Mark E. McKinnon Mark.McKinnon@dentons.com
D 703.336.8708

Dentons US LLP 1676 International Drive • Penthouse McLean, VA 22102 United States

T 703.336.8800 F 703.336.8750 Salans FMC SNR Denton McKenna Long
dentons.com

A u gust 6 , 2015

U.S. Department of Transportation Docket Management System 1200 New Jersey Ave., SE Washington DC 20590

Re: Petition of Auto

- Owners Insurance Company and its subsidiaries Auto

- Owners Life Insurance Company, Owners Insurance Company, Home

- Owners Insurance Company, Property

- Owners Insurance Company

, and Southern

- Owners Insurance Company for Grant of Exemption Pursuant to Section 333 of the FAA
Modernization and Reform Act of 2012

To Whom it May Concern :

Pursuant to Section 333 of the FAA Mo dernization and Reform Act of 2012 (Reform Act) and 14 C.F.R. Part 11, Aut o

- Owners Insurance Company and its subsidiaries, Auto

- Owners Life Insurance Company, Owners Insurance Company, Home

- Owners Insurance Company, Property

- Owners Insurance Company

, and S outhern

- Owners Insurance Company (collectively referred to in this petition as " AOIC ") hereby applies for a Grant of Exemption from the Federal Aviation Regulations (FARs) identified below, to operate small unmanned aerial vehicles ( i.e., small unmanned ai rcraft systems or UAS) for the purpose of conducting aerial data collection in support of its insurance activities

. In particular, A OIC seeks permission to operate the DJI
Phantom line of vehicles as well as the 3D Robotics Solo. AOIC respectfully sub mits that this Petition for Exemption qualifies for expedited approval, as the Federal Aviation Administration (FAA) has previously issued grants of exemption in circumstances similar in all material respects to those presented herein.

In addition to th is Petition for Exemption, AOIC will also submit the following operating documents under separate cover:

 AOIC Operations Manual

AOIC submits this manual as confidential documents under separate cover pursuant to 14 C.F.R. § 11.35(b), as the manual conta ins confidential commercial and proprietary information that is not generally made available to the public. As a result, the information is also protected from release under the Freedom of Information Act, 5 U.S.C. § 552 et seq.

For your convenience, th is Petition is organized as follows:U.S. Department of Transportation August 6, 2015 Page 2 Salans FMC SNR Denton McKenna Long
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T ABLE OF C ONTENTS
Page

I. B ACKGROUND & D ESCRIPTION OF P ETITIONER

................................ ................................ .... 3

II. D ESCRIPTIO N OF P ROPOSED O PERATION

................................ ................................ ............... 3

III. R ELEVANT S TATUTORY A UTHORITY

................................ ................................ .................... 4

IV. AOIC ' S P ROPOSED UAS O PERATIONS M EET THE R EQUIREMENTS OF S ECTION 333

OF THE R EFORM A CT

................................ ................................ ................................ ............ 5

A. Approval is Warranted Based on the UAS's Size, Weight, Speed, and Operational Capability

................................ ................................ ............................. 5

B. Approval is Warranted Based on the Operational Restrictions in AOIC ' s Operating Documents

................................ ................................ .............................. 6

V. R EGULATIONS F ROM W HICH E XEMPTION I S S OUGHT

................................ ........................... 6

A. 91.9(c), 45.23(b) and 45.27(a): Aircraft Marking and Identification Requirements

................................ ................................ ................................ ........... 7

B. 91.405(a), 91.407(a)(1), 91.409(a)(1) and (2); 91.417(a) and (b):
Maintenance Inspections

................................ ................................ .......................... 8

C. 61.23(a) and (c), 61.113, 61.101(e)(4) and (5), 61.315: Private, Recreational and Sport Pilot Medical Certificate, Privileges and
Limitations

................................ ................................ ................................ ............... 9

D. 91.7(a): Civil Aircraft Airworth iness

................................ ................................ ....... 9

E. 91.9(b)(2): Civil Aircraft Flight Manual in the Aircraft and 91.203(a) and (b): Carrying Civil Aircraft Certification and Registration

................................ ... 10

F. 91.103: Preflight Action

................................ ................................ ......................... 11

G. 91.109(a): Flight Instruction

................................ ................................ .................. 11

H. 91.119(c): Minimum Safe Altitudes Over Other Than Congested Areas

.............. 12

I. 91.121: Altimeter Settings

................................ ................................ ..................... 12

J. 91.151(a ): Fuel Requirements for Flight in VFR Conditions

................................ 13

VI. D RUG AND A LCOHOL P ROGRAM

................................ ................................ ......................... 14

VII. P UBLIC I NTEREST

................................ ................................ ................................ ................ 14

VIII. P RIVACY

................................ ................................ ................................ ............................. 14

IX. F EDERA L R EGISTER S UMMARY

................................ ................................ ........................... 14

X. C ONCLUSION

................................ ................................ ................................ ....................... 14U.S. Department of Transportation August 6, 2015 Page 3 Salans FMC SNR Denton McKenna Long
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I. B ACKGROUND & D ESCRIPTION OF P ETITIONER

Auto

- Owners is the largest property and casualty insurance company domiciled in Michigan. Auto

- Owners has underwrit ing, marketing and claims offices throughout the United States, including Michigan, Alabama , Arizona, Arkansas

, Colorado , Florida, Georgia

, Idaho,
Iowa

, Indiana

, Illinois

, Kansas, Kentucky

, Minnesota , Mi ssouri

, Nebraska, North Carolina

, North Dakota

, Ohio

, Pennsylvania

, South Carolina

, South Dakota, Tennessee

, Utah, Virginia

, and Wisconsin

.

Auto

- Owners ’ success evolves from its loyal agents, policyholders and associates. The

c ompanies are represented by more than 6,200 independent agencies, selling per sonal and commercial property/casualty and life, health and annuity insurance in 26 states. Total associates number more than 4,200.

Auto

- Owners property and casualty companies have the highest possible ratings from A.M. Best Company, A++ (Superior), and the Auto

- Owners Life Insurance Company is rated A+ (Superior). The companies are also rated very highly in ratings assigned by other nationally recognized independent rating authorities.

In accordance with 14 C.F.R. § 11.81(a), AOIC provides the followi ng information in support of its Petition for Exemption.

The contact information for Petitioner is as follows:

Sloan Banfield
Auto

- Owners Insurance Company 6101 Anacapri Blvd. Lansing, MI 48917

II. D ESCRIPTION OF P ROPOSED O PERATION

AOIC seeks an exemp tion pursuant to Section 333 of the Reform Act to use the DJI

Phantom series of UAS and the 3D Robotics Solo for aerial data collection in support of its insurance business. For example, AOIC will utilize the vehicles for underwriting, claims adjustment

, Loss Control, and in assessing damage after a catastrophic occurrence

.

AOIC is committed to maintaining the highest standards of flight safety. All UAS operations will be performed in accordance with the accompanying AOIC operating documents,

and in accordance with the requirements of an applicable C ertificate of Authorization ("C OA ")

. Among other things, and as detailed in the operating documents, all UAS operations will occur in uncontrolled airspace, within visual line

- of

- sight (VLOS) of the pilot and visual observer, andU.S. Department of Transportation August 6, 2015 Page 4 Salans FMC SNR Denton McKenna Long
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will be limited to daytime VFR conditions. Moreover, AOIC ' s operating documents incorporate redundant safeguards to enhance safety. The proposed operations in this Petition for Exemption are not new or novel to the FAA.

The FAA has previously issued grants of exemption to use small UAS for aerial data collection in support of similar inspection, survey and aerial imaging activities: See e.g.

,

Exemption No. 11 273 to AIG for insurance underwriting and inspection (Docket No.

FAA

- 2 01 4

- 0 913 );

Exemption No. 11 293 to Erie Insurance for insurance underwriting and claims adjustment (Docket No. FAA

- 201 4

- 06 92 );

The low

- risk UAS operations proposed by AOIC in this Petition for Exemption fall squarely within the category of aerial data co llection that has been subject to previous approval.

III. R ELEVANT S TATUTORY A UTHORITY

This Petition for Exemption is submitted pursuant to Section 333(a) through (c) of the Reform Act. Congress has directed the FAA "to safely accelerate the integration of c ivil unmanned aircraft systems into the national airspace system." Pursuant to Section 333 of the Reform Act, the FAA Administrator is to permit unmanned aircraft systems to operate in the National Airspace System ( NAS ) where it is safe to do so based on t he following considerations:

 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 the visual line of sight of the operator.

Additionally, the FAA Administrator has general authority to grant exemptions from the agency's safety regulations and minimum standards when the Administrator decides a requested exemption is in the public interest. See 49 U.S.C. § 106(f) (defining the authority of the

Adminis trator); 49 U.S.C. § 44701(f) (permitting exemptions from §§ 44701(a), (b) and §§ 44702

– 44716, et seq. ). A party requesting an exemption must explain the reasons why the exemption: (1) would benefit the public as a whole, and (2) would not adversely affe ct safety (or how it would provide a level of safety at least equal to the existing rules). See 14 C.F.R. § 11.81 (petitions for exemption).U.S. Department of Transportation August 6, 2015 Page 5 Salans FMC SNR Denton McKenna Long
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IV. AOIC ' S P ROPOSED UAS O PERATIONS M EET THE R EQUIREMENTS OF S ECTION 333 OF

THE R EFORM A CT

AOIC 's proposed operations in this Petition for Exemption qualify for expedited approval under Section 333 of the Reform Act, as each of the statutory criteria and relevant factors are satisfied and the FAA has previously issued grants of exemption in circumstances similar to those

pr esented in this Petition for Exemption.

A. Approval is Warranted Based on the UAS's Size, Weight, Speed, and Operational Capability

The DJI Phantom series of vehicles, including the Phantom II, the Phantom II Vision+, and

Phantom III all meet the requiremen ts of Section 333 of the Reform Act due to their weight, speed and operational capabilities. They are battery operated aircraft with a gross take

- off weight of under 5 pounds

. They have maximum speeds of under 3 0 knots, and a maximum rate of climb of 5 me ters per second. The largest of the vehicles have a span of under .6 meters

.

The vehicl es employ geofencing as well as automatic systems for responding to a lost link or loss of positive control, including a return to home feature. The FAA has already ruled that the DJI

Phantom series meets all of the criteria set forth in Section 333 of the FAA Modernization and

Reform Act of 2012. See , Exemption No. 11860, Docket No. FAA

- 2015

- 1127. Therefore , based on the foregoing, AOIC requests permission to oper ate the DJI Phantom II, II Vision+, and III.

In addition, 3DR Solo also meets the requirements of the Reform Act. See Exemption No. 11954, FAA Docket No. 2015

- 1402. The 3DR Solo is a light weight battery powered quadcopter which incorporates a number o f advanced safety features, including:

 A choice between automatic and manual take

- off and landing.

 A sophisticated system of computer assisted navigation and flight management.

 Altitude is determined based on a combination of barometers and inertial navi gation.

 The ability to both return to home or return to a predetermined point that has been preselected as free from obstructions or hazards.

 The ability to set custom battery charge warning levels and to set either an automatic return
to home or return to a preset location in the event of a low battery.

 Tactile feedback in the controller when warnings are given to alert the pilot to certain conditions such as low battery.U.S. Department of Transportation August 6, 2015 Page 6 Salans FMC SNR Denton McKenna Long
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 Programmable geo

- fencing capabilities allowing the creation of a virtual “safety fence.”

The Solo weighs less than 5 pounds fully loaded, has a maximum speed of 25 meters per second, and has a maximum ascent and decent of less than 5 meters per second. Based on the foregoing, the 3DR Solo is a suitable vehicle for operations under S ection 333 of the Reform Act

.

B. Approval is Warranted Based on the Operational Restrictions in AOIC ' s Operating Documents

The operating documents for the selected UAS contain all the procedures and limitations necessary to safely and successfully perform the proposed operations. To expedite the FAA's safety
assessment of AOIC ' s proposed UAS operations, AOIC has tailored its operating documents to comply with the conditions and limitations imposed on similarly situated petitioners seeking to use
small UAS for aerial data collection. See e.g., Grant of Exemption No. 11761 issued to Dronair Solutions, Docket No. FAA

- 2015

- 0648. In particular, the operating documents contain systems and procedures to permit AOIC to comply with the conditions and limitations in the FAA's Grant of Exemption. Id.

V. R EGULATIONS F ROM W HICH E XEMPTION I S S OUGHT

The Federal Aviation Act expressly grants the FAA the authority to issue exemptions. This statutory authority, by its terms, includes exempting civil aircraft, as the term is d efined under § 40101 of the Act, including UAS, from its safety regulations and minimum standards when the Administrator decides a requested exemption is in the public interest. 1

AOIC seeks an exemption from several interrelated provisions of 14 C.F.R. Pa rts 45, 61 and 91 for purposes of conducting the requested operations using small UAS, including:

FAR Description

91.9(c); 45.23(b) and 45.27(a) Aircraft Marking and Identification Requirements

91.405(a); 91.407(a)(1); 91.409(a)(1) and (2); 91.417(a) an d (b) Maintenance and Inspection Requirements

61.23(a) and (c); 61.113; 61.101(e)(4) and (5); 61.315 Private, Recreational and Sport Pilot Medical Certificate Privileges and Limitations

1 See 49 U.S.C. § 44701(f) (authorizing the grant of exemptions from requirements of regulations prescribed pursuant to Sections 44701(a ) and (b) and Sections 44702

- 44716).U.S. Department of Transportation August 6, 2015 Page 7 Salans FMC SNR Denton McKenna Long
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91.7(a) Civil Aircraft Airworthiness

91.9(b)(2); 91.203(a) and (b) Carrying Aircraft Flight Manual, Certification and Registration in

the Aircraft

91.103 Preflight Action

91.109(a) Flight Instruction

91.119(c) Minimum Safe Altitudes Over Other than Congested Areas

91.121 Altimeter Settings

91.151(a) Fuel Requi rements for Flight in VFR Conditions

Listed below are the specific sections of 14 C.F.R. for which an exemption is sought, and the operating procedures and safeguards that Petitioner has established which will ensure a level of safety better than or equa l to the rules from which exemption is sought. 2

A. 91.9(c), 45.23(b) and 45.27(a): Aircraft Marking and Identification Requirements

AOIC seeks an exemption from the aircraft marking and identification requirements contained in 14 C.F.R. §§ 91.9(c), 45.23(b) and 45.27(a).

● 14 C.F.R. § 91.9(c), Civil Aircraft Flight Manual, Marking and Placard Requirements, provides that:

No person may operate a U.S.

- registered civil aircraft unless that aircraft is identified in accordance with Part 45 of this chapter.

● 14 C.F.R . § 45.23(b), Markings of the Aircraft, states:

When marks include only the Roman capital letter "N" and the registration number is displayed on limited, restricted or light

- sport category aircraft or experimental or provisionally certificated aircraft, th e operator must also display on that aircraft near each entrance to the cabin, cockpit, or pilot station, in letters not less than 2 inches

2 See 14 C.F.R. § 11.81(e), which requires a petition for exemption to include:

The reasons why granting the exemption would not adversely affect safety, or how the exemption would provide a level of safety at least e qual to that provided by the rule from which you seek exemption.U.S. Department of Transportation August 6, 2015 Page 8 Salans FMC SNR Denton McKenna Long
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nor more than 6 inches high, the words "limited," "restricted," "light

- sport, "experimental," or "provisional," as a pplicable.

● 14 C.F.R. § 45.27(a), Rotorcraft, states:

Each operator of a rotorcraft must display on that rotorcraft horizontally on both surfaces of the cabin, fuselage, boom, or tail the marks required by § 45.23.

In prior grants of exemption under Sectio n 333 of the Reform Act, the FAA determined that exemption from these requirements was warranted provided that the aircraft "have identification (N

Number) markings in accordance with 14 C.F.R Part 45, Subpart C if the markings are as large as practicable. " 3 All UAS flown by AOIC will bear N

- number markings that are as large as practicable in accordance with 14 C.F.R. Part 45, Subpart C. 4

B. 91.405(a), 91.407(a)(1), 91.409(a)(1) and (2); 91.417(a) and (b): Maintenance Inspections

AOIC seeks an exemption fro m the maintenance inspection requirements contained in 14 C.F.R. § 91.405(a), 91.407(a)(1), 91.409(a)(1) and (2); 91.417(a) and (b). These regulations specify maintenance and inspection standards in reference to 14 C.F.R. Part 43. 5 An exemption from these regulations is needed because Part 43 and these sections only apply to aircraft with an airworthiness certificate, which the UAS to be operated under this grant of exemption will not have.

An equivalent level of safety will be achieved because maintenanc e and inspections will be performed in accordance with the operating documents and any required manufacturer Safety or Service Bulletins. Further, as required by the operating documents, the Pilot in Command (PIC) will conduct a pre

- flight inspection of th e UAS and all associated equipment to account for all discrepancies and/or inoperable components. Maintenance will be performed and verified to address any conditions potentially affecting safe operation of the UAS and no flights will occur unless, and

unt il, all flight critical components of the UAS have been found to be airworthy and in a condition safe for operation. A functional test flight will be conducted following the replacement of any flight

critical components. As required by the operating docume nts, the PIC who conducts the functional test flight will make an entry in the UAS aircraft records of the flight.

The operating documents also include requirements to follow the UAS manufacturer’s maintenance, overhaul, replacement, inspection, and lif e limit requirements for the aircraft and aircraft components. Moreover, the operating documents also include procedures to document and maintain a record of the UAS maintenance, preventative maintenance, alterations, status of

3 FAA Docket No. FAA

- 2014

- 0352.

4 See, e.g., FAA Docket No. FAA

- 2014

- 0352, at 14.

5 See, e.g., 14 C.F.R. § 91.405(a) (stating that each owner or operator of an aircraft "[s]hall have the air craft inspected as prescribed in subpart E of this part and shall between required inspections ...have discrepancies repaired as prescribed in part 43 of this chapter.").U.S. Department of Transportation August 6, 2015 Page 9 Salans FMC SNR Denton McKenna Long
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replacement/overhaul compone nt parts, and the total time in service of Petitioner's UAS. As a whole, the maintenance and inspection procedures required by Petitioner's operating documents ensure that an equivalent or higher level of safety will be achieved.

C. 61.23(a) and (c), 61.113, 61.101(e)(4) and (5), 61.315: Private, Recreational and Sport Pilot Medical Certificate, Privileges and Limitations

AOIC seeks exemption from these sections, which restricts private, recreational or sport pilot certificate holders from flying aircraft for compensation or hire, and would also require a Class II Medical Certificate. The purpose of Part 61 is to ensure that the skill and competency of any PIC matches the airspace in which the PIC will be operating, as well as requiring certifications if the

p rivate pilot is carrying passengers or cargo for hire. In this case, while the UAS will be operated as part of a commercial operation, it carries neither passengers nor cargo.

In the Grant of Exemption No. 11062 to Astraeus Aerial 6 , the FAA determined t hat the unique characteristics of UAS operation outside of controlled airspace did not warrant the additional cost and restrictions attendant with requiring the PIC to have a Commercial Pilot Certificate and

Class II Medical Certificate. The fulfillment of the additional requirements for a private pilot to become qualified as a commercial pilot would not lead to any additional safety benefits when UAS operations are involved.

More recently, the FAA determined that holders of recreational and sport pilot certificates would also have adequate aeronautical knowledge to pilot a UAS. Accordingly, because these individuals would also be subject to security screening by the Department of Homeland Security (DHS), the FAA determined that holders of recreational a nd sport pilot certificates would be qualified to serve as the PIC for UAS operations. 7

D. 91.7(a): Civil Aircraft Airworthiness

Inasmuch as there will be no airworthiness certificate issued for the UAS, AOIC seeks an exemption from 14 C.F.R. § 91.7(a), w hich requires that a civil aircraft be in an airworthy condition to be operated. While Petitioner’s UAS will not have an airworthiness certificate, the FAA has determined that for the purposes of this exemption the pilot may determine the aircraft is in an airworthy condition prior to flight. The operating documents contain procedures, which allow the PIC to determine whether the aircraft is in a condition safe for flight, and an exemption from § 91.7(a) is therefore warranted.

6 FAA Docket No. FAA

- 2014

- 0352.

7 See Grant of Exemption No. 11213 to Aeryon Labs, Inc. (Docket No. FAA

- 2014

- 0642 at pgs. 8

- 9).U.S. Department of Transportation August 6, 2015 Page 10 Salans FMC SNR Denton McKenna Long
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E. 91.9(b)(2): Civil Aircraf t Flight Manual in the Aircraft and 91.203(a) and (b): Carrying Civil Aircraft Certification and Registration

Title 14 C.F.R. § 91.9(b)(2) and § 91.203(a) and (b) require the operator to carry
airworthiness documents and other aircraft manuals onboard the aircraft.

Pursuant to 14 C.F.R. § 91.9(b)(2):
(b) No person may operate a U.S.

- registered civil aircraft

–

... (2) For which an Airplane or Rotorcraft Flight Manual is required by § 21.5 of this chapter, unless there is available in the aircraft a current a pproved Airplane or Rotorcraft Flight Manual, approved manual material, markings, and placards, or any
combination thereof.

Pursuant to 14 C.F.R. § 91.203(a) and (b):

(a) Except as provided in § 91.715, no person may operate a civil aircraft unless it
has within it the following:

(1) An appropriate and current airworthiness certificate...

(b) No person may operate a civil aircraft unless the airworthiness certificate required by paragraph (a) of this section or a special flight authorization issued under § 91 .715 is displayed at the cabin or cockpit entrance so that it is legible to passengers or crew.

Given the small size and configuration of the UAS, it would be impossible to keep
airworthiness documents and other aircraft manuals on board the UAS because th ere is simply no room and the UAS has no cabin or cockpit.

In an FAA Office of Chief Counsel's Opinion dated August 8, 2014, and prepared by Dean E. Griffith, Attorney, AGC

- 220, it was acknowledged that the intent of 14 C.F.R. 91.9(b) and 91.203(a) and (b ) is met if the pilot of the unmanned aircraft has access to the UAS flight manual, registration certificate, and other required documents from the ground control station from which he or she is operating the aircraft. 8 As this FAA Office of Chief Counsel Opinion clarifies, the intent of the rule is to ensure the pilot has access to these key documents during flight. Therefore, an equivalent level

8 Memorandum from Mark Bury, FAA Assistant Chief Counsel for International Law, Legislation and Regulation, to John Duncan, FAA Flight Standards Service (Aug. 8, 2014); see also Docket No. FAA

- 2014

- 0352 at 16

- 18.U.S. Department of Transportation August 6, 201 5 Page 11 Salans FMC SNR Denton McKenna Long
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of safety will be achieved by ensuring that the pilot has access to the documents at the ground
control station from which he or she is piloting the UAS. 9

F. 91.103: Preflight Action

Petitioner seeks an exemption from 14 C.F.R. § 91.103, which requires a PIC to become familiar with specific information before each flight, including information contained in the FAA

approved Flight Manual on board the aircraft. While the PIC will be familiar with all information necessary to safely conduct the flight, an exemption is requested to the extent that an FAA

- approved Flight Manual is required.

Adherence to the requirements in the operating documents will ensure that the UAS is in an airworthy condition prior to flight. The PIC will perform a series of checklists designed to identify any defects or inoperable components, which cover pre

- flight, take

- off, landing and post

- fli ght procedures. The PIC will also be required to review weather, flight requirements, battery charge, landing and takeoff distance, UA performance data, and contingency landing areas

— before initiation of flight. Petitioner's operating documents will be kep t at the ground control station and will be accessible to the PIC at all times while operating the UAS.

G. 91.109(a): Flight Instruction

Petitioner seeks an exemption from 14 C.F.R. § 91.109(a), which provides in pertinent part that "[n]o person may operate a civil aircraft (except a manned free balloon) that is being used for flight instruction unless that aircraft has fully functioning dual controls." UAS and remotely piloted aircraft, by their design, do not have functional dual controls. Instead, flight co ntrol is accomplished through the use of a device that communicates with the aircraft via radio communications. Accordingly, an exemption will be required for the flight instruction requirements of 14 C.F.R. § 91.109(a).

Given the size and speed of the UA S that Petitioner intends to use, an equivalent level of safe training can still be achieved without dual controls because no pilot or passengers are aboard the UAS, and as required by the operating documents, all persons will be a safe distance away in th e event that the UAS experiences any difficulties during flight instruction. Moreover, all flight training will be conducted in controlled and sterile environment. As a whole, the procedures provided for in the operating documents ensure that UAS flight in struction can be performed safely.

9 See also Exemption No. 11213 to Aeryon Labs, Inc. at pg. 11:

The petitioner requested relief from 14 CFR § 91.9(b)(2): Civil aircraft flight manual, marking, and placard requirements and § 91.203(a) and (b): Civil aircraft: Certifications required. The FA A has previously determined that relief from these sections is not necessary. See Exemption No. 11062. Relevant materials may be kept in a location accessible to the PIC in compliance with the regulations.U.S. Department of Transportation August 6, 2015 Page 12 Salans FMC SNR Denton McKenna Long
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H. 91.119(c): Minimum Safe Altitudes Over Other Than Congested Areas

AOIC requests an exemption from the minimum safe altitude requirements of 14 C.F.R. § 91.119(c). 10 Section 91.119 prescribes the minimum safe altitudes unde r which aircraft may not operate, including 500 feet above the surface and away from any person, vessel, vehicle, or structure
in non

- congested areas. See 14 C.F.R. § 91.119(c).
An exemption is required because the proposed UAS operations will normally ne ed to occur below 400 feet AGL. Additionally, due to the nature of the proposed operations, the PIC and/or Observers may need to be less than 500 feet away from the UAS. Compared to flight operations with rotorcraft weighing far more than the maximum weigh ts proposed herein, and given the lack of flammable fuel with the UAS, any risk associated with these operations is far less than those that presently exist with conventional aircraft.

An equivalent level of safety will be achieved given the size, weight, and speed of the UAS, as well the controlled location where the operations will occur. In order to avoid any risk to manned aircraft, flight operations will be restricted to below 400 feet AGL. As set forth in the operating documents, the UAS will be oper ated in a controlled environment, and all flights will occur at a lateral distance of at least 500 feet from nonparticipating persons, unless that person is in a position where he or she is shielded from the UAS and any possible debris resulting from UAS f ailure. Procedures will be in place to ensure flight operations can be safely terminated if a nonparticipating person within 500 feet of the UAS leaves a shielded position. Further, UAS operations will occur at least 500 feet away from vehicles or structu res unless the property owner/controller has granted permission and the PIC has made a safety assessment of the risk of operating closer to those objects, and operations near the PIC or Observer will not present an undue hazard per § 91.119(a).
Adherence t o these restrictions in AOIC ' s operating documents will ensure the proposed operations can be conducted without compromising safety to persons or property on the ground.

I. 91.121: Altimeter Settings

To the extent necessary for AOIC to conduct the proposed operations, Petitioner requests an exemption from 14 C.F.R. § 91.121, which requires a person operating an aircraft to maintain cruising altitude or flight level by reference to an altimeter that is set to the elevation of the departure airport or baromet ric pressure.

The FAA has stated that an equivalent level of safety to the requirements of 14 C.F.R. § 91.121 can be achieved in circumstances where: (1) the UAS will be operated 400 feet AGL or below, (2) within VLOS, (3) where GPS based altitude informa tion is relayed in real time to the

10 Relief from § 91.119(a) will not be necessary b ecause Petitioner will be able to perform an emergency landing without undue hazard to persons or property on the ground in the event of a failure. Petitioner's proposed UAS operations will not occur over congested areas, and therefore an exemption from § 91.119(b) will not be necessary. See e.g ., Grant of Exemption No. 11157 to Slugwear, Inc., dba Likeonatree Aerial at pg. 15 (Docket No. FAA

- 2014

- 0534 ).U.S. Department of Transportation August 6, 2015 Page 13 Salans FMC SNR Denton McKenna Long
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operator at a ground

- based on

- screen display and, (4) where prior to each flight, a zero altitude initiation point is established for the PIC to confirm accuracy of the onboard GPS.

The UAS that Petitioner intends to use for performing the proposed operations meet all these operational characteristics. Moreover, the operating documents require the PIC to calibrate the aircraft's GPS compass prior to each flight operation. As the FAA has determined in circumstances

similar to this Petition for Exemption, Petitioner's UAS and the safety mitigation procedures contained in the operating documents, ensure that an equivalent level of safety will be achieved, and a grant of exemption to the requirements of § 191.121 is therefore appropriate. 11

J. 91.151(a): Fuel Requirements for Flight in VFR Conditions

AOIC requests an exemption from 14 C.F.R. § 91.151(a)'s fuel requirements for flight in Visual Flight Rules (VFR) conditions. Section 91.151 states:

(a) No person may begin a flight in an airplane under VFR conditions unless (considering wind and forecast weather conditions) there is enough fuel to fly to the first point of intended landing and, assuming normal cruising speed

–
(1) During the day, to fly after that for at least 30 mi nutes; or

(2) At night, to fly after that for at least 45 minutes.

Here, the technological limitations on UAS battery power means that no meaningful flight operations can be conducted while still maintaining a 30

- minute battery reserve. An exemption from

t he fuel requirements of 14 C.F.R. § 91.151(a) is therefore required.

The FAA has previously granted relief from the fuel requirements of § 91.151(a) for flight in daytime VFR conditions in circumstances similar to those presented in this Petition for Exem ption. 12 In Exemption No. 11213 to Aeryon Labs, Inc. 13 , the FAA determined that a requirements prohibiting the PIC from beginning a UAS flight unless (considering wind and forecast weather conditions) there was enough available power for UAS to operate for t he intended operational time and to operate after that for at least five minutes or with the reserve power recommended by the manufacturer if greater, would ensure an equivalent level of safety to the fuel requirements of § 91.151(a). 14 Petitioner's operati ng documents impose this same requirements and an exemption from § 91.151(a)'s fuel requirements for flight in VFR conditions is therefore appropriate.

12 See e.g., Exemption Nos. 8811, 10808, and 10673.

13 Docket No. FAA

- 2014

- 0642.

14 Exemption No. 11213 at pg. 12.U.S. Department of Transportation August 6, 2015 Page 14 Salans FMC SNR Denton McKenna Long
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VI. D RUG AND A LCOHOL P ROGRAM

AOIC has established policies to ensure that no person may participate in UAS flight operations if they are under the influence of alcohol or any drug.

VII. P UBLIC I NTEREST

The public interest will be served by granting AOIC ' s Petition for Exemption. Congress has established a national policy that favors early integration of UAS into the NAS in controlled, safe working environments such as those proposed in this Petition. Granting this Petition for Exemption helps fulfill Congress' goal in passing Section 333(a) through (c) of the Reform Act

— the FAA
Administrator's assessment of whether certain UAS may operate safely in the NAS before completion of the statutorily required rulemaking.

The proposed UAS operations in this Petition for Exemption significantly improve safety and reduce risk by alleviating the public's exposure to danger associated with traditional aerial data collection methods, namely, full size fixed

- wing aircraft and rotorcraft. The UAS that AOIC intends

to use are light weight, are battery powered, and create no emissions. Moreover, in the unlikely event that one of Petitioner's UAS crash, there is no fuel to ignite and explode. Any accident involving Petitioner's small lightweight UAS will present significantly less danger to the pilot and other individuals on the ground than one involving a full s ize helicopter.

VIII. P RIVACY

The proposed operations will be conducted in accordance with applicable federal, state, or local laws regarding privacy. AOIC will not conduct flight operations over property that it does not own or control without the prior conse nt and knowledge of the property owner.

IX. F EDERAL R EGISTER S UMMARY

Pursuant to 14 C.F.R. Part 11, the following summary is provided for publication in the
F EDERAL R EGISTER , should it be determined that publication is needed:

Petitioner seeks an exemptio n from the following rules in Title 14 of the Code of Federal Regulations:

45.23(b); 45.27(a); 61.23(a) and (c); 61.113; 61.101(e)(4) and (5); 61.315; 91.7(a); 91.9(b)(2); 91.9(c); 91.103; 91.109(a); 91.119(b); 91.121; 91.151(a); 91.203 (a) & (b); 91.405(a ); 91.407(a)(1); 91.409(a)(1) & (2); 91.417 (a) & (b).

The exemption will enhance safety by reducing risk to the general public and property owners from the substantial hazards associated with using conventional fixed

- wing aircraft or
rotorcraft for a erial data collection.

X. C ONCLUSION The proposed operations in this Petition for Exemption satisfy the criteria articulated in Section 333 of the Reform Act and the FAA has issued grants of exemption in circumstances similarU.S. Department of Transportation August 6, 2015 Page 15 Salans FMC SNR Denton McKenna Long
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in all respects to those present ed by AOIC in this Petition for Exemption. In consideration of the foregoing, this Petition for Exemption provides the FAA with all the necessary justification for granting the requested exemptions allowing AOIC to operate small UAS for the purpose of aeri al
data collection.

We thank you for your prompt consideration of our requested exemptions. Should you have any questions, or if you need additional information to support the requested exemptions, please do
not hesitate to contact us

.

Very Truly Yours,

Mark E. McKinnon Counsel for Auto Owners Insurance Company

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