Industrial Networks LLC.

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- 0796 October 22, 15

U.S. Department of Transportation

Docket Management System

1200 New Jersey Ave., SE

Washington, DC 20590

Re: Exemption Request Under Section333 of the FAA Reform Act and Part 11 of the Federal

Aviation Regu lations

Dear Sir or Madam:

Pursuant to Section 333 of the FAA Modernization and Reform Act of 2012 (the “Ref orm Act”) and

14 CFR Part 11, Industrial Networks LLC ” (“IN ET” ) , the developer and operator of the INDF1 small

Unmanned Aircraft Systems (“sUAS”) seeks an exemption from the Federal Aviation Regulations

(“FARs”) listed below and discussed in Appendix A. Details of INDF1 sUAS are described in

Appendix B. [Attached as Appendix C is a summary of this request.]

The requested exemption would p ermit IN ET commercial operation of INDF1 (see details in

Appendix B), in the RAILCAR INVENTORY AND INSPECTION market space. The Air Vehicle weighs

22 lbs. with imaging payload, to perform market research, aerial surveys, mapping, and inspections

that consi st of still photographs, video, and other data taken by onboard sensors. The INDF1

produces high quality imagery and d ata that can be used independently - or in the case of surveying

and thermal mode ling, can be combined to produce precision charts, and co ntour maps.

Applications for this sUAS include t he location and inspection of railcars using video and RFID

scanning technology . Use of the INDF1 for location and inspection of railcars using video and RFID

scanning enhances rail shipment and receiving ope rations , providing data more quickly, accurately,

economically, safely, and with reduced environmental impact.

Operations under the exemption will be subject to strict operating requirements and conditions to

ensure at least an equivalent level of safet y to currently authorized operations using manned

aircraft and under conditions as may be modified by the FAA as required by Section 333.

While INET is filing this exemption request on its own behalf, it anticipates that its customers, in the

future, wi ll file exemption applications to allow them to operate the INDF1 in commercial

operations at their client’s facilities and other sites that require low aerial data for inspections and

railcar inventory surveys. Wherever possible, those filings will be sub stantially similar to this

exemption application.

As described more fully below, the requested exemption would authorize INET to perform market

research and commercial operations of aerial inspections and surveys using the INDF1 , which at 22

lbs. is sma ll in size and powered electrically by a Li

- Po battery.

The INDF1 will be operated under controlled conditions at low altitude (< 5 00’ AGL ) in Class G

airspace that is limited in scope, as described more fully herein. It will have automated controlIndustrial Networks LLC.

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- 0796 featur es, as described below. The INDF1 is designed to be operated by one person but flight

operations generally involve two people, an operator and an observer. The operator is responsible

for flying the sUAS, monitoring its status and flight dynamics while mai ntaining visual

- line

- of

- sight

(VLOS), and keeping the flight within the specified factory limits (in terms of wind, flight range,

battery life, etc .) to ensure safe operation of the sUAS itself. The observer is responsible for

monitoring the airspace for o ther aircraft and hazards and instructing the operator before and

during flight as necessary to ensure safe launching and de confliction with ANY aircraft or identified

hazards. The operator also will be an individual who has passed the FAA approved or mili tary

equivalent ground training exam and authorized DJI training program for the INDF1

. Finally, the

airspace in which the INDF1 will operate will be disclosed to and approved, as needed, by the FAA

in advance.

INET respectfully submits that because thi s small, unmanned aerial system

– the INDF1

– will be

used at above ground altitudes less than fifty ( 5 0) feet , the FAA can have confidence that the

operations will achieve at least an equivalent

- level or greater, of safety. Approval of this exemption

woul d thereby enhance safety and fulfill the Secretary of Transportation’s (the FAA

Administrator’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 sys tem.”

The name and address of the applicant are:

Industrial Networks LLC

Attn: Ryan Bradley

, Director of Operations

240 Spring Hill Drive

Suite 400

S pring, TX 77386

Phone 281

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- 0796

The primary contact for this application is:

Ryan Bradley

rbradley @inetlp.com

The regulati ons from which the exemption is requested are as follows:

14 CFR 21;

14 CFR 45.23(b);

14 CFR 6 1.113(a) & (b);

14 CFR 6 1.133(a);

14 CFR 91.7(a);

14 CFR 91.9(b)(2) & (c);

14 CFR 91.103;

14 CFR 91.109(a);

14 CFR 91.119;

1 4 CFR 91.151(a);

14 CFR 91.203(a) & (b);

14 CFR 91.405(a);

14 CFR 91.407(a)(1);

14 CFR 91.409(a)(2);

14 CFR 91.417(a)Industrial Networks LLC.

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- 0796 Appendix A discusses each rule listed above and explains why exemptions pursuant to the proposal

set forth in this letter are appropriate, provide an equivalent level of safety, and are in the public

interest.

THE APPLICABLE LEGAL STANDARD UNDER SECTION 333

INET submits that grant of this exemption application for use of the INDF1 in location and

inspection of rail cars using video and RFID scanning technology will advance the Congressional

mandate in Section 333 of the Reform Act to accelerate the introduction of sUAS ’ s into the national

airspace system (“NAS”) if it can be accomplished safely. This law directs the Secretary of

Transportation to consider whether certain sUAS ’ s may operate safely in the NAS before

completion of the rulemaking required under Section 332 of the Reform Act. In making this

determination, t he Secretary is required to determine which types of sUAS ’ s 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 sUAS’s size, weight, speed, and operational capability;

 Operation of the sUAS in close proximity to airports and populated areas; and

 Operation of the sUAS within visual line of sight of the operator.

Reform Act § 333(a)(1)

. If the Secretary deter mines that such vehicles “may operate safely in the

N ational A irspace S ystem, the Secretary shall establish requirements for the safe operation of such

aircraft in the national airspace system.” Id. §333(c)

.

The Federal Aviation Act expr essly 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 airworthines s 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 sectio ns 44702-4471 6 of this title if the

Administrator finds the exemption is in the public interest.

49 US 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 Av iation Act, as amended; the

strong equivalent level of safety surrounding the proposed operations; and the significant public

benefit, including enhanced safety and cost savings associated with transitioning to sUASs for aerial

surveying, mapping and insp ection applications. Accordingly, the applicant respectfully requests

that the FAA grant the requested exemption without delay.

Airworthiness of the INDF1

A critical element of the exemption application involves evidence of the airworthiness of INDF1

sUAS and the Operators. INET believes th at it has shown compliance through a history of 70 hours

and 15 flights of safe operation of INDF1

.Industrial Networks LLC.

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- 0796 The criteria set forth in the Order specify the substantive showings of the device’s safety and fitness

for operation to ensure that the FAA has sufficient basis to evaluate the aircraft’s safety. The INDF1

also has a significant set of automated features to ensure safe takeoff, flight and landing in many

conditions, further details of operation can be found in Appendix B.

Mandatory Operating Conditions

Grant of the exemption to INET will be subject to the following mandatory conditions, which are

based upon operating conditions set forth for operation of sUAS by public entities pursuant to

Certificates of Authorization, with addi tional restrictions:

 All operations to occur in Class G airspace.

 Operations to avoid congested or populated areas, which are depicted in yellow on VFR

charts.

 Operations to be conducted over private or controlled-access property.

 Permission from lan d owner/controller required before commencing any flight.

 Operations to occur during Visual Flight Rules Meteorological Conditions (VMC).

 Aircraft to remain within Visual Line of Sight (VLOS).

 VLOS guaranteed with a cylinder of operation around operator of 1⁄2 nautical miles (NM).

 Observer may expand cylinder walls with ability to control aircraft.

 Operations to occur during daylight hours.

 Above Ground Level (AGL) altitude to be restricted to 2 00 feet.

 All operations conducted in vicinity of airport t o remain more than 2.5 NM from

centerline azimuth of runway centerline measured from runway thresholds.

 Operator will file a NOTAM for each flight.

 All required permissions and permits would be obtained from territorial, state, county or

city juri sdictions, including local law enforcement, fire, or other appropriate governmental

agencies.

Operator Requirements

INET respectfully proposes that operator requirements should take into account the characteristics

of the particular sUAS. Certain sUAS s, such as the INDF1 , are characterized by a high degree of

pre-programmed control and various built

- in technical capabilities that limit the potential for

operation outside of the operating conditions set forth above. The INDF1 sUAS also provides many

bui lt

- in functional and safety features to assist the operator in safe and reliable operation.

The INDF1 provides two semi-autonomous flight modes using a point-and-click map and video

interface.

The user clicks on a map to direct the INDF1 to fly to the point on the map where the operator is

pointing, or programmed flight plans may be entered for a series of waypoints or grid based area.

Additional navigation aids including landing zones and flight areas may be designated to ensure the

INDF1 operates only within user specified flight parameters. All flight operations are GPS

controlled making the system easy to navigate, and the fl ight control system also employs a variety

of sensors including ; barometric pressure, temperature, wind speed and others to ensur e the highIndustrial Networks LLC.

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- 0796 stability and reliability in challenging weather conditions. At all times during flight operations, the

operator can intervene a programmed flight and take immediate control.

Additional automated safety functions and safety enhancing feature s of the INDF1 include the

following:

- Automated pre-flight system performance checks

- User pre-flight checklist

- Automated condition or fault detection, warnings, and pre-defined responses to a number of

flight and system conditions.

- High winds with system and user defined safety thresholds

- Low battery with system and user defined safety thresholds

- High temperature or other system safety thresholds

- Lost-link communication

- Pre-defined responses include behavi or such as attempting to re-establish radio

communication, return to home position and hover, return to home position and land, or land in

current position

- In the case of lost GPS, a manual user flight mode is enabled which allows the operator to provide

manual navigation inputs to assist in landing the vehicle.

Given these safety features, INDF1 proposes that operators of the INDF1 should not be required to

hold a commercial or private pilot certification. Instead, operators should be required to:

- have successfully completed, at a minimum, FAA private pilot ground instruction and passed the

FAA Private Pilot written examination or FAA-recognized equivalents including commercial or

private license and ground school issued from an ICAO recog nized country;

- have completed DJI authorized training program for operation and maintenance of the sUAS.

INET notes that the FAA has found that safety factors permitted operation of sUASs by operators

with these qualifications in the case of operatio ns pursuant to public COAs when the mandatory

operating conditions specified above were present. See Federal Aviation Administration, Notice

N-8900.227 [FAA ORDER 8900.1, VOL 16]

, Unmanned Aircraft Systems (UAS) Operational

Approval, at 20-21 (July 30, 201 3). The FAA has the statutory authority to grant exemptions to the

requirements for and privileges associated with the grant of airmen’s certificates. 49 USC §44701

(f).

In summary, applicant seeks an exemption from the FARs set forth above and in Appe ndix C to

allow market research and commercial operations of a small unmanned vehicle in surveying,

mapping and inspection operations

.

Approval of the exemption allowing commercial operations of the INDF1 for location and

inspection of railcars using vi deo and RFID scanning technology will enhance safety by reducing

risk. Conventional aerial survey and inspection operations using manned aircraft involve very

heavy aerial vehicles carrying significant quantities of combustible fuels, and a multi-person cr ew

in piloting and observation roles. These operations require transit to and from the location of the

activity, and often take place in congested environments and include close proximity to physical

obstacles and/or presence of the general public. By cont rast, the INDF1 weighs 22 lbs including

payloads and uses a battery for power, is transported or carried to/from the area of activity,Industrial Networks LLC.

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- 0796 removes the need for airborne pilots/observers, and poses less risk to people and infrastructure on

the ground.

Additi onally, no national security issue is raised by the grant of the requested exemptions. Given

the size, load carrying capacity, speed at which it operates, and the fact that it carries no explosives

or other dangerous materials, the INDF1 poses no threat to national security.

The operation of the INDF1 for location and inspection of railcars using video and RFID scanning

technology in accordance with the strict conditions outlined above, will provide an equivalent level

of safety supporting the grant of t he exemptions requested herein, including exempting INET from

the requirements of Part 21.

The INDF1 ’s satisfaction of the criteria set forth in Section 333 of the Reform Act (i.e. size, weight,

speed, operating capabilities, operation within VLOS and l ack of proximity to airports, populated or

areas national security) and demonstrated equivalent level of safety as it relates to the requirement

for FAA pilot certification, provide more than adequate justification for the grant of the requested

exemptions allowing INET commercial operation of the INDF1 in location and inspection of railcars

using video and RFID scanning technology

.

In conclusion, the safe operation of the INDF1 is of utmost concern and safety remains paramount.

INET intends to operate wi thin the spirit of all applicable FAA regulations and will adhere to any

further refinements. The operation of INET ’s sUAS’s in railyards across the country are literally of

little safety concern, provided the operators and observers maintain integrity of the flight, pose no

risk to airborne platforms, and/or mitigate all risk to ground personnel and property.

Very truly yours,

Ryan Bradley

Industrial Networks LLCIndustrial Networks LLC.

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- 0796 APPENDIX A

EXEMPTION REQUEST AND EQUIVALENT LEVEL OF SAFETY SHOWING S UNDER APPLICABLE

RULES SUBJECT TO EXEMPTION

INET requests an exemption from the following regulations as well as any additional regulations

that may technically apply to the operation of the INDF1 :

14 CFR Part 21, Subpart H: Airworthiness Certifi cates

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 cert ificates as required by FAR § 91.203(a)(1). Given the size of the aircraft ( 22 lbs.)

and the limited operating area associated with its utilization, it is unnecessary to go through the

certificate of airworthiness process under Part 21 Subpart H to achieve or exceed current safety

levels.

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 airc raft 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 sUAS involved.

In this case, an analysis of these criteria demonstrat es that the INDF1 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 INDF1

weighs 22 lbs. f

ully loaded. It will 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 both the

operator, pursuant to the conditions set forth above, 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 land owner, the si ze of the aircraft, the lack of flammable fuel, and the fact that

the aircraft is carried to the location and not flown there all establish the equivalent level of safety.

The INDF1 provides at least an equivalent, and most likely exceeds 5 , level of safety to that of such

operations being conducted with conventional manned aircraft that would be significantly larger

and would be carrying additional personnel, cargo, and flammable fuel. The automated safety

features including redundant sensor systems as desc ribed in Appendix B and throughout this

document highlight the design intentions towards safety and reliability on the INDF1

.

14 CFR § 45.23 & 91.9(c): Marking of the Aircraft

Regulation 45.23 provides:

(a) Each operator of an aircraft must displa y on that aircraft marks consisting of theIndustrial Networks LLC.

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- 0796 Roman capital letter “N” (denoting United States registration) followed by the regist ration

number of the aircraft. Each suffix letter used in the marks displayed must also be a Roman

capital letter.

(b) When marks include only the Roman capital letter “N” and the registration number is

displayed on limited, restricted or light-sport category aircraft or experimental or

provisionally certificated aircraft, the operator must also display on that aircraft ne ar each

entrance to the cabin, cockpit, or pilot station, in letters not less than 2 inches nor more than

6 inches high, the words “limited,” “restricted,” “light­sport,” “experimental,”

or“provisional,” as applicable.

Regulation 91.9(c) provide s:

No person may operate a U.S.-registered civil aircraft unless that aircraft is identified in

accordance with part 45 of this chapter.

The INDF1 has no entrance to the cabin, cockpit, or pilot station on which the markings can be

placed. Given the size of the sUAS, two inch lettering will be impossible. Official marking systems for

small UAS have not yet been established for operations inside the NAS. The INDF1 is currently

marked with a fixed label containing INDF1 measuring 1 ” x 0.5” as well a s a serial number located

between M3 and M4 on the power distribution board

. INET is prepared to mark the inspection

system with the name of the organization and location or origin and fulfill any other request by the

FAA to this topic in accordance to § 45 .29(f) where the pilot, observer, and others working with the

sUAS will see the identification of the sUAS.

The FAA has issued the following exemptions to this regulation; see Exemption Nos. 8738, 101 6 7,

101 6 7A and 10700.

14 CFR § 6 1.113(a) & (b); 61 .133(a): Private Pilot Privileges and Limitations; Pilot in

Command; Commercial Pilot Privileges and Limitations.

Section 6 1.113(a) & (b) limit private pilots to non-commercial operations. Unlike a conventional

aircraft that carries a pilot, passeng er s, and cargo, the INDF1 in this case is remotely controlled with

no passengers or property of others on board. Section 6 1.133(a) requires an individual with a

commercial pilot’s license to be pilot in command of an aircraft for compensation or hire. INET

respectfully proposes that operator requirements should take into account the characteristics of

the particular sUAS. INET’s INDF1 has a high degree of pre-programmed control and various

built-in technical capabilities that strictly limit the potential fo r operation outside of the operating

conditions set forth in the exemption application.

The INDF1 has an all-digital software platform with advanced features previously restricted to full

size unmanned aircraft. Automated features and advanced fly-safe controls enable safe, reliable

operation, as well as advanced networking capabilities and system extensibility.

 Plan your flight or fly ad-hoc: The system can autonomously fly a programmed flight path or

fly in manual mode

 Smart batteries and charger: F light time and battery minutes are displayed at all times. The

system will return home and land automatically if user-configurable limits are reached.Industrial Networks LLC.

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- 0796 Flight safety is a priority, no matter the operating environment or project. The INDF1 offers

superior safety over manned aircraft by removing the need for people to be onboard in potentially

dangerous situations. With multiple built-in safety features, the INDF1 platform leads other sUAS

with respect to safety.

 Intelligent fault handling: The system aut omatically detects potential issues

- with

configurable automated response behavior such as a return-home-and-land routine

 Automatic pre-flight checks: The system self-calibrates all of its sensors and performs

self-tests prior to takeoff to check for er rors

 No-fly zones: The system has the ability to set up visual no-fly zones

 Self-monitoring: Monitoring battery levels, in-flight wind speeds, and other system and

 Environmental conditions are automatically handled by the system

 Battery communication: Battery minutes and flight time are displayed at all times.The

system will return home and land automatically if user-configurable limits are reached.

Additional automated safety functions and safety enhancing features of the INDF1 include the

following :

 Auto detection of lost GPS warns the pilot and initiates an immediate landing.

 Low battery on the INDF1 triggers a Non

- Fatal Warning alarm to return home, land and

replace the battery.

 Very low battery on the INDF1 triggers a Fatal Error alarm and init iates an emergency high

speed descent landing.

 If the INDF1 detects a lost-link to the base station the vehicle will perform its pre-defined

Non-Fatal Condition Response.

Given these safety features, INET proposes that operators of the INDF1 should not be required to

hold a commercial or private pilot certification. Instead, operators should be required to:

 have successfully completed, at a minimum, FAA private pilot ground instruction and

passed the FAA Private Pilot written examination or FAA-recogni zed equivalents including

ICAO issued commercial, private license and ground school;

 have completed DJI training program for operation of the sUAS.

INET notes that the FAA has found that safety factors permitted operation of sUASs by operators

with the se qualifications in the case of operations pursuant to public COAs where the mandatory

operating conditions specified above are present. See Federal Aviation Administration, Notice

N-8900.227 [FAA ORDER 8900.1, VOL 16]

, Unmanned Aircraft Systems (UAS) Ope rational

Approval, at 20-21 (July 30, 2013). The FAA has the statutory authority, granted at 49 U S C

§44701(f) to waive the pilot requirements for commercial operations.

Given these conditions and restrictions, an equivalent level of safety will be pro vided by allowing

operation of the INDF1 without a private pilot’s certificate or a commercial pilot’s certificate, under

the conditions set forth herein.

The risks associated with the operation of the INDF1 (given its size, speed, operational capabilit ies,

and lack of combustible fuel) are so diminished from the level of risk associated with private pilot

operations or commercial operations contemplated by Part 6 1 with conventional aircraft (fixed

wing or rotorcraft), that allowing operations of the sU AS as set forth above meets or exceeds theIndustrial Networks LLC.

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- 0796 present level of safety provided under 14 CFR § 61 .113(a) & (b) and does not rise to the level of

requiring a commercial pilot to operate the aircraft under § 6 1.133(a).

14 CFR § 91.7(a): Civil aircraft airworthiness.

This regulation requires that no person may operate a civil aircraft unless it is in airworthy

condition. Should the exemption be granted allowing commercial operation of the INDF1 without

an airworthiness certificate, no standard will ex ist for airworthiness of the INDF1

. Given the size of

the aircraft and the previous COAs issued for INDF1 an equivalent level of safety will be achieved by

ensuring compliance with the OEM manuals prior to each flight.

14 CFR § 91.9(b)(2): Civil Airc raft Flight Manual in the Aircraft.

The regulation provides:

No person may operate a U.S.­registered civil aircraft ...

(2) For which an Airplane or Rotorcraft Flight Manual is not required by §21.5 of this chapter,

unless there is available in the aircraft a current approved airplane or Rotorcraft

Flight Manual, approved manual material, markings, and placards, or any combination thereof.

Given the size and configuration of the INDF1

, it has no ability or place to carry such a flight manual

on the aircraft, not only because there is no pilot on board, but because there is no room or capacity

to carry such an item on the aircraft.

The equivalent level of safety will be achieved by keeping the flight manual (see, e.g., User Guide,

Exhibit 1 ) at the ground control point where the pilot flying the sUAS will have immediate access to

it. The FAA has issued to others the following exemptions to this regulation: Exemption Nos. 8 6 07,

8737, 8738, 9299, 9299A, 95 6 5, 95 65B, 10167, 10167A, 106 02, 32827, and 10700.

14 CFR § 91.103: Preflight action

This regulation requires each pilot in command to take certain actions before flight to insure the

safety of flight. As FAA approved rotorcraft flight manuals will not be provided for the aircra ft an

exemption will be needed. An equivalent level of safety will be provided as set forth in the INDF1

User Manual (exhibit 1) under the ‘Getting Ready to Fly’ section. The PIC will take all actions

including reviewing weather, flight battery requirement s, landing and takeoff distances and aircraft

performance data before initiation of flight.

14 CFR § 91.109(a) & 91.319(a)(1): Flight Instruction

These regulations provide that no person may operate a civil aircraft (except a manned free

balloon) that is being used for flight instruction unless that aircraft has fully functioning dual

controls.

The INDF1 is a remotely piloted aircraft and by design, does not have fully functional dual controls.

Flight control is accomplished through the use of a control box that communicates with the aircraft

via radio communications. The flight plan is either manually controlled through point-and-clickIndustrial Networks LLC.

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- 0796 touchscreen navigation or pre-programmed as way points or an AutoGrid into the auto pilot before

or during fligh t and only in unusual circumstances will the pilot input control functions to alter the

pre-programmed flight. If instruction is accomplished through a training program, as set forth in

Exhibit 2, an equivalent level of safety will be assured. The FAA has approved exemptions for flight

training without fully functional dual controls for a number of aircraft and for flight instruction in

experimental aircraft. See Exemption Nos. 5778K & 986 2A. The equivalent level of safety will be

achieved by the manufactu rer providing the training as outlined and through the use of

experienced and qualified pilots familiar with the INDF1

.

14 CFR § 91.119: Minimum Safe Altitudes

Section 91.119 establishes safe altitudes for operation of civil aircraft. Specifically, 9 1.119(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, ves sel, vehicle, or structure.

As set forth herein, the INDF1 will never operate at higher than 5 00 feet AGL. It will, however, be

operated to avoid congested or populated areas that are depicted in yellow on VFR sectional charts.

Because aerial survey, ma pping and inspection 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 materia l with

which the INDF1 is built. Also, no flight will be taken without the permission of the land owner or

those who control the land. Because of the advance notice to the landowner, all affected individuals

will be aware of the flights. Compared to aerial survey operations conducted with aircraft or

rotorcraft weighing far more than 10,000 lbs. and carrying flammable fuel, any risk associated with

these operations will be far less than those currently allowed with conventional aircraft operating

at or below 50 0 feet AGL. Indeed, the low-altitude operations of the sUAS will maintain separation

between these sUAS operations and the operations of conventional aircraft that must comply with

Section 91.119.

14 CFR § 91.151(a): Fuel Requirements for Flight in V FR 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 INDF1 batteries provide approximately 50 minutes of powered flight. Without an exemption

from § 14 C FR 91.151, the sUAS’s flights would be limited to approximately 20 minutes in length.

Given the limitations on its proposed operations and the location of those proposed operations, a

longer time frame for flight in daylight VFR conditions is reasonable.

INET believes that an exemption from 14 CFR § 91.151(a) is safe and within the scope of a prior

exemption. See Exemption 106 73 (allowing Lockheed Martin Corporation to operate 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 atIndustrial Networks LLC.

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- 0796 which the sUAS operates. The fact that it carries no pilot, passenger, or cargo also enhances its

safety. Additionally, limiting INDF 1 flights to 20 minutes would greatly reduce their utility. In the

unlikely event that the INDF1 should run out of fuel (battery power), it would simply land. Given its

weight and construction material, the risks are less than contemplated by the current r egulation.

INET believes that an equivalent level of safety can be achieved by maintaining 5 minutes of reserve

fuel, which, allowing 15 minutes of flight time, would be more than adequate to return the sUAS to

its planned landing zone from anywhere in i ts operating area.

The FAA has granted similar exemptions to others, including Exemptions 26 89F, 5745, 106 73 and

10808.

14 CFR § 91.203 (a) & (b): Carrying Civil Aircraft Certification and Registration

This regulation provides as follows:

(a)

... no person may operate a civil aircraft unless it has ... an appropriate and current

airworthiness certificate.

(b) No person may operate a civil aircraft unless the airworthiness certificate required by

paragraph (a) of this section or a special fligh t authorization issued under §91.715 is displayed at

the cabin or cockpit entrance so that it is legible to passengers or crew.

The INDF1 fully loaded weighs approximately 22 lbs. As such, there is no ability or place to carry

certification and registr ation documents or to display them on the sUAS. In addition, there is no

pilot on board the aircraft.

An equivalent level of safety will be achieved by keeping these documents at the ground control

point where the pilot flying the sUAS will have immediat e access to them. The FAA has issued

numerous exemptions to this regulation. A representative sample of other excepti ons includes

Exemption Nos. 956 5, 9 66 5, 9789, 9789A, 9797, 9797A, 9816 A, and 10700.

14 CFR § 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 t he 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.

The INDF1 is nearly maintenance free, it performs automatic pre­flight checks and the failure of any

check will prevent take-off. Checks which cannot be done by the system will be performed by a

qualified person prior to each fl ight and at predefined intervals as part of the Maintenance Schedule

in the User Manual (se e Exhibit 1). Commented [CS1]: Put most recent or applicable

exemptions.Industrial Networks LLC.

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- 0796 Pre­flight checklist includes:

1. Visual inspection of the airframe

2. Visual inspections of rotor integrity

3. Check charge of all batteries (aerial vehicle, command station, radio repeater station)

An equivalent level of safety will be achieved because the sUAS is small in size, will carry no

external payload, will operate only in restricted predetermined areas and is not a complex

mechanical devise.

As provided in the attached User Guide (System Maintenance section), th e operator of INDF1 will

ensure that the sUAS is in working order prior to initiating flight, perform required maintenance,

and keep a log of any maintenance that is performed. Moreover, the operator is the person most

familiar with the aircraft and is bes t suited to maintain the aircraft in an airworthy condition and to

ensure an equivalent level of safety.

The INDF1 ‘s Maintenance guidelines ensure an equivalent level of safety to the maintenance

requirements in Part 91. In addition, any component failu re detectable by the system will be

reported to the control station and will cause the UAV to perform a Fatal Condition Response (FCR)

or Non-Fatal Conditioned Response (NFCR), depending on the type of failure.Industrial Networks LLC.

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- 0796 APPENDIX B

SMALL UNMANNED AERIAL SYS TEM DESCRIPTION

DJI Corporate Overview: DJI is a Chinese company located in Shen zhen

, China

. DJI is focused on providing micro unmanned aerial system and is globally recognized as the market

and technology leader in this spa ce.

DJI systems have been approved by the FAA for research COAs and have a demonstrated safety

track record

.

INDF1 Overview: DJI unmanned systems have been used to locate and inspect railcars using video

and RFID scanning technology

.

The INDF1 can carry payloads up to 22 lbs

. The INDF1 flies at a maximum wind threshold of 25

M.P.H. for sustained winds and wind gusts up to 3 5 M.P.H.. What is unique about the INDF1 is the

system automatically compensates for wind versus relying on the operator’s ‘sens e of feel’ for what

the impact of the wind is at the altitude the system is flying. The end result is a system capable of

gathering high quality aerial intelligence at much higher wind thresholds. A trait that is imperative

for many aerial inspection opera tions.

The INDF1 has an operational range of up to 2 km ( 1 NM) with the standard offering.

All flight operations are GPS controlled making the system extremely easy to navigate. At any point

if the operator is not explicitly commanding the system to move, the system automatically holds its

GPS position (i.e. GPS hold for reliable location hover). Camera positioning is also GPS controlled

allowing for the most sophisticated camera targeting available. The flight control system employs

not only GPS posi tioning but a variety of sensors including, barometric pressure, temperature, wind

speed and others to ensure the most stability of any system in its class - regardless of the wind.

The INDF1 can be operated in both semi and fully autonomous flight mode s. Creating preplanned

flight paths to fly in autonomous mode is as simple as clicking on the map to create a preplanned

flight path. In semi-autonomous mode, the operator clicks on the map and the INDF1 automatically

flies to the point on the map where th e operator is pointing. Pre-mission waypoints, Landing zone

points and flight area dimensions can all be entered during preflight ensuring the INDF1 operates

only within specified parameters.

The INDF1 includes many advanced safety features that makes t he INDF1 the safest choice for both

urban and non-urban environments. Built

- in intelligent fault handling allows the INDF1 to detect a

system fault while in the air, and to automatically fly back to its take-off location and land. Faults

that can be detect ed include: loss of communication; pre­set wind thresholds exceeded; and low

battery levels. In addition, the operator can create no fly zones or maximum flight ranges and

altitudes so the system cannot enter areas deemed unsafe or unnecessary to fly over . And before

every take-off automated flight checks ensure the system is flight ready before it takes off.

The INDF1 can be operated entirely by a touch-screen, map based interface. This means t he

operator only needs to command the system where to go, a nd the system does all the flying for theIndustrial Networks LLC.

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- 0796 operator. Maps can be saved and flight plans can be made or recalled with no I nternet connection

required.

INDF1 Operating Manual - System user manual available upon request.

Physical Characteristics:

Mea surements

– Wingspan

– 56”

Height

– 25” (including landing gear and GPS antenna)

Weight (without payload)

– 13.5

Weight with payload (T/O weight)

- 22

Propulsion System

● Engines

– The INDF1 is powered by 8 electric brushless DC motor s

.

● Batteries

– Lithium polymer batteries are self-contained high duration systems

.

Performance Characteristics

● Maximum Altitude

– 400

● Maximum Endurance

– 15

● Maximum Range

– VLOS

● Weather Minimums - 1000/3

● Winds Maximum

– 35 KTS

● Minimum ceil ing: 500’

● Minimum visibility: 3 mi

● Icing conditions

– no icing conditions

● Precipitation

– no visible moisture

Maintenance

– The s UAS is nearly maintenance free, it performs automatic pre-flight checks and the

failure of any check will preve nt take-off. A qualified person prior to each flight will perform checks,

which cannot be done by the system

.

Pre-flight checklist includes:

● Visual inspection of the airframe

● Visual inspections of rotor integrity

● Check charge of all ba tteries (aerial vehicle, command station, radio repeater station)

Reliability

– The system is designed for maximum reliability and to maintain performance over its

life.

The onl y components experience routine

- wear are rotors, batteries, motors, and leg s.

Contact with other objects during flight may cause other components, particularly rotors, and

motor arms, to become damaged. Damaged components are likely to be detected during the full

visual inspection of the airframe performed before each flight. On-board sensors will detect

structural damage affecting flight characteristics

.Industrial Networks LLC.

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- 0796 The sUAS detects numerous conditions, which may make flying unsafe, such as reduced GPS

accuracy, magnetic anomalies, and low battery charge. Automatic pre-flight checks prevent the UAV

from taking off if such conditions are present; or, if the condition is detected during flight, the

system will trigger a Fatal Conditioned Response.

Fault Tolerance

- t he key feature of the sUAS fault tolerance is its mechanical simplic ity. It uses

eight fixed pitched rotors, each mounted on a separate motor. No control surfaces or other

actuators are required for the s UAS to fly. Any component failure detectable by the system will be

reported to the control station and will cause the sU AS to perform a Fatal Condition Response

(FCR) or Non-Fatal Conditioned Response (NFCR), depending on the type of failure.

Command and Control Systems

The INDF1 Ground Control station allows the operator simultaneous control over aircraft and

payloads. The touch screen control allows for quick navigation and data entry while the display

screen provides all essential flight data to the operator. Telemetry data is transmitted to the

command station at least once per second.

Displayed on GCS:

● UAS Position

● Navigation Route

● UAS Altitude

● UAS Heading

● North Seeking Arrow

● Range to Target

● Calculated target position

● Date/time

● Sensor heading and orientation relative to UAS

On-board Flight Instruments

– The UAV is equipped with an Inertial Navigation System (3-axis

gyroscope, and 3-axis magnetometer, GPS receiver, and static pressure sensor).

On

– board computer systems

– The s UAS is equipped on-board computer systems to monitor

(sensors, battery, etc.), cont rol (speeds, altitude, position, etc.), and communicate (control,

telemetry, etc.).

On-board guidance and navigation equipment

– The s UAS can operate autonomously; it does not

require any input from ground-based equipment, or from the pilot to hover in place.

Frequency Allocations

– 900 MHz, 2.4 GHz, 5.8 GHz, custom

Flight termination link

– to prevent a “fly away” or other potentially dangerous s ituation a flight

termination link is available to the operator at the GCS.

Takeoff and Landing

– The INDF1 has vertical lift autonomous launch and recovery. A Landing Zone

“LZ” is designated by the operators and identified in the GCS software. For laun ch procedures the

aircraft will takeoff and hover 3 meters directly above the LZ and hold until further operator

instruction is given. The aircraft will automatically adjust for wind during this period.Industrial Networks LLC.

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- 0796 Navigation System

– Specific maps can be downloade d to the display screen (such as air sectional

and geographic maps) which are overlaid with GPS positional data. Waypoints can be created

before and during flight operation creating specific locations and sequences for the aircraft.

Redundant Systems

– The UAS combines the input from a multitude of sensors. Even though the

data from all sensors is required for optimal system performance, a single sensor malfunction is

likely to result in degraded performance rather than leading to a catastrophic failure.

Emergency Procedures and System Failures

Failure Handling

– The UAS has extensive failure detection and handling capabilities. All failures are

deeded to be either fatal or non-fatal. Failures classified as fatal result in a Fatal Condition Response

(FCR); and failures classified as non­fatal result in a Non­Fatal Condition Response (NFCR).

Sensor Failure

– Failure of sensors will not degrade the s UAS performance and will result in a NFCR

which flight can be continued to safe landing.

Motor Fail ure

– The UAS flight performance will degrade significantly if one or more motors fail.

Airframe Failure

– If airframe is damaged in ways that impacts flight characteristics, the UAS will

behave similar to if an on-board flight instrument failed.

Nav igation System Failure

– In a navigation system failure, degraded GPS will result in FCR or

NFCR‘s depending on failures.

Power Failure

– A complete battery failure which results in power loss to the s UAS

, will result in

degraded flight performance.

Low Battery Condition

– Operator will be alerted of a low battery condition and will land the

aircraft as soon as able.

Line-of-Sight Loss

– All flight operations will be conducted with the UAS within visual sight of the

pilot. If the pilot’s view becom es obstructed and line-of-sight is lost, the pilot may instruct the s UAS

to hover in place until line-of-sight is reestablished, to return to the take-off position, or to land at

the current position.

Security

The system and communication links are encrypted by the manufacturer’s proprietary software.Industrial Networks LLC.

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- 0796 APPENDIX C

SUMMARY OF INET SECTION 333 EXEMPTION REQUEST

INET hereby provides pursuant to Part 11, a summary of its exemption application to allow

co mmercial operation of the INDF1 small unmanned system in: data collection, scouting, and

inspections. An exemption is requested from the following regulations:

14 CFR 21;

14 CFR 45.23(b);

14 CFR 6 1.113(a) & (b);

14 CFR 6 1.133(a);

14 CFR 91.7(a);

14 CFR 91.9(b)(2) & (c);

14 CFR 91.103;

14 CFR 91.109(a);

14 CFR 91.119;

14 CFR 91.151(a);

14 CFR 91.203(a) & (b);

14 CFR 9 1.405(a);

14 CFR 91.407(a)(1);

14 CFR 91.409(a)(2);

14 CFR 91.417(a)Industrial Networks LLC.

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