April 9, 2015

Exemption No. 11312 Regulatory Docket No. FAA

í 2014

í 1065

Mr. William P. Callahan, Esq. Counsel for Sout hGate Films, Inc. Law office of William P. Callahan 515 Madison Avenue, Suite 2304 New York, NY 10022 Mr. Joseph A. Robinson, Esq. Counsel for Sout hGate Films, Inc. Law office of William P. Callahan 515 Madison Avenue, Suite 2304 New York, NY 10022
Mr. Paul Callahan President SouthGate Films, Inc. 67 West Street, Suite 605

Dear Messrs. Callahan, Robins on, and Callahan: This letter is to inform you that we have gran ted your request for exemption. It transmits our decision, explains its basis, and gives you the conditions and limitations of the exemption, including the date it ends.2
The Basis for Our Decision By letter dated December 16, 2014 1 , you petitioned the Federal Aviation Administration (FAA) on behalf of SouthGate Films, Inc. (hereinafter petitioner or operator) for an exemption. The exemption would allow the petitioner to operate an unmanned aircraft system (UAS) to conduct aerial filming and photograp hy for short films, motion pictures, and commercial filming. See Appendix A for the petition submitted to the FAA describing the proposed operations and the regulations that the petitioner seeks an exemption. The FAA has determined that good cause exists for not publishing a summary of the petition in the Federal Register because the requested exemption would not set a precedent, and any delay in acting on this petition would be detrimental to the petitioner.
Airworthiness Certification The UAS proposed by the petitioner are the DJI F550, Tarot T-15, and Tarot T-18. The petitioner requested relie f from 14 CFR part 21, C ertification procedures for products and parts, Subpart H—Airworthiness Certificates . In accordance with the statutory criteria provided in Section 333 of Public Law 112

í 95 in reference to 49 U.S.C. § 44704, and in consideration of the size, weight, speed, and limited operating area associated with the aircraft and its operation, the Secretary of Tran sportation has determined that this aircraft meets the conditions of Section 333. Therefore, the FAA finds that the requested relief from 14 CFR part 21, and any associated noise certifi cation and testing requirements of part 36, is not necessary.
The Basis for Our Decision You have requested to use a UAS for aerial da ta collection. The FAA has issued grants of exemption in circumstances similar in all materi al respects to those presented in your petition. In Grants of Exemption Nos. 11062 to Astraeus Aerial ( see Docket No. F $$íí 11109 to Clayco, Inc. ( see Docket No. FAA

í 2014

í 0507), 11112 to VDOS Global, LLC ( see 'RFNHW1R)$$ííDQG 11213 to Aeryon Labs, Inc. ( see Docket No. )$$ííWKH)$$IRXQGWKDWWKHHQKDQFHGVDIHW\DFKLHYHG XVLQJDQXQPDQQHG aircraft (UA) with the specifications described by the petitioner and carrying no passengers or crew, rather than a manned aircraft of sign ificantly greater proportions, carrying crew in addition to flammable fuel, gives the FAA good cause to find that the UAS operation enabled by this exemption is in the public interest.

1 By letter dated December 17, 2014, and posted to the public docket on December 29, 2014, the petitioner provided additional information.3 Having reviewed your reasons for requesting an exemption, I find that—

x They are similar in all material respects to relief previously requested in Grant of Exemption Nos. 11062, 11109, 11112, and 11213;

x The reasons stated by the FAA for granting Exemption Nos. 11062, 11109, 11112, and 11213 also apply to the situation you present; and

x A grant of exemption is in the public interest.
Our Decision In consideration of the foregoing, I find that a grant of exemption is in the public interest. Therefore, pursuant to the authority contained in 49 U.S.C. 106(f), 40113, and 44701, delegated to me by the Administrator, SouthGate Films, Inc. is granted an exemption from 14 CFR §§ 61.23(a) and (c), 61.101(e)(4) a nd (5), 61.113(a), 61.315(a), 91.7(a), 91.119(c), 91.121, 91.151(a)(1), 91.405(a), 91.407(a)(1), 91.409(a)(1 ) and (2), and 91.417(a) and (b), to the extent necessary to allow the petitioner to operate a UAS to perform aerial data collection. This exemption is subject to the conditions and limitations listed below.
Conditions and Limitations In this grant of exemption, SouthGate Films, In c. is hereafter referred to as the operator. Failure to comply with any of the conditions and limitations of this grant of exemption will be grounds for the immediate suspension or rescission of this exemption. 1. Operations authorized by this grant of exemption are limited to the DJI F550, Tarot T-15, and Tarot T-18 when weighing less than 55 pounds including payload. Proposed operations of any other aircraft will require a new petition or a petition to amend this exemption. 2. Operations for the purpose of closed-set motion picture and television filming are not permitted. 3. The UA may not be operated at a speed exceeding 87 knots (100 miles per hour). The exemption holder may use either groundspeed or calibrated airspeed to determine compliance with the 87 knot speed restricti on. In no case will the UA be operated at airspeeds greater than the maximum UA operating airspeed recommended by the aircraft manufacturer. 4. The UA must be operated at an altitude of no more than 400 feet above ground level (AGL). Altitude must be reported in feet AGL. 5. The UA must be operated within visual line of sight (VLOS) of the PIC at all times. This requires the PIC to be able to use hum an vision unaided by any device other than4 corrective lenses, as specified on the PIC’s FAA-issued airman medical certificate or U.S. driver’s license. 6. All operations must utilize a visual observer (VO). The UA must be operated within the visual line of sight (VLOS) of the PIC and VO at all times. The VO may be used to satisfy the VLOS requirement as long as the PIC always maintains VLOS capability. The VO and PIC must be able to communicate verbally at all times; electronic messaging or texting is not permitted during flight operations. The PIC must be designated before the flight and cannot transfer his or her designation for the duration of the flight. The PIC must ensure that the VO can perform the duties required of the VO. 7. This exemption and all documents need ed to operate the UAS and conduct its operations in accordance with the conditions and limitations stated in this grant of exemption, are hereinafter referred to as the operating documents. The operating documents must be accessible during UAS operations and made available to the Administrator upon request. If a discrepa ncy exists between the conditions and limitations in this exemption and the procedures outlined in the operating documents, the conditions and limitations herein take precedence and must be followed. Otherwise, the operator must follow the procedures as outlined in its operating documents. The operator may update or revi se its operating documents. It is the operator’s responsibility to track such re visions and present updated and revised documents to the Administrator or any la w enforcement official upon request. The operator must also present updated and revise d documents if it petitions for extension or amendment to this grant of exemption. If the operator determines that any update or revision would affect the basis upon which th e FAA granted this exemption, then the operator must petition for an amendment to its grant of exemption. The FAA’s UAS Integration Office (AFS-80) may be contacte d if questions arise regarding updates or revisions to the operating documents. 8. Any UAS that has undergone maintenance or alterations that affect the UAS operation or flight characteristics, e.g. replacemen t of a flight critical component, must undergo a functional test flight pr ior to conducting further operations under this exemption. Functional test flights may onl y be conducted by a PIC with a VO and must remain at least 500 feet from other people. The functi onal test flight must be conducted in such a manner so as to not pose an undue hazard to persons and property. 9. The operator is responsible for maintaining and inspecting the UAS to ensure that it is in a condition for safe operation. 10. Prior to each flight, the PIC must conduct a pre-flight inspection and determine the UAS is in a condition for safe flight. The pre-flight inspection must account for all potential discrepancies, e.g. inoperable co mponents, items, or equipment. If the inspection reveals a condition that affects the safe operation of the UAS, the aircraft is5 prohibited from operating until the necessary maintenance has been performed and the UAS is found to be in a condition for safe flight. 11. The operator must follow the UAS ma nufacturer’s maintenance, overhaul, replacement, inspection, and life limit require ments for the aircraft and aircraft components. 12. Each UAS operated under this exemption mu st comply with all manufacturer safety bulletins. 13. Under this grant of exemption, a PIC mu st hold either an airline transport, commercial, private, recreational, or sport pilot certificate. The PIC must also hold a current FAA airman medical certificate or a valid U.S. driver’s license issued by a state, the District of Columbia, Puerto Rico, a territory, a possession, or the Federal government. The PIC must also meet th e flight review requirements specified in 14 CFR § 61.56 in an aircraft in which the PI C is rated on his or her pilot certificate. 14. The operator may not permit any PIC to operate unless the PIC demonstrates the ability to safely operate the UAS in a manner consistent with how the UAS will be operated under this exemption, including evasive and emergency maneuvers and maintaining appropriate distances from persons , vessels, vehicles and structures. PIC qualification flight hours and currency must be logged in a manner consistent with 14 CFR § 61.51(b). Flights for the purposes of training the operator’s PICs and VOs (training, proficiency, and experience-building) and determining the PIC’s ability to safely operate the UAS in a manner consistent with how the UAS will be operated under this exemption are permitted under the terms of this exemption. However, training operations may only be conducted during dedicated training sessions. During training, proficiency, and experience-build ing flights, all persons not essential for flight operations are considered nonpartic ipants, and the PIC must operate the UA with appropriate distance from nonparticipants in accordance with 14 CFR § 91.119. 15. UAS operations may not be conducted during night, as defined in 14 CFR § 1.1. All operations must be conducte d under visual meteorological conditions (VMC). Flights under special visual flight rule s (SVFR) are not authorized. 16. The UA may not operate within 5 nautical miles of an airport reference point (ARP) as denoted in the current FAA Airport/Facilit y Directory (AFD) or for airports not denoted with an ARP, the center of the ai rport symbol as denoted on the current FAApublished aeronautical chart, unless a lette r of agreement with that airport’s management is obtained or otherwise permitted by a COA issued to the exemption holder. The letter of agreement with the airport management must be made available to the Administrator or any law enforcement official upon request.6 17. The UA may 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.
18. If the UAS loses communications or loses its GPS signal, the UA must return to a predetermined location within the pr ivate or controlled-access property. 19. The PIC must abort the flight in the even t of unpredicted obstacles or emergencies. 20. The PIC is prohibited from beginning a fl ight unless (considering wind and forecast weather conditions) there is enough ava ilable power for the UA to conduct the intended operation and to operate after that for at least fi ve minutes or with the reserve power recommended by the manufacturer if greater. 21. Air Traffic Organization (ATO) Certificate of Waiver or Authorization (COA). All operations shall be conducted in accord ance with an ATO-issued COA. The exemption holder may apply for a new or amended COA if it intends to conduct operations that cannot be conducted unde r the terms of the attached COA. 22. All aircraft operated in accordance with this exemption must be identified by serial number, registered in accordance with 14 CFR part 47, and have identification (NNumber) markings in accordance with 14 CF R part 45, Subpart C. Markings must be as large as practicable. 23. Documents used by the operator to ensure the safe operation and flight of the UAS and any documents required under 14 CFR §§ 91.9 and 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. 24. The UA must remain clear and give wa y to all manned aviation operations and activities at all times. 25. The UAS may not be operated by the PIC from any moving device or vehicle. 26. All Flight operations must be conducted at least 500 feet from all nonparticipating persons, vessels, vehicles, and structures unless:

a. Barriers or structures are present that sufficiently protect nonparticipating persons from the UA and/or debris in the event of an accident. The operator must ensure that nonparticipating persons remain under such protection. If a situation arises where nonparticipating persons leave such protection and are within 500 feet of the UA, flight operations must cease immedi ately in a manner ensuring the safety of nonparticipating persons; and b. The owner/controller of any vessels, vehicl es or structures has granted permission for operating closer to those objects and th e PIC has made a safety assessment of7 the risk of operating closer to those objects and determined that it does not present an undue hazard. The PIC, VO, operator trainees or e ssential persons are not considered nonparticipating persons under this exemption. 27. All operations shall be co nducted over private or cont rolled-access property with permission from the property owner/cont roller or authorized representative. Permission from property owner/controller or authorized representative will be obtained for each flight to be conducted. 28. Any incident, accident, or flight operation that transgresses the lateral or vertical boundaries of the operational area as define d 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 Tr ansportation Safety Board (NTSB) per instructions contained on the NTSB Web site: www.ntsb.gov

. If this exemption permits operations for the purpose of closed-set motion picture and television filming and production, the following additional conditions and limitations apply. 29. The operator must have a motion pictur e and television opera tions manual (MPTOM) as documented in this grant of exemption. 30. At least 3 days before aerial filming, the operator of the UAS affected by this exemption must submit a written Plan of Activities to the local Flight Standards District Office (FSDO) with jurisdiction over the area of proposed filming. The 3-day notification may be waived with the concur rence of the FSDO. The plan of activities must include at least the following:

a. Dates and times for all flights; b. Name and phone number of the operato r for the UAS aerial filming conducted under this grant of exemption; c. Name and phone number of the person re sponsible for the on-scene operation of the UAS; d. Make, model, and serial or N-Number of UAS to be used; e. Name and certificate number of UAS PICs involved in the aerial filming; f. A statement that the operator has obt ained permission from property owners and/or local officials to conduct the f ilming production event; the list of those who gave permission must be made available to the inspector upon request; g. Signature of exemption hol der or representative; and h. A description of the flight activity, incl uding maps or diagrams of any area, city, town, county, and/or state over which f ilming will be conducte d and the altitudes essential to accomplish the operation.8 31. Flight operations may be conducted closer than 500 feet from participating persons consenting to be involved and necessary fo r the filming production, as specified in the exemption holder’s MPTOM. Unless otherwise specified in this grant of exemption, the UAS, the UAS PIC, and the UAS operations must comply with all applicable parts of 14 CFR including, but not limited to, parts 45, 47, 61, and 91. This exemption terminates on April, 30, 2017, unless sooner superseded or rescinded. Sincerely,

/s/ John Barbagallo Acting Deputy Director, Flight Standards ServiceWilliam P. Callahan, Esq. Phone: +1 212-889-3000 Willcall66@gmail.com
Joseph A. Robinson, Esq. Phone: +1 386-503-7229 goodvend@yahoo.com
December 16th, 2014
U. S. Department of Transportation Docket Management System 1200 New Jersey Ave., SE Washington, DC 20590
Re: Exemption Request Section 333 of the FAA Reform Act and Part 11 of the Federal Aviation Regulations from 14 CFR Part 21; 14 CFR 61.113 (a) & (b); 91.7 (a); 91.119; 91.121; 91.151(a); 91.405 (a); 91.407(a) (1); 91.409 (a) (2); 91.417 (a) & (b).

To whom it may concern: In accordance with Section 333 of the FAA Modernization and Reform Act of 2012 (“Reform Act”) and 14 C.F.R. Part 11, SouthGate Films, development and operations specialists for Unmanned Aircraft Systems (“UASs”) which are setup to utilize aerial filming and photography for short films, motion pictures, and commercial filming, submits this exemption petition application. SouthGate films seeks exemption from the aforementioned listed Federal Aviation Regulations (“FARS”) to permit the commercial operation of its UASs providing that the operations are conducted only according to that which is provided in this petition for exemption or as may be currently or in the future required by the FAA as found in Section 333.1, or any other prevailing federal regulations. As outlined below, our request for exemption would allow the operation of small unmanned aircraft systems under established preset conditions in the air that are 1) narrow in scope 2) pre-determined 3) access controlled and 4) improve upon the safety operations that commercial filming currently employ (such as using a manned helicopter for aerial footage). Approval of this petition for exemption would improve safety as well as provide an opportunity to the Secretary of Transportation (the FAA Administrator’s) to accomplish their goal to “...establish requirements for the safe operation of such aircraft systems in the national airspace system.” See Section 333(c) of Reform Act.

Law Office of William P. Callahan 515 Madison Ave., Suite 2304, New York, NY 10022 T: 212-889-3000 F: 212-889-3242 | 1The name and address of the applicant is: SouthGate Films, Inc. President Paul Callahan (paul@southgatefilms.com, T: 347-489-7890) 67 West Street, Suite 605 Brooklyn, NY 11222

SouthGate films hereby requests an exemption from the following regulations:

● 14 CFR Part 21

● 14 CFR 61.113 (a) & (b)

● 14 C.F.R. 91.7 (a)

● 14 C.F. R. 91.119

● 14 C.F.R. 91.121

● 14 CFR 91.151 (a)

● 14 CFR 91.405 (a)

● 14 CFR 407 (a) (1)

● 14 CFR 409 (a) (2)

● 14 CFR 417 (a) & (b)

The SouthGate Films exemption application is intended to achieve Congress’ aims in passing Section 333(a) - (c) of the Reform Act. The reform act instructs the Secretary of Transportation to give consideration to whether or not particular unmanned aircraft systems can successfully achieve sufficient safety measures for inclusion in the national airspace system (NAS). Such an exemption from the regulations will only serve as a temporary measure in anticipation of the fulfillment of the rulemaking requirement of Section 332 of the Reform Act. In consideration of the petition the Secretary should consider which UASs are neither a danger to participants of the NAS or the public at large or present the potential to threaten the national security of the United States. These factors should be considered according to the Reform Act § 333 (a): • The UAS’s size, weight, speed, and operational capability; • Operation of the UAS in close proximity to airports and populated areas; and • Operation of the UAS within visual line of sight of the operator. If the Secretary decides that such vehicles “may operate safely in the national airspace system, the Secretary shall establish requirements for the safe operation of such aircraft in the national airspace system.” Id. §333(c). SouthGate Films believes the provisions found in section 333 of the Reform Act creates an obligation for the FAA to process applications for exemption and, if necessary, for the FAA to create standards for safe use if such standards proposed in this petition for exemption fail to meet statutory requirements for approval.

Law Office of William P. Callahan 515 Madison Ave., Suite 2304, New York, NY 10022 T: 212-889-3000 F: 212-889-3242 | 2The authority for the FAA to issue such an exemption is expressly granted in The Federal Aviation Act. This statutory authority’s terms include an exemption for civil aircraft, as defined under §40101 of the Federal Aviation Act, and includes UASs, with the intent to exempt such from the mandate that every civil aircraft be required to possess a valid airworthiness certificate. If the Administrator finds the exemption request in the public interest the Administrator may grant an exemption from requirements of the regulations promulgated under subsections (a) or (b) or sections 44702-44716 of this title. 49 U.S.C. §44701(f); See 49 USC §44711(a); 49 USC §44704; 14 CFR §91.203 (a) (1). The Administrator may grant an exemption from a requirement of a regulation prescribed under subsection (a) or (b) of this section or any sections 44702-44716 of this title if the Administrator finds the exemption in the public interest. 49 U.S.C. §44701(f) See also 49 USC §44711(a); 49 USC §44704; 14 CFR §91.203 (a) (1). SouthGate Film’s UASs are rotorcraft with a combined weight, including any necessary added filming equipment, of 55lbs or less. The UASs are capable of moving in vertical and horizontal positions at the same time. The UASs can hover and are restricted to speeds of no more than 25mph as implemented by the duly trained operator. UASs operations will always be conducted within the line of sight of the operator and will be limited to the confines of a properly secured area. For details about what constitutes a properly secured area please see the SouthGate Film’s safety operations manual attached as exhibit 1. This application for exemption strongly expresses that the structure and operations of these UASs will “not create a hazard to users of the national airspace system or the public.” Reform Act 333 (b). It is congress's intent that the FAA allow commercial UAS operations to begin immediately through the process of a granted exemption as long as the proposed operations satisfy the proper zone of safety. The limited size, intended cargo (filming equipment) and secure locality ensure there is zero national security threat stemming from granting approval of the operations of these particular UASs. The administrator should grant this application request because it carries out the intent of Section 333 of the Reform Act in addition to the authority of the Federal Aviation Act. The grant is in the best interests of the public because it limits harmful environmental factors and enhances the safety of both the public at large and filming industry workers. Applicants hereby request their application for exemption be considered and approved as soon as it can be processed.

AIRCRAFT CHARACTERISTICS AND SAFETY LEVEL EQUIVALENTS The applicant seeks to have this exemption cover only civil aircraft as described therein this petition and subject to the limitations proposed within this petition or as should be found necessary by the FAA. Motion picture filming companies already safely operate using combustible manned helicopters or other

Law Office of William P. Callahan 515 Madison Ave., Suite 2304, New York, NY 10022 T: 212-889-3000 F: 212-889-3242 | 3manned civil aircraft to achieve many tasks that non-combustible unmanned UASs can accomplish with the equivalent or better level of safety. SouthGate Films proposes and agrees to the following limitations and conditions for commercial filming UAS operations conducted under a granted FAA exemption:
1. The total combined weight of the UASs and attached equipment will weigh 55lbs or less.
2. At all times the pilot will operate the UAS in an unbroken visual line of sight (VLOS).
3. No flight operations will fly for more than 30 consecutive minutes without first landing and changing the batteries and conducting necessary safety checks.
4. Once the battery is at 25% the operator must begin return to ground procedures. The UASs are not permitted to operate below 20% battery.
5. Maximum flight altitude shall not exceed 400 AGL.
6. A minimum 3 man crew consisting of the UAS Pilot, Visual Observer, and Camera Operator is required to conduct operations.
7. The UASs Pilot in Command (PIC) must have at least 25 documented hours operating UASs.
8. The PIC must have the requisite knowledge about the components required to build and maintain the particular type of UASs type they are operating.
9. A PIC will have a private pilot’s certificate.
10. A PIC will not operate an UAS within 5 miles of the center of an airport without permission from the local FSDO and clearance from the control tower of the airport.
11. The pilot and observer will have at least a third class medical.
12. UASs will only operate in a properly secured area. SouthGate Films pre flight safety procedures require a secured perimeter as described in their pre flight safety operations manual.
13. A mandatory briefing that all participating personnel (persons allowed into the filming perimeter) must attend in order to go over all pre flight safety issues and procedures for the day.
14. A FAA Form 7711-1, or an equivalent, modified as needed to fit the requested exemption, will be filed with the relevant Flight Standards District Office.
15. A UAS may not operate unless persons within 100ft of operations have consented to being in the secured area, as provided in the SouthGate Film’s pre operations safety manual. With certain enhanced safety procedures the required radius may be reduced as low as 30ft as described in the manual. No smaller distance radius shall be allowed without the express approval of the relevant FSDO.
16. The relevant FSDO shall receive a written Activities Agenda at least 3 days before a proposed filming date.

Law Office of William P. Callahan 515 Madison Ave., Suite 2304, New York, NY 10022 T: 212-889-3000 F: 212-889-3242 | 417. At all operational times the pilot and observer will be able to maintain contact through voice communication.
18. Operations shall not be permitted in areas that do not have the consent of the property owners.
19. Any necessary required permission and/or permits from territorial, state, county or city jurisdictions, local law enforcement, fire department, or appropriate government agencies will be obtained accordingly.
20. In the case of emergency, loss of communications or other malfunction, the UASs are preset to be able to return to a pre specified location in a safe manner. The UASs can abort a flight in unexpected situations or other emergencies. 14 C.F.R. Part 21, Subpart H: Airworthiness Certificates 14 C.F.R. §91.203 (a) (1) FAR §91.203 (a) (1) requires the establishment of a process for the granting of airworthiness certificates. The process for obtaining an airworthiness certificate is provided for in 14 C.F.R., Subpart H, titled Airworthiness Certificates. The small size of the UASs and limited perimeter of the secured operations area allow for an equivalent level of safety as envisioned in Part 11 and Section 333 of the reform act. The FAA is permitted to exempt aircraft from the airworthiness certificate requirement as provided in The Federal Aviation Act (49 U.S.C.§44701 (f)) and Section 333 of the Reform Act. An exemption may be permitted after consideration of the size, weight, speed, operational capability, distance from airports and amount of persons near areas of operation. A careful consideration of these factors makes it clear that UASs, lacking an airworthiness certificate, but, implementing the proposed conditions and restrictions, can operate just as safe if not safer than conventional aircraft with an airworthiness certificate. The UASs weigh less than 55 lbs with a full load and cannot carry a pilot or hold any passengers. The UASs do not carry fuel or any other explosive or flammable liquids, and will only be operated within the secured zone as provided for in the SouthGate Film’s safety manual. The petition for exemption will only allow for tightly controlled and very closely observed operations as described in the SouthGate Film’s safety manual. The FAA will be informed in advance of the operations area and all local laws will be followed and abided by. SouthGate Film's UAS operations without an airworthiness certificate will be safer than conventional aircraft operating with an airworthiness certificate because of the conduct limitations provided for in this petition that are inapplicable to the latter. The UASs safety requirements are similar to requirements used in the production and filming industry for civilian aircraft. The UASs operations do not pose a threat to the national security of the United States, or any locality found within or without the United States. The purpose of the operations of the UASs is to create footage for the filming commercial and movie industry and is not intended in any way for hostile acts. The size, speed, area of operations, absence of flammable gasoline or other combustible liquids and limitations on payload weight present no credible threat to the United States.

Law Office of William P. Callahan 515 Madison Ave., Suite 2304, New York, NY 10022 T: 212-889-3000 F: 212-889-3242 | 514 C.F.R. § 61.113 (a) & (b): Private Pilot Privileges and Limitations: Pilot in Command. SouthGate films seeks exemption from 61.113 so that it’s PIC may hold a private pilot’s certificate instead of a commercial pilot’s certificate. In Grant of Exemption No. 11062 to Astraeus Aerial (Astraeus), the FAA determined that a PIC with a private pilot’s certificate operating the Astraeus UAS would “not adversely affect operations in the NAS or present a hazard to persons or property on the ground”. SouthGate Film’s safety training provides an equivalent level of safety and potentially helps exceed current safety levels when compared to manned aerial flights. The knowledge SouthGate Films has about UAS operations is relevant and supplements the safety awareness the PIC learns from getting a private pilot’s certificate. SouthGate Films provides safety and education through the use of the safety operations manual, pre flight safety checks and proper care for it’s UASs. 14 C.F.R. §91.7(a): Civil aircraft airworthiness. A grant of exemption from 91.7 is needed because there will be no airworthiness certificate. The airworthy conditions will be determined according to the SouthGate film’s safety manual. The pre flight safety procedures found in the SouthGate film’s manual provides for an equivalent level of safety. The PIC will be responsible for making sure the aircraft is airworthy before each flight. 14 C.F.R. §91.119: Minimum safe altitudes Section 91.119 establishes the safe altitudes for operations of civil aircraft. This request for exemption asks for the submitted UASs to be permitted to operate at altitudes up to 400 AGL. All operations will occur in a pre secured area where all persons and property present will have given their informed consent. The location, size, weight and speed of the UASs provide for an equivalent level of safety. Conventional aircraft flying below 500 AGL present a much greater risk to persons and property than small UASs operating at the same altitude. Risks to conventional aircraft that are not applicable to UASs include combustible fuel and large payloads. The low altitude will actually create an unintended buffer between UASs operating below 400 AGL and conventional aircraft operating above 500 AGL as required by Section 91.119. Section 91.119(c) provides that no aircraft shall operate within 500 AGL of any “person, vessel, vehicle or structure”. Due to the commercial filming nature of the UASs operations, we request filming operations be permitted from much closer distances. This would all take place in accordance with pre flight safety procedures. The operations manual provides that all persons within 100ft must give their consent to be present and that such permission may be reduced to 30ft with enhanced safety procedures in place in addition to the mandatory safety briefing involving all persons including the PIC. Filming with UASs instead of manned helicopters provides an increased level of safety to the public and the crew working on the set. 14 C.F.R. §91.121 Altimeter Settings 91.121 contains language requiring an aircraft to maintain an altimeter. The UASs do not have a traditional barometric altimeter and therefore an exemption may be needed. The UASs are, however, able to

Law Office of William P. Callahan 515 Madison Ave., Suite 2304, New York, NY 10022 T: 212-889-3000 F: 212-889-3242 | 6provide an equivalent level of safety through use of GPS altitude equipment. The GPS component attached to the UAS uses a communications telemetry data link to send the AGL information to the PIC to effectively monitor safety and the flight path. Methods include GPS triangulation, digitally encoded barometric altimeter, radio altimeter or any combination. The GPS on the UAS transmits the appropriate data digitally to a ground readout handheld controlled by the PIC. The UAS PIC will reset the altitude to zero before every launch. 14 C.F.R. § 91.151(a): Fuel Requirements for Flight in VFR Conditions Section 91.151 (a) disallows aircraft from flying without first having at least 30 minutes of fuel beyond their time to take off and land under normal conditions if its during the day and 45 minutes for the night. Since the UASs can only operate for 30-45mins total, before landing and replacing their batteries, an exemption may be needed. Allowing UAS operations until battery life has reached 20% of it’s full strength will ensure an equivalent level of safety compared to conventional aircraft operations with 30 minutes extra fuel. The UAS is set to automatically return to a pre determined landing spot in the case of emergency and this can be accomplished very quickly. Conventional aircraft generally have less flexibility for landing than a small lightweight UAS. 14 C.F.R. §91.405 (a); 407 (a) (1); 409 (a) (2); 417(a) & (b): Maintenance Inspections These regulations are for conventional aircraft with an airworthiness certificate and are therefore incompatible with the operations of an UAS. SouthGate Film’s UAS operators are the best suited people to perform maintenance on the UASs. This is because they have specialized knowledge about the components that a typical aviation inspector would lack. The size, payload, location restrictions and height limits allow for an equivalent level of safety. Maintenance shall be performed on a daily basis as required and a log of all maintenance activities kept. ************************************ In accordance with 14 C.F.R. Part 11, the summary below is provided for publication in the Federal Register, should it be determined that publication is warranted: Applicant seeks an exemption from the following rules: 14 C.F.R. §21, subpart H; 14 C.F.R. §§ 61.113( a) & (b); 91.7 (a); 91.119; 91.121; 91.151(a); 91.405 (a); 91.407 (a) (1); 91.409 (a) (2); 91.409 (a) (2) and 91.417 (a) & (b) to operate for commercial purposes small unmanned aerial systems (weighing less than 55lbs) for aerial filming and photography for short films, motion pictures, and commercial filming. Approval for this section 333 exemption will increase public safety and reduce the risk to on set personnel and property. Currently, most aerial filming is done by various filming studios using manned airplanes. These airplanes weigh thousands of pounds and require the use of combustible gasoline in order to operate. In comparison, an Unmanned Aerial System can accomplish the same commercial filming

Law Office of William P. Callahan 515 Madison Ave., Suite 2304, New York, NY 10022 T: 212-889-3000 F: 212-889-3242 | 7