EXEMPTION FROM SUBSECTION 202.42(1), PARAGRAPH 700.05(1)(b) AND SUBSECTIONS 706.09(1) AND (2) OF THE CANADIAN AVIATION REGULATIONS

From: Transport Canada

Pursuant to subsection 5.9(2) of the Aeronautics Act, and after taking into account that the exemption is in the public interest and not likely to affect aviation safety, I hereby exempt Airborne Energy Solutions Ltd. (hereinafter referred to as “AES”) P.O. Box 1229, Whitecourt, Alberta, T7S 1P1 from the requirements of subsection 202.42(1), paragraph 700.05(1)(b) and subsections 706.09(1) and (2) of the Canadian Aviation Regulations (CARs) subject to the following conditions. 

The details of the above provisions are provided in Appendix A to this exemption.

PURPOSE

The purpose of this exemption is to:

  • Allow AES to have operational control of two Mi-26T helicopters, without the aircraft having a Canadian type certificate.  The two helicopters shall be added to the types authorized on AES’s 702 and 703 Air Operator Certificates, however, the helicopters shall remain registered in Russia and in the legal custody and control of UTair Aviation Company, a Russian company. However, AES may operate only one Mi-26T helicopter at any given time;
  • Allow AES to permit UTair Aviation Company to perform maintenance on the Mi-26T helicopters when performance of the maintenance by UTair Aviation Company has not been approved by the Minister as being in conformity with the CARs;
  • Allow AES to conduct operations in support of the movement of drilling, completion and production equipment, built to take advantage of the unique lift capacity of the Mi-26T helicopters and used for petroleum exploration and development in Northern Canada.  This will allow AES to take advantage of the Mi-26T’s lift capacity in areas where it is not desirable to build overland access capabilities due to weather and environmental concerns;
  • Allow AES to provide logistical re-supply and support services to remote sites served by winter roads in the Northwest Territories;
  • Allow AES to conduct the operations described above in a manner that will take advantage of the unique lifting capabilities of the Mi-26T helicopter without adversely affecting commercial operations utilizing Canadian Type Certificated aircraft.

APPLICATION

This exemption applies to AES when it has operational control of two Mi-26T helicopters under contractual agreement with UTair Aviation Company, a Russian company.  The two Mi-26T helicopters shall remain registered in Russia and UTair Aviation Company shall retain legal custody and control of the helicopters and provide flight crews and maintenance services for the helicopters.

CONDITIONS

This exemption is subject to the following conditions:

  1. The Mi-26T helicopters shall be operated as an integral part of the AES fleet under subparts 702 – Aerial Work and 703 – Air Taxi of the CARs;
  2. AES shall not carry on board passengers and persons who are not flight crew members;
  3. AES shall have in place a Safety Management System that shall be implemented in accordance with the schedule outlined in the “Operating Agreement” attached at Appendix B to this exemption;
  4. The terms and conditions of the “Operating Agreement”, attached at Appendix B to this exemption, between Transport Canada and AES shall be adhered to;
  5. The Mi-26T helicopters shall only be utilized to:
    1. Conduct operations, as outlined in (b) below, that take advantage of the unique lifting capabilities of this helicopter without adversely affecting commercial operations utilizing Canadian Type Certificated aircraft;
    2. Conduct operations in support of the movement of drilling, completion and production equipment built to take advantage of the unique lift capacity of the Mi-26T helicopters and used for petroleum exploration and development in Northern Canada.
  6. The Mi-26T helicopters shall not be operated over built-up areas not directly associated with the operations described in item 5 above with the exception of transit to and from a maintenance base;
  7. Weather minima for day VFR operations in uncontrolled airspace shall be a ceiling of 500 feet, and provided that the Mi-26T pilots comply with subsection 722.17(2) of the Commercial Air Service Standard (CASS), a visibility of one-half statute mile;
  8. AES shall qualify a UTair Aviation Company Check Pilot as it would do for a Canadian Check Pilot;
  9. AES shall obtain from UTair Aviation Company a certificate of insurance for liability coverage in the amount of $50, 000, 000 (fifty million) Canadian dollars valid for the entire existence of the exemption;
  10. The maintenance of the Mi-26T shall be conducted by UTair Aviation Company in accordance with the maintenance requirements of the Russian Civil Aviation Authority; and
  11. UTair Aviation Company shall hold a valid Russian air operator certificate and maintenance certificate or equivalent documents, as well as documentary proof that the maintenance requirements of condition 10 of this exemption have been met.

VALIDITY

This exemption is in effect until the earliest of:

  1. At 23:59 MST on November 16, 2007;
  2. The date on which any of the conditions set out in this exemption is breached; or
  3. The date on which this exemption is cancelled in writing by the Minister where he is of the opinion that it is no longer in the public interest or is likely to affect aviation safety.

EXEMPTION CANCELLATION

The exemption from subsection 202.42(1), paragraph 700.05(1)(b) and subsections 706.09(1) and (2) of the CARs issued to Airborne Energy Solutions Ltd. on the 31st of May, 2007, at Ottawa, by the Director General, Civil Aviation, on behalf of the Minister of Transport, Infrastructure and Communities is hereby cancelled because it is the opinion of the Minister that it is no longer in the public interest or is likely to affect aviation safety.

Dated at Ottawa, Ontario, Canada this 5th day of September, 2007, on behalf of the Minister of Transport, Infrastructure and Communities.

Original signed by

Merlin Preuss
Director General
Civil Aviation

Appendix “B” RDIMS # 983165  (scanned version 1511089) “Memorandum of Understanding…”

APPENDIX A

SECTIONS OF THE CARs

Subsection 202.42(1) states that subject to section 203.03, no person shall operate in Canada an aircraft that is registered in a foreign state that has been present in Canada for a total of 90 days or more in the immediately preceding twelve-month period unless

  1. the foreign state is a contracting state;
  2. the operator of the aircraft is
    1. the foreign state,
    2. an individual who is not a Canadian citizen or a permanent resident but is a citizen or subject of the foreign state, or
    3. an entity that is incorporated or otherwise formed under the laws of the foreign state; and
  3. if the operator of the aircraft is an entity described in subparagraph (b)(iii), the aircraft is operated in Canada
    1. in accordance with an air operator certificate, or
    2. in any operation other than an operation that would require a private operator certificate if the aircraft were registered in Canada.

Paragraph 700.05(1)(b) states that no Canadian air operator shall operate an aircraft in a commercial air service unless in the case of an aircraft registered in another contracting state, the Minister has authorized its operation under Part II and, where a Canadian type certificate has not been issued for the aircraft type, the aircraft has been approved for operation under Part V.

Subsection 706.09(1) states that no air operator shall permit a person or organization to perform maintenance on the air operator's aircraft unless the person or organization has adequate facilities, equipment, spare parts and personnel available at the site where the maintenance is to be performed and

  1. the person or organization holds an approved maintenance organization (AMO) certificate issued pursuant to Section 573.02 with a rating in a category applicable to the maintenance to be performed;
  2. where the maintenance is to be performed outside Canada by a person or organization that does not hold an AMO certificate issued pursuant to Section 573.02, the person or organization has been approved under the laws of a state that is party to an agreement with Canada that provides for recognition of the work performed; or
  3. in cases other than those described in paragraphs (a) and (b), the performance of the maintenance by the person or organization has been approved by the Minister as being in conformity with these Regulations.

Subsection 706.09(2) states that an air operator shall ensure that a maintenance arrangement made with a person or organization pursuant to subsection (1)

  1. specifies the maintenance required and clearly defines the tasks to be performed; and
  2. is made in accordance with the procedures governing maintenance arrangements included in the MCM or is approved by the Minister as being in conformity with these Regulations.

APPENDIX B 

OPERATING AGREEMENT (RDIMS 983165, scanned version RDIMS 1511089)

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