12151!Research!Parkway,!Suite!100 Orlando,!FL!32826! • Phone:! 407

D 985

D 4500 •!www.hoverflytech.com September 23 , 2015

U

. S

. D ep a r t m ent o f T r a n spo rt a t i on via: Registered U.S. Mail and

D oc k e t M ana g e m ent S y s t em Fax to Docket Operations (201

- 493

- 2251)

1200 N ew Je r sey A v e

. , S E with Proprietary Enclosure, and

W a s h i ng t on, D C 20590 DMS without Enclosure a/s

Subject : E x e m p t i on R e q ue s t under S e c t i on 333 of the FAA Reform Act and Part 11 of the Federal Aviation Regulations.

D ear Si r o r M ada m :

P u r suant t o S ec t i on 333 o f t he F A A M ode r n i z a t i on and R e f o r m A c t o f 20 1 2 ( t he “ R e f o r m A c t ” ) and 14

C

. F

. R

. P a r t 1 1 , Hoverfly Technologies, Inc. CAGE: 75KE6 is a developer of tethered quad

- rotor systems and hereby requests e x e m p t i on fr o m t he Fed e r al A v i a t i on R e g u l a t i ons ( “ F AR s ” ) li s t ed and discussed below. The FAA has the regulatory power to grant the exemption s as requested.

Hoverfly requests the Subject exemption to continue development, test and evaluation, and demonstration of its LiveSky

- branded tethered electric quad

- motor sU AS platforms (the “LiveSky”)

below 400 feet AGL and under closed and secure field conditions. LiveSky platforms weigh less than twenty

- five (25) pounds including payload. LiveSky is connected with a tether to a ground.

LiveSky platforms are tethered to the ground and receive power from a ground power supply via

that tether. An on

- board LiPo battery provides emergency landing power in the event of ground power interruption. The LiveSky is programmed to hold its position above the ground control

station. LiveSky is designed to stay directly above the ground power point and only maneuver vertically up and down. It will safely land automatically if forced outside a small conical control range from the ground station. Horizontal movement of LiveSky is res tricted by tight geo

- fence whose circular radius is limited above the ground station by both programming and the tether’s catenary curve. The altitude is limited by control system programming and by tether length. Maneuver controls are limited to “up” an d “down.” O pe r a t i ons und e r an e x e m p t i on w il l be sub j e c t t o the s t r i ct ope r a t i ng limitations inherent in the tethered LiveSky itself and pursuant to safety training, the operator’s manual, and user agreement.

As more fully described below, the requested exemption would permit the operation of LiveSky platforms under controlled and limited conditions in predetermined, controlled access locations. Safe operating conditions are described in the LiveSky Operator’s Manual 1 provided herewith.

Compared to fixe d and rotary wing sUAS systems which have 3

- dimensional operating envelopes,

the 2

- D nature of the LiveSky improves safety and limits risks associated with free

- flight sUAS.

There is no navigation over populated areas, significantly reduced likelihood of communication link
loss, and no negative environmental effects. LiveSky tethered systems are inherently limited to line

of

- site operation.

Hoverfly can ens u r e a t l ea s t an e q u i v a l ent l e v el of s a f e t y compared with cu rr e n t l y au t ho r i z ed

ope r a t i ons and exemptions for sUAS. It would therefore follow that a pp r o v al of the e x e m p t i on12151!Research!Parkway,!Suite!100 Orlando,!FL!32826! • Phone:! 407

D 985

D 4500 •!www.hoverflytech.com requested would enhance s a f e t y and support f u l f il l ing t he S ec r e t a r y o f T r ansp o r t a t i on ’ s (t he F A A

A d m i n i s t r a t o r ’ s ) r e spons i b ili t i es under S e c t i on 333 ( c) o f t he R e f o r m A ct t o “ e s t ab li sh r e q u i r e m e n t s f or
t he s a f e op e r a t i on o f such a i r c r a f t s y s t e m s i n t he n a t i onal a i r space s y s t e m

. ”

Operating in accordance with the inherent physical limitations and restricted use criteria of the Operators Manual and the User Agreement, LiveSky does not create a hazard to users of the national airspace system or the public.

B ased on the unique inherent safety of tethered systems and the information above, w e respectfully request your considerate review and approval of the exemptions requested below.

T he na m e and ad d r ess o f t he app li cant a r e :

Hoverfly Technologies, Inc. Attn: Robert Topping

P hone: 407

- 985

- 4500

E m a il : rob@hoverfly.com

12151 Research Parkway, Suite 100 Orlando, FL 32826

T he r e g u l a t i ons fr om w h i ch t he e x e m p t i on i s r e q u es t ed a r e as f o ll o w s:

14 CFR P a r t 21

14 CFR 4 5

. 23 ( b )

14 CFR 6 1

. 113 ( a ) & ( b )

14 CFR 6 1

. 133 ( a )

14 CFR 9 1

. 9 ( b )( 2 )

14 CFR 91.103

14 CFR 9 1

. 109 ( a )

14 CFR 9 1

. 119

14 CFR 9 1

. 121

14 CFR 91.151

14 CFR 9 1

. 405 ( a )

14 CFR

. 9 1

. 407 ( a )( 1 )

14 CFR 9 1

. 409 ( a )( 2 )

The sections that follow d i scusses e ach r u l e li s t ed abo v e and e x p l a i ns w h y the e x e m p t i ons we request i n t h i s l e tt e r a r e ap p r op r i a t e

, p r o v i de an e q u i v a l ent or better l e v el o f s a f e t y , and a r e i n t he pub li c i n t e r es t

.

14 C.F.R. Part 21, Subpart H: Airworthiness Certificates 14 C.F.R. §91.203 (a) (1)

Given the small size and limited operating envelope of the LiveSky, an exemption from Part 21 Subpart H meets the requirements of an equivalent level of safety under Part 11 and Section 333

of the Reform Act.

The sUAS to be operated hereunder is less tha n 25 pounds with payload, carries neither a pilot nor passenger, carries no explosive materials or flammable liquid fuels, and operates exclusively

within a restricted area as set out in the Operators Manual.12151!Research!Parkway,!Suite!100 Orlando,!FL!32826! • Phone:! 407

D 985

D 4500 •!www.hoverflytech.com Unlike non

- tethered sUAS, operations under th is exemption will be tightly controlled, monitored by an operator, and limited by design and construction of the platform itself.

Application of these same criteria demonstrates that there is no credible threat to national security posed by the LiveSky, d ue to its small size, inherent lack of maneuver capability, location in

restricted closed

- field operating environments, its lack of explosive materials or flammable liquid fuels, and inability to carry payload to remote locations.

14 C.F.R. § 45.23 (b). M arking of the Aircraft

Given the size of the LiveSky, two

- inch lettering is not possible. However, the word “Experimental” will be placed on the fuselage in compliance with §45.29 (f) in a font which is approximately the

same size as the maximum vertical surface on the LiveSky.

The equivalent level of safety will be provided by having the sUAV marked on its fuselage as required by §45.29 (f) where the operator and others working with the sUAV will see the identification of the LiveSky as “Experimental.” We believe this helps reinforce a culture of procedural based safety.

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

The LiveSky will not carry a pilot or passengers, and proposed operations can achieve the equiv alent level of safety of current operations by requiring operator of the LiveSky to have Operations Safety Training as defined in the Manual rather than a commercial pilot’s license.

Unlike a conventional aircraft that carry a pilot and passengers, LiveSky is powered and controlled from the ground and does not have passengers or crew. The area of ground operation is

controlled and restricted to relevant non

- public personnel, and all op erations are planned, checked, and monitored as set forth in the Manual.

The level of safety provided by the requirements included in the Manual dramatically exceeds that provided by a single individual holding a commercial pilot’s certificate operating a conventional

aircraft.

Because the risks associated with the operation of the LiveSky are clearly significantly diminished from the level of risk associated with commercial operations as contemplated by Part 61 when drafted, allowing a trained operator as the PIC exceeds the present level of safety achieved by 14 C.F.R. §61.113 (a) & (b).

14 C.F.R. § 91.9 (b) (2): Civil Aircraft Flight Manual in the Aircraft

Because the LiveSky no ability or place to carry a flight manual on the platform, not only bec ause there is no pilot on board, but because there is no room or capacity to carry such an item, we request an exemption.

The equivalent level of safety will be maintained by keeping the Operations Manual and flight records, as therein defined, at the gro und control point where the operator will have immediate access to the material. The FAA has issued the following exemptions to this regulation: Exemption Nos. 8607, 8737, 8738, 9299, 9299A, 9565, 9565B, 10167, 10167A, 10602, 32827,

and 10700.12151!Research!Parkway,!Suite!100 Orlando,!FL!32826! • Phone:! 407

D 985

D 4500 •!www.hoverflytech.com 14 C.F.R. § 91.103: Preflight Action

We request exemption to the provisions an FAA approved Flight Manual is not available for LiveSky platforms.

An equivalent level of safety will be provided using the comprehensive preflight checklist of the Operations Manual. The operator will take all actions including reviewing landing zone and perimeter access controls prior to powering the LiveSky.

14 C.F.R. §91.109: Flight Instruction

The LiveSky does not have fully functional dual controls. In the LiveSky, flight contro l is accomplished through a control device with an “UP” and a “DOWN” button. The LiveSky moves vertically three to five meters for each button press. If the DOWN button is pressed and held for three (3) seconds, the LiveSky will automatically land. Test ing shows that with GPS, the LiveSky will land in very close proximity to its launch point.

The FAA has previously approved exemptions for flight training without fully functional dual controls for a number of aircraft and for flight instruction in exper imental aircraft. See Exemption Nos.5778K & 9862A. The equivalent level of safety provided by the fact that neither a pilot nor passengers will be carried in the aircraft and by the LiveSky’s small size, lack of maneuver capability and automatic landing sy stems.

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

Section 91.119(c) establishes safe altitudes for operation of civil aircraft over than congested areas. LiveSky operations are limited by control software and tether length to less than 400 feet

AGL. We believe relief from this provision is warranted since operations will be conducted in
restricted, non

- public areas and pursuant to safety provisions of the LiveSky Operations Manual. Buildings and people will not be exposed to operations without prior co nsent.

The equivalent level of safety will be achieved as a result of the LiveSky’s small size, inherent inability to maneuver, and the platform’s automatic landing system.

14 C.F.R. §91.121 Altimeter Settings

This regulation requires each person operating an aircraft to maintain cruising altitude by reference to an altimeter that is set “...to the elevation of the departure airport or an appropriate altimeter setting available before departure.” As the LiveSky may not have a barometric altimeter, but instead a GPS altitude reporting capability, an exemption may be needed.

An equivalent level of safety will be achieved by the operator, pursuant to the Operations and Manual confirming and documenting the altitu de of the launch site from the LiveSky before flight.

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

Section 91.151 (a) prohibits an individual from beginning “a flight in an airplane under VFR conditions unless (considering wind a nd 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 fly12151!Research!Parkway,!Suite!100 Orlando,!FL!32826! • Phone:! 407

D 985

D 4500 •!www.hoverflytech.com after that for at least 30 minutes; or (2) At night, to fly after that for at least 45 minu tes.”

The ground power supply to the tethered LiveSky relies on terrestrial power availability. The LiveSky relies on the availability of ground power to launch. Without ground power availability, the LiveSky will not take off.

The LiveSky platform in corporates a LiPO or other technology battery that is sufficient to safely land the platform in the event of a ground power interruption. The power capacity of the emergency landing battery is sufficient to land the platform safely if ground power is inte rrupted while operating at a maximum altitude of 400 feet.

Given the limitations on the Livesky operational area, it’s lack of maneuver capability and the location of any operations within a predetermined and restricted non

- public area, we believe an

exe mption from 14 CFR §91.151(a) falls within the scope of prior exemptions.

Operating the LiveSky in accordance with the Manual does not engender the type of risks that Section 91.151(a) was intended to alleviate given the size and lack of maneuver capability and emergency landing power battery.

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

These regulations require that an aircraft operator or owner “shall have that aircraft inspected as prescribed in subp art 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...,” and others shall inspect or maintain the aircraft in compliance with P art 43.

Given that these section and Part 43 apply only to aircraft with an airworthiness certificate, these sections will not apply to the applicant. Maintenance will be accomplished by the operator or Hoverfly pursuant to the the Manual.

An equivalent level of safety will be achieved because the LiveSky produce metadata that is used to provide an indication of LiveSky maintenance requirements. For instance, LiveSky systems monitor motor characteristics; data from which can be used to schedule preventat ive maintenance thereby improving safety. Further, the Operations Manual mandates minimum inspection intervals and mandatory interval replacement or TBO for flight critical parts and systems. If a mechanical issue should arise, the LiveSky can land immedi ately.

Other Relief as the FAA Deems Appropriate

Hoverfly also requests exemption from any other FARS the FAA deems appropriate to enable the requested operations. If, during the effective dates of any Grant of Exemption issued pursuant to
this Petition, the FAA issues interim or final rules for sUAS, we request that Hovefly relieved of the requirements of any conditions and limitations of said exemption and allowed to comply with any less burdensome applicable regulations that may have become effective.

Privacy

LiveSky development and operational test and evaluation will occur over private or controlled access property with the property owner’s prior consent and knowledge.12151!Research!Parkway,!Suite!100 Orlando,!FL!32826! • Phone:! 407

D 985

D 4500 •!www.hoverflytech.com Hovefly is committed to professional and respectful conduct. We voluntarily subscribe to the Association of Unmanned Vehicles International's (AUVSI) Code of Conduct (http://www.auvsi.org/conduct), including specifically the commitments respect the right of othe r users of the airspace and the privacy of individuals

No Hoverfly LiveSky operations will have as their mission the intentional collection of personal information of any person or the general public where they have an expectation of privacy.

No perso nally identifying information which is obtained from the LiveSky sensors will be retained or recorded and stored, other than to evaluate the performance of the LiveSky or its systems. No public release of personally identifying information will be made by Hoverfly.

Summary

Petitioner: Hoverfly Technologies, Inc.

Sections of 14 C.FR. Affected: Part 21 Subpart H; § 21.191(a); § 45.23(b); § 45.27; §§ 61.113(a) and (b); § 91.l 19(c); § 91.121; § 91.151(a); § 91.405(a); § 91.407(a)(l); §§ 91.409(a)(l) and (2); §§ 91.417(a) and (b).

Description of Relief Sought: Petitioner seeks relief from the requirements of 14 C.F.R. Part 21 Subpart H; 14 C.F.R. § 21.191(a); 14 C.F.R. § 45.23(b); 14 C.F.R. § 45.27; 14 C.F.R. §§ 61.113(a) and (b); 14 C.F.R. § 91.119(c); 1 4 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)(l); 14 C.F.R. §§ 91.409(a)(l) and (2); 14 C.F.R. §§ 91.417(a) and (b) to conduct tethered small unmanned aircraft s ystems research and development, test and
evaluation, and demonstration operations at its own facility and in limited number of restricted and

controlled areas.

Granting Hoverfly the exemption requested here substantially furthers the public interest by providing a capability to develop and deliver equipment available to first responders, disaster response organizations, and a wide variety of industrial and agricu ltural users. The limited operating concept inherent in a tethered platform allows operators concentrate on system monitoring, performance parameters, and safety. The public interest is served producing LiveSky which represents a significant improvement i n safe Operations compared to free

- flight sUAS platforms.

Hoverfly would accept the summary restrictions below to clarify and provide for the requested exemptions.

1. The LiveSky will weigh less than 55 lbs.

2. Flights will be operated in line of sight of a tr ained operator.

3. Maximum total flight time for each operational flight will be as proscribed in the Operations Manual which specifies inspection, maintenance, and reporting intervals.

4. The LifeSky will have adequate battery power reserve to land from 400 A GL if ground power or tether connection is interrupted.

5. Flights will be limited to an altitude below 400 feet AGL and away from highly populated areas and airports12151!Research!Parkway,!Suite!100 Orlando,!FL!32826! • Phone:! 407

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D 4500 •!www.hoverflytech.com 6. The LiveSky will only be operated within a controlled “ Secure Area” as defined in the Man ual.

We believe that our Petition for Exemption satisfies the criteria provided in Section 333 of the Reform Act of 2012 of size, weight, speed, operating capabilities, proximity to airports and populated areas, operation within visual line of sight and national security

– provide more than adequate justification to grant the requested exemptions allowing operation of LiveSky in accordance with the foregoing.

Please contact me by email at rob@hoverflytech.com or at 407

- 985

- 4500 with any questions related to this Petition. Thank you for your prompt consideration.

Sincerely,

Robert T. Topping

Chief Executive Officer

Enclosures: LiveSky Operator’s Manual 1

1 Applicant submits its Operations Manual as a Trade Secret Confidential document under 14 CFR 11.35 since the entire manual co ntains proprietary information that the applicant has not and will not share with others without protection under binding contract. The manual contains operating conditions and procedures that are not available to the public and are protected from release under the Fr eedom of

Information Act 5 USC 552 et. seq.