www.pillsburylaw.com Kenneth P. Quinn kquinn@pillsburylaw.com Pillsbury Winthrop Shaw Pittman LLP

1200 Seventeenth Street, NW | Washington, DC 20036 | tel 202.663.8000 | fax 202.663.8007

February 2 4 , 2015

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

Re: Exemption Request Pursuant to Section 333 of the FAA Modernization and Reform Act of 2012, 49 U.S.C. § 44701(f), and Part 11 of the Federal Aviation Regulations

Dear Sir or Madam :

On behalf of our client s , Freeport

- McMoRan, Inc. (“Freeport”) and Prioria Robotics , Inc. (“Prioria”) , and pursuant to Section 333 of the FAA Modernization and Reform Act of 2012 (the “Reform Act”) (“Section 333”), Subsection (f) of 49 U.S.C. § 44701, and 14 C.F.R. Part 11, we request an exemption from the Federal Aviation Regulations (“FARs”) listed belo w and discussed in Appendix A to allow Freeport to conduct commercial operations with

Prioria’ s Maveric small Unmanned Aircraft System (“sUAS”) (the “Maveric”) to provide surveying and mine

- related services at Freeport’s U

. S

. mines , which are primarily lo cated in remote unpopulated areas with minimal air traffic . These services include obtaining still photographs, real

- time video, and other data taken by onboard sensors to monitor blasting operations, environmental conditions, and mine security.

Perform ing these mining services with a sUAS is in the public interest for several reasons, which are detailed further herein and include: (1) minimizing safety risks inherent in manned operations , both in the air and on the ground ; (2) inspecting locations where humans are not able to go ; (3) enhancing capabilities to utilize the sUAS to assist first responders on safety or environmental incidents; ( 4 ) improving access control/security to mining sites ; and (5 )

monitor ing environmental conditions.

The battery

- powered Maveric weighs 2.6 pounds and has a flight time of 40

- 75 minutes depending on operating conditions . It employs a self

- stabilizing aircraft configuration with stability augmentation avionics that provides ease

- of

- control and steady video im agery. Its high

- performance design leverages advanced composite materials, innovative electronics, and cutting

- edge sensor technology to increase mission capabilities and make Maveric a reliableFebruary 2 4 , 2015 Page 2

www.pillsburylaw.com and accurate solution to meet a variety of industry needs. T he Maveric has operated in the

United States under two Certificate of Waiver or Authorizations (“COAs”)

. 1 Additionally, the Maveric has received operating approvals in Canada and Australia, and has been operated by the U.S. Army. Operations under the exe mption will be conducted under the limitations

and conditions set forth in Appendix B and as may be modified by the FAA as required by

Section 333. 2

Use of the Maveric in Freeport’s mining operations as proposed herein would provide significant public safe ty benefits over existing inspection operations , while operating safely

within the National Airspace System (“NAS”). Use of sUAS offer numerous safety benefits for operations on the ground. First, the use of sUAS would alleviate the need for personnel to perform difficult manual inspections of safety berms and mining conditions along narrow pathways several hundred feet above the mine’s floor. And, sUAS will be able to more quickly and thoroughly assess safety conditions of roads used by vehicles. Secon d, use of sUAS during blasting operations w ould increase situational awareness of the surroundings and help prevent blasting if wildlife or unauthorized personnel gain access to the property. Third, use of sUAS would improve Freeport’s ability to routinel y inspect the mine’s leaching operations and would reduce the need for personnel to access the top of the leach operation. Finally, the use of sUAS would improve visual access to areas that are off limits to foot traffic and machinery due to risk of unsta ble, shifting earth or moving water. The use of sUAS

w ould provide Freeport with additional data it can use to conduct safer and more efficient mine operations.

For inspections now conducted by manned aircraft, use of the sUAS for these services will

redu ce the need to operate manned aircraft in a difficult environment and reduce the environmental impact of conventional aircraft operations. In addition, the small, lightweight, and easily controllable operating characteristics of the Maveric provide for sa fe operations over Freeport’s locations. Freeport also maintains strict control over access to its mines, requires all personnel to wear personal protective gear, including hard hats and safety glasses,

1 Certificate of Waiver or Authorization 2011

- ESA

- 26, issued to the Department of Energy Oak Ridge National

Laboratory, and Certificate of Waiver or Authorization 2012

- WSA

- 53, issued to Oregon State University.

2 While Freeport has modeled its request off of Part 333 exemption grants as of the date of its application,

Freeport requests that the FAA treat Freeport’s application as requesting the most lenient relief granted to similar applicants at the time of adjudication. Additionally, should the FAA modify any of its sUAS operating conditions through exemptions or ot herwise after adjudicating Freeport’s application, Freeport requests blanket approval to operate its sUAS in accordance with the more lenient operating conditions. Freeport reserves the right to supplement or amend its application.February 2 4 , 2015 Page 3

www.pillsburylaw.com and mandates site

- specific safety training , all of w hich further reduce safety risks associated

with the use of the Maveric

.

Although the Maveric can be operated by one person, Freeport flight operations will always involve at least two people as required by the FAA: a pilot

- in

- command (“PIC”) and a visual observer (“VO”). The PIC is responsible for flying the sUAS, monitoring its status and flight dynamics

, while keeping the flight within the manufacturer’s specified operational limits to ensure safe operation of the vehicle. VOs will be responsible for m onitoring the airspace for other aircraft and hazards and advising the PIC before and during flight of all such observed risks. In addition to completing either Freeport training taught by a Prioria

- acc redited trainer, Prioria sUAS operator training, or Cochise College ’ s UAS training program, the PIC will hold at least a private pilot certificate and third

- clas s medical certificate.

Applicant Information:

The name of the applicant is:

Freeport

- McMoRan, Inc.

The primary contact for this application , with a copy to me at the address above, is:

Leon DuPlessis Chief Engineer 3350 E Valencia Rd, Tucson, AZ 85706 Phone: (520) 229

- 6561

Email: leon_duplessis@fmi.com

Exemptions Requested

Freeport requests exemptions from the following regulations:

14 C.F.R. Part 21; 14 C.F.R. 61.113(a) and (b); 14 C.F.R. 91.7(a); 14 C.F.R. 91.119(c); 14 C.F.R. 91.121;

14 C.F .R. 91.151(a); 14 C.F.R. 91.405(a); 14 C.F.R. 91.407(a)(1); 14 C.F.R. 91.409(a)(1) and (2); 14 C.F.R. 91.417(a) and (b).February 2 4 , 2015 Page 4

www.pillsburylaw.com Airworthiness of the sUAS

The Maveric has been shown to be airworthy and compliant through a history of granted flight operations in the United States, Canada, and Australia and successful flights in all three countries. The U.S. Military has accepted the Maveric for use as well and has flown i t since 2011 in places like Afghanistan. Globally, the Maveric has amassed over 4,000 fligh t hours

. For additional safety, the Maveric is equipped with automated features t hat ensure safe takeoff, flight, and landing in many conditions, further details of which are provided in Appendix C

.

In support of this application, Freeport will submit, u nder separate cover and with a request for confidentiality, the Maveric Operator’s Manual (“Operator’s Manual”)

.

Operating Conditions

Freeport requests an exemption subject to the conditions listed in Appendix B , which are substantially similar to the op erating conditions required for the FAA’s previous grants of exemptions under Section 333

.

In accordance with the conditions approved in previous exemption grants, Freeport is requesting authority to operate the Maveric within visual line of sight and bel ow 400 feet

AGL except as provided by FAA Air Traffic Control via COA

. Given that the mining sites are not flat, Freeport will use the elevation of the highest predominant terrain within 1 mile of the launch point and within the visual line of sight as a ground reference point to establish the 400 feet ceiling

. 3 In other words, Freeport will not operate the Maveric any higher than 400 feet above the highest point within 1 mile from the launch point , and will only do so provided

the UAS is within the line of si ght . These operating conditions, along with those listed in Appendix B, would provid e an equivalent level of safety for the reasons described below.

First, Freeport’s mines are generally located in remote areas that rarely see air traffic. By way of example, one of Freeport’s mines located in Morenci

, Arizona (the “Morenci Mine” ) spans an area of approximately 32 nautical miles, and ranges in elevation from 7,000 feet AMSL to 3,500 AMSL. As the Google Earth image below shows, the Morenci M ine is located miles from any sizeable population and over 130 miles from the nearest commercial airport

– the

3 The Maveric is visib le up to 2,000 meters (1.24 miles) in a clear sky, making the selection of the predominant

terrain within 1 mile of the launch point as a ground reference a logical and easily manageable reference.February 2 4 , 2015 Page 5

www.pillsburylaw.com Grant County Airport

– in Silver City, New Mexico. The mine is located approximately 10 miles from Greenlee County Airport, which averages about 21 aircraft operations a week. 4

Figure 1: Google Earth image of Morenci M ine

4 AirNav.com, Greenlee County Airport

, https://www.airnav. com/airport/KCFT (last visited Jan. 26, 2015).

Additional ly, the airspace a bove the Morenci Mine from 1,500 ft AGL to 18,000 ft A MSL is a M ilitary Operations Area that is active from 6 : 00 am to 9:00 pm , Monday through Friday.February 2 4, 2015 Page 6

www.pillsburylaw.com Figure 2 : Morenci Mine

Figure 3 : Morenci Mine – Each bench is approximately 50 ftFebruary 2 4, 2015 Page 7

www.pillsburylaw.com Figure 4 : Morenci Mine

Figure 5 : Morenci MineFebruary 2 4 , 2015 Page 8

www.pillsburylaw.com Second, flight operations near the More n ci Mine, like other mine locations, are limited due to the terrain. In addition to the requirement that pilots must fly at least 500 feet AGL, the FAA recommends that pilots operating under Visual Flight Rules (“VFR”) fly over ridges with at least 1,000 f eet clearance. 5 Pilots flying under instrument flight rules (“IFR”) over

mountainous areas must fly at “ an altitude of 2,000 feet above the highest obstacle within a

horizontal distance of 4 nautical miles from the course to be flown .” 6 Given the locatio ns of this and Freeport’s other mines and FAA minimum flight altitudes, the Maveric will be able

to operate below altitudes for manned aircraft.

Third, the PIC will operate the Maveric from higher elevations in the mine such as a road or

elevated hill surr ounding the pit, allowing the PIC to maintain full visibility of the airspace over the mine to avoid any manned aircraft. Freeport will use a second VO who will stay in radio contact with the PIC if the terrain warrants it. Additionally, Maveric’s nose c amera will provide real

- time video of the Maveric’s environment that the PIC can use to avoid any

airborne aircraft and other obstacles.

Fourth, Freeport’s operational procedures will require PICs to s uspend all sUAS operations

when a manned aircraft operates within the mine ’ s boundaries , gre atly reducing the risk to any manned aircraft. The PIC will be able to immediately land the sUAS when the PIC or VO spot another manned aircraft within the planned area of operations or mine safety personnel direct cessation of sUAS operations.

Fifth, Fr eeport maintains strict control over access to its mines, requires all personnel to wear personal protective gear, including hard hats and safety glasses, and mandate s site specific safety training, which will include sUAS safety procedures. Non

- participa nt Freeport employees will carry radios and be alerted before sUAS operations begin. These safeguards, along with the sUAS’s light weight, provide an equivalent level of safety for non

- participants

to be closer than 500 feet.

Sixth, the Maveric is equip ped with visible strobe lights that will alert any manned aircraft in the area to its position.

5 FAA Aviation Safety Program, Tips on Mountain Flying , available at

https://www.faa.gov/regulations_policies/handbooks_manuals/aviation/media/tips_on_mountain_flying.pdf

. Pilots operating under VFR also must operate at an altitude that would allow them to make an “emergency landing without undue hazard to persons or property on the surface.” 14 C.F.R. § 91.119(a).

6 FAR 91.177(a)(2)(i).February 2 4 , 2015 Page 9

www.pillsburylaw.com Seventh, the Maveric’s flight software provides many built

- in functional and safety features to

assist the PIC in safe and reliable operation. The Maveric c an operate autonomously in “Navigation” mode. In Navigation mode, the PIC selects way points, rally points, and a landing area before launching. The sUAS then uses GPS navigation to follow the pre

- selected flight path. The sUAS also can be flown in a sem i

- autonomous mode in which the sUAS flight software maintains a pre

- set altitude and airspeed and the PIC controls heading. Additionally, the Maveric’s flight software allows the PIC to set certain failsafes, i.e. actions the sUAS will take in response to loss of link, loss of GPS, and low battery regardless of the flight mode in which the sUAS is currently operating. For example, the PIC can configure the failsafe so that, in a loss of link situation, the sUAS flies to a pre

- set waypoint and loiters for a short time to give the sUAS time to re

- connect with the ground control station and lands at a

pre

- set landing spot if loss of link persists beyond a pre

- determined length of time. The PIC can do the same for both loss of GPS and low battery situations.

Finally, any risk presented by possible helicopter medical evacuation flights would be mitigated by requiring the PIC to terminate sUAS operations at the command of mine safety personnel. The PIC will maintain constant radio contact with mine safety pe rsonnel.

Freeport requests authorization to operate the Maveric less than 500 feet from nonparticipating mine employees without barriers or structures to protect them , provided they

wear customary safety gear (e.g. hard hats) . An equivalent level of sa fety is provided because the Maveric’s weight

, material s, and reliability, along with the required operator training and operating environment, prevent the Maveric from posing a serious risk to mine employees wearing personal protective gear. 7 The safety assessment includes consideration of the Maveric’s mean time between failures (“MTBF”) 8

— calculated with a large degree of

confidence from the operation of the Maveric for over 4,000 hours

— and its low kinetic

energy.

Operator Requirements

As a condition to the grant of the exemptions, Freeport will require that the PIC hold a p rivate

p ilot c ertificate and a valid third

- class medical certificate. The PIC will have accumulated

7 Based on guidance issued in Exemption No. 11109, Freeport and Prioria w ill submit a safety assessment

, under

separate cover and with a request for confidentiality , to support their request for additional relief regarding the proximity of non

- participants

. 8 Prioria’s MTBF analysis will be submitted under separate cover with a request for confidentiality.February 2 4 , 2015 Page 10

www.pillsburylaw.com and logged a minimum number of flight cycles and hours for daytim e operations, as required by the FAA . The PIC will also be subject to the FAA flight review requirements.

The PIC and all observers will be required to have completed a Freeport training course taught by a Prioria

- accredited trainer, Prioria’s training p rogram, or Cochise College’s UAS training program. 9

Freeport respectfully submits that the operator qualifications take into account the operating conditions and characteristics of the particular sUAS.

Public Interest

Freeport respectfully submits tha t its use of the sUAS in lieu of manned operations , which are currently conducted with conventional fixed wing and rotary aircraft

, offers a net safety benefit and will achieve an enhanced level of safety, as mandated under Section 333(c) of the Reform Act. Approval of this application also will benefit the public interest by allowing better, safer, and more cost efficient information gathering for the mining industry.

Conventional aerial survey and inspection operations using manned aircraft involve very heavy aerial vehicles that must transit to the operational location and carry significant quantities of combustible fuels and a multi

- person crew in piloting and observation roles. These operations become even more difficult in the mining industry due to the t errain. By contrast, the Maveric weighs 2.6 lbs., including its payload, uses a battery for power, is carried to and from the area of activity, removes the need for airborne pilots and observers, and poses less risk to people and infrastructure on the gro und, as well as other aircraft.

Additionally, no national security issue is raised by the grant of the requested exemptions due

to the Maveric’s small size and load

- carrying capacity, as well as its operational limitations

and absence of flammable fuel. All PICs will have been screened by the Department of Homeland Security . On the other hand, the Maveric is likely to enhance national security through better and more accurate monitoring of critical national infrastructure

.

The grant of the requested exem ption is in the public interest based on the clear direction in

Section 333 and 49 U. S. C. § 44701(f)

, 10 the equivalent and enhanced level of safety of the

9 Prioria and Freeport have a relationship with Cochise College and its aviation program, which owns and

operates the Maveric system as part of the school’s UAS program of study. Cochise College has a COA application under re view with the FAA. More information about Cochise College’s UAS program is available

at http://www.cochise.edu/catalog/uas

--- unmanned

- aircraft

- systems.htm

.February 2 4 , 2015 Page 11

www.pillsburylaw.com proposed operations, the significant public benefit, and cost savings to be realized as a result of the use of sUAS for aerial inspection and survey services. Moreover, the FAA has granted similar exemptions for sUAS used to conduct high resolution aerial imaging and surveying operations. 11 Accordingly, the applicant respectfully requests that the FAA grant the requested exemption without delay.

Privacy Concerns

The proposed operations will take place only in largely unpopulated, r emote areas that are

owned or leased, and access controlled by Freeport. Access to these areas is restricted to employees and authorized personnel only. No privacy issues are raised by this application.

Federal Register Summary

Pursuant to 14 C.F.R. § 11.81(f), the following summary is provided for publication in the Federal Register, should the FAA determine that publication is needed:

Docket No.: No. FAA

- 2015

-

____ Petitioner: Freeport McMoRan

, Inc. Section of 14 CFR: Part 21, § 61.113(a) and (b), § 9 1. 7(a) , § 91.119 (c)

, § 91.121, § 91.151(a) , § 91.405(a), § 91.407(a)(1), § 91.409(a)(2), § 91.417(a) and (b). Description of Relief Sought: Freeport is seeking an exemption to conduct commercial mining

- support operations using a small unmanned air craft (55 pounds or less) in remote areas of the United States.

(... continued)

10 Under 49 U.S.C. § 44701(f)

, the “ Administrator may grant an exemption from a requirement of a regulation prescribed under subsection (a) or (b) of this section or any of sections 44702

- 44716 of [ Title 49] if the

A dministrator finds the exemption is in the public interest. ”

11 See Exemption Nos. 11109, 11110, 11136, 11166, 11167, 11170, 11172. Freeport requests that the FAA not

request public comment on its application because it would not set a precedent and because the relief requested is identical to exemptions granted previously. 14 C.F.R. § 11.87.February 2 4 , 2015 Page 12

www.pillsburylaw.com Sincerely,

Kenneth P. Quinn

cc: Leon DuPlessis, Freeport

- McMoRan, Inc. Bryan da Frota, Prioria Robotics, Inc.February 2 4 , 2015 Page 13

www.pillsburylaw.com APPENDIX A

EXEMPTION REQUEST AND EQUIVALENT LEVEL OF SAFETY

SHOWINGS UNDER APPLICABLE RULES SUBJECT TO EXEMPTION

Freeport requests an exemption from the following regulations as well as any additional regulations that may technically apply to the operation of the Maveric sUAS:

14 C.F.R. Part 21, Subpart H: Airworthiness Certificates

Part 21, Subpart H, entitled Airworthiness Certificates, establishes the procedural requirements for the issuance of airworthiness certificates as required by § 91.203(a)(1).

Given the size and weight of the aircraft, the operating conditions, design safety features, and the proposed conditions and limitations , it is unnecessary to go through the certificate of airworthiness process under Part 21 Subpart H to achieve or exceed current safety levels. Such an exemption meets the requirements of an equivalent level of safety under Part 11 and

Section 333. Section 333 and 49 U.S.C. § 44701(f) both authorize the FAA to exempt aircraft from the requirement for an airworthiness certificate, upon consideration of the size, weight, speed, operational capability, and proximity t o airports and popula ted areas of the sUAS

involved.

In this case, an analysis of these criteria demonstrates that the sUAS operated without an airworthiness certificate, under the conditions proposed herein, will be at least as safe, or safer, than a con ventional aircraft (fixed wing or rotorcraft) with an airworthiness cer tificate. The Maveric weighs 2.6 pounds fully loaded. It will not carry a pilot, passenger or flammable

fuel. The Maveric operates exclusively within a controlled area pre

- disclosed a nd in compliance with conditions set forth herein. Unlike other civil aircraft, o perations under this exemption will be tightly controlled and monitored by the PIC and observer(s) , pursuant to
the conditions set forth in Appendix B

, the Operator’s Manual, and local public safety requirements. The FAA will have advance notice of all operations through the filing of

NOTAMs. The lack of flammable fuel and the fact that the aircraft is carried to the location and not flown there all establish the equivalent level of safety. The sUAS provides at least an equivalent level of safety to that of such operations being conducted with conventional

aircraft that would be orders

- of

- magnitude larger and would be carrying passengers, cargo,

and flammable fuel.

14 C. F.R. § § 61.113(a) & (b) : Commercial P ilot Privileges

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

- commercial operations. Unlike a conventional aircraft that carries a pilot, passengers, and cargo, the Maveric is remotely controlled with no passe ngers or property of others on board. The area of operation isFebruary 2 4 , 2015 Page 14

www.pillsburylaw.com controlled and restricted, and all flights are planned and coordinated in advance as set forth in the Operator’s Manual. In conjunction with the required training of the PIC and observers,

th e level of safety provided by the requirements included in the Operator’s Manual exceeds that provided by a single individual holding a commercial pilot certificate operating a conventional aircraft. The proposed operations will achieve at least an equiva lent level of safety.

14 C.F.R. § 91.7(a) : Minimum Safe Altitudes

Section 91.7(a) prohibits an individual from operating a civil aircraft unless it is in an airworthy condition. No FAA standard exists for determining an aircraft’s airworthiness

when an airworthiness certificate is not issued. As the FAA has done with previous exemption grants, 12 airworthiness will be ensured and an equivalent level of safety will be achieved by compliance with the operating documents prior to every flight.

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

Section 91.119 establishes safe altitudes for operation of civil aircraft. Specifically, Section 91.119(c) limits aircraft flying over areas other than congested areas to an altitude of 500 feet above the surface, exc ept over open water or sparsely populated areas. In those cases, the aircraft may not be operated closer than 500 feet to any person, vessel, vehicle, or structure.

Because some of the aerial inspection and survey work must be accomplished at altitudes l ess than 500 feet AGL and nonparticipating mine employees will be working within 500 feet of

the sUAS

, an exemption from Section 91.119(c) is needed.

The equivalent level of safety will be achieved because Freeport’s mine employees are required to wear personal protective gear and because the Maveric, given its size, weight, speed, and material s , does not pose a serious risk

. Also, every flight will be conducted over

land owned or controlled by Freeport

. Because Freeport will notify its mine employees in

advance of Maveric operations , al l e ffected individuals will be aware of the fl ights. Compared to aerial inspection operations conducted with aircraft or rotorcraft weighing far more than 2.6 pounds and carrying flammable fuel, any risk associated with these operations will be far les s than those currently allowed with conventional aircraft operating at or below 500 feet AGL.

12 Exemption Nos. 11156, 11158, 11159.February 2 4 , 2015 Page 15

www.pillsburylaw.com 14 C.F.R. § 121: Altimeter Setting

Section 121 requires each person operating an aircraft to maintain cruising altitude by

reference to an altimeter tha t is set “to the elevation of the departure airport or an appropriate altimeter setting available before departure.” As the sUAS may not have a barometric altimeter, but instead a GPS altitude read out, an exemption is required. An equivalent level

of sa fety will be achieved by the operator, pursuant to the Operator’s M anual, confirming the

altitude of the launch site shown on the GPS a ltitude indicator before flight.

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

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

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

minutes. ”

The Maveric ba tteries provide approximately 40

- 75 minutes of powered fli ght. Without an exemption from 14 C.F.R. § 91.151, the Maveric ’s flights wou ld be limited to approximately

1 0 minutes in length because the PIC would require the last 30 minutes to satisfy section 91.151(a). Given the limitations on its proposed operations, a longer ti me frame for flight in

VFR condition s is reasonable.

Freeport believes that an exemption from 14 C.F.R. § 91.151(a) provides an equivalent level of safety and is consistent with prior exemptions. 13 Operating the sUAS, without 30 minutes of reserve fuel does not engender the type of risks t hat Section 91.151(a) was meant to prevent given the size and speed at which the sUAS operates. In the unlikely event that the

sUAS ’ battery runs low

, it would simply follow the pre

- programmed command to land at a designated location

. Given its weight and construction material, the risks are less than contemplated by the current regulation.

Freeport believes that an equivalent or enhanced level of safety can be achieved by

mainta ining 10 minutes of reserve power which, allowing at least 3 0 minutes of flight time, if

not more, would be more than adequate to return the sUAS to its planned landing zone from anywhere in its limited operating area.

13 Exemption 10673 (allowing Lockheed Martin Corporation to operate without compliance with 91.151(a)) ; see

also Exemptio ns 2689F, 5745, 10673 and 10808

.February 2 4 , 2015 Page 16

www.pillsburylaw.com 14 C.F.R. § § 91.405(a)

, 91. 407(a)(1)

, 91. 409(a)(2) , and 91. 417(a): Maintenance Inspections

Section 91.405(a) requires that an aircraft operator or owner “ shall have that aircraft inspected as prescribed in subpart E of this part and shall between required inspections, except as provided in paragraph (c) of this section, have discrepancies re paired as prescrib ed in part 43 of this chapter

. ” Section 91.407 similarly makes refer ence to requirements in Part 43. Section 91.409(a)(2) requires an annual inspection for the issuance of an air worthiness

certificate. Section 91.417(a) requires the o wner or operator to keep records showing certain maintenance work that has been accomplished by certificated mechanics, under Part 43, or licensed pilots and records of approval of the aircraft for return to service.

Pre

- flight c hecks will be performed b y a qualified person prior to each flight and at prede fined intervals as part of the m aintenance schedule

.

The p re

- flight checklist includes:

1. Vi sual inspection of the airframe;

2. Visual inspections of propeller;

3. Verify GPS acquisition;

4. Plan and upload missi on;
5. Video and payload check;

6. Controls check;

7. Gyro/control surfaces check;

8. Throttle check;

9. Check pitot tube readings;

10. Check sensors; and

11. Verify failsafes are set correctly.

An equivalent level of safety will be achieved because the sUAS will carry no exter nal payload, will operate only in restricted predetermined areas

, and i s not a complex mechanical

devic e. In addition, the operator will ensure that the sUAS is in working order prior to initiating flight, perform required maintenance, and keep a log of a ny maintenance that is performed. Moreover, the operator is the person most familiar with the aircraft and is best suited to maintain the aircraft in an airworthy condition and to ensure an equivalent level of safety. Last, the Operator’s Manual will hav e instructions to develop and document maintenance, overhaul, replacement, and inspection requirements in the absence of Prioria requirements, and procedures to document and maintain maintenance records for the sUAS.February 2 4 , 2015 Page 17

www.pillsburylaw.com The sUAS m aintenance guidelines provid e an equivalent level of safety to the maintenance requirements in Part 91.February 24 , 2015 Page 18

www.pillsburylaw.com APPENDIX B

FREEPORT OPERATING LIMITATIONS

1) Operations authorized by the grant of exemption are limited to the following aircraft:

Prioria’s Maveric , which weighs less than 5 kg.

2) The sUAS shall not be flown at a ground speed exceeding 60 kts.

3) The sUAS will not be operate d at an altitude more than 400 feet above the highest predominant terrian except as may be provided by FAA Air Traffic Control (“AT C ”)

via COA . The highest predominant terrain is the defined as terrain within 1 mile of the launch point and within the visual line of sight of the PIC. All altitudes reported to

ATC shall be in feet AGL.

4) The sUAS must be operated within visual line of sight of the PIC at all times. This requires the PIC to be able to use human vision unaided by any device other than corrective lenses, as specified on the PIC’s FAA

- issued airman medical certificate.

5) All operations must use a VO . The VO and PIC must be able to communicate verbally at all times. The PIC must be designated before the flight

. The PIC must ensure that the VO can perform the functions prescribed in the operating doc uments.

6) The operating documents and this grant of exemption must be accessible during UAS operations and made available to the Administrator upon request. If a conflict exists

between the conditions and limitations in th e exemption and the procedures outli ned in the operating documents, the conditions and limitations in the exemption take precedence and must be followed. Otherwise, Freeport must follow the procedures as outlined in its operating documents. Freeport may update or revise its operating

documen ts. It is Freeport ’s responsibility to track such revisions and present updated and revised documents to the Administrator upon request. Freeport must also present updated and revised documents if it petitions for extension or amendment to this grant

of e xemption.

7) Prior to each flight the PIC must inspect the sUAS to ensure that it is in a condition for safe flight. The PIC shall not operate the aircraft if the inspection reveals a condition that affects the safe operation of the sUAS until the necessary maintenance has been performed and the sUAS is found to be in a condition for safe flight. The Ground

Control Station , if utilized, must be included in the preflight inspection. All maintenance and alternations must be properly documented in the aircraf t reco rds.February 24 , 2015 Page 19

www.pillsburylaw.com 8) Any sUAS that has undergone maintenance or alterations that affect the sUAS operation or flight characteristics (e.g., replacement of a flight critical component) must undergo a functional test flight in accordance with the O perator’s M anual. T he PIC who conducts the functional test flight must make an entry in the a ircraft records of the flight. The requirements and procedures for a functional test flight and aircraft record entry shall be included in the Operator’s Manual

.

9) The pre

- flight insp ection must account for all discrepancies, e.g. inoperable components, items, or equipment, not already covered in the relevant sections of the operating documents.

10) Freeport must follow Prioria ’s aircraft/component

, maintenance, overhaul, replacement, insp ection, and life limit requirements.

11) Freeport must 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 must be noted in the aircraft records, including total time in service, description of work accomplished, and the signature of the person authorized to return the s UAS to service.

12) Each s UAS operated under this exemption must comply with all manufacturer S afety

Bulletins.

13) The PIC must possess at least a private pilot certificate and at least a current third

class medical certificate. The PIC must also meet the flight review requirements specified in 14 C.F.R. § 61.56 in an aircraft in which the PIC is rate d on his or her pilot certificate.

14) Freeport may not permit any PIC to operate unless the PIC meets the operator’s qualification criteria and demonstrates the ability to safely operate the s UAS in a

manner consistent with how the s UAS will be operated under this exemption, including evasive and emergency maneuvers and maintaining appropriate distances from persons, vessels, vehicles and structures. 14 PIC qualification flight hours and currency must be logged in a manner consistent with 14 C

. F

. R

. § 61.51(b). The PIC must ensure that the VO is trained appro priately in order to fulfill his or her duties. A record of training and qualification must be documented and made available upon

14 Prior documented flight experience that was obtained in compliance with applicable regulations may satisfy

this requirement.February 24 , 2015 Page 20

www.pillsburylaw.com request by the Administrator. Flights for the purposes of training the opera tor’s PICs and VOs (training, proficiency, and experience

- building), are permitted under the terms of this exemption. However, training operations may only be conducted during dedicated training sessions. During training, proficiency, and experience

- buil ding flights, all persons not essential for flight operations are considered nonparticipants, and the PIC must operate the UA with appropriate distance from nonparticipants in

accordance with these operating conditions

.

15) Operations may not be conducted duri ng night, as defined in 14 C.F.R. § 1.1. All operations must be conducted under visual meteorological conditions (“VMC”). Flights under special visual flight rules (“SVFR”) are not authorized.

16) The s UA S may not operate within 5 nautical miles of an airport reference point as

denoted on a current FAA

- published aeronautical chart unless a letter of agreement with that airport’s management is obtained, and the operation is conducted in

accordance with a NOT AM as required by Freeport ’s COA. The letter of agreement with the airport management must be made available to the Administrator upon

request.

17) The sUAS may not be operated less than 500 feet below or less than 2,000 feet horizontally from a cloud or when visibility is less than 3 statute miles from the PIC.

18) If the sUAS loses communications or loses its GPS signal, the sUAS must return to a

pre

- determined location within the security perimeter and land or be recovered in accordance with the Operator’s Manua l.

19) The PIC must abort the flight in the event of unpredicted obstacles or emergencies in accordance with the Operator’s Manual.

20) sUAS operations must be completed within 30 minutes flight time.

21) Freeport must obtain an AT C

- issued COA prior to conducting any operations under this exemption. This COA will also require the filing of the NOTAM not more than 72 hours in advance, but not less than 48 hours p rior to the operation.

22) All aircraft operated in accordance with the requested exemption must be identified b y serial 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 shall be as large as practicable.February 24 , 2015 Page 21

www.pillsburylaw.com 23) The radio frequency spectrum used for operation and c ontrol of the sUAS must comply with Federal Communication (FCC) or other appropriate government oversight agency requirements.

24) The documents required under 14 C.F.R. §§ 91.9 and 91.203 must be available to the

PIC at the Ground Control Station of the sUAS any time the aircraft is operating. These documents shall be made available to the Administrator or any law enforcement official upon request.

25) The sUAS must remain clear and yield the right of way to all other manned operations

and activities at all times

.

26) The sUAS may not be operated from any moving device or vehicle.

27) The sUAS may not be operated over congested or densely populated areas.

28) Flight operations must be conducted at least 500 feet from all nonparticipating persons, vessels, vehicles, structur es, and public access roads unless:

a. The nonparticipating persons are authorized to access Freeport’s mine, have received Freeport’s safety training, and are w earing personal protective gear ( “ Mine P art ies ” ) ;

b. For non

- participa nts who do not qualify as Mine P art ies

, b arriers or structures are present that sufficiently protect t hem from the sUAS and/or debris in the

event of an accident. The operator must ensure that nonparticipating persons

who are not Mine P arti es remain under such protection. If a situation arises where nonparticipating persons who are not Mine P arti es leave such protection

and are withi n 500 feet of the sUAS, flight operations must cease immediately ;

o r

c. The aircraft is operated near vessels, vehicles or structures whe re the owner/controller of such vessels, vehicles or structures has granted permission

and the PIC has made a safe ty assessment of the risk of operating closer to those objects and determined that it does not present an undue hazard.

29) Operations nearer than 500 feet to the PIC, VO, operator trainees or essential persons as defined in the operating documents are permitt ed if those operations do not present an undue hazard to those persons per § 91.119(a) as determined by the PIC.

30) All operations must be conducted over private or controlled

- access property.February 24 , 2015 Page 22

www.pillsburylaw.com 31) Any incident, accident, or flight operation that transgresses the lateral or vertical boundaries of the operational area as defined by the applicable COA shall be reported to the FAA’s UAS Integration Office (AFS

- 80) within 24 hours. Accidents must be reported to the National Transportation Safety Board (NTSB) per instr uctions

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

.February 24, 2015 Page 23

www.pillsburylaw.com APPENDIX C

SMALL UNMANNED AERIAL SYSTEM DESCRIPTION

Freeport Corporate Overview : Freeport is a Delaware corporation with its headquarters in Phoenix, Arizona

. Freeport is a premier U.S.

- based natural re source company with an industry- leading global portfolio of mineral assets, significant oil and gas resources

, and a growing production profile.

sUAS Operating Overview : The Maveric is a fixed

- wing aircraft c onstructed of a rugged carbon fiber composite with bendable wings that requires no assembly. It has fully autonomous operation for takeoff, navigation, and landing.February 24 , 2015 Page 24

www.pillsburylaw.com Parameter Characteristic Wingspan 29.5 in Length 26.5 in Weight, with EO side

- look payload 2.6 lbs Wireless Range 5

– 15 km LOS Cruise Speed (Best Endurance) 26 kts (30 mph) Dash Speed 55 kts (63 mph) Stall Speed 18 kts (21 mph)

Max wind 20 kts sustained, 30 kts gusting Precipitation Light rain (0.1 inches per hour) Flight Duration 45

– 70 minutes

Turn Rate 360 degrees in 12 seconds

Climb Rate 500 ft/min @ 2,000 A MSL

Launch Hand launch, tube launch optional Landing Deep

- stall, skid, net optional Flight Control Autonomous or manual Exterior Lighting Visible and IR Strobe Lights Command and Control Frequency 350 MHz, 900 MHz

Video Bands 1.7 GHz, 2.4 GHz

The sUAS can be operated in fully autonomous flight modes. Creating pre

- planned flight paths to fly in autonomous mode is as simple as clicking on the ma p to create a pre

- planned flight path. Pre

- mission waypoints, landing zone points, and flight area dimensions can all be entered during preflight, ensuring the sUAS operates only within specified parameters.

The Maveric includes many advanced safety featu res that makes it the safest choice for areas like Freeport’s mines . Built

- in intelligent fault handling allows the sUAS to detect a system fault while in the air, and to automatically respond with a set command (one such option being to fly back to a pre

- selected rally point and land )

. Faults that can be detected include: loss of communication, loss of GPS, and low battery levels. In addition, the o perator can create no fly zones, and the system will visually and audibly warn the operator if the planned flight path would enter the no fly zone.

Operator’s Manual

– The Maveric Operator’s Manual will be provided under separate cover with a request for confidential treatment.

Power

– The Maveric and its ground control station are both powerd by a Lithium polymer rechargeable battery pack. A new battery has a fully charged voltage of approximately 12.4V.

A “full

- pack” has a capacity of 4 Amp

- hours. An additional “half

- pack” can be ins talled for extended operation. A new “half

- pack” has a fully charged voltage of 12.4V and a capacity ofFebruary 24 , 2015 Page 25

www.pillsburylaw.com 2 Amp

- hours. The Maveric’s battery charge is displayed in real

- time on the ground control terminal, ensuring maximum flight duration and safety.

Take off and Landing style/type

– The Maveric is hand launched and can be tube launched with additional equipment. The Maveric lands by returning to a pre

- determined rally point and beginning a spiral descent. Once it reaches a pre

- selected altitude, it heads toward the landing waypoint, descending until it lands and skids to a stop.

Navigation System

– Specific maps can be downloaded to the display screen (such as air sectional and geographic maps) which are overlaid with GPS positional data. Waypoints can

be created before and during flight operation creating specific locations and sequences for the

aircraft.

Defined “Keep Out” Areas

– The navigation software allows for preplanning Keep Out Areas that allow the operator to designate airspace he or she does n ot want the Maveric to enter. If defined flight paths pass through an area designated as keep

- out, the individual waypoints and waypoint connection segments turn red as a warning. Additionally, if a mission is uploaded and intersects with a keep out area , a warning is presented to the user. Also, if an aircraft in flight is navigated into a designated keep out area, an audible warning is

sounded.

Maintenance

– The Maveric s UAS needs very little maintenance, and operators may perform most required maint enance in the field with the field repair kit.

Command and Control Systems

- The sUAS Ground Control Station (GCS) allows the operator simultaneous control over aircraft and payloads. T he display screen provides all essential flight data to the operator . Telemetry data is transmitted to the command station at least once per second.

Displayed on GCS :

● Current position

● Registered home position

● Any autopilot flight plans

● Registered emergency landing zone

● Aircraft attitude

● Altitude

● Airspeed

● Groundspeed

● Compa ss reading/heading

● Estimated wind heading

● Communication strengthFebruary 24 , 2015 Page 26

www.pillsburylaw.com ● Range from home

● Bearing from home

● Duration of current mission

● Rate of climb

● Mode of the aircraft

● Battery level

Emergency Procedures and System Failures

Loss of Link

– The sUAS does not need constant signal from the GCS to continue flying. Communications outages are detected by the system and are reported to the PIC. During the communication outage, the sUAS continues on its pre

- determined flight path until a failsa fe is triggered. Once a failsafe is triggered, the sUAS will perform in accordance with the failsafe conditions uploaded before launch. This is accomplished without input from the operator.

Security

The system and communication links may be encrypte d.