### August 5

, 2015

Exemption No. 12353 Regulatory Docket No. FAA

– 20 15

– 1071

Mr. Benjamin Z. Smith

UAV Aviation Services Inc.

828 W. Trindle R oad Mechanicsburg, PA 17055

Dear Mr. Smith :

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 April 8, 2015 , you petitioned the Federal Aviation Administration (FAA) on

behalf of UAV Aviation Services Inc. (UAS Inc.) ( hereinafter petitioner o r operator ) for an exemption . The petitioner requested to operate an unmanned ai rcraft system (UAS) to

conduct precision aerial surveys, including in agriculture as well as flight demonstrations, tower inspections, surface mining, roof inspections, teleco mmunications and utility structure inspection, construction, maintenance services, flood control, first responders, bridge and dam inspections, special events, and structural assessments

.

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 petition 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

. However, the FAA

received o n e comment made to the docket.

Airworthiness Certification

The UAS proposed by the petitioner are the Hawkeye Mk

- III, MD4

- 1000 and MD4

- 3000

.

### 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

, C ertification procedures for products and parts, Subpart H

— Airworthiness Certificates , and any associated noise certification and testing requirements of part 36, is

not necessary.

The Basis f

or Our Decision

You have requested to use a UAS for aerial data collection 1



### . 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 ac hieved 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 go od cause to find that the UAS operation enabled by this exemption is in the 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 Exemp tion Nos. 11062, 11109, 11112, and 11213 ;

 The reasons stated by the FAA for 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 interest. Therefore, pursuant to the authority contained in 49 U.S.C. 106(f), 40113, and 44701, delegated to me by the Administrator, UAV Aviation Services Inc. (UAS 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 peti tioner to operate a UAS to perform

1 

### Aerial data collection includes any remote sensing and measuring by an instrument(s) aboard the UA. Examples include imagery (photography, video, infrared, etc.), electronic measurement (precision surveying, RF analysis, etc.), chemical measurement (part iculate measurement, etc.), or any other gathering of data by

instruments aboard the UA.

### 3

aerial data collection and/or closed set motion picture and filming

. This exemption is subject

to the conditions and limitations listed below.

Conditions and Limitations

In this grant of exemption, UAV Aviation Services Inc. (UAS 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 Hawkeye Mk

- III,

MD4

- 1000 and MD4

- 3000 when weighing 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. Operati ons 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 within 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 le nses, as specified on the PIC’s FAA

- issued airman medical certificate or
U.S. driver’s license.

6. All 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 VO 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 de signated 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

op erations in accordance with the conditions and limitations stated in this grant of

### 4

exemption, are hereinafter 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 and limitations in this exemption and the procedures outlined in the operating documents, the conditions and limitations herein take precedence and must be followed. Otherwise, the operator mus t 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 l aw 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 w hich the FAA granted this exemption, then the operator must petition for an amendment to its grant of exemption. 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 characteristics, 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 i s responsible for maintaining and inspecting the UAS to ensure that it is in a condition for safe operation.

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 inspec tion 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 maintenanc e 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 exemption, 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 mbia, Puerto Rico, a territory, a possession, or the Federal

### 5

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.

14. The operator may not permit 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 persons, vessels, vehicles and structures. PIC qualification flight hours and currency must be logged in a manner consistent with

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

- building) 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 perm itted under the terms of this exemption. However, training operations may only be conducted during dedicated 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 accordance 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 visua l 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 f or airports not denoted with an ARP, the center of the airport symbo l as denoted on the current

FAA

- published aeronautical chart, unless a letter of agreement with that airport’s management is obtained or otherwise permitted by a COA issued to the exemptio n 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 o r 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 e vent 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 fo r at least five minutes or with the reserve power recommended by the manufacturer if greater.

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

- issued COA. The

### 6

exempt ion holder may apply for a new or amended COA if it intends to conduct operations that cannot be conducted under the terms of the attached COA

.

22. All aircraft operated in accordance with this exemption must be identified by serial number, registered in acco rdance with 14 CFR part 47, and have identification (N− Number) markings in accordance with 14 CFR part 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 Station of the UAS any time the aircraft is operating. These documents must be made available to the Administrator or any law enforcement official upon r equest.

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

activities at all times.

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 protection 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 those 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 un due 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/control ler 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 (AFS− 80) within 24 hours. Accidents must be

### 7

reported to the National Transportation Safety Board (NTSB) per instructions

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

.

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 documented 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 proposed 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. Nam e and phone number of the operator for the UAS aerial filming conducted under 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 ce rtificate number of UAS PICs involved in the aerial filming;

f. A statement that 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 avail able to the inspector upon request;

g. Signature of exemption holder or representative; 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

e ssential 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 sp ecified in this grant of exemption, the UAS, the UAS PIC, and the UAS operations 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 August 31, 2017 , unless sooner superse ded or rescinded.

Sincerely,

/ s/

John S. Duncan Director, Flight Standards Service

EnclosuresUAV Aviation Services Inc. (UAS Inc.) Benjamin Z. Smith

828 W. Trindle Rd. Mechanicsburg, Pa 17055

717.278.7502 benjamin.smith@uavaviationservices.com

08 April 2015

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

RE: Exemption Request Section 333 of the FAA Reform Act and Part 11 of the Federal Aviation Regulations

Dear Sir or Madam:

Pursuant to Section 333 of the FAA Modernization and Re form Act of 2012 (the “Reform Act”) and 14 C.F.R. Part 11, UAV Aviation Services Inc. (“UAS, Inc.”), the operator of Small Unmanned Aircraft Systems (“sUASs”), including the Hawkeye Mk

- III and MD4

- 1000, seeks an exemption

from the FederalAviation Regulatio ns (“FARs”) listed below and discussed in Appendix A. 1 UAS, Inc. seeks exemption from the listed FARs to allow its use of the Hawkeye Mk

- III and MD4

- 1000 in commercial operations, such as precision aerial surveys, including in agriculture as well as flight demonstrations, tower inspections, surface mining, roof inspections, Telecommunicaitons and utility structure inspection, construction, maintenance services, flood control, first responders, bridge inspections, dam inspections, special events, closed

- set filming and structural assessments, so long as such operations are conducted within and under the conditions outlined herein or as established by the FAA in an exemption granted under either Section 333 or Section

49 U.S.C. § 44701(f). 2

As discussed below, at pages 4

- 8, UAS, Inc. is willing to abide by conditions the FAA has required in issuing recent Section 333 exemptions, specifically Exemptions 11109 (Clayco, Inc.)

and 11110 (Trimble Navigation Ltd. ), 11215 (B.E.V. Roof Inspections), 11171 (Asymmetric

T echnologies), 11230 (Montico Inc.) and 11241 (Phoenix Air Unmanned). This agreement on UAS, Inc.’s part and the strong similarity of its operations to those approved in Exemptions 11109,11110, 11215,11171, 11230 and 11241 should give the FAA a basis for pr ompt consideration and processing of this request

.

UAS, Inc. is a information delivery company. It proposes to use a small, lightweight UAV

– the Hawkeye Mk

- III and the MD4

- 1000 and proprietary cloud

- based software to collect, process, and analyze aerial data principally for purposes of precision agriculture, precision surveying as well as flight demonstrations, tower inspections, sur face mining, roof inspections, t elecommunications and utility structure inspection, construction, maintenance services, floo d control, first responders, bridge inspections, dam inspections, special events, closed

- set filming and structural assessments. In doing so, UAS, Inc. would occupy a brand new space in a transformative industry by providing high quality and actionable inf ormation to users. Indeed, use of the Hawkeye Mk

- III and MD4

- 1000, and would contribute to various social goods, from environmental protection to improved crop yields, safety inspections, property damage assessment and search and rescue. In providing this service, UAS, Inc. would empower crop

1 See Pub. Law 112

- 95, 126 Stat. 11, § 333 (2012).

2 UAS, Inc. relies upon the following exemptions where specific reference to an exemption is not provided: Exempti ons 11062 through 11067, 11080, 11109 through 11112U.S. Department of Transportation 08 April 2015 Page Two

researchers and farmers to make better management decisions through software that identifies disease and insects, nutrient deficiencies, and materials for increasing yields with fewer

resources. E xpedite damage assessments and infrastructure maintenance in support of a variety of industries, including but not limited to, telecommunications, mining companies, local and federal emergency responders and companies that require arial survey of property( s).

The use of sUASs on a construction site can significantly reduce the risk to workers of falls while inspecting, surveying, or monitoring site progress. sUASs can inspect, photograph, and collect data on hard to get to areas that otherwise would requir e worker inspection. Falls are the leading source of workplace fatality and injury on construction sites, and reducing falls through sUAS use for site imaging could save workers lives.

The petitioner states that, performing infrastructure inspections with unmanned systems is a benefit to the public for the following reasons: 1) the operation significantly improves safety and reduces risk by alleviating human exposure to the dangers associated with aerial survey and inspection; 2) it will not be necessary t o close a lane on the bridge while the inspection is being conducted; this significantly improves traffic flow and safety; 3) the UAS being operated are very small and contain no flammable fuel and in the remote event of an accident, will cause no damage o r injuries; and 4) given that the cost to conduct an inspection using a UAS is considerably less than available alternatives, this important task can be accomplished which will benefit everyone utilizing this infrastructure.

Operations under the exemption will be subject to strict operating requirements and conditions to ensure at least an equivalent level of safety to currently aut horized operations using manned aircraft and under conditions as may be modified by the FAA as required by Section333.

As desc ribed more fully below, the requested exemption would authorize commercial operations of aerial surveys using the Hawkeye Mk

- IIIand MD4

- 1000, which with a maximum take

- off weight
of less than 10 lbs. is small in size. The Hawkeye Mk

- III and MD4

- 1000, will be operated under controlled conditions at low altitude in airspace that is limited in scope, as described more fully herein; it will have automated control features, as described herein. The Hawkeye Mk

- III and
MD4

- 1000 also will be operated by an individ ual possessing a minimum of a private pilot certificate. Finally, the airspace in which the UAS will operate will be disclosed to the FAA in

advance.

UAS, Inc. respectfully submits that because these small, unmanned aerial vehicles

– the Hawkeye Mk

- III, a nd MD4

- 1000

– will be used in lieu of comparatively hazardous operations now conducted with fixed wing and rotary conventional aircraft, the FAA can have confidence that the operations will achieve at least an equivalent level or greater level of safety. Ap proval of this exemption would thereby enhance safety and fulfill the Secretary of Transportation’s (the FAA Administrator’s) responsibilities under Section333(c) of the Reform Act to “establish requirements for the safe operation of such aircraft systems in the national airspace system.”

The name and address of the applicant are:

UAS, Inc

. Attn: Benjamin Z. Smith, CFII, MEI, AO, PO, MC (Deployed Theater Tactical Airspace Pilot, Afghanistan) 827 West Trindle Road Mechanicsburg, PA 17055 Office: 717

- 691

- 8882,

Mobile: 717

- 278

- 7502

Email: benjamin.smith@uavaviationservices.comU.S. Department of Transportation 08 April 2015 Page Three

The regulations from which the exemption is requested are as follows:

14 C.F.R. § 61.113(a) & (b); 14 C.F.R. § 61.133(a) ; 14 C.F. R. § 91.7(a);

14 C.F.R. § 91.119(c) ; 14 C.F.R. § 91.121; 14 C.F.R. § 91.151(a);
14 C.F.R. § 91.405(a);
14 C.F.R. § 91.407(a)(1)
14 C.F.R. § 91.409(a)(1)(2) 14 C.F.R. § 91.417(a) & (b)

Appendix A discusses each rule listed above and explains why exemptions pursuant to t he proposal set forth in this letter are appropriate, provide an equivalent level of safety, and are in the public interest. Appendix B provides the requisite Federal Register summary.

THE APPLICABLE LEGAL STANDARD UNDER SECTION 333

UAS, Inc. submits tha t grant of this exemption application for use of the Hawkeye Mk

- III and

MD4

- 1000 in precision aerial surveys will advance the Congressional mandate in Section 333 of the Reform Act to accelerate the introduction of UASs into the national airspace system (“ NAS”) if it can be accomplished safely. This law directs the Secretary of Transportation to consider whether certain UASs may operate safely in the NAS before completion of the rulemaking required under Section 332 of the Reform Act. In making this determi nation, the Secretary is required to determine which types of UASs do not create a hazard to users of the NAS or the public or pose a threat to national security in light of the following:

* The UAS’s size, weight, speed, and operational capability;

* Operation of the UAS in close proximity to airports and populated areas; and

* Operation of the UAS within visual line of sight of the operator. Reform Act § 333(a)(1). If the Secretary determines that such vehicles “may operate safely in the

nati onal airspace system, the Secretary shall establish requirements for the safe operation of such aircraft in the national airspace system.” Id. § 333(c) (emphasis added). 3 The Federal Aviation Act expressly grants the FAA the authority to issue exemptions. This statutory authority, by its terms, includes exempting civil aircraft, as the term is defined under § 40101 of the Act, from the requirement that all civil aircraft must have a current airworthiness certificate and those regulations requiring commerci al pilots to operate aircraft in commercial service: The Administrator may grant an exemption from a requirement of a regulation prescribed under subsection (a) or (b) of this section or any
of sections 44702

- 44716 of this title if the Administrator finds the exemption is in the

public interest. 3 Applica nt submits that this provision places a duty on the Administrator to not only process applications for exemptions under Section 333, but for the Administrator, if he deems the conditions proposed herein require modification to allow approval, to supply con ditions for the safe operation of the UAS. UAS, Inc. welcomes the opportunity to consult with FAA staff in order to address any issues or concerns that this proposal may raise that they believe may require modification.U.S. Department of Transporta tion 08 April 2015 Page Four

49 U.S.C. § 44701(f). See also 49 U.S.C. § 44711(a); 49 U.S.C. § 44704; 14 C.F.R. § 91.203(a)(1).

The grant of the requested exemption is in the public interest based on the clear direction in Section 333 of the Reform Act; t he additional authority in the Federal Aviation Act, as amended; the strong equivalent level of safety surrounding the proposed operations; and the significant public benefit, including enhanced safety and cost savings associated with transitioning to UASs for aerial surveying. Accordingly, the applicant respectfully requests that the FAA grant the

requested exemption without delay. 4

AIRCRAFT AND EQUIVALENT LEVEL OF SAFETY

The applicant proposes that the exemption requested herein apply to civil aircraft that have the characteristics and that operate with the limitations listed herein. These limitations provide for at least an equivalent or even higher level of safety to operations under the current regulatory structure because the proposed operations repr esent a safety enhancement to operations that would be conducted with conventional aircraft. These conditions are drawn from Exemptions 11062 through 11067, 11080, 11109, 11110,11215,11171, 11230 and 11241.

These limitations and conditions to which UAS, I nc. (or “operator”) agrees to be bound when conducting commercial operations under an FAA issued exemption include:

1. Operations of the Hawkeye Mk

- III are limited to the aircraft described in the attached manuals, which is a miniature propeller airplane built by Hawkeye, Inc. that weighs less than six pounds (the “UA” or “UAS”). Proposed operations of any additional

aircraft will require a new petition or a petition to amend this grant. 5

2. Operations of the MD4

- 1000 are limited to the aircraft descri bed in the attached

manuals, which is a miniature propeller quadcopter built by AVYON. that weighs less

than six pounds (the “UA” or “UAS”). Proposed operations of any additional aircraft will

require a new petition or a petition to amend this grant

2. Th e UA may not be flown at an indicated airspeed exceeding 50 knots.

3. The UA may be operated at an altitude of no more than 400 feet above ground level (“AGL”), as indicated by the procedures specified in the attached manuals. All altitudes reported to A ir Traffic Control (“ATC”) must be in feet AGL.

4. The UA must be operated within visual line of sight (“VLOS”) of the pilot

- in

command (“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.

4 In filing this application, UAS, Inc. also is requesting that the FAA combine the grant of the Section 333 exemption with a stand

- alone Certificate of Operation (“COA”) that will a llow commercial operations of the Hawkeye Mk

- III, MD4

- 1000 and MD4

- 3000 without the necessity of filing for a COA for each flight up to 400 feet. Compliance with the conditions agreed to herein and that may be imposed by the FAA, as set forth in prior Sect ion 333 exemptions, provide the separation needed from other aircraft. Notice to airmen and notice to air traffic control can be provided by the filing of a NOTAM as set forth within the proposed conditions.U.S. Department of Transportation 08 April 2015 Page Five

5 UAS, Inc. is submitting under a request for confidentiality the flight operations manual and an aircraft flight manual for the Hawkeye Mk

- III and MD4

- 1000 (“manuals”).

5. All operations must utilize a visual observer (“VO”). The VO may be used to satisfy the VLOS requirement as long as the PIC always maintains VLOS capability. The VO and PIC must be able to communicate verbally at all times. The PIC must be designated before the flight and cannot transfer his or her designation for the dur ation of the flight. The PIC must ensure that the VO can perform the functions prescribed in the operator’s manual.

6. The manuals must be amended to include all conditions and limitations required by the FAA. The manuals must be maintained and made avai lable to the Administrator upon request. If a discrepancy exists between the conditions and limitations in the exemption and the procedures outlined in the manuals, the conditions and limitations in the exemption take precedence and must be followed. Other wise, the operator must follow the procedures as outlined in the manuals. The operator may update or revise the manuals. It is the operator’s responsibility to track such revisions and present updated and revised documents to the Administrator upon reques t. The operator must also present updated and revised documents if it petitions for an extension or amendment of this exemption. If the operator determines that any update or revision would affect the basis upon which the FAA granted this exemption, then t he operator must petition for amendment to its exemption.

7. Prior to each flight, the PIC must inspect the UAS to ensure it is in a condition for safe flight. 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. The ground control station must be included in the preflight inspection. All maintenance and alterations must be pr operly documented in the aircraft records.

8. Any UAS that has undergone maintenance or alterations that affect the UAS operation or flight characteristics, e.g. , replacement of a flight critical component, must undergo a functional test flight in accord ance with the operator’s manual. The PIC who conducts the functional test flight must make an entry in the UAS aircraft records of the flight. The manuals include this requirement.

9. The preflight inspection section in the manuals includes the following requirement: the preflight inspection must account for all discrepancies, i.e. , inoperable components, items, or equipment, not covered in the relevant preflight inspection sections of the operator’s manual.

10.The operator must follow UAS, Inc.’s UA air craft/component, maintenance, overhaul, replacement, inspection, and life limit requirements, with particular attention to flight critical components that may not be addressed in the manufacturer’s manuals.

11. Operator must carry out its maintenance, ins pections, and record keeping requirements in accordance with the manuals. Maintenance, inspection, and alterations must be noted in the aircraft logbook, including total flight hours, description of work accomplished, and the signature
of the authorized te chnician returning the UAS to service.U.S. Department of Transportation 08 April 2015 Page Six

12.The authorized technicians must receive and document training referenced in the

manuals.

13. Each UAS operated under the exemption must comply with al l UAS, Inc. system and safety bulletins.

14. Operator’s maintenance personnel must make a record entry in the UAS logbook or equivalent document of the corrective action taken against discrepancies discovered between inspections.

15. The PIC must posse ss at least a private pilot certificate and a third

- class airman medical certificate. The PIC must also meet the flight review requirements specified in 14
C.F.R. 61.56 as to the UAS.

16. The operator may not permit any PIC to operate unless that PIC has demonstrated through UAS, Inc.’s training and currency requirements that the PIC is able to safely operate the UA in a manner consistent with how the UAS will be operated under this exemption, including evasive and emergency maneuvers and maintaining

appr opriate distances from people, vessels, vehicles, and structures.

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

pre

- determined location within the private or controlled

- access property and land or be

recovered in a ccordance with the manuals.

18. The PIC must abort the flight in the event of unpredicted obstacles or emergencies in accordance with the manuals.

19. The PIC is prohibited from beginning a UAS flight unless (considering wind and
forecast weather condi tions) there is enough power to fly to the first point of intended landing and, assuming normal cruising speed, to fly after that for at least 10 minutes.

20. The operator will file a request for a Notice to Airmen (NOTAM) not more than 72

hours in advan ce, but not less than 48 hours prior to the operation.

21. All aircraft operated in accordance with the exemption must be identified by serial number, registered in accordance with 14 C.F.R. part 47, and have identification (N

Number) markings in accorda nce with 14 C.F.R. part 45, Subpart C. Markings must be as large as practicable.

22. Before conducting operations, the radio frequency spectrum used for operation and control of the UA must comply with the Federal Communications Commission (“FCC”) or other appropriate government oversight agency requirements.

23. The documents required under 14 C.F.R. 91.9 and 91.203 must be available to the PIC at the ground control station of the UAS any time the aircraft is operating. These

documents must be made available to the Administrator or any law enforcement official upon request.

24. The UA must remain clear and yield the right of way to all other manned operations and activities at all times (including, but not limited to, ultralight vehicles, parachut e activities, parasailing activities, hang gliders, etc.).U.S. Department of Transportation 08 April 2015 Page Seven

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

26. UAS operations may not be conducted during night, a s defined in 14 C.F.R. 1.1.

27. All operations shall be conducted in Class G airspace.

28. All operations must be conducted under visual meteorological conditions (“VMC”). The UA may not be operated less than 500 feet below or less than 2,000 feet

hori zontally from a cloud or when visibility is less than 3 statute miles from the PIC.

29. During operations in Class G airspace, the UA may not operate within 5 nautical miles of the geographic center of an airport as denoted on a current FAA

- published

aer onautical chart unless a letter of agreement with that airport’s management is obtained, and the operation is conducted in accordance with a NOTAM as required by the operator’s COA. The letter of agreement with the airport management must be made

available to the Administrator upon request.

30. The UA may not be operated over congested or densely populated areas unless the conditions set forth in #31 are satisfied. These populated areas include, but are not limited to, the yellow areas depicted on World A eronautical Charts (“WAC”), Sectional Aeronautical Charts (“Sectionals”), or Terminal Area Charts (“TAC”). However, aeronautical charts may not reflect pertinent local information. Ultimately, it is the PIC’s responsibility to maintain the minimum safe alt itudes required by § 91.119.

31. Operations must be conducted at least 500 feet from all nonparticipating persons (persons other than the PIC or VO), vessels, vehicles, and structures unless:

a. barriers or structures are present that sufficiently protect nonparticipating persons from debris in the event of an accident. The operator must ensure that nonparticipating persons remain under such protection. If a situation arises in which nonparticipating persons leave such protection and are within 500 feet of the UA, flight operation s must cease immediately; and/or U.S. Department of Transportation March 24, 2015 Page Eight

b. the aircraft is operated near vessels, vehicles, or structures where the land owner/controller has granted permission and the PIC has made a safety assessmen t of the risk of operating closer to those objects; and

c. operations near the PIC or VO do not present an undue hazard to the PIC or VO, per § 91.119(a).

32. All operations shall be conducted over private or controlled

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

conducted.

33. In the event COAs are required, any incident, accident, or flight operatio n that transgresses the lateral or vertical boundaries of the operational area as defined by the applicable COA must be reported to the FAA’s UAS Integration Office (“AFS

- 80”) within 24 hours. Accidents must be reported to the National Transportation Safet y Board (“NTSB”) per instructions contained on the NTSB Web site: www.ntsb.gov

.U.S. Department of Transportation 08 April 2015 Page Eight

********

Privacy . All flights will occur over private or controlled access property with the property owner’s prior consent and knowledge. Inspection will be in areas where the owners will hav e consented to the inspections or otherwise have agreed to allow the UAS and the operator to be in the area where inspection will take place.

National Security . No national security issue is raised by the grant of this exemption. Given the size, load carr ying capacity, speed at which it operates, and the fact that it carries no explosives or other dangerous materials, the Hawkeye Mk

- III, MD4

- 1000 and MD4

- 3000 poses no threat to national security.

********

In summary, UAS, Inc. seeks an exemption from the FARs set forth in Appendix A to operate commercially a small unmanned vehicle (55 lbs. or less) in aerial survey operations.

Approval of this exemption for commercial aerial survey operations will enhance safety by reducing risk. Conventional operations, using jet or piston powered aircraft, operate at extremely low altitudes just feet from the subject being inspected and in extreme proximity to people and structures. Such manned operations present the risks associated with vehicles that weigh in
excess of 6,000 lbs., carrying large amounts of jet A or other fuel. Such aircraft must fly to and from the project location. In contrast, a sUAS weighing fewer than ten lbs. and powered by batteries eliminates virtually all of that risk given the reduced mass and lack of combustible fuel carried on board. The sUAS is carried to the target area and not flown. The sUAS will carry no passengers or crew and, therefore, will not expose them to the risks associated with manned aircraft flights.

The operation of small UA Ss, weighing less than ten lbs., conducted in the strict conditions outlined above, will provide an equivalent level of safety supporting the grant of the exemptions requested herein. These lightweight aircraft operate at slow speeds, close to the ground, and in areas that are under the control of the customer. As a result, they are far safer than conventional operations conducted with manned aircraft operating in close proximity to the ground and people.

Satisfaction of the criteria provided in Section 33 3 of the Reform Act of 2012

– size, weight, speed, operating capabilities, proximity to airports and populated areas, and operation within visual line of sight and national security

– provide more than adequate justification for the grant of the requested exemptions allowing commercial operation of applicant’s UAS for the Purposes outlined herein and are consistent with exemptions already granted, including Exemptions 11062 through 11067, 11080, 11109 through 11112, and 11114.

Sincerely,

Benjamin Z. SmithAPPENDIX A

EXEMPTION REQUEST AND EQUIVALENT LEVEL OF SAFETY SHOWINGS UNDER
APPLICABLE RULES SUBJECT TO EXEMPTION

UAS, Inc. requests an exemption from the following regulations as well as any additional regulations that may technically apply to the o peration of the Hawkeye Mk

- III, MD4

- 1000 and

MD4

- 3000:

14 C.F.R. § 61.113(a) & (b); 61.133(a): Private Pilot Privileges and Limitations; Pilot in Command; Commercial Pilot Privileges and Limitations.

Section 61.113(a) & (b) limit private pilots to non

- co mmercial operations. Unlike a conventional aircraft that carries a pilot, passengers, and cargo, the Hawkeye Mk

- III, MD4

- 1000 and MD4

- 3000 in this case is remotely controlled with no passengers or property of others on board. Section 61.133(a) requires an individual with a commercial pilot’s license to be pilot in command of any aircraft for compensation or hire. UAS, Inc. respectfully proposes that operator requirements should take into account the characteristics of the particular UAS. UAS, Inc.’s Hawkeye Mk

- III,

MD4

- 1000 and MD4

- 3000 has a high degree of pre

- programmed control and various built

- in technical capabilities that strictly limit the potential for operation outside of the operating conditions set forth in the exemption application.

The Hawkeye Mk

- III, MD4

- 1000 and MD4

- 3000 has an autonomous navigation and control system. Flights are pre

- programmed with precision GPS guidance and do not require human intervention. In the case of unplanned events, the operator can manually intervene to take one o f the following actions: (i) command the aircraft to begin to autonomously return to the recovery area and land; (ii) command the aircraft to autonomously return to the recovery area where the pilot will assume control and land the aircraft; or (iii) manua lly assume control of the aircraft via the hand controller and return the craft to the recovery area where the operator lands it.

Additional automated safety functions and safety enhancing features of the Hawkeye Mk

- III,

MD4

- 1000 and MD4

- 3000 include the following:

* Auto

- pilot detection of lost GPS or of insufficient satellites initiates a stand

- by loiter pattern until such time as GPS is re

- established or the PIC assumes manual control
of the aircraft.

* Low battery power on the aircraft (10.4 vo lts) triggers the landing sequence and the craft will fly to the recovery area.

* If the auto

- pilot detects a lost

- link to the ground control station for longer than 30 seconds, landing procedure begins.

* The aircraft, weighing fewer than 6 lbs., f ully loaded, is constructed of foam, which is intended to absorb impact energy.

* In the event the ground station reaches a low power state, it will alert the pilot. Given these safety features, UAS, Inc. proposes that operators of the Hawkeye Mk

- III, MD4

- 1000 and MD4

- 3000 should not be required to hold a commercial pilot certification. Instead, operators should be required to hold only a private pilot certification. The risks associated with the operation of the Hawkeye Mk

- III, MD4

- 1000 and MD4

- 3000 ( given its size, speed, operational capabilities, and lack of combustible fuel) are so diminished from the level of risk associated with commercial operations contemplated by Part 61 with conventional aircraft (fixed wing or rotorcraft) that allowing operat ions of the UAS as set forth above meets or exceeds the present level of safety provided under 14 C.F.R. § 61.113(a) & (b) and does not rise to the level of requiring a commercial pilot to operate the aircraft under § 61.133(a).Given these conditions and restrictions, an equivalent level of safety will be provided by allowing operation of the Hawkeye Mk

- III, MD4

- 1000 and MD4

- 3000 with a private pilot’s certificate, under the conditions set forth in the exemption request. The FAA has granted exemptions to conduct similar operations in Exemptions 11062 through 11067, 11080, 11109, and 11110.

14 C.F.R. § 91.7(a): Civil Aircraft Airworthiness.

This regulation requires that no person may operate a civil aircraft unless it is in airworthy
condition. Should the exemption be granted allowing commercial operation of the Hawkeye Mk

III, MD4

- 1000 and MD4

- 3000 without an airworthiness certificate, no standard will exist for airworthiness of the Hawkeye Mk

- III, MD4

- 1000 and MD4

- 3000. Given the size of the aircraft and the requirements that the operator has agreed to as relates to airworthiness, as set forth in the attached manuals, an equivalent level of safety will be achieved by ensuring compliance with the UAS, Inc. manuals prior to each flight. The FAA has granted exemptions to conduct similar operations in Exemptions 11062 through 11067, 11080, 11109, and 11110.

14 C.F.R. § 91.119(c): Minimum Safe Altitudes.

Section 91.119 establishes safe altitudes for operation of civil aircraft. Specifically, 91.119(c)

limits aircraft flying over areas other than congested areas to an altitude of 500 feet above the surface, except over open water or sparsely populated areas. In those cases, the aircraft may not be operated closer than 500 feet to any person, vessel, vehicle, or structure.

As set forth herein, the Hawkeye Mk

- III, MD4

- 1000 and MD4

- 3000 will never operate at higher than 400 feet AGL. It will, however, be operated to avoid congested or populated areas that are depicted in yellow on VFR sectional charts. Because aer ial survey work must be accomplished at relatively low altitudes and at altitudes less than 500 feet AGL, an exemption from Section 91.119(c) is needed.

The equivalent level of safety will be achieved given the size, weight, speed, and material with

which the Hawkeye Mk

- III, MD4

- 1000 and MD4

- 3000 is built. Also, no flight will be taken without the permission of the landowner or those who control the land as well as local officials. Because of advance notice to the landowner, all affected individuals will b e aware of the survey flights. Compared to aerial survey operations conducted with aircraft or rotorcraft weighing far more than 5.5 lbs. and carrying flammable fuel, any risk associated with these operations will be far less than the risks currently posed by conventional aircraft operating at or below 500 feet AGL. Indeed, the low

- altitude operations of the UAS

will maintain separation between these small

- UAS operations and the operations of conventional aircraft that must comply with Section 91.119. The FAA has granted exemptions to conduct similar operations in Exemptions 11062 through 11067, 11080, and 1110.

14 C.F.R. § 91.151(a): Fuel Requirements for Flight in VFR Conditions

This regulation prohibits an individual from beginning “a flight in an airp lane under VFR conditions unless (considering wind and forecast weather conditions) there is enough fuel to fly to the first point of intended landing and, assuming normal cruising speed

– (1) During the day, to fly after that for at least 30 minutes; or ( 2) At night, to fly after that for at least 45 minutes.”

The batteries powering the Hawkeye Mk

- III, MD4

- 1000 and MD4

- 3000 provide approximately 60 minutes of powered flight. Without an exemption from § 14 C.F.R. 91.151, the UAS’s flights would

be limited to approximately 30 minutes in length. Given the limitations on its proposed operations and the location of those proposed operations, a longer time frame for flight in daylight VFR

conditions is reasonable.UAS, Inc. believes that an exemption from 14 C.F.R. § 91.151(a) is safe and within the scope of prior exemptions. See Exemption 10673 (allowing Lockheed Martin Corporation to operate without compliance with 91.151(a)). Operating the small UAS without 30 minutes of reserve fuel does not engender the t ype of risks that Section 91.151(a) was meant to prevent given the size and speed at which the UAS operates. The fact that it carries no pilot, passenger, or cargo also enhances its safety. Limiting Hawkeye Mk

- III, MD4

- 1000 and MD4

- 3000 flights to 30 minut es would greatly reduce their utility. In the unlikely event that the Hawkeye Mk

- III, MD4

- 1000 and

MD4

- 3000 achieves a low battery state (10.4 volts), it would simply land. Given its weight and construction material, the risks are less than contemplated by the current regulation.

UAS, Inc. believes that an equivalent level of safety can be achieved by maintaining 15 minutes of reserve fuel, which, allowing 45 minutes of flight time, would be more than adequate to return the UAS to its planned landing zone from anywhere in its operating area.

Similar exemptions have been granted to other operators, including Exemptions 2689F, 5745, 10673, 10808, and Exemptions 11062 through 11067, 11080, 11109, 1110, and 11112.

14 C.F.R. § 91.405(a); 407(a)(1); 409(a)(2); 417(a) & (b): Maintenance Inspections

Section 91.405(a) requires that an aircraft operator or owner “shall have that aircraft inspected as prescribed in subpart E of this part and shall between required inspections, except as provided in paragraph (c) of this section, have discrepancies repaired as prescribed in part 43 of this chapter . . . .” Section 91.407 similarly makes reference to requirements in Part 43;

Section 91.409(a)(2) requires an annual inspection for the issuance of an airworthiness certificate. Section 91.417(a) requires the owner or operator to keep record s showing certain maintenance work that has been accomplished by certificated mechanics, under Part 43, or licensed pilots and records of approval of the aircraft for return to service.

Maintenance of the Hawkeye Mk

- III, MD4

- 1000 and MD4

- 3000 will be acco mplished by the owner/operator pursuant to the manuals attached as confidential exhibits. An equivalent level of safety will be achieved because the UAS is small in size, will carry a small payload, will operation only in restricted predetermined areas and is not a complex mechanical device. As provided in the attached manuals, the operator will ensure that the UAS is in working order prior to initiating flight, perform required maintenance, and keep a log of any maintenance that is performed; moreover, the operator is the person most familiar with the aircraft and is best suited to maintain the aircraft in an airworthy condition and to ensure an equivalent level of safety. The FAA has granted exemptions for similar operations in Exemptions 11062 through 110 67, 11080, 11109, 11110, and 11112.

APPENDIX B SUMMARY OF UAS, Inc. SECTION 333 EXEMPTION REQUEST

For publication in the Federal Register , UAS, Inc. hereby provides pursuant to Part 11 a summary of its exemption application to allow commercial operation of the Hawkeye Mk

- III, MD4

- 1000 and

MD4

- 3000 unmanned aircraft in precision aerial survey work. An exemption is requested from the following regulations:

14 C.F.R. § 61.113(a) & (b); 14 C.F.R. § 61.133(a) ; 14 C.F.R. § 91.7(a); 14 C.F.R. § 91.119(c);

14 C.F.R. § 91.151(a); 14 C.F.R. § 91.405(a); 14 C.F.R. § 91.407(a)(1); 14 C.F.R. § 91.409(a)(2); 14 C.F.R. § 91.417(a) & (b)