BOSTON CONNECTICUT NEW JERSEY NEW YORK WASHINGTON, DC

R ICHARD H. B ROWN Attorney at Law

1 Jefferson Road Parsippany, New Jersey 07054 T: (973) 966-8119 F: (973) 206-6129

rbrown@daypitney.com

Page 1 of 10 March 4, 2015

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

Re: Exemption Request Section 333 of FAA Reform Act and Title 14, Code of Federal Regulations (14 CFR): §§ 61.113(a) and (b); 91.119; 91.121; 91.151(a); 91.405(a); 91.407(a)(1); 91.409(a)(2); and 91.417(a) and (b)

Dear Sir or Madam:

Pursuant to 14 CFR part 11 and Section 333 of the F AA Modernization and Reform Act of 2012 (“the Reform Act”), Principia, Inc. (referred to herein a s “Applicant”), developer and operator of small Unmanned Aircraft Systems (“sUASs”) equipped to con duct aerial photography/filming operations for a range of business including insurance, real estate, agriculture, infrastructure inspection, and motion picture and television production, hereby applies for an ex emption from the listed Federal Aviation Regulation s (“FARs”) to allow commercial operation of its sUAS, so long as such operations are conducted within an d under the conditions outlined herein or as may be e stablished by the FAA as required by Section 333.

As described more fully below, the requested exempt ion would permit the operation of sUAS under controlled conditions in airspace that is 1) limite d, 2) predetermined, 3) controlled as to access, an d 4) would provide safety enhancements to the already sa fe businesses presently using conventional aircraft

. Approval of this exemption would thereby enhance sa fety and fulfill the Secretary of Transportation’s (the FAA Administrator’s) responsibilities to “...establis h requirements for the safe operation of such aircr aft systems in the national airspace system,” Section 3 33(c) of the Reform Act.

The name and address of the Applicant is:

Principia, Inc. Attn: George Finlay 71 South Orange Avenue South Orange, NJ 07079 (917) 841-2362 george@principiainc.com

The Applicant requests exemption under the followin g Regulations:U. S. Department of Transportation

March 4, 2015

Page 2 of 10 14 CFR § 61.113(a) and (b) 14 CFR § 91.119 14 CFR § 91.121 14 CFR § 91.151(a) 14 CFR § 91.405(a) 14 CFR § 91.407(a)(1) 14 CFR § 91.409(a)(2) 14 CFR § 91.417(a) and (b) 1

This exemption application is expressly submitted t o fulfill Congress’ goal in passing Section 333(a) through (c) of the Reform Act. This law directs the Secretary of Transportation to consider whether ce rtain unmanned aircraft systems may operate safely in the national airspace system (NAS) before completion o f the rulemaking required under Section 332 of the Re form Act. In making this determination, the Secreta ry is required to determine which types of unmanned ai rcraft system(s) (UASs) do not create a hazard to u sers of the NAS or the public or pose a threat to nation al security in light of: 1) the sUAS’s size, weight , speed, and operational capability; 2) operation of the sUA S in close proximity to airports and populated area s; and 3) operation of the sUAS within visual line of sigh t (VLOS) of the operator.

If the Secretary determines that such vehicles “may operate safely in the national airspace system, th e Secretary shall establish requirements for the safe operation of such aircraft in the national airspac e system.” Reform Act § 333(a) and (c). The Federal Aviation Act expressly grants the FAA t he authority to issue exemptions. This statutory authority by its t erms includes exempting civil aircraft, as the term is defined under § 40101 of the Act, which includes sU AS, from the requirement that all civil aircraft mu st

have a current airworthiness certificate.

The Administrator may grant an exemption from a req uirement of a regulation prescribed under subsectio n (a) or (b) of this section or any sections 44702-44 716 of this title if the Administrator finds the ex emption in the public interest, 49 United States Code (U.S. C.) § 44701(f). See also 49 U.S.C. § 44711(a), 49 U .S.C. § 44704, and 14 CFR § 91.203 (a)(1).

Principia’s sUAS is a rotorcraft, weighing 55 pound s or less including payload. It operates at an airs peed of no more than 55 knots and has the capability to hov er and move in the vertical and horizontal planes simultaneously. It will be operated only within VLO S of the operator and will operate only within a

secured area to ensure that the sUAS will “not crea te a hazard to users of the national airspace syste m or the public,” Reform Act, Section 333(b).

Given the small size of the sUAS at issue and the s ecured environment within which it will operate, th e applicant falls within that zone of safety (an equi valent level of safety) in which Congress envisione d that the FAA should, by exemption, allow commercial oper ations of UASs to commence immediately. Also

due to the size of the sUAS and the restricted area s in which it will operate, approval of the applica tion

1 Applicant understands that if it satisfies the req uirements under Section 333, then there is no need for relief under 14 CFR part 21 (airworthiness certificate), and und er 14 CFR §§ 45.23(b) and 91.7(a). Applicant furthe r understands that operation of sUAS does not require exemptions under 14 CFR § 91.9(b)(2) (civil aircraft marking a nd manual requirements) and based on the FAA memorandum “Inte rpretation regarding whether certain required docum ents may be kept on unmanned aircraft’s control station. ” If the Administrator determines that the Applican t may be subject to those requirements, the Applicant reserv es the right to supplement this request.U. S. Department of Transportation

March 4, 2015

Page 3 of 10 presents no national security issue. Given the clea r direction in Section 333 of the Reform Act, the authority contained in the Federal Aviation Act as amended, the equivalent level of safety surrounding the proposed aerial photography/filming operations, and the significant public benefit, including enhanced safety, reduction in environmental impacts such as reduced emissions associated with allowing UASs for operations currently performed by larger manned air craft, granting of the requested exemptions is in t he public interest. Accordingly, Applicant respectfull y requests that the FAA grant the requested exempti on without delay.

Specific regulations for which relief is sought by the Applicant:

14 CFR § 61.113(a) and (b) Private Pilot Privileges and Limitations: Pilot in Command (PIC)

Sections 61.113(a) and (b) limit private pilots to non-commercial operations. Because the sUAS will no t carry a pilot or passengers, the proposed operation s can achieve the equivalent level of safety of cur rent operations by requiring the PIC operating the aircr aft to have a private pilot’s license rather than a commercial pilot’s license to operate this sUAS. Un like a conventional aircraft that carries the pilot and passengers, this sUAS is remotely controlled with n o living thing on board. The area of operation is controlled and restricted, and all flights are plan ned and coordinated in advance as set forth in the General Operations Manual (GOM). The level of safety provid ed by the requirements included in the GOM and Aircraft Flight Manual (AFM) exceeds that provided by a single individual holding a commercial pilot’s certificate operating a conventional aircraft. The risks associated with the operation of the sUAS are so diminished from the level of risk associated with c ommercial operations contemplated by part 61 when drafted, that allowing operations of the sUAS as re quested with a private pilot as the PIC exceeds the present level of safety achieved by 14 CFR § 61.113 (a) and (b).

14 CFR § 91.119 Minimum Safe Altitudes

Section 91.119 establishes safe altitudes for opera tion of civil aircraft. Section 91.119(d) allows he licopters to be operated at less than the minimums prescribed , provided the person operating the helicopter comp lies with any route or altitudes prescribed for helicopt ers by the FAA. As this exemption request is for a sUAS that is a helicopter and requests the authority to operate at altitudes up to 400 feet above ground le vel (AGL), or for filming operations not more than 200 feet above an elevated platform from which filming is planned, an exemption may be needed to allow such o perations. As set forth herein, except for the limi ted conditions stated in the GOM, the sUAS will never o perate at higher than 400 feet AGL. It will be oper ated in a restricted area with security perimeter, where buildings and people will not be exposed to operat ions

without their consent.

The equivalent level of safety will be achieved giv en the size, weight, and speed of the sUAS as well as the location where it will be operated. No flight will be taken without the permission of the property own er or local officials. Because of the advance notice to t he property owner and participants in the aerial photography/filming operations area, all affected i ndividuals will be aware of the planned flight oper ations as set forth in the GOM. Compared to flight operati ons with aircraft or rotorcraft weighing far more t han the maximum 55 pounds proposed herein and the lack of flammable fuel, any risk associated with these operations is far less than those presented with co nventional aircraft operating at or below 400 feet AGL. In addition, the low-altitude operations of the sUA S will help ensure separation between these aerial photography/filming operations and the operations o f conventional aircraft that must comply with Secti on 91.119.U. S. Department of Transportation

March 4, 2015

Page 4 of 10 14 CFR § 91.121 Altimeter Settings

This regulation requires each person operating an a ircraft to maintain cruising altitude by reference to an altimeter that is set “...to the elevation of the dep arture airport or an appropriate altimeter setting available before departure.” As the sUAS does not have a baro metric altimeter, but instead a GPS altitude readou t, an exemption may be needed. An equivalent level of safety will be achieved by the operator, pursuant t o the GOM and AFM, confirming the altitude of the lau nch site shown on the GPS altitude indicator before flight.

14 CFR § 91.151(a) Fuel Requirements for Flight in Visual Flight Rules (VFR) Conditions

Section 91.151(a) prohibits an individual from begi nning “a flight in an airplane under VFR conditions unless (considering wind and forecast weather condi tions) there is enough fuel to fly to the first poi nt of intended landing, and, assuming normal cruising spe ed 1) during the day, to fly after that for at leas t 30 minutes; or 2) at night, to fly after that for at l east 45 minutes.”

The battery powering the Applicant’s sUAS provides approximately 40 minutes of powered flight. To meet the 30-minute reserve requirement in 14 CFR § 91.151, sUAS flights would be limited to approximately 10 minutes in length. Given the limit ations on the sUAS’s proposed flight area and the location of its proposed aerial photography/filming operations within a predetermined area, a longer t ime frame for flight in daylight or VFR conditions is r easonable.

Applicant believes that an exemption from 14 CFR § 91.151(a) falls within the scope of prior exemptions. See Exemption 10673 (allowing Lockheed Martin Corpo ration to operate without compliance with FAR 91.151(a)). Operating the sUAS in a tightly control led area where only people and property owners or official representatives who have signed waivers wi ll be allowed, with less than 30 minutes of reserve fuel, does not present the type of risks that Section 91. 151(a) is intended to alleviate given the size and speed of the sUAS. Additionally, limiting sUAS flights to 10 minutes would greatly reduce the utility for the a erial photography/filming operations for which the exempt ion is sought.

Applicant submits that an equivalent level of safet y can be achieved by limiting flights to 30 minutes or 25 percent of battery power, whichever happens first. This restriction would be adequate to return the sU AS to its planned landing zone from anywhere in its limit ed operating area. Similar exemptions have been granted to other operations, including Exemptions 2 689F, 5745, 10673, and 10808.

14 CFR §§ 91.405(a); 91.407(a)(1); 91.409(a)(2); 91 .417(a) and (b) Maintenance Inspections

These regulations require that an aircraft operator or owner “shall have that aircraft inspected as pr escribed in subpart E of this part and shall between require d inspections, except as provided in paragraph (c) of this section, have discrepancies repaired as prescribed in part 43 of this chapter...,” and others shall in spect or maintain the aircraft in compliance with part 43.

Given that these sections and part 43 apply only to aircraft with an airworthiness certificate, these sections will not apply to the Applicant. Maintenance will b e accomplished by the operator pursuant to the AFM and GOM. As provided in the GOM, the operator will ensure that the sUAS is in working order prior to initiating flight, perform required maintenance, an d keep a log of any maintenance performed.U. S. Department of Transportation

March 4, 2015

Page 5 of 10 Limitations and conditions to which Principia agree s to be bound when conducting commercial sUAS operations under the requested exemption include th ose listed below:

AIRCRAFT

1. Operations authorized by this grant of exemption ar e limited to the following aircraft described in the attached AFM: DJI S1000 serial number Q2Q002160 2, registration N68FG. Proposed operations of any other aircraft will require a new petition or a petition to amend this grant.

2. The sUAS will weigh less than 55 pounds (25 kg), in cluding energy source(s) and equipment.

3. All aircraft operated in accordance with this exemp tion will be identified by serial number, registered in accordance with 14 CFR part 47, and h ave identification (N-Number) markings in accordance with 14 CFR part 45, subpart C. Markings will be as large as practicable.

4. The sUAS may not be flown at an airspeed exceeding 55 knots.

5. The sUAS will be programmed to return to a predeter mined location within the Security

Perimeter to land or be recovered in the event manu al control is lost.

MANUALS

1. The AFM and GOM will be maintained and made availab le to the Administrator upon request. If a discrepancy exists between the conditions and lim itations in this exemption and the procedures outlined in either of those documents, the conditio ns and limitations herein take precedence and must be followed. Otherwise, Principia will follow the procedures as outlined in the AFM and

GOM.

2. Principia will track revisions to the AFM and GOM a nd present updated and revised documents to the Administrator upon request. It will also pre sent updated and revised documents if we petition for extension or amendment. If it determin es that any update or revision would affect the basis for which the FAA granted this exemption, the n it will petition for amendment to the exemption. The FAA’s UAS Integration Office (AFS-80 ) will be contacted if questions arise regarding updates or revisions to the AFM and GOM.

CREW

1. Minimum crew for each operation will consist of pil ot, visual observer (VO), and the camera operator. The VO may be used to satisfy the VLOS re quirement as long as the PIC always maintains VLOS capability. The VO and PIC will be a ble to communicate verbally at all times.

2. The PIC will possess at least a private pilot certi ficate and at least a current third-class medical certificate. The PIC will also meet the flight revi ew requirements specified in 14 CFR § 61.56 in

an aircraft in which the PIC is rated on his or her pilot certificate. Prior to conducting commercial aerial photography/filming operations, the PIC will have accumulated and logged, in a manner consistent with 14 CFR § 61.51(b), a minimum of 25 hours of total time as a UAS rotorcraft pilot and at least 10 hours logged as a UAS pilot with a similar UAS type.U. S. Department of Transportation

March 4, 2015

Page 6 of 10 3. Prior to conducting commercial aerial photography/f ilming flight operations, the PIC will be required to have accumulated and logged, in a manne r consistent with 14 CFR § 61.51(b), a minimum of five hours as an UAS pilot operating the make and model of UAS to be utilized for operations under the exemption and three takeoffs a nd three landings in the preceding 90 days.

4. During training, proficiency, experience-building, and takeoff and landing currency flights, all persons not essential for flight operations will be considered nonparticipants, and the PIC will be required to operate the sUAS with appropriate dista nce from nonparticipants in accordance with 14 CFR § 91.119.

5. Prior to any commercial aerial photography/filming flight operations, the crew will have successfully completed the qualification process de tailed in the GOM. As this is a requirement stipulated by Principia, the test has been develope d and implemented by a qualified person designated at the sole discretion of Principia. A r ecord of completion of this qualification process

will be documented and made available to the Admini strator upon request.

6. Prior to commercial aerial photography/filming flig ht operations, a flight demonstration, administered by an operator-approved and qualified pilot will be successfully completed and

documented. This documentation will be available fo r review upon request by the Administrator. Because the knowledge and airmanship test qualifica tions have been developed by the operator, and there are no established practical test standar ds that support a jurisdictional FAA Flight Standards District Office (FSDO) evaluation and app roval of company designated examiners, Principia will conduct these tests in accordance wi th the GOM.

7. The documents required under 14 CFR §§ 91.9 and 91. 203 will be available to the PIC any time the aircraft is operating. These documents will be made available to the Administrator or any law enforcement official upon request.

MAINTENANCE

1. If any part of the sUAS has undergone maintenance o r alterations that affect operation or flight characteristics, for example, replacement of a flig ht critical component, then the entire sUAS will undergo a functional test flight in accordance with the GOM. The PIC who conducts the functional test flight will make an entry in the sU AS aircraft records of the flight, as required by

the GOM.

2. The AFM will include updated current maintenance pr ocedures, inspection requirements, and life limits for aircraft systems including servos, motor s, propellers, electronic speed controllers, batteries, and remote control.

3. All technicians performing maintenance and inspecti on on the sUAS will meet technician qualification criteria developed by Principia and i ncluded in the GOM.

4. Each sUAS operated under this exemption will comply with all manufacturer safety bulletins.U. S. Department of Transportation

March 4, 2015

Page 7 of 10 5. The GOM includes procedures to document and maintai n a record of the sUAS maintenance, preventative maintenance, alterations, status of re placement/overhaul of component parts, and the

total time in service of the sUAS.

OPERATIONS

1. Prior to each flight, the PIC will inspect the sUAS to ensure it is in a condition for safe flight. If the inspection reveals a condition that affects the safe operation of the sUAS, the aircraft is prohibited from operating until the necessary maint enance has been performed and the sUAS is found to be in a condition for safe flight. The rem ote control will be included in the preflight inspection. All maintenance and alterations will be properly documented in the aircraft records.

2. Flights will be operated at an altitude of no more than 400 feet AGL, except for limited conditions outlined in the GOM. All altitudes repor ted to Air Traffic Control (ATC) will be in

feet AGL.

3. The sUAS will be operated within VLOS of the PIC at all times. This requires the PIC to be able to use human vision unaided by any device other tha n corrective lenses, as specified on the PIC’s

FAA-issued medical certificate.

4. Before conducting commercial aerial photography/fil ming flight operations, the radio-frequency spectrum used for operation and control of the sUAS will be checked to comply with Federal Communications Commission (FCC) or other appropriat e government-oversight agency requirements.

5. Regarding distance from nonparticipating persons, t he operator will ensure that no persons in open areas are allowed within 500 feet of the aircr aft except those consenting to be involved and necessary for the aerial photography/filming operat ions. If barriers or structures are present that can sufficiently protect nonparticipating persons f rom debris in the event of an accident then the UA may operate closer than 500 feet to persons affo rded such protection. The operator must ensure that nonparticipating persons remain under s uch protection. If a situation arises where nonparticipating persons leave such protection and are within 500 feet of the UA, flight operations must cease immediately.

6. Regarding the distance from participating persons, the GOM has safety mitigations for authorized and consenting production personnel. At all times, those persons must be essential to the aerial photography/filming operations. Because these proce dures are specific to participating persons, no further FSDO or aviation-safety inspector approv al will be considered necessary for reductions to the distances specified in the GOM, consistent w ith the manned aircraft procedures described in FAA Order 8900.1, V3, C8, S1.

7. Each sUAS operation will be completed within 30 min utes flight time or with 25% battery power remaining, whichever occurs first.

8. The sUAS will remain clear and yield the right of w ay to all other manned operations and activities at all times (including, but not limited to, ultralight vehicles, parachute activities, parasailing activities, hang gliders, etc.).U. S. Department of Transportation

March 4, 2015

Page 8 of 10 9. UAS operations will not be conducted during night, as defined in 14 § CFR 1.1. All operations will be conducted under visual meteorological condi tions (VMC). Flights under special visual flight rules (SVFR) are not authorized.

10. The sUAS will not be operated from any moving devic e or vehicle.

11. The sUAS will not be operated fewer than 500 feet b elow or fewer than 2,000 feet horizontally from a cloud or when visibility is less than three statute miles from the PIC.

12. The sUAS will not operate in Class B, C, or D airsp ace without written approval from the FAA. The sUAS will not operate within five nautical mile s of the geographic center of a non-towered airport as denoted on a current FAA-published aeron autical chart unless a letter of agreement with that airport’s management is obtained. The let ter of agreement with the airport management will be made available to the Administrator upon re quest.

13. The sUAS will only operate only within a confined “ Secured Area” as defined in the GOM, which requires the establishment of a “Security Per imeter” for the flight operations area.

14. A briefing will be conducted in regard to the plann ed operation prior to each day’s flight activities. It will be mandatory that all personnel who will be performing duties within the boundaries of the safety perimeter be present for t his briefing.

15. Accidents will be reported to the National Transpor tation Safety Board (NTSB) per instructions contained on the NTSB website: www.ntsb.gov. Furthe r flight operations will not be conducted until the incident, accident, or transgression is r eviewed by AFS-80 and authorization to resume operations is provided.

16. Unless otherwise specified in this grant of exempti on, the sUAS, the sUAS PIC, and the sUAS operations will comply with all applicable parts of 14 CFR including, but not limited to, parts 45, 47, 61, and 91.

17. Applicant agrees that failure to comply with any of the conditions and limitations of this grant of exemption will be grounds for the immediate suspens ion or rescission of this exemption.

*********

Pursuant to 14 CFR part 11, the following summary i s provided for publication in the Federal Register, should it be determined that publication is needed:

Applicant seeks an exemption from the following rul es: 14 CFR §§ 61.113(a) and (b); 91.119; 91.121; 91.151(a); 91.405(a); 91.407(a)(1); 91.409(a)(2), a nd 91.417(a) and (b) to operate commercially a sUAS (55 pounds or less) in aerial photography/filming o perations.

Approval of exemptions allowing commercial operatio ns of sUASs will enhance safety by reducing risk. Conventional manned flight operations, using jet or piston power aircraft, sometimes operate at low in close proximity to people and structures; and prese nt the risks associated with vehicles that weigh approximately 6,000 pounds, carrying large amounts of fuel or other flammable liquid. Such aircraft mu st fly to and from the job location. In contrast, a sU AS weighing less than 55 pounds and powered byU. S. Department of Transportation

March 4, 2015

Page 9 of 10 batteries eliminates virtually all of that risk giv en the reduced mass and lack of combustible fuel ca rried on board. The sUAS is carried to the job location, not flown. The sUAS will carry no passengers or crew a nd, therefore, will not expose them to the risks associ ated with manned aircraft flights.

The operation of sUASs, weighing less than 55 pound s, conducted in accordance with the conditions outlined above, will provide an equivalent level of safety supporting the grant of the exemptions requ ested herein. These lightweight aircraft operate at slow speeds, close to the ground, and in a secured envir onment and, as a result, are safer than conventional opera tions conducted with helicopters operating in close proximity to the ground and people.

Privacy

All flights will occur over private or controlled-a ccess property with the property owner’s prior cons ent and knowledge. Photography/filming will be of peopl e who have also consented to being photographed or otherwise have agreed to be in the area where the a erial photography/filming operations will take plac e. All operations will be compliant with applicable local and state laws.

The Applicant’s request satisfies the criteria set forth in Section 333 of the Reform Act. The size, w eight, speed, operating capabilities of the sUAS, the limi tations on operations proximate to airports and pop ulated areas, and the operation within VLOS do not create a hazard to users of the national airspace system a nd do not pose any national security threats or concer ns. The foregoing easily meets the criteria for gra nting the requested exemptions allowing commercial operat ions of Applicant’s sUAS pursuant to the GOM and AFM appended hereto.

Respectfully submitted,

/s/ Richard H. Brown

Richard H. Brown Day Pitney LLP Counsel for Principia, Inc.

John McGraw John McGraw Aerospace Consulting, LLC Agent for Principia, Inc.

Encls.U. S. Department of Transportation

March 4, 2015

Page 10 of 10 Glossary of Acronyms

AFM: Aircraft Flight Manual, also known as a Pilot’ s Information Manual; a document for a specific

make and model laid out in the same format familiar to pilots in an FAA-approved PIH, Pilot Informatio n Handbook. The 10 sections are: 1) General, 2) Limit ations, 3) Emergency Procedures, 4) Normal Procedures, 5) Performance, 6) Weight and Balance, 7) Airplane and Systems Description, 8) Handling, Servicing, and Maintenance, 9) Supplements, and 10) Safety and Operational Tips.

AGL: above ground level; this is one of two ways in which pilots and air traffic control refer to alti tude, and it is the most useful way for operations close to the ground.

ATC: Air Traffic Control

CFR: Code of Federal Regulations

FARs: Federal Aviation Regulations

FSDO: Flight Standards District Office

GOM: General Operations Manual; a document that det ails company-wide operating procedures not specific to one of the aircraft that company operat es. It includes details on company organization, jo b responsibilities, and procedures for training, oper ating, maintenance, safety, and security.

NAS: national airspace system

NTSB: National Transportation Safety Board

PIC: Pilot in Command

sUAS: small unmanned aerial system, defined as 55 p ounds (24 kg) or less

SVFR: special visual flight rules

UAS: unmanned aerial system, includes the ground co ntrol equipment as well as the aircraft itself

USC: United States Code

VFR: visual flight rules

VLOS: visual line of sight

VMC: visual meteorological conditions

VO: visual observer