September 8 , 2015

Exemption No. 12455A Regulatory Docket No. FAA

– 20 15

– 1755

Mr. R. Patrick Thornberry Counsel for CameraBee, LLC
600 East 96th Street
Suite 600 Indianapolis, IN 46240

Dear Mr. Thornberry:

This letter is to inform you that we have granted your petition for an amendment. It explains
the basis for our deci sion, describes its effect, and lists any changes to the original conditions
and limitations.

By letter dated May 5, 2015, you petitioned the Federal Aviation Administration (FAA) on behalf of CameraBee, LLC (hereinafter petitioner or operator) for an exe mption. The petitioner requested to operate an unmanned aircraft system (UAS) to conduct aerial data
collection and/or closed

- set motion picture and filming. In the August 14 , 2015 decision letter, the FAA was unable to approve the Hoverfly Systems Aeronavics Erista 8/Skyjib8 and the Hoverfly Systems/SkyHero 700 Quad. The FAA is now prepared to act on that request.

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

. T he
unmanned aircraft authorized in the original grant are comparable in type, size, weight, speed and operating capabilities to those in this petition

.

Airworthiness Certification

In accordance with the statutory criteria provided in Section 333 of Public 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 aircraf t meets the conditions of Section 333. Therefore, the FAA
finds that relief from 14 CFR part 21, C ertification procedures for products and parts,2

Subpart H

— Airworthiness Certificates , and any associated noise certification and testing requirements of part 36, is not necessary.

Our Decision

The FAA has determined that the justification for the issuance of Exemption No. 12455 remains valid and is in the public interest. Therefore, under the authority contained
in 49 U.S.C

. 106(f), 40113, and 44701, delega ted to me by the Administrator, the operator is granted an amendment to add new aircraft to its UAS operations.

The operator shall add this amendment to its original exemption.

Conditions and Limitations

All conditions and limitations within Grant of Exemption No. 12455 remain in effect except as follows. Condition No. 1 has been updated to reflect the additional aircraft

.

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

1. Operations authorized by this grant of exemption are limited to the Freefly Systems Alta, Blade 350 Q X, Hoverfly Systems Aeronavics Erista 8/Skyjib8

, and the Hoverfly Systems/SkyHero 700 Quad 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.

T his exemption terminates on August 31, 2017

, unless sooner superseded or rescinded.

Sincerely,

/s/
John S. Duncan Director, Flight Standards Service

EnclosuresR. Patrick Thornberry

Associate r.patrick.thornberry@FaegreBD.com

Direct +1 317 569 4625 Faegre Baker Daniels LLP

600 East 96 th Street Suite 600 Indianapolis Indiana 46240-3789

Phone +1 317 569 9600

Fax +1 317 569 4800

US.56523982.03 May 5, 2015

United States Department of Transportation Docket Management System 1200 New Jersey Ave., SE West Building Ground Floor Room W12-140 Washington, DC 20590

Re: Exemption Request Pursuant To Section 333 of the FAA Reform Act of 2012 and Part 11 of the Federal Aviation Regulations

Dear Sir or Madam:

We represent CameraBee, LLC, an Indiana limited liability company ("CameraBee"). We are writing pursuant to the FAA Modernization and Reform Act of 2012 1 (the "Reform Act") and the petition for exemption procedures directed in 14 C.F.R. 11, to request that CameraBee, an owner and operator of unmanned aircraft, be exempted from the Federal Av iation Regulations ("FARs") listed below so that CameraBee may operate its unmanned aircraft / unma nned aircraft systems ("UAS") commercially in airspace regulated by the Federal Aviation Administration ("FAA").

CameraBee wishes to provide aerial videography and photography services through the use of small, unmanned aircraft and lightweight UASs, primarily for use in the motion picture industry. CameraBee's
UASs are some of the most advanced remote contro l aircraft available for these purposes. CameraBee seeks permission to fly its UASs commercially within the United States to capture aerial videography and photography.

CameraBee's exemption request would permit its ope ration of lightweight, unmanned (piloted by remote control) aircraft and UASs in controlled and limited airspace. Each of CameraBee's UAS pilots has (i) undergone maintenance and flight tr aining from Hoverfly (the manufact urer of CameraBee's UASs) or another UAS training program, (ii) obtained and current ly maintains a Private Pilot License pursuant to the FARs (including a Third Class Me dical Certificate), and (iii) receiv ed or logged at least twenty-five (25) hours of UAS flight time and a minimum of five (5) hours flight ti me in uninhabited areas with the specific UAS proposed to be used by CameraBee. Predetermined, specifically marked areas of

1 112 P.L. 95 (2012).-2- May 5, 2015

US.56523982.03 operation, sectioned off locations and the company' s training, expertise, a nd protocols will allow CameraBee to operate within current safety parame ters. Additional information regarding CameraBee's proposed operating protocols are set forth in Came raBee's Flight Operation Checklists and Motion Picture and Television Flight Operation Manual (b oth submitted separately as confidential documents under 14 C.F.R. §11.35(b)).

Granting CameraBee's request will comport with th e Secretary of Transpor tation’s (through the FAA Administrator) responsibilities to inte grate UASs into the national ai rspace system, consistent with future "...requirements for the safe operation of such aircraft systems [UASs] in the national airspace system" under Section 333(c) of the Reform Act. CameraBee will conduct its operations in compliance with the protocols described herein or as otherwise established by the FAA. 2

For the reasons stated below, CameraBee respectfu lly requests the FAA grant an exemption allowing it to operate lightweight, remote controlled UASs.

1. CameraBee's Contact Information:

CameraBee, LLC Attn: Derek Hammer, President
7507 Crews Drive Indianapolis, IN 46226 Tel.: (317) 546-2999

For purposes of this exemption request, please contact:

Faegre Baker Daniels LLP Attn: R. Patrick Thornberry 600 E. 96th Street, Suite 600 Indianapolis, IN 46240 Tel.: (317) 569-4625 E-Mail: r.patrick.tho rnberry@FaegreBD.com

2. Specific Sections of Title 14 of the Code of Federal Regulations From Which CameraBee Requests Exemption:

14 C.F.R. 21, subpart H; 14 C.F.R. §45.23(b);

2 The FAA has proposed to amend its regulations to adopt speci fic rules to allow the operation of small unmanned aircraft systems in the National Airspace System , including changes which would address the operation of unmanned aircraft systems, certification of their operators, registration, and display of registration markings. https://www.federalregister.g ov/articles/2015/02/23/2015-03544/operation-an d-certification-of-small-unmanned-aircraftsystems It appears that Camera Bee’s proposed operation for which it is seeking exemption from current FAA regulations would be consistent with the regulatory framework proposed for new Part 107, insofar as relevant procedures and specifics of the proposed rules are reasonably foreseeable.-3- May 5, 2015

US.56523982.03 14 C.F.R. §61.113(a) and (b); 14 C.F.R. §91.9(b)(2); 14 C.F.R. §91.103(b); 14 C.F.R. §91.109; 14 C.F.R. §91.119; 14 C.F.R. §91.121; 14 C.F.R. §91.151(a); 14 C.F.R. §91.203(a) and (b); 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. §407(a)(1); 14 C.F.R. §409(a)(2); and 14 C.F.R. §417(a) and (b).

3. The Extent of Relief CameraBee Seeks a nd the Reason It S eeks Such Relief:

CameraBee submits this application in accordance with §§ 331-334 of the Refo rm Act seeking relief from any currently applicable FAR's operating to prevent CameraBee's contemplated commercial cinematic, photographic and other flight operations w ithin the national airspace system. Section 332 of the Reform Act provides for such integration of civil unmanned aircraft sy stems into our national airspace system in the public interest. CameraBee' s lightweight UASs meet the standards of "small
unmanned aircraft" as defined in Section 331(6); the integration of lightweight UASs of the type operated by CameraBee is expressly contemplated by the Reform Act. Importantly, client demands and similar plans of competitors to provide this type of service require CameraBee be able to operate its lightweight UASs as quickly as possi ble, and likely prior to FAA prom ulgation of final rules governing such operations.

The Reform Act 3 guides the Secretary in determining the type s of UASs that may operate safely in our national airspace system. Considerations include:

• The weight, size, speed and overa ll capabilities of the UAS;

• Whether the UAS will be operated near airports or populated areas; and

• Whether the UAS will be operated by line of sight.

CameraBee’s plans regarding these factors support an exemption.

CameraBee's UASs utilize four to eight (the model inte nded to be used most often is the eight-propeller model) counter-rotating propellers for extreme bala nce, control and stability. Each UAS weighs less than 55 pounds, including cinematic or other equipment. Each of Ca meraBee's small unmanned aircraft is designed to primarily hover in place and operate at less than a 50 knot maximum speed. They are

3 §§ 333 (a) and (b).-4- May 5, 2015

US.56523982.03 capable of vertical and horizontal operations but operate only within the line of sight of the remote control pilot. In addition to the remote control pilot, CameraBee will use a spotter and a camera operator, such that, at minimum, three CameraBee personnel govern the safe flight of a CameraBee
aircraft at all times.

Utilizing battery power and not combustible fuels, flights generally last less than twenty minutes. CameraBee will not operate its UASs with less than tw enty-five percent (25%) battery capacity. Safety systems in place include a GPS mode that allows Came raBee's UASs to return to a home safety point if
communications are lost.

CameraBee will not operate its UASs near airports and generally will not operate them near populated areas, unless such area (i) is a private set, (ii) has been sectioned off for closed-set operations, and/or (iii) is under the control of Camera Bee clients. Accordingly, CameraB ee will only operate its UASs in predetermined areas and only in complia nce with strict safety protocols.

CameraBee's operation of its fleet of small unmanned ai rcraft will not "create a hazard to users of the national airspace system or the public." 4 Given the small size and wei ght of CameraBee's UASs, which will be operated only in closed off and well-contro lled areas, CameraBee's UASs fall within Congress’s contemplated safety zone when it promulgated th e Reform Act and the corresponding directive to integrate UASs into the national airspace system. CameraBee's UASs do not pose any threat to the general public or national security.

4. CameraBee's Request Will Benefit the Public As A Whole:

Granting CameraBee's exemption request furthers the public interest. Congress has pronounced through the Reform Act that it is in the public’s interest to integrate commercially flow n UASs into the national airspace system. Further, the public has an interest in reducing the danger and emission associated with current aerial cinematic capture methods, namely, fu ll size helicopters. Came raBee's UASs are battery powered and create no em issions. There is no fuel to ignite and explode if a CameraBee UAS should crash. The impact of CameraBee's lightweight UASs is far less than a full size helicopter. The public’s interest is furthered by minimizing ecological a nd potential crash impacts by permitting motion picture capture through CameraBee's lightweight UASs.

Congress mandated the integration of UASs into our national airspace system, in part, to achieve the
societal benefits of this develo ping UAS technology, with appropriat e safety and rela ted regulatory guidance from the FAA. Permitting CameraBee to ope rate its UASs is consistent with these goals.

5. CameraBee's Exemption Will Not Adversely Aff ect Safety; the Exemption Will Provide a Level of Safety at Least Equal to Existing Rules:

CameraBee's exemption will not adversely affect safety. Permitting CameraBee to offer aerial videography and photography services without the use of full size aircraft will decrease the overall risk

4 Reform Act § 333 (b)-5- May 5, 2015

US.56523982.03 to the public. CameraBee’s approach is safer and superior to curr ent aerial motion picture capture techniques:

• CameraBee's UASs weigh less than 55 pounds (including the mounted camera);

• CameraBee will only operate its UASs below 400 feet;

• CameraBee's UASs will only operate for f lights lasting less than 20 minutes;

• CameraBee will land its UASs when they reach 25% battery power;

• CameraBee's remote control pilots oper ate CameraBee's UASs by line of sight;

• CameraBee's remote control pilots have video backup should they some how lose sight of the UAS;

• CameraBee will staff each flight with a remote control pilo t, camera operator and spotter with communication systems enabli ng real time communication among them;

• CameraBee's UASs have GPS flight modes where by they return to a safe home location if
communication with the remote control pilot is lost;

• CameraBee employs FAA licensed private pilot( s) and conducts a regimented training and continuing education program;

• CameraBee will only operate in quarantined areas that are strictly controlled, and away from airports and populated areas;

• CameraBee pilots will always conduct extensive pr eflight safety briefing s with all persons who will be allowed in the flight operations area, which includes planning and briefings for contingency emergency procedures;

• CameraBee will always obtain all necessary perm issions and permits prior to operation; and,

• CameraBee has procedures to abort flights in the event of safety breaches or potential danger.

CameraBee's safety protocols provide a level of safety at least equal to existing rules, and in most instances, greater than existing rules. It is important to note that absent the integration of commercial UASs into our national airspace system, helicopters are the primary means of aerial videography and photography. While the safety record of such helicopters is strong, it is far safer to operate a battery powered lightweight UAS. First, th e potential loss of life is dimini shed because UASs carry no people on board, and CameraBee only operates them in clos ed set operations away from mass populations. Second, there is no fuel on board a UAS and thus th e potential for fire or explosions is greatly diminished. Third, the small size and maneuverability of CameraBee's UASs allow the remote control pilots to avoid hazards. Accordingly, CameraBee's UA Ss will operate at or above current safety levels. Lastly, CameraBee's proposed operations would comply with the applicable provisions of Proposed Part 107 to Title 14, and therefore fit with in the restrictions currently cont emplated by the FAA with respect to the commercial operation of UASs.

6. Summary The FAA May Publish in the Federal Register:

A. 14 C.F.R. 21 and 14 C.F.R. 91: Airw orthiness Certificates and Manuals.

14 C.F.R. 21, Subpart H, entitled Airwor thiness Certificates, sets forth requirements for procurement-6- May 5, 2015

US.56523982.03 of necessary airworthiness certificates in relation to FAR § 91.203(a)(1). The size, weight and enclosed operational area of CameraBee's UASs permit exempti on from Part 21 because CameraBee's UASs meet an equivalent level of safety pur suant to Section 333 of the Reform Act. The FAA is authorized to exempt aircraft from the airwor thiness certificate requirement unde r both the Act (49 U.S.C. § 44701 (f)) and Section 333 of the Reform Ac t. Both pieces of legislation pe rmit the FAA to exempt UASs from the airworthiness certificate requirement in consider ation of the weight, size, speed, maneuverability and proximity to areas such as airports and dense po pulations. CameraBee's UASs meet or exceed each of
the elements.

14 C.F.R. §91.9(b)(2) requires an airc raft flight manual in the aircraft. As there are no pilots or passengers, and given the size of the UASs, this Regulati on is inapplicable. An equivalent level of safety will be achieved by maintaining a manual at the flight operations center. The FAA has previously issued exemptions to this regulation in Exemption Nos. 8607, 8737, 8738, 9299, 9299A, 9565, 9565B, 10167, 10167A, 10602, 10700 and 32827.

14 C.F.R. §91.121 regarding altimeter settings is in applicable insofar as CameraBee's UASs utilize electronic global positioning systems and internal gyroscopes to provide spatial coordination.

14 C.F.R. §§91.203(a) and (b) provide for the carrying of civil aircraft certifica tions and registrations. These regulations are inapplicable for the reasons desc ribed above. The equivalent level of safety will be achieved by maintaining such certific ations and registrations at Came raBee's flight operations center.

B. 14 C.F.R. §45.23: Marking the Aircraft.

Applicable FARs require aircraft to be marked a ccording to certain specifications. CameraBee's UASs are, by definition, unmanned. They therefore do not have a cabin, cockpit or pilot station on which to mark certain words or phrases. Further, two-inch le ttering is difficult to place on such small aircraft. Regardless, CameraBee will mark its UASs in the largest possible lettering by placing the word "EXPERIMENTAL" on its fuselage as required by 14 C.F.R. §45.29( f) so that th e pilot, camera operator, spotter and others working with the UAS w ill see the markings. The FAA has previously issued exemptions to this regulation through Exemptions Nos. 8738, 10167, 10167A and 10700.

C. 14 C.F.R. §61.113: Private Pilot Privilege s and Limitations: Pilot in Command.

Pursuant to 14 C.F.R. §§61.113(a) and (b), private pilots are limited to non-commercial operations. CameraBee can achieve an equivalent level of sa fety as achieved by curre nt Regulations because CameraBee's UASs do not carry any pilots or passengers . While helpful, a pilot license will not ensure remote control piloting skills; CameraBee's pilot training programs will. Private pilot licensees will operate CameraBee's UASs with the same skill. Fu rther, the risks attendant to the operation of
CameraBee's UASs is far less than the risk levels i nherent in the commercial ac tivities outlined in 14 C.F.R. §61, et seq. Thus, allowing CameraBee to opera te its UASs with a private pilot, who has received further training through CameraBee programs, as the pilo t in control will exceed current safety levels in relation to 14 C.F.R. §§61.113(a) and (b).-7- May 5, 2015

US.56523982.03 D. 14 C.F.R. §91.151(a): Fuel Requirement s for Flight in VFR Conditions.

Section 91.151(a) prohibits an individual from beginni ng "a flight in an airplane 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." Came raBee is not seeking an exemption for night-time UAS operations.

The battery powering CameraBee's UASs provides approximately 30 minut es of powered flight. This would make compliance with Section 91.151(a) impo ssible and render the use of UASs impractical. Given the limitations on the UASs flight area and the lo cation of its proposed ope rations in closed off areas, the shortened batter y reserve requirement for daylight-onl y operation, as described in Section 5 above, is reasonable.

An exemption from 14 C.F.R. §91.151(a) fall s within the scope of prior exemptions. See Exemption No. 11062 (granting Astraeus Aerial similar relief to operate UASs without compliance with this Section, and noting similar instances of such exemptions granted in the UAS context in Exemption Nos. 8811, 10808, and 10673). Operating CameraBee's UASs within the pilot's visual line of sight in closed set operations, in which only individuals who have particip ated in pre-flight safety briefings are present does not create the type of risks that Section 91.151(a) was intended to address, especially when also taking into account the size, speed and maneuverability of CameraBee's UASs. An equivalent or higher level of safety as that sought by Section 91.151(a) can be achieved by limiting flights such that the battery power of the UAS does not fall below 25 per cent, which would provide more than adequate power to return the UAS to its planned landing z one from anywhere in its limited operating area.

E. 14 C.F.R. §91.119: Minimum Safe Altitudes.

14 C.F.R. §91.119 prescribes safe altitudes for the operation of civil aircraft. It a llows helicopte rs to be operated at lower altitudes in certain conditions. CameraBee's UASs will not operate at an altitude greater than 400 feet above ground le vel. CameraBee will also only ope rate its UASs in closed-off and controlled areas, providing a level of safety at least equivalent to those in relation to minimum safe altitudes. Given the size, weight, maneuverability and speed of Camera Bee's UASs, an equivalent level of safety will be achieved.

F. 14 C.F.R. §§91.405 (a); 407(a)(1); 409(a)(2); 41 7(a) and (b): Maintenance Inspections.

The above Regulations require aircraft owners a nd operators to "have [the] aircraft inspected as prescribed in subpart E of this part and shall between required inspecti ons, except as provided in paragraph (c) of this section, have di screpancies repaired as prescribed in part 43 of this chapter. . . ."

These Regulations only apply to aircraft with an airw orthiness certificate. They will not, therefore, apply to CameraBee should its requested exemption be gr anted. However, CameraBee conducts an extensive maintenance program that involves regular softwa re updates and curative measures for any damaged hardware. Therefore, an equivalent level of safety will be achieved.-8- May 5, 2015

US.56523982.03 G. Summary

CameraBee seeks an exemption from the following Regulations: 14 C.F.R. §21, subpart H; 14 C.F.R. §45.23(b); 14 C.F.R. §§61.113(a) and (b); 14 C.F.R. §91.9(b)(2); 14 C.F.R. §91.103(b); 14 C.F.R. §91.109; 14 C.F.R. §91.119; 14 C.F.R. §91.121; 14 C.F. R. §91.151(a); 14 C.F.R. §§91.203(a) and (b); 14 C.F.R. §91.405(a); 14 C.F.R. §9 1.407(a)(1); 14 C.F.R. §91.409(a)(2); 14 C.F.R. § 91.409(a)(2); and, 14 C.F.R. §§91.417(a) and (b), to commercially operate its fleet of UASs in motion picture, television and photography operations.

Granting CameraBee's request for exemption will reduce current risk levels and thereby enhance safety. Currently, videography and photography image capture re lies primarily on the use of larger aircraft running on combustible fuel. CameraBee's craft do not contain potentially explosive fuel, are smaller, lighter and more maneuverable than conventional aircraft used for these purposes. Further, CameraBee will operate at lower altitudes and in controlled airspace.

CameraBee's UASs carry only a camera, and therefore in a UAS incident the likelihood of death or serious bodily injury is significan tly limited. CameraBee's operation of its UASs, weighing less than 55 pounds and traveling at speeds lower th an 50 knots in closed off areas wi ll provide at leas t an equivalent level of safety as that achieved under current FARs.

Accordingly, CameraBee respectfully requests that th e FAA grant its exemption request set forth herein.

Respectfully submitted,

/s/ R. Patrick Thornberry

R. Patrick Thornberry

RPTHORNB:

cc: Derek Hammer President, CameraBee, LLC