Aerial photography firm SkyPan International agreed to pay a $200,000 civil penalty to the Federal Aviation Administration.
According to the FAA, the Chicago-based company conducted 65 unauthorized drone operations in congested airspace over its hometown and New York City.
It also violated airspace regulations and aircraft operating rules, and in the fall of 2015 was slapped with the agency's largest proposed civil penalty: $1.9 million.
This week's settlement, however, requires SkyPan pay only a fraction of the original fine over a three-year period—in return for the FAA turning a blind eye to its offenses. An additional $150,000 must be paid in the event SkyPan screws up during the next year or breaches terms of the agreement.
"Flying unmanned aircraft in violation of the Federal Aviation Regulations is illegal and can be dangerous," FAA Administrator Michael Huerta said in a 2015 statement. "We have the safest airspace in the world, and everyone who uses it must understand and observe our comprehensive set of rules and regulations."
SkyPan on Tuesday explained that all flights were administered at least two years before the FAA's first rule for commercial unmanned aircraft systems (UAS) went into effect in 2016.
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"SkyPan has never had an accident, and SkyPan has never compromised citizens' privacy or security," the group said, suggesting other operators should register their drones and ensure pilots fulfill requirements before take-off.
The Federal Aviation Administration in June released long-awaited regulations for the commercial use of drones:
Pilots must be at least 16 years old with a remote pilot certificate or supervision by someone who has one; flying devices, meanwhile, must weigh less than 55 pounds and fly no higher than 400 feet off the ground or within 400 feet of a structure, and can operate only in daylight or during twilight hours at a max speed of 100mph.