80585.2

PETITION FOR EXEMPTI ON FROM FEDERAL AVIA TION REGULATIONS (“FARS”) AND REQUEST FOR APPROVAL TO OPER ATE UNMANNED

AIRCRAFT SYSTEMS UND ER SECTION 333 OF TH E FAA REFORM ACT

AND PART 11 OF THE F ARS

Submitted by: Near Earth Autonomy, Inc.

Dated: May 18, 2016

By Electronic Submission to: www.regulations.gov

By Paper Submission to:

U.S. Department of Transportation Docket Operations West building Ground Floor, Room W12

- 140 1200 New Jersey Avenue, SE Washington, DC 20590

Filed by:

Justine M. Kasznica, Esq.

Saul Ewing LLP

One PPG Place

Suite 3010 Pittsburgh, PA 15222 412.209.2537 (office) 412.209.2588 (fax) jkasznica@saul.com

Counsel for Near Earth Autonomy, Inc.80585.2 TABLE OF CONTENTS

I. Summary for Publication in Federal Regi ster

................................ .......................... 1

II. Legal Basis for the Request ed Exemption under Section 333

................................ . 7

III. Identity and Contact Information of the Petitioner

................................ .................. 8

IV. The Approved sUAS

................................ ................................ ................................ 8

V. The Proposed sUAS Operation

................................ ................................ ................ 9

VI. The Approved sUAS Equivalent Level of Safety

................................ .................. 14

VII. Privacy

................................ ................................ ................................ ................... 1 7

VI II. Public Interest and Safety

................................ ................................ ...................... 1 7

IX. Exemptions Requested Under Section 333

................................ ............................ 18

X. Certificate of Authorization or Waiver

................................ ................................ ... 2 7

XI. Conclusion

................................ ................................ ................................ ............. 2780585.2 ENCLOSURES

SCHEDULE 1

1 . Product Brochure for g5 2. Product Brochure for g6

CONFIDENTIAL SUPPLEMENT

Exhibit A:

1. 4 Approp riate Project Site Descriptions

2. Near Earth Operations Manual

3. Form 24081

I. Summary for Publication in Federal Register

Near Earth Autonomy, Inc. (“Near Earth”) d evelops comprehensive software and sensor

solutions fo r manufacturers and users of low

- flying aircraft that operate in all

- weather conditions, and in hostile, unprepared environments. These solutions are designed to meet the

needs of both micro air vehicles and full

- scale aircraft, by offering a customized pr ocess that leverages automation and pilot aids to ensure safe manned and un

- manned flight. Amongst its many product and service offerings, Near Earth offers turnkey systems for surveying and mapping, as well as survey and mapping sensors and payloads that can be integrated with other systems. Near Earth services customers in the construction, agricultural, mining, natural gas, and power industries that routinely perform site inspections, surveys, aerial mapping, site monitoring,

and other similar tasks.

Ne ar Earth seeks to operate small unmanned aircraft systems under 55 lbs (“sUAS”) for compensation or hire within the National Airspace System (“NAS”) for the purpose of conducting aerial demonstrations of its products and services within the NAS. These

demo nstrations are critical for Near Earth sales and marketing campaigns, designed for prospective and existing customers that seek to purchase and use Near Earth products and services for the purpose of site surveying, mapping, monitoring, and inspecting.

The data obtained through the use of the Approved sUAS will enable Near Earth to better understand the market and its customers’ needs and to position itself for sales, and do so in a

cost

- effective, efficient and safe manner. Use of the Approved sUAS is a low

- cost solution with low environmental impact that allows Near Earth to showcase its products and services, and use the data collected to optimize the quality and effectiveness of the products and services offered. Through this process, Near Earth seeks to offer tested and proven assistive technologies to its customers that will improve the safety and effectiveness of future flight operations.

On October 20, 2015, the FAA granted to Near Earth an exemption, Exemption No. 13248, to operate specific class es/models of sUAS under Section 333 of the FAA Modernization and Reform Act of 2012 ( the “ Act ”) for th e purpose of conducting aerial demonstrations, surveying, mapping, inspections, and site monitoring in furtherance of Near Earth’s business.

Near Earth’s Exemption No. 13248 is limited to specific sUAS models

-- the Pulse VAPOR 35

and Pulse VAPOR 55 UAS

.

Near Earth now seeks to add additional sUAS models to its inventory, and seeks a n additional Section 333 exemption from the FAA to operate th ose models o r classes of sUAS that

are approved for operations by the FAA under the Act at the time of the proposed Near Earth operation (the “Approved sUAS”). The current list of Approved sUAS can be found on the “List of Approved UAS under Section 333,” which is pos ted at www.regulations.gov under docket

number FAA

- 2007

- 3330

, and is updated on a monthly basis.

Near Earth hereby petitions the Federal Aviation Administration (“FAA”) for an exemption from various FARs and requests approval to operate the Approved sUAS in the NAS for the purposes described above, pursuant to Section 333 of the Act , 49 U.S.C.S 44701(f), and Title 14 of the Code of Federal Regulations (“CFR”), Part 11 (14 CFR Part 11) (the “Petition”).2 In its Petition, Near Earth requests that an exemp tion be granted from the following

regulations:

14 CFR Part 21

14 CFR 43.7

14 CFR 43.11

14 CFR 45.11

14 CFR 45.21 14 CFR 45.23(b)

14 CFR 45.29 14 CFR 61.113(a) and (b)

14 CFR 67 14 CFR 91.7(a) 14 CFR 91.9(b)(2) 14 CFR 91.9(c)

14 CFR 91.103 (b)

14 CFR 91.109

14 CFR 91.119

14 CFR 91.121 14 CFR 91.151(a) 14 CFR 91.203(a) and (b) 14 CFR 91.405(a) 14 CFR 91.407(a)(1) 14 CFR 91.409(a)(2) 14 CFR 91.417(a) and (b)

In its Petition, Near Earth describes in detail (i) the Near Earth team th at will operate the Approved sUAS and the members’ respect ive roles and qualifications, ( ii) the proposed sUAS operations for which it seeks approval, and (i ii ) the various safety precautions that will be taken prior to and during the operations. CONFIDENT IAL INFORMATION concerning the proposed sUAS operations, which include s the descriptions of four (4) Appropriate Project Sites, as well as Near Earth’s Operations Manual, which contains training proto cols and preflight procedures, l imitations of o peration for controlling air/ground space for demonstrations, and

maintena nce and operations checklists, is attach ed to this Petition as Exhibit A. Near Earth intends to use these materials as part of its proposed operations, and requests that this

CONFIDENTIAL Exh ibit A not be made public. The materials contained in Exhibit A have previously been submitted to and approved by the FAA as part of Near Earth’s Exemption No.

13248

.

All maintenance, alterations, and preventive maintenance of the Approved sUAS performed by Near Earth will be in accordance with the methods, techniques, and practices prescribed in the above documents. Furthermore, only the Original Equipment Manufacturer (“OEM”) or qualified OEM maintainers will perform higher

- level inspections and mainten ance per the operating documents and OEM standards. Moreover, Near Earth will document and

maintain all maintenance records for the Approved sUAS.2 In support of its exemption request, Near Earth submits that (i) the Approved sUAS have

been found by the F

AA to be safe and reliable , and satisfy the FAA’s a irworthiness assessment

and certification , (ii) the Near Earth Pilot

- in

- Command (“PIC”) and Visual Observer (“VO”) have the requisite knowledge and experience to ensure the safe operation of the proposed s UAS, (iii) the operation procedures and parameters to be employed by Near Earth ensure safe sUAS operations in the NAS, and remove the threat of harm to people and property, including other manned aircraft, and (iv) Near Earth ’s proposed operations, which include without limitation, the

use of the Approved sUAS to conduct aerial demonstrations of Near Earth products and services

in secure demonstration sites for the benefit of prospective customers from a broad industry spectrum, will be safer than that whi ch would be achieved by flying a larger manned aircraft carrying crew and flammable fuel for the same purpose. In addition, permitting use of the Approved sUAS for the purpose of conducting aerial demonstrations, surveying, mapping, inspections, and site m onitoring , and to demonstrate N ear Earth products and services a s well as the adoption and use of these products and services by Near Earth customers, will achieve various economic and environmental benefits, as well as significant efficiencies associated with cost, labor, and safety, that serve the public interest.

A. Proposed sUAS Operations

Near Earth will conduct its sUAS operations using Approved sUAS in compliance with the FAA Notice 8900.227 Sections 12, 13, 14, and 16, issued on July 30, 2013.

The Approved sUAS will be operated at Near Earth

- selected sites by a PIC who will be assisted by a ground

- based VO at all times during the operation. The VO will have a clear visual

line

- of

- sight ( “ VLOS ” ) to the UAV, and will be able to communicate verbally w ith the PIC at all times throughout the sUAS operation. The primary Near Earth PIC holds a FAA commercial

rotary

- wing and instrument rating with military rotorcraft experience. Other prospective Near

Earth PICs have, at minimum, recreational pilot or priva te pilot licenses, which have been deemed sufficient by the FAA for sUAS operations in previously

- granted petitions, provided other qualifications are met. In addition, all Near Earth PICs hold the requisite airman medical certificates, and will demonstrat e, by meeting minimum flight

- hour and currency requirements,

that the Near Earth PICs are able to safely operate the Approved sUAS in a manner consistent with this exemption, including evasive and emergency maneuvers and maintaining appropriate

distances f

rom people, vessels, vehicles, and structures. Both the PIC and VO will have significant experience operating a variety of radio

- controlled model aircraft, including experience operating the Approved sUAS

.

Additional Near Earth operational restrictions for the Approved sUAS that ensure safe flight include:

1. The sUAS will not be flown at night and will be operated under visual meteorological conditions (“VMC”)

.

2. The sUAS will not be flown less than 500 feet below or less than 2,000 feet horizontally

from a cloud or where visibility is at least 3 statute miles from PIC. The use of first

person

- view (“FPV”) by the PIC or VO is not permitted.3 3. Flights will be operated at an altitude of no more than 400 feet Above Ground Level

(“AGL”), with the majority of flig hts anticipated to be operated at no more than 200 feet

AGL.

4. The sUAS will not be flown at an airspeed exceeding the lesser of 87 knots (100 miles an hour) groundspeed , or the maximum UAV operating airspeed recommended by the Approved s UA S manufacturer

.
5. Th e sUAS, including any payload, will weigh less than 55 lbs.

6. The sUAS will be operated within VLOS of the PIC at all times. This requires the PIC to be able to use human vision unaided by any device other than corrective lenses, as specified on the PIC’s F

AA

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

.

7. All operations will utilize a VO. The VO and PIC will be able to communicate verbally at all times. Electronic messaging or texting is not permitted during flight operations. The

PIC will be de signated before the flight and cannot transfer his or her designation for the duration of the flight. The PIC will ensure that the VO can perform the functions prescribed in the operating documents.

8. The operating documents and the grant of exemption will b e accessible during sUAS operations and made available to the Administrator upon request. If a discrepancy exists between the conditions and limitations contained in the grant of exemption and the procedures outlined in the operating documents, the conditi ons and limitations contained in the grant of exemption take precedence and will be followed. Otherwise, Near Earth

will follow the procedures as outlined in its operating documents. Near Earth may update or revise its operating documents, to the extent pe rmitted by Pulse, the sUAS manufacturer. It is Near Earth’s responsibility to track such revisions and present updated and revised documents to the Administrator upon request. Near Earth will also present updated and revised documents if it petitions for e xtension or amendment to the grant of exemption. If Near Earth determines that any update or revision would affect the basis upon which the FAA granted the exemption, then Near Earth will petition for amendment to the grant of exemption. The FAA’s UAS Inte gration Office (AFS

- 80) may be contacted if questions arise regarding updates or revisions to the operating documents.

9. A briefing will be conducted in regard to the planned sUAS operations prior to each day’s activities. It will be mandatory that all perso nnel who will be performing duties in connection with the operations be present for this briefing.

10. Near Earth will file any necessary paperwork in light of the exemptions with the appropriate Flight Standards District Office (“FSDO”).

11. Prior to each flight the PIC will inspect the sUAS to ensure it is in a condition for safe flight. If the inspection reveals a condition that affects the safe operation of the sUAS, the aircraft is prohibited from operating until the necessary maintenance has been performed

an d the sUAS is found to be in a condition for safe flight. The GCS will be included in the preflight inspection. A ll maintenance and alterations will be properly documented in

the aircraft records.

12. Any sUAS that has undergone maintenance or alterations tha t affect the sUAS operation or flight characteristics, e.g. replacement of a flight

- critical component, will undergo a functional test flight. The PIC who conducts the functional test flight will make an entry4 in the aircraft records.

13. The pre

- flight inspec tion will account for all potential discrepancies, e.g. inoperable components, items, or equipment, not already covered in the relevant sections of the operating documents.

14. Near Earth will follow the sUAS manufacturer’s aircraft/component, maintenance,

ove rhaul, replacement, inspection, and life limit requirements.

15. Near Earth will carry out its maintenance, inspections, and record

- keeping requirements, in accordance with the operating documents. Maintenance, inspection, alterations, and status of replaceme nt/overhaul component parts will be noted in the aircraft records, including total time in service, description of work accomplished, and the signature of the authorized person returning the sUAS to service.

16. Each sUAS operated under this exemption will com ply with all applicable Manufacturer Safety Bulletins.

17. The authorized person will make an entry in the aircraft record of the corrective action taken against discrepancies discovered between inspections.

18. The sUAS will have redundancies and an independent f light termination system ( “ FTS ” ) that can be activated manually by the PIC to ensure the overall safety and predictability

of the sUAS.

19. In the event of a loss of communications or signal, the sUAS is programmed to return to

its home base , or other predeter mined location within the private or controlled access

property

.
20. The sUAS will have the capability to abort a flight in case of unexpected situations or emergencies.

21. If the sUAS and its controller disconnect during flight, the system’s failsafe autopilot system will automatically engage, and the helicopter will return to its home base and land automatically, rather than flying off uncontrollably or landing at an unknown location.

22. The sUAS will only be flown (i) in rural areas, away from any urban or conge sted locations, (ii) on secured private property with restricted public access, (iii) in areas located more than 5 miles away from any airport, unless FAA

- conditions are met and relevant approvals or letter of agreements are obtained, (iv) in Class G Airsp ace, and (v) in such locations where the property owner has approved the contemplated sUAS operations.

23. The PIC, VO, and any additional crew members will comply with any additional safety regulations and protocols as may be required by each site where the sUAS is flown.

24. Near Earth will communicate information about specific operations with Air Traffic Control ( “ ATC ” ) nearest to the flight site.

25. Near Earth will submit a precise description of proposed sUAS operations (Plan of Activities) to the local FSDO w ithin 3 days prior to the sUAS operations.

26. Near Earth will obtain a Certificate of Authorization or Waiver (COA) prior to any operations under the grant of exemption, and seeks a “blanket” COA in accordance with5 the interim policy recently announced by th e FAA. This COA will also require the

operator to request a Notice to Airmen ( “ NOTAM ” ) not more than 72 hours in advance, but not less than 48 hours prior to the operation.

27. All aircraft operated in accordance with the exemption will be identified by seri al number, registered in accordance with 14 C.F.R. part 47, and have identification (N

Number) markings in accordance with 14 C.F.R. part 45, Subpart C. Markings will be as large as practicable.

28. Before conducting operations, the radio frequency spectrum u sed for operation and

control of the sUAS will comply with the Federal Communications Commission (“FCC”) or other appropriate government oversight agency requirements.

29. The documents required under 14 C.F.R. 91.9 and 91.203 will be available to the PIC at

t he GCS of the sUAS any time the sUAS is operating. These documents will be made available to the Administrator or any law enforcement official upon request.

30. The sUAS will remain clear and yield the right of way to all manned aviation operations

and activi ties at all times.

31. Written and/or oral permission from the relevant property holders will be obtained, confirmed, and made available in writing upon request.

32. All required permissions and permits will be obtained from territorial, state, county, or city j urisdictions, including local law enforcement, fire, or other appropriate governmental agencies.

33. Any incident, accident, or flight operation that transgresses the lateral or vertical boundaries of the operational area as defined by the applicable COA will be reported to the FAA's UAS Integration Office (AFS

- 80) within 24 hours. Accidents will be reported to the National Transportation Safety Board (“NTSB”) per instructions contained on the

NTSB Web site: www.ntsb.gov

.

B. Relevant Previously

- Granted Exemptions

Near Earth bases its Petition, in part, on several relevant Section 333 petitions that were granted by the FAA in 2014 and 2015 and makes references to these exemptions throughout.

These ex emptions include the follo wing:

1. Exemption No. 13248 to Near Earth for sUAS operations used to conduct aerial

demonstrations

.

2. Exemption No. 11109 (the “Clayco Exemption”) for sUAS operations used to conduct aerial imaging to monitor and ensure the safety of construction sites.

3. Exem ption No. 11114 (the “Woolpert Exemption”) for sUAS operations used to conduct precision aerial surveys over Ship Island, Mississippi.

4. Exemption No. 11062 (the “Astraeus Exemption”) for sUAS operations used for closed set filming for the motion picture ind ustry.6 5. Exemption No. 11136 (the “Advanced Aviation Solutions Exemption”) for sUAS operations used to conduct aerial surveys to support the agriculture industry.

6. Exemption No. 11138 (the “Trudeau Exemption”) for sUAS operations used to

conduct real estate a nd aerial images of Tucson, AZ to use for marketing

purposes.

The FAA granted these exemptions with conditions, having found that the petitioners presented an adequate showing of airworthiness and safety in their described sUAS operation to serve the publ ic interest. Near Earth ’s proposed operation does not differ significantly from the situations presented in the Clayco, Woolpert, and Advanced Aviation Solutions Exemptions. In fact, the proposed Approved sUAS operations establish at least an equivalent le vel of safety to the sUAS operations described in the Clayco, Woolpert, and Advanced Aviation Solutions Exemptions, if not greater, as Near Earth operations are for demonstration purposes only, with the goal of enabling their customers to ultimately benefi t the public in very similar ways to those

outlined in the above

- mentioned Exemptions. Given that Near Earth plans to operate in similarly restricted operating environments, and with the intent of addressing similar markets and operating purposes, and wit h the airmanship skills necessary to operate the sUAS, Near Earth respectfully asks the FAA to grant Near Earth’s Petition.

C

. Recent Changes to the Exemption Process

In April 2015, the FAA used a “summary grant” process to issue 30 Section 333

exempt ion approvals for UAS. Use of this process is likely to speed up the Section 333 exemption process for sUAS operators such as Near Earth . Given that the Near Earth Petition is substantially similar to the previously

- granted exemption requests described abo ve, Near Earth believes that use of the “summary grant” process is appropriate in evaluating this Petition.

More recently , t he Federal Aviation Administration has established an interim policy to speed up airspace authorizations for certain sUAS operato rs who obtain Section 333 exemptions. Under the new policy, the FAA will grant a COA for flights at or below 4 00 feet to any sUAS operator with a Section 333 exemption for aircraft that weigh less than 55 pounds, operate during daytime Visual Flight Rules (“VFR”) conditions, operate within VLOS of the pilots, and stay certain distances away from airports or heliports:

 5 nautical miles (“NM”) from an airport having an operational control tower; or

 3 NM from an airport with a published instrument flight proce dure, but not an operational

tower; or

 2 NM from an airport without a published instrument flight procedure or an operational

tower; or

 2 NM from a heliport with a published instrument flight procedure

The “blanket” 4 00

- foot COA allows flights anywhere in the country except restricted airspace and other areas, such as major cities, where the FAA prohibits UAS operations. Section 333 exemption holders will aut omatically receive a “blanket” 4 00

- foot COA. For new exemption holders, the FAA will issue a COA at the time the exemption is approved. To the extent an7

operator seeks to fly outside the blanket parameters, that operator must obtain a separate COA specific to the airspace required for that operation.

And finally, as of March 2016, the FAA streamlined it s process such that petitions submitted pursuant to Section 333, and granted by the FAA, apply not only to individual classes or models of sUAS, but to Approved sUAS , which are those sUAS that are listed on the FAA’s List of Approved UAS under Section 333

, a list that is updated monthly . Petitioners seeking approval to operate sUAS that are not on the List of Approved UAS under Section 333 are required to submit Section 333 Petitions for such models/classes separately.

Near Earth has been working diligently to comply with the requirements set forth by the FAA prior to these recent changes, and has developed its proposed plan of sUAS operations accordingly. Given that Near Earth’s proposed sUAS operations follow the prior, more stringent requirements, Near Ea rth believes that it has exceeded what is needed to establish the “equivalent level of safety” as it is now interpreted by the FAA. In light of the recent changes made by the FAA, Near Earth requests that the FAA use its “summary grant” authority to

approv e this Petition and issue to Near Earth a “blanket” 4 00

- foot COA.

D. Recent FAA Proposed Rules and Interim Policy

On February 15, 2015, the FAA issued proposed rules for operation and certification of sUAS, under which the Approved sUAS would qualify. (Docket No.: FAA

- 2015

- 0150; Notice

No. 15

- 01 concerning 14 CFR Parts 21, 43, 45, 47, 61, 91, 101, 107, and 183). While these rules have yet to be implemented and therefore do not have the force of law, they are a strong

indication of the FAA’s inclination to allow sUAS operations such as those proposed by Near

Earth

. Near Earth continues to pay close attention to these rules and their development and ultimate implementation.

E. Conclusion

For all the above reasons, Near Earth asks that the FAA gr ant its request for exemption from certain FARs, and approve its operation of the Approved sUAS in the national airspace in

accordance with the limitations and restrictions set forth herein.

II. Legal Basis for the Requested Exemption under Section 333

In 2012, Congress passed the FAA Modernization and Reform Act, mandating the FAA to integrate unmanned aircraft systems (UAS) into the national airspace system (NAS). Section 332 of the Act authorizes the FAA to develop regulations for the civil operation of UAS weighing less than 55 pounds. While the final UAS regulations have not yet been issued by the FAA, Congress, in Section 333 of the Act, directed the FAA to allow the operation of civil sUAS even before such final regulations are completed, to the ex tent that the sUAS operations do not create a hazard to the national airspace system or the public, or pose a threat to national security. 2012 Act, §§ 333(a), (b)(1).8 The FAA has authority pursuant to 49 U.S.C.S 44701(f) to grant an exemption from the

regulations developed for manned aircraft operations (FARs and other requirements) to the extent the FAA finds that the exemption is “in the public interest.” An sUAS operation that is in the public interest has been described as an operation that “falls s quarely within that zone of safety (an equivalent level of safety) in which Congress envisioned that the FAA must, by exemption, allow commercial operations of sUAS to commence immediately.” See Clayco Exemption, p.8.

Section 333 of the Act mandates the Secretary of Transportation to make a case

- by

- case determination of safety concerning proposed sUAS operations, by considering 6 factors. The six factors are (1) size, (2) weight, (3) speed, (4) operational capability, (5) proximity to airports and popula ted areas, and (6) operation within VLOS (2012 Act, §§ 333(c)). Once safe operation of the sUAS is established, the Secretary must then set forth requirements to facilitate the operation

of the sUAS.

III. Identity and Contact Information of the Petitione r

The petitioner is Near Earth Autonomy, Inc., a Pennsylvania corporation with its principal place of business at:

Near Earth Autonomy, Inc. 5001 Baum Blvd, Suite 750 Pittsburgh, PA 15213 Tel: (412) 513

- 6110

Fax: (412) 621

- 4301

Email: dave@nearearth.ae ro Principal Contact: Marcel Bergerman Website: www.nearearthautonomy.com

All questions concerning this Petition may be directed to Justine M. Kasznica, counsel for Near Earth Autonomy, Inc., at:

Justine M. Kasznica, Esq. Saul Ewing LLP

One PPG Place

Suite 3010 Pittsburgh, PA 15222 Tel: (412) 209

- 2537 (office) Fax: (412) 209

- 2588 (fax) jkasznica@saul.com

IV. The Approved sUAS

Near Earth seeks an exemption to operate Approved sUAS

. On October 20, 2015, the FAA granted to Near Earth an exemptio n, Exemption No. 13248, to operate specific

classes/models of sUAS under Section 333 of the FAA Modernization and Reform Act of 20129

( the “ Act ”) for th e purpose of conducting aerial demonstrations, surveying, mapping, inspections, and site monitoring in fu rtherance of Near Earth’s business. However, Near Earth’s Exemption No. 13248 is limited to the Pulse VAPOR 35 and Pulse VAPOR 55 UAS

.

Near Earth now seeks to add additional sUAS models to its inventory, and seeks a n additional Section 333 exemption from the FAA to operate those sUAS that are deemed to be Approved sUAS by the FAA at the time of the proposed Near Earth operation

. The current list of Approved sUAS can be found on the “List of Approved UAS under Section 333,” which is posted at www.regulatio ns.gov under docket number FAA

- 2007

- 3330

, and is updated on a monthly basis

.

The following are the “Near Earth Products and Services” which will be demonstrated using the Approved sUAS :

A. g5 configurable mapping payload: offers the best combination of weig ht, cost, performance, and capabilities. Modular components exist for lidar mapping, multispectral sensing, collision avoidance, and photogrammetry. Five configurations are available with options for higher density and / or more accurate point clouds.

B. g6 configurable mapping payload: similar to g5 (above), this lightweight payload provides indoor/outdoor mapping and inspection capabilities, and consists of

m odular components for lidar mapping, multispectral sensing, collision avoidance, and photogrammetry.

Product brochures containing complete descriptions of the foregoing Near Earth Products or Services are included in Schedule 1, attached hereto.

V. The Proposed sUAS Operation

The Approved sUAS will be used to demonstrate Near Earth products and s ervices, including its software suite payloads which may be purchased by Near Earth customers for the purpose of (i) conducting routine monitoring and (ii) producing high

- resolution and high

- quality, precision aerial acquisitions of project sites for a var iety of industries. Use of the sUAS is a low

cost solution with low environmental impact that protects surveyors from the often hazardous conditions present at various industrial project sites, while optimizing the quality and

effectiveness of the data col lected. Near Earth intends to illustrate this point to prospective customers by demonstrating its products and services designed for optimized safety, reliability, and precision.

A. Selection of Appropriate Project Sites

Near Earth wishes to operate the App roved sUAS for the purpose of demonstrating its product offerings and service capabilities, which can be purchased by customers for the purpose

of conducting aerial acquisitions of project sites in various industries, including in the

construction , mining, natural gas, power, public sector, real estate, and solid waste industries. Typical customer project sites may include: (1) commercial and residential construction sites, (2)10

oil and gas and alternative energy sites, (3) public utility sites, (4) mining s ites, (5) quarries, (6) excavation sites, (7) waste management sites, and (8) other infrastructure development sites.

For the purpose of its demonstration operations, Near Earth will select appropriate project sites based on safety considerations and any restrictions imposed by the FAA that are related to sUAS operations (“Appropriate Project Sites” or “APS”). As such, APS are limited to those project sites that have the following operating environment:

1. APS will be located in rural areas, away from any ur ban or congested locations.

2. APS will be located on secured private property with restricted public access.

3. APS will be located more than 5 miles away from any airport, unless FAA

conditions are met and relevant approvals and/or letter of agreements are

obt ained.

4. APS will be located in Class G Airspace.

5. APS will be such locations where the property owner has approved the contemplated sUAS operations.

Near Earth will not operate the Approved sUAS at project sites that are not determined to

be APS.

To date, Near Earth has identified 4 APS that meet the foregoing requirements, where it seeks to begin its operations to the extent this Petition is granted. These 4 APSs are described with specificity and attac hed hereto as part of Exhibit A . Because private infor mation is contained in these attached APS descriptions, Near Earth asks the FAA to keep this material

confidential. If its Section 333 exemption request is granted, Near Earth intends to expand its sUAS operations to other similar APS within the United Sta tes

.

B. Operator Qualifications

The Approved sUAS will be operated at an APS by a PIC, who will be assisted by a ground

- based VO at all times during the operation. The VO will have a clear visual line

- of

- sight to the sUAS, and will be able to communicate verbally with the PIC at all times throughout the sUAS operation.

The primary Near Earth PIC holds a FAA commercial rotary

- wing and instrument rating with military rotorcraft experience. Other prospective Near Earth PICs have, at minimum, recreational pi lot or private pilot licenses, which have been deemed sufficient by the FAA for sUAS operations in previously

– granted petitions, provided other qualifications are met. In addition, all Near Earth PICs hold the requisite airman medical certificates (althoug h these are no longer necessary under the FAA’s recent changes).

All Near Earth PICs and VOs possess significant experience with and have demonstrated the appropriate skillset needed for flying sUAS. The Near Earth PICs have flown numerous practice fligh ts in remote areas as hobbyists simulating flights for future commercial use to gain familiarization with the characteristics of the sUAS performance under different temperature and weather conditions. Indeed, by meeting minimum flight

- hour and currency re quirements, the11

Near Earth PICs can demonstrate that they are able to safely operate the Approved sUAS in a manner consistent with this exemption, including evasive and emergency maneuvers and maintaining appropriate distances from people, vessels, vehicle s, and structures. In addition, the

Near Earth PICs practice computerized simulated flights to maintain adequate skills and response

reflex time.

With this experience, the Near Earth PICs can achieve an equivalent level of safety as achieved by current re gulations because the risks of the Near Earth PICs operating the proposed

sUAS at the APS are far less than the risk levels inherent in the commercial activities outlined in 14 CFR Part 61, et seq. The Approved sUAS does not carry any pilots or passengers. Moreover, research has shown that a pilot’s license, while helpful, does not ensure remote control piloting skills or safe sUAS operation.

Indeed, the FAA’s changes to the Section 333 exemption request process support Near

Earth ’s position. Those changes allow for sUAS operations by PICs who hold a recreational or sport pilot certificate , certificates that are less costly and easier to obtain than a private pilot license. Additionally, a third class medical certificate is no longer required. Instead, a s UAS operator only needs a valid driver’s license to satisfy the medical requirement. This change is consistent with the agency’s approach for sport pilot certificate holders, who may fly light sport

aircraft with a driver’s license and no FAA medical cert ificate. In keeping with the FAA’s current position, the Near Earth PICs hold, at a minimum, a recreational or sport pilot certification, valid driver’s licenses, and the previously required, but no longer necessary,

medical certifications.

C. Training

If t his Petition is granted by the FAA, the Near Earth PICs and VOs intend to test fly the sUAS outdoors, at the APS described above, or in locations bearing the same characteristics, to gain the requisite experience operating the Approved sUAS

. Near Earth wil l adopt the FAA’s findings regarding sufficient training protocol for its PICs, whatever they may be, prior to conducting any commercial operations of the sUAS, and proposes the following in this regard (taken from the training requirements outlined by the FAA in the Trudeau Exemption, at pages

14

- 15, basing its analysis on the Astraeus Exemption) :
“The PIC must have accumulated and logged at least 25 hours of total time as a UAS rotorcraft pilot including at least 10 hours logged as a UAS pilot with a mult i

- rotor UAS. The PIC must also have accumulated and logged a minimum of 5 hours as a UAS pilot operating the same make and model of UAS to be used for operations under the exemption.

For clarification, these minimum hour requirements will be inclusive rat her than additive; that is, 5 hours using the same system contemplated for operations may be included in the 10 hours of multirotor time and the 10 hours may be included in the total 25 hours of UAS rotorcraft time. In addition to the hour requirements, th e PIC will accomplish 3

take

- offs and landings in the preceding 90 days (for currency purposes).”

This will ensure that the PIC obtains sufficient flight experience to begin using the sUAS outdoors for the specified purposes outlined in this Petition.

D. sUAS Flight Operations12 The purpose of the typical sUAS flight will be to safely, accurately, and efficiently

demonstrate the capabilities of Near Earth products and services, listed in Section IV herein, for sales and marketing purposes. See Schedule 1 fo r Product Brochures of g5 and g6

. Every sUAS flight will use at minimum a two

- man flight crew, including the PIC and

VO.

The standard pre

- flight and operational procedure is as follows:

1. Meet at the APS and complete pre

- flight security, as appropriate f or each APS.

2. Set up a “no

- entry” perimeter around the jobsite forbidding entrance by non

authorized personnel.

3. Verify that the project site is clear of non

- authorized personnel.

4. Drive to the area to be surveyed.

5. Ensure that all necessary equipment, includ ing the Flight Log, operating and flight manuals and checklists, and other documents are readily accessible.

6. The PIC begins to ready sUAS for flight. For detailed procedural rules, the PIC

will refer to and follow any pre

- flight procedures contained in th e Approved

sUAS’ f light or operator’s m anual. Typically, these require the PIC to:

a. Set up the handheld weather station on tripod.

b. Check the airframe, connections, and rotors for any damage during transport to the APS.

c. Calibrate the camera, or other payload system, as applicable.

d. Turn on and ready the GCS.

e. Connect communication antennae to the GCS.

f. Open Ground Station software and pull up the pre

- planned flight path.

g. Remove the battery for flight, measure current voltage, and log findings in the battery manual.

h. Strap the battery securely into the sUAS but do not attach the main power.

i. Move the sUAS to take

- off point, approximately 50 feet from crew.

j. Attach the battery’s main power.

k. Listen to the power up se quence of beeps from the electronic speed control (“ESC”) and motors.

l. Set up a designated 50

- foot (approximate) radius zone around the sUAS. This is the “home” area; operators are not allowed inside this area while the electrical motor is running.

m. Activate engine power without moving the throttle up. Follow Pulse’s compass calibration procedure, which records the “home” point.

n. Using the Ground Control Station, verify connection to the sUAS.13 o. The sUAS should appear on the screen, along wit h a recorded home point, battery voltage, current altitude relative to the ground, and current velocity.

p. Upload the flight path data to the sUAS.

q. Verify good upload and connection.

r. Record the time and weather in the flight l og , a form of whi ch Near Earth has submitted as part of Exhibit A, and a version of which may be co ntained in

the Approved sUAS’ aircraft flight or operator’s m anual.

s. The sUAS is now fully prepared and ready to go.

7. The PIC double checks that the take

- off area is clear of any foreign object debris (“FOD”)

8. At all times, the PIC will refer and follow the takeoff p rocedure contained in the Approved sUAS’ f

light or operator’s m anual

.

9. The PIC commands the aircraft to take off and to fly to the approximate survey

altitude.

10. T he VO verifies that the GCS has a good connection and is tracking the sUAS.

11. The VO or another crew member then begins to test, and/or to demonstrate to a customer, the payload capabilities at a continuous interval.

12. During the mission, the PIC and VO will always have VLOS with the aircraft and the PIC is will be prepared to take over flight operations manually as needed to ensure safe operations.

13. PIC will reference the GCS c hecklist contained in the Approved sUAS’ f light or operator’s m anual , as necessary , throughout the mission.

14. The PIC’s Ground Station has a flight battery monitor which is set to a minimum of 25% battery reserve. The timer begins from the point the throttle is moved out of its start position.

15. During flight, a secondary crew member monit ors the GCS data (voltage, forward velocity, altitude, and estimated remaining time to complete the mission) and relays any sudden changes or alerts to the PIC.

16. As the mission completes, the PIC informs the secondary crew member he is taking back over con trol.

17. The PIC begins to land the sUAS, referencing the landing p rocedure contained in

the Approved sUAS’ f

light or operator’s m anual

.
18. After safely landing, the PIC walks to the aircraft and unplugs the main power. He then makes a determination, based on the data collected and/or payload capability demonstration, whether the mission was successful.

19. If successful, the VO or any other crewmember leaves to go pick up ground control points (“GCPs”), if any.14 20. The PIC checks battery voltage and records the valu e in the battery log.

21. The PIC records the flight time in the flight l og.

22. The PIC turns off the GCS and any payload (if applicable).

23. The PIC checks the airframe for any damage or loose connections resulting from the flight, and records any findings.

24. The PIC packs all equipment for transport.

VI. The Approved sUAS Equivalent Level of Safety

Near Earth proposes that the exemptions requested herein apply to civil aircraft that have the characteristics and that operate within the limitations listed herein. These limitations provide for at least an equivalent or higher level of safety to operations under the current regulatory

structure.

The limitations and conditions to which Near Earth agrees to be bound when conducting commercial operations under an FAA issued exemption include:

1. The sUAS will not be flown at night and will be operated under visual meteorological conditions (“VMC”)

.

2. The sUAS will not be flown less than 500 feet below or less than 2,000 feet horizontally

from a cloud or where visibility is at least 3 statute miles from PIC. The use of first

person

- view (“FPV”) by the PIC or VO is not permitted.

3. Flights will be operated at an altitude of no more than 400 feet Above Ground Level (“AGL”), with the majority of flights anticipated to be operat ed at no more than 200 feet

AGL.

4. The sUAS will not be flown at an airspeed exceeding the lesser of 87 knots (100 miles an hour) groundspeed , or the maximum UAV operating airspeed recommended by the Approved sUAS manufacturer

.
5. The sUAS, including any payloa d, will weigh less than 55 lbs.

6. The sUAS will be operated within VLOS of the PIC at all times. This requires the PIC to be able to use human vision unaided by any device other than corrective lenses, as specified on the PIC’s FAA

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

.

7. All operations will utilize a VO. The VO and PIC will be able to communicate verbally at all times. Electronic messaging or texting is not permitted during flight operations. The

PIC will be designated before the flight a nd cannot transfer his or her designation for the duration of the flight. The PIC will ensure that the VO can perform the functions prescribed in the operating documents.

8. The operating documents and the grant of exemption will be accessible during sUAS

ope rations and made available to the Administrator upon request. If a discrepancy exists between the conditions and limitations contained in the grant of exemption and the procedures outlined in the operating documents, the conditions and limitations containe d in the grant of exemption take precedence and will be followed. Otherwise, Near Earth

will follow the procedures as outlined in its operating documents. Near Earth may update15 or revise its operating documents, to the extent permitted by Pulse, the sUAS

m anufacturer. It is Near Earth’s responsibility to track such revisions and present updated and revised documents to the Administrator upon request. Near Earth will also present updated and revised documents if it petitions for extension or amendment to the grant of exemption. If Near Earth determines that any update or revision would affect the basis upon which the FAA granted the exemption, then Near Earth will petition for amendment to the grant of exemption. The FAA’s UAS Integration Office (AFS

- 80) may be contacted if questions arise regarding updates or revisions to the operating documents.

9. A briefing will be conducted in regard to the planned sUAS operations prior to each day’s activities. It will be mandatory that all personnel who will be performing duties in connection with the operations be present for this briefing.

10. Near Earth will file any necessary paperwork in light of the exemptions with the appropriate Flight Standards District Office (“FSDO”).

11. Prior to each flight the PIC will inspect the sUA S to ensure it is in a condition for safe flight. If the inspection reveals a condition that affects the safe operation of the sUAS, the aircraft is prohibited from operating until the necessary maintenance has been performed

and the sUAS is found to be in a condition for safe flight. The GCS will be included in the preflight inspection. A ll maintenance and alterations will be properly documented in

the aircraft records.

12. Any sUAS that has undergone maintenance or alterations that affect the sUAS operation or flight characteristics, e.g. replacement of a flight

- critical component, will undergo a functional test flight. The PIC who conducts the functional test flight will make an entry

in the aircraft records.

13. The pre

- flight inspection will account for all po tential discrepancies, e.g. inoperable components, items, or equipment, not already covered in the relevant sections of the operating documents.

14. Near Earth will follow the sUAS manufacturer’s aircraft/component, maintenance, overhaul, replacement, inspecti on, and life limit requirements.

15. Near Earth will carry out its maintenance, inspections, and record

- keeping requirements, in accordance with the operating documents. Maintenance, inspection, alterations, and status of replacement/overhaul component parts will be noted in the aircraft records, including total time in service, description of work accomplished, and the signature of the authorized person returning the sUAS to service.

16. Each sUAS operated under this exemption will comply with all applicable Manu facturer Safety Bulletins.

17. The authorized person will make an entry in the aircraft record of the corrective action taken against discrepancies discovered between inspections.

18. The sUAS will have redundancies and an independent flight termination system ( “ F TS ” ) that can be activated manually by the PIC to ensure the overall safety and predictability

of the sUAS.

19. In the event of a loss of communications or signal, the sUAS is programmed to return to

its home base , or other predetermined location within the pr ivate or controlled access16 property

.

20. The sUAS will have the capability to abort a flight in case of unexpected situations or emergencies.

21. If the sUAS and its controller disconnect during flight, the system’s failsafe autopilot system will automatically en gage, and the helicopter will return to its home base and land automatically, rather than flying off uncontrollably or landing at an unknown location.

22. The sUAS will only be flown (i) in rural areas, away from any urban or congested locations, (ii) on secu red private property with restricted public access, (iii) in areas located more than 5 miles away from any airport, unless FAA

- conditions are met and relevant approvals or letter of agreements are obtained, (iv) in Class G Airspace, and (v)

in such locatio ns where the property owner has approved the contemplated sUAS operations.

23. The PIC, VO, and any additional crew members will comply with any additional safety regulations and protocols as may be required by each site where the sUAS is flown.

24. Near Earth w ill communicate information about specific operations with Air Traffic Control ( “ ATC ” ) nearest to the flight site.

25. Near Earth will submit a precise description of proposed sUAS operations (Plan of Activities) to the local FSDO within 3 days prior to the sU AS operations.

26. Near Earth will obtain a Certificate of Authorization or Waiver (COA) prior to any operations under the grant of exemption, and seeks a “blanket” COA in accordance with the interim policy recently announced by the FAA. This COA will also r equire the operator to request a Notice to Airmen ( “ NOTAM ” ) not more than 72 hours in advance, but not less than 48 hours prior to the operation.

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

Number) markings in accordance with 14 C.F.R. part 45, Subpart C. Markings will be as large as practicable.

28. Before conducting operations, the radio frequency spectrum used for operation and

contro l of the sUAS will comply with the Federal Communications Commission (“FCC”) or other appropriate government oversight agency requirements.

29. The documents required under 14 C.F.R. 91.9 and 91.203 will be available to the PIC at the GCS of the sUAS any time the sUAS is operating. These documents will be made available to the Administrator or any law enforcement official upon request.

30. The sUAS will remain clear and yield the right of way to all manned aviation operations

and activities at all times.

31. Written and/or oral permission from the relevant property holders will be obtained, confirmed, and made available in writing upon request.

32. All required permissions and permits will be obtained from territorial, state, county, or city jurisdictions, including loca l law enforcement, fire, or other appropriate governmental agencies.17 33. Any incident, accident, or flight operation that transgresses the lateral or vertical

boundaries of the operational area as defined by the applicable COA will be reported to

the FAA's UA S Integration Office (AFS

- 80) within 24 hours. Accidents will be reported to the National Transportation Safety Board (“NTSB”) per instructions contained on the

NTSB Web site: www.ntsb.gov

.
Satisfaction of the criteria provided in Section 333 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

— provides more than adequate justification for the gra nt of the requested exemption allowing commercial operation of the sUAS pursuant to the rules of operation described herein.

Additional information concerning the sUAS operational procedures is included in the respective Approved sUAS manufacturing and u ser m anual s , as well as Near Earth’s training protocols and pr eflight procedures , and maintenance and operations checklists, attached to this Petition as Exhibit A, which Near Earth requests not to be made public.

VII. Privacy

There is little risk that the proposed use of the Approved sUAS will result in any privacy violations because all flights will occur over private or controlled access property with the property owner’s prior consent and knowledge. In addition, similar to the manned aerial acquisit ion flight operations that have been conducted for decades, Near Earth ’s proposed operation of the Approved sUAS will not implicate any privacy issues. Specifically, the Approved sUAS will only be operated pursuant to (i) the specific conditions and limit ations set forth herein, and (ii) in accordance with the Federal Aviation Regulations, to the extent not exempted.

VIII. Public Interest and Safety

Various industries routinely utilize workers on the ground to monitor, take photos, and conduct surveys of project sites. Project sites in the oil and gas, power, mining, excavation, and construction industries are known to be unsafe. Hazards at these sites include (1) exposure to dangerous chemicals, (2) unsafe ground conditions due to uneven terrain, debr is, construction materials, and heavy equipment that lead to on

- site injuries, and (3) extreme temperatures which can lead to related illness and injury. Near Earth develops payloads for use with sUAS to address these issues, and seeks to demonstrate the capabilities of its products and services to prospective customers engaged in the aforementioned hazardous activities and who expose workers to the various hazards, with the intent to have their products and services render the

activities safer for humans.

Use of the Approved sUAS in connection with the demonstration of Near Earth ’s products and services will increase ground safety by ultimately being used by customers to reduce ground surveying and the hazards associated therewith. By using sUAS over the project sites, rather than putting workers on the ground, the hazards stemming from these conditions will be removed. This public benefit cannot be achieved if companies like Near Earth cannot responsibly test and demonstrate the capabilities of cutting

- ed ge commercial technologies whose very purpose is to address these safety concerns.

The use of the sUAS for these purposes will achieve significant economic efficiencies as18

well. By demonstrating its products and services in flight using a sUAS, Near Earth can reduce the time required for product optimization by obtaining customer feedback quicker in a far more

cost

- effective way than demonstrating the capabilities using manned aircraft. Indeed, some of the products and services are specifically designed fo r use with a sUAS, and need to be tested with a

sUAS. The end

- users ( Near Earth customers and their customers) will derive economic benefit as well. By reducing the time and cost, and by improving the effectiveness of aerial data acquisition, end users wil l reduce costs to their customers, bring in more business, and provide greater job stability to their employees, which will ultimately contribute to the growth of the U.S. economy. Finally, as mentioned before, inspections and monitoring of project sites b y the sUAS will help end

- users identify dangerous conditions, and may prevent serious injury to employees

and other on

- site and near

- site personnel. Improved financial performance through the commercial use of sUAS will help provide a stable workforce that increases consumer spending; improves local, state, and federal tax revenues; and allows companies to invest in research and development in order to remain competitive.

For all these reasons, the sUAS operations contemplated by Near Earth achieve a leve l of safety equal to or greater than that which would be achieved by flying a much larger manned aircraft carrying crew and flammable fuel for the same purposes.

IX. Exemptions Requested under Section 333

Near Earth requests that an exemption be granted from the following regulations:

A. 14 CFR Part 21

B. 14 CFR 43.7

C. 14 CFR 43.11

D. 14 CFR 45.11

E. 14 CFR 45.21

F. 14 CFR 45.23(b)

G. 14 CFR 45.29

H. 14 CFR 61.113(a) and (b)

I. 14 CFR 67

J. 14 CFR 91.7(a)

K. 14 CFR 91.9(b)(2)

L. 14 CFR 91.9(c)

M. 14 CFR 91.103(b)

N. 14 CFR 91.109

O. 14 CFR 91.119

P. 14 CFR 91.121 Q. 14 CFR 91.151(a)

R. 14 CFR 91.203(a) and (b)

S. 14 CFR 91.405(a) 14 CFR 91.407(a)(1) 14 CFR 91.409(a)(2) 14 CFR 91.417(a) and (b)

The regulations and the basis for an exemption are set forth as follows.19 A. 14 CFR Part 21 Certification Procedure s for Products and Parts

— prescribes the procedural requirements for issuing and changing design approvals, production approvals, airworthiness certificates, and airworthiness approvals.

Near Earth requests an exemption from 14 CFR Part 21 to the extent a pplicable. This exemption meets the requirement for an equivalent level of safety pursuant to Section 333 based on the small size, light weight, relatively slow speed, safety and fail

- safe system specifications of

the Approved sUAS , and its use in controll ed rural environments on private land with restricted public access, as described previously in this Petition. Moreover, the Approved sUAS carries no fuel and is therefore not at risk of fuel spillage and fire in the event of an accident.

If the exemption is granted, and an airworthiness certificate is not required, noise certification and testing also will not be required. See FAA, Public Guidance for Petitions for Exemption Filed Under Section 333 (September 25, 2014), at 4. In any event, the Approved

sU A S are small, battery powered system s designed to emit very little noise.

Notwithstanding the foregoing, the FAA has previously determined that relief under Part 21 is not necessary for petitioners who have presented facts substantially similar to those presented by Near Earth . (See Exemption Nos. 11109, 11114, 11062, 11136, 11138, referenced in Section I, above).

B. 14 CFR 43.7 Persons authorized to approve aircraft, airframes, aircraft engines, propellers, appliances, or component parts for return to serv ice after maintenance, preventive maintenance, rebuilding, or alteration

— provides that the holder of a mechanic certificate or a repair station certificate may approve an aircraft, airframe, aircraft engine, propeller, appliance, or component part for retu rn to
service.

Near Earth requests an exemption from 14 CFR 43.7. The Approved sUAS are generally comprised of parts and components that are not dissimilar from a model aircraft, and the contemplated operators of the Approved sUAS , who will maintain and w hen necessary repair the sUAS, have engineering degrees. The operators will conduct inspections and maintenance based on maintenance guidelines contained in Exhibit A , or any maintenance requirements provided by the manufacturers of the Approved sUAS

. The capabilities of these operators to maintain and repair the Approved sUAS will meet the requirements for an equivalent level of safety pursuant to Section 333 for the type of sUAS, its intended use, and the intended operating environment

and locations.

C. 14 CFR 43.11 Content, form, and disposition of records for inspections conducted under parts 91 and 125

— provides, in pertinent part, that maintenance record entries be maintained and a record for the listing of discrepancies and placards by inspectors be main tained.

Near Earth requests an exemption from 14 CFR 43.11. The FAA has previously exempted Aprroved sUAS from this FAR

. Notwithstanding the foregoing, Near Earth will keep log books of all maintenance and repairs, and such log books will be available at each project site during the sUAS operations.20 D. 14 CFR 45.11 Marking of Products

— prescribes, in pertinent part, that the manufacturers of aircraft, engines and propellers mark such aircraft, engines, or propellers with an approved fireproof identification p late.

Near Earth requests an exemption from 14 CFR 45.11. The Approved sUAS , due to their small size, do not have room for fireproof identification plates to be placed in it. Any required fireproof identification plates could become hazardous due to the a dditional weight and strain placed on the sUAS.

E. 14 CFR 45.21 General

— prescribes, in pertinent part, that no person may operate a

U.S.

- registered aircraft unless that aircraft displays nationality and registration marks in accordance with the requirement s of this section and §§45.23 through 45.33.

Near Earth requests an exemption from 14 CFR 45.21. Near Earth will obtain a proper registration mark for the Approved sUAS, but will display it only to the extent practicable and as approved by the FAA

.

F. 14 CFR 45.23(b) Display of Marks; general

— prescribes, in pertinent part, that when marks include only the Roman capital letter “N” and the registration number is displayed on limited, restricted, or 2 light

- sport category aircraft or experimental or provision ally certificated aircraft, the operator must also display on that aircraft near each entrance to the cabin, cockpit, or pilot station, in letters not less than 2 inches nor more than 6 inches high, the words “limited,” “restricted,” “light

- sport,” “experi mental,” or “provisional,” as applicable.

Near Earth requests an exemption from 14 CFR 45.23(b), to the extent applicable. The Approved sUAS center airframe is less than 23” in height. Due to its small size, the Approved

sUAS typically do not have room to display aircraft marks in a conventional size. However, as a condition to the approval of exemption, Near Earth is willing to affix an appropriately sized

aircraft mark to the Approved sUAS mainframe.

The word “Experimental” (as applicable) will be plac ed on the center frame of the Approved sUAS in compliance with §45.29(f). However, a partial exemption from this display regulation is requested as the sUAS will have no entrance to the cabin, cockpit or pilot station on which the words such as “Experiment al” can be placed. Given the size of the sUAS, two

- inch lettering will be impossible.

The equivalent level of safety will be provided by having the Approved sUAS marked on its center frame as required by §45.29 (f), where the PIC, observer and others wor king with the sUAS will see the identification of the sUAS. The requested exemption is consistent with previous exemptions issued by the FAA

— the FAA has previously determined that relief under 14 CFR 45.23(b) is not necessary for petitioners who have facts substantially similar to those presented by Near Earth . (See Exemption Nos. 11109, 11114, 11062, 11136, 11138, referenced in Section I, above).

G. 14 C.F.R. 45.29: Size of Marks

— prescribes , in pertinent part, that the registration

marks for rotorcraft mu st be at least 12 inches high.

Near Earth requests an exemption from 14 CFR 45.29. The Approved sUAS , due to its small size, does not have any surface area large enough to display marks that are 12 inches high.21

As a condition to the approval of exemption, however, Near Earth is willing to affix an aircraft mark to the main frame of the sUAS. The size of the marking will be determined by the

mainframe size.

H. 14 CFR 61.113(a) and (b) Private pilot privileges and limitations: Pilot in

command

—

prescribe th at (a) No person who holds a private pilot certificate may act as a pilot in command (PIC) of an aircraft that is carrying passengers or property for compensation or hire; nor may that person, for compensation or hire, act as the PIC of an aircraft; (b) A private pilot may, for compensation or hire, act as PIC of an aircraft in connection with any business or employment if (1) the flight is only incidental to that business or employment; and (2) the aircraft does not carry passengers or property for compens ation or hire.

Near Earth requests an exemption from 14 C.F.R. 61.113. Under § 61.113 (a) and (b) private pilots are limited to non

- commercial operations. However, the Near Earth PIC can achieve an equivalent level of safety as achieved by current regulati ons because the Approved

sUAS does not carry any pilots or passengers. Furthermore, a pilot license does not ensure adequate remote control piloting skills; only RC operating experience can establish such skills.

For conducting safe sUAS operations, it is more important that the PIC of the sUAS be experienced, particularly with the sUAS at issue, than for the PIC to have a pilot’s license. The PICs operating under this exemption will be experienced. Near Earth has demonstrated that its PICs hold, at mini mum, a recreational pilot’s license, and have flown numerous practice flights in remote areas as a hobbyists simulating flights for future commercial use to gain familiarization with the characteristics of the sUAS performance under different temperature a nd weather

conditions. The Near Earth PICs also practices computerized simulated flights to maintain adequate skills and response reflex time. Finally, the Near Earth PICs have many years of recreational sUAS flight experience and a deep knowledge of sUAS systems, and, therefore, meet or exceed the present level of safety envisioned under this Section.

Near Earth recognizes that the FAA, in addressing other Section 333 exemption requests, has made it clear that it does not have the requisite authority to exempt a petitioner from the statutory requirement to hold an airman certificate under 49 USC § 44711, and has found that a pilot certificate would ensure that a PIC passes the security screening of the Department of Homeland Security. In April 2015, h owever, the FAA relaxed its position and changed the Section 333 exemption request process to allow PICs with sport or recreational pilot licenses to conduct sUAS operations such as those help by Near Earth PICs. The FAA also eliminated the

need for a PIC to hold a third class medical certificate. Currently, a valid driver’s license is satisfactory for a PIC to satisfy any medical requirements and Department of Homeland Security screening.

I. 14 CFR Part 67 Medical Standards and Certification

— gives the FAA the authority to issue the necessary medical standards and certifications for pilots. FAA Notice 8900.227, paragraph 16.c.(4) PIC Medical, states, in pertinent part, that the PIC must maintain, at a minimum, a valid FAA second

- class medical certificate

is sued under 14 CFR Part 67, Medical Standards and Certification, or the FAA

recognized equivalent. Paragraph 16.e.(1) of the same Notice requires, in pertinent22 part, that all observers must have a valid FAA second

- class medical certificate issued under part 67; an FAA

- recognized equivalent is an acceptable means of demonstrating compliance with this requirement. The FAA notes that the notice referenced above is now incorporated into FAA Order 8900.1, vol. 16, ch. 4., sec. 1.

Near Earth requests an exemptio n from FAA Notice 8900.227, paragraph 16.c.(4) and 16.e.(1) which requires that a PIC require a valid FAA second

- class medical certificate under 14

CFR 67. Near Earth ’s currently contemplated PICs currently hold a valid FAA medical

certificate. Notwithstan ding the foregoing, Near Earth respectfully submits that a second

- class medical certificate is unwarranted in this instance because (i) the sUAS is no different a model aircraft, weighs less than 55 lbs. including payload, and will not carry any pilot or p assengers, (ii) the area of operation is controlled and restricted, and (iii) all flights will be planned and

coordinated in advance with an auto

- pilot feature and fail

- safe programs to account for user

error. There is little chance that the medical condit ion of the PIC will affect the Approved sUAS operations in any unsafe or damaging way.

More importantly, in light of the FAA’s recent decision to allow PICs to operate sUAS with only a valid driver’s license and without a third class medical certificate

, Near Earth asks that the FAA grant it the same relief from FAA Notice 8900.227, paragraph 16.c.(4) and 16.e.(1), that it has granted to other petitioners who presented substantially similar facts to that of Near

Earth

.

J. 14 CFR 91.7(a) Civil aircraft airworthiness

— prescribes that no person may operate a civil aircraft unless it is in an airworthy condition.

Near Earth requests an exemption from 14 CFR 91.7(a). Currently there is no standard for determining the airworthiness of a sUAS, and no airworthi ness certificate can be issued for

the Approved sUAS should this exemption be granted.

An equivalent level of safety is met, given the size, weight, and performance specifications of the Approved sUAS , as well as the requirements contained in the flight operations described above, including the maintenance procedures and use of safety check lists prior to each flight that ha ve been submitted as part of Exhibit A, which Near Earth requests be kept confidential

.

K. 14 CFR. 91.9(b)(2 ) Civil aircraft flight manual, marking, and placard requirements

—

prescribes, in pertinent part, that no person may operate U.S.

- registered civil aircraft unless there is available in the aircraft a current approved Airplane or Rotorcraft Flight Manual, approved manual material, markings, and placards, or any combination thereof. Approvals are granted under 14 CFR 91.203 (a) and (b).

Near Earth requests an exemption from 14 CFR 91.9(b)(2). First, there is currently no approval process for Airplane or Rotorcraft Flight Manuals fo r sUAS beyond the Section 333 Exemption process . Second, the FAA has previously determined that relief from this section is not required, provided that relevant materials are kept in a location accessible to the PIC in compliance with the regulations. See the Trudeau Exemption at pg. 17. Near Earth has provided a flight operations manual and relevant materials for use during the sUAS operations, which it23

requires to be readily accessible to the PIC and VO during all sUAS operations.

L. 14 C.F.R. 91.9(c) Ci vil aircraft flight manual, marking, and placard requirements

—

prescribes that “(c) No person may operate a U.S.

- registered civil aircraft unless that aircraft is identified in accordance with part 45 of this chapter.”

Near Earth requests an exemption fro m 14 CFR 91.9(c). As previously stated, there is no current registration process for sUAS; and the Approved sUAS , due to its small size, does not have room to contain fireproof placard or to display aircraft marks in a conventional size. However, as a cond ition to the approval of petition, Near Earth is willing to affix an appropriately sized aircraft mark to the mainframe of the sUAS, if necessary.

M. 14 CFR 91.103(b)(2) Preflight action

— prescribes that each PIC shall, before beginning a flight, become fa miliar with all available information concerning that flight. This information must include... (b) For any flight, runway lengths at airports of intended use, and the following takeoff and landing distance information: (1) For civil aircraft for which an app roved Airplane or Rotorcraft Flight Manual containing takeoff and landing distance data is required, the takeoff and landing distance data contained therein; and (2) For civil aircraft other than those specified in paragraph (b)(1) of this section, other r eliable information appropriate to the aircraft, relating to aircraft performance under expected values of airport elevation and runway slope, aircraft gross weight, and wind and temperature.

Near Earth requests an exemption from 14 CFR 91.103(b)(2). Curr ently, there is no approval process for Airplane or Rotorcraft Flight Manuals. However, the Near Earth PIC will, prior to conducting any sUAS operations, become familiar with all available information concerning that flight. Such actions, described at leng th in this Petition, will include reviewing weather conditions and visibility, flight battery life, landing and takeoff distances, and all other aircraft performance data prior to any sUAS operations. The flights of the Approved sUAS will only be conducted at APS, with the PIC and VO having extensive knowledge of the operating

environment.

N. 14 CFR 91.109 Flight instruction; Simulated instrument flight and certain flight

tests

— prescribes, in pertinent part, that no person may operate a civil aircraft (exc ept a manned free balloon) that is being used for flight instruction unless that aircraft has fully functioning dual controls.

Near Earth requests an exemption from 14 CFR 91.109. Remotely piloted aircraft, including the Approved sUAS , are designed and co nstructed without dual controls. Flight control will be accomplished through the use of a control box that communicates with the aircraft via radio communications. The equivalent level of safety is provided by the limited size and speed of

the aircraft and by the fact that neither a pilot nor passengers will be carried in the aircraft. Moreover, the Approved sUAS has a control system with four modes that allows for varying mission control to achieve maximum safety and controlled operation of the Approved sU AS

.
O. 14 CFR 91.119 Minimum safe altitudes: General

— prescribes that, except when necessary for takeoff or landing, no person may operate an aircraft below the following altitudes: (a) Anywhere. An altitude allowing, if a power unit fails, an emergency l anding without undue hazard to persons or property on the surface. (b) Over congested areas. Over any congested area of a city, town, or settlement, or over24 any open

- air assembly of persons, an altitude of 1,000 feet above the highest obstacle

within a hor izontal radius of 2,000 feet of the aircraft. (c) Over other than congested areas. 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 p erson, vessel, vehicle, or structure. (d) Helicopters, powered parachutes, and weight

- shift

- control aircraft. If the operation is conducted without hazard to persons or property on the surface ... (1) A helicopter may be operated at less than the minimums pr escribed in paragraph (b) or paragraph (c) of this section, provided each person operating the helicopter complies with any routes or altitudes specifically prescribed for helicopters by the FAA; and (2) A powered parachute or weight

- shift

control aircraft may be operated at less than the minimums prescribed in paragraph (c) of this section.

Near Earth requests an exemption from 14 CFR 91.119. Near Earth will not operate the Approved sUAS at an altitude higher than 400 feet AGL. Furthermore, while Near Ea rth will not be operating over any congested areas, the sUAS will necessarily be flown within 500 feet of the structures it will be examining.

The requirements set out in this petition for the sUAS operations contemplated by Near

Earth provide for an equ al or greater level of safety than that which would be provided by the operation of manned aircraft maintaining a distance of at least “500 feet to any person, vessel, vehicle, or structure,” in light of the small size and relatively light weight of the sU AS, the close monitoring of the flight by both the PIC and the secondary ground crew member, the remote and secured nature of the operating environment, and the other detailed operating limitations

described in this Petition.

P. 14 CFR 91.121 Altimeter se ttings

— prescribes, in pertinent part, 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.”

Near Earth requests an exemption from 14 CFR 91.121. Near Earth will not operate the Approved sUAS above 400 feet AGL, nor will it operate the sUAS at a sustained cruising altitude like a manned aircraft. The laptop used in the ground station has live feedback information about the sUAS operation, including but not limited to, the altitude of the sUAS, its forward velocity, and the compass heading. The PIC will be able to observe and control the maximum altitude of the sUAS at all times. Additionally, the sUAS will be operated within the line of sight. For all these reasons, an equivalent level of safety to that contemplated by Section 91.121 will be provided.

Q. 14 CFR 91.151(a) Fuel requirements for flight in VFR conditions

— prescribes that no person may begin a flight in an airplane under visual flight rules (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 fl y after that for at least 30 minutes; or (2) At night, to fly after that

for at least 45 minutes.

Near Earth requests an exemption from 14 CFR Part 91.151(a). The Approved sUAS will be operated in a manner that is at least as safe as the operation of a ma nned aircraft complying25

with Part 91.151(a) because the sUAS will only be flown in daylight, and the short distances over which the sUAS will be operated (substantially less than one mile) will allow the sUAS to be flown to a safe landing point within the area of operation in a short period of time.

During the entire pre

- programmed flight, the PIC will always have a visual line of sight and be prepared to take over. The PIC’s GCS has a flight count down timer, which is set to a minimum of 25% battery rese rve; more than enough to safely fly the sUAS back to the designated “home” area.

Given the limited size and speed of the sUAS, its ability to land safely almost anywhere, the fact that it will be under the PIC and VO’s visual observation at all times, an d will be operated in a tightly controlled area, where all people other than the PIC and VO will be removed before flight, permitting its operation with less than 30 minutes of reserve “fuel” (battery life) does not engender the type of risks that Section 91.151(a) was intended to alleviate.

R. 14 CFR 91.203(a) and (b ) Civil aircraft: Certifications required

— . Section 91.203(a) prescribes, in pertinent part, that no person may operate a civil aircraft

unless it has within it

— (1) An appropriate and current airworthiness certificate; and (2) An effective U.S. registration certificate issued to its owner or, for operation within the United States, the second copy of the Aircraft Registration Application as provided for in § 47.31(c). Section 91.203(b) prescrib es, in pertinent part, that no person may operate a civil aircraft unless the airworthiness certificate or a special flight authorization issued under § 91.715 is displayed at the cabin or cockpit entrance so that it is legible to passengers or crew.

Near Earth requests an exemption from 14 CFR 91.203(a) and (b). First, there currently are no procedures set forth by the FAA for providing airworthiness certificates for sUAS (beyond the Section 333 exemption process) . As a condition to the approval of exempt ion, however, Near

Earth will display on the sUAS a registration certificate or equivalent that is issued by FAA pursuant to this petition at the ground point control, where the operator will have immediate

access to it.

Second, the UAV that Near Earth w ill use weighs less than 55 pounds, and has an equivalent, if not greater, level of safety as manned aircraft with an airworthiness certificate. The flight controller and GCS provides a number of safety features in addition to acting as the

command and sUA S controller. Because of the use of GPS with the sUAS, the operator will set the initial location of flight takeoff (“Home” Waypoint) and if the radio control link is broken, the flight controller will recognize this broken control link and cause the UAV t o automatically return to the Home waypoint as recorded by the GPS instrumentation.

In the restricted environment and under the conditions proposed, operation of the sUAS will be at least as safe as a conventional aircraft (fixed wing or rotorcraft) oper ating with an airworthiness certificate, but without the restrictions and conditions proposed by Near Earth

. Near Earth will not accept assignments from clients who are within 5 miles of controlled airspace without first gaining written and/or oral permiss ion from air traffic control (ATC) , and obtaining a letter of agreement from airport management

.
The Approved sUAS to be operated hereunder is less than 55 pounds inclusive of batteries and technical payload, carries neither a pilot nor passengers, and c arries no explosive materials or flammable liquid fuels. The Approved sUAS will be tightly controlled and26

monitored by the PIC and VO, and under the requirements and in compliance with local public safety requirements, to provide security for the area of o peration. The FAA will have advance notice of all operations. These safety enhancements provide a greater degree of safety to the public and property owners than conventional operations conducted with airworthiness certificates. Lastly, application of thes e same criteria demonstrates that there is no credible threat to national security posed by the Approved sUAS , due to its size, speed of operation, location of operation, lack of explosive materials or flammable liquid fuels, and inability to carry a

subst antial payload.

S. 14 CFR 91.405(a) Maintenance Required, 91.407(a)(1) Operation after maintenance, preventive maintenance, rebuilding, or alteration, 91.409(a)(2) Inspections, 91.

- 417(a) and (b) Maintenance Records

— Section 91.405(a) prescribes, in pertin ent part, that each 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 prescribe d in part 43, Maintenance, Preventive, Maintenance, Rebuilding, and Alteration. Section 91.407(a)(1) prescribes that no person may operate any aircraft that has undergone maintenance, preventive maintenance, rebuilding, or alteration unless it has been app roved for return to service by a person authorized under § 43.7 of this chapter. Section 91.409(a)(2) prescribes, in pertinent part, that no person may operate an aircraft unless, within the preceding 12 calendar months, it has had an inspection for the is suance of an airworthiness certificate in accordance with part 21. Section 91.417(a) and (b) prescribe, in pertinent part, that ... (a) Each registered owner or operator shall keep the following records for the periods specified in paragraph (b) of this sect ion: (1) Records of the maintenance, preventive maintenance, and alteration and records of the 100

- hour, annual, progressive, and other required or approved inspections, as appropriate, for each aircraft (including the airframe) and each engine, propeller, rotor, and appliance of an aircraft. The records

will include ... (i) a description (or reference to data acceptable to the Administrator) of the work performed; (ii) the date of completion of the work performed; and (iii) the signature and certificate numb er of the person approving the aircraft for return to service. (2) Records containing the following information: (i) The total time in service of the airframe, each engine, each propeller, and each rotor. (ii) The current status of

life

- limited parts of ea ch airframe, engine, propeller, rotor, and appliance. (iii) The time since last overhaul of all items installed on the aircraft that are required to be overhauled on a specified time basis. (iv) The current inspection status of the aircraft, including the time since the last inspection required by the inspection program under which the aircraft and its appliances are maintained. (v) The current status of applicable airworthiness directives (AD) and safety directives including, for each, the method of compli ance, the AD or safety directive number and revision date. If the AD or safety directive involves recurring action, the time and date when the next action is required. (vi) Copies of the forms prescribed by § 43.9(d) for each major alteration to

the airfra me and currently installed engines, rotors, propellers, and appliances. (b) The owner or operator shall retain the following records for the periods prescribed: (1) The records specified in paragraph (a)(1) of this section shall be retained until the

work is repeated or superseded by other work or for 1 year after the work is performed. (2) The records specified in paragraph (a)(2) of this section shall be27 retained and transferred with the aircraft at the time the aircraft is sold. (3) A list of

defects fur nished to a registered owner or operator under § 43.11 shall be retained until the defects are repaired and the aircraft is approved for return to service.

Near Earth requests an exemption from 14 CFR 91.405(a), 91.407(a)(1), 91.409(a)(2),

91.

- 417 (a) and (b)

. Near Earth respectfully submits that it has demonstrated in its Petition that the capability of the PIC and sUAS operators to maintain and repair the Approved sUAS meets Section 333’s requirement for an equivalent level of safety. The PIC will perform routine maintenance and inspection of the Approved sUAS and be authorized to approve the Approved

sUAS for return to service. Additionally, the PIC will ensure that the Approved sUAS is in an airworthy condition prior to any flight, and will conduct detai led inspections pursuant to the maintenance manuals. Detailed inspection records will be kept at all times by Near Earth . Given the size, construction, and simplicity of the Approved sUAS , an equivalent level of safety is provided.

X. Certificate of Autho rization or Waiver

This exemption request is a prerequisite to Near Earth ’s application for a commercial

COA to use the Approved sUAS for the purpose of conducting aerial demonstrations, surveying, mapping, inspections, and site monitoring

.

XI. Conclus ion

Near Earth respectfully submits that it has demonstrated that (i) the Approved sUAS have

satisfied the FAA’s airworthiness assessment as demonstrated by previous Section 333 Exemptions , (ii) the PIC and VO have the requisite knowledge and experience to ensure the safe operation of the Approved sUAS , (iii) Near Earth has provided and will comply with the operation procedures and parameters that further ensure safe sUAS operations in the NAS, removing any legitimate threat of harm to humans and property , including other manned aircraft, and (iv) Near Earth ’s proposed operations, which include without limitation, the use of the Approved sUAS to demonstrate its products and services for use in aerial data acquisition, monitoring, mapping, and surveying of secure project sites for the benefit of a variety of industries, achieve a level of safety equal to or greater than that which would be achieved by flying a larger manned aircraft carrying crew and flammable fuel for the same purposes. In addition, permit ting use of the Approved sUAS will achieve various economic and environmental benefits, as well as significant efficiencies, associated with cost, labor, and safety, that serve the public interest.

Near Earth asks that the FAA grant its request for exempt ion from the above described FARs under Section 333, and approve its operation of the Approved sUAS in the national airspace in accordance with the limitations and restrictions set forth herein.