# KH**~LLERAND**HECKMANLLP

. ServingBusiness throughLawandScience®
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October 2, 2014 Writer'sDirectAccess Greg Kunkle (202) 434-4178 kunkle@khlaw. com U.S. Department ofTransportation, Docket Operations WestBuilding Ground Floor, Roomw12-140 1200 NewJerseyAvenue, SE., Washington, DC 20590
Re: 2012 FAAReform Act Section 333 Exemption Request
Dear Sir orMadam:
Attachedplease fmd ChevronUSA, Inc.'srequest for an exemption from the listed FederalAviationRegulationsto allow commercial operation ofits SmallUnmanned Aircraft Systems ("sUASs") for aerial imaging for safetyand monitoring ofcontrolled access oiland gas facilities. This exemptionrequest is exclusively for the use oftheUAS manufacturedby Skycatch, Inc., a SanFrancisco based company. Also attachedtothis letter is the SkycatchUAS FlightManual, whichoutlinesthe operatingrequirements, limitations, andtechnical specifications for the Skycatch system. Chevronhas reviewedthis Manual and has found itto be acceptable for sUAS operations onits secureproject sites. Applicant submits this manual as a Confidential document under 14 CFR 11.35 (b) as the entire manual contains proprietaryinformationthatthe applicant has not and will not share with others. TheManual contains operating conditions and procedures that are not available tothe public and areprotected from releaseundertheFreedom oflnformationAct 5 USC 552 et. seq. Thankyoufor yourtime and consideration, and please let me know ifyouhave any questions.

Washington, D.C. This .document was delivered electronically. Sincerely,**./'?'~,-/··­** //"/ /. .,-

# >'l~~.**~//_.·" //f!/~~,,··"**  g ry nkle Keller and Heckman

### LLP Counselfor ChevronUSA, Inc.

# ~~J),. GabrielDobbs Skycatch, Inc.

Brussels SanFrancisco www.khlaw.com Shanghai1001 G Street, N.W. Suite 500 West Washington, D.C. 20001 tel. 202.434.4100 fax 202.434.4646 October 2, 2014
U.S. Department ofTransportation Docket Management System 1200 NewJersey Ave., SE Washington, DC 20590 GregKunkle Writer'sDirectAccess (202) 434-4178 kunkle@ khIaw.com

Re: Exemption Request Section 333 ofthe FAA Reform Act and Part 11 oftheFederal Aviation Regulations from 14 C.F.R. 61.113 (a) & (b); 91.103(b); 91.119; 91.121; 91.151(a); 91.405 (a); 91.407(a) (1); 91.409 (a) (2); 91.417 (a) & (b).

Dear Sir or Madam:
Pursuant to Section 333 ofthe FAA Modernization and Reform Act of2012 (the "Reform Act") and 14 C.F.R. Part 11, Chevron USA Inc. ("Chevron") 1hereby applies for an exemption from the Federal Aviation Regulations ("FARs") listed in Section Ibelow to allow commercial operation ofits Small Unmanned Aircraft Systems ("sUASs") for aerial imaging and safety and monitoring ofcontrolled access oil and gas facilities,2 so long as such operations are conducted within and underthe conditions outlined herein or as may be established by the FAA as required by Section 333 ofthe Reform Act. As detailed in this document and the attached Flight Manual, the requested exemption would permit the operation ofsUAS under controlled conditions in airspace that is 1) limited, 2) predetermined, 3) controlled as to access, and 4) would provide safety enhancementsto the already best practices safetyprotocols followed by Chevron at each one ofits oil and gas facilities. Approval ofthis exemption would thereby enhance safety and fulfill the Secretary ofTransportation's (the FAA Administrator's) responsibilities to "

...establish requirements for the safe operation ofsuch aircraft systems in the national airspace system." Section 333(c) ofthe Reform Act.

1 Chevron is a subsidiary ofChevron Corporation, which is one ofthe world's largest energy companies with oil and natural gas exploration, production, pipeline transportation, refining, and marketing activities worldwide.

2 Such facilities might include oil and gas exploration and production fields, offshore platforms, refineries, etc., but would not include facilities open to the public.The name and address ofthe applicant is: Chevron USA Inc. Kenneth Lewis PH: 661-632-1324 Email: ken.lewis@chevron.com Address: 9525 Camino Media, Bakersfield, CA 93311 Questions regarding this request should be forwarded to: Greg Kunkle Keller and Heckman LLP PH: 202-434-4178 Email: kunkle@khlaw.com Address: 1001 G StreetNW, Suite 500 West, Washington, D.C. 20001
I. REGULATIONS FROM WHICH THE EXEMPTION IS REQUESTED

o 14 C.F.R. 61.113 (a) & (b) o 14 C.F.R. 91.103 o 14 C.F. R. 91.119 o 14 C.F.R. 91.121 o 14 C.F.R. 91.151 (a) o 14 C.F.R. 91.405 (a) o 14 C.F.R. 91.407 (a) (1) o 14 C.F.R. 91.409 (a) (2)

. o 14 C.F.R. 91.417 (a) & (b)

II. STATUTORYAUTHORITY FOREXEMPTIONS
The Federal Aviation Act expresslygrants the FAA authorityto issue exemptions. This statutory authority includes exempting civil aircraft, as the term is defined under §40101 oftheAct, including sUASs, from the requirement that all civil aircraft must have a current airworthiness certificate. The Administratormay grant an exemption from a requirement ofa regulation prescribed under subsection (a) or (b) ofthis section orany sections 44702-44716 ofthis Title ifthe Administrator finds the exemption in the public interest.3 Section 333(b) ofthe Reform Act assists the Secretary in determining whether sUASs may operate in the National Airspace System ("NAS") without creating a hazard to the user, the public, or athreat to national security. In making this determination, the Secretary must consider:

• The sUAS's size, weight, speed, and operational capability;

• Whether the sUAS operates within the visual line ofsight ofthe operator;

3 See 49 U.S.C. §4470l(f)See also 49 USC §447ll(a); 49 USC §44704; 14 CFR §91.203(a)(l).
2• Whether the sUAS operates outside ofhighlypopulated areas and away from close proximityto airports. Ifthe Secretarydetermines that a sUAS "mayoperate safely in the national airspace system, the Secretary shall establish requirements for the safe operation ofsuch aircraft in the national airspace system."4 Chevron's proposed sUASs are multi-rotorvehicles, weighing 10 or fewer lbs. including payload. They will operate under normal conditions at a speed ofno more than 50 mph and have the capability to hover, and move in the vertical and horizontal plane simultaneously. They will operate only in line ofsight and will operate onlywithin the sterile area described in the Confidential Skycatch Flight Manual, attached as Exhibit 1 (hereinafter "the Manual"). Such operations will ensure that the sUASs will "not create a hazard to users ofthe national airspace system orthe public."5 Giventhe small size ofthe sUASs involved and the area within whichthey will operate, Chevron's application falls squarely withinthe zone ofsafety (anequivalent level ofsafety) in which Congress envisioned thatthe FAA must, by exemption, allow commercial operations ofsUASsto commence. Also due to the small size ofthe sUASs and the low altitudes and limited areas in which Chevron's sUASs will operate, approval ofthe application presents no national security issue. Given the clear direction in Section 333 ofthe Reform Act, the authority contained in the Federal Aviation Act, as amended; the strong equivalent level ofsafety surrounding the proposed operations, and the significant public benefit, including enhanced safety, the grant oftherequested exemptions is in the public interest. Accordingly, Chevron respectfullyrequests thatthe FAA grant the requested exemption**~~~~~** . 

### III.PUBLIC INTEREST This exemption application is expressly submitted to fulfill Congress' goal in passing Section 333(a) through (c) ofthe Reform Act. This law directs the Secretary of Transportation to consider whether certain unmanned aircraft systems may operate safely in the NAS before completion oftherulemaking required under Section 332 ofthe Reform Act. Bygranting an exemption the FAA will fulfill Congress's intent ofallowing UASs to operate with significant safetyprecautions in low risk environments. The use ofsUASs can significantlypromote safe and effective oil and gas operations. For example, the use ofsUASs can reduce the risk to workers while inspecting, surveying, ormonitoring wells, pipelines, and other energy facilities. sUASs can inspect, photograph, and collect dataon inaccessible areas that otherwise would require worker inspection, in addition to providing facility security, spill, and emergency response reconnaissance. sUASs can also provide high resolution aerial imagery, elevation measurement, mapping, and thermal imagery data. Reducing manned flight and human inspection ofsuch sites through sUAS use for site imaging will reduce risk to workers and ground personnel and create an improved safety operating environment.

4 Id. §333(c). 5 ReformActSection 333 (b).
3Additionally, sUASs could reduce the use offixed-wing aircraft to monitor sites. The sUASs Chevron proposesto fly in this application weigh less thanten pounds, and carry no combustible material onboard, as opposedto much larger conventionally powered aircraft that Chevron currently uses to monitor its facilities. Reducing the use of manned aircraft, or supplementing such flights through sUAS operations, presents the potential for a safety increase for Chevron's workers and the public. Lastly, sUASs reduce the environmental impact by dramatically decreasing the energy used for aerial imaging and data collection over an oil and gas site. Operation of lightweight sUASs powered by rechargeable lithium ion batteries offers improved efficiencies as compared to the operation ofotheraircraft and vehicles that consume gasoline and present a significantly louder noise signature. IV.EQUIVALENT LEVEL OF SAFETY
Chevronproposes thatthe exemptionrequested herein applyto civil aircraft that have the characteristics and that operate with the limitations listed herein. These limitations provide for at least an equivalent oreven higher level ofsafetyto operations underthe current regulatory structure because the proposed operations represent a safety enhancementto the already safe protocols followed at oil and gas facilities and imaging and surveying operations conducted with other conventional aircraft. Chevron will be bound bythe following limitations when conducting its sUAS operations underthis FAA issued exemption: 1. The sUAS will weigh less than 10 pounds. 2. Flights will be operated within visual line ofsight ofa pilot and/or observer. 3. Maximum total flight time for each operational flight will be 30 minutes. The UAS calculates batteryreserve in real time, and will returnto its ground station with at least 20% battery powerreserve should that occurpriorto the 30 minute limit. 4. Flights will be operated at an altitude ofno more than 400 feet AGL. 5. Minimum crew for each operation will consist ofthetrained sUAS Pilot who will keep the sUAS within his visual line ofsight at all times and one visual observer. 6. The sUAS Pilot will be trained in flight, operations, and safetyprocedures as detailed in the Flight Manual. 7. sUAS Pilot will be Pilot in Command (PIC). 8. The PIC will hold at least a private pilot certificate and at least a current third-class medical certificate. 9. The sUAS will only operate within a confined "Sterile Area" as defined in the Manual. The Manual also requires the establishment ofa "SecurityPerimeter" for the flight operations area. 10. Notification offlight operations to personnel at the facility will be made through posted signs and onsite Job SafetyAnalysis meetings. 11. Notification offlight operations to the operatorofChevron's manned aerial patrol flights priorto flight commencement. 12. The UAS will not be operated at a distance from clouds less than 500' below or 2000' horizontal, orwhen visibility is less than 3 statute miles. 13. The operatorwill obtain a Certificate ofWaiver orAuthorization (COA) from the FAA's Air Traffic Organization (ATO) priorto conducting any operations.

414. Pilot will have been trained in operation ofUASs generally and received up-to-date information onthe particular sUAS to be operated as required in the Manual. 15. Operations will be limitedto Chevron properties at which third partyaccess is controlled. A buffer will be provided as described in the Manual. 16. Ifthe sUAS loses communications orloses its GPS signal, it will have capabilityto returnto a pre-determined location within the SecurityPerimeter and land. 17. The sUAS will have the capabilityto abort a flight in case ofunpredicted obstacles or emergencies. The UAS will host an on-board parachute that can be deployed in the event ofmotor loss oremergency. 18. The radio frequency spectrum used for operation and control ofthe UAS will comply with the rules and regulations ofthe Federal Communications Commission (FCC).
V. DESCRIPTION OF SPECIFIC REGULATIONS
A. 14 C.F.R. §61.113 (a) & (b): Private pilot privileges and limitations: Pilot in command
Sections 61.113 (a) & (b) limit private pilots to non-commercial operations. Chevron proposes that its sUAS PIC will hold at least a private pilot certificate and at least a current third-class medical certificate. Because the sUAS will not carry a pilot or passengers, the proposed operations can achieve the equivalent level ofsafety ofcurrent operations byrequiring the PIC operatingthe aircraft to have a private pilot's license ratherthan a commercial pilot's license to operatethis sUAS. Unlike a conventional aircraft that carries the pilot and passengers, the sUAS is remotely controlled with no living thing on board. The areas ofoperation will be restrictedto Chevron properties at whichthird party access is controlled, and all flights are planned and coordinated in advance as set forth in the Manual. The level ofsafetyprovided bythe requirements included in the Manual exceedsthat provided by a single individual holding a commercialpilot's certificate operating a conventional aircraft. The risks associated with the operation ofthe sUAS are so diminished from the level ofrisk associated with commercial operations contemplated byPart 61 when drafted, that allowing operations of the sUAS as requested with a private pilot as the PIC exceedsthe present level ofsafety achieved by 14 C.F.R. §61.113 (a) & (b).
B. 14 C.F.R. §91.103: Preflight action
This regulationrequires each pilot in commandtake certain actions before flight to insure the safety offlight. An exemption is needed from this requirement as the PIC willtake separate preflight actions, including checking for weather conditions, checking flight batteryrequirements, checking takeoffand landing distances, etc. These actions will provide an equivalent level ofsafety. C. 14 C.F.R. §91.119: Minimum safe altitudes
Section 91.119 establishes safe altitudes for operation ofcivil aircraft. Section 91.119 (d) allows helicopters to be operated at less than the minimums prescribed, provided the person operating the helicopter complies with anyroute oraltitudes

5prescribed for helicopters bythe FAA. This exemption is for a multi-rotor craftthat flies similarlyto a helicopter, with vertical take-offand vertical landing, which will operate at altitudes up to 400' AGL, so an exemption may be needed to allow such operations. As described in the Manual, the sUAS will never operate at altitude higherthan 400' AGL and will be limited to the areawith the securityperimeter, where buildings and people will not be exposed to operations withouttheir notification as described herein.
The equivalent level ofsafetywill be achieved given the size, weight, speed ofthe sUAS as well as the location where it is operated. Flights will over Chevronproperties at which third partyaccess is controlled. Because ofthe advance notice to onsite personnel as outlined in the Manual, all affected individuals will be aware ofthe planned flight operations. Compared to flight operations with aircraft orrotorcraft weighing far more thanthe maximum 10 lbs. proposed herein and flammable fuel, any risk associated with Chevron's operations is far less than those presentlypresented with conventional aircraft. In addition, the low-altitude operations ofthe sUAS will ensure separationbetweenthese sUAS operations and the operations ofconventional aircraft that must complywith Section 91.119. Notification offlight operations will be provided to the operatorof Chevron's manned aerialpatrol flights, which have a low altitude waiver allowing for flight below 500' AGL.
D. 14 C.F.R. §91.121: Altimeter settings
This regulation requires each person operating an aircraft to maintain cruising altitude byreference to an altimeterthat is set "

...to the elevation ofthe departure airport oran appropriate altimeter setting available before departure." As the sUAS may not have a barometric altimeter, but instead a GPS altitude read out, an exemption may be needed. An equivalent level ofsafety will be achieved bythe operator, pursuant tothe Manual and SafetyCheck list, confirming the altitude ofthe launch site shown onthe GPS altitude indicatorbefore flight.
E. 14 C.F.R. §91.151 (a): Fuel requirements for flight in VFR conditions
Section 91.151 (a) outlines fuel requirements for beginning a flight in VFR conditions. Chevron's sUAS is limited to operations in sterile and controlled environments as outlined in the Manual, and has a limited range and flight time which require an exemption from 14 C.F.R. 91.151(a).
Thebattery powering the sUAS provides approximately 35 minutes ofpowered flight. To meet the 30 minute reserve requirement in 14 C.F.R. §91.151, sUAS flights would be limited to approximately 5 minutes in length. Given the limitations onthe sUAS's proposed flight area and the location ofits proposed operations within a predetermined area, a longer time frame for flight in daylight or night VFR conditions is reasonable.
Chevron believes that an exemption from 14 C.F.R. §91.151(a) falls within the

6scope ofprior exemptions.6 Operating the sUAS, in a controlled area with less than 30 minutes ofreserve fuel, does not engenderthe type ofrisks that Section 91.151(a) was intended to alleviate given the size and speed ofthe sUAS. Additionally, limiting sUAS flights to 5 minutes would greatly reduce the utility for which the exemption will be granted.
An equivalent level ofsafetycan be achieved by limiting flights to 30 minutes, or enough battery reserve to ensure that the sUAS lands at the ground station with at least 20% ofbattery power (as determined by the onboard monitoring system and PIC), whichever happens first. Because ofthe limited operating area under which sUAS flights will be conducted, this restriction will be morethan adequate to ensure return ofthe sUAS to its planned landing zone. Similar exemptions have been granted to other operations, including Exemptions 2689F, 5745, 10673, and 10808.
F. 14 C.F.R. §91.405 (a); 407 (a)(l); 409 (a)(2); 417 (a) & (b): Maintenance inspections
These regulations require that an aircraft operatororowner "shall have that aircraft inspected as prescribed in subpart E ofthis part and shall between required inspections, except as provided in paragraph (c) ofthis section, have discrepancies repaired as prescribed in part 43 ofthis chapter.

..," and others shall inspect ormaintain the aircraft in compliance with Part 43.
Given that these section and Part43 apply onlyto aircraft with an airworthiness certificate, these sections will not applyto Chevron. Maintenance will be accomplished by the operatorpursuant to the flight manual and operating handbook as referenced in the Manual. An equivalent level ofsafetywill be achieved because these sUASs are very limited in size and will carry a small payload and operate only in authorized areas for limited periods oftime. Ifmechanical issues arise the sUAS can land immediately and will be operating from no higherthan 400 feet AGL. As provided in the Manual, the operatorwill ensure that the sUAS is in working orderpriorto initiating flight, perform required maintenance, and keep a log ofany maintenance performed. Moreover, the operatoris the person most familiar with the aircraft and best suited to maintain the aircraft in an airworthy conditionto provide the equivalent level ofsafety. 

## *******
Pursuantto 14 C.P.R. Part 11, the following summary is provided for publication in the Federal Register, should it be determined that publication is needed: Applicant seeks an exemption from the following rules: 14 C.P.R. §§ 61.113( a) & (b); 91.103(b); 91.119; 91.121; 91.151(a); 91.405 (a); 91.407 (a) (1); 91.409 (a) (2); 91.409 (a) (2) and 91.417 (a) & (b) to operate commercially a small unmanned vehicle (10 lbs. or

6 See Exemption 10673 (allowing Lockheed Martin Corporation to operate without compliance with FAR 91.151 (a)).
7less) for aerial imaging and monitoring ofcontrolled access oil and gas facilities. Approval ofexemptions allowing commercial operations ofsUASs to monitor oil and gas facilities will enhance safety by reducing risk. Conventional aerial monitoring by aircraft impacts the environment. In contrast, a sUAS weighing fewer than 10 lbs. and powered by batteries eliminates virtually all ofthat risk and environmentalimpact given the reduced mass and lack ofcombustible fuel carried onboard. The sUAS will carry no passengers orcrew and, therefore, will not exposethemto the risks associated with manned aircraft flights. Although Chevron does not foresee replacing its manned flight

· operations with sUASs at this time, Chevron hopes, that overtime, sUASs may reduce or

supplement such manned programs. The operation ofsUASs, weighing less than 10 lbs., conducted in the strict conditions outlined above, will provide an equivalent level ofsafety supporting the grant ofthe exemptions requested herein, including exempting the applicant from the requirements of Part 21 and allowing commercial operations. These lightweight aircraft operate at slow speeds, close to the ground, and in a sterile environment and, as a result, are safer than conventional operations conducted with fixed-wing aircraft operating in close proximity to the ground and people. Privacy
All flights will occurover Chevron properties at which third party access is controlled, and signs will be posted notifYing onsite personnel ofthe sUAS flyover. 

## *******
Satisfaction ofthe criteria provided in Section 333 ofthe Reform Act of2012--size, weight, speed, operating capabilities, proximityto airports and populated areas and operation within visual line ofsight and national security- provide more than adequate justification for the grant ofthe requested exemptions allowing commercial operation of applicant's sUASs in the motion picture and television industrypursuant to the Manual appended hereto.

Gregory Kunkle Keller and Heckman LLP Counsel for Chevron USA, Inc.

# ~'fj-J4 Gabriel Dobbs Skycatch, Inc.

8