Domenico C. Perrella Associate T 415-984-8413 dperrella@nixonpeabody.com One Embarcadero Center, 18th Floor San Francisco, CA 94111-3600 415-984-8200

4848-9229-2140.1 January 14, 2016

U.S. Department of Transportation Docket Management System 1200 New Jersey Ave, SE Washington, DC 20590 RE: Exemption Request Under Section 333 of the FAA Reform Act and Part 11 of the Federal Aviation Regulations
Dear Sir or Madam: Pursuant to Section 333 of the FAA Modernization and Reform Act of 2012 (the “Reform Act” or “Section 333”), Subsection (f) of 49 U.S.C. § 44701, and 14 C.F.R. Part 11, Ursa Operating Company LLC (“Ursa”) seeks an exemption from the Federal Aviation Regulations (“FARs”) listed below and discussed in Appendix A to allow it to operate six different small Unmanned Aircraft Systems (collectively, the “sUAS”): the DJI Phantom 3 Advanced, DJI Phantom 3 Professional, DJI Inspire 1, DJI Matrice 100, DJI Spreading Wings S1000, and senseFly Ebee RTK. Ursa is an oil and gas exploration and production company focused on the recovery of hydrocarbons from unconventional and tight conventional oil and gas reservoirs. Ursa plans to use the sUAS for aerial inspection and mapping of production pads and pipelines across its assets located within the United States. The inspections will include aerial surveys for mapping, and inspection, video, and other pertinent data collected via onboard sensors. The safety and public benefits of using sUAS for these inspections are significant. The use of sUAS aircraft is superior to the use of manned aircraft in unconventional operations as it will provide more accurate data in a manner that is more safe, economical, efficient, and has a reduced impact on the environment. It is also superior to inspections by personnel on the ground because it is quicker, more effective, and will facilitate more frequent inspections in an effort to mitigate problems or needs for maintenance sooner. Operations pursuant to the exemption will be subject to strict operating requirements and conditions to ensure at least an equivalent level of safety to currently authorized operations using manned aircraft and under conditions as may be modified by the FAA as required by Section 333. At weights of 1280 grams for the DJI Phantom 3 Advanced, 1280 grams for the4848-9229-2140.1

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DJI Phantom 3 Professional, 2935 grams (3035 grams with the higher capacity battery) for the DJI Inspire 1, 3400 grams for the DJI Matrice 100, 11 kilograms for the DJI Spreading Wings S1000, and 730 grams for the senseFly Ebee RTK1 , the proposed sUAS are small in size and are powered electrically via small, rechargeable, lithium batteries. These sUAS have extensive automated control features, redundant systems, and integrated fail-safes. They will be operated under controlled conditions and at low altitudes in airspace that is limited in scope. Though the sUAS may safely be operated by one person, flight operations performed pursuant to this exemption will consist of at least two people: a pilot-in-command (the “PIC”) and a visual observer. The PIC is responsible for the direct and safe operation of the sUAS, monitoring its status and flight dynamics while maintaining visual line of sight and keeping the flight within the manufacturer’s specified limits in terms of wind, flight range, battery life, etc. The observer will be responsible for monitoring the airspace for other aircraft and hazards, advising the PIC before and during flight of all such observed risks, and monitoring the controlled operating area. Individuals acting as the PIC and observers will complete manufacturer-approved training specific to the sUAS, and the PIC will be a certificated airman with private pilot or sport pilot privileges and limitations, and maintain a current third-class medical certificate. Because the sUAS will be used in lieu of comparatively higher risk operations conducted with fixed wing and rotary manned aircraft, the FAA can have confidence that Ursa’s operations will achieve at least an equivalent level of safety and fulfill the Secretary of Transportation’s responsibilities under Section 333(c) of the Reform Act to “establish requirements for the safe operation of such aircraft systems in the national airspace system.” Applicant Information The name of the applicant is: Ursa Operating Company LLC The primary contact for this application is:
Erik Baros Vice President of Technical Systems Ursa Operating Company LLC 1050 17th St., Suite 2400

1 The weights given for the DJI Matrice 100 and the DJI Spreading Wings S1000 are manufacturer-provided maximum takeoff weights, including payload. The other aircraft are not designed to carry any payload other than the included cameras, batteries and other sensors, so the weights given for them are their takeoff weights with all included equipment, as provided by the manufacturers.4848-9229-2140.1

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Denver, CO 80265 Phone: (720) 508-8355 Fax: 970.263.7456 Exemptions Requested Ursa respectfully requests exemptions from the following regulations: 2
14 C.F.R. Part 21; 14 C.F.R. § 91.7; 14 C.F.R. § 91.113; 14 C.F.R. § 61.113(a), (b); 14 C.F.R. § 61.133(a); 14 C.F.R. § 91.119(c); 14 C.F.R. § 91.151; 14 C.F.R. § 91.203; 14 C.F.R. § 91.405(a) and (b); 14 C.F.R. § 91.407(a)(1); 14 C.F.R. § 91.409(a)(1)-(2); and 14 C.F.R. § 91.417(a).

THE APPLICABLE LEGAL STANDARD UNDER SECTION 333 Grant of this exemption application for use of the sUAS in precision aerial mapping and inspection operations will advance the Congressional mandate in Section 333 of the Reform Act to accelerate the introduction of UAS into the national airspace system ("NAS") if it can be accomplished safely. This law directs the Secretary of Transportation to consider whether certain UAS may operate safely in the NAS before completion of the rulemaking required under Section 332 of the Reform Act. In making this determination, the Secretary is required to determine which types of UAS do not create a hazard to users of the NAS or the public, or pose a threat to national security in light of the following:

 The UAS's size, weight, speed, and operational capability;

2 As set forth in Appendix B, Ursa will operate under similar operating conditions as those required in the other grants of exemption, in which exemptions for certain FARs was deemed by the FAA as “not necessary.” Accordingly, Ursa does not request FAA exemption from 14 C.F.R. 45.23(b), 91.103, and 91.109(a). Should the FAA determine that relief from these regulations is required for the operations proposed herein, Ursa respectfully requests the opportunity to submit an amendment to this request and include justifications for those necessary additional exemptions.4848-9229-2140.1

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 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. Reform Act § 333(a)(1). If the Secretary determines 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) (emphasis added). 3 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 defined under §40101 of the Act, from the requirement that all civil aircraft must have a current airworthiness certificate and those regulations requiring commercial pilots to operate aircraft in commercial service:

The Administrator may grant an exemption from a requirement of a regulation prescribed under subsection (a) or (b) of this section or any of sections 44702-44716 of this title if the Administrator finds the exemption is 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). The grant of the requested exemption is in the public interest based on the clear direction in Section 333 of the Reform Act; the additional authority in the Federal Aviation Act, as amended; the strong equivalent level of safety surrounding the proposed operations; and the significant public benefit, including enhanced safety, more frequent inspections, and cost savings associated with transitioning to UAS for aerial surveys, mapping and inspections. Ursa therefore respectfully requests that the FAA grant the requested exemption without delay. Airworthiness of the sUAS One element of the exemption application involves evidence of the airworthiness of the sUAS. Ursa and the manufacturers of the sUAS – DJI and senseFly – submit that the sUAS have been shown to be airworthy and compliant with a significant level of safety. Indeed, the FAA has previously granted several exemptions for the sUAS that are the subject of this request. See Exemption Nos. 11481 (DJI Phantom 3 Advanced), 13978 (DJI Phantom 3 Professional), 12272

3 This provision places a duty on the Administrator to not only process applications for exemptions under Section 333, but for the Administrator, if he deems the conditions proposed herein require modification in order to allow approval, to supply conditions for the safe operation of the UAS. Ursa welcomes the opportunity to consult with FAA staff to address any issues or concerns that this proposal may raise that it believes may require modification.4848-9229-2140.1

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(DJI Inspire 1), 11646A (DJI Matrice 100), 13942 (DJI Spreading Wings S1000), and 13813 (senseFly Ebee RTK). To enhance safety, it is also important to note that each of the sUAS models covered by this request is equipped with automated features which enhance safe takeoff, flight, and landing in many conditions, further details of which are provided in the manufacturers’ manuals. 4 To maintain airworthiness, Ursa will follow a strict inspection and maintenance program. That program is enhanced by several automatic checks performed by the sUAS. Malfunctions that occur during flight will be detected by the sUAS fault detection systems, which communicate a fault warning to the PIC to take necessary action. For certain malfunctions and faults (i.e., lost communications), the sUAS may be pre-programmed to automatically respond and land either at a designated location (e.g., a return-to-home or point of take-off) or in-place. In addition, Ursa will maintain emergency checklists for proper and safe malfunction responses that will be used by the PIC during operation of the sUAS. In the event of any malfunction, the sUAS will undergo all maintenance required by the manufacturer and undergo flight testing before recommencing commercial operations. Proposed Operations and Associated Conditions Ursa intends to use sUAS that weigh significantly less than 55 pounds for the purpose of conducting aerial inspections, surveys and mapping of its oil and gas facilities. In the survey and mapping context, for example, the sUAS will be used to acquire photogrammetric datasets for use in mapping the exact locations of facilities. With regard to inspections, the sUAS will provide photographic and video data showing the condition of the pipelines and other equipment. All of the sUAS operations will occur under tightly controlled conditions on public or privately owned land with the owner’s consent, solely during daylight hours, and at altitudes well below that which would pose a risk to other aircraft. The operations will take place in areas away from people, crowds, and airports. Also, due to the nature and purpose of the operations, Ursa anticipates that it will fly the sUAS at relatively low altitudes and speeds. The risk of interference with another aircraft is therefore minimal. Grant of the exemptions to Ursa will be subject to the conditions listed in Appendix B, which are based upon the operating conditions required by the FAA's previous grants of exemptions for similar unmanned aircraft and proposed operations. In terms of the specific aircraft Ursa will use for its operations, all are characterized by a high degree of pre-programmed control and

4 Ursa submits the user manuals for the DJI Phantom 3 Advanced, DJI Phantom 3 Professional, DJI Inspire 1, DJI Matrice 100, DJI Spreading Wings S1000, and senseFly Ebee RTK, as proprietary and under confidentiality, in support of this Exemption Request.4848-9229-2140.1

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various built-in technical capabilities that limit the potential for operation outside of the conditions set forth in Appendix B . They were also designed with internal functional and safety features to assist the operator in safe and reliable operation. With pre-programmed flights and manual control, operators can easily maintain separation from manned aircraft operations and avoid other hazards. In the controlled environment under the operations conditions in Appendix B, operations will remain within visual line-of-sight (VLOS) and below 400 feet AGL. Ursa will provide notification by a Notice to Airman (NOTAM) of all flights and, for any flights not covered by the Blanket Certificate of Waiver or Authorization (COA) for any Operator issued a valid Section 333 Grant of Exemption applicable to flights less than 200 feet Above Ground Level, Ursa will obtain a Certificate of Waiver or Authorization from the FAA Air Traffic Organization to address airspace requirements in addition to providing notice by filing a NOTAM. Operator Requirements Ursa will use a dedicated staff for the sUAS operations. As a condition to the grant of the exemptions, Ursa will require that the PIC hold a private pilot's certificate or sport pilot’s certificate and a valid third-class medical certificate. The PIC will have accumulated and logged a minimum number of flight cycles and hours for daytime operations, as necessary. The PIC will also be subject to the flight review requirements required pursuant to the Federal Aviation Regulations (“FARs”). In addition, the PIC must complete a training program for each model of sUAS that he or she will operate. This training is specific to each sUAS and familiarizes the PIC and observers to the operations and limitations of each sUAS. Training will also include discussions on the basic fundamentals of UAS aerodynamics and technical limitations, as well as more the general topics of weather and the legal and regulatory framework. Ursa does not believe that certified airmen, medical certificates, and the related operating conditions, are necessary or required to safely operate the sUAS. However, Ursa will accept these requirements as a condition to the grant of the exemptions. If, and when, the FAA finds such conditions unnecessary for operations conducted pursuant to Section 333 exemptions or commercial sUAS operations generally, Ursa respectfully reserves the right to amend its operating conditions and request exemptions from the relevant FARs to operate without such conditions.
Public Interest The use of the sUAS in lieu of comparatively more potentially hazardous operations currently conducted with conventional fixed wing and rotary aircraft offers a net safety benefit and will achieve an enhanced level of safety, as mandated under Section 333(c) of the Reform Act. Approval of this application will also benefit the public interest by allowing better, safer, more4848-9229-2140.1

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frequent, and more cost-efficient inspections and surveys of Ursa’s oilfield equipment and pipelines, benefitting Ursa and the public. Conventional aerial survey and inspection operations using manned aircraft involve heavy aircraft that must transit from airports to the operational location, carrying significant amounts of combustible fuel, and a multi-person crew. The nature of surveying and inspection operations magnify the dangers of using conventional aircraft, as the aircraft fly in unconventional operations under FAA waivers and at less safe altitudes. Aerial inspection and analysis by traditional manned aircraft is also often times impractical because the required altitudes for safe flight can reduce the operative visibility below levels necessary to obtain meaningful data. By contrast, use of the sUAS is safe, economical, and efficient. The sUAS covered by this request weigh between 730 grams and 11 kilograms, including maximum payload for those that can carry payload, which is substantially less than 55 pounds (25 kilograms), they operate on battery power, are carried (not flown) to and from the area of activity, remove the need for an airborne crew, and pose less risk to people and infrastructure on the ground, as well as other aircraft. sUAS operations also avoid the need for inspection personnel to put themselves at risk on drilling rigs, production pads, pipelines running through roadless areas, and other structures to perform inspections. If more detailed in-person inspections are required, planners can use preliminary sUAS data and target areas of concern without putting inspectors and other individuals at risk in hazardous areas. More frequent, safer, and cost-efficient inspections by sUAS will also increase safety for the public. In addition, the sUAS can map the conditions and assist to more quickly locate any problem areas within Ursa’s assets, assisting personnel to determine areas of potential hazard and the need for heightened safety measures and/or repairs to eliminate hazards. Increased inspections will also help to create a more comprehensive maintenance record regarding development/production equipment and pipelines, keeping the public safer from regulatory and environmental violations as well as other potential hazards. No national security issue is raised by the grant of the requested exemptions. Given the size, load-carrying capacity, speed at which the sUAS operate (up to 59 mph for the senseFly Ebee RTK fixed-wing sUAS and lower speed for the others, which are all rotary-wing sUAS), and the fact that they do not carry explosives or other dangerous materials, the use of the sUAS poses no threat to national security. In fact, the threat of causing damage to critical national infrastructure is significantly reduced with the extremely low sUAS weights and limited operating areas. Any other security concerns are ameliorated by the fact that all individuals holding a private pilot certificate are subject to a security screening by the U.S. Department of Homeland Security.4848-9229-2140.1

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The grant of the requested exemption is in the public interest based on the clear direction in Section 333, the Federal Aviation Act,5 the high and equivalent level of safety of the proposed operations, and the significant public benefit, including enhanced safety and cost savings to be realized as a result of the use of sUAS for aerial inspection and mapping services. Accordingly, Ursa respectfully requests that the FAA grant the requested exemption without delay.

5 The Federal Aviation Act ("FAAct") expressly grants the FAA the authority to issue exemptions: The Administrator may grant an exemption from a requirement of a regulation prescribed under subsection (a) or (b) of this section or any of sections 44702-44716 of this title if the Administrator finds the exemption is in the public interest. 49 U.S.C. § 44701(f). Very truly yours, NIXON PEABODY, LLP

Domenico C. Perrella4848-9229-2140.1

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APPENDIX A EXEMPTION REQUEST AND EQUIVALENT LEVEL OF SAFETY SHOWINGS

UNDER APPLICABLE RULES SUBJECT TO EXEMPTION 14 C.F.R. Part 21, Subpart H: Airworthiness Certificates 14 CFR § 91.203(a)(1) Section 91.203(a)(1) requires all civil aircraft to have a certificate of airworthiness. Part 21, Subpart H, entitled Airworthiness Certificates, establishes the procedural requirements for the issuance of airworthiness certificates as required by FAR § 91.203(a)(1). Given the very small size of the aircraft and the limited operating area associated with their utilization, it is unnecessary to go through the certificate of airworthiness process under Part 21 Subpart H to achieve or exceed current safety levels. 6 Such an exemption meets the requirements of an equivalent level of safety under Part 11 and Section 333 of the Reform Act. The Federal Aviation Act and Section 333 of the Reform Act both authorize the FAA to exempt aircraft from the requirement for an airworthiness certificate, upon consideration of the size, weight, speed, operational capability, and proximity to airports and populated areas of the UAS involved. In this case, an analysis of these criteria demonstrates that the sUAS operated without an airworthiness certificate, under the conditions proposed herein, will be at least as safe, or safer, than a conventional aircraft (fixed wing or rotorcraft) with an airworthiness certificate. The X4-ES weighs 5.5 lbs., and the Aero-M weights 7.9 lbs., including payload. The sUAS do not carry a pilot or passenger, will not carry flammable fuel, and will operate exclusively within an area pre-disclosed and in compliance with conditions set forth herein. Operations under this exemption will be tightly controlled and monitored by the operator, the manufacturers’ manuals, and by local public safety requirements. The FAA will have advance notice of all operations through the filing of NOTAMs. Receipt of the prior permission of the landowner (or lessee), the size of the aircraft, the lack of flammable fuel, and the fact that the aircraft is carried to the location and not flown there all

6 The FAA has stated that no exemption is needed from this section if a finding is made under the Reform Act that the sUAS provide an equivalent level of safety when compared to aircraft normally used for the same application. These criteria are satisfied and therefore no exemption is needed. See, e.g., Grant of Exemption to Astraeus Aerial, Docket No. FAA-2014-0352 at 13-14, 22. Should the FAA determine that some characteristics of the sUAS fail to meet the requirements of the Reform Act, Ursa respectfully requests an exemption.4848-9229-2140.1

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establish the equivalent level of safety. The sUAS provide at least an equivalent level of safety to that of such operations being conducted with conventional manned aircraft that would be orders-of-magnitude larger and would be carrying passengers, cargo, and flammable fuel. The safety features including the redundant sensor systems, as described in the manufacturers’ manuals, and throughout this document, underscore the importance placed on safety and reliability in the design and manufacture of the sUAS. 14 C.F.R. § 91.7(a)-(b); Civil Aircraft Airworthiness Section 91.7(a) requires that a civil aircraft must be in airworthy condition to be operated. The FAA has concluded that no exemption is required under 14 C.F.R. § 91.7(a) to the extent that the requirements of Part 21 are waived or otherwise found inapplicable. See FAA Grant of Exemption to Astraeus Aerial, Docket No. FAA-2014-0352, Exemption No. 11062, pp. 14-15, 19, 22. Ursa therefore respectfully requests that the FAA find the requirements for section 91.7(a) in accordance with the agency’s determination on 14 C.F.R. Part 21, Subpart H, discussed supra
. The agency similarly found that relief from section 91.7(b) is not warranted, which places responsibility on the PIC to ensure an aircraft is in a condition safe for flight. See Grant of Exemption to Astraeus Aerial, Docket No. FAA-2014-0352, Exemption No. 11062, p. 19. To the extent, an exemption is required under section 91.7(a) or (b), Ursa respectfully requests that the FAA find compliance with the manufacturer’s manuals, and requirements of the grant of exemption, a sufficient means for ensuring the sUAS are and remain in an airworthy condition. 14 C.F.R. § 91.113; Right-of-Way Rules Section 91.113 requires that vigilance be maintained by each person operating an aircraft to see and avoid other aircraft. Unlike manned aircraft, the sUAS pilot is not on-board the aircraft to observe and avoid other aircraft, operating the sUAS from the ground. Ursa’s proposed operating conditions will achieve an equivalent or greater level of safety. All operations will involve two individuals—one certificated private pilot as the PIC and one trained visual observer who will monitor the immediate and surrounding airspace of the sUAS operation for potential obstruction hazards and other possible intrusions. The sUAS will also be limited to designated areas below 400 feet AGL and within a virtual fence. Ursa will notify the FAA and other pilots of its sUAS operations by NOTAM. 14 C.F.R. § 61.113(a) & (b); 61.133(a): Private Pilot Privileges and Limitations; Pilot in Command; Commercial Pilot Privileges and Limitations.4848-9229-2140.1

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Section 61.113(a) & (b) limit private pilots to non-commercial operations. Unlike a conventional aircraft that carries a pilot, passengers, and cargo, the sUAS in this case are remotely controlled with no passengers or property of others on-board. Section 61.133(a) requires an individual with a commercial pilot’s license to act as pilot in command of an aircraft for compensation or hire. Ursa respectfully proposes that operator requirements should take into account the characteristics of the particular UAS. Here, the sUAS have a high degree of pre-programmed control and various built-in technical capabilities that strictly limit the potential for operation outside of the operating conditions set forth in the exemption application. The small size, endurance, range and payload capacities of the sUAS mean that no passengers and/or cargo will ever be carried by either model aircraft. Rather, commercial operations will be strictly limited to conducting aerial surveys and mapping, inspections and acquiring aerial imagery. Considering these conditions, operating limitations and restrictions, an equivalent level of safety will be provided by allowing operation of the sUAS by Ursa with individuals who possess a valid FAA private pilot certificate or sport pilot certificate and third-class medical certificate. The risks associated with the operation of the sUAS (given their small size, speed, operational capabilities and limitations, and lack of combustible fuel) are so diminished from the level of risk associated with commercial operations (and even operations permitted with a private pilot certificate) contemplated by Part 61 with manned aircraft, that allowing operations of the sUAS as set forth in Appendix B meets and exceeds the present level of safety provided under 14 C.F.R. § 61.113(a)-(b), and does not call for a commercial pilot certificate as set forth in § 61.133. 14 CFR § 91.119: Minimum Safe Altitudes Section 91.119 establishes safe altitudes for operation of civil aircraft. Specifically, 91.119(c) limits aircraft flying over areas other than congested areas to an altitude of 500 feet above the surface, except over open water or sparsely populated areas. In those cases, the aircraft may not be operated closer than 500 feet to any person, vessel, vehicle, or structure. As set forth herein, the sUAS will not operate at higher than 400 feet AGL. The sUAS will, however, be operated to avoid congested or populated areas that are depicted in yellow on VFR sectional charts. Because aerial survey work must be accomplished at relatively low altitudes and at altitudes less than 500 feet AGL, an exemption from Section 91.119(c) is needed. The equivalent level of safety will be achieved given the size, weight, speed, and material with which the sUAS are built. Also, no flight will be taken without the permission of the landowner or those who control the land. Because of the advance notice to the landowner, all affected individuals will be aware of the flights.4848-9229-2140.1

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Compared to operations conducted with aircraft or rotorcraft weighing far more than the sUAS, and carrying flammable fuel, any risk associated with these operations will be significantly less than those currently allowed with conventional aircraft operating at or below 500 feet AGL. Indeed, the low-altitude operations of the sUAS will maintain separation from operations of conventional aircraft that must comply with Section 91.119. 14 C.F.R. § 91.151(a): Fuel Requirements for Flight in VFR Conditions This regulation prohibits an individual from beginning “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 minutes; or (2) At night, to fly after that for at least 45 minutes.” The sUAS covered by this exemption request are powered by removable, rechargeable, lithium-polymer batteries that provide approximately the following numbers of minutes of powered flight: 23 (DJI Phantom 3 Advanced and DJI Phantom 3 Professional), 18 (DJI Inspire 1), up to 40 (DJI Matrice 100), 15 (DJI Spreading Wings S1000), and 40 (senseFly Ebee RTK). Without an exemption from § 14 CFR 91.151, flights by only the senseFly Ebee RTK and the DJI Matrice 100 would be permissible. The DJI Matrice 100 only can operate for 40 minutes with two high-capacity batteries and no camera or other payload. Under real operating conditions with a camera installed, no flights would be permissible under 14 C.F.R. § 91.151(a). Even for the senseFly Ebee RTK, without an exemption from 91.151 for it, flights would be limited to 10 minutes in duration. Given the limitations on the proposed operations, their locations, and the small size of the aircraft, a longer timeframe for flight in daylight VFR conditions is reasonable. An exemption from 14 CFR § 91.151(a) is safe and within the scope of a prior exemption. See Grant of Exemption to Lockheed Martin Corporation, Docket No. FAA-2014-10673 (allowing operations without compliance with 91.151(a). Operating the sUAS, without 30 minutes of reserve fuel does not engender the type of risks that Section 91.151(a) was meant to prevent given the size and speed at which the sUAS operate. The fact that they carry no pilot, passenger, or cargo also enhances their safety. As does the fact that the operations will be conducted within the VLOS of the PIC and in a strictly controlled location. In the unlikely event that the sUAS should run out of fuel, each aircraft is designed to land on its own (e.g., an auto-land function is initiated upon a critical battery warning). Given their design, weight and construction material, the risks are less than contemplated by the current regulation. An equivalent level of safety can be achieved by maintaining 5 minutes of reserve fuel, which would be more than adequate to return the UAS to its planned landing zone from anywhere in its operating area given that the systems are designed to be flown within direct VLOS of the PIC.4848-9229-2140.1

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Similar exemptions have been granted to other operators and systems. See Docket Nos. 2689F, 5745, and 10673. 14 C.F.R. §§ 91.9(b)(2); 91.203(a)-(b); Carriage of Civil Aircraft Airworthiness Certificate and Registration Sections 91.9(b) and 91.203(a)-(b) require an aircraft operator to carry airworthiness documents and other aircraft manuals onboard the aircraft at all times. Because the sUAS are small in size and contain no cabin or flight deck, carriage of such documents and manuals is impossible. The intent of these regulations is to ensure that the PIC has access to important documents during flight. Here, an equivalent level of safety is achieved if the PIC has access to the applicable sUAS manual(s), registration certificate and other required documents from the Ground Control Station from which he or she is operating the sUAS. This is consistent with a prior opinion of the FAA Office of the Chief Counsel, and other grants of exemptions for commercial UAS operations. See 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 FAA Grant of Exemption to Astraeus Aerial, Docket No. FAA-2014-0352, Exemption No. 11062, pp. 16-18. 14 C.F.R. §§ 91.405(a); 407(a)(1); 409(a)(2); 417(a): Maintenance Inspections Section 91.405(a) requires that an aircraft operator or owner “shall have that aircraft inspected as prescribed in subpart E of this part and shall between required inspections, except as provided in paragraph (c) of this section, have discrepancies repaired as prescribed in part 43 of this chapter....” Section 91.407 similarly makes reference to requirements in Part 43; Section 91.409(a)(2) requires an annual inspection for the issuance of an air worthiness certificate. Section 91.417(a) requires the owner or operator to keep records showing certain maintenance work that has been accomplished by certificated mechanics, under Part 43, or licensed pilots and records of approval of the aircraft for return to service. An equivalent level of safety will be achieved because the sUAS are small in size, will solely operate in restricted predetermined areas, and are not mechanically complex devices. Ursa will perform all maintenance and inspections in accordance with the manufacturers’ manuals and any required manufacturer Safety or Service Bulletins. In addition, the PIC will conduct a pre-flight inspection of the sUAS 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 sUAS and no flights will occur unless and until all flight critical components of the sUAS have been found to be airworthy and in a condition for safe operation. A functional flight test will be conducted following the4848-9229-2140.1

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replacement of any flight-critical components. The PIC who conducts the functional test flight will make an entry for the flight in the aircraft records. Ursa will follow the manufacturers’ aircraft/component, maintenance, overhaul, replacement, inspection, and life limit requirements for all applicable components identified by each manufacturer. In addition, Ursa will document and maintain a record of sUAS maintenanceunder this grant of exemption. Finally, Ursa will incorporate any additional required hightime component maintenance and replacement requirements into its maintenance practices that are requested by DJI, senseFly, and/or the FAA.4848-9229-2140.1

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APPENDIX B

URSA OPERATING RESTRICTIONS AND LIMITATIONS

1) Operations shall be limited to the following aircraft : DJI Phantom 3 Advanced, DJI Phantom 3 Professional, DJI Inspire 1, DJI Matrice 100, DJI Spreading Wings S1000, and senseFly Ebee RTK. The highest maximum weight capacity is 11 kilograms (22 pounds). Proposed operations of any other aircraft will require a new petition or a petition to amend this grant. 2) The sUAS shall not be flown at a ground speed exceeding 50 mph or no more than the maximum permissible operating speed required by the manufacturer, whichever is less. 3) Above Ground Level (“AGL”) altitude shall be restricted to 400 feet. All altitudes reported to ATC shall be in feet AGL. 4) The sUAS shall be operated within Visual Line-of-Sight (“VLOS”) of the PIC and visual observer at all times. The PIC must use human vision unaided by any device other than corrective lenses, as specified on the PIC’s FAA-issued medical certificate. 5) All operations must utilize a visual observer. The visual observer may be used to satisfy the VLOS requirement as long as the PIC maintains VLOS capability. The observer and PIC must be able to communicate verbally at all times. The PIC must be designated before the flight and cannot transfer his or her designation for the duration of the flight. The PIC must confirm that the visual observer can perform the functions required. 6) If a discrepancy exists between these Operating Restrictions and Limitations and the conditions and limitations in the granted exemptions, the conditions and limitations in the granted exemptions shall take precedence and must be followed. 7) Prior to each flight the PIC must inspect the sUAS to confirm that it is in a condition for safe flight. The PIC shall not operate the aircraft if the inspection reveals a condition that affects the safe operation of the sUAS until the necessary maintenance has been performed and the sUAS is found to be in a condition for safe flight. The Ground Control Station (“GCS”) shall be included in the preflight inspection. All maintenance and alternations must be properly documented in the aircraft records. 8) Any sUAS that has undergone maintenance or alterations that affect the sUAS operation or flight characteristics (e.g., replacement of a flight critical component) must undergo a functional test flight. The PIC who conducts the functional test flight must make an entry in the sUAS aircraft records of the flight.4848-9229-2140.1

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9) Ursa must follow the manufacturer’s UAS aircraft/component maintenance, overhaul, replacement, inspection, and life limit requirements, with particular attention to flight critical components that may not be addressed in the manufacturer’s manuals. 10) Maintenance, inspection, and alterations must be noted in the aircraft logbook, including total flight hours, description of work accomplished, and the signature of the authorized sUAS technician returning the sUAS to service. 11) sUAS technicians must document all training received. 12) sUAS maintenance technicians must make a record entry in the sUAS logbook or equivalent document of the corrective action taken against discrepancies discovered between inspections. 13) The PIC must possess at least a private pilot certificate or a sport pilot certificate and at least a current third-class medical certificate. The PIC must also meet the flight review requirements specified in 14 C.F.R. § 61.56 in an aircraft in which the PIC is rated on his or her pilot certificate. 14) Ursa will not permit any PIC to operate the sUAS unless and until that PIC has demonstrated that the PIC is able to safely operate the sUAS in a manner consistent with how the sUAS will be operated pursuant to this exemption, including evasive and emergency maneuvers and maintaining appropriate distances from people, vessels, vehicles and structures. 15) Prior to the operation, the PIC must have accumulated and logged a minimum of 1 hour as sUAS pilot operating the sUAS and three take-offs and three landings within the preceding 90 days. 7 16) Prior to operations, a flight demonstration administered by an Ursa-approved and qualified pilot must be successfully completed and documented. This documentation must be available for review upon request by the Administrator.

7 Training, proficiency, experience-building, and take-off and landing currency flights can be conducted under this grant of exemption to accomplish the required flight time and 90 day currency. During training, proficiency, experience building, and take-off and landing currency flights all persons not essential for flight operations are considered nonparticipants and the operator must operate the sUAS with appropriate distance from nonparticipants in accordance with 91 C.F.R. § 91.119.4848-9229-2140.1

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17) The sUAS shall not be operated directly over any person, except authorized and consenting individuals, below an altitude that is hazardous to persons or property on the surface in the event of a sUAS failure or emergency. 18) Operating of the sUAS may be conducted at distances less than 500 feet from participating persons, vessels, vehicles or structures that perform an essential function in connection with these special purpose operations. Operations closer than 500 feet from the PIC, visual observer, operator trainees, and essential persons, are permitted when operationally necessary; but never so close as to present an undue hazard, per § 91.119(a). 19) Operations of the sUAS may be conducted at distances less than 500 feet from vessels, vehicles, or structures so long as the owner/controller grants such permission and the operation closer to these objects presents no safety hazard to nonparticipating persons or property. 20) Operation of the sUAS must be conducted at least 500 feet from all nonparticipating persons, vessels, vehicles, and structures. 21) If the sUAS loses communications or loses its GPS signal, the sUAS must return to a pre-determined location within the security perimeter and land or be recovered. 22) The sUAS must abort the flight in the event of unpredicted obstacles or emergencies. 23) The PIC is prohibited from beginning an sUAS flight unless (considering wind and forecast weather conditions) there is enough power to fly to the intended point of landing and, assuming normal cruising speed, to fly after that for at least 5 minutes. 24) Ursa shall obtain an Air Traffic Organization (ATO) issued Certificate of Waiver of Authorization (COA) prior to conducting any operation for any flights not covered by the Blanket COA for any Operator issued a valid Section 333 Grant of Exemption applicable to flights less than 200 feet Above Ground Level. This COA will also require the filing of the NOTAM not more than 72 hours in advance, but not less than 48 hours prior to the operation. 25) All aircraft operated in accordance with the requested exemption must be identified by serial number, registered in accordance with 14 C.F.R. Part 47, and have identification (N-Number) markings in accordance with 14 C.F.R. Part 45, Subpart C. Markings shall be as large as practicable. 26) Each sUAS must comply with all manufacturer System and Safety Bulletins.4848-9229-2140.1

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27) The preflight inspection shall account for all discrepancies (i.e., inoperable components, items, or equipment) not covered in the relevant pre-flight inspection sections of the manufacturer’s operating manual. 28) The radio frequency spectrum used for operation and control of the sUAS must comply with Federal Communication (FCC) or other appropriate government oversight agency requirements. 29) The documents required under 14 C.F.R. §§ 91.9 and 91.203 shall be available to the operator at the Ground Control Station of the sUAS any time the aircraft is operating. These documents must be made available to the Administrator or any law enforcement official upon request. 8 30) The sUAS must remain clear and yield the right of way to all other manned operations and activities at all times (including, without limitation, ultralight vehicles, parachute activities, parasailing activities, hang gliders, etc.). 31) Operations shall occur during Visual Flight Rules Meteorological Conditions (VMC); flights under special visual flight rules (SVFR) shall not be conducted. UAS operations may not be conducted during night, as defined by 14 C.F.R. § 1.1. 32) sUAS shall not be operated from any moving device or vehicle. 33) sUAS shall 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. 34) Operations shall not occur in congested or densely populated areas. The sUAS may not operate in Class B, C, D or E airspace without written approval from the FAA. Operations will not be conducted within a 5 NM range of the geographic center of an airport as denoted on a current FAA-published aeronautical chart unless permission has been obtained from the local control tower or, in the case of a non-towered airport, written notice has been provided to the airport’s management, and the operation is conducted in accordance with a NOTAM as required by the grant of this exemption.

8 This is consistent with an FAA Office of Chief Counsel Opinion, dated August 8, 2014, and prepared by Dean E. Griffith, AGC-220, in which it was acknowledged that the intent of 14 C.F.R. § 91.9(b) and 91.203(a), (b) is met if the PIC of the sUAS has access to the aircraft flight manual, registration certificate, and other required documents from the ground control station from which he or she is operating the sUAS. 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 FAA Grant of Exemption to Astraeus Aerial, Docket No. FAA-2014-0352, Exemption No. 11062,pp. 16-18.4848-9229-2140.1

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35) Take-off and landing operations shall be conducted over private and/or controlled-access property (i.e. no unauthorized persons). Permission from the landowner, controller, manager, or authorized representative will be obtained for each flight to be conducted. 36) Any incident, accident, or flight operation that transgresses the lateral or vertical boundaries of the operational area as defined by the applicable COA shall be reported to the FAA’s UAS Integration Office (AFS-80) within 24 hours. Accidents shall be reported to the National Transportation Safety Board (NTSB) per instructions contained on the NTSB Web site: www.ntsb.gov.