October 1, 2015

Exemption No. 13057

Regulatory Docket No. FAA−2015−2881

Mr. Jeff Taylor

VP of Property InSight

Xactware Solutions, Inc.

1100 West Traverse Parkway

Lehi, UT 84043

Dear Mr. Taylor:

This letter is to inform you that we have granted your request for exemption. It transmits our 

decision, explains its basis, and gives you the conditions and limitations of the exemption, 

including the date it ends.

By letter dated June 9, 2015, you petitioned the Federal Aviation Administration (FAA) on 

behalf of Xactware Solutions, Inc. (hereinafter petitioner or operator) for an exemption. The 

petitioner requested to operate an unmanned aircraft system (UAS) to conduct imagery and 

analytics in underwriting, catastrophe response, roof inspection, and claim resolution.

See the docket, at www.regulations.gov, for the petition submitted to the FAA describing the 

proposed operations and the regulations that the petitioner seeks an exemption.

The FAA has determined that good cause exists for not publishing a summary of the petition 

in the Federal Register because the requested exemption would not set a precedent, and any 

delay in acting on this petition would be detrimental to the petitioner.

Airworthiness Certification

The UAS proposed by the petitioner are the Aerialtronics Altura Zenith ATX8, DJI Phantom 

2, Parrot Bebop.

In accordance with the statutory criteria provided in Section 333 of Public Law 112−95 in 

reference to 49 U.S.C. § 44704, and in consideration of the size, weight, speed, and limited 
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operating area associated with the aircraft and its operation, the Secretary of Transportation 

has determined that this aircraft meets the conditions of Section 333. Therefore, the FAA 

finds that relief from 14 CFR part 21, Certification procedures for products and parts, 

Subpart H—Airworthiness Certificates, and any associated noise certification and testing 

requirements of part 36, is not necessary.

The Basis for Our Decision

You have requested to use a UAS for aerial data collection1or/and closed set motion picture 

and filming. The FAA has issued grants of exemption in circumstances similar in all material 

respects to those presented in your petition. In Grants of Exemption Nos. 11062 to Astraeus 

Aerial (see Docket No. FAA−2014−0352), 11109 to Clayco, Inc. (see Docket No. 

FAA−2014−0507), 11112 to VDOS Global, LLC (see Docket No. FAA−2014−0382), and 

11213 to Aeryon Labs, Inc. (see Docket No. FAA−2014−0642), the FAA found that the 

enhanced safety achieved using an unmanned aircraft (UA) with the specifications described 

by the petitioner and carrying no passengers or crew, rather than a manned aircraft of 

significantly greater proportions, carrying crew in addition to flammable fuel, gives the FAA 

good cause to find that the UAS operation enabled by this exemption is in the public interest.

Having reviewed your reasons for requesting an exemption, I find that—

 They are similar in all material respects to relief previously requested in Grant of 

Exemption Nos. 11062, 11109, 11112, and 11213;

 The reasons stated by the FAA for granting Exemption Nos. 11062, 11109, 11112, and 

11213 also apply to the situation you present; and 

 A grant of exemption is in the public interest.

Our Decision

In consideration of the foregoing, I find that a grant of exemption is in the public interest. 

Therefore, pursuant to the authority contained in 49 U.S.C. 106(f), 40113, and 44701, 

delegated to me by the Administrator, Xactware Solutions, Inc. is granted an exemption from 

14 CFR §§ 61.23(a) and (c), 61.101(e)(4) and (5), 61.113(a), 61.315(a), 91.7(a), 91.119(c), 

91.121, 91.151(a)(1), 91.405(a), 91.407(a)(1), 91.409(a)(1) and (2), and 91.417(a) and (b), to 

the extent necessary to allow the petitioner to operate a UAS to perform aerial data collection. 

This exemption is subject to the conditions and limitations listed below.

 

1 Aerial data collection includes any remote sensing and measuring by an instrument(s) aboard the UA. 

Examples include imagery (photography, video, infrared, etc.), electronic measurement (precision surveying, RF 

analysis, etc.), chemical measurement (particulate measurement, etc.), or any other gathering of data by 

instruments aboard the UA.
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Conditions and Limitations

In this grant of exemption, Xactware Solutions, Inc. is hereafter referred to as the operator.

Failure to comply with any of the conditions and limitations of this grant of exemption will be 

grounds for the immediate suspension or rescission of this exemption.

1. Operations authorized by this grant of exemption are limited to the Aerialtronics 

Altura Zenith ATX8, DJI Phantom 2, Parrot Bebop when weighing less than 

55 pounds including payload. Proposed operations of any other aircraft will require a 

new petition or a petition to amend this exemption.

2. Operations for the purpose of closed-set motion picture and television filming are 

not permitted. 

3. The UA may not be operated at a speed exceeding 87 knots (100 miles per hour). The 

exemption holder may use either groundspeed or calibrated airspeed to determine 

compliance with the 87 knot speed restriction. In no case will the UA be operated at 

airspeeds greater than the maximum UA operating airspeed recommended by the 

aircraft manufacturer.

4. The UA must be operated at an altitude of no more than 400 feet above ground level 

(AGL). Altitude must be reported in feet AGL.

5. The UA must be operated within visual line of sight (VLOS) of the PIC at all times. 

This requires the PIC to be able to use human vision unaided by any device other than 

corrective lenses, as specified on the PIC’s FAA-issued airman medical certificate or 

U.S. driver’s license.

6. All operations must utilize a visual observer (VO). The UA must be operated within 

the visual line of sight (VLOS) of the PIC and VO at all times. The VO may be used 

to satisfy the VLOS requirement as long as the PIC always maintains VLOS 

capability. The VO and PIC must be able to communicate verbally at all times; 

electronic messaging or texting is not permitted during flight operations. The PIC 

must be designated before the flight and cannot transfer his or her designation for the 

duration of the flight. The PIC must ensure that the VO can perform the duties 

required of the VO.

7. This exemption and all documents needed to operate the UAS and conduct its 

operations in accordance with the conditions and limitations stated in this grant of 

exemption, are hereinafter referred to as the operating documents. The operating 

documents must be accessible during UAS operations and made available to the 

Administrator upon request. If a discrepancy exists between the conditions and 

limitations in this exemption and the procedures outlined in the operating documents, 
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the conditions and limitations herein take precedence and must be followed. 

Otherwise, the operator must follow the procedures as outlined in its operating 

documents. The operator may update or revise its operating documents. It is the 

operator’s responsibility to track such revisions and present updated and revised 

documents to the Administrator or any law enforcement official upon request. The 

operator must also present updated and revised documents if it petitions for extension 

or amendment to this grant of exemption. If the operator determines that any update 

or revision would affect the basis upon which the FAA granted this exemption, then 

the operator must petition for an amendment to its grant of exemption. The FAA’s 

UAS Integration Office (AFS−80) may be contacted if questions arise regarding 

updates or revisions to the operating documents.

8. Any UAS that has undergone maintenance or alterations that affect the UAS operation 

or flight characteristics, e.g., replacement of a flight critical component, must undergo 

a functional test flight prior to conducting further operations under this exemption. 

Functional test flights may only be conducted by a PIC with a VO and must remain at 

least 500 feet from other people. The functional test flight must be conducted in such 

a manner so as to not pose an undue hazard to persons and property.

9. The operator is responsible for maintaining and inspecting the UAS to ensure that it is 

in a condition for safe operation.

10. Prior to each flight, the PIC must conduct a pre-flight inspection and determine the 

UAS is in a condition for safe flight. The pre-flight inspection must account for all 

potential discrepancies, e.g., inoperable components, items, or equipment. If the 

inspection reveals a condition that affects the safe operation of the UAS, the aircraft is 

prohibited from operating until the necessary maintenance has been performed and the 

UAS is found to be in a condition for safe flight.

11. The operator must follow the UAS manufacturer’s maintenance, overhaul, 

replacement, inspection, and life limit requirements for the aircraft and 

aircraft components.

12. Each UAS operated under this exemption must comply with all manufacturer 

safety bulletins.

13. Under this grant of exemption, a PIC must hold either an airline transport, 

commercial, private, recreational, or sport pilot certificate. The PIC must also hold a 

current FAA airman medical certificate or a valid U.S. driver’s license issued by a 

state, the District of Columbia, Puerto Rico, a territory, a possession, or the Federal 

government. The PIC must also meet the flight review requirements specified in 

14 CFR § 61.56 in an aircraft in which the PIC is rated on his or her pilot certificate.
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14. The operator may not permit any PIC to operate unless the PIC demonstrates the 

ability to safely operate the UAS in a manner consistent with how the UAS will be 

operated under this exemption, including evasive and emergency maneuvers and 

maintaining appropriate distances from persons, vessels, vehicles and structures. PIC 

qualification flight hours and currency must be logged in a manner consistent with 

14 CFR § 61.51(b). Flights for the purposes of training the operator’s PICs and VOs 

(training, proficiency, and experience-building) and determining the PIC’s ability to 

safely operate the UAS in a manner consistent with how the UAS will be operated 

under this exemption are permitted under the terms of this exemption. However, 

training operations may only be conducted during dedicated training sessions. During 

training, proficiency, and experience-building flights, all persons not essential for 

flight operations are considered nonparticipants, and the PIC must operate the UA 

with appropriate distance from nonparticipants in accordance with 14 CFR § 91.119.

15. UAS operations may not be conducted during night, as defined in 14 CFR § 1.1. All 

operations must be conducted under visual meteorological conditions (VMC). Flights 

under special visual flight rules (SVFR) are not authorized.

16. The UA may not operate within 5 nautical miles of an airport reference point (ARP) as 

denoted in the current FAA Airport/Facility Directory (AFD) or for airports not 

denoted with an ARP, the center of the airport symbol as denoted on the current 

FAA-published aeronautical chart, unless a letter of agreement with that airport’s 

management is obtained or otherwise permitted by a COA issued to the exemption 

holder. The letter of agreement with the airport management must be made available 

to the Administrator or any law enforcement official upon request.

17. The UA may 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.

18. If the UAS loses communications or loses its GPS signal, the UA must return to a 

pre-determined location within the private or controlled-access property.

19. The PIC must abort the flight in the event of unpredicted obstacles or emergencies.

20. The PIC is prohibited from beginning a flight unless (considering wind and forecast 

weather conditions) there is enough available power for the UA to conduct the 

intended operation and to operate after that for at least 5 minutes or with the reserve 

power recommended by the manufacturer if greater.

21. Air Traffic Organization (ATO) Certificate of Waiver or Authorization (COA). All 

operations shall be conducted in accordance with an ATO-issued COA. The 

exemption holder may apply for a new or amended COA if it intends to conduct 

operations that cannot be conducted under the terms of the enclosed COA.
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22. All aircraft operated in accordance with this exemption must be identified by serial 

number, registered in accordance with 14 CFR part 47, and have identification 

(N−Number) markings in accordance with 14 CFR part 45, Subpart C. Markings must 

be as large as practicable.

23. Documents used by the operator to ensure the safe operation and flight of the UAS and 

any documents required under 14 CFR §§ 91.9 and 91.203 must be available to the 

PIC at the Ground Control Station of the UAS any time the aircraft is operating. 

These documents must be made available to the Administrator or any law enforcement 

official upon request.

24. The UA must remain clear and give way to all manned aviation operations and 

activities at all times. 

25. The UAS may not be operated by the PIC from any moving device or vehicle. 

26. All Flight operations must be conducted at least 500 feet from all nonparticipating 

persons, vessels, vehicles, and structures unless:

a. Barriers or structures are present that sufficiently protect nonparticipating persons 

from the UA and/or debris in the event of an accident. The operator must ensure 

that nonparticipating persons remain under such protection. If a situation arises 

where nonparticipating persons leave such protection and are within 500 feet of 

the UA, flight operations must cease immediately in a manner ensuring the safety 

of nonparticipating persons; and

b. The owner/controller of any vessels, vehicles or structures has granted permission 

for operating closer to those objects and the PIC has made a safety assessment of 

the risk of operating closer to those objects and determined that it does not 

present an undue hazard.

The PIC, VO, operator trainees or essential persons are not considered 

nonparticipating persons under this exemption.

27. All operations shall be conducted over private or controlled-access property with 

permission from the property owner/controller or authorized representative. 

Permission from property owner/controller or authorized representative will be 

obtained for each flight to be conducted.

28. Any incident, accident, or flight operation that transgresses the lateral or vertical 

boundaries of the operational area as defined by the applicable COA must be reported 

to the FAA's UAS Integration Office (AFS−80) within 24 hours. Accidents must be 

reported to the National Transportation Safety Board (NTSB) per instructions 

contained on the NTSB Web site: www.ntsb.gov.
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If this exemption permits operations for the purpose of closed-set motion picture and 

television filming and production, the following additional conditions and limitations apply.

29. The operator must have a motion picture and television operations manual (MPTOM) 

as documented in this grant of exemption.

30. At least 3 days before aerial filming, the operator of the UAS affected by this 

exemption must submit a written Plan of Activities to the local Flight Standards 

District Office (FSDO) with jurisdiction over the area of proposed filming. The 3-day 

notification may be waived with the concurrence of the FSDO. The plan of activities 

must include at least the following:

a. Dates and times for all flights;

b. Name and phone number of the operator for the UAS aerial filming conducted 

under this grant of exemption;

c. Name and phone number of the person responsible for the on-scene operation of 

the UAS;

d. Make, model, and serial or N−Number of UAS to be used;

e. Name and certificate number of UAS PICs involved in the aerial filming;

f. A statement that the operator has obtained permission from property owners 

and/or local officials to conduct the filming production event; the list of those 

who gave permission must be made available to the inspector upon request;

g. Signature of exemption holder or representative; and

h. A description of the flight activity, including maps or diagrams of any area, city, 

town, county, and/or state over which filming will be conducted and the altitudes 

essential to accomplish the operation.

31. Flight operations may be conducted closer than 500 feet from participating persons 

consenting to be involved and necessary for the filming production, as specified in the 

exemption holder’s MPTOM.

Unless otherwise specified in this grant of exemption, the UAS, the UAS PIC, and the UAS 

operations must comply with all applicable parts of 14 CFR including, but not limited to, 

parts 45, 47, 61, and 91.
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This exemption terminates on October 31, 2017, unless sooner superseded or rescinded.

Sincerely,

John S. Duncan

Director, Flight Standards Service

Enclosure
Scott S. Christie 

Partner 

T. 973.848.5388 

F. 973.297.3981 

schristie@mccarter.com 

McCarter & English, LLP 

Four Gateway Center 

100 Mulberry Street 

Newark, NJ 07102-4056 

T. 973.622.4444 

F. 973.624.7070 

www.mccarter.com 

BOSTON 

HARTFORD 

STAMFORD 

NEW YORK 

NEWARK 

EAST BRUNSWICK 

PHILADELPHIA 

WILMINGTON 

WASHINGTON, DC 

June 9, 2015 

McCARTER 

&ENGLISH 

ATTORNEYS AT LAW 

U.S. Department of Transportation 

Docket Management System 

1200 New Jersey Ave., SE 

Washington, D.C. 20590 

Re: Exemption Request Pursuant to Section 333 of the FMRA and 

Part 11 of the Federal Aviation Regulations, Seeking Exemption 

from 14 C.F.R. § 61.113(a); 14 C.F.R. § 91.7(a); 14 C.F.R. § 

91.119(c); 14 C.F.R. § 91.121; 14 C.F.R. § 91.151(a); 14 C.F.R. § 

91.405(a); 14 C.F.R. § 91.407(a)(1); 14 C.F.R. § 91.409(a)(1) & (2); 

14 C.F.R. § 91.417(a) & (b) 

Dear Sir or Madam: 

Pursuant to Section 333 of the FAA Modernization and Reform Act of 2012 

("FMRA") and 14 C.F.R. Part 11, Xactware Solutions, Inc. ("Petitioner" or 

"Xactware") hereby applies for an exemption from the listed Federal Aviation 

Regulations ("F ARs") and any others necessary to allow operation of its small 

Unmanned Aircraft Systems ("UAS") for both research and development ("R&D") 

and commercial use, so long as such operations are conducted within and under the 

conditions outlined herein. Xactware requests such authorization to conduct outdoor 

flight operations for its use of UAS for insurance functions, including using imagery 

and analytics in underwriting, catastrophe response, roof inspection, and claim 

resolution settings. These operations will help define the role of UAS technology in 

Xactware's business operations and will guide the company in the most appropriate 

implementation of such technology. Ultimately, incorporating UAS into Xactware's 

business processes will improve worker safety and expedite response and claim 

resolution for Xactware's customers. 

Xactware was founded in 1986 and provides computer software solutions for 

professionals involved in estimating all phases of construction and reconstruction of 

a building, including routine and emergency repairs. Xactware's flagship product is 

Xactimate®, its premier estimating system. Xactimate® assists contractors and 

insurance adjusters in estimating repairs much faster and more accurately than 

previously could be accomplished. Over time, Xactimate® has evolved into a highpowered software package complete with a patented plan-sketching program, and 

Xactware has become much more than just a provider of Xactimate®. Today 22 of 

the top 25 property insurance companies in the United States and all of the top ten 

Canadian insurers use Xactware property insurance claims tools. 

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Xactware features software solutions for every phase of a building's life: from 

remodeling to totally replacing a building, and from determining the cost of 

rebuilding a structure to preserving and repairing a home. Xactware users can work 

on a desktop, laptop, tablet, smartphone, or "on the cloud" using browser-based 

solutions. Estimating products are connected to a comprehensive set of tools that 

includes an assignment network, analytical reports, cost research, project 

management, and third-party products. The online training center provides users 

with high-quality training on Xactware solutions and the construction industry. 

Xactware invests heavily in research and development as well as in the quality of 

people who develop its products. 

Xactware requests this exemption for three purposes. First, Xactware seeks an 

exemption to permit the operation of small UAS for R&D at Xactware's own 

facilities. These operations will be done under controlled conditions in airspace that 

is (1) limited, (2) predetermined, and (3) controlled as to access. Such operations 

will give Xactware valuable information about how best to safely and efficiently 

deploy UAS to serve our customers. 

Second, Xactware seeks an exemption to permit the commercial operation of its 

UAS in real world situations within the tightly-controlled and limited airspace over 

the property boundaries of individual real estate parcels with permission of the 

owners of said parcels. These operations will enable Xactware to gather vital 

information related to using UAS for exterior structure inspection and analysis. 

Third, Xactware also requests an exemption to permit the commercial operation of 

its UAS in real world situations during and immediately following an actual 

catastrophe such as a tornado, hurricane, flood, mudslide, hail storm, wild fire, or 

other, similar event. In this scenario, Xactware's UAS operations would be 

coordinated with the FAA, local air traffic control ("ATC"), and the officials in 

charge of onsite emergency response. 

As detailed below, Xactware's proposed use ofUAS will occur under conditions that 

limit the likelihood of operations over members of the general public and ensure 

complete coordination with any manned aircraft operations. Furthermore, the FAA 

has issued a grant of exemption in circumstances similar in all material respects to 

those presented herein in Grant of Exemption Nos. 11188 and 11309. Accordingly, 

the reasons stated by the FAA for granting the enclosed Grant of Exemption Nos. 

11188 and 11309 also apply to this request for exemption which is in the public 

interest. 

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I. REQUEST FOR EXEMPTION TO USE UAS AT XACTWARE SITES 

A. Overview of Request to Use UAS at Sites Owned or Controlled by 

Xactware. 

Xactware requests an exemption to allow the use of UAS at Xactware's own 

facilities or on property that it either owns or leases. All such locations will be a 

minimum of 5 miles from any airport. During flight operations, the facility will not 

be open to the public and access will be restricted to Xactware employees or 

consultants directly engaged in related flight operations. UAS operations will occur 

in Class G airspace at altitudes of 400 feet or less. There may be uninhabited 

buildings on property which will enable Xactware to test how UAS will operate and 

capture images over various types of structures. 

The purpose of these flight operations will be for research, development and training 

to provide UAS pilots and ground crew experience in inhabited areas. The flights 

also will be conducted to determine how best to integrate UAS into the Xactware's 

existing aerial capture and remote sensing programs. Xactware will consider 

whether UAS may be used to capture imagery and other data to determine damage to 

roofs and structures, having contracted manned aircraft in the past for similar 

purposes. Such experience will permit Xactware to determine preferences for UAS 

deployment for any number of real world scenarios, including not only homeowners 

who have suffered losses, but also areas hit by catastrophes. 

Xactware's request for exemption to perform UAS flight operations at its own 

facilities also carries with it a number of benefits. Because none of the six FAAselected UAS test sites are located in Utah, it would be impractical for Xactware to 

use these locations at this time for R&D. The test sites are too distant and would 

cause Xactware to incur unnecessary expense. Additionally, Xactware's need for 

UAS is centered on residential and commercial roof inspections, and must occur by 

operating over residential and commercial type structures. Performing these flight 

operations at Xactware's facilities solves these issues and allows safe and 

economical R&D and training. 

The petitioner thus requests authorization to perform UAS operations at its own 

facilities or at sites that it controls. 

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B. Public Interest Benefits of Permitting Use ofUAS at Sites Owned 

or Controlled by Xactware. 

Xactware's request to operate UAS at its own facilities is in the public interest. 

Granting this petition advances Congress's goal of integrating civil UAS into the 

United States airspace safely. It also will allow flight operations to begin relatively 

quickly which is another of Congress's stated goals. Indeed, the UAS operations 

will allow Xactware to develop best practices for safety and flight operations using 

UAS systems currently available to consumers. 

In addition, flight operations at Xactware's facilities will not create a hazard to 

aviation or to the public. As previously stated, flight operations will be conducted 

under 400 feet above ground level and will be suspended immediately in the event 

that manned aircraft are near the airspace of the facility. Safety precautions will be 

taken such as geofencing the UAS within the boundaries of Xactware's facilities. 

The site will not be open to the public during flight operations, and Xactware's UAS 

will not fly over populated areas. Likewise, the flight operations do not create a 

threat to safety or security of the public due to the location and small size, minimal 

speed and load-carrying abilities ofUAS. 

II. REQUEST FOR EXEMPTION TO USE UAS OVER INDIVIDUAL 

REAL ESTATE PARCELS 

A. Overview of Request to Use UAS over Individual Real Estate Parcels. 

The second component of Xactware's exemption request involves UAS flight 

operations over private real estate parcels with permission of the owner of said 

parcels. The flight operations would again be in tightly-controlled and limited 

airspace within the property boundaries. These flight operations will enable 

Xactware to gather vital information related to using UAS for exterior structure 

inspection and analysis. All such locations will be a minimum of 5 miles from any 

airport. During flight windows, no one with the exception of the pilot in command 

("PIC"), the visual observer ("VO") and those directly involved in the UAS 

operations will be allowed to be in or around the outside of the building. UAS flight 

operations will occur in Class G airspace at altitudes of 400 feet or less. 

The purpose of these flights will be to capitalize upon the results of the R&D flights 

in real world scenarios and to gather imagery and other sensor data for use in 

Xactware's workflows. These operations will allow Xactware to gather data from 

different structure and building types in a normal business environment. Xactware 

has contracted manned aircraft in the past for similar purposes. Such experience will 

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permit Xactware to determine preferences for UAS deployment for highly diverse 

real world scenarios, which will be particularly instructive for UAS operations 

during catastrophes. 

Accordingly, Xactware requests authorization to perform flight operations using 

UAS on private real estate parcels with permission from the owner or controller of 

the parcels. 

B. Public Interest Benefits of Permitting Use ofUAS over Individual 

Real Estate Parcels 

Xactware's request to operate UAS at over private real estate parcels with 

permission of the owners is in the public interest. Granting this petition advances 

Congress's goal of integrating civil UAS into the United States airspace safely. It 

also will allow flight operations to begin relatively quickly which is another of 

Congress's stated goals. Indeed, the UAS operations will allow Xactware to develop 

best practices for safety and flight operations using UAS systems currently available 

to consumers. 

In addition, flight operations will not create a hazard to aviation or to the public. As 

previously stated, flight operations will be conducted under 400 feet above ground 

level and will be suspended immediately in the event that manned aircraft are near 

the airspace of the property. Safety precautions will be taken such as geofencing the 

UAS within the boundaries of the real estate parcel being examined. Likewise, the 

flight operations do not create a threat to safety or security of the public due to the 

location and small size, minimal speed and load-carrying abilities ofUAS. 

III. REQUEST FOR EXEMPTION TO USE UAS DURING AND AFTER 

ACTUAL CATASTROPHES 

A. Overview of Request to Use UAS During and After Catastrophes. 

Xactware requests exemption for the use of UAS both during and after real world 

catastrophes. The location and dates that catastrophes will occur cannot be 

predicted, and no test site or scheduled homeowner fly over can provide the scale, 

variability, complexity and unpredictability likely to occur during and after an actual 

catastrophe. Aerial imagery capture during and in the wake of a natural disaster is 

critical for processing insurance claims arising from such a disaster, and such 

imagery capture with an UAS as opposed to a manned aircraft is not only more 

efficient, but also more cost effective. Because Xactware services 22 of the top 25 

property insurance companies in the United States, its ability to capture aerial images 

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during and after a catastrophe also will facilitate the timely and comprehensive 

resolution of insurance claims. 

As outlined in the operating procedures below, in the event of a catastrophe, 

Xactware will coordinate with local A TC, the FAA, officials in change of on-scene 

emergency response, and all first responders to ensure that the use of its UAS can 

occur safely and without impeding public safety efforts. Xactware will cease its 

UAS operations immediately at the direction of the applicable officials. 

Furthermore, Xactware's UAS operations will be. conducted with notice to manned 

aircraft and will at all times defer to the operations of such aircraft. 

B. Public Interest Benefits of Permitting Use ofUAS During and After 

Catastrophes. 

Granting this exemption as requested by Xactware will facilitate real-world flight 

operations under unpredictable circumstances, thereby allowing Xactware to gain 

valuable experience in flight planning, flight operations and coordination with first 

responders and emergency personnel. Such experience, coupled with the cost 

savings of using a UAS as opposed to a manned aircraft, will translate into quicker, 

less costly, and more effective service to insureds adversely affected by catastrophes. 

Xactware's UAS operations in actual disaster conditions also may speed overall 

post-disaster relief assessments to the extent that the data gained from UAS flights is 

shared with first responders, thus relieving manned ground and aviation assets of that 

obligation so that they can focus on other vital tasks. Indeed, video footage obtained 

by Xactware from UAS operations could materially assist first responders secure 

valuable knowledge of the aftermath of a catastrophe, potentially saving lives. 

Operations will not create hazards for the public or for emergency response 

personnel because Xactware will coordinate with such personnel before, during and 

after flight operations. Nor will Xactware's UAS flights serve as an obstacle to 

manned flights since Xactware will always defer to the operation of manned aircraft 

in the relevant airspace. Furthermore, in order to properly alert other users of the 

airspace about Xactware's UAS operation, Xactware will request a Notice to Airman 

("NOT AM") as early as practicable prior to operations. 

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IV. THE FAA HAS LEGAL AUTHORITY TO GRANT THIS 

EXEMPTION REQUEST 

Xactware believes that granting this request will aid the FAA in fulfilling Congress' 

goal in passing Section 333 of the FMRA. Section 333 directs the Secretary of 

Transportation to consider whether certain UAS may operate safely in the national 

airspace system ("NAS") before completion of the rulemaking required under 

Section 332 of the FMRA. 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 UAS's size, weight, speed, and operational capability 

and whether operation will occur near airports or populated areas and within the 

visual line of sight of the operator. The FMRA illustrates Congress's intent to have 

the FAA issue exemptions and allow civil UAS, as long as they operate within the 

necessary safety parameters. 

In addition, 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, which includes UAS, from the 

requirement that all civil aircraft must have a current airworthiness certificate. The 

Administrator may grant an exemption from a requirement of a regulation prescribed 

under§§ 44701(a) or (b) or in§§ 44702-44716 ofthe Act if the Administrator finds 

the exemption to be in the public interest. 

V. APPLICATION INFORMATION 

The names and addresses ofthe applicant are: 

Xactware Solutions, Inc. 

Jeff Taylor 

VP of Property InSight 

Xactware Solutions, Inc. 

1100 West Traverse Parkway 

Lehi, UT 84043 

jctaylor@xactware.com 

801-932-8201 

Regulations from which the exemption is requested: 

14 C.F.R. § 61.113(a); 

14 C.F.R. § 91.7(a); 

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14 C.F.R. § 91.119(c); 

14 C.F.R. § 91.121; 

14 C.F.R. § 91.151(a); 

14 C.F.R. § 91.405(a); 

14 C.F.R. § 91.407(a)(l); 

14 C.F.R. § 91.409(a)(1) and (2); and 

14 C.F.R. § 91.417(a) and (b). 

VI. THE AIRCRAFT 

Xactware specifically proposes to conduct operations with the following UAS: 

A. Aerialtronics Altura Zenith ATX8 - the Altura Zenith ATX8 is a multirotor 

aircraft with a carbon fiber airframe. It can carry a maximum payload of 2.9 

kg and has a 5.6 kg take-off weight. The 16.600 mAh battery allows up to 45 

minutes of flight time with payloads of up to 2.9 kg. The maximum speed for 

the Zenith is 20 m/s and it features auto-takeoff and landing, auto return 

home and landing, GPS waypoint navigation and direction lock. The length 

and width of this aircraft is 23.6" x 23.6," and it stands up to 21.6" tall. 

B. DJI Phantom 2 - the DJI Phantom 2 is a multirotor aircraft with a plastic 

airframe. It can carry a maximum payload of 300 g and has a 1.2kg take-off 

weight. The 5.200 mAh battery allows up to 25 minutes of flight time. The 

maximum speed for the Phantom is 15 m/s and it features no fly zones and 

auto-return to home and landing. The dimensions of this aircraft are 29 x 29 

x 18 em. 

C. Parrot Bebop - the Parrot Bebop is a multirotor aircraft with a plastic 

airframe. It is fully self-contained at 400 g and has no additional payload 

capacity. The 1.200 mAh battery allows up to 22 minutes of flight time. The 

maximum speed for the Bebop is 13 m/s and it features auto-return to home. 

The dimensions of this aircraft are 28 x 32 x 3.6 em. 

VII. OPERATING PARAMETERS FOR UAS USE 

Xactware proposes that the exemption requested herein apply to civil aircraft that 

have the characteristics and that operate with the limitations listed herein. These 

limitations provide for at least an equivalent or even higher level of safety to 

operations under the current regulatory structure because the proposed operations 

represent a safety enhancement to the already safe operations conducted with 

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conventional aircraft. Further details about the aircraft and operating procedures are 

available in the Operations Manuals and Training Syllabus. 

The limitations and conditions to which Xactware agrees to be bound for UAS 

operations when conducting R&D at an Xactware site or for real-world commercial 

operations under an FAA issued exemption include: 

1. UAS operations will be conducted by a PIC holding, at a minimum, a private 

pilot certificate and a current third-class medical certificate. The PIC will 

also meet 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. 

2. UAS must be operated within the visual line of sight ("VLOS") of the PIC at 

all times. 

3. UAS operations must utilize a VO. The VO may be used to satisfy the 

VLOS requirement as long as the PIC always maintains VLOS capability. 

4. The PIC and VO must be able to communicate verbally at all times. 

Electronic messaging or texting is not permitted during flight operations. 

5. The PIC must be designated before the flight and cannot transfer his or her 

designation for the duration of the flight, with the exception of medical 

emergencies affecting his or her ability to safely complete the flight. 

6. The PIC must be able to use human vision unaided by any device other than 

corrective lenses as specified on the PIC's FAA-issued airman medical 

certificate. 

7. The VO will not perform any other duties beyond assisting the PIC with 

seeing and avoiding other air traffic and other ground based 

obstacles/obstructions and is not permitted to operate the camera or other 

instruments. 

8. The PIC will not be allowed to operate the UAS unless the PIC has 

demonstrated through the operator's training and currency requirements that 

the PIC is able to safely operate the UAS in a manner consistent with how the 

UAS will be operated under this exemption, including evasive and 

emergency maneuvers and maintaining appropriate distances from people, 

vessels, vehicles and structures. During training, the PIC must have 

accumulated and logged, in a manner consistent with 14 C.F.R § 61.51(b), 

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the minimum hours prescribed in the operating documents as UAS pilot 

operating the same make and model of the U AS to be utilized for operations 

under this exemption. Training, proficiency and experience-building flights 

can be conducted under this grant of exemption to quality the operator's 

PIC(s), VO(s), and other essential personnel as defined in the operating 

documents. Training operations can only be accomplished during dedicated 

training sessions and must be done at appropriate distances in accordance 

with 14 C.F.R § 91.119. 

9. Operations requested under this exemption are limited to the aircraft 

described herein. Proposed operations of any other aircraft will require a new 

petition or a petition to amend this grant. 

10. The UAS may not be flown at an indicated airspeed exceeding 50 knots. 

11. The UAS must be operated at an altitude of no more than 400 feet above 

ground level ("AGL"). All altitudes reported to A TC must be in feet AGL. 

12. Prior to each flight the PIC will inspect the UAS to ensure it is in safe 

condition for flight. If the inspection reveals a condition that affects the safe 

operation of the UAS, the aircraft is prohibited from operating until the 

necessary maintenance has been performed and the UAS is in a condition that 

is safe for flight. The ground control station must also be included in the 

preflight inspection. All maintenance and alterations must be properly 

documented in the aircraft records. 

13. If the UAS has undergone maintenance or alterations that affect the UAS 

operation of flight characteristics, such as the replacement of a critical flight 

component, the UAS must undergo a functional test flight in accordance with 

the operating documents. The PIC who conducts the test flight must make an 

entry in the UAS aircraft records for the flight. Operating documents must 

include requirements and procedures for functional test flights and the record 

entries. 

14. Preflight inspection must account for all discrepancies including inoperable 

components, items or equipment not covered in the relevant preflight 

inspection sections of the operating documents. 

15. Xactware will follow the manufacturer's UAS aircraft and component 

maintenance overhaul, replacement, inspections, and life-limit requirements, 

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with particular attention to critical flight components that may not be 

addressed in the manufacturer's manuals. 

16. Xactware will carry out maintenance, inspections, and record keeping 

requirements in accordance with the grant and its own operating documents. 

Maintenance, inspection and alterations must be noted in the aircraft logbook 

including the total flight hours, description of work accomplished, and the 

signature of the authorized UAS technician returning the UAS to service. 

17. Xactware will comply with safety bulletins issued by the manufacturers of 

the listed UAS. 

18. UAS operations will only be conducted during daylight hours as defined in 

14 C.F.R § 1.1. Operations will also be conducted under visual 

meteorological conditions ("VMC"). 

19. Xactware will not operate UAS within 5 nautical miles of the airport 

reference point of an airport as denoted on a current FAA-published 

aeronautical chart. 

20. If the UAS loses communications or loses its GPS signal, it will return to a 

pre-determined location within the private or controlled-access property and 

land or be recovered in accordance with the operating documents. 

21. In the event of unpredicted emergencies or obstacles, the PIC must abort the 

flight. 

22. Xactware will not begin UAS flight operations unless there is greater than 

30% battery power remaining. 

23. Xactware will obtain an Air Traffic Organization ("ATO") issued Waiver or 

Authorization ("COA") prior to conducting any operations under this grant of 

exemption. Under the COA, Xactware will request a NOT AM no more than 

72 hours in advance, but no less than 48 hours prior to the operation, except 

where shorter time periods are required for emergency response situations. 

Flight operations will be conducted in accordance with the airspace 

requirements in the ATO issued COA, including the class of airspace, altitude 

level and potential transponder requirements. 

24. Xactware will coordinate emergency response operations with state or local 

government agencies having appropriate jurisdictional authority. 

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25. Aircraft operated under this exemption will be identified by serial number 

and registered in accordance with 14 C.F.R part 47, and have identification 

markings in accordance with 14 C.F.R part 45, Subpart C. The markings will 

be as large as practicable on the body of the aircraft. 

26. Only radio frequencies that comply with UA and FCC requirements will be 

utilized. 

27. Xactware will have available for the PIC documents required under 14 C.F.R 

§§ 91.9 and 91.203 anytime the aircraft is operating. Xactware also will 

make these documents available to the FAA or to any law enforcement 

official upon request. 

28. The UAS will remain clear and yield the right of way to all other manned 

aviation operations and activities at all times. 

29. The PIC will not operate the UAS from any moving device or vehicle. 

30. Flight operations must be conducted at least 500 feet from all nonparticipating persons unless structures or barriers are present that sufficiently 

protect nonparticipating persons from debris in the event of an accident. 

Xactware will ensure that nonparticipating persons remain under such 

protection. If a situation arises where non-participating persons leave such 

protection and are within 500 feet of the UAS, flight operations must cease 

immediately. 

31. Xactware will operate the UAS over private or controller-access property 

only with permission from the property owner/controller or authorized 

representative. 

VIII. SPECIFIC SECTIONS OF 14 C.F.R. FROM WHICH PETITIONER 

SEEKS AN EXEMPTION 

Xactware requests exemption from the following F ARS to the extent necessary to 

enable the requested UAS operations for the reasons detailed below. These 

exemptions mirror the grants that the FAA has awarded in Grant of Exemption Nos. 

1118 8 and 113 09 among others. 

A. 14 C.F.R. § 61.113(a): No person who holds a private pilot certificate may 

act as a pilot in command of an aircraft that is carrying passengers or 

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property for compensation or hire; nor may that person, for compensation or 

hire, act as pilot in command of an aircraft. 

Because Xactware proposes to operate its UAS with a pilot holding, at a 

minimum, a private pilot certificate and at least a current third-class medical 

certificate, Xactware seeks an exemption. 

B. 14 C.F.R. § 91.7(a): No person may operate a civil aircraft unless it is in an 

airworthy condition. 

As stated, Xactware will perform pre- and post-flight inspections to ensure 

the airworthiness of the UAS. It will follow manufacturer safety bulletins, 

perform maintenance and respect life-time limits as specified by the 

manufacturer. When critical flight components are replaced, repaired or 

modified, Xactware will perform test flights to verify these components are 

in working condition. 

C. 14 C.F.R. § 91.119(c): No person may operate an aircraft below ... [a]n 

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. 

Because Xactware proposes to operate the UAS at no more than 400 feet 

AGL, the aircraft specified in this exemption will weigh 20 pounds or less, 

and nonparticipating persons will be adequately protected, Xactware seeks an 

exemption. 

D. 14 C.F .R. § 91.121: Altimeter settings. 

Because the UAS will not have a typical barometric altimeters and, instead, 

rely upon GPS generated elevations, Xactware seeks an exemption. 

Xactware intends to operate the UAS within VLOS and at or below 400 feet 

AGL, as well as convert any GPS-related elevation data that needs to be 

delivered to FAA to the approximate barometric altimeter equivalent. 

E. 14 C.E.R. § 91.15l(a): No person may begin a flight in an airplane under 

VFR conditions unless (considering win and forecast weather conditions) 

there is enough fuel to fly to the first point of intended landing and, assuming 

normal cruising speed ... [ d]uring the day, to fly after that for at least 30 

minutes. 

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The UAS specified in this exemption request are battery-powered and can 

only fly for short periods of time, i.e., not more than 45 minutes. For all 

practical purposes, however, most flight times will be shorter than the 

minimum 30 minutes specified in 14 C.F.R. § 91.151(a). Xactware seeks an 

exemption with the understanding that it will not be allowed to begin a flight 

unless flight batteries on the craft have at least 30% power remaining. 

F. 14 C.f.R. § 91.405(a): Each owner or operator of an aircraft ... [s]hall 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. 

G. 14 C.F.R. § 91.407(a)(l): No person may operate any aircraft that has 

undergone maintenance, preventive maintenance, rebuilding, or alteration 

unless ... [i]t has been approved for return to service by a person authorized 

under§ 43.7 ofthis chapter. 

H. 14 C.F.R. § 91.409(a)(l) and (2): Except as provided in paragraph (c) of this 

section, no person may operate an aircraft unless, within the preceding 12 

calendar months, it has had (1) An annual inspection in accordance with part 

43 of this chapter and has been approved for return to service by a person 

authorized by§ 43.7 of this chapter; or (2) An inspection for the issuance of 

an airworthiness certificate in accordance with part 21 of this chapter. 

I. 14 C.P.R. § 91.417: Maintenance records. (a) Except for work performed in 

accordance with § § 91.411 and 91.413, each registered owner or operator 

shall keep the following records for the periods specified in paragraph (b) of 

this section: (1) Records of the maintenance, preventive maintenance, and 

alteration and records of the 100-hour, annual, progressive, and other 

required or approved inspections, as appropriate, for each aircraft (including 

the airframe) and each engine, propeller, rotor, and appliance of an aircraft. 

The records must include - (i) A description (or reference to data acceptable 

to the Administrator) of the work performed; and (ii) The date of completion 

of the work performed; and (iii) The signature, and certificate number of the 

person approving the aircraft for return to service. (2) Records containing the 

following information: (i) The total time in service of the airframe, each 

engine, each propeller, and each rotor; (ii) The current status of life-limited 

parts of each airframe, engine, propeller, rotor, and appliance; (iii) The time 

since last overhaul of all items installed on the aircraft which are required to 

be overhauled on a specified time basis; (iv) The current inspection status of 

the aircraft, including the time since the last inspection required by the 

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inspection program under which the aircraft and its appliances are 

maintained; (v) The current status of applicable airworthiness directives (AD) 

and safety directives including, for each, the method of compliance, the AD 

or safety directive number and revision date. If the AD or safety directive 

involves recurring action, the time and date when the next action is required; 

(vi) Copies of the forms prescribed by § 43.9(d) of this chapter for each 

major alteration to the airframe and currently installed engines, rotors, 

propellers, and appliances. (b) The owner or operator shall retain the 

following records for the periods prescribed: (1) The records specified in 

paragraph (a)(1) of this section shall be retained until the work is repeated or 

superseded by other work or for 1 year after the work is performed; (2) The 

records specified in paragraph (a)(2) of this section shall be retained and 

transferred with the aircraft at the time the aircraft is sold; (3) A list of defects 

furnished to a registered owner or operator under§ 43.11 of this chapter shall 

be retained until the defects are repaired and the aircraft is approved for 

return to service. 

In consideration of 14 C.F.R. §§ 91.405(a), 91.407(a)(l), 91.409(a)(l) and 

(2), and 91.417 (a) and (b), Xactware will perform the detailed pre-flight 

checks, as well as routine maintenance, preventive maintenance, and 

replacement and overhaul of component parts of the UAS as required by the 

UAS operating documents. In addition, Xactware will perform test flight 

operations after such maintenance to ensure safety. Maintenance and 

inspections will be logged in the aircraft's log book which will be available 

for inspection at the FAA's request. Under these conditions, Xactware seeks 

an exemption. 

J. Such other relief as the FAA deems appropriate to enable the requested 

operations. 

Xactware also requests exemption from such other F ARS as the FAA deems 

appropriate to enable the requested operations. If, during the effective dates 

of any Grant of Exemption issued pursuant to this Petition, the FAA issues 

interim or final rules for small UAS, Xactware requests that it be relieved of 

the requirements of any conditions and limitations of said exemption and 

allowed to comply with any less burdensome applicable regulations that may 

have become effective. 

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IX. SUMMARY TO BE PUBLISHED IN FEDERAL REGISTER 

Petitioner: Xactware Solutions, Inc. 

Sections of 14 C.F.R. Affected: § 61.113(a); § 91.7(a); § 91.119(c); § 91.121; § 

91.151(a); § 91.405(a); § 91.407(a)(l); §91.409(a)(l) and (2); § 91.417(a) and (b). 

Description of Relief Sought: Petitioner seeks relief from the requirements of 14 

C.F.R. § 61.113(a); 14 C.F.R. § 91.7(a); 14 C.F.R. § 91.119(c); 14 C.F.R. § 91.121; 

14 C.F.R. § 91.151(a); 14 C.F.R. § 91.405(a); 14 C.F.R. § 91.407(a)(l); 14 C.F.R. § 

1.409(a)(l) and (2); and 14 C.F.R. § 91.417(a) and (b) to conduct small unmanned 

aircraft systems (UAS) operations at its own facilities, over individual private real 

estate parcels, and in limited areas following catastrophes subject to operating 

procedures that meet or exceed those that the FAA requires for similar operations. 

X. CONCLUSION 

Satisfaction of the criteria provided in Section 333 of the FMRA regarding size, 

weight, speed, operating capabilities, proximity to airports and populated areas, 

operation within visual line of sight, and national security, provide more than 

adequate justification for the grant of the requested exemption allowing operation of 

Petitioner's UAS operations related to the insurance industry pursuant to the 

Operations Manuals. The requested three exemptions-one for UAS operations at 

Xactware owned or controlled sites, and the second and third for real world UAS 

operations over individual private properties and in catastrophe situations -- can be 

granted separately or in the same Grant. Please do not hesitate to contact Petitioner's 

outside counsel, ScottS. Christie at (973) 848-5388 or schristie@mccarter.com with 

any questions about this filing. 

ScottS. Christie 

Attachment: Confidential Operations Manuals and Training Syllabus 

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