vary amon g operators , dependin g o n eac h particula r operator' s specifi c need s an drequirements . Generally , eac h certificat e holde r work s with it s local Certificat e Managemen t Offic e (CMO ) i n developin g an acceptabl e manual , includin g whic h portion s are FAA-approved . Question s concernin g agive n operator' s GM M shoul db e addresse dt o that operator' s local CMO . 2 . Pleas e advis e i f

ther e i s any conditio n i n whic h th e FA A consider s th e Dassaul t Airplan e Maintenanc e Manua l a s approve ddata . FA A Answer . A s note dabove , onl y th e Airworthines s Limitation s sectio n o f th e Instruction s for Continue dAirworthines s (ICA ) prepare db y amanufacture r i s require dt o b e FAA-approved . Th e essenc e o f you r lette r i s i n th e contex t

o f Part 13 5 operators ' maintenanc e manuals , and , with respec t t o an operator' s usin g it s GM M i n maintainin g it s aircraft , ou r

answe r abov e applies . 3 . Pleas e advis e i f

a n operator' s operatio n luider Part 13 5 i n an y way change s th e requirement s t o establis h th e need s for return t o servic e o f

Mino r versus Majo r

repairs . I n essence , i s ther e any mandat e t o hav e approve ddat afor arepai r o r alteratio n tha t

pe r th e FAR' s meet s th e definitio n o f

minor ? that : FA

A Answer . Sectio n 135.437(b) , 1 4 C.F.R . § 135.437(b) , provides , i n pertinen t part , A certificate holde r

may approv e an y airframe , aircraf t engine , propeller , rotor , o r applianc e for

return t o servic e afte

r maintenance , preventiv e maintenance , o r

alteration s that

are performe d... . However , i n th e cas e o f amajo r repai r o r alteration , th e wor

k mus t hav e bee n don e i n accordanc e Printe dfromSummi t

Aviation' s Digita l Aviatio n Referenc e Library , 2/26/201 0

Pag e 2with technica l dat aapprove db y th e Administrator .

Therefore , i f

aprope r determinatio n ha s bee n mad e that th e repai r

o r alteratio n at

issu e i s minor , FAA-approve dtechnica l dat ai s no t required . 4 . On e final interpretatio n - whe n amanufacture r issue s aN o Technica l Objectio n lette r t o a custome r regardin g an ite mwhic h meet s th e definitio n o f mino r repai r o r alteratio n pe r

th e FAR's , i s i t

mandatory fo

r tha t custome r t o take that

NT O t o thei r

local FSD O for

approva l before returnin g th e aircraf t t o service ? FA A Answer . Procedure s for handlin g N o Technica l Objectio n (NTO ) letter s ar e no t addresse di n th e regulations . Individua l operator s shoul dwor k wit h thei r

loca l Fligh t Standard s Distric t

Offic e (FSDO ) o r

CM O o n issue s involvin g th e acceptability o f usin g NTOs . A s note dabove , however , i f th e repai r o r alteratio n a

t issu e meet s th e regulatory definitio n o f

amino r repai r o r amino r alteration , FAA-approve dtechnica l dat ai s no t require dfor

th e repai r

o r alteration . W e hop e th e abov e answe r respond s t o you r

needs . Sincerely , Rebecc aMacPherso n Assistan t Chie f Counse l for

Regulation s Offic e o f th e Chie f Counse l

Printe dfromSummi t

Aviation' s Digita l Aviatio n Referenc e Library , 2/26/201 0

Pag e 3j r ^ ...i « .,4.. i

• i

:"v.^r„--. , -"J;? . ;»• *

' - y-r'' ^

¥ ' '•''• . •

'•><'':' ' * '•j^^ i

:•-'•,. ' "-.^•^v. " .•7--* , ilv-'"" . "-'j'''!' . .' . .1'^'*•""'."

- .'^J

- ' "" ^ ^•' '



### ' ' -'!,

- ,f",.

- 1?,-:.".' . .v-'l,-'

- vV-f ' .'-^-r^.V-''^'^^'' : ' 'iC'^ .

V :.'^-, |

t . , ^ S„ ^ ' - ,->^-- -From : 02/26/201 0 03- . 5 1 «70 4 P.001/00 2

•«a'.:'V - "ii : jV f .^utii g .-jjjfciwf ;y. i 

# i THRESHOLD !

I s . AI R CHARTER , ING , 'i^

2/26/1 0 To : Who mi t

may concern . M y nam e i s Mai k

DiLullo , I a

mth e Chie f

Executiv e Office

r o f Threshol dAi r

Charter , Inc . Attache dpleas e find abalanc e shee t coverin g fiscal yea

r 200 8 for Threshol dAi r Charter Inc. , thi s i s bein g provide da s proo f tha t th e Corporatio n doe s no t

hav e assets/ne t wort h o f over $7,000,000.00 , als o ther e ar e n o affiliat e companie s financially

joine dwit

h Threshol dAi r

Charter . Additionally , Threshol dAi r Charter Inc. , ha s neve r

employe dove r

50 0 employee s at

an y tim e an dspecificall y no t

durin g th e tim e i n question . Respectfully , MarkDiLtBIoTCE O

= = = 835 2 Kimball Ave . • BIdg . F35 0 # 3 • Chino . CA 9170 8 ' Phone : (909 ) 606-631 9 • Fax : (909 ) 606-117 3 • Ai r Carrier Cert . #TZDA485 KFrom : 02/26/201 0 09:5 2 ff704 P . 002/00 2

9:5 1 A M Threshol d Ai rCharter , Inc . 02/26/1 0 Balanc e Shee t Accrua l Basi s A s o f Decembe r31,200 8 De c 31 , 0 8 ASSET S Curren t Asset s Checking/Saving s 100 0 •Qenere l Accoun t 68,429.3 5 102 0 • Payrol l Accoun t 60.0 0 103 0 • Pett yCas h -3,000.0 0 Tota l Checking/Saving s 65,489.3 5 Account s Receivabl e 120 0 • Accouni s Receivabl e \ 15,506.5 6 Tota l Account s Receivabl e 15,506.5 6 Othe rCurren t Asset s .149 9 • Undeposite d Fund s -219,112.S S 161 5 • Intercompan yTransfe r1,195,827.4 4 1616. 1 • Intsr-c o Tf r- AM G -427,394.5 8 1515. 2 • Inter . C o MF G 1,000.0 0 1515. 3 • Inter , Co , TT I -299,781.6 1 Tota l Othe rCurren t Asset s 250,538.6 9 Tota l Curren t Asset s 331,534.6 0 TOTA U ASSET S 331,634.6 0 LIASILITIE S a EQUIT Y Liabilitie s Curren t Llabllltie B Accouni s Payabl e 200 0 • Account s Payabl e 211,269.3 2 Tota l Account s Payabl e 211,269.3 2 Othe rCurren t Liabilitie s 201 1 • Loa n Payabl e • Lion s Prid e 2,90 0 0 0 201 2 - Loa n Payabl e - Lis a Dilull o -11.179.6 0 240 0 • Intercompan yTran5fers(6-16-08 ) 40 1 • AM G Genera l -26.200.0 0 40 2 • AM G Payrol l -151,000.0 0 40 4 • Threshol d Technologie s Inc . -217,400.0 0 406'TTI-FB O -93,200,0 0 40 6 • Threshol d Textro n -3,000.0 0 407-Threshol d iUf g -39,200.0 0 40 8 • Threshol d AME X _ _4^00.0 0 Tota l 240 0 • Intercompan yTran8fers(6-16-08 ) -525,600.0 0 Tota l othe rCurren t Uabllltie s -533,779.6 0 Tota l Curren t Liabilitie s -322,510.2 8 Tota l Liabilitie s -322,510.2 8 Equit y 350 0 • Retaine d Earning s -90,049.8 3 Ne t Incom e 744,094.7 1 Tota l Equit y654,044,8 8 TOTA L LIABILITIE S & EQUITY 331,534.6 0

Pag e 1

## UNITE D STATE S O FAMERIC A

U.S . DEPARTMEN T O FTRANSPORTATIO N OFFIC E O FHEARING S - WASHINGTON , D.C . ) FA A DOCKET : No . CP09WP000 6 In th e matte r

of : ) DM S No . FAA-2009-009 5 ) THRESHOL D AI RCHARTER , INC . ) DECLARATIO N O F ) STEVE N L . GRAFF , ESQ . Responden t

) I N SUPPOR T O FEAJ A ) APPLICATIO N ) ASSIGNE D T O - Th e Honorabl e RICHAR D C . GOODWI N I , STEVE N L . GRAFF , ESQ. , declar e a s folIoM^s : 1 . I f calle da s awitnes s i n th e abov e entitle dmatter , I coul dcompetentl y testif y unde r oat h a s follows . 2 . I a man attorne y at

la w dul y license dt o practic e la w an dI hav e my office s a t 4339 9 Call e D e Velardo , Temecula , C A 9259 2 an dus e P.O . Bo x 892409 , Temecula , C A 92589

- 240 9 a s my mailin g address . 3 . I hav e bee n apracticin g lawyer for approximatel y 4 2 year s an damaformer attorne y with th e Federa l Aviatio n Administration . I specializ e i n representin g aviatio n oriente d clients , includin g ai r

carriers , air/tax i commercia l operators , fixe dbase doperators , flight schools , maintenanc e facilities , mechanics , pilots , corporat e flight department s an daircraf

t leasin g firms . M y representatio n includes , but i s no t limite dto , al l initia l certificatio n work , advers e actions , governmenta l regulatory issues , airport , transactiona l an dlitigatio n matters . In additio n t o providin g general aviatio n busines s transactiona l an dlitigatio n assistance , I hav e asubspecialty i n administrativ e law matter s an drepresent s client s before federal an dstat e administrativ e agencie s i n matter s involvin g governmen t certificatio n an d Pag e 1 DECLARATIO N O FSTEVE N L . GRAF FI N SUPPOR T O FEAJ A APPLICATIO Nregulatory defense . I hav e appeare dbefore an dhav e argue dcase s before th e Federa l Aviatio n

Administration , Nationa l Transportatio n Safet y Board , Meri t

Syste mProtectio n Board , Departmen t

o f Transportation , Unite dState s Customs , State Department , Unite dState s Distric t Court an dUnite dState s Court

o f Appeal s for

4th , 9th , 11t

h an dD.C . Circuits . 4 . I was th e former

General Counse l for

th e Nationa l Organizatio n o f Ai r Carriers , hav e sa t a s Judg e Pro-Te mi n Superio r Court i n L . A . & Riversid e Countie s an damapas t instructo r i n Aviatio n La w at

Lon g Beac h City College . 5 . I charg e $350.0 0 pe r hou r for my service s whic h i s th e prevailin g rat e for my expertis e i n Southern Californi abut I understan dtha t

I amlimite dt o $125.0 0 pe r hou r i n thi s EAJ A application . 6 . Thi s cas e was extremel y comple x du e t o issue s involvin g manufacturer ' s maintenanc e progra man dletter s o f

n o technica l objection . There wa s avoluminou s amoun t o f paperwork that wa s require dt o b e reviewed . 7 . I wa s retaine db y Threshol dAviatio n t o represen t the mafe r th e complain t

wa s filed an dwas initiall y aske dt o prepar e th e Answe r t o th e Complain t

an dth e initia l discovery t o th e Administrator . I becam e counse l o f recor dofficiall y o n Augus t 6 , 200 9 b y notificatio n t o both th e ALJ an dFAA . 8 . Th e followin g i s my documentatio n o f fee s an dexpense s basedupo n a n hourl y compilatio n only : DAT E SERVICE S RENDERE D TIM E 05/29/9 0 Initia l meetin g with Mar k Dilullo , President , Threshol d Ai r Charter , Inc. ; Receipt/Revie w FA A complaint ; Prepar e Answe r

o n behal f o f clien t i n Pro-per ; initia l revie w o f

FA A document s an drevie w o f

aircraf t documents . 2. 6 hrs . Pag e 2 DECLARATIO N O FSTEVE N L . GRAF FI N SUPPOR T O FEAJ A APPLICATIO NDAT E SERVICE S RENDERE D TIM E

06/11/0 9 07/14/0 9 Receipt/revie w Assignmen t o f judge ; prepar e discovery t o FA A (Se t

No . 1 ) with lette r

t o client . 1. 5 hr s Receipt/Revie w FAA' s response s t o discovery ; Teleco n with clien t

re : nee dfor

additiona l discovery . . 7 hr 08/05/0 9 Meetin g with Mr . Dilull o a t Riversid e County Courthouse ; Revie w fiirther

document s an ddiscussio n a s t o strateg y an dtactic s i n defens e o f action . Provide d Procedura l Orde r

o f Jun e 9 . 2. 1 hr s 08/06/0 9

08/14/0 9 Prepar e lette r t o AL J Goodwi n requestin g extensio n an d notificatio n a s retentio n o f counse l for

Respondent ; Reviewe dexpert

files for loca l expert

witnes s (requiremen t that witnes s b e former

FAA) . 1. 1 hr s Prepar e Request s for

Admissions ; Prepar e Interrogatories ; Fil e review ; teleco n with client . 4. 6 hr s 08/18/0 9 Receipt/revie w e-mail s fi:omMarcu s Giordan o (DOM )

Re : additiona l documentatio n no t initiall y provided ; teleco n with DO M regardin g nee dfor further document s an d nee dfor testimon y a

t tim e o f trial . 1. 3 lir s 08/24/0 9 Receipt/revie w Amende dProcedura l Order ; FAX t o

ALJ re : schedulin g o f

trial . . 5 hr s 08/25/0 9 Receipt/revie w lette r fi:omclien t

forwardin g lette r

fro m FA A regardin g effec t

o f NT O letter ; teleco n with DO M regardin g lette r

received ; Receipt/revie w discovery reques t fro mFAA ; prepar e fa

x t o counse l re : extensio n o f discovery an dimprope r

calculatio n o f

time ; prepar e fa

x t o clien t with c c o f FA A discovery an dinstruction s regarding ; ho w t o respond . Prepar e tentativ e question s for dInspecto r FA A Serran o a

t afte r discussio n with DOM . 3 . Ihr s 08/31/0 9 Teleco n with FA A counsel ; fa x t o FA A counse l re : al l cu t of f date s for discovery an dmotions ; Receipt / Revie w E-mai l fro mMr . Dilull o regardin g informatio n not initiall y provided ; teleco n with Mr . Dilull o re : response s t o FA A discovery . 1. 8 hr s

Pag e 3 DECLARATIO N O FSTEVE N L . GRAF FI N SUPPOR T O FEAJ A APPLICATIO NDAT E SERVICE S RENDERE D TIM E

10/19/0 9 Receipt/revie w FA A response s t o discovery (al l objections) :

Prepar e fa x t o FA A counse l re : "mee t an dconfer " an dtha t FA A response s wer e improper ; Prepar e response s t o FA A request s fo

r admissions ; Numerou s telecon s Mr . Dilull o a s t o avenue s availabl e t o compe l discovery . Determinatio n that

motion s woul dno t

b e cos t effectiv e a s issue s can b e prove n independently . Advise dclien t

t o provid e full disclosur e o f al l document s regardles s o f

FAA' s objection s an dfailure t o respon d sinc e ALJ coul dissu e preclusionary orde r at tim e o f tria l i f no t give n i n discovery . 3. 4 hr s 10/20/0 9 Teleco n with DOM ; receipt/revie w e-mai l fro mDO M

regardin g FA A reques t

fo r documents ; advise dDO M no t t o provid e "informal discovery " t o FAA ; Receive dcal l fro mMr . Dilull o very upse t at action s o f

FAA : Prepare dFA X t o FA A counse l complainin g abou t action s o f inspecto r an dthat th e sam e shoul d"ceas e an ddesist" . 2. 1 hr s 10/27/0 9 Receipt/Revie w FAX fi-omFA A regardin g Respondent' s

discovery response s ("mee t an dconfer " letter) ; teleco n with clien t

regardin g further

responses . . 9 hr s 11/09/0 9 Prepar e additiona l examinatio n question s for FA A Inspectors ; Receipt/Revie w Notic e o f Trial ; Teleco n with clien t

re : meetin g t o prepar e fo r trial . 1. 2 hr s 11/16/0 9 Revie w file an dprepar e additiona l examinatio n

question s for

FA A Inspectors , researc h issu e o f us e o f wor d"should " i n al l FA A documents ; Discovere dtha t

FA A Orde r

1270. 1 define s "Should " a s desirabl e o r

preferre dbut

no t mandatory ; Use di n FA A opinio n lette r give n t o client . 2. 4 hr s 11/18/0 9 Meetin g a t client' s Chin o offic e with Mr . Dilullo , Mr . Giordiano ; Mr . McMasters , Mr . Nichol s an dothe r staf f i n preparatio n for

trial ; intervie w witnesse s an d revie w documentatio n that may no t hav e bee n provided ; Mad e presentatio n a s t o ho w tria l proceed s an dgenera l informatio n al l witnesse s nee da t tim e o f trial . 4. 3 hr s Pag e 4 DECLARATIO N O FSTEVE N L . GRAF FI N SUPPOR T O FEAJ A APPLICATIO NDAT E SERVICE S RENDERE D TIM E

11/20/0 9 11/20/0 9

11/23/0 9

11/25/0 9

11/30/0 9

12/03/0 9

12/07/0 9

12/14/0 9 Prepar e partia l response s for discovery . 2. 4 hr s Teleco n with potentia l expert witnes s Charle s Hick s regardin g (1 ) whethe r violatio n existe dat all ; (2 ) whethe r

legal actio n wa s eve n justified ; (3 ) doe s issu e eve n fal l withi n FAA' s matri x i n Order2150.3B ? 1. 1 hr s Complet e discovery responses ; teleco n with Mr . Dilull o an dMr . Giordan o re : response s an d document s provided ; sen dcop y o f document s t o expert witnes s Hicks . 2. 4 hr s Teleco n with expert

witnes s Hick s regardin g fact s o f cas e an dlegal issues ; teleco n with Mr . Giordan o regardin g settin g u p meetin g i n Chino . 1.7 hr s Meetin g with expert

witnes s Hick s & Mr . Giordan o at client' s facilit

y for fiill revie w o f

al l document s i n preparatio n for

trial . 3. 1 hr s Sen dfinal documen t

packag e t o FA A counsel ; Teleco n with expert

witnes s Hick s re : resume ; revie w FAA rule s an dJudge' s pre-tria l orde r re : service . 1. 5 hr s Receipt/Revie w expert

witnes s resume ; Discussio n with Mr . Dilull o regardin g us e o f Mr . Hick s an dpaymen t

for same . . 5 hr s Teleco n with Mr . Nichol s regardin g nee dfor expert witnes s a s t o (1 ) legal issues ; (2 ) FA A interpretations ; an d an dfoundatio n fo

r FA A Orders . . 3 hr s 12/31/0 9 Teleco n wit h Mr . Giordan o regardin g FA A reques t for additiona l information ; instructe dclien t t o tel l FA A t o submi t reques t throug h lega l office . . 4 hr s 01/08/1 0 Telecon s wit h Lis aToscan o (FA A Counsel ) re : settlemen t an dissue s i n case ; revie w opinio n lette r o f Chie f Counsel' s Offic e provide db y counse l re : NT O letters ; Informe dFA A that n o regulation s prohibite dconduc t se t fort h i n C P Order ; discussion s Re : civi l compromise . 1. 1 hr s

Pag e 5 DECLARATIO N O FSTEVE N L . GRAF FI N SUPPOR T O FEAJ A APPLICATIO NDAT E SERVICE S RENDERE D TIM E

01/11/10 Revie w documentatio n provide db y And y McMaster s

i n preparatio n for

tria l regardin g hi s reques t o f Gulfstreamfor

NT O letter ; discussio n with witnes s a s t o statement s o f

Gulfstreamregardin g an y nee dt o obtai n FA A approval . . 9 hr s 01/15/1 0 01/21/10 Receipt/revie w o f document s fromFA A regardin g civi l compromis e o f

$10,000.00. ; teleco n wit

h cHent . . 7 hr s Teleco n with clien t

an dteleco n wit h FA A regardin g civi l compromis e o f

$5,000.00 . FA A refiisal . 1. 2 hr s 01/22/1 0 Teleco n with Mr . Dilull o re : strateg y an drespons e

t o FAA . 1. 0 hr s 01/25/1 0 Pre p e-mai l t o FA A counse l informin g he r that Responden t

wil l no t settl e an dt o prepar e fo r trial . . 1 hr s 01/25/1 0

01/28/1 0 Initia l consideratio n o f content s an dnote s for openin g statement ; area s o f examinatio n an droug h note s for examinatio n o f

expert witnes s Hicks ; Furthe r preparatio n o f

cross-examinatio n questions . 3. 8 hr s Teleco n with Mr . Nichol s re : NT O Letters ; Receipt/Revie w e-mai l fromMr . Giordan o regardin g prio r NT O letters ; further

preparatio n fo

r tria l includin g direc t

examinatio n question s for Threshold' s defens e witnesses . 2. 6 hr s 01/28/1 0 Receipt/Revie w FAA' s Withdrawa l o f Complaint; Teleco n t o Mr . Dilull o that FA A folded . . 3 hr s 02/02/1 0 Receipt/Revie w Orde r o f Dismissa l with Prejudice ; Teleco n with Mr . Dilull o re : applicatio n for EAJ A fees ; Advise dclien t

that FA A was no t

substantiall y justifie d i n tha t the y wer e awar e o f

lega l opinio n issue dprio r t o thei r C P Order . . 4 hr s

Pag e 6 DECLARATIO N O FSTEVE N L . GRAF FI N SUPPOR T O FEAJ A APPLICATIO NDAT E

02/10/1 0

02/26/1 0

02/27/1 0 SERVICE S RENDERE D

Preparatio n o f

lette r t o clien t advisin g a s t o requirement s fo r filing an EAJ A application ; cop y o f regulatio n sen t t o client . Advise dclien t

that reimbursemen t

i s onl y a t th e rat e o f

$125.0 0 pe r

hour . Initia l Preparatio n o f

EAJ A AppUcation ; teleco n t o Mr . Dilull o requestin g financial statement . Teleco n with expert witnes s Hick s regardin g acop y o f hi s billing . Revie w file, document s an dFA A regulation s i n preparatio n o f

submittin g EAJ A Application . Prepar e Final Draf

t o f EAJ A application , includin g exhibit s an ddeclaratio n o f counse l i n support

o f application . TIM E

. 7 hr s

6. 2 hr s

4. 2 hr s 70. 2 hr s Tota l hour s fo r

lega l representatio n o f

Applicant' s Counse l Base dupo n th e foregoin g hours , at th e statutory rat e o f

$125.0 0 pe r

hour , th e clai m for attorney' s fee s i s $8,775.00 . I f th e approve drat e ha s increased , th e applicatio n i s increase d b y th e sam e percentag e a s th e increas e o f fees . I declar e unde r

penalty o f

perjur y i n accordanc e with th e law s o f th e stat e o f

Californi a tha t th e foregoin g i s tru e an dcorrec t an dthat thi s declaratio n i s execute dthi s 27" ' day o f Fehmary 201 0 at

TemecularCoiifomia .

STEVE N L . GRAF F Declaran t

Pag e 7 DECLARATIO N O FSTEVE N L . GRAF FI N SUPPOR T O FEAJ A APPLICATIO N. ,? i • J 'f i ' - '-l-

-

- - . - ' . f > " " ' : - i I' '

F •^•/j^ :



### 10 '

I f '-1 *1

2 3 4 5 6 7 8 9 1 0 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 2 0 2 1 2 2 2 3 2 4 2 5 DECLARATIO N O FCHARLE S HICKS , JR. , ESQ .

I , CHARLE S HICKS , JR. , ESQ. , declar e a s follows : Attache da s exhibi t

one , i s abreakdow n o f

th e tim e I spen t

preparin g for

th e schedule d tria l betwee n th e Federa l Aviatio n Administratio n an dThreshol dAviation . I declar e unde r

penalt y o f

perjur y unde r th e law s o f

th e state o f

Californi atha t

th e foregoin g i s tru e an dcorrect .

Date : 2/27/201 0

Charle s Hicks , Jr. , Esq .

Pag e 1 o f 29

1 0 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 2 0 2 1 2 2 2 3 2 4 2 5 Dat e

Tota l Billabl e Hour s 11/20/200 9 1. 1 hour s 11/25/200 9 1.

4 hour s 11/27/200 9 2. 0 hour s 11/29/200 9 1. 0 hou r 11/30/200 9 3. 0 hour s 11/30/200 9 1. 0 hou r Billabl e Hour s O f Charle s Hicks , Jr. , Esq . @$30 0 pe r

hour . $33 0 $42 0 $60 0 $30 0 $90 0 $30 0 Activity

Teleco mwith Stev e Graff , Threshol d Aviation' s primar y counsel . Teleco mwith Stev e Graff , Threshol d Aviation' s primar y counsel . Revie w o f

FA A Order , an d Handbook s i n preparatio n for meetin g with Threshol dAviation . Additiona l Revie w o f

FA A Order , an dHandbook s i n preparatio n for meetin g with Threshol dAviation . Meetin g with Threshol dAviatio n an dStev e Graf

f Trave l tim e t o an dfro mmeetin g with Threshol dAviation . 4. 0 hour s 2. 5 hour s 2. 5 hour s 18. 5 hour s $1,20 0

$75 0 $75 0 $5,55 0 Reviewe dcompan y manual s an d

procedures . Revie w o f

document s i n preparatio n for trial . Continue drevie w o f

document s i n preparatio n for

trial .

Pag e 2 o f

2

### Charle s Hicks , Jr. , Esq . 512 2 Katell aAve. , Suite 30 7 Lo s Alamitos , CA 9072 0 Phone:(562)682-6686/Fax:(866)368-858 3 attorneychuck(^verizon.ne t PROFILE : Forty-tw o year s experienc e i n civilian , commercial , military , governmenta l

an d genera l aviation ; includin g ai rcarrie ran d operato rregulatoryoversigh t i n th e area s o f operation s an d ain/vorthiness ; attorne yworkin g i n th e area s o f aviatio n regulatorycomplianc e an d defense . Retire d fro m th e Federa l Aviatio n Administratio n wit h ove rThirt yyear s o f servic e i n th e followin g capacities :

Ainways Facilitie s Technicia n Fligh t Procedure s Technicia n Aviatio n Safet yInspecto r Technica l Trainin g Progra m Manage r Fligh t Procedure s Branc h Manage r Regiona l Aviatio n Safet yProgra m Manage r Technica l Standard s Branc h Manage r Lo s Angele s Fligh t Standard s Distric t Offic e Manage r Retire d Arm yAviato r UH- 1 OH-5 8 C-1 2 Attorne yat Law : eligibl e t o practic e befor e th e Californi a an d Federa l Court s EXPERTISE : Regulatorycompliance : dealin g with ; Certification , ongoin g regulatory

IS O 9000:200 8 an d AS O 900 1 complianc e o f ai rcarrier s an d operato ran d Maintenanc e Repai rOrganization . Fligh t procedure s development . Airpor t an d Airspac e Analysis . Obstructio n Evaluation . Legal : Administrativ e law , an d civi l litigation , exper t testimony , lega l research , depositio n an d documentatio n analysis , fligh t cre w standar d o f care , witnes s interviews , lega l aspect s an d ramification s o f aircre w performance , pilo t actions , ai rtraffi c contro l procedures , cre w resourc e management , pilo t training , Federa l Aviatio n Administratio n (F/\A ) enforcemen t investigatio n procedures , an d F/\

A certificat e managemen t an d oversight . EXPERIENCE : Electroni c Technicia n wit h th e Unite d State s Ai rForc e an d FAA .

Fligh t Inspectio n Technicia n wit h th e FAA performin g airborn e electroni c analysi s o f groun d base d navigatio n signals .Fligh t Instructo ri n genera l Aviatio n Aircraft . Principa l Aviatio n Safet yInspector , Operations : Genera l Aviatio n an d Ai r Carriers . Technica l Trainin g Progra m Manager : provide d managemen t oversigh t o f th e FAA' s regulatory , excep t airports , an d securit ytrainin g programs . Figh t Procedure s Branc h Manager : manage d al l aspect s o f fligh t procedur e developmen t i n th e Wester n Pacifi c Regio n o f th e FAA , evaluate d an d approve d th e use s o f internationa l fligh t procedure s b yU S fla g carrier s i n th e Wester n Pacific , an d evaluate d propose d change s t o Nationa l Airspac e Syste m an d th e constructio n o f structure s fo rthei rimpac t o n aviatio n safety . Regiona l Safet yProgra m Manager : Manage d th e A A Wester n Pacifi c Region' s Aviatio n Safet yProgram . Technica l Standard s Branc h Manager : provide d technica l guidanc e an d assistanc e t o Fligh t Standard s Distric t Office s (FSDO)i n th e area s o f certification , surveillanc e an d certificat e managemen t o f ai rcarriers , ai r operator s an d maintenanc e repai rorganization s i n th e Wester n Pacifi c Region . Directe d th e evaluatio n o f enforcemen t case s writte n b yFSDO s t o determin e i f ther e wa s sufficien t evidenc e t o support a propose d enforcemen t actio n an d whethe rth e recommende d sanctio n wa s appropriate . Unite d State s Arm yAviato ri n helicopte ran d fixed-wing . Attorne ya t Law : workin g i n th e are a o f Aviatio n Law , administrativ e an d civil . Aircraf t owne r(Cessn a -120 , 150 , 170 , an d 177) . RELEVAN T EDUCATION :

Ediso n Stat e Universit y- B S i n Applie d Scienc e an d Technolog y(Aviation) . Pacifi c Coas t University , Schoo l o f Law : Juris t Docto rDegree . Gladhil l Associate s International : IS O 9000 : 200 8 an d AS-9100 B Lea d Audito rTrainin g Course . PROFESSIONA L QUALIFICATIONS :

Airlin e Transport Pilo t Typ e Certificates : DC- 9 Singl e an d multi-engin e land , instrumen t airplan e an d helicopte r Fligh t Instructor : airplane , helicopter , an d instrumen t Ove r4 , 0 0 hour s fligh t time . PROFESSIONA L AFFILIATIONS :

Lawye rPilo t Associatio n NTS B Ba rAssociatio n Californi a Ba rAssociatio n Aircraf t Owner s an d Pilot s Associatio n (AOPA ) AOP A Lega l Pane l'>'>i n

V . l^f? PCERTIFICAT E O FSERVIC E

I hereb y certif

y tha t I hav e thi s day , place di n th e Unite dState s mail , postag e prepaid, , th e origina l an dcop y o f

th e APPLICATIO N FO RATTORNEY' S FEE S UNDE REAJ A TOGETHE RWIT H EXHIBIT S A THROUG H Faddresse dto : Th e Honorabl e RICHAR D C . GOODWI N Offic e o f Hearings , M-2 0 U.S . Dept . OfTransportatlo n 120 0 Ne w Jerse y Avenue , S.E . Eas t Buildin g Groun dFloor , Roo mEl2-32 0 Washington , D.C . 2059 0 A duplicat e origina l an dacop y wa s als o thi s day , place di n th e Unite dState s mail , postag e prepaid , addresse dto : FEDERA L AVIATIO N ADMINISTRATIO N 60 0 Independenc e Ave , S.W . Wilbe r Wrigh t Bldg , Suite 2W100 0 Washington , D.C . 2059 1 Att : Hearin g Docke t

Clerk , AG C A cop y o f th e abov e documen t

wa s als o thi s day , place di n th e Unite dState s mail , postag e prepaid , addresse dto : LIS A J . TOSCANO , ES Q Offic e o f th e Regiona l Counsel , AWP- 7 FEDERA L AVIATIO N ADMINISTRATIO N P.O . Bo x 9200 7 Lo s Angeles , C A 90009-200 7 I declar e unde r

penalty o f

perjur y unde r th e law s o f

th e stat e o f

Californi atha t

th e foregoin g i s tru e an dcorrec t

an dtha t thi s documen t

i s execute do n February 27 , 201 0 at Temecula , California .

STEVE N L . G Pag e 8

APPLICATIO N FO RATTORNEY' S FEE S UNDE REAJ A