June 1, 2015

Exemption No. 11724 Regulatory Docket No. FAA

– 20 15

– 0161

Mr. Bryan Archer

President Galaxy UAV Systems (a subsidiary of Galaxy Aviation

, Inc.) 6215 Kirby Lane

Frisco, TX 75035

Dear Mr. Archer :

This letter is to inform you that we have granted your request for exemption. It transmits our decision, explains its basis, and gives you the conditions and limitations of the exemption, including the date it ends.

By letter dated January 21, 2015 , you petitioned the Federal Aviation Administration (FAA)

on behalf of Galaxy UAV Systems (a subsidiary of Galaxy Aviation

, Inc.) hereinafter petitioner or operator ) for an exemption

. The petitioner requested to operate an unmanned

ai rcraft system (UAS) to conduct agriculture and aerial surveying missions utilizing geographic reference d mapping system

.

See Appendix A for the petition submitted to the FAA des cribing the proposed operations and

the regulations that the petitioner seeks an exemption

.

The FAA has determined that good cause exists for not publishing a summary of the petiti on in the Federal Register because the requested exemption would not set a precedent, and any delay in acting on this petition would be detrimental to the petitioner

.

Airworthiness Certification

The UAS proposed by the petitioner are the Universeye Penguin and DJI Inspire 1

.2

The petitioner requested relief from 14 CFR part 21, C ertification procedures for products
and parts, Subpart H

— Airworthiness Certificates . In accordance with the statutory criteria provided in Section 333 of P ublic Law 112

− 95 in reference to 49 U

. S

. C

. § 44704, and in consideration of the size, weight, speed, and limited operating area associated with the

aircraft and its operation, the Secretary of Transportation has determined that this aircraft

meets the conditions of Section 333. Therefore, the FAA finds that the requested relief from

14 CFR part 21 and any associated noise certification and testing requirements of part 36, is

not necessary.

The Basis for Our Decision

You have requested to use a UAS for aerial data collection . The FAA has issued grants of exemption in circumstances similar in all material respects to those presented in your petition. In Grants of Exemption No s

. 11062 to Astraeus Aerial ( see Docket No. FAA−2014−0352),
11109 to Clayco, Inc. ( see Docket No. FAA

− 2014

− 0507), 11112 to VDOS Global, LLC ( see Docket No. FAA−2014−0382), and 11213 to Aeryon Lab s , Inc. ( see Docket No. FAA−2014−0642), the FAA found that the enhanced safety achieved using an unmanned
aircraft (UA) with the specifications described by the petitioner and carrying no passengers or crew, rather than a manned aircraft of significantly greater proportions, carrying crew in addition to flammable fuel, gives the FAA good cause to find that the UAS operation enabled by this exemption is in t he public interest.

Having reviewed your reasons for requesting an exemption, I find that

—

 They are similar in all material respects to relief previously requested in Grant of Exemption Nos. 11062, 11109, 11112, and 11213 ;

 The reasons stated by the FAA f or granting Exemption Nos. 11062, 11109, 11112, and

11213 also apply to the situation you present; and

 A grant of exemption is in the public interest.

Our Decision

In consideration of the foregoing, I find that a grant of exemption is in the public inte rest. Therefore, pursuant to the authority contained in 49 U.S.C. 106(f), 40113, and 44701, delegated to me by the Administrator, Galaxy UAV Systems (a subsidiary of Galaxy

Aviation

, Inc.) is granted an exemption from 14 CFR §§ 61.23(a) and ( c ), 61.101(e)(4 ) and
(5), 61.113(a), 61.315(a) , 91.7(a), 91.119(c), 91.121, 91.151(a)(1), 91.405(a), 91.407(a)(1), 91.409(a)(1) and (2), and 91.417(a) and (b), to the extent necessary to allow the petitioner to operate a UAS to perform aerial data collection

. This exemption is subject to the conditions

and limitations listed below.3

Conditions and Limitations

In this grant of exemption, Galaxy UAV Systems ( a subsidiary of Galaxy Aviation

, Inc.) is

hereafter referred to as the operator.

Failure to comply with any of the conditions and limitations of this grant of exemption will be grounds for the immediate suspension or rescission of this exemption.

1. Operations authorized by this grant of exemption are limited to the Universeye Penguin and DJI Inspire 1 when w eighing less than 55 pounds including payload. Proposed operations of any other aircraft will require a new petition or a petition to

amend this exemption

.

2. Operations for the purpose of closed

- set motion picture and television filming are

not permitted.

3. The UA may not be operated at a speed exceeding 87 knots (100 miles per hour). The exemption holder may use either groundspeed or calibrated airspeed to determine compliance with the 87 knot speed restriction. In no case will the UA be operated at airspeeds greater than the maximum UA operating airspeed recommended by the

aircraft manufacturer.

4. The UA must be operated at an altitude of no more than 400 feet above ground level (AGL). Altitude must be reported in feet AGL.

5. The UA must be operated wi thin visual line of sight (VLOS) of the PIC 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 or

U.S. driver’s license.

6. Al l operations must utilize a visual observer (VO). The UA must be operated within the visual line of sight (VLOS) of the PIC and VO at all times. The VO may be used to satisfy the VLOS requirement as long as the PIC always maintains VLOS capability. The V O and PIC must be able to communicate verbally at all times ;

e lectronic messaging or texting is not permitted during flight operations. The PIC must be designated before the flight and cannot transfer his or her designation for the duration of the flight. The PIC must ensure that the VO can perform the duties required of the VO.

7. This exemption and all documents needed to operate the UAS and conduct its operations in accordance with the conditions and limitations stated in this grant of exemption, are her einafter referred to as the operating documents. The operating

documents must be accessible during UAS operations and made available to the Administrator upon request. If a discrepancy exists between the conditions and4

limitations in this exemption and th e procedures outlined in the operating documents, the conditions and limitations herein take precedence and must be followed. Otherwise, the operator must follow the procedures as outlined in its operating documents. The operator may update or revise its operating documents. It is the operator’s responsibility to track such revisions and present updated and revised
documents to the Administrator or any law enforcement official upon request. The operator must also present updated and revised documents if it petitions for extension or amendment to this grant of exemption. If the operator determines that any update or revision would affect the basis upon which the FAA granted this exemption, then the operator must petition for an amendment to its grant of e xemption. The FA A’s UAS Integration Office (AFS− 80) may be contacted if questions arise regarding updates or revisions to the operating documents.

8. Any UAS that has undergone maintenance or alterations that affect the UAS operation or flight characteristi cs, e.g. replacement of a flight critical component, must undergo a functional test flight prior to conducting further operations under this exemption. Functional test flights may only be conducted by a PIC with a VO and must remain at

least 500 feet from other people. The functional test flight must be conducted in such a manner so as to not pose an undue hazard to persons and property.

9. The operator is responsible for maintaining and inspecting the UAS to ensure that it is in a condition for safe operat ion.

10. Prior to each flight, the PIC must conduct a pre

- flight inspection and determine the UAS is in a condition for safe flight. The pre

- flight inspection must account for all potential discrepancies, e.g. inoperable components, items, or equipment. If the inspection reveals a condition that affects the safe operation of the UAS, the aircraft is prohibited from operating until the necessary maintenance has been performed and the UAS is found to be in a condition for safe flight.

11. The operator must follow the UAS manufacturer’s maintenance, overhaul,
replacement, inspection, and life limit requirements for the aircraft and

aircraft components.

12. Each UAS operated under this exemption must comply with all manufacturer safety bulletins.

13. Under this grant of e xemption, a PIC must hold either an airline transport, commercial, private, recreational, or sport pilot certificate. The PIC must also hold a current FAA airman medical certificate or a valid U.S. driver’s license issued by a

state, the District of Col u m bia, Puerto Rico, a territory, a possessio n, or the Federal

government. The PIC must also meet the flight revi ew requirements specified in

14 CFR § 61.56 in an aircraft in which the PIC is rated on his or her pilot certificate.5

14. The operator may not permi t any PIC to operate unless the PIC demonstrates 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 perso ns, vessels, vehicles and structures. PIC qualification flight hours and currency must be logged in a manner consistent with

14 CFR § 61.51(b). Flights for the purposes of training the operator’s PICs and VOs
(traini ng, proficiency, and experience

- buildi ng) and determining the PIC’s ability to
safely operate the UAS in a manner consistent with how the UAS will be operated under this exemption are permitted under the terms of this exemption. However, training operations may only be conducted during dedica ted training sessions. During

traini ng, proficiency, and experience

- building flights, all persons not essential for flight operations are considered nonparticipants, and the PIC must operate the UA with appropriate distance from nonparticipants in accorda nce with 14 CFR § 91.119.

15. UAS operations may not be conducted during night, as defined in 14 CFR § 1.1. All operations must be conducted under visual meteorological conditions (VMC). Flights under special visual flight rules (SVFR) are not authorized.

16. The UA may not operate within 5 nautical miles of an airport reference point (ARP) as denoted in the current FAA Airport/Facility Directory (AFD) or for airports not denoted with an ARP, the center of the airport symbo l as denoted on the current

FAA

- publis hed aeronautical chart, unless a letter of agreement with that airport’s
management is obtained or otherwise permitted by a COA issued to the exemption holder. The letter of agreement with the airport management must be made available

to the Administrator or any law enforcement official upon request.

17. The UA may 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.

18. If the UAS loses communications or loses its GPS sign al, the UA must return to a

pre

- determined location within the pr ivate or controlled

- access property.

19. The PIC must abort the flight in the event of unpredicted obstacles or emergencies.

20. The PIC is prohibited from beginning a flight unless (considering wind and forecast weather conditions) there is enough available power for the UA to conduct the intended operation and to operate after that for at least five minutes or with the reserve power recommended by the manufacturer if greater.

21. Air T raffic Organization (ATO) Certificate of Waiver or Authorization (COA). All operations shall be cond ucted in accordance with an ATO

- issued COA. The exemption holder may apply for a new or amended COA if it intends to conduct operations that cannot be con ducted under the terms of the attached COA

.6

22. All aircraft operated in accordance with this exemption must be identified by serial number, registered in accordance with 14 CFR part 47, and have identification (N− Number) markings in accordance with 14 CFR pa rt 45, Subpart C. Markings must be as large as practicable.

23. Documents used by the operator to ensure the safe operation and flight of the UAS and any documents required under 14 CFR §§ 91.9 and 91.203 must be available to the

PIC at the Ground Control Sta tion of the UAS any time the aircraft is operating. These documents must be made available to the Administrator or any law enforcement official upon request.

24. The UA must remain clear and give way to all manned aviation operations and

activities at all tim es.

25. The UAS may not be operated by the PIC from any moving device or vehicle.

26. All Flight operations must be conducted at least 500 feet from all nonparticipating persons, vessels, vehicles, and structures unless:

a. Barriers or structures are present that sufficiently protect nonparticipating persons from the UA and/or debris in the event of an accident. The operator must ensure that nonparticipating persons remain under such protection. If a situation arises where nonparticipating persons leave such prote ction and are within 500 feet of the UA, flight operations must cease immediately in a manner ensuring the safety of nonparticipating persons ; and

b. The owner/controller of any vessels, vehicles or structures has granted permission for operating closer to th ose objects and the PIC has made a safety assessment of the risk of operating closer to those objects and determined that it does not present an undue hazard.

The PIC, VO, operator trainees or essential persons are not considered nonparticipating persons under this exemption.

27. All operations shall be conducted over private or control led

- access property with permission from the property owner/controller or authorized representative. Permission from property owner/controller or authorized representative will be obtained for each flight to be conducted.

28. Any incident, accident, or flight operation that transgresses the lateral or vertical boundaries of the operational area as defined by the applicable COA must be reported

to the FA A's UAS Integration Office (A FS− 80) within 24 hours. Accidents must be reported to the National Transportation Safety Board (NTSB) per instructions

contained on the NTSB Web site: www.ntsb.gov

.7

If this exemption permits operations for the purpose of closed

- set motion picture and television filming and production, the following additional conditions and limitations apply.

29. The operator must have a motion picture and television operations manual (MPTOM)

as documente d in this grant of exemption.

30. At least 3 days before aerial filming, the operator of the UAS affected by this exemption must submit a written Plan of Activities to the local Flight Standards District Office (FSDO) with jurisdiction over the a rea of propos ed filming. The 3

- day notification may be waived with the concurrence of the FSDO. The plan of activities must include at least the following:

a. Dates and times for all flights;

b. Name and phone number of the operator for the UAS aerial filming conducted

unde r this grant of exemption;

c. Name and phone number of th e person responsible for the on

- scene operation of

the UAS;

d. Make, model, and serial or N− Number of UAS to be used;

e. Name and certificate number of UAS PICs involved in the aerial filming;

f. A statement tha t the operator has obtained permission from property owners and/or local officials to conduct the filming production event; the list of those who gave permission must be made available to the inspector upon request;

g. Signature of exemption holder or represe ntative; and

h. A description of the flight activity, including maps or diagrams of any area, city, town, county, and/or state over which filming will be conducted and the altitudes essential to accomplish the operation.

31. Flight operations may be conducted closer than 500 feet from participating persons consenting to be involved and necessary for the filming production, as specified in the exemption holder’s MPTOM.

Unless otherwise specified in this grant of exemption, the UAS, the UAS PIC, and the UAS

oper ations must comply with all applicable parts of 14 CFR including, but not limited to,

parts 45, 47, 61, and 91.8

This exemption terminates on June 30, 2017 , unless sooner superseded or rescinded.

Sincerely,

/s/

John S. Duncan Director, Flight Standards Service

EnclosuresOriginal 01/2 1 /2015 Page 1

January 21 , 2015

U.S. Department of Transportation Docket Management System 1200 New Jersey Ave., SE Washington, DC 20590

Re: Exemption Petition under Section 333 of the FAA Modernization & Reform Act

, and

Title 14 Part 11 of the Code of Federal Regulations (CFR)

14 CFR Part 21.191
14 CFR Part 45.23, 45.29

14 CFR 61.113 , 61.133 14 CFR 91.9, 91.119

, 91.121

, 91.151

14 CFR 91 Subpart E ( 91 .40 5, 91.407, 91.409, 91.417)

Dear Sir or Madam:

Pursuant to Section 333 of the FAA Moderniza tion & Reform Act and 14 C.F.R. Part 11, Galaxy UAV Systems ( Galaxy)

, a subsidiary of Galaxy Aviation Inc., a Part 145 FAA Certified Repair Station (FAA Air Agency # 5GXR127C), hereby applies for the grant of exemption from certain Federal Aviation Regul ations for Universeye Penguin

Unmanned Aircraft ( Penguin) manufactured by Finwing Technology of China

. The requested exemption would support an application for a commercial Certifica te of Authorization (COA) to use the Penguin to support agriculture and aerial survey ing missions utilizing geographic referenced mapping system

. The Penguin consists of a lightweight ( 5 lb) battery operated fixed wing aircraft, a
computer based ground control station (GCS)

, onboard cameras and assoc iated

communications equipment.

The Penguin Unmanned Aircraft has previously demonstrated to have successfully met the safety and operational requirements resulting in approval of a COA by FAA authorizing a major university in Texas to operate it.

The aircraft carries an onbo ard geo graphic referenced camera that allows it to perform precision photogrammetry and crop scouting at the resolutions necessary for precision agriculture. This high

- resolution data can direct variable seeding rates as well as the precise application of fertilizer and chemicals reducing their use. This data helps farmers to maximize yields while reducing costs and impacts to the environment. By

appro ving the exemption, the UAS will create benefits to both agriculture and the

environment which are ultimate ly in the public interest.

The aircraft will be operated in the field wi th both a Pilot in Command and a Visual

Observer in accordance with FAA order 8900. 1 Volume 16 " Unmanned Aircraft Systems " with the following additional restrictions:Original 01/2 1 /2015 Page 2

- All operatio ns will occur in Class G airspace at no more than 400' AGL

- Operations will be operated over private property with the permission of the land

owner

- When necessary, applicable permits will be acquired from local authorities

- The aircraft will not be operated over urban or populated areas

- The aircraft will not be operated at air shows or over an open

- air assembly of people

- The aircraft will not be operated over heavily trafficked roads

- The aircraft will not be operated within 5 NM of an airport or heliport

- Operations will be limited to day, visual meteorological conditions

- Aircraft will remain within Visual Line of Sight at no greater than 1/2 NM of the PIC at

all time

- While the aircraft is airborne, the VO will be positioned within voice d istance to the PIC

- When necessary and applicable, Galaxy will file a NOTAM providing radial/DME, radius, and a date/time group for each operation

- The PIC and VO will meet the requirements outlined in FAA Order 8900. 1 Volume 16

“Airmen Certification”.

Additionally, PIC and VO will complete initial training course of maintenance

instruction s . Due to the simplicity of the system, we do not anticipate the need for a supplemental pilot.

F or certain complex operations, Galaxy may assign one or two sensor/ software
operators ne ar the GCS to process aerial maps utilizing separate computers and photogrammetry software

. We submit that the combination of ;

- Our demonstrated knowledge of Aviation Safety and FARs via our parent company ( Galaxy Aviation Inc. FA A Part 145 CRS # 5GXR127C ),

- Penguin UAV’s lig ht weight and historically demonstrated safe operation and approval

of COA

- fully qualified flight crew

- restricted operation s under the guidelines established in FAA Order 8900. 1

, the FAA can have co nfidence that Galaxy’s UAS the operation s will have an equivalent or greater level of safety of manned aircraft performing the same mission. We are prepared to modify or amend any part of this request to satisfy the need for an equivalent level of safety. Additional documents supporting this petition will be submitted following this request. We look forward to working with your office. Please contact us at any time if you require

additional information or clarification.

Respectfully,

Bryan Archer

President Galaxy UAV Systems (a subsidiary of Galaxy Aviation Inc.) 6215 Kirby Lane

, Frisco, Texas 75035

Tel : 469

- 766

- 0420 Email: bryan.archer@galaxyuav.comOriginal 01/2 1 /2015 Page 3 

## TABLE OF CONTENTS

NAME, ADDRESS CONTACT INFORMATION OF PETITIONER .......................Page 4

THE SPECIFIC SECTIONS OF 14 C.F.R. FROM WHICH GALAXY

SEEKS EXEMPTION.

.............................................................................. ....................Page 4

THE EXTENT OF RELIEF GALAXY SEEK S AND THE REASON S

GALAXY SEEKS THE RELIEF

.......................................... ........................... . Pages 4 to 8

THE REASONS WHY GRANTING GALAXY’S REQUEST WOULD

BE IN THE PUBLIC INTEREST ..................................................

........................... . Page 9

THE REASONS WHY GRANTING GALAXY THE EXEMPTION WOULD

NOT ADVERSELY AFFECT SAFETY .......................................

.............................. Page 10

SUMMARY THAT CAN BE PUBLISHED IN THE FEDERAL REGISTER..........

. Page 11

ANY ADDITIONAL INFORMATION, VIEWS, OR ARGUMENTS

AVAILABLE TO SUPPORT GALAXY’S R EQUEST...

.............. .................... Page s 12 to 14

ACR ONYMS...............................................................

......... Page s 15 to 16Original 01/2 1 /2015 Page 4

NAME, ADDRESS AND CONTACT INFORMATION OF PETITIONER

Galaxy UAV Systems Attn: Bryan Archer 6215 Kirby Lane
Frisco, Texas 75035

Tel : 469

- 766

- 0420

Email: bryan.archer@galaxyuav.com

THE SPECIFIC SECTIONS OF 1 4 CFR TO BE RELIEVED FROM

14 CFR Part 21.191 14 CFR Part 45.23, 45.29
14 CFR 61.113, 61.133
14 CFR 91.9, 91.119

, 91.121

, 91.151

14 CFR 91 Subpart E ( 91 .405, 91.407, 91.409, 91.417)

THE EXTENT OF RELIEF GALAXY SEEKS AND THE REASONS GALAXY SEEKS

THE RELIEF

14CFR Part 21.191 Experimental Certificates

This regulation establishes the procedures for the issuance of an airworthiness certificate. While the FAA continues to work to develop airworthiness standards for UAS, we request an experimental certificate be issued for the Penguin under either or both of the following provisions:

21.191 Experimental certificates.

Experimental certificates are issued for the following purposes:

(a) Research and development. Testing new aircraft design concepts, new aircraft equipment,

new airc raft installations, new aircraft operating techniques, or new uses for aircraft.

(b) Showing compliance with regulations. Conducting flight tests and other operations to show
compliance with the airworthiness regulations including flights to show compliance for issuance of type
and supplemental type certificates, flights to substantiate major design changes, and flights to show
compliance with the function an d reliability requirements of the regulations.

Since the experimental certificate can be used for commercial purposes such as market surveys, sales demonstrations, and customer crew training, we would expect that an experimental certificate would permit our commercial purpose as well.

The aircraft will not carry persons or property, will not carry fuel, and will only fly under strict operational requirements. Combined with the fact that the aircraft weighs only 5 pounds and is constructed primarily out o f foam, we propose that the Penguin UA will be at least as safe, if not safer, than a conventionally certificated aircraft performing the

same mission.

If an experimental airworthiness certificate is not appropriate for this application, then
we request a n exemption of 14 CFR Part 21, Subpart H, and the requirement for anOriginal 01/2 1 /2015 Page 5

airworthiness certificate in general, citing the equivalent level of safety outlined in the previous paragraph

.

14 CFR Part 45.23 Display of Marks & 45.29 Size of Marks

These regulatio ns provide that each aircraft must display "N" and the aircraft's registration number in letters at least 3 inches high. Additionally, the aircraft must display the word "EXPERIMENTAL" in letters at least 2 inches high near the entrance to the cabin, c ockp it, or pilot station. The 5 pound Penguin does not have an entrance in which the word "EXPERIMENTAL" can be placed, and may not have a registration number assigned to it by the FAA.

We propose to achieve an equivalent level of safety by including the wor d "EXPERIMENTAL" on the top of the aircraft, where the PIC, VO and others in the vicinity of the aircraft while it is preparing for launch will be able to see the designation. If FAA assigns a registration number for the UA, we request that we will display registration “N” number on the aircraft by using proportionately sized letters for the Penguin’s size. Additionally, we feel that the permanent placard discussed in the previous paragraph will provide the aircraft's registration information should it be found on the ground. Finally, we will display at the ground station a high contrast flag or banner that contains the words "Unmanned Aircraft Ground Station" in letters 3 inches high or greater. Since the aircraft will operate within 1/2 mile of the ground station, the banner should be visible to anyone that observes the aircraft and chooses to investigate its point of origin.

14 CFR 61.113 Private pilot privileges and limitations: Pilot in command and 61.133 Commercial pilot privileges and limitations

Part 61.133 provides;

“ A person who holds a commercial pilot certificate may act as pilot in command of an aircraft

— (ii) For compensation or hire, provided the person is qualified in accordance with this part and with the applicable parts of this chap ter that apply to the operation.”

Since there are currently no means available for the pilot of a UAS to gain the experience in an equivalent category and class in order to apply for a commercial pilot's license, we propose to generate an equivalent level of safety by requiring our pilots meet the qualification described by the order 8900.1 volume 16 chapter 4.

Our proposed operations meet the requirements of 8900.1 volume 16 Chapter 4

Section 1 Airman Certification (16

- 4

- 1

- 3

- B) subpart (5). It states ; "Operations without a pilot certificate may be allowed when all of the following conditions are met:" ( conditions “a” through “g” )

Condition (a) states that the PIC is required to complete "FAA private pilot ground instruction" and pass "the FAA Pri vate Pilot written examination or FAA

- recognized equivalents".Original 01/2 1 /2015 Page 6

Since our operations will meet all the conditions listed , we propose to comply in accordance with the FAA order 8900.1 ( 16

- 4

- 1

- 3

- B

- 5 : “a” through “g” ). We believe and request that equivalent safety can be achieved by having our pilots complete

,

(1) FAA private pilot ground instruction

, and pass the FAA p rivate p ilot written

examination

, and (2) hold a Student Pilot Certificate along with current Third Class medical certificate,

and complete log ging minimum 5 hours of dual flight instruction time with Certified Flight Instructor.

If relief from part 61.133 by means of FAA Order (16

- 4

- 1

- 3

- B

- 5 ) is not appropriate, we subsequently request the exemption from 61.113. Part 61.113 provides that no person that holds a private pilot certificate may act as pilot in command of an aircraft for compensation or hire. Subparagraph (b) allows a privat e pilot to act as pilot in command of an aircraft in connection with any business or employment if;

(1) flight is only incidental to that business or employment; and

(2) The aircraft does not carry passengers or property for compensation or hire

.

Since the aircraft cannot carry passengers or property, we request to be relieved from this regulation if our pilots at minimum, (1) hold at least a current private pilot certificate and, (2) hold a current third class medical certificate. By meeting conditions (1) and (2), we believe that equivalent level of safety can be achieved by complying with 61.113 Subparagraph (b) even though the intent of this application is to conduct a business.

14 CFR 91.9 Civil aircraft flight manual, marking, and placard requirements.

This regulation provides that no person may operate an aircraft unless a current, approved flight manual is in the aircraft. We assume that the intent of this requirement is to ensure that flight manual information is available to the aircrew while operati ng the aircraft. We request an exemption to this requirement since the aircraft is not only too small to carry documentation, the documentation would not be available to the crew.

To obtain an equivalent level of safety and meet the intent of 91.9, we pro pose that a current, approved Airplane Flight Manual must be available to the crew at the ground station anytime the a ircraft is in, or preparing for flight.Original 01/2 1 /2015 Page 7

14 CFR 91.119 Minimum safe altitudes: General

.

Th is regulation provides that over sparsely populated areas the aircraft cannot be operated closer than 500 feet to any person, vessel, vehicle, or structure. Since the aircraft will be operating at a maximum of 400 feet AGL, we cannot comply with this require ment.

To provide an equivalent level of safety we will only fly over private property with the permission of the land owner. The land owner will be briefed of the expected route of flight and the associated risks to persons and property on the ground. We maintain that

due to the small size of the Penguin , the hazard to persons, vessels, vehicles, and structures is not comparable to manned aircraft and should be considered in granting the exemption. The aircraft will not be operated over congested areas or over any open air assembly of persons. The aircraft will be operated at an altitude allowing, if a mechanical system fails, an emergency landing without undue hazard to per sons or property on the

surface.

14 CFR 9 1. 121 Altimeter Settings

The regulation provides that aircraft shall maintain cruising altitudes by reference to an altimeter setting available within 100 nautical miles of the aircraft. The Penguin aircraft will fly below 400 feet AGL and will not need to maintain hemispherical cruising altitudes in order to de

- conflict with other aircraft. As such, an appropriate altimeter measurement presented to the pilot should be Above Ground Level and should be based on the barometric pressure at the point of launch.

To provide an equival ent level of safety, the UAS's AGL altimeter will be set to zero on the ground prior to every flight. Since the aircraft will fly no more than 60 minutes, even rapid changes in barometric pressure will have limited effect on the safety of the flight

.

14 CFR 91.1 51 Fuel requirements for flight in VFR conditions.

The regulation provides that no person may begin a flight in an airplane under day

VFR conditions unless there is enough fuel to fly to the first point of intended landing and to fly after t hat for at least 30 minutes. We feel the intention of this paragraph is to provide a reserve of energy as a safety buffer for go

- arounds and other delays to landing.

The Penguin UAS is battery operated and the maximum duration of flight with full payload, from a single battery charge is 60 minutes. Since the aircraft will never fly

more than 1/2 mile from the point of intended landing, a full battery charge at launch and landing the aircraft with 10% charge (6 minutes) remaining will ensure that we

meet the intent of reserve energy requirement of this paragraph. We believe that equivalent level of safety is achieved because from anywhere within 1/2

mile distance to launch/landing point during operation, 10 % charge ( 6 minutes) is mor e than enough for a few go

- arounds if necessary.Original 01/2 1 /2015 Page 8

14 CFR 91 Subpart E ( 91. 405, 91.407, 91.409, 91.417 ) Maintenance, Preventive Maintenance, and Alterations

The regulation provides that the operator is primarily responsible for maintaining the aircraft in an airworthy condition, including compliance with part 39 and 43. Paragraphs

91.407 and 91.409 require that the aircraft be "approved for return to service by a person authorized under 43.7" after maintenance and inspection. It is our intention that the PIC, VO or authorized personnel to perform maintenance and inspection of the

aircraft and "be authorized to approve the aircraft for return to service."

Due to the fact that our parent company Galaxy Aviation Inc. is a part 145 FAA certified Repair Station ( # 5GXR127C ), our core expertise is aviation maintenance. The resources from the Repair St ation regarding safety training, quality control, de veloping

maintenance procedures and other applicable resources , such as a certificated repairman, are made available to our UAS operation s

.

Galaxy requests that exemptions to the regulations under condi tions below;

(1) Galaxy will develop and maintain Penguin UAS maintenance instructions by utilizing a combination of provided Finwing Technology’s User Manual and FAA equivalent maintenance techniques and procedures

(2) Galaxy will designate, tra in, and document the personnel who will be authorized to perform Inspection, Maintenance and Alterations by means of above stated

maintenance instructions . Such designated personnel may include PIC, VO or FAA equivalent trained persons, such as a FAA C ertificated Repairman

(3) To ensure equivalent level of safety, PIC will inspect the UA before each flight looking for any structural or mechanical malfunctions, and document discrepancies

Due to the small size, light weight and simplicity of the Pe nguin UAS, we believe that the equivalent safety will be achieved by permitting any of the PIC , VO or FAA equivalent trained personnel, to perform maintenance

, inspection and alterations of the

aircraft and " be authorized to approve the aircraft for r eturn to service. "Original 01/2 1 /2015 Page 9

THE REASONS WHY GRANTING GALAXY’S REQUEST WOULD BE IN THE PUBLIC

INTEREST

We believe that granting our exemption request from,

14 CFR Part 21.191
14 CFR Part 45.23, 45.29

14 CFR 61.113 , 61.133 14 CFR 91.9, 91.119

, 91.121

, 91.151

14 CFR 91 Subpart E ( 91 .405, 91.407, 91.409, 91.417) , is in the public’s interest and will benefit the public as a whole for the following reasons.

1

- According to research done by US Department of Agriculture, Precision Agriculture in crop pr oduction helps farmers yield more crops and offers less impact on environment by applying chemicals more efficiently. Galaxy’s Penguin UAS offers as one of the tools to support P recision A griculture. Penguin UAS carries an onboard geo

- referenced camera sys tem that provides high

- resolution data to direct variable seeding rates as well as the precise application of fertilizer and chemicals, reducing their use. This data helps farmers maximize yields while reducing costs and impacts to the environment, which i s in the public interest.

2

- Galaxy’s UAS operation s will contribute to a po sitive aggregate e conomic

i mpact resulting in creation of jobs both direct and indirectly. Economic Research estimates that the UAS market will grow from $6 billion to $ 94 billion

over the next decade resulting in a new workforce development

. Because Galaxy’s operations will create new jobs such as pilots, flight operation staff, and administrative supporting staff, it will directly impact positive economic outcome, hence granting Galaxy’s petition will benefit the public as a whole.

3

- Congress has already proclaimed that it is in the public’s interest to integrate Commercially flown UAS (s) into the national airspace system, hence the passing

of the FAA Modernization and Reform Act of 2012. Granting Galaxy’s petition furthers the public ’s interest as a demonstrated progression of integrating Unmanned Aircraft Systems into National Air Space

, thus it will benefit public as a whole

.Original 01/2 1 /2015 Page 10

THE REASONS WHY GRANTING GALAXY THE EXEMPTION WOULD

NOT ADVERSELY AFFECT SAFETY

Galaxy believe s that the grant of exemption from,

14 CFR Part 21.191
14 CFR Part 45.23, 45.29

14 CFR 61.113 , 61.133 14 CFR 91.9, 91.119

, 91.121

, 91.151

14 CFR 91 Subpart E ( 91 .40 5, 91.407, 91.409, 91.417), will not adversely affect safety by a combination of the reasons listed below.

(a) We have stated in the above section “ THE EXTENT OF RELIEF GALAXY

SEEKS AND THE REASONS GALAXY SEEKS THE RELIEF ” on pages 4 to 8 by describing how we intend to mitigate risk and accomplish FAA equivalent and acceptable level of safety for each 14 CFR part.

(b) As a result of Penguin unmanned aircraft’s size, weight, speed, operational capability, proximity to airports and populated areas, operation within visual line of sight, plus a combi nation of operational conditions and limitations, we believe that granting Galaxy’s exemption request will not adversely affect safety.

(c) Our parent company has demonstrated, and been certified by FAA to comply

with the Part 145 FARs. Because enjoying t he available resources from our parent company (Galaxy

Aviation Inc. FAA Part 145 CRS) provides a unique advantage to ensure aviation safety, hence we believe that granting Galaxy will not adversely affect safety.

(d) Galaxy will develop, train and document the completion of “Human Factors “

T raining to the PIC, VO and authorized maintenance personnel. Research data suggests that 80% of all Aviation Accidents are caused by “Human Factors”. By requiring our flight crew and maintenance personnel to comple te “ Human Factors T raining ” , Galaxy will further mitigate safety risk, thus the grant will not adversely affect safety.Original 01/2 1 /2015 Page 11

SUMMARY THAT CAN BE PUBLISHED IN THE FEDERAL REGISTER

Department of Transportation

Federal Aviation Administration

Petitioner: Galaxy UAV Systems (Subsidiary of Galaxy Aviation Inc.)

Petition of exemption from section of

14 CFR Part 21.191
14 CFR Part 45.23, 45.29

14 CFR 61.113 , 61.133 14 CFR 91.9, 91.119

, 91.121

, 91.151

14 CFR 91 Subpart E ( 91 .405, 91.407, 91.4 09, 91.417)

Description of relief sought;

Galaxy UAV Systems se eks an exemption for commercial operati on of the Penguin

u nmanned aircraft manufactured by Finwing Technology of China. The Penguin unmanned aircraft system has an onboard georeferenced mapping camera system capable of acquiring high resolution data. Proposed operations will offer precise aerial surveillance to help farming, agriculture,

and other commercial industries.Original 01/2 1 /2015 Page 12

ANY ADDITIONAL INFORMATION, VIEWS, OR ARGUMENTS AVAILABLE TO

SUPPORT GALAXY’S REQUEST

Penguin Unmanned Aircraft System consists;

1

- Penguin Unmanned Aircraft made by Finwing Technology of China

2

- Pixhawk Autopilot Controller made by 3D Robotics of California , and other onboard equipment such a s receivers, batteries, transmitters, antennas

3

- Onboard Mapping Payload (a) Downward facing high resolution c amera

(b) Optional front facing camera to aid mission s

4

- Ground Control Station with a computer and other related communication

equipment including

(a) Manual Control link utilizing a transmitter on 2.4 Gigahertz radio frequency

(b) Data Control link utilizing GPS and Telemetry radios on 915 Megahertz radio

frequency

(FCC license not required for above radio frequencies )

5

- Qualified flight crew an d optional one or two sensor/ software operators



### 6

- Required operation manuals which are located near ground control station ( the operation manuals will be submitted following this petition request )



### Penguin UAS Specifications

Wing Span 67.7 inches Length 48.5 inches

MTOW 5 pounds (Maximum Takeoff Weight) Flight Time 30 to 60 minutes Speed Range 15 k not s to 50 k no ts Manual Control Frequency 2.4 G iga hertz Manual Control Range Line of sight 1.5 mile Data Control Link Frequency 915 M egahertz

Data Control Link Range Line of sight 2 mile Launch Options Hand Launch or Conventional Runway

Land ing Options Belly Land or Conventional RunwayOriginal 01/2 1 /2015 Page 13 

## Penguin Unmanned AircraftOriginal 01/2 1 /2015 Page 14



## Sample Mapping Mission Flight Patterns

N o Privacy Issues

Galaxy’s proposed operations will create no privacy issues because the Penguin UAS will be operating in rural areas within the boundaries of private property with the land owner’s permission. Galaxy will also obtain any permits or authorizations from local authorities when

necessary.Original 01/2 1 /2015 Page 15 ACRONYMS

AGL Above Ground Level

ALoS Acceptable Level of Safety

AMOC Alternative Method of Compliance

ASI Aviation Safety Inspector

ATC Air Traffic Control

ATCAA Air Traffic Control Assigned Airspace

ATS Air Traffic Service

AVS Aviation Safety

CFR Code of Federal Regulations

COA Certificate of Waiver or Authorization

CRM Crew Resource Management

CS Control Station

CRS Certified Repair Station

DCP Divert/Contingency Point

DHS Department of Homeland Security

DME Distance Measuring Equipment

DOD Department of Defense

DSA Detect, Sense, and Avoid System

FAA Federal Aviation Administration

FCC Federal Communications Commission

FA Rs F ederal Aviation Regulations

FIR Flight Information Region

FL Flight Level

FSIMS Flight Standards Information Management System

FTP Flight Termination Point

FTS Flight Termination System
Galaxy Galaxy UAV Systems
Galaxy A subsidiary of Galaxy Aviation Inc.

G Hz Gigahertz

GCS G round Control Station

MHz Megahertz

MTOW M aximum Takeoff Weight

NAS National Airspace SystemOriginal 01/2 1 /2015 Page 16

NM Nautical Mile

N O TA M N otice To A irman

OPA Optionally Piloted Aircraft

PIC Pilot in Command

P enguin P enguin Unmanned Aircraft System
Penguin Penguin Unmanned Aircraft

R&D Research and Development

RF Radio Frequency

RM Risk Management

RNAV Area Navigation

RTB Return to Base

RVSM Reduced Vertical Separation Minimum

TAS Traffic Advisory Systems

TC Type Certificate

UA Unmanned Aircraft

UAS Unmanned Aircraft System (s)

UAV Unmanned Aerial Vehicle

VFR Visual Flight Rules

VMC Visual Meteorological Conditions

VO Visual Observer