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You're right the FAA has no oversight but........ They are still operated in accordance with the federal aviation regulations when in public airspace.   If a public use aircraft performs a maneuver or does an air space violation in the public airspace the pilots can still be held liable and if they do hold a FAA certificate it can be revoked or they can be prevented from having a certificate in the future for a specified amount of time...    It happens quite frequently with military aircraft operating in public airspace they receive a pilot deviation and are prevented from receiving a civilian pilot certificate for a specified amount of time.