February 9th 2016

U.S. Dept. ofTransportation, Docket Operations West Building Ground Floor, Room w12-140 1200 NewJerseyAvenue, SE., Washington, DC20590 Bluewater360 5605-7 Old Porter Rd. Portage, IN 46368

VIA FEDERAL DOCUMENT MANAGEMENT SYSTEM

Re: Exemption Request under Section 333 ofthe FAA Reform Act and Part 11 of the Federal Aviation Regulations Dear Sir or Madam: Pursuantto Section 333 ofthe FAA Modernization and Reform Act of2012 (the "Reform Act") and 14 C.F.R. Part 11, Bluewater360, seeks an exemption from Federal Aviation Regulations ("FARs") detailed belowforthe following described UnmannedAerial System called in this application the ME System, which includes an UnmannedAircraft (UA) and ground stationbased equipment and crew: THE UNMANNEDAIRCRAFT (UA):

- A lightweight (20 lb gross weight with all on-board equipment), manufactured by 3DR; Solo that includes the following equipment in flight; -An on-board flight computerwith GPS navigation and location abilitythat receives signals for flight controls from a ground-based transmitter/controller; -An on-board camera capable of capturing imagery in the form offull color, high definition still photos and video; -An on-board telemetry system that delivers flight datafrom the on-board flight computerto the on-board radio transmitter including altitude AGL, horizontal and vertical speed, compass direction offlight and direction backto its launch site; -A2.4GHz on-board radio transmitterthat transmits livevideo from the on-board camera plus allthe flight datafrom the telemetry system described above; THE GROUD STATION -BASED PART OFTHE SYSTEM:
-APilot in Command (PIC) in operational control of a flight operation from beginning to end and who controls the UAwhile in the air; -A2.4GHz radio transmitter/controller operated bythe PIC to control the UAwhile in flight; -Aradio receiver receiving livevideo and flight data from the on-board camera and computer projects it all together onto a screen for the PIC to view during flight; -AVisual Observer (VO) is a person who provides a second pair of eyes to visually track the UA while in flight.The requested exemption would support an application for a commercial Certificate of Authorization to usethe above described ME System for aerial mapping, surveying, inspections, data acquisition for civil engineering/government agencies, photography, cinematography, emergency management damage assessment and agricultural neveroperating over persons notdirectly involved with the ME system. The UA, powered by batteries, is smaller, lighter and more maneuverablethan larger aircraft running on combustible fuel, it operates at lower altitudes with no people on board and will thereby reduce current risk levels and thereby enhance safety and diminish the likelihood of death or serious bodily injury. With a small payload and maximum flight time of only 18 minutes, this is offers little or no riskto national security.
Low level oblique photos and video from several angles are far more effective than groundbased imageryfor displaying the characteristics of large, complex propertieswith several buildings and large trees. The alternative could be to charter a full-sized helicopterfor this purpose, which has proven more costlythan many potential clients are able to afford. The benefits of reduced cost and improved quality of presentation from the UAwill bevaluable to and benefit many buyers and sellers of real property and marine property. Additionally, we request thatwe be allowed to use our system to benefit first responders nearby who might require assistance, including fire fighters, the police, the sheriff, et al., while remaining subjectto all limitations cited in this application as we do so. The ME System will be operated in the field with both a PIC and a VO in accordance with FAA Policy N 8900.227 Section 14 "Operational Requirements for UAS

.. and with the following Restrictions: a) Noflight will be madewith a UAGrossweight exceeding 55 pounds; b)All operations must occur in FAA Class G airspace at no morethan 400

## tt AGL, at an airspeed of no morethan 50 knots and nofurtherthan 3/4 NM from the PIC; c) All operations must utilize a visual observer (VO). The VO and PIC must be able to communicate byvoice at all times during a flight operation; d) Operations will be restricted to flights over propertywith the permission ofthe property owner; e) The PIC must have accumulated and logged, in a manner consistentwith 14 CFR 

### § 61.51 (b), a minimum of 100flight cycles and 25 hours of total time as a UA rotorcraft pilot and at least ten hou.rs logged as a UApilotwith a similar UAtype; f) All required permitswill be obtained from state and local government priorto operation; g) The ME System will not be operated over densely populated areas; h) The ME System will not be operated at airshows; i) The ME System will not be operated over any open-air assemblyof people; j)The ME System will not be operated over heavily trafficked roads; k) Operations will be restricted to day only and weather conditions equivalentto Vfft; I) The PIC will briefthe VO and property owner aboutthe operation and risk before the firstflight at each new location; m) Noflight may be made without a Pre-Flight Inspection bythe PIC before each operation to ascertain thatthe UAis in a condition safe for flight (see AppendixA).The PIC and VO will meet the requirements outlined in FAA Policy N 8900.227 Section 16 personnel Qualifications. Additionally, the PIC and VO will perform maintenance on the system and will complete a course of maintenance instruction as part oftheir initial training.
We submitthatthe combination ofthe UA's lightweight, flight performance and ability, fully qualified flight crew and strict operation underthe guidelines established in 8900.227, and under all ofthe Restrictions (a) through (n) listed above, the FAAcan have full confidence that the operation will have an equivalent orgreater level of safetythan manned aircraft performingthe same mission. The name and contact information ofthe applicant are: Bluewater360 Phone: 219-545-8282 Email:jwschmoeger@hotmail.com The regulations from which the exemption is requested are listed below. Beside each regulation number isthe page ofthe attachedAddendum upon which each may

### be found togetherwith our proposed equivalent level of safetyfor each regulation:

- 14CFR Part 21
.................................Addendum Page 1

- 14CFR 91.203
.................................Addendum Page 1

- 14CFR 45.23, 45.29
..........................Addendum Page 2

- 14CFR 91 .9
....................................Addendum Page 2

- 14CFR 61.113, 61.133

.......................Addendum Page 2

- 14CFR 91.109, 91.119, 91.121

..............Addendum Page 3

- 14CFR 91 .151
.................................Addendum Page 3

- 14CFR Subpart E (91.401

- 91.417)

......Addendum Page 3 -FAAPolicy 8900.227 Paragraph 16(c)(4) and Paragraph 16(e)(1)

...Addendum 1 We are prepared to modify or amend any part of this request to satisfy the need for an equivalent level of safety. Please contact us at anytime if you require additional information or clarification. We lookforward to working with your office. Sincerely,



# 9~&-c:--- Bluewater360, John Schmoeger Addendum containing Exemption Requests and Equivalent Level ofSafetyAppendixA- Flight Manual's Appendix B - Owner's Manual for UAADDENDUM EXEMPTION REQUESTSAND EQUIVALENT LEVELOF SAFETY Bluewater360 requests an exemption from the following regulations as well as any additional regulations that maytechnically applyto the operation ofthe ME System:
14CFR Part 21, Subpart H: Airworthiness Certificates This part establishes the procedures for the issuance of an airworthiness certificate. While the FAA continues to workto develop airworthiness standards for UnmannedAerial Systems, we request an experimental certificate be issued for the ME System under either or both ofthe following provisions: 21.191 Experimental certificates. Experimental certificates are issued for the following purposes: (a) Research and development. Testing new aircraft design concepts, newaircraft equipment, new aircraft installations, new aircraft operating techniques, or new usesfor aircraft. (b) Showing compliance with regulations. Conducting flight tests and other operationsto show compliance with the airworthiness regulations including flights to showcompliance for issuance oftype and supplemental type certificates, flights to substantiate major design changes, and flights to show compliance with the function and reliability requirements ofthe regulations. Sincethe experimental certificate can be used for commercial purposes such as market surveys, sales demonstrations, and customer crewtraining, we would expect that an experimental certificate would permit ourcommercial purpose as well. The aircraft will not carry persons or property, will not carryfuel, and will onlyfly under strict operational requirements. Combined with the UA's light weight, being constructed primarilyof carbon fiber and plastic, we propose that the UAwill be at least as safe, if not safer, than a conventionally certificated aircraft performing the same mission. If an experimental airworthinesscertificate is not appropriatefor this application, then we request an exemption of 14 CFR Part 21 , Subpart H, and the requirement for an airworthiness certificate in general, citing the equivalent level of safety outlined in the previous paragraph.
14 CFR 91.203(a) & (b) Civil aircraft: Certifications required. The regulation provides that an airworthiness certificate, with the registration number assigned to the aircraft and a registration certificate must be aboard the aircraft. Additionally, subparagraph (b) provides thatthe airworthiness certificate be "displayed atthe cabin orcockpit entrance so that it is legible to passengers or crew."At a maximum gross weight of 6.5 pounds, the UA is too smaU to carry documentation, does not have an entrance, and is notcapable of carrying passengers or crew. To obtain an equivalent level of safety and meetthe intent of 91.203, we propose that documents deemed appropriate forthis aircraft by the FAAwill be co-located with the crew at the ground control station and available for inspection upon request. In orderto identifythe aircraft, we propose thatthe information found on airworthiness and registration certificates be permanently affixed to the aircraftvia placard containing the following information plus the word "EXPERIMENTAL" to satisfythe requirement of 14 CFR 45.23, which follows immediately afterthe proposed placard description below:AppendixA EXPERIMENTAL Manufacturer: DJIInnovations, Inc. 950 E BaselineAve. Ste. 210 Apache JunctionAZ 85119 Models: 3DR Solo
14 CFR 45.23 Display of marks; general and45.29 Size of marks. These regulations provide that each aircraft must display "N" and the aircraft's registration number in letters at least 3 inches high.Additionally, the aircraft must display the word "EXPERIMENTAL" in letters at least 2 inches high nearthe entrance to the cabin, cockpit, or pilot station. The UAdoes not have an entrance in which the word "EXPERIMENTAL" can be placed, and may not have a registration number assigned to it bythe FAA. We propose to achieve an equivalent level ofsafety by including the word "EXPERIMENTAL" in the placard on the top ofthe aircraft, as shown above, where the PIC, VO and others in the vicinity ofthe aircraftwhile it is preparing for launch will be able to see the designation. Additionally, we feel thatthe permanent placard discussed in the previous paragraph will provide the aircraft's registration information at the ground station. Finally, we will display at the ground station a high contrast flag or bannerthat contains the words "UnmannedAircraft Ground Station" in letters 3 inches high or greater. Sincethe aircraft will operate within 3/4 NM ofthe ground station, the banner should bevisible to anyone that observes the aircraft and chooses to investigate its point of origin.
14CFR 91.9 Civil aircraftflight manual, marking, and placard requirements. This regulation provides that no person may operate an aircraft unless a current, approved flight manual is inthe aircraft. We assume that the intent ofthis requirement isto ensure that fUght manual information is available to the aircrewwhile operating the aircraft. We request an exemption to this requirement since the aircraft is not onlytoo small to carry documentation, the documentation would not be availableto the crewduring flight operations. To obtain an equivalent level of safety and meetthe intent of 91.9, we propose that a current, approved UAFlight Manual (AppendixA) mustbe availableto the crew atthe ground station anytime the aircraft is in, or preparing for, flight.
14CFR 61.113 Private pilot privileges and limitations: Pilot in Command and 61.133 Commercial pilot privileges and limitations. The regulation provides that no person that holds a private pilot certificate may act as pilot in command of an aircraft for compensation or hire. Subparagraph (b) allows a private pilotto act as pilot in command of an aircraft in connection with any business or employment if: (1) The flight is only incidental to that business or employment; and (2) The aircraft does not carry passengers or propertyfor compensation or hire. Our proposed operations require that the PIC must either
1. Hold a Sport Pilot Certificate issued bythe FAA, and have logged 25 hours of flight experience in this type of UA, or 2. Meetthe requirements of 8900.227 para 16(c){2)(c) "Operationswithout a pilot certificate" in which the PIC is required to complete "FAAprivate pilot ground instruction" and pass "the FAA Private Pilotwritten examination.'' Since there are currently no means available for the pilot of aUAS to gain the experience in an equivalent category and class in orderto applyfor a commercial pilot's license, we propose to generate an equivalent level of safety by requiring our pilots to complete, at a minimum, FAAcommercial pilot ground instruction and pass the FAA Commercial Pilot written examination in addition to completing the private pilot requirements. Sincethe aircraft cannot carry passengers or property, we feel we meetthe intent of 61.113 Subparagraph (b) even though the intent ofthis application is to conduct a business.
14 CFR 91.109 Flight Instruction; Simulated instrumentflight and certain flight tests The regulation states that "No person may operate a civil aircraft that is being used forflight instruction unless that aircraft has fullyfunctioning dual controls." The ME System ground-based control station consists of a small hand-held radio transmitter and while itdoes not offera second setof "controls", both the studentand instructor can, and will, operate the single set of controls simultaneously. With both student and instructor having "hands-on" the controls during flight, we feel that this technique meets the intent 91.109 and provides an equivalent level of safety.
14CFR 91.119 Minimum safe altitudes: General. The regulation states that oversparselypopulated areas the aircraft cannot be operated closer than 500 feet to any person, vessel, vehicle, orstructure. Since the aircraft will be operating ata maximum of400 feet AGL, we cannot complywith this requirement. In orderto provide an equivalent level ofsafetywe will onlyfly over private property with permission ofthe owner of the property flown over. The aircraft will not be operated over congested areas or over any open air assembly of persons. The property ownerwiil be briefed on the expected route offlight and the associated risks to persons and property on the ground. The aircraft will be operated at a low altitude allowing, if a power unitfails, an emergency landing without undue hazard to persons or property on the surface. Therefore we maintain that duetothe small size ofthe UA, the hazard to persons, vehicles and structures is minimalcompared to manned aircraft, which should be considered in granting the exemption.
14CFR 91.121 Altimeter settings. The regulation requires that aircraft shall maintain cruising altitudesby reference to an altimeter setting availablewithin 100 NM ofthe aircraft. The UAwill always fly below 400feetAGL and will not need to maintain cruising altitudes in orderto prevent conflict with other aircraft. An Above Ground Level altimeter measurement above the takeoff point istransmitted via radio from the UAon-board computerto the display screen held bythe PIC, providing a constantly updated AGL readout.
14CFR 91.151 Fuel requirements for flight in VFR conditions. The regulation providesthat no person may begin a flight in an airplane underday-VFR conditions unlessthere is enough fuel to fly to the first point of intended landing and to fly after thatfor at least 30 minutes. We feel the intention ofthis paragraph isto provide an energy reserve as a safety buffer for delays to landing. The UAis battery operated and the maximum duration of flight from a single battery charge is 18 minuteswith a 20% reserve. Since the aircraft will neverfly more than 314 NM from the point of intended landing, a full battery charge atlaunch will ensurethatwe meetthe reserve energy requirement ofthis paragraph. We request an exemption tothe word "fuel" and askfor an equivalent interpretation with the word "energy".
14 CFR Subpart E (91.401

- 91.417)

- Maintenance, Preventive Maintenance, Alterations The regulation provides that the operator is primarily responsible for maintaining the aircraft in an airworthy condition, including compliance with part 39 and 

### 43. Paragraphs 91.407 and 91 .409 require that the aircraft be "approved for return to service by a person authorized under 43.7" after maintenance and inspection. It is our intention that the PIC perform maintenance and inspection ofthe aircraft and "be authorized to approvethe aircraft for return to service."As provided in the Pre-Flight Checklist in AppendixA, the PIC will ensure thatthe aircraft is in an airworthy condition priorto everyflight and in addition conduct detailed inspectionsaftereverytwo hours offlight. Maintenance performed bythe PIC is limited to repairing small cracks, replacing a propeller, checking electrical connections and updating software and firmware for the on-board computer. All other maintenance will be performed bythe manufacturer ortheir designated repairfacility. The PIC will documentwork performed in accordance with 91.417. Wefeel that dueto the size, construction, and simplicity ofthe aircraft, the PIC can ensure an equivalent level of safety.
8900.227 Paragraph 16(c)(4) PIC Medical. and Paragraph 16(e)(1) Observer Medical. This policy provides that both the PIC and VO must have avalid FMsecond-class medical certificate issued under part 67 in order to perform as a pilot orobserver. The UA maximum grossweight is 6.5 pounds, it is constructed of carbon fiber and plastic and the PIC is not on board. Both the PIG and the VO are required to be in VLOS. Given the unlikelyevent that both the PIC and VO become medically incapacitated while the aircraft is in flight, the UAwill return autonomouslyto the site of launching and land without crew intervention. Therefore, requiring the PIC and VO to meetthe same medical requirements as a commercial pilot carrying passengers in a large aircraft is an unnecessary burden. We propose that the minimum medical requirements forthe PIC and VO be vision corrected to 20/20 and a valid, state issued driver's license. The 20/20 vision requirement will ensure thatthe PIC and VO can see and avoid air traffic; a licensed driver is medically qualified to operate a much largervehicle.APPENDIXA- FLIGHTMANUAL FLIGHT RESTRICTIONS a) No flight will be made with a UAGrossweight exceeding 55 pounds; b) All operations must occur in FAA Class G airspace at no more than 400'AGL, at an airspeed of no more than 50 knots and nofurtherthan 3/4 NM from the PIC; c) All operations must utilize a visual observer (VO). The VO and PIC must be ableto communicate verbally at all times during a flight operation; d) Operations will be restricted to flights over propertywith the permission ofthe property owner; e) The PIC must have accumulated and logged, in a manner consistent with 14 CFR 

### § 61.51 (b), a minimum of100flight cycles and 25 hours oftotal time as a UA rotorcraft pilot and at least ten hours logged as a UApilotwith a similar UA

### type; f) All required permitswill 

### be obtained from state and local government priorto operation; g) The ME System will not be operated over densely populated areas; h) The ME System will not be operated atairshows; i) The ME System will notbe operated over anyopen-air assembly of people; j)The ME System will not be operated over heavilytrafficked roads; k) The ME System will not be operated within 5 NM of an airport or heliport; I) Operations will be restricted to day only and weather conditions equivalent to VFR; m) The PIC will briefthe VO and property owneraboutthe operation and risk beforethefirst flight at each new location; n) Noflight may be made without a successful Pre-Flight Inspection bythe PIC before each operation to ascertain thatthe UAis in a condition safe forflight. PREFLIGHT CHECKLIST 1. Remote controller, aircraft battery, and mobile device are fully charged. 2. Propellers are mounted correctly and firmly. 3. Micro-SO card has been inserted if necessary. 4. Gimbal is functioning as normal. 5. Motors can start and are functioning as normal. 6. DJI Pilot app connected to the aircraft. TO REGAIN CONTROLAFTER LOST RADIO CONTACT If radio contact is lost and not restored within 3 seconds, an automatic Return to Homefeature is activated and wi!! bring the UAV backto the PIC.