1

Applicant Name and Contact Information: USAerobotix LLC
Attn: Jason T. Adams, Vice President
PO BOX 124 Gettysburg, OH 45328 (260) 444

- 1550 jason@usaerobotix.com

January 28, 2015

Exemption Request Pursuant to Section 333 of FAA Reform Act Part 11 of FAA Regulations 14 C.F.R. 21; 45.23(b); 61.113(a) & (b); 91.119(c); 91.121; 91.151(a); 91.405(a); 91.407(a)(1); 91.409(a)(1) & (2); 91.417(a) & (b)

Dear Administrators,

Pursuant to Sect ion 333 of the Federal Aviation Administration Reform Act of 2012 and 14 Code of Federal Regulations Part 11 (“Regulations”) , USAerobotix LLC, (“USAerobotix”) operator of SelectTech Geospacial’s EH

- 4 Unmanned Aerial System (“UAS”) will perform operations i nvolving the use of aerial photography and other sensors equipped to the UAS to inspect

—
1) utility infrastructure and equipment including substati ons, transmission towers, distribution towers, pipelines, flare stacks, and other industrial equipment; 2) wind tur bine blades and other structural aspects of wind farms; 3) solar power panels; 4) vegetation and line clearance for tree trimming near the infrastructure stated above;

herein referred to collectively as “the Operation”, applies for exe mption from the following Regulations :

1) 14 C.F.R. 21; 2) 14 C.F.R. 45.23(b); 3) 14 C.F.R. 61.113(a) & (b); 4) 14 C.F.R. 91.119(c); 5) 14 C.F.R. 91.121; 6) 14 C.F.R. 91.151(a); 7) 14 C.F.R. 91.405(a); 8) 14 C.F.R. 91.407(a)(1) & (2); 9) 14 C.F.R. 91.40 9 (a)(1) & (2); 10) 14 C.F.R. 91.417(a) & (b).

A n exemption f rom the listed Regulations is requested to allow commercial activity of the Operation utilizing the UAS to be performed by USAerobotix. The Operation will only be conducted by USAerobotix with the use of the UAS as outlined in this request, with procedures documented in the attached proprietary documentation (“Attachments”) or what may be established by the FAA if an exemption were granted under Section 333 or Section 49 of the United States Code § 44701(f).2

The conditions listed in this application, set fo rth by USAerobotix, are drafted following exemptions and guidelines drafted by the FAA to maintain the highest level of safety, either maintaining or exceeding current safety standards, practices, and regulations. USAerobotix applies for an exemption to pr ovide a safer method of the Operation compared to manned aircraft and manned ground inspections. The Operation will be conducted in a limited space with limited, approved access.

Section 333 of the FAA Reform Act of 2012 grants authority to the FAA to issu e exemptions based on the safety of the Operation and the UAS with established requirements set out by both the application and exemption granted for the Operation.

The Attachments to this request are considered proprietary. We ask that you request these d ocuments separately from the public accessible website. Each attachment is numbered and will each herein after referred to as the following:

1) Attachment 1 (“ The Manual ”); 2) A ttachment 2 (“Maintenance Log”); 3) Attachment 3 (“Flight Log”); 4) Attachment 4 (“Knowledge Exam”); 5) Attachment 5 (“Certificate of Completion”).

USAerobotix is a fee

- for

- service company who will perform each task within the Operation for the power industry. The UAS is purchased by USAerobotix from SelectTech Geospacial (“the Manufacturer”)
who ho lds a Certificate of Authorization for the development, testing, and training of the UAS, model

EH

- 4. The UAS is a Vertical Take Off and Landing (“VTOL”) rotorcraft with four rotors and weighs under 5 lbs., including the payload. The airframe is construct ed from G

- 10 fiberglass reinforced polyester resin, which can withstand rough landings and challenging environments. Additionally, the construction of the airframe and the components and hardware greatly reduce the conductivity of the UAS. The s peed capabi lity of the UAS is 50 knots, however the Operation is intended to travel n o more than 3 5 knots, both vertically and horizontally. The structures USAerobotix intend to include in the Operation stand
below 400 feet AGL. However, some structures do exceed thi s height, which are already considered an
obstacle to other aircraft. The Manufacturer, USAerobotix, and detailed in the Manual, the Operation
will include a Pilot

- in

- Command (“PIC”) and Visual Observer (“VO”), operate lower than 400 feet AGL (unless appro val is granted on a case

- by

- case basis for special operations involving taller structures)

, stay well within Visual Line of Sight (“VLOS”), and cause no hazard to any users of the national airspace or the public. The Manual detail s the safety standards of USAerobotix, the safety redundancies of the UAS, and mitigate how USAerobotix will help in establishing requirements for safe operation in the national airspace system (“NAS”).

As granted to the FAA by Section 333 of the Reform Act, USAerobotix asks for an exemption to carry out the Operation commercially using the UAS. This application includes arguments and Attachments that will explain how the Operation will uphold or exceed current levels of safety, if there is a public interest in the Operation, and st eps taken to ensure national security remains a priority.

Reviewing Exemption 11062 granted by the FAA to the movie industry, USAerobotix will operate with similar limitations and conditions, which will be referred to later in the application. This will ensure a high level of safety already approved by the FAA and hold USAerobotix accountable for how the3

Operation is conducted

. The List of L imitations and Conditions are already addressed throughout the
Manual , and are as follows :

1. The UAS described in this application , including all payload, must weigh less than 20 lbs.

2. The UAS will not exceed 35 knots during the Operation, and no more than 50 knots in transitional airspace.

3. The Operation will be conducted less than 400 feet AGL and reported to Air Traffic Control (“ATC”). If a structure exceeds this height restriction, the PIC must obtain approval from the FAA to perform the Operation in a l imited capacity.

4. The Operation will be conducted in VLOS for the PIC at all times, regardless of the VO orientation. The PIC and VO must only use natural eyesight, aided only by corrective lenses or glasses, to meet this requirement and hold an FAA medical certificate.

5. The VO and PIC must maintain verbal communication at all times.

6. The Manual attached to this application binds USAerobotix to the limitations outlined within, as approved by the FAA. If the FAA imposes other limitations or conditions, the Manu al will be revised to include such revisions. A copy of the Manual and any other documentation requested by the FAA will remain available at all times. If for any reason a change was not amended in the Manual, the new limitations and conditions will be fol lowed at the time of the review. The Operation will follow the Manual at all times.

7. A report will be attached to the Manual logging all revisions and changes to the Manual.

8. If a revision would change the Operation and potentially require a new revision, i t is the responsibility of USAerobotix to contact the FAA UAS Integration Office (AFS

- 80) with all questions regarding the revisions.

9. The PIC must inspect the UAS and Ground Control Station (“GCS”) before each flight to ensure a
safe condition. If the PIC determines the condition to be unsafe, the aircraft will not perform the Operation and undergo the necessary maintenance required to perform a safe flight. A report of all maintenance performed will be included in the Manual.

10. If maintenance or alterations are made that affect the flight characteristics of the UAS, the PIC must perform a functional test flight. Procedures for these test flights are outlined in the Manual. These test flights must be logged into the flight records for the UAS and added to the
Manual.

11. USAerobotix will follow the Manufacturer’s UAS aircraft/component, maintenance, overhaul, replacement, inspection, and life limit requirements. The Manual also outlines the aircraft/component, maintenance, overhaul, replacement, inspection, and lif e limit requirements. At a minimum, the Manual must include the following:

a. Actuators/servos
b. Transmission (single rotor)

c. Powerplant (motors)
d. Propellers

e. Electronic speed controller
f. Batteries

g. Mechanical dynamic components (single rotor)
h. Remote command and co ntrol
i. Ground control station j. Any other components as determined by either the Manufacturer or USAerobotix4

12. The PIC must possess at least a private pilot certificate and at least a current third

- class medical certificate. The PIC will also meet the flight re view requirements specified in 14 C.F.R. § 61.56 in an aircraft in which the PIC is rated on his/her pilot certificate. If the FAA were to pass legislation for separate criteria for a UAS private pilot certificate, that may also be used. Similar level certification from the Department of Defense may also satisfy this requirement. USAerobotix
also believes tha t the training and certification program outlined in the Manual is sufficient and could replace the Private Pilot Certificate requirement, upon the FAA ’ s approval.

13. Prior to the Opera tion, the PIC must have accumulated and logged, in a manner consistent with 14 C.F.R. § 61.51(b), a minimum of 200 flight cycles and 25 hours of total time as a UAS rotorcraft pilot and at least ten hours logged as a UAS pilot with a similar UAS type (sing le blade or multirotor). Prior documented flight experience that was obtained in compliance with applicable regulations will be u sed to satisfy this requirement. Training, proficiency, and experience

- building flights will be used with the UAS to accomplish these requirements. The training will be conducted in a controlled space, away from any non

- participants by a minimum
of 500 feet.

14. Prior to the Operation, the PIC must have accumulated and logged, in a manner consistent with 14 C.F.R. § 61.51(b), a minim um of five hours as UAS pilot operating the make and model of the UAS in this application for the use of the Operation and three take

- offs and three landings in the preceding 90 days. Training, proficiency, experience

- building, and take

- off and landing cur rency flights will be conducted to accomplish these requirements; during these trainings, any non

participant must remain at least 500 feet away from the training area.

15. The PIC and VO of the Operation must successfully complete a qualification process out lined in the Manual. USAerobotix has developed a test included in the Manual to be successfully passed by all PIC and VO personnel before the Operation. A record of completion of this qualification

process will be documented and made available to the Admin istrator upon request.
16. Prior to the Operation, a flight demonstration, administered by a USAerobotix

- approved and qualified pilot must be successfully completed and documented. The documentation must be available for review upon request by the Administrator. Because the knowledge and airmanship test qualifications have been developed by USAerobotix, and there are no e stablished practical test standards that support a jurisdictional FAA FSDO evaluation and approval of company designed examiners, USAerobotix will conduct these tests in accordance with the Manual.

17. The UAS will not be operated directly over any person, exc ept authorized and consenting personnel necessary to the Operation, below an altitude that is hazardous to persons or property on the surface in the event of a UAS failure or emergency.

18. The Manual establishes safety parameters for participating persons wh o are authorized and consenting. These persons will be essential to the Operation.

19. The Operation will be conducted no closer than 500 feet away from non

- participating persons, except those consenting to allow the Operation closer, in which case the Operati on will be no less than 200 feet away from consenting non

- participating persons.
20. As addressed in the Manual as a part of the preflight inspection, in the event that the UAS loses communications or Global Positioning System (GPS) signal, the UAS will be pro grammed to return to the pre

- determined location within the security perimeter and land or be recovered.

21. The UAS is equipped to abort flight in the event of unpredicted obstacles or emergencies, as
addressed in the Manual.5

22. Each flight during the Operation will commence after 30 minutes or at 25% battery power,
whichever occurs first.

23. USAerobotix must obtain an Air Traffic Organization (ATO) issued Certificate of Waiver or Authorization (COA) prior to conducting any operations. The COA will also require USAe robotix to request a Notice to Airmen (NOTAM) not more than 72 hours in advance, but not less than 48 hours prior to the Operation.

24. All aircraft used for the Operation must be identified by serial number, registered in accordance with 14 C.F.R. part 47, an d have identification (N

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

25. USAerobotix must document and maintain a record of the UAS maintenance, preventative maintenance, alterations, status of re placement/overhaul component parts, and the total time in service of the UAS. These procedures are outlined in the Manual.

26. Each UAS used in the Operation must comply with the Manufacturer’s Safety Bulletins.

27. USAerobotix includes technician qualification cr iteria in the Manual.

28. The preflight inspection procedures in t he manual include inspecting and accounting for all discrepancies, logging all maintenance, and reviewing each mission prior to execution.

29. Before the Operation, the radio frequency spectrum used for operation and control of the UAS must comply with the Federal Communications Commission (FCC) or other appropriate government oversight agency requirements. Details of this adherence are in the Manual.

30. The documents required under 14 C.F.R. §§ 91.9 an d 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.

31. The UAS will remain clear and yield the right of way to all other manned operations and activities at all times for all reasons (including, but not limited to, ultralight vehicles, parachute activities, parasailing activities, hang gliders, etc.).

32. The UAS will not operate during night, as d efined in 14 C.F.R. § 1.1. All operations will be conducted under visual meteorological conditions (VMC). Flights under special visual flight rules (SVFR) will not be conducted.

33. The UAS will only be operated by the PIC from a stationary position and not i n a moving device
or vehicle.

34. The UAS will 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.

35. The UAS will not operate in Class B, C, or D airspace witho ut written approval from the FAA. The

UA S may not operate within 5 nautical miles of the geographic center of a non

- towered airport
as denoted on a current FAA

- published aeronautical chart unless a letter of agreement with that airport’s management is obta ined, and the operation is conducted in accordance with a NOTAM as required by the operator’s COA. The letter of agreement with the airport management must be made available to the Administrator upon request.

36. Any incident, accident, or flight operation tha t transgresses the lateral or vertical boundaries of the operational area as defined by the applicable 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 . Further flight operations may not be conducted until the incident, accident, or transgression is reviewed by AFS

- 80 and authorization to resume opera tions is provided.6

The following section will describe the extent of relief USAerobotix seeks in each section of 14 C.F.R. requested , as well as reasons why the exemption would not adversely affect safety or how the exemption would provide a level of safet y at least equal to the existing rule :

1) 14 C.F.R. 21: Certification Procedures for Products and Parts

This section outlines requirements for the issue of design and production approvals, airworthiness certificates, and other airworthiness approvals. USAero botix is aware that if an exemption is granted as per Section 333, an airworthiness certificate would be issued and a request for exemption from 21 is unnecessary. However, as outlined in the List of Limitations and Conditions in this appl ication, as well as all of the A ttachments to this application, including the Manual, USAerobotix seeks to uphold the same level or exceeded level of safety as
described in Part 21 of 14 C.F.R.

2) 14 C.F.R. 45.23(b): Display of Marks

USAerobotix is aware that if an airworth iness certificate is issued as part of the exemption that this particular rule would not be necessary to request an exemption. The UAS described in this exemption is of a small size, but as the List of Limitations and Conditions #24 outlined in this applic ation, we will satisfy the display of the N

- number on the aircraft, as large as applicable.

The UAS will be registered and have appropriate markings to determine the responsible party of the flight if a loss of the aircraft does occur. This condition offe rs accountability for the PIC and USAerobotix to ensure the utmost safety during the Operation.

3) 14 C.F.R. 61.113(a) & (b): Private Pilot Privileges and Limitations: Pilot in Command

These sections describe the limits of private pilots for non

- commercial operations. The UAS is controlled remotely by the PIC during the Operation. The area of the O peration is a controlled

space with gr anted permission by the client who owns the infrastructure being inspected. There are maximum approach distances explained in the Manual, as well as signage and warnings for
those non

- participants who are not trained on safety near the infrastructure. Therefore, the risk of harming non

- participants is low, since their presence is often non

- existent in the space near
the infrastr ucture. Due to the nature of the Operation, which does not involve the carrying of persons (pilots, passengers, or otherwise), USAerobotix believes the same or exceeded level of safety can be achieved if the PIC had either a private or commercial pilot lic ense. As the FAA has stated in Exemption 11062, the required areas of knowledge for a commercial versus private pilot cover the same fundamental principles.

USAerobotix strongly believes that it is in the best interest of the FAA to provide a means of

ce rtification for UAS specifically. Within the provided Manual and ot her Attachments,
USAerobotix has detailed a process for training personnel that will uphold a high level of safety, especially near areas with little collision risk, air traffic, and popula tion.7

4) 14 C.F.R. 91.119(c) : Minimum Safe Altitudes: General; Over other than congested areas

As noted in previous exemptions, since the airspace used for the Operation is in a controlled environment surrounding the infrastructure of electrical equipment, USAerobotix will already operate in accordance with most of 91.119. The key exemption sought i n 91.119(c) is in regard to the altitude of, “...closer than 500 feet to any person, vessel, vehicle, or structure.” Since we must be near the structure of the equipment being inspected for the Operation, and closer to consenting non

- participants and partici pants, an exemption from this rule is desired. The Operation will be below 400 feet AGL, as stated in the List of Limitations and Conditions #3, unless permission is granted by the FAA for anything higher.

Regarding the speed and size of the UAS for the Operation, and how similar rules were passed for aircraft exceeding 4,000 lbs, this exemption will not endanger any persons, structures, or other aircraft. The conditions offered in this application, along with the rules and exemptions already passed by th e FAA will still account for safety as the most paramount consideration in seeking exemption from this particular rule.

5) 14 C.R.R. 91.121: Altimeter settings

Exemption from this rule is only sought due to the wording used within the rule. The UAS is equipped with a digital telemetric data feed of the barometric altitude down to the Ground Control Station, instead of a traditional altimeter onboard the aircraft. Prior to each flight, a zero altitude initiation point will be established and confirmed fo r accuracy by the PIC. Further description of the altimeter technology is described in the Manual. This will maintain the safety intended by 91.121 with respect to the remote operation of the UAS.

6) 14 C.F.R. 91.151(a) : Fuel requirements for flights in VFR conditions

The first part of this rule states that a flight may not begin unless there is enough fuel to fly 30 minutes after approximate arrival to landing. The battery used for the UAS lasts approximately 40 minutes after fully energized and with little payload. Given the technical limitations of the flight length of the UAS, and the proposed safety measures explained in the List of Limitations and Conditions #22, a longer time frame for flight in daylight VFR conditions is safe. Other exemptions passed by the FAA were granted the same exemption due to the same limitations. Any risk being mitigated by this rule for other aircraft is alleviated by the nature of the aircraft for the Operation in this application.

Limiting flights to whichever of 30 minute duration or 25% battery life reserve comes first should suffice for a high level of safety.

7) 14 C.F.R. 91.40 5(a); 14 C.F.R. 91.407(a)(1) & (2); 14 C.F.R. 91.409 (a)(1) & (2); 14 C.F.R. 91.417(a) & (b) : Maintenance and Inspections

All of these regulations r equire aircraft operators and owners to inspect aircraft as required by8

subpart E and must, between inspections, unless otherwise stated in paragraph (c), have discrepancies repaired as prescribed in Part 43. Because Part 43 applies only to aircraft with a n airworthiness certificate, these sections will not apply. However, as stated in the List of Limitations and Conditions of this app lication, as well as the other A ttachments, supporting documents, and the Manual, maintenance will remain to be an important part of the Operation. The UAS is very nimble and can be repaired very quickly, even on the field during the Operation. If mechanical issues do pass preflight inspection, because of the limited airspace and AGL of the Operation, a failure will not result in loss

- of

- life or put anyone in significant danger, as long as the Limitations and Conditions, the procedures outlined in the Manual, and any other conditions offered by the FAA are strictly followed. A log of all maintenance will be kept in the manual an d made available to the Administrator any time it is requested.

USAerobotix applies for this exemption with the intention of performing the Operation safely and in the best interest of the public. Please review the A ttachments provided as a part of this e xemption. The ultimate goal of USAerobotix service is to provide a method of inspection for utility lines, towers, and substations, solar generating panels, wind generating farms, and any other infrastructure or equipment in use by the power industry. Util ity inspections are performed by helicopters, usually at 50 knots from a great distance to review the tree clearance to high tension wires, and they will spot

- check any structural abnormalities along the lines. If power did fail for any reason, the respons ible companies oftentimes are unable to pinpoint the exact reason why a failure occurred. Inspection with UAS will provide a more thorough and safer means of inspection from the sky. The alternate method includes manned ground inspections, with personnel p utting themselves and others at risk of death or serious injury by climbing a pole or tower to inspect parts of the infrastructure.

Wind generation farms need to inspect their blades to ensure no cracks or major damage exists, which could result in large d ebris catapulting from the equipment and destroying other property and risking the safety of persons near the infrastructure. UAS based inspections will provide a safe means of inspection, instead of a manned system of climbing each generator tower, then r epelling down each blade. The risk is incredibly high, and maintaining what little safety they have is very time consuming.

UAS

- based inspection will result in a more efficient inspection process, allowing the generating company to find problems well befor e they happen and continue to deliver power to the consumer reliably. The safety of inspections are now the difference between falling 400 feet to the ground and a 4 pound UAS falling to the ground.

Solar energy farms often require infrared inspections. T his process is time consuming and potentially dangerous for a helicopter at low altitudes. The risk of flight failure can result in loss of power to thousands of consumers, and a high risk for injury for the pilot. A small UAS, outfitted with the same payl oad, can accomplish the task much more safely and efficiently.

Other Operations may include flare stacks and other larger industrial infrastructure. For these Operations, aircraft that currently perform the inspection already seek approval from the FAA pr ior to inspection. Additionally, because these flights are often over facilities that have personnel, USAerobotix will greatly reduce the risk of injury or death to personnel involved in these inspections.

The Operation is focused on a closed environment w ithout any risk to personnel. Transitions between flights do not require the use of airspace, as the UAS is carried to the desired area before it is flown. Any data collected during the Operation will be handed to the client and used strictly for inspectio n of the9

equipment. The weight, speed, operating capacity, proximity to persons and structures, and the Limitations and Conditions expressed in this application, supplemented by the Manual and all other

A ttachments will be used to prove the safety of the N AS with respect to the Operation performed by USAerobotix using the UAS. This is considered to be adequate information to fulfill the necessary requirements of obtaining an exemption for commercial use of UAS by USAerobotix granted to the FAA

in Section 33 3 of the Reform Act of 2012.

Sincerely,

Jason T. Adams
Vice President

, USAerobotix LLC

Cc: David Furlong, Executive President Jay Adams, President Jacob Furlong, Vice President