OceanaGold, Haile Gold Mine

7283 Haile Gold Mine Rd.

Kershaw, SD 29067

December 15 , 2015

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

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

Dear Madam, Sir,

Pursuant to Section 333 of the FAA Modernization and Reform Act of 2012 (the “Reform Act”)

and 14 C.F. R. Part 11, OceanaGold

, an operator of the eBee Unmanned Aircraft System (“eBee”) seeks an exemption from the Federal Aviation Regulations (“FARs”) listed below:

• 14 C.F.R. 21

• 14 C.F.R. 61.133(a) (b)

• 14 C.F.R. 91.7(b)

• 14 C.F.R. 91.119

• 14 C.F.R. 91.151(a )

• 14 CFR Subpart E (91.401

- 91.417)

The requested exemption would authorize commercial operat ions using the eBee for mapping, training, agricultural and survey applications. These operations will be subject to strict operating requirements defined in t he eBee user manual ( Oceanagold requests the FAA treat the eBee training program as proprietary under 14 C.F.R. 11.35(b) and does not include this document in the public docket and conditions defined in the paragraph 3

.

OceanaGold is an exploration and de velopment company focused on becoming a producer of precious metals in the United States. Haile Gold Mine was purchased by OceanaGold in 2015. Haile Gold Mine is located in Lancaster County, South Carolina and was one of the first operating gold mine s in the United States. It was discovered in 1827 and has been operating on and off for nearly 200 years. The Haile Gold Mine property encompasses 4,500 acres of land and is 4.5
miles from the nearest town, Kershaw South Carolina. Kershaw has a population o f 1,907. The land area surrounding the Haile Gold Mine is sparsely populated, with much of it being used for ranching and logging. The closest airport, Lancaster County Airport, is 26 miles northwest of the

mine site.

O ceanaGold mine planning engineer s specialize in surface and underground gold extraction. Mine plans generated take into account, clearing and grubbing of pre

- mine vegetation, topsoil salvage, mine waste removal, ore extraction, mine land reclamation including topsoil replacementand pos t reclamation monitoring. The goal of the mine planning staff is to increase safety and

cost

- effectiveness throughout the site.

Unmanned Aerial Vehicle (UAV) technology, and its associated data, is becoming a desirable deliverable with the surface mining industry. Traditional GPS data collection, available imagery, traditional aircraft flyovers, and surface models lack resolution and accuracy for elite project planning. UAV collected data allows mine planning engineers to depict the active mining area

w ith great accuracy, resolution, in a timely manner. As importantly, the unmanned aspect reduces the risk of placing employees in perilous environments.

1. CHARACTERISTICS OF THE AIRCRAFT

The eBee is a small (37.8 inches wingspan) and ultra

- light (ma ximum take

- off weight of 1.7 pounds) platform made of flexible foam that performs pre

- programmed precision aerial mapping

missions thanks to the on

- board GPS and the related flight management software (eMotion) that allows the operator to plan safely and e fficiently a mission in 3D, and then monitor it in real

- time. Thanks to the embedded camera, protected by a foam envelope, the eBee takes a collection of high

- definition still images that are used later to generate maps and contour lines of the surveyed

ar ea.

The four main characteristics of the eBee are:

a. Very light weight

The eBee is so light that the operator can launch it by hand and let it land on almost any surface without requiring a parachute or landing net (belly land). Its low impact energy ( 38 J in case of a controlled emergency landing ) also significantly reduces the risk of hazardous situations. Finally, the wings of the eBee are detachable and made of flexible foam with no sharp or hard edges and almost no internal strengthening structure

. b. Electric

- powered

The eBee is electric powered. A brushless engine technology makes it silent and reliable. The propeller is attached with a rubber band to the body of the plane so that it can easily flex away in case of contact with any object.

c. Semi

- automatic flight

The artificial intelligence incorporated within the eBee autopilot system continuously analyzes

data from the Inertial Measurement Unit and from the onboard GPS and takes care of all the aspects of the flight under the supervision o f the operator.

d. Option for Manual control

Additionally, the eBee provides an override capability that allows the operator to take manual actions during the flight (Go to Home, Go Land, Hold and Resume the mission) and also suspend automated operations and take manual control of the aircraft should it become necessary to respond emergent circumstances, thanks to the remote controller provided with the system.

2. APPLICATIONSOceanaGold intends to utilize the eBee for the purpose of conducting aerial s urveys to gather data

used to calculate volume s of pit excavation, calculate volumes of surface waste dumps and ore
stockpiles, identify sediment control and reclamation needs , and manage timber and grubbing

activities.

Using the eBee’s sensor technology, OceanaGold will be able to collect time

- specific imagery and

elevation information. Once t he entire terrain of interest is flown, images collected during the flight will be merged together in a software program to make a topographic model. Using specifi c mathematical equations within the Postflight Terra 3D software, project field conditions, terrain characteristics and potential hazard areas can be easily identified.

The eBee will be used to evaluate information, including but not limited to:

• Topograp hic characteristics

• Volumetric estimates

• Slope and terrain impediments

• Natural and cultural resource identification

• As

- built feature identification and analysis

• Hazard evaluation

• Project design evaluations

3. APPLICABLE LEGAL STANDARD UNDER SECTION 333

a. Airworthiness assessment of the eBee

OceanaGold notes that the airworthiness of the eBee has already been demonstrated for different projects in the United States, involving state/federal agencies or universities (among others the

New Mexico State Uni versity: https://newscenter.nmsu.edu/Articles/view/10208/nmsu

- uas

- flight

test

- center

- conducts

- ebee

- airworthiness

- assessment

, and the USACE New Orleans, who coordinated with the Department of Army and the FAA to obtain all authorizations required i n order to operate the eBee UAS). Moreover the eBee already received 15 Exemptions from the

FAA

.

SenseFly also obtained flight approv als for the eBee (delivered by national civil aviation authorities) in many countries, among others:

• Switzerland (flight approval for VLOS operations)

• Canada (flight approval for VLOS operations)

• Australia (flight approval for VLOS operations)

• France (fli ght approval for Extended

- VLOS operations)

• Germany (flight approval for VLOS operations)

• United Kingdom (flight approval for VLOS operations)

• Norway (flight approval for VLOS operations)

• Sweden (flight approval for VLOS operations)

• Denmark (flight approval for VLOS operations)

b. Operating requirementsGrant of the exemption to OceanaGold for the eBee will be subject to the following operating

conditions :

• 1. Operations authorized by this grant of exemption are limited to the SenseFly eBee when weighing less than 55 pounds including payload. Proposed operations of any other aircraft will require a new petition or a petition to amend this exemption.

• 2. Operations for the purpose of closed

- set motion picture and television filming are not permitted.

• 3. Th e UA may not be operated at a speed exceeding 87 knots (100 miles per hour). The exemption holder may use either groundspeed or calibrated airspeed to determine compliance with the 87 knot speed restriction. In no case will the UA be operated at airspeeds greater than the maximum UA operating airspeed recommended by the aircraft

manufacturer.

• 4. The UA must be operated at an altitude of no more than 400 feet above ground level (AGL). Altitude must be reported in feet AGL.

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

- issued airman medical certificate or U.S.

driver’s license.

• 6. All operations must utilize a visual observer (VO). The UA must be operated within the visual line of sight (VLOS) of the PIC and VO at all times. The VO may be used to satisfy the VLOS requirement as long as the PIC always maintains VLOS capability. The VO a nd PIC must be able to communicate verbally at all times; electronic messaging or texting is not permitted during flight operations. The PIC must be designated before the flight and cannot transfer his or her designation for the duration of the flight. The PIC must ensure that the VO can perform the duties required of the VO.

• 7. This exemption and all documents needed to operate the UAS and conduct its operations in accordance with the conditions and limitations stated in this grant of exemption, are herei nafter referred to as the operating documents. The operating documents must be accessible during UAS operations and made available to the Administrator upon request. If a discrepancy exists between the conditions and limitations in this exemption and the p rocedures outlined in the operating documents, the conditions and limitations herein take precedence and must be followed. Otherwise, the operator must follow the procedures as outlined in its operating documents. The operator may update or revise its oper ating documents. It is the operator’s responsibility to track such revisions and present updated and revised documents to the Administrator or any law enforcement official upon request. The operator must also present updated and revised documents if it pet itions for extension or amendment to this grant of exemption. If the operator determines that any update or revision would affect the basis upon which the FAA granted this exemption, then the operator must petition for an amendment to its grant of exemptio n. The FAA’s UAS Integration Office (AFS

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

• 8. Any UAS that has undergone maintenance or alterations that affect the UAS operation or flight characteristics, e .g. replacement of a flight critical component, must undergo afunctional test flight prior to conducting further operations under this exemption. Functional test flights may only be conducted by a PIC with a VO and must remain at

least 500 feet from other people. The functional test flight must be conducted in such a manner so as to not pose an undue hazard to persons and property.

• 9. The operator is responsible for maintaining and inspecting the UAS to ensure that it is in a condition for safe operation.

• 10. Prior to each flight, the PIC must conduct a pre

- flight inspection and determine the UAS is in a condition for safe flight. The pre

- flight inspection must account for all potential discrepancies, e.g. inoperable components, items, or equipment. If th e inspection reveals a condition that affects the safe operation of the UAS, the aircraft is prohibited from operating until the necessary maintenance has been performed and the UAS is found to be in a condition for safe flight.

• 11. The operator must foll ow the UAS manufacturer’s maintenance, overhaul, replacement, inspection, and life limit requirements for the aircraft and aircraft

components.

• 12. Each UAS operated under this exemption must comply with all manufacturer safety

bulletins.

• 13. Under this grant of exemption, a PIC must hold either an airline transport, commercial, private, recreational, or sport pilot certificate. The PIC must also hold a current FAA airman medical certificate or a valid U.S. driver’s license issued by a state, the District of Colombia, Puerto Rico, a territory, a possession, or the Federal government. The PIC must also meet the flight review requirements specified in 14 CFR § 61.56 in an aircraft in which the PIC is rated on his or her pilot certificate.

• 14. The operator m ay not permit any PIC to operate unless the PIC demonstrates the ability to safely operate the UAS in a manner consistent with how the UAS will be operated under this exemption, including evasive and emergency maneuvers and maintaining appropriate distance s from persons, vessels, vehicles and structures. PIC qualification flight hours and currency must be logged in a manner consistent with 14 CFR § 61.51(b). Flights for the purposes of training the operator’s PICs and VOs (training, proficiency, and experie nce

- building) and determining the PIC’s ability to safely operate the UAS in a manner consistent with how the UAS will be operated under this exemption are permitted under the terms of this exemption. However, training operations may only be conducted duri ng dedicated training sessions. During training, proficiency, and experience

- building flights, all persons not essential for flight operations are considered nonparticipants, and the PIC must operate the UA with appropriate distance from nonparticipants in accordance with 14 CFR § 91.119.

• 15. UAS operations may not be conducted during night, as defined in 14 CFR § 1.1. All operations must be conducted under visual meteorological conditions (VMC). Flights under special visual flight rules (SVFR) are not aut horized.

• 16. The UA may not operate within 5 nautical miles of an airport reference point (ARP) as denoted in the current FAA Airport/Facility Directory (AFD) or for airports not denoted with an ARP, the center of the airport symbol as denoted on the curr ent FAA

- published aeronautical chart, unless a letter of agreement with that airport’s management is obtained or otherwise permitted by a COA issued to the exemption holder. The letter of agreementwith the airport management must be made available to the Administrator or any law enforcement official upon request.

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

• 18. If the UAS loses comm unications or loses its GPS signal, the UA must return to a pre

determined location within the private or controlled

- access property.

• 19. The PIC must abort the flight in the event of unpredicted obstacles or emergencies.

• 20. The PIC is prohibited from beginning a flight unless (considering wind and forecast weather conditions) there is enough available power for the UA to conduct the intended operation and to operate after that for at least five minutes or with the reserve power recommended by the manuf acturer if greater.

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

- issued COA. The exemption holder may apply for a new or amended COA if it intends to conduct o perations that

cannot be conducted under the terms of the attached COA.

• 22. All aircraft operated in accordance with this exemption must be identified by serial number, registered in accordance with 14 CFR part 47, and have identification (N

Number) mark ings in accordance with 14 CFR part 45, Subpart C. Markings must be as large as practicable.

•

• 23. Documents used by the operator to ensure the safe operation and flight of the UAS and any documents required under 14 CFR §§ 91.9 and 91.203 must be available to the PIC at the Ground Control Station of the UAS any time the aircraft is operating. These documents must be made available to the Administrator or any law enforcement official

upon request.

• 24. The UA must remain clear and give way to all manned avia tion operations and

activities at all times.

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

• 26. All Flight operations must be conducted at least 500 feet from all nonparticipating persons, vessels, vehicles, and structures unless:

• a. Barriers or structures are present that sufficiently protect nonparticipating persons from the UA and/or debris in the event of an accident. The operator must ensure that nonparticipating persons remain under such protection. If a situation aris es where nonparticipating persons leave such protection and are within 500 feet of the UA, flight operations must cease immediately in a manner ensuring the safety of nonparticipating persons; and

• b. The owner/controller of any vessels, vehicles or structu res has granted permission for operating closer to those objects and the PIC has made a safety assessment of the risk of operating closer to those objects and determined that it does not present an undue hazard.

The PIC, VO, operator trainees or essential persons are not considered nonparticipating persons under this exemption.• 27. All operations shall be conducted over private or controlled

- access property with permission from the property owner/controller or authorized representative. Permission from pr operty owner/controller or authorized representative will be obtained for each flight to be conducted.

• 28. Any incident, accident, or flight operation that transgresses the lateral or vertical boundaries of the operational area as defined by t he applicabl e COA must 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 instructions contained on the

NTSB Web site: www.ntsb. gov

.

3. CONCLUSION

Overall, UAV technology offers a more efficient, cost

- effective data collection method to the
mining, construction and agricultural industries. Utilizing the eBee will allow OceanaGold to gather data for mine planning that will save money and increase workflow efficiency. Furthermore,
the unmanned aspect decreases the risk of placing employees in hazardous conditions often
required by traditional data collection devices.

Yours sincerely,

Sean Stenson Senior Mine Engineer, Haile Go ld MineANNEX A: EXEMPTION REQUEST AND EQUIVALENT LEVEL OF SAFETY

SHOWINGS UNDER APPLICABLE RULES SUBJECT TO EXEMPTION

OceanaGold requests an exemption from the following regulations as well as any additional regulations that may technical ly apply to the operation of the eBee:

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

Section 91.203 requires all civil aircraft to have a certificate of airworthiness. Part 21, Subpart H,

entitled Airworthiness Certific ates, establishes the procedural requirements for the issuance of airworthiness certificates as required by FAR § 91.203(a). Given the size of the eBee, its very light weight (the maximum take

- off weight is 1.7 pounds) and the limited operating area

associ ated with its utilization, it is unnecessary to go through the certificate of airworthiness process under Part 21 Subpart H in order to achieve or exceed current safety levels.

Such an exemption meets the requirements of an equivalent level of safety und er Part 11 and

Section 333 of the Reform Act. The Federal Aviation Act and Section 333 of the Reform Act both authorize the FAA to exempt aircraft from the requirement for an airworthiness certificate, upon consideration of the size, weight, speed, operati onal capability, and proximity to airports and populated areas of the UAS involved. An analysis of these different criteria demonstrates that the eBee operated without an airworthiness certificate, under the conditions proposed in that exemption, will be a t least as safe, or safer, than a conventional aircraft with an airworthiness certificate. A proprietary risk assessment for operations with the eBee, which demonstrates that assertion, is also being submitted to the FAA as part of this application. Oceana Gold requests the FAA treat the eBee risk assessment as proprietary under 14 C.F.R. 11.35(b) and not include this document in the public docket.

14 C.F.R. § 61.3: Requirements for certificates, ratings and authorizations
14 C.F.R. § 61.113(a) & (b); 61.13 3(a): Private Pilot Privileges and Limitations; Pilot in
Command; Commercial Pilot Privileges and Limitations

The regulation provides that no person may serve as a required pilot flight crewmember of a civil aircraft of the United States, unless that per son:

(1) Has a pilot certificate or special purpose pilot authorization issued under this part in that person's physical possession or readily accessible in the aircraft when exercising the privileges of that pilot certificate or authorization. However, w hen the aircraft is operated within a foreign country, a pilot license issued by that country may be used.

The regulation provides also that no person that holds a private pilot certificate may act as pilot in command of an aircraft for compensation or hi re. Subparagraph (b) allows a private pilot to act as pilot in command of an aircraft in connection with any business or employment if:

(1) The flight is only incidental to that business or employment; (2) The aircraft does not carry passengers or prop erty for compensation or hire.

Given the safety features of the eBee and the fact that the missions are pre

- programmed and

monitored in real

- time with a specific flight management software (eMotion), SenseFly proposes that operators of the eBee should not be required to hold a commercial pilot certification. Instead, operators should be required to:Have a sport or recreational pilot license (at least) and have successfully passed a manufacturer’ s training program for the eBee.

14 C.F.R. § 91.7(a): Civi l aircraft airworthiness

This regulation requires that no person may operate a civil aircraft unless it is in airworthy

condition. Should the exemption be granted allowing commercial operation of the eBee without

an airworthiness certificate, no standard will exist for airworthiness of the eBee. Given the size of the aircraft and the previous airworthiness assessments given to the eBee, among others:

• New Mexico State University: https://newscenter.nmsu.edu/Articles/view/10208/nmsu

uas

- flight

- test

- center

- conducts

- ebee

- airworthiness

- assessment

• USACE New Orleans, who coordinated with the Department of Army and the FAA to

obtain all authorizations required in order to operate the eBee UAS for levee system monitoring, documentation of construction progress, and extensive oblique photography

of USACE structures & activities

An equivalent level of safety will be achieved by insuring compliance with the SenseFly manuals prior to each flight.

14 CFR § 91.119: Minimum Safe Altitudes

The regulation provides that over sparsely populated areas the aircraft cannot be operated closer than 500 feet to any person, vessel, vehicle, or struc ture. Since the aircraft will be operating at a maximum of 400 feet AGL, the eBee cannot comply with this requirement.

The equivalent level of safety will be achieved because the eBee will only fly over private property with the permission of the landowne r. The operator will define before every flight a working area radius and a flight area ceiling, preventing the eBee to go beyond the flight area. The landowner and the persons who may be on the ground in the flight area will be briefed of the expected rou te of flight and the associated risks to persons and property on the ground. Due to the small size of the eBee and the material with which the eBee is built, the hazard to persons, vessels, vehicles, and structures is not comparable to manned aircraft and should be considered in granting the exemption.

Moreover, the aircraft will not be operated over congested areas nor over any open

- air assembly of persons. The aircraft will be operated at an altitude allowing, if a power unit fails, an emergency landing without undue hazard to persons or property on the surface.

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

The regulation provides that no person may begin a flight in an airplane under day

- VFR conditions unless there is enough fu el to fly to the first point of intended landing and to fly after

that for at least 30 minutes.

Given the area of operation for the eBee, OceanaGold believes that an equivalent level of safety is already achieved with the specific procedure preventing the eBee to accept a take

- off order is the battery level is below a given value. Moreover, SenseFly has integrated “low” and “critical” battery level warnings and implemented a “return to Home” (and “Go Land”) actions in these

situations.14 CFR Subpart E (91 .401

- 91.417)

- Maintenance, Preventive Maintenance, and

Alterations

The regulation provides that the operator is primarily responsible for maintaining the aircraft in an airworthy condition, including compliance with Parts 39 and 43. Paragraphs 91.407 and 91.409 require that the aircraft be "approved for return to service by a person authorized under 43.7" after maintenance and inspection. Section 91.409(a)(2) requires an annual inspection for the issuance

of an airworthiness certificate. Section 91.417 (a) requires the owner or operator to keep 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.

OceanaGold proposes that the maintenance of the eBee will be accomplished by the owner/operator according to the maintenance manual, provided by SenseFly. OceanaGold requests the FAA treat the eBee training program as proprietary under 14 C.F.R. 11.35(b) and not

include this document in the public docket.

An equivalent level of safety will be achieved because the eBee is small in size, it is not a complex mechanical device, it will carry no external payload, and it will operate only in restricted predetermined areas. 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. Finally, before every flight, the eBee runs automatically a sequence of pre

- flig ht tests to make sure that every sensor and every critical part is running properly. If a problem is detected,

the eBee will not be able to be switched

- on and a message error is displayed on the main screen of

t he flight management software . The operator can then refer to the maintenance manual to troubleshoot this issue. Several parts of the eBee are easily interchangeable (propellers, wings), which allows the operator to make sure the wings and propulsion system are always airworthy

when a mission is ini tiated.