# March 25, 2015 U.S. Department

of Transportation Docket Operations West Building Ground Floor Room W12-140 1200 New Jersey Avenue, SE Washington,
DC 20590



# ~ 

# COZEN \._)o'CONNOR David Heffernan Direct Phone 202-463-2537 Direct Fax 202-640-5985 dheffernan@cozen.com 

# Re: CyPhy Works, Inc. Petition for Exemption Pursuant
to Section 333 of the FAA Modernization and Reform Act of 2012 and 14 C.F.R. Part 11 Dear Sir or Madam: Pursuant
to Section 333 of the FAA Modernization and Reform Act of 2012

, Pub

. 

# L. No. 112-095, (the "Act") and 14 C.F.R. Part 11, CyPhy Works, Inc. ("CyPhy Works"), the manufacturer and operator
of the Persistent Aerial Reconnaissance
and Communication System ("PARC"),

a tethered aerial device, hereby petitions for an exemption from the following Federal Aviation Regulations ("FARs"):
14 C.F

. R. 

# §§ 61.113(a)

& (b), 91.7(a), 91.119, 91.121, 91.151(a)

, 91.405(a), 91.407(a)(1), 91.409(a)(1)

& 

# (a)(2), and 91.417(a)

& 

# (b).

1 

# CyPhyWorks also requests that the FAA grant

it a blanket Certificate
of Waiver or Authorization ("COA") for PARC flights at or below 200 feet pursuant
to the FAA's recently announced interim policy

. 2 

# CyPhy Works seeks an exemption

to enable

it to operate its PARC tethered aerial device
in the National Airspace System ("NAS"). PARC will be utilized to conduct

a range of activities, including aerial inspection, agricultural management and research, construction site management,
law enforcement, emergency first responder communications

, asset surveillance and observation

, energy and mining facilities monitoring and inspection, and unmanned aircraft system ("UAS") testing

. In addition
to being the manufacturer

of PARC, CyPhy Works plans to utilize the requested exemption

in order to operate PARC on behalf of its customers. During such operations, CyPhy Works will retain operational control of PARC at all times while PARC
is 1 

# CyPhy Works' PARC
is a tethered aerial device

. Until recently

, the FAA specifically excluded

" tethered aircraft" from its definition
of "unmanned aircraft

. " See 

# Integration

of Civil Unmanned Aircraft Systems (UAS)
in the National Airspace System (NAS) Roadmap, First Edition 2013, at 8 and 49

(

" [Unmanned Aircraft] UA do not include

..

. tethered aircraft

. "); see also 

# Unmanned Aircraft Systems (UAS) Operational Approval, FAA Order 8900.227, July 30, 2013, at A-5 ("UA do not include ... tethered aircraft.")

. CyPhy Works believes that the unique features of PARC

' s tethered operations differentiate

it from unmanned aircraft that operate unrestricted and untethered, which clearly fall within the FAA

' s definition
of

" unmanned aircraft

." CyPhy Works
is submitting this petition
to the extent that the FAA may require the operators
of tethered aerial devices
to obtain

e x emption authority
to operate such devices

in the NAS

. CyPhy Work
s hereby reserves and does not waive its legal right to assert that its PARC aerial device does not constitute
an

" unmanned aircraft

. " 2 

# FAA Press Release, FAA Streamlines
UA S COAs for Section 333

, March 23

, 2015

. 16271 Street, NW Suite 1100 Washington

, D

. C. 20006 202

. 912

. 4800 800.540

. 1355 20 2.861.1905 Fox cozen.com

### U.S. Department

of Transportation Docket Operations March 25, 2015 Page
2 operating

in the NAS. CyPhy Works has customers who would like it to begin operating PARC on their behalf as soon as all necessary governmental approvals are obtained. Therefore, CyPhy Works respectfully requests that the FAA grant this exemption
as soon as possible. As demonstrated

in this petition and the accompanying documents, the proposed operations

of PARC pose no safety concerns. PARC
is a small aerial, hex-rotor, tethered device that may elevate up to 400 feet, but at all times remains securely tethered
to the ground

. The tensile tether,
in addition
to securing the aerial device to the ground,

is both
a power source and a data communications transmission mechanism. PARC
is unusual not only due to the tether feature and its unique properties and functions, but also because

it is typically stationary once

it reaches its desired altitude and is designed
to remain

in place at that elevation for extended periods of time. The device
is designed

to initiate an automatic landing

in the event that the tether
is cut, the power to the device

is lost, or communications
with the base station are interrupted.

In such situations, PARC makes

a controlled descent and gently lands in place. Because PARC receives
its power from the ground,

it does not rely on fuel.

It also is not battery-operated (although

it does have
a small onboard battery

, which
is a safety feature to enable

a controlled descent and landing

in the unlikely event that the tether

is compromised,

or if ground-based power or communications
with the operator are interrupted)

. Thus, the operation
of PARC does not involve any of the safety risks associated with airborne fuel or battery operations. PARC
is a unique and highly innovative product that is quite different from untethered unmanned aircraft,

in terms of its features, the way that
it operates, and its safety functions. Unlike untethered dev

i ces that could easily lose wireless
or broadcast communication with their ground-based operator, thereby potentially compromising control of the device, PARC
is subject to more direct, physical control modality via its tether to its base station.

In addition,tetherbased command and communication

is a wired function

, and is not subject to radio interference interruption. PARC weighs approximately 21.75 lbs. when operating with its full payload capacity
of 3.6 lbs.
It carries neither

a pilot nor passengers

. It carries no explosive materials nor flammable liquid fuels

, and will operate

in a stationary position exclusively within

a secured area as set out in the PARC Operator's Technical Manual, attached as Exhibit

1 (hereinafter, "the Manual").

3 

### The hex-rotor feature also offers additional safety protections because the device can maintain
its altitude/position even
if one or two of the individual rotors were to cease functioning. PARC's operations under this exemption will be tightly controlled and monitored

at all times by the operator, pursuant
to the Manual's requirements, and, to the extent applicable

, in compliance with local public safety requirements. Finally

, PARC does not pose any threat to national security due to its size, speed of operation, location of operation, tether-limited range

, lack of explosive materials
or flammable liquid fuels, and inability to carry
a substantial external load

. Additional information regarding PARC and its operations

is provided

in Appendix

A hereto. The operation
of PARC will provide significant enhancements

to surveillance, area management, and observation operations

. As the FAA has found, an unmanned aerial device 3 CyPhy Works confidentially submits its PARC Operator's Technical Manual under seal and requests that
it be withh
e ld from public disclosure pursuant
to 14 C

. F.R.
§ 11

. 35(b). The M an u a l contains proprietary inform ation regarding PARC

' s operating conditions and procedures that are confident

i al, not made available
to the public

, and are protected from release under the Freedom
of Information Act, 5 U.S

. C. §§ 552 et. seq.

### U.S. Department

of Transportation Docket Operations March 25, 2015 Page
3 provides "an additional tool" for companies, adding

a higher level of operational flexibility that a supplement existing capabilities offered by manned aircraft

. 4 

### Approval
of this exemption would enhance public safety by providing an option to use a highly controlled aerial device (due to its being tethered
to a base station) that remains stationary once deployed, instead of using an untethered device that is in constant motion while in flight, and that could potentially lose contact or communication with its operator, thereby compromising control of the device. Allowing CyPhy Works to operate PARC
in the NAS would promote Congress' mandate
to the Department

of Transportation and the FAA to" ... establish requirements
for the safe operation of [unmanned] aircraft systems

in the national airspace system"

in accordance with Section 333(c) of the Act.

5 

### Accordingly, CyPhy Works respectfully submits that this petition satisfies the FAA's criteria for granting an exemption pursuant
to section 333 of the Act. Grant of an Exemption

to CyPhy Works Would be Consistent With Recent FAA Exemption Approvals. The FAA's grant of the exemption requested herein would be consistent with recent FAA exemption approvals

. The FAA has granted relief similar to that requested
by CyPhy Works for aerial devices that are similar
in terms of their limited size and weight as PARC, finding that the operation
of such devices would not adversely affect safety compared

to similar operations conducted with aircraft that have been issued an airworthiness certificate under 14 C.F.R. Part 21, Subpart
H. 6 

### PARC, however, has the added safety advantages

in terms of its design features and mode of operation (always tethered and in a stationary position with essentially
no risk of loss of control)

. The FAA has found that an aerial device similar to PARC with limited weight "significantly reduces the potential for harm to participating and nonparticipating individuals

or property

in the event of an incident or accident" and that the risk of any harm to an on board pilot or flight crew during an incident or accident

is completely eliminated with the use of similar unmanned aerial devices.

7 

### The FAA has also confirmed that while manned aircraft could spill fuel, potentially resulting

in a fire in the event of an incident or accident, aerial devices such as PARC, which carry no fuel, pose no fuel spillage
or fire risk following
an incident
or accident.

8 

### In addition, the FAA has found that the enhanced safety achieved using an 4 See Petition of Aerial Mob, LLC for Exemption, Exemption
No

. 11066, Regulatory Docket No. FAA-2014-0353, September 25, 2014 ("Aerial Mob Exemption"),

at 2 ; Petition of Pictorvision
Inc

. for Exemption, Exemption
No

. 11067, Regulatory Docket No. FAA

- 2014-0357, September 25, 2014 ("Pictorvision Exemption"),

at 2; Petition of HeliVideo Productions LLC for Exemption

, Exemption No. 11065, Regulatory Docket No. FAA-2014

- 0354, September
25

, 2014 ("HeliVideo Exemption"),

at 2 . 5 To the extent necessary, CyPhy Works will notify FAA Flight Standards District Offices (FSDOs) prior to operating flights that are subject to such notification requirements. 6 See Petition of Astraeus Aerial for Exemption,

E xemption No

. 11062

, Regulatory Docket No. FAA-2014-0352, September
25

, 2014 ("Astraeus Exemption")

, at 12-13; Aerial Mob Exemption

at 2; Pictorvision Exemption

at 2 . 7 Astraeus Exemption

at 13

; Petition ofCiayco, Inc. for Exemption, Exemption
No

. 11109, Regulatory Docket No. FAA-2014-0507

, December 10, 2014 ("Ciayco Exemption"),

at 10; Petition of Douglas Trudeau for Exemption, Exemption No. 11138, Regulatory Docket No. FAA-2014-0481, January

5 , 2015 ("Trudeau Exemption"),

at 11; Petition of Advanced Aviation Solutions LLC for Exemption, Exemption
No

. 11136, Regulatory Docket No.FAA2014

- 0508

, January

5 , 2015 ("Advanced Avi a tion Solutions Exemption"),

at 12

. 8 Astraeus Exemption

at 13; Clayco Exemption"),

at 1 0; Trudeau Exemption

at 12; Advanced Aviation Solutions Exemption

at 12

.U

. S. Department

of Transportation Docket Operations March 25, 2015 Page
4 unmanned aircraft with certain specifications and carrying no passengers

or crew, instead of a manned aircraft of significantly greater size and weight, carrying crew in addition to flammable fuel, provided good cause to find that UAS operations authorized
by an exemption were in the public interest.

9 

### Request for Exemption. In support of its exemption petition, and as required under 14 C.F.R.



### § 11

. 81, CyPhy Works states the following: 1) The name and address
of the petitioner

is: CyPhy Works, Inc. 16C Electronics Avenue Danvers, MA 01923 Telephone: 980-329-0972 Contact person

: Kristen Helsel, Vice President

- Commercial Systems E-mail: kristen

. helsel@cyphyworks.com 2) Regulations from which the exemption

is requested: CyPhy Works requests an exemption from the following sections
of the FARs: 14 C.F.R. 

### § 61.113(a)



### & (b); 14 C.F

. R. 

### § 91

. 7(a); 14 C.F

. R. 

### § 91

. 119; 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)(2)

; and 14 C.F.R.



### § 91.417(a)

& (b).

10 

### 14 C.F.R.

§ 

### 61.113(a)



### & (b): Private Pilot Privileges and Limitations: Pilot in Command. CyPhy Works requests an exemption from sections
61

. 113(a)


### & (b), which limit private pilots to non-commercial operations

. Section 61.113 states that "(a) no person who holds
a private pilot certificate may act as a pilot in command ("PIC") of an aircraft that is carrying 9 Ae rial Mob Exemption

at 2 ; Pictorvision Exemption

at 2; HeliVideo Exemption

at 2 . 10 When considering the size

, weight, speed

, and limited operating area associated with aerial devices sim

i lar to PARC and its operations

, the FAA has determined that such devices meet the conditions

of Section 333

, and that previous petitioners' requested relief from 14 C

. F.R

. Part 21 (Airworthiness Certificates)

, and any associated noise certification and testing requirements

of 14 C.F.R. Part 36, was not necessary

. S e e Astraeus Exemption

at 14

; Clayco Exemption

at 1 0 ; Trudeau Exemption

at 11

; Advanced Aviation Solutions

E xemption
at 12

. The FAA has also previously determined that an exemption from 14 C

. F

. R. § 45

. 23(b) (Di s play of Marks)
is unnecessary
for aeri a l devices such as PARC that a r e not certificat

e d . S ee Astraeus Exemption

at 14; Clayco Ex e mption at 11

; Advanced Aviat

i on Solutions Exemption

at 13

. Similarly

, when previous petitioners sought relief from 14 C

. F.R. § 91.9(b)(2) (Civil Aircraft Flight Manual

in the Aircraft) and 14 C.F.R.

§ 91.203(a) and (b) (Civil aircraft

: Certifications),
the FAA stated that based on its Memorandum "Interpretation regarding whether certa

i n required documents may be kept at an UA

' s control station

, " dated August

8 , 2014

, the requested relief from§§ 91.9(b)(2) and 91.203(a) and (b) was not nec e ssary, and that relevant materials could be k e pt in a location accessible

to the PIC in compliance with the r e gulations

. S ee Clayco Exemption

at 14

; Advanc

e d Aviat

i on Solutions Exemption

at 16

. In addition

, the FAA has s a id that
it is unn e c essa ry for op e r a tors of unm a nned aerial

d e vic e s to seek
a n e xemption fro m 14 C

. F

. R. § 91

. 103 (Pr e flight Action)

. S ee Cl a yco E x e mption at 14; A str ae us E x e mption at 20

. T h e F A A has a lso d e t e rmined
th a t an exemption from 14 C.F.R

. §91

. 1 09 (Flight Instruction)

is not required. Se e Advanced Aviation Solutions Exemption

at 16

.U.S. Department

of Transportation Docket Operations March 25, 2015 Page
5 passengers

or property for compensation

or hire, nor may that person, for compensation

or hire, act as pilot in command
of an aircraft, and (b) a private pilot may, for compensation

or hire, 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, and (2) the aircraft does not carry passengers or property for compensation

or hire." Unlike

a conventional aircraft that carries

a pilot and passengers, PARC
is remotely controlled with no living beings on board. The device operates autonomously and no pilot skills are needed
to fly it. Its area of operation

is controlled and restricted, and all flights are planned and coordinated

in advance as set forth in the Manual. The level of safety provided
by the requirements included

in the Manual exceeds that provided by a single individual holding

a pilot's certificate operating

a conventional aircraft. The risks associated with the operation
of PARC are so diminished from the level of risk associated with commercial operations contemplated

by Part 61 that allowing operations

of PARC as requested with
a private pilot as the PIC exceeds the present level of safety required by 14 C.F.R.



### § 61.113 (a) & (b). The FAA has recently exempted operators
of aerial devices similar to PARC from the requirements

of 14 C.F.R.



### § 61.113(a)



### & (b). As the FAA has found, the areas of knowledge specified

in 14 C.F.R. Part 61 for that of a commercial pilot versus

a private pilot cover the same fundamental principles.

11 In its approval
of an exemption for Astraeus Aerial, the FAA determined that a PIC with
a private pilot certificate operating
an unmanned aerial device would not adversely affect operations

in the NAS or present

a hazard to persons or property on the ground.

12 The FAA found that the flight experience obtained
by an operator
of an unmanned aerial device beyond that required for a private pilot certificate

in pursuit of a commercial pilot certificate

in manned flight "does not necessarily aid a pilot in the operational environment
[of an unmanned aircraft]" and the FAA considered the "overriding safety factor" for unmanned aerial device operations

to be "the airmanship skills acquired through UAS-specific flight cycles, flight time, and specific make and model experience, culminating

in verification through testing."

13 The FAA stated that the combination

of aeronautical knowledge, UAS airmanship skills, and verification through testing was sufficient for a UAS operator
to evaluate

a pilot's qualifications for operations conducted under the FAA's exemption

. 14 The FAA determined that the "knowledge and airmanship test qualifications" developed
by the UAS operator, similar to those proposed
by CyPhy Works for its PARC operations, would ensure safety and that no established practical test standards existed that would support

a jurisdictional FAA FSDO evaluation and approval
of the UAS operator's designated examiners. The FAA acknowledged that given the limitations

of the proposed aerial device operations,

it believed such test qualifications would not adversely affect the safety of the NAS. 15 The FAA found that a PIC holding

a private pilot certificate and a third-class airman medical certificate who had completed the operator's training and flight currency requirements could conduct the proposed operations 11 Astraeus Exemption

at 15-17. 12 Astraeus Exemption

at 18; see also Clayco Exemption

at 12

. 1 3 Astraeus Exemption

at 18

; Clayco Exemption

at 12

. 14 Astraeus

E xemption

at 18. 1 5 Astraeus Exemption

at 18

.U

. S . Department

of Transportation Docket Operations March 25

, 2015 Page
6 without adversely affecting the safety of the NAS and persons
or property on the ground and was appropriate
for the operation
of unmanned aerial devices

. 16 14 C.F.R.

§ 91.7(a): Civil Aircraft Airworthiness. CyPhy Works requests an exemption from section 91.7(a), which requires that no person may operate

a civil aircraft unless the aircraft

is in airworthy condition

. As there will be no airworthiness certificate issued for PARC, approval
of this exemption should be granted because no FAA regulatory standard will exist for determining airworthiness

. Given PARC

' s size and the requirements contained

in the Manual for maintenance and performance

of a safety check prior to each flight, an equivalent level of safety will be provided. The FAA has recently granted other petitioners' requested relief from section 91. 7(a)

. The FAA has stated that although

a UAS will not require an airworthiness certificate

in accordance with 14 C.F

. R. Part 21, Subpart
H, its operator's compliance with its Flight Manual was a sufficient means for determining

an airworthy condition

in accordance with section 91.7(a).

17 As required by the FAA, CyPhy Works will ensure that its aerial device

is in an airworthy condition

- based on compliance with its manuals and performance

of a safety check - prior to every flight.
18 14 C.F.R.

§ 91.119: Minimum Safe Altitudes. To the extent the FAA may deem

it necessary, CyPhy Works requests an exemption from section
91

. 119, which establishes safe altitudes for the operation
of civil aircraft. Section 91

. 119(d) allows helicopters

to be operated

at less than the minimums prescribed, provided the person operating the helicopter complies with any route or altitudes prescribed for helicopters
by the FAA

. The requested exemption

is for an aerial device that (as the FAA has found
in previous cases)

is similar to a helicopter with respect
to altitude of operations

. To the extent the FAA may deem

it necessary, CyPhy Works requests an exemption that would authorize operations

at altitudes from
0 AGL up to 400 AGL

. As set forth herein, PARC will not operate
at higher than 400 AGL in restricted areas with a safety perimeter, where the general public will not be exposed
to operations. PARC's maximum operating height

is limited by the length of its tether

. The equivalent level of safety will be achieved given PARC's size, weight, and speed, as well as the location where

it is operated

. No flight will be taken over property without the permission

of the property owner. Because
of the advance notice to the property owner and participants

in PARC's activity, all affected individuals will be aware of the planned flight operations
as set forth in the Manual. Compared

to flight operations with aircraft or rotorcraft weighing far more than the approximately

15 lbs

. gross total operating we

i ght of PARC, and the 16 See Clayco Exemption

at 12

; Trudeau Exemption

at 13

. 17 Clayco Exemption

at 13; Advanced Aviation Solutions Exemption

at 15; Trudeau Exemption

at 17

. 18 Additionally,

in accordance with 14 C.F.R

. § 91

. 7(b), the PIC of an unmanned aerial device
is responsible
for determining whether the aircraft

is in a condition for safe flight.
In granting section 333 exemptions, the FAA has determined that the PIC can comply with this requirement, and therefore relief from§ 91.7(b)

is not necessary

. See Advanced Aviation Solutions Exemption

at 16

; Clayco Exemption

at 13

.

### U.S. Department

of Transportation Docket Operations March 25, 2015 Page
7 lack of flammable fuel, any risk associated with these operations

is far less than the risk posed by the operation
of conventional aircraft operating

at or below 500 AGL in surveying and inspection work.
In addition, the low-altitude and stationary nature of PARC's operations will ensure separation between these small devices' operations and the operations

of conventional aircraft that must comply with Section 91.119. The FAA has granted similar exemptions from 14 C.F.R. §91.119
to previous petitioners

. 19 

### 14 C.F.R.

§ 

### 91.121 Altimeter Settings. CyPhy Works requests an exemption from section 91.121, which requires each person operating
an aircraft to maintain cruising altitude by reference
to an altimeter that is set

" ... to the elevation
of the departure airport or an appropriate altimeter setting available before departure

. " As PARC does not utilize an altimeter, but rather relies on a digital barometric sensor and/or

a GPS altitude read out, an exemption may be needed. An equivalent level of safety will be achieved by the operator, pursuant
to the Manual, confirming the altitude of the launch site shown on the ground station altitude indicator before flight. The FAA has recently granted exemptions from 14 C.F.R.

§ 91.121 to other operators
of unmanned aerial devices

. The FAA found that even though an operator would not have
a typical barometric altimeter onboard the aircraft, its intention
to operate

a UAS within VLOS and at or below 400 feet AGL, combined with its intention
to provide altitude information

to the UAS pilot via a digitally encoded telemetric data feed, which downlinks from the aircraft to agroundbased on-screen display, was a sufficient method for ensuring the UAS operations did not adversely affect safety and that "good cause" existed for granting the requested relief to 14 

### C . F . R. § 91

. 121

. 20 

### 14 C.F.R.

§ 

### 91.151(a): Fuel Requirements
for Flight in VFR Conditions. CyPhy Works requests an exemption from section 91.151 (a), which 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." PARC
is not powered by fuel

; it has a tether-powered operational system that provides potentially unlimited flight persistence

. Given the limitations
on PARC's proposed flight area and the location of its proposed operations within

a predetermined area,
a fuel reserve requirement
for flight in daylight or night VFR conditions

is unnecessary

. Prior relief has been granted for manned aircraft to operate
at less than the prescribed minimums, including FAA Exemption Nos

. 2689, 5745, and 10650

. In addition, similarUASspecific relief has been granted

in FAA Exemption Nos. 8811, 10808, and 10673 for daytime

, VFR conditions. 19 Astraeus Exemption

at 20-21; Clayco Exemption

at 14-15; Advanced Aviation Solutions Exemption

at 17

. 20 Astraeus Exemption

at 21

; Clayco Exemption

at 15

; Advanced Aviation Solutions Exemption

at 17.U.S. Department

of Transportation Docket Operations March 25

, 2015 Page
8 

### 14 C.F.R. §§ 

### 91.405(a); 407(a)(1); 409(a)(1); 409(a)(2); 417(a) 

### & (b): Maintenance Inspections. CyPhy Works requests an exemption from the above-referenced subsections

of Part 91 of the FARs, which require that an aircraft operator or owner "shall have that aircraft inspected as prescribed

in subpart

E of this part and shall between required inspect

i ons, except as provided

in paragraph
(c) of this section, have discrepancies repaired as prescribed

in part 43 of this chapter

.. . ," and "others shall inspect or maintain the aircraft
in compliance with Part 43.
" Given that these sections and Part 43 apply only to aircraft with an airworthiness certificate, these sections would not apply to PARC

. Maintenance

on PARC will be performed
by its operator pursuant
to the

i nstructions referenced

in the Manual. An equivalent level of safety will be achieved because PARC
is limited
in size with a very small payload and w

i ll operate only in restricted areas at elevations
no higher than 400 feet AGL

. In the unlikely event that mechanical issues arise, PARC can land immediately

. As provided

in the Manual, the operator will ensure that PARC
is in working order prior to initiat

i ng flights, perform required basic maintenance, and keep
a log of any maintenance performed

. The operator will be the person most familiar with the aerial device and best suited to ma

i ntain

it in an airworthy condition
to prov

i de the equivalent level of safety

. The FAA evaluated previous petitioners

' requests and determined that cause for granting the exemption was warranted because their manuals contained daily

, preflight

, monthly and yearly checks for the UAS

. The FAA found that adherence

to the manua

l s, as required by the conditions and limitations imposed by the exemption, was suffic

i ent to ensure that safety was not adversely affected

. 21 

### Summary
of Federal Register Notice. CyPhy Works provides the follow

i ng summary for publication

i n the 

### Federal Register. Petit

i oner: CyPhy Works, Inc. Section of 14 C

. F

. R. Affected: 14 C

. F

. R. 

### § 61

. 113(a)
& (b)

; 14 C.F.R.



### § 91.7(a)

; 14 C.F

. R. 

### § 91

. 119;

1 4 C

. F.R.


### § 91

. 121; 14 C.F.R.



### § 91

. 151(a)

; 14 C

. F

. R. 

### § 91.405(a)

; 14 C.F.R.



### § 91.407(a)(1)

; 14 C.F

. R. 

### § 91.409(a)(2)

; and 14 C.F.R.



### § 91.417(a)



### & (b)

. Description

of Relief Sought: The petitioner

, a manufacturer and operator
of tether

powered small aerial devices,

is seeking an exemption

to commercia

ll y operate its tether-powered
aer

i al device

, weighing approximately

21

. 75 lbs. when carrying
its maximum payload

, to conduct aer

i al inspection

, agr

i cultural management and research

, construction site management

, law enforcement

, emergency first responder communications

, asset surve

i llance and observation

, energy and mining facilities monitoring and inspect

i on

, and UAS testing. 21 Astraeus Exemption

at 14-15; Clay
c o Exemption

at 11; Advanced Aviation Solutions Exemption

at 13.U.S.DepartmentofTransportationDocketOperationsMarch25,2015Page9Conclusion.AsdemonstratedinthispetitionandtheenclosedManual,CyPhyWorks'PARCtetheredaerialdevicesatisfiesallofthecriteriaforexemptionunderSection333oftheAct.PARC'ssize,weight,speed,operatingcapabilities,proposedoperationsnotinproximitytoairportsandpopulatedareas,andproposedoperationswithinvisuallineofsight,aswellasitslackofeffectonU.S.nationalsecurity,justifytheFAA'sapprovalofCyPhyWorks'petitionforexemption.Accordingly,CyPhyWorksrespectfullyrequeststhattheFAAgrantitsrequestedexemptionallowingthecommercialoperationofPARCinordertoenhanceaerialinspection,agriculturalmanagementandresearch,constructionsitemanagement,lawenforcement,emergencyfirstrespondercommunications,assetsurveillanceandobservation,energyandminingfacilitiesmonitoringandinspection,andUAStesting.CyPhyWorksalsorequeststhattheFAAgrantitablanketCertificateofWaiverorAuthorization("COA")forPARCflightsatorbelow200feetpursuanttotheFAA'srecentlyannouncedinterimpolicy.Sincerely,COZENO'CONNORJJcMfldBy:DavidHeffernanCounselforCyPhyWorks,Inc.

### Appendix

A General Description

of PARC 

### PARC
is a small, hex-rotor tethered aerial device designed and equipped
to conduct aerial inspection, agricultural management and research, construction site management,
law enforcement, emergency first responder communications, asset surveillance and observation, energy and mining facilities monitoring and inspection, and unmanned aircraft system ("UAS") testing.

It is powered from the ground using
a patented microfilament tether that also provides secure 10 Mbps Ethernet data connection

to a ground station. PARC offers automatic takeoff, hovering and landing

in commercial grade/industrial strength chassis

. On-board battery backup allows safe, autonomous landings

if base station power or communications
are interrupted

. Depending
on how

it is outfitted, PARC weighs approximately 21.75 lbs. when operating with its full payload capacity
of 3.6 lbs. From rotor base to rotor base,

it is about 39 inches wide at its widest diameter.
Its maximum operating altitude above ground

is approximately 500 feet, but in order to comply with FAA requirements, PARC would be operated

at a maximum altitude of 400 feet. Because the length of its tether
is relatively short and limited, PARC can be operated within the visual line of sight of the operator and will operate only within the area described

in the confidential Operator's Technical Manual, attached as Exhibit

1 (hereinafter "the Manual"). Such tethered operations ensure that PARC will"not create

a hazard to users of the National Airspace System or the public," as required by Section 333(b) of the Act.

It can maintain
its location

in continuous wind speeds of 25 knots

, gusting
to 35 knots.
In addition, PARC can operate via 35 watts of payload power from
a total system draw of 2KW (including spooler and base station), which can be furnished
by grid or generator

, with air vehicle power provided via a microfilament tether managed
by an intelligent spooler. Ethernet communications used by PARC are not broadcast, and therefore do not use radio frequencies. Payloads are similarly controlled, using the system's on-board Ethernet connections. PARC passes those communications down from the payload
to its base station

, which
in turn immediately routes them to a supplemental computer used to control the imaging or other sensing payload

. CyPhy Works has no current plans to use radio frequencies,
not even for payload control. As required by the FAA, PARC will be operated within visual line-of-sight (VLOS),

in accordance with Section 333(b)(1

). PARC

is designed for maximum operator attention
to mission rather than flight micromanagement. Operators can select

a target altitude and launch the device with minimal effort

. Software governs in-flight response

to changing wind conditions, and responds with automated, controlled flight termination and landing

if communications

or power
is lost. Operators can direct the vehicle
to a new altitude and re-orient the payload gimbal mid-flight

if focus on a new observation area or new position

is desired, but once that new area of interest

is specified, again via simple commands, operators are freed to monitor sensor output. Safe landing

is also automated, with no need to pilot the vehicle down to the ground

.Forfielddeployment,PARC'spayloadscurrentlyincludeaHighDefinitionvideocamerawith12xopticalzoom,mountedona3-axis,gyro-stabilizedgimbal.Amultispectralcameraoptionisalsoavailable.PARCcanalsocarryautomaticdependentsurveillance-broadcast(ADS-B)transponders,andcanassistinevaluatingtheeffectivenessofADS-Bsend/receivetechnologyforsense-and-avoidmanned-assistandautonomousbehaviors;andforgee-fencingapplications.ADS-Bsensingcanprovidecuestovehicleoperators,allowingman-in-the-loopcontrollerstoredirectunmannedaircraftsystems("UAS")thatmaycompromisetheflightpathsofothervehicles,orthatmightstrayintointerdictedairspace.Thesamecuescaninformautomatedsense-and-avoidbehaviorsthatadjustvehiclealtitudeordirectionwithouttheneedforoperatorintervention.PARCcanbeprogrammedtouseADS-Binputforsense-and-avoid,supportingproof-of-conceptstudies.Inaddition,becauseitusesground-basedpower,andiscapableofautonomousflight,PARCcanoperate24/7withminimaloperatorattention.Thismakesitidealforuseasatestvehicle-aflyerloftedataneasilymonitoredandstablelocation,providingADS-Bbroadcast,forUAStosenseandinitiateavoidanceprocedures.Forexample,aUASusingADS-B-InmightseePARCcodedasanobstacle(currentclassificationsthatmaybeusedincludeaerostatandantennatower),andusestandardavoidancezonesassociatedwiththatcoding.Itcanbepositionedatthedesiredtestrange,withinvisualobservationrange,andbroadcastitspresence.PARC'son-boardcamerasandground-basedcamerascanthenwatchandrecordthebehaviorofUASsinitsvicinity.PARCisdesignedandequippedforassetsurveillancedeployments.UseofPARCprovideslong-timestaticpositionplacement.PARC'slong-dwellautonomousoperationsallowittobepositionedoveranareaofinterestforextendedobservation.Itsabilitytoberelocatedwhenanomaliesaredetectedmakeitespeciallyusefulforconfinedareasthataredifficulttoaccess,aswellasforchangingvenues.Oneexampleofthesemightbeashippingcontainerstagingarea,inwhichthecargoloadscomeandgo,creatingalleysandvisualcanyonsthatcanbeoutofrangeoffixedsurveillanceassets.Avehicle-mountedPARCunitcouldbere-basedasneeded duringtheday,withintheconfinesofastorageyard.PARCcanalsobeoutfittedwithsensorsrequiredforcropornaturalareamanagement,dependingonoversightneeds-longdurationmonitoringofasmall,well-definedarea;oroversightofalargerareawithoptiontohoverforin-depthanalysis.Forexample,equippedwithmultispectralcameras,bothtetheredandfreeflightoversightcanspotareasofpoorhydrationorcropnutrition;orcancharacterizeresource/habitatexploitationormovementpatternsofdomesticatedorwildlivestock.Inaddition,PARCcanaugmentfirstrespondercommunicationsbyprovidingquick-todeployad-hoccellularnetworkbroadcastcapability(FMlineofsight(LOS))whenregularground-basedassetsareunavailableduetonaturaldisasterorman-madeemergency.PARCisdesignedtobeoperatedonanylevelgroundthatcontainsaclearedareaofatleast30meters(100feet)indiameterwithnooverhangingobstructions,suchastreebranchesorwires,andnodeepstandingwater.TheidealcharacteristicoftheareaofintendedPARCoperationisearthorsimilarturfsoftenoughtominimizeanyimpactorpotentialdamageduringlanding,ratherthanhardtoporconcrete.TheintendedareaofoperationmustalsoprovideenoughspacetoaccommodatethePARCTESS-Spooler.Inaddition,thePARCaerialdevicerequiresalaunch/landlocationwithterrainslopeoflessthan5degrees,andthePARCTESSspoolerrequiresaset-uplocationwithterrainslopeoflessthan10degrees.CyPhyWorkswillnotoperatePARCintheproximityofanyairports,inaccordancewithSection333.TherequestedexemptionwouldallowthecommercialoperationbyCyPhyWorksofitstetheredPARCaerialdevice,withsuchoperationstobeconductedwithinandundertheconditionsoutlinedhereinorasmaybeestablishedbytheFAAasrequiredbySection333oftheAct.CyPhyWorks'PARCwouldbeoperatedundercontrolledconditionsinairspacethatis:1)limited;2)predetermined;and3)controlledastoaccess.PARCisdesignedandmanufacturedwithsignificantsafetyfeaturesthatensureahighlevelofsafetyismaintainedwhileinoperation.Thesefeaturesinclude:1.Ifthedevice'sfilamentisbrokenforanyreason,PARCwillimmediatelyshutdownandnohighvoltageenergywilltravelthroughit;2.PARCwillautomaticallylandifanysinglemotorfails,thereisalossofpowersupply,orthedeviceoverheats;3.IfPARCcannotholdpositioninsubstantialwinds,includingdriftsmorethan10meters,itwillautomaticallybegintodescendatthesamespeedastheautolandfeatureuntilthewindproducederroriscorrectedanditcanonceagainholdpositionwithin10metersorless.Ifthesituationpersists,eventuallyPARCwillsimplyland;4.ThePARCfilamentwasdesignedwithsufficientstrengththatitcannotbreakwithstaticthrustorinadynamicthrustsituation;5.Thespoolerisdesignedsothattheendofthefilamentprovidesamechanicalfail-safestop.Ifthespoolerunwinds,itistooheavyforPARCtodragandPARCwillstopatthatpoint;6.Withrespecttosoftwareandcontrolssystemsissues,PARChasundergoneandwillcontinuetoundergoasubstantialamountoftestingtoidentifyandmitigatesoftwareissues,bugs,etc.,sothatPARCcancontinuetobeflowninalltypesofadverseconditions;and7.PARCisdesignedwithappropriatelighting.