Pursuant to a delegation of authority by the Grayson County Commissioners Court (hereinafter referred to as the "Commissioners Court") these Minimum Standards for Fixed Base Operators for the efficient and safe operation of the Grayson County Airport (hereinafter referred to as the "Airport"), and to provide the greatest service for the citizens of Grayson County and the aviation public, are adopted by the Grayson County Airport Board (hereinafter referred to as the "Board"); providing that no person shall use the Airport for the carrying on of commercial activities, for instruction in aviation, for sale of any commodities, etc. unless approved in writing by the Airport Director (hereinafter referred to as the "Director"); regulating the use of aircraft; providing for fire regulations; regulating student training and practice flying; providing enforcement by the Director and providing penalties for violations; all as authorized by the "Municipal Airports Act," Vernon's Texas Civil Statutes, Ann., Art. 46d-1 et seq.

These Minimum Standards shall be administered by the Board as authorized by Resolution of the Commissioners Court dated August 16, 1999 as amended, the Board acting herein by and through the Director as its authorized agent.

Grayson County, Texas administers, maintains and operates the Airport in a manner to insure that its facilities and operation will provide the greatest service for the people of Grayson County and the aviation public.

TABLE OF CONTENTS

SECTION 1 - GENERAL

1.1     PURPOSE

The following minimum standards and requirements for commercial aeronautical activities are established in the public interest for the safe and efficient operation of the Airport; to enhance its orderly growth; to preclude the granting of an exclusive right to conduct an aeronautical activity in violation of Section 308 (a) of the Federal Aviation Act of 1958; to conform to Title VI of the Civil Rights Act of 1964 and Part 21 of the Department of Transportation Regulations; and to assure to all Lessees the availability of Airport property on fair and reasonable terms and without unjust discrimination.

1.2     DEFINITIONS

The owner of, and authority over the Airport, shall hereinafter be referred to as Grayson County, acting by and through the Board or the Director

A.

A Fixed Base Operator (hereinafter referred to as an "Operator") is defined as any person, firm or corporation performing any of the functions or furnishing any of the services as herein set out for Operators at the Airport. No person, firm or corporation shall engage in any commercial activity as an Operator as herein defined unless the same is done in full compliance with the standards set forth herein and the Rules & Regulations of the Airport.

B.

An Airport Tenant (hereinafter referred to as "Lessee") is defined as any person, firm, or corporation leasing or renting property at the Airport, which is not an Operator.

1.3     LIABILITY

All Operators shall protect the public generally, the customers or clients of such Operators, and Grayson County from any and all damages, claims, or liability and shall carry comprehensive general liability insurance with a company authorized to do business in the State of Texas with limits of not less than that specified herein for the category of business performed; and such policies must be written with the Airport named as an additional insured; such policies must be approved by the Director and a certificate of insurance thereof furnished to the same. It is further understood that as circumstances may require in the future, the Airport may revise these insurance requirements.

1.4     QUALIFICATIONS

A.

An Operator shall satisfy the Board that it is technically able to perform the services of an Operator. This shall include the responsibility for demonstrating continued financial solvency and business ability by the submission of an annual balance sheet, credit references and/or any other proof that the Board may require from time to time. In cases of doubt by the Board as to such ability of an Operator, the Board may conduct a hearing to determine appropriate action. In each instance, the Board shall be final judge as to the qualifications and financial ability of the Operator.

B.

Any person, firm or corporation capable of meeting the minimum standards set forth herein for an Operator is eligible to become a Fixed Base Operator at the Airport, subject to the execution of a written lease with the Board or a written sublease with a Lessee, containing such terms and conditions as may be determined by the Board.

C.

An Operator shall not engage in any business or activity on the Airport other than that authorized under his lease or sublease agreement. Any Operator desiring to extend his operation or to discontinue certain operations, shall first apply in writing to the Board for permission to do so, setting forth in detail the reasons and conditions for the request. The Board shall then grant or deny the request on such terms and conditions as the Board deems to be prudent and proper under the circumstances.

1.5     CONSTRUCTION STANDARDS

A.

All Operators at the Airport shall provide their own personnel and equipment, and meet the requirements as herein stated.

B.

All Operators at the Airport shall provide an ample public lounge and public restrooms for their customers and shall make telephone service conveniently and readily available for public use.

C.

All construction required of such Operators shall be in accordance with design and construction standards required or established by the Board for the Leased Premises or activity involved. All Operators shall furnish the Board payment and performance bonds commensurate with any construction required under the standards herein fixed.

D.

Title to any and all buildings and appurtenances and any other permanent facilities or improvements, which may be built on Airport property, shall vest in Grayson County, subject to the terms of any Lease covering same.

1.6     CONTRACT OBLIGATIONS

A.

All contracts, leases and subleases shall be subordinate to the provisions of any existing or future agreement between the Airport and the United States Government, relative to the operation and maintenance of the Airport.

B.

All contracts and leases and subleases during time of war or national emergency, shall be subject to the right of the United States Government to lease the Airport or any part thereof for military or naval use; and, if any such lease is so made, any or all provisions contained herein that restrict or limit such a lease or contract may be suspended.

C.

No Lessee shall sublease or sublet any premises leased by such Lessee from Grayson County, or assign any such Lease, without the prior written approval of the Board, and any such subletting or assignment shall be subject to all the minimum standards herein set forth. In the event the Lessee does sublet any portion of its Lease under this stated condition, the Sublessee must agree to assume the full obligations of the Lease and must agree to fully cooperate with the Board in the compliance and enforcement of these standards.

D.

In the event that an Operator fails to comply fully with these standards or fails to comply with the reasonable request or direction of the Board as it relates to these standards, said Operator shall be in default. If in the case of a first default and that first default continues for more than thirty (30) days after notice of said first default, the Board may terminate the Lease or Sublease. For any subsequent default by the Operator for the same or any other reason, the Board may terminate the Lease or Sublease if that subsequent default continues for more than three (3) days after a notice of that subsequent default. In all cases, the Lessee is responsible for the performance of the Sublessee.

E.

All Operators, Lessees, and any other contracts at the Airport are subject, at the discretion of the Board, to review, evaluation and fiscal revision annually, effective January 1 ^st., in relation to the Consumer Price Index or any other recognized financial index or authoritative reference as determined applicable by the Board.

F.

Notwithstanding anything contained herein or in a Lease or Sublease to the contrary, it is expressly understood and agreed that the rights granted hereunder are nonexclusive, and the Board reserves the right to grant similar privileges to another Operator or Operators upon formal application by that Operator, and upon demonstration of compliance with provisions contained herein.

1.7     OPERATING RESPONSIBILITIES

A.

Operators will, at all times conduct, operate and maintain for the benefit of the public, the Fixed Base Operation provided for and described herein, and will make all such services available to the public without discrimination in any form.

B.

The rates or charges for any and all products and services of such Operators shall be determined by the Operators, subject to the requirement that all such rates or charges shall be reasonable and be equally and fairly applied to all users of the products and services.

C.

All Operators at the Airport shall be full time, financially sound and progressive business enterprises, with adequately manned and equipped facilities, including ample office facilities, and shall observe normal or specially required business hours.

D.

Each Operator will maintain, provide housekeeping services, and grounds maintenance for his buildings, facilities and equipment on the Airport to the standards determined by the Board and applicable to all other Operators and users of the Airport.

E.

All Operators shall, at their own expense, pay all taxes and assessments against any buildings or other structures placed on the premises and owned by them, as well as all taxes and assessments against the personal property used by them in their operation.

F.

All Operators shall abide by and comply with all state, county and city laws and ordinances, and the rules and regulations of the Texas Department of Aviation and the Federal Aviation Administration.

1.8     COMMON RIGHTS AND PRIVILEGES

A.

All Operators shall have the right to use common areas of the Airport, including runways, taxiways, roadways, Airport and runway lights, signals and other conveniences for the takeoff, flying and landing of aircraft and other activities relating to the conduct of authorized aeronautical business on the Airport.

B.

The Board reserves the right to take any actions it considers necessary to protect the aerial approaches to the Airport against obstructions, together with the right to prevent any Operator or Lessee from erecting, or permitting to be erected, any building, sign, or other structure on the Airport which, in the opinion of the Board, would limit the usefulness of the Airport or constitute a hazard.

C.

The Board reserves the right to enter upon any premises leased to Operators and Lessees at reasonable times for the purpose of making such inspections as it may deem expedient to the proper enforcement of these Minimum Standards, the Rules & Regulations, and of any covenant or condition of any Operator's contract or Lease or Sublease.

D.

The provisions of these standards shall be deemed to amend inconsistent provisions in existing leases with Operators or Lessees at the Airport. Upon the adoption of these standards, all new Leases or new Lease amendments shall be in accordance with these standards.

SECTION 2 - AIRCRAFT SALES

Any Operator desiring to engage in the sale of new or used aircraft shall Lease and/or provide as a minimum the following:

2.1     LAND

Basic Requirement: The leasehold shall contain six thousand (6,000) square feet of land to provide space for buildings, parking, storage of aircraft, and display.

2.2     BUILDINGS

Basic Requirement: Lease or construct one thousand five hundred (1,500) square feet for a climate controlled area for office, customer and public amenities, and other business related use.

2.3     PERSONNEL

Basic Requirement: One person having a current commercial pilot's certificate with ratings appropriate for the types of aircraft to be demonstrated.

2.4     DEALERSHIPS

Basic Requirement: New aircraft dealerships shall hold an authorized factory or subdealership.

2.5     AIRCRAFT

Basic Requirement: A dealer of new aircraft shall have available or on call one current model demonstrator, and shall have the ability to provide for demonstrations of additional models of the manufacturer for which dealership is held. He must also provide an adequate supply of parts and servicing facilities to customers during aircraft and parts warranty period.

2.6     SERVICES

Basic Requirement: Provide for adequate servicing and repair of aircraft and accessories during new aircraft warranty periods by own facilities or through agreement with repair shop specializing in the make of aircraft sold.

2.7     HOURS OF OPERATION:

The normal hours of operation will be at the Operator's discretion, but he should be reasonably available to the public.

2.8     MINIMUM INSURANCE COVERAGE

Aircraft Liability

Bodily injury

$500,000.00 each person

$1,000,000.00 each accident

Property damage

$200,000.00 each accident

Passenger liability

$200,000.00 each passenger

$1,000,000.00 each accident

Comprehensive Public Liability and Property Damage

Property Damage

Bodily injury

$500,000.00 each person

$1,000,000.00 each accident

Property damage

$200,000.00 each accident

NOTE: THE ABOVE COVERAGE INCLUDES AIRCRAFT HELD FOR SALE AND DEMONSTRATION BY THE OPERATOR BUT OWNED BY OTHERS.

SECTION 3 - AIRCRAFT RENTAL

Any Operator desiring to engage in the rental of aircraft to the public must provide as a minimum the following:

3.1     LAND

Basic Requirement: The leasehold shall contain six thousand (6,000) square feet of land to provide space for buildings, parking, storage of aircraft, and display.

3.2     BUILDINGS

Basic Requirement: Lease or construct one thousand five hundred (1,500) square feet for a climate controlled area for office, customer and public amenities, and other business related use.

3.3     PERSONNEL

Basic Requirement: One person having a current commercial pilot's certificate with appropriate ratings. Office to be attended during normal business hours.

3.4     AIRCRAFT

Basic Requirement: The Lessee shall own or have leased to him in writing, at least one properly certified aircraft equipped for rental.

3.5     HOURS OF OPERATION:

The normal hours of operation will be at the Operator's discretion, but he should be reasonably available to the public during normal business hours.

3.6     MINIMUM INSURANCE COVERAGE FOR OWNED OR LEASED AIRCRAFT

Aircraft Liability

Bodily injury

$500,000.00 each person

$1,000,000.00 each accident

Property damage

$200,000.00 each accident

Student and Renter Pilot Coverage Comprehensive Public Liability and Property Damage

$500,000.00 each passenger

$1,000,000.00 each accident

Property damage

$200,000.00 each accident

SECTION 4 - FLIGHT TRAINING

Any Operator desiring to engage in flight training for the public must provide as a minimum the following:

4.1     LAND

Basic Requirement: The leasehold shall contain six thousand (6,000) square feet of land to provide space for building and parking.

4.2     BUILDINGS

Basic Requirement: Lease or construct one thousand five hundred (1,500) square feet for a climate controlled area for classroom, briefing room, pilot lounge and restrooms, office space, other business related use.

4.3     PERSONNEL

Basic Requirement: One person properly certified by the Federal Aviation Administration as a flight instructor to cover the type of training offered.

4.4     AIRCRAFT

Basic Requirement: The Operator shall own or have leased to him in writing one properly certified aircraft equipped for flight instruction.

4.5     HOURS OF OPERATION:

The normal hours of operation will be at the Operator's discretion, but he should be reasonably available to the public.

4.6     MINIMUM INSURANCE COVERAGE FOR OWNED OR LEASED AIRCRAFT

Aircraft Liability

Bodily injury

$500,000.00 each person

$1,000,000.00 each accident

Property damage

$200,000 each accident

Passenger Liability

$200,000.00 each passenger

$1,000,000.00 each accident

Student Pilot and Renter Coverage Comprehensive Public Liability and Property Damage

Bodily injury

$500,000 each accident

Property damage

$200,000 each accident

SECTION 5 - PUBLIC AIRCRAFT FUELS AND OIL DISPENSING SERVICE

Operators desiring to dispense aviation fuels and oil and provide other related services shall provide as a minimum standards as outlined in the Grayson County Airport Public Aircraft Fuel Dispensing Permit. The following is brief overview of the permit:

5.1     LAND

Basic Requirement: The leasehold shall contain forty thousand (40,000) square feet for buildings, fuel truck parking and dispensing areas, parking and other business related use.

5.2     BUILDINGS

Basic Requirement: Construct or Lease a building providing two thousand (2000) square feet for a climate-controlled area for office, public lounge, restrooms, customer telephone and other business related use.

5.3     PERSONNEL

Basic Requirement: One fully qualified person shall be on duty during normal hours of operations.

5.4     FUELING SERVICING AND EQUIPMENT

Basic Requirement: Operator shall furnish emergency starting equipment and other equipment necessary to fuel, replenish oil and park and tie down aircraft. Operator shall also furnish adequate fire extinguishers and comply with the following safety procedures.

A.

Fire extinguishers will be readily available during all refueling or defueling. Personnel will be trained in the use of such equipment as well as in rescue operations. Such person will attend training provided the Airport Fire Department or as otherwise directed by the Board.

B.

Static discharging ground wires will be attached to the aircraft, the fuel tank or refueling vehicle, and to zero potential ground before and throughout any fueling operation.

C.

Adequate fuel filters and water taps will be installed on all fuel handling equipment and a suitable program for periodically conducting water contamination checks will be established and followed.

D.

Personnel used to dispense aircraft fuels and lubricants will be trained in the proper recognition of aircraft fuel tank markings, kinds and grades of aircraft fuels and lubricants, and safety precautions necessary for fuel handling. Such personnel must either be in uniform while servicing aircraft or wear sufficient distinguishing clothing so that the public may recognize which person is authorized to dispense petroleum products.

E.

The standards for "Aircraft Fuel Servicing" published by the National Fire Protection Association, and as amended from time to time, are hereby incorporated herein as mandatory standards as though set forth verbatim.

5.5     FUEL

Basic Requirement: Operator shall provide either 100LL or Jet A and Mogas for aircraft use. MOGAS, shall be approved for aircraft use by compliance with ASTM-439 standards and all other applicable Federal Aviation Administration specifications, and shall be supplied only to those aircraft that have been certified under appropriate supplemental type certificates to use this fuel.

5.6     FUEL DISPENSING FACILITIES

Basic Requirement: One metered and filter equipped dispenser, fixed or mobile, for dispensing each separate type of fuel offered.

A.

For mobile fuel dispensing of each type of fuel offered, Operator shall furnish a separate fuel truck or fuel trailer with a minimum capacity of five hundred (1000) gallons for 100LL and two thousand (2000) gallons for JET A and two hundred and fifty (250) gallons for MOGAS. Mobile dispensing equipment shall be properly maintained, operated, and equipped in accordance with applicable Federal Aviation Administration, Airport, and National Fire Protection Association recommendations, requirements, and regulations.

B.

For fixed fuel dispensing, Operator shall furnish separate dispensing pumps and meters for each type of fuel offered. Such fixed fuel dispensing equipment shall be attended or automated so that fuel is available to the public without discrimination, any unusual requirements or any advance arrangements of any kind.

5.7     FUEL STORAGE FACILITIES

Basic Requirement: Operator shall furnish fuel storage tanks with a capacity of twelve thousand (12,000) gallons each for each 100LL or JET-A, and five hundred (500) gallons for MOGAS. Fuel storage tanks may be underground or ground mounted if located in properly bunkered and approved closures; and all such installations shall be in a location approved by the Board and shall comply with applicable uniform building code standards, fire codes and ordinances, and the recommendations of the National Fire Protection Association. Operator shall, at its sole cost and expense, maintain its fuel storage facilities and all improvements and appurtenances thereat, in a presentable condition consistent with good business practices and equal in appearance and character to other similar improvements on the Airport. Operator shall repair all damages caused by its employees, patrons, or their operation thereon; and shall maintain and repair all equipment thereon; and shall keep its premises in a safe, neat, sightly and good physical condition.

5.8     HOURS OF OPERATION

Basic Requirement: Fueling services shall be provided from 8:00 to sundown, seven days per week.

5.9     MINIMUM INSURANCE COVERAGE

Comprehensive Public Liability and Property Damage

Bodily injury

$500,000.00 each person

$1,000,000.00 each accident

Property damage

$200,000.00 each accident

Hangar keeper liability

$200,000.00 each accident

$400,000.00 each event

Product liability

$1,000,000.00 each accident

SECTION 5A - PUBLIC AIRCRAFT FUEL SALES UTILIZING SELF SERVICE FUEL SYSTEMS.

Operators desiring to dispense aviation fuels shall provide as a minimum standards as outlined in the Grayson County Airport Public Aircraft Fuel Dispensing Permit - Self Serve. The following is brief overview of the permit:

5A.1     LAND

Basic Requirement: Leasehold shall include adequate land for buildings, the fuel dispensing unit, and parking area for aircraft and vehicles or approximately 30,000 square feet in total.

5A.2     BUILDINGS

Basic Requirement: Construct or Lease a building providing two thousand (2,000) square feet for a climate-controlled area for office, public lounge, restrooms, customer telephone.

5A.3     PERSONNEL

Basic Requirement: Employees will attend to the fuel testing as required by federal regulations. Emergency phone numbers will be posted to obtain assistance should problems with the dispensing systems or emergency occur.

5A.4     FUELING EQUIPMENT

Basic Requirement: Provide minimum storage tank capacity of 5000 gallons. Provide a self-serve fueling system that meets all FAA safety and EPA regulations. Provide two emergency shutoff valves, one at the dispenser and one a minimum of 50 feet from the dispenser, two 20-pound ABC portable fire extinguishers and a public pay phone.

5A.5     HOURS OF OPERATION

Basic Requirement: Fueling services shall be provided 24 hours a day, seven days per week.

5A.6     MINIMUM INSURANCE COVERAGE

Comprehensive Public Liability and Property Damage

Bodily Injury

$500,000.00 each person

$1,000,000.00 each accident

Property Damage

$200,000.00 each accident

Hangar keeper liability

$500,000.00 each accident

$400,000.00 each event

Product liability

$1,000,000.00 each accident

SECTION 6 - NON-PUBLIC AIRCRAFT FUELS AND OIL DISPENSING SERVICE

Lessees desiring to conduct non-public aircraft fuel and oil dispensing services shall meet the following minimum standards as outlined in the Grayson County Airport Nonpublic Aircraft Fuel Dispensing Permit. The following is brief overview of the permit:

RESTRICTIONS: Lessee holding non-public aircraft fuels dispensing authorization shall not sell or deliver aircraft fuels to anyone other than Lessee. Fueling of any aircraft not owned or leased by Lessee shall result in immediate revocation of the right to bring fuel upon, or store fuel on, Airport property. Upon request by the Board, Lessee shall provide evidence of ownership or Lease of any aircraft being fueled. A corporation may not be formed for the expressed purpose of providing fuel services under this standard.

6.1     LAND AND BUILDING

Basic Requirement: Due to the variety of Leased Premises possibilities applicable to Lessees, a single standard for acreage and buildings is not established for Lessees. Each Lessee application under this SECTION will be considered on its own merit. For Operator applications, specific use spaces as required in applicable SECTIONS herein need not be further defined where combination use can be reasonably and feasibly established.

6.2     PERSONNEL

Basic Requirement: Personnel engaged in dispensing aircraft fuels shall be properly trained and qualified with regard to safety procedures.

6.3     FUEL

Basic Requirement: Lessee shall provide only the type or grade of fuel required to service Lessee's aircraft.

6.4     FUEL DISPENSING AND STORAGE FACILITIES

Basic Requirement: One metered and filter equipped dispenser, fixed or mobile, for dispensing each separate type of fuel used.

A.

Lessee shall furnish a mobile dispensing truck or fuel trailer for each type of fuel with a minimum capacity of one thousand (1,000) gallons for each fuel type provided or a fixed fuel dispensing system specifically approved by the Board.

B.

Lessee shall furnish at least one fuel storage tank with a capacity of twelve thousand (12,000) gallons for each type of fuel supplied. Fuel storage tanks may be underground or ground mounted if located in properly bunkered and approved closures; and all such installations shall be in a location approved by the Board and shall comply with applicable uniform building code standards, fire codes and the National Fire Protection Association. All maintenance, repair and upkeep shall be the sole responsibility of the Lessee.

6.5     FUELING SERVICING AND EQUIPMENT

Basic Requirement: Lessee shall furnish adequate fire extinguishers and comply with the following safety procedures:

A.

Fire extinguishers will be readily available during all refueling or defueling. Personnel will be trained in the use of such equipment.

B.

Static discharging ground wires will be attached to the aircraft, the fuel tank or refueling vehicle, and to zero potential ground before and throughout any fueling operation.

C.

Adequate fuel filters and water taps will be installed on all fuel handling equipment, and a suitable program for periodically conducting water contamination checks will be established and followed.

D.

The standards for "Aircraft Fuel Servicing" published by the National Fire Protection Association, and as amended from time to time, are hereby incorporated herein as mandatory standards as though set forth verbatim.

6.6     MINIMUM INSURANCE COVERAGE

Comprehensive Public Liability and Property Damage

Bodily injury

$500,000.00 each person

$1,000,000.00 each accident

Property damage

$200,000.00 each accident

SECTION 7 - AIR TAXI SERVICE

Operators desiring to engage in Air Taxi Service must hold a Federal Aviation Administration Air Taxi Commercial Operator Certificate with ratings appropriate to the functions accomplished.

7.1     LAND

Basic Requirement: The leasehold shall contain six thousand (6,000) square feet of land for buildings, parking, and other business related use.

7.2     BUILDINGS

Basic Requirement: Lease or construct a building providing a minimum of one thousand five hundred (1,500) square feet for a climate controlled area for office and customer lounge, restrooms and telephone.

7.3     PERSONNEL

Basic Requirement: One Federal Aviation Administration certified commercial pilot who is appropriately rated to conduct the air taxi service offered.

7.4     AIRCRAFT

Basic Requirement: One four-place aircraft meeting all the requirements of the Air Taxi/Commercial Operator Certificate held. Aircraft shall be owned or leased by agreement in writing and meet all relevant requirements of Part 135 of the Federal Aviation Regulations.

7.5     HOURS OF OPERATION

Basic Requirement: The normal hours of operation will be at the Operator's discretion, but he should be reasonably available to the public.

7.6     MINIMUM INSURANCE COVERAGE

Aircraft Liability

Bodily Injury

$500,000.00 each person

$1,000,000.00 each accident

Property damage

$200,000.00 each accident

Passenger liability

$200,000.00 each passenger

$1,000,000.00 each accident

Comprehensive Public Liability and Property Damage

Bodily injury

$500,000.00 each person

$1,000,000.00 each accident

Property damage

$200,000.00 each accident

SECTION 8 - RADIO, INSTRUMENT OR PROPELLER REPAIR SERVICE

Operators desiring to provide a radio, instrument, propeller repair or other similar aviation specialty service must hold a Federal Aviation Administration Repair Station Certificate and Rating for same and as a minimum the following:

8.1     LAND

Basic Requirement: The leasehold shall contain six thousand (6,000) square feet of land for buildings, parking, and other business related use.

8.2     BUILDINGS

Basic Requirement: Construct or Lease a building providing one thousand five hundred square feet for a climate-controlled area to house office, restroom facilities and a minimum shop and hangar space as required for Federal Aviation Administration Repair Station Certification.

8.3     PERSONNEL

Basic Requirement: One Federal Aviation Administration repairman qualified in accordance with the terms of the Repair Station Certificate.

8.4     HOURS OF OPERATION

Basic Requirement: The normal hours of operation will be at the Operator's discretion, but he should be reasonably available to the public.

8.5     MINIMUM INSURANCE COVERAGE

Hangar Keepers Liability

$200,000.00 each accident

$400,000.00 each event

Products Liability

$1,000,000.00 each accident

SECTION 9 - AIRFRAME AND/OR POWER PLANT REPAIR

Operators desiring to provide an airframe and/or power plant or other aviation specialty service must hold a Federal Aviation Airframe and/or Power Plant Repair Station Certificate and Rating for same and as a minimum the following:

9.1     LAND

Basic Requirement: The leasehold shall contain six thousand (6,000) square feet to provide space for buildings, parking, and other business related use.

9.2     BUILDINGS

Basic Requirement: Lease or construct a building sufficient to provide one thousand five hundred (1,500) square feet of shop space meeting local and state industrial code requirements, plus adequate climate controlled area for office space, customer amenities and telephone.

9.3     PERSONNEL

Basic Requirement: One person currently certified by the Federal Aviation Administration with airframe and/or power plant rating appropriate for the work being performed.

9.4     HOURS OF OPERATION

Basic Requirement: The normal hours of operation will be at the Operator's discretion, but he should be reasonably available to the public.

9.5     EQUIPMENT

Basic Requirement: Sufficient equipment, supplies and availability of parts to perform maintenance in accordance with manufacturers recommendations or equivalent.

9.6     MINIMUM INSURANCE COVERAGE

Comprehensive Public Liability and Property Damage

Bodily injury

$500,000.00 each person

$1,000,000.00 each accident

Property damage

$200,000.00 each accident

Hangar Keepers

$200,000.00 each accident

$400,000.00 each event

SECTION 10 - AGRICULTURAL SPRAYING OPERATIONS

Agricultural spraying operations will be conducted in accordance with procedures approved by the Director and made known to all persons conducting agricultural spraying operations. Said operations shall be conducted only on the designated Airport areas, and shall not include reckless flying or careless chemical handling. Chemicals used in agricultural spraying operations shall be dispensed, maintained and stored and the dispensing area shall be cleaned with all empty chemical containers stored and promptly disposed of in accordance with the label directions. Washing of agricultural spraying aircraft and flushing of such aircraft spray cans or hoppers will be accomplished in accordance with the standards of the Environmental Protection Agency and the Texas Natural Resource Conservation Commission in an area so designated by the Director. Agricultural spraying aircraft operators shall not exceed the maximum gross hopper weight stamped on the agricultural aircraft's hopper by the aircraft manufacturer or listed in the aircraft's specifications. Agricultural aircraft shall not take off or land on the dirt or grass between the runway lights and the property line fence(s), nor take off or land down wind. Takeoff and landing procedures in accordance with "Takeoff and Landing Rules" contained herein will be observed at all times. NOTE: Because of the hazard of such agricultural spraying operations, the Board may require an agricultural spray operator to post a bond, the amount to be determined by the Board considering the financial risk to which Grayson County would be exposed by an agricultural spraying operator accident resulting in environmental damage, the number of agricultural spraying aircraft owned or leased and used by the Agricultural operator, etc.

Operators desiring to engage in aerial application operations must hold an Agricultural Aircraft Operator Certificate issued by the Federal Aviation Administration under Part 137 of the Federal Aviation Administration Regulations; and comply with the State of Texas Regulations therefore; and provide as a minimum the following:

10.1     LAND

Basic Requirement: Leasehold shall contain six thousand (6,000) square feet of land to provide for buildings, equipment, parking and other business operating space.

10.2     BUILDINGS

Basic Requirement: Lease or construct one thousand five hundred (1,500) square feet of building space for a climate controlled area for office space, customer amenities and telephone.

10.3     PERSONNEL

Basic Requirement: One person holding a current commercial pilot certificate, properly rated for the aircraft to be used and meeting the requirements of Part 137 of the Federal Aviation Administration and applicable regulations of the State of Texas.

10.4     AIRCRAFT

Basic Requirement: One airworthy aircraft meeting all requirements of Part 137 of the Federal Aviation Administrations Regulations and applicable regulations of the State of Texas. This aircraft shall be owned or leased by agreement in writing and based on Operator's leasehold.

10.5     FACILITIES AND OPERATIONS

Basic Requirement: Operator will provide a segregated chemical storage area protected from public access. Wash down of agricultural spraying aircraft and flushing of agricultural aircraft spray tanks will be accomplished only in areas so designated and approved in full compliance with applicable Environmental Protection Agency, Texas Water Quality Board, Texas Department of Agriculture, and the Texas Department of Health Resources recommendations and requirements. Empty chemical containers will be disposed of in accordance with applicable federal and state laws. Agricultural spraying operations will be conducted in accordance with procedures and from areas on the Airport specifically approved by the Board.

10.6     HOURS OF OPERATION

Basic Requirement: The normal hours of operation will be at the Operator's discretion, but he will be reasonably available to the public.

10.6(a)

Aerial applicators desiring to use the Airport on a temporary basis must meet all requirements of this Section, except Paragraphs No. 10.1 and 10.2. All operations require Director's approval of areas on the Airport, procedures and operating conditions, including length of stay, prior to conducting any agricultural spraying operations.

10.7     MINIMUM INSURANCE COVERAGE

Aircraft Liability

Bodily injury

$500,000.00 each person

$1,000,000.00 each accident

Property damage

$200,000.00 each accident

Comprehensive Public Liability and Property Damage

Bodily injury

$500,000.00 each person

$1,000,000.00 each accident

Property damage

$200,000.00 each accident

Chemical damage

$1,000,000.00 each accident

SECTION 11 - SPECIALIZED COMMERCIAL AVIATION SERVICES

Operators desiring to engage in specialized commercial activities including but not limited to those listed below shall provide as a minimum the following:

Banner towing and aerial advertising

Aerial photography or survey

Fire fighting or fire patrol

Power line or pipeline patrol

Aircraft cleaning or detailing

Any other commercial operation specifically excluded from

Part 135 of the Federal Aviation Administration Regulations

11.1     LAND

Basic Requirement: Leasehold shall contain six thousand (6,000) square feet of land to provide buildings, parking, and other business related use.

11.2    BUILDINGS

Basic Requirement: Lease or construct one thousand five hundred (1,500) square feet for climate controlled area for office, customer amenities, telephone and other business related use.

11.3     PERSONNEL

Basic Requirement: One person having a current commercial pilot certificate with ratings appropriate for the aircraft to be flown, or one person fully qualified to perform the commercial service offered.

11.4     AIRCRAFT

Basic Requirement: One properly certificated aircraft owned or leased in writing to the Operator for flight operations when/if required.

11.5     HOURS OF OPERATION

Basic Requirement: The normal hours of operation will be at the Operator's discretion, but he should be reasonably available to the public.

11.6     MINIMUM INSURANCE COVERAGE FOR OWNED OR LEASED AIRCRAFT

Aircraft Liability

Bodily injury

$500,000.00 each person

$1,000,000.00 each accident

Property damage

$200,000.00 each accident

Comprehensive Public Liability and Property Damage

Bodily injury

$500,000.00 each person

$1,000,000.00 each accident

Property damage

$200,000.00 each accident

11.7     LARGE AIRCRAFT OPERATIONS

Operators desiring to conduct operations of large aircraft (more than 12,500 lbs.) must negotiate the requirements for hangars and land with the Director and/or the Board on a case-by-case basis. Each application under this Section must be considered on its own merits.

SECTION 12 - MULTIPLE SERVICES

An Operator desiring to engage in two or more commercial aeronautical activities must provide as a minimum the following:

12.1     LAND

Basic Requirement: The leasehold for multiple actives shall contain seven thousand five hundred (7,500) square feet of land to provide space for the service to be offered. Specific use spaces as required in applicable SECTIONS herein need not be further increased where combination use can be reasonably and feasibly established.

12.2     BUILDINGS

Basic Requirement: Lease or construct a building containing two thousand (2,000) square feet for a climate controlled area for the service to be offered. Specific use spaces as required in applicable SECTIONS herein need not be further defined where combination can be reasonably and feasibly established. Repair station must provide minimum shop and hangar space as required by Federal Aviation Administration Repair Shop Certification.

12.3     PERSONNEL

Basic Requirement: Multiple responsibilities may be assigned to personnel to meet personnel requirements for all activities.

12.4     AIRCRAFT

Basic Requirement: All requirements for aircraft for specific activities to be engaged must be provided; however, multiple uses can be made of all aircraft, except aerial application aircraft, to meet these requirements. In order to meet these requirements, however, a minimum of two aircraft must be owned or under the direct control of the Operator and based on the Operator's leasehold.

12.5     EQUIPMENT

Basic Requirement: All equipment specifically required for each activity must be provided.

12.6     SERVICES

Basic Requirement: All services specifically required for each activity must be provided.

12.7     HOURS OF OPERATION

Basic Requirement: The Operator will adhere to the operating schedules as required for each activity.

12.8     MINIMUM INSURANCE COVERAGE

Basic Requirement: The Operator will obtain the highest single coverage in the amounts established for each type of insurance required for the specific activity.

SECTION 13. - KNOWLEDGE OF MINIMUM STANDARDS IMPLIED - By publication and adoption of this Resolution, all persons shall be deemed to have knowledge of its contents. However, the Board is directed to have copies of these Minimum Standards printed and posted where appropriate. Copies shall be available at all times in the Director's office, and copies shall be furnished to all Operators at the Airport.

SECTION 14. - CONFLICT OF MINIMUM STANDARDS - If and where there are conflicts in the Minimum Standards prescribed herein and the FAA's Federal Aviation Regulations (FAR), the latter shall prevail. If and where there exists a conflict between any of the Minimum Standards prescribed herein and any Board rule or regulation applicable to the same area, the more stringent limitation or requirement shall govern and prevail.

SECTION 15. - PENALTY FOR VIOLATION - The Board may deny use of the Airport for a period not exceeding fifteen (15) days for any person violating or refusing to comply with any of these Minimum Standards pending a hearing by the Board. Upon such hearing, such person may be deprived of further use of the Airport and its facilities for a period of time as may appear necessary for the protection of life and property. Any violation shall be a misdemeanor, and upon conviction, be punishable by a fine not exceeding two hundred ($200) dollars, and each day a violation continues to exist shall constitute a separate offense. This section is cumulative of all other penalties for violation of Federal, State, and local laws, rules, regulations, ordinances, and orders. Citation for violation or issuance of a violation ticket of any of the Minimum Standards prescribed herein may be made by any authorized police officer. The Director or the Board may request authorized police officers to investigate any suspected violation of these rules.

SECTION 16. - SEVERABILITY - If any of the provisions of these Minimum Standards or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of these Minimum Standards which can be given effect without the invalid provision or application, and to this end the provisions of these Minimum Standards are declared to be severable.

Read, passed, and adopted by a vote of the Grayson County Airport Board, on the _______________day of ________________, 2000. ___________Members voting Aye; ____________Members voting Nay.

GRAYSON COUNTY AIRPORT BOARD

BY:

_____________________________________

Ellis Olmstead, Its Chairman