1 UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

FEDERAL AVIATION ADMINISTRATION WASHINGTON, DC

IN THE MATTER OF THE PETITION FOR EXEMPTION OF:



### The Sterling Group

FOR AN EXEMPTION SEEKING RELIEF FROM THE REQUIREMENTS OF TITLE 14 OF THE CODE OF FEDERAL REGULATIONS SECTIONS 61.113(a) & (b), 91.7(a), 91.121, 91.151(b), 91.405(a), 91.407(a)(1), 91.409(a)(1) & (a)(2), AND 91.417(a) & (b) CONCERNING COMMERCIAL

OPERATION OF A



### DJI PHANTOM , DJI PHANTOM 2, DJI PHANTOM 3 , DJI

INSPIRE 1 , 3DR SOLO, SPLASH DRONE, AND PLEXIDRONE

UNMANNED AIRCRAFT SYSTEMS

PURSUANT TO SECTION 333 OF

THE FAA MODERNIZATION AND REFORM ACT OF 2012 (PUBLIC LAW 112

- 95)

Submitted on December 3 , 2015

The Sterling Group CAPT Brian Taggart, NOAA (Ret) 1700 N Ridgecliff Ln Boise, ID 83702

301

- 728

- 9732

FAA Airman Certificate

- ATP 30297 642 S UMMARY

The Sterling Group seeks exemption from the requirements of 14 C.F.R §§ 61.113(a) & (b), 91.7(a), 91.121, 91.151(b), 91.405(a), 91.407(a)(1), 91.409(a)(1) & (a)(2), and 91.417(a) & (b), to operate an Unmanned Aircraft System pursuant to Section 333 of the FAA Modernization and Reform Act of 2012 (FMRA). This exemption will permit The Sterling Group to operate an Unmanned Aircraft System (UAS) for the commercial purpose of conducting aerial acquisitions and research over areas of the United States.

INTRODUCTION AND OBJECTIVE OF THE PETITIONER

The Sterling Group provides its clients with expertise and knowledge in advanced technologies and solutions to increase efficiency, productivity and effectiveness. The Sterling Group has over 30 years of professional experience in aviation. CAPT Brian Tagg art, a sole proprietor, is a retired NOAA Corp Officer with over 6000 hours flying fixed wing aircraft. Flying experience includes marine mammal research, aerial remote sensing, and severe weather research. UAS operators for The Sterling Group will

inclu de retired NOAA pilots. The objective of The Sterling Group is to provide a UAS solution for aerial mapping, aerial sur veying, industrial inspections , aerial videography and photography, wildlife and forestry monitoring, and assist with search and rescue operations

.

All communications regarding The Sterling Group petition should be directed to:

Brian Taggart The Sterling Group 1700 N Ridgecliff Ln Boise, Idaho 83702

301

- 728

- 9732 sterling.group@aol.com

UNMANNED AERIAL SYSTEMS

DJI Phantom, DJI Phantom 2, DJI Phantom 3, DJI Inspire 1, 3DR Solo, Splash Drone, and Plexidrone

The Sterling Group seeks an exemption to operate the above named drones for compensation or hire within the NAS.

T he UA S s that will be operated by The Sterling Group will be registered in accordance with 49 U.S.C. 44103, Registration of Aircraft , as well as 14 C.F.R Part 47, Aircraft Registration , and marked in accordance with 14 C.F.R. Part 45, Identification and Registration Marking

.3 BASIS FOR PETITION

Petitioner, The Sterling Group, pursuant to the provisions of the Federal Aviation Regulations (14 C.F.R. § 11.61) and the FAA Modernization and Reform Act of 2012 (FMRA), Section 333, Special Rules for Certain Unmanned Aircraft Systems , hereby petitions the Administrator to commercially operate the identified drones in the National Airspace System (NAS), and for an exemption from the requirements of 14 C.F.R §§:

• 61.113(a) & (b)

• 91.7(a)

• 91.121

• 91 .151(b)

• 91.405(a)

• 91.407(a)(1)

• 91.409(a)(1) & (a)(2)

• 91.417(a) & (b)

The following subsections describe The Sterling Group request for an exemption from each of these regulations and demonstrate how The Sterling Group operations will provide for at least an equivalent level of safety c ompared to the current regulatory structure that applies

to manned aircraft.

A. Regulations f or w hich an Exemption and Relief is Requested

1. Section 61.113 (a) & (b)

– Pilot Limitations

Section 61.113, entitled Private pilot privileges and limitations: Pilot in command

, subsections (a) and (b) prescribe the following, in relevant part: (a) No person who holds a private pilot certificate may act as a pilot in command (PIC) of an aircraft that is carrying passengers or property for compensation or hire; nor ma y that person, for compensation or hire, act as PIC of an aircraft

. (b) A private pilot may, for compensation or hire, act as PIC of an aircraft in connection with any business or employment if

—

(1) The flight is only incidental to that business or employment; and (2) The aircraft does not carry passengers or property for compensation or hire.

Relief from Section 61.113(a) and (b) entitled Private pilot privileges and limitations:

Pilot in command , is requested to the extent necessary to allow a PIC holding a private pilot or higher level certificate, as well as a current and valid airman medical certificate, and who has met certain flight

- hour and currency requirements, to conduct the proposed UAS flight operations for compensation or hire.

This relief is req uested since the limitations set forth in Section 61.113(a) and (b) state that a private pilot may, for compensation or hire, act as PIC of an aircraft in connection with any business or employment if: (1) The flight is only incidental to that business or4 employment; and (2) The aircraft does not carry passengers or property for compensation

or hire.

As set forth more fully below, The Sterling Group submits that an equivalent level of safety will be maintained because no PIC will be allowed to operate the UASs unless that PIC has met certain flight

- hour and currency requirements, demonstrating that the PIC is able to safely operate either the UAS in a manner consistent with the operations specifications as described in this exemption, including evasive and emergency maneuvers, as well as maintaining appropriate distances from people, vessels,

vehicles and structures.

Further, The Sterling Group submits that all flights of the UASs, conducted by the PIC pursuant to the grant of this Petition: (1) will be inc idental to The Sterling Group business; and (2) will not carry passengers or property for compensation or hire.

2. Section 91.7(a)

– Civil A ircraft A irworthiness

Section 91.7, entitled Civil aircraft airworthiness , subsection (a), states the following:

(a) No person may operate a civil aircraft unless it is in an airworthy condition.

Relief from Section 91.7(a) entitled Civil aircraft airworthiness , is requested to the extent required to allow The Sterling Group to determine that the UASs are in airworthy

cond ition prior to every flight by ensuring that the UAS is in compliance with the operating documents (i.e., Instruction Manual).

The Sterling Group seeks the requested relief because the UASs identified do not require an

airworthiness certificate in accorda nce with 14 C.F.R. Part 21, Subpart H.

T herefore, The Sterling Group will ensure that the UASs are in airworthy condition based upon its compliance with the operating documents (i.e., Monthly Maintenance Log, and Instruction Manual) prior to every flight, and further, determine that the aircraft are in condition for safe flight, as stated in the conditions and limitations below.

3. Section 91.121

– Alt i meter Settings

Section 91.121, entitled Altimeter settings, subsection (a), states the following, in
part: (a) Each person operating an aircraft shall maintain the cruising altitude or flight level of that aircraft, as the case may be, by reference to an altimeter that is set, when operating

--

(1) Below 18,000 feet MSL, to

--

(i) The current reported altimeter setting of a station along the route and within 100 nautical miles of the aircraft;

(ii) If there is no station within the area prescribed in paragraph (a)(1)(i) of5 this section, the current reported altimeter setting of an appropriate available station; or

(iii) In the case of an aircraft not equipped with a radio, the elevation of the departure airport or an appropriate altimeter setting available before departure.

Relief from Section 91.121, entitled Altimeter settings, may be required to allow flight operations of the UASs, which utilize a barometric pressure sensor, GPS equipment, and a radio communications telemetry data link to downlink altitude information from the UA to the PIC at the ground control station (GCS). Since the FAA requires that any

altitude informatio n concerning UAS operations be reported to air traffic control (ATC) in feet above ground level (AGL), The Sterling Group seeks the requested relief because the UASs altimeter may be set on the ground to zero feet AGL, rather than the local barometric pres sure or field altitude, before each flight.

Considering the limited altitude of the proposed operations, relief from 14 CFR 91.121 is sought to the extent necessary to comply with the applicable conditions and limitations stated below. As more fully set f orth herein, an equivalent level of safety will be maintained since the UAs are equipped with a barometric pressure sensor and GPS equipment, which automatically ensures that a ground level pressure setting will be established prior to each flight, and pro vides the PIC with altitude information of the UA

on the heads

- up display of the GCS.

4. Section 91.151(b)

– Fuel Requirements for Flight in VFR Conditions

Section 91.151, entitled Fuel requirements for flight in VFR conditions , subsection

(b), states the following:

(b) No person may begin a flight in a rotorcraft 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, to fly after that for at least 20 minutes

.

Relief from Section 91.151(b) entitled Fuel requirements for flight in VFR conditions, is requested to the extent required to allow flights of the battery powered UASs during daylight hours in visual meteorological condition s (VMC), under visual flight rules (VFR), for a total duration of 13.5 minutes to the first point of intended landing and, assuming normal cruising speed, to fly after that for at least 4.5 minutes. The Sterling Group seeks the requested relief because wit hout an exemption from Section 91.151(b), the flight time duration of the battery powered UASs will severely constrain the practicality of any aerial video or still photo flight operations that The Sterling Group proposes to conduct pursuant

to this Petiti on.

Significantly, as set forth below, the technical specifications of the UASs, the operating documents, and The Sterling Group proposed operating limitations, ensure that The Sterling Group will safely operate the battery powered UAs during daylight hou rs in visual meteorological conditions (VMC), under visual flight rules (VFR), with enough battery6 power to fly for a total duration of 13.5 minutes to the first point of intended landing and, assuming normal cruising speed, to fly after that for at least 4.5 minutes.

5. Section 91.405(a); 91.405(a); 91.407(a)(1); 91.409(a)(1) & (2); and 91.417(a) & (b):

- Maintenance Sections

• Section 91.405, entitled Maintenance required , subsection (a), states the following: Each owner or operator of an aircraft

— (a) 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, entitled Operation after maintenance, preventive maintenance, rebuilding, or alteration , subsection (a)(1), states the following: (a) No person may operate any aircraft that has undergone maintenance, preventive maintenance, rebuilding, or alteration unle ss

--

(1) It has been approved for return to service by a person authorized under § 43.7 of this chapter[.]

• Section 91.409, entitled Inspections , subsection (a), states the following:

(a) 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.

• Section 91.417, entitled Maintenance records , subsections (a) and (b), state the following: (a) Except for work performed in accordance with §§ 91.411 and 91.413, each r egistered 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 require d

or approve d i nspections, as appropriate, for each aircraft (including the airframe) and each engine, propeller, rotor, and appliance of an

aircraft. The records must include

--7 (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 inspection program under which the aircraft and its appliances are maintained.

(v) The current status of applica ble 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 r equired.

(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 p rescribed:

(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 thi s chapter shall be retained until the defects are repaired and the aircraft is approved for return to service.

Since Sections 91.405(a), 91.407(a)(1), 91.409(a)(1) & (a)(2), and 91.417(a) & (b) only apply to aircraft with an airworthiness certificate, The Sterling Group requests relief from these Sections because the identified UASs do not require airworthiness certificates. As8 set forth more fully below, the UASs meet the conditions of FMRA Section 333 for operation without an airworthiness certificate. A ccordingly, The Sterling Group will use trained technicians to perform maintenance, alterations, or preventive maintenance on the UASs using the methods, techniques, and practices prescribed in the UAS operating documents (i.e., the The Sterling Group Aeri al Operations Manual, Monthly Maintenance Log, and Instruction Manual). Furthermore, The Sterling Group will document and

maintain all maintenance records UASs.

B. Public Interest

Granting the present Petition will further the public interest by allowing The Sterling Group to safely, efficiently, and economically perform aerial acquisitions and research

over areas of the United States.

Additionally, use of UASs will decrease conges tion of the NAS, reduce pollution, and provide significant benefits to the economy. Notably, the benefits of The Sterling Group’s proposed operation of the UASs will be realized without implicating any privacy issues.

1. Benefit s f rom d ecreased c ongestion o f the NAS

The UA S s that will be used by The Sterling Group are battery powered and serve as a safe, efficient, and economical alternative to the manned aircraft traditionally utilized to obtain aerial imagery. By reducing the amount of manned aircraft needed to perform aerial acquisitions, an exemption allowing t he use of a UAS would reduce the amount of manned aircraft in the NAS, reduce noise and air pollution, as well as increase the safety of life and property in the air and on the ground.

Furthermore, by reducing the number of manned aircraft operating in th e NAS, congestion around airports caused by arriving and departing aircraft will be reduced. The UA S s identified do not require an airport to takeoff or land. Likewise, a reduction of manned aircraft conducting aerial acquisitions and research missions wou ld r esult in fewer aircraft that must be handled by air traffic control during the ground, takeoff, departure, arrival, and landing phases of flight operations.

2. Benefit f rom t he s afety a nd e fficiency of UASs

Conducting aerial acquisitions with the UASs, instead of manned aircraft, will greatly benefit the public by drastically reducing the levels of air and noise pollution generated during traditional aerial video and still photography flight operations. By us ing battery power and electric motors, UASs produce no air pollution, and is the most viable environmentally conscious alternative to the cabin class, six cylinder internal combustion engine aircraft that are typically utilized for aerial acquisitions and research , while burning approximately 20

- 30 gallons per hour of leaded aviation fuel. The UAs, while reducing the carbon footprint of aerial acquisitions, also eliminates noise pollution, as the UAs are propelled by battery powered electric motors, rather than an internal combustion engine.

By using UASs to perform aerial acquisitions, the substantial risk to life and property in the air and on the ground, which is usually associated with traditional manned aircraft9 flight operations, will be substantially reduced or completely eliminated. Aside from the lack of flight crew members located onboard the aircraft, the UAs has less physical potential for collateral damage to life and property on the ground, and in the air, compared to the manned aircraft that t ypically conduct similar operations.

3. Benefits of UAS companies

In addition to being safe and efficient, the UASs are also an economical alternative to using manned aircraft to conduct similar aerial operations. As such, operation of the

UASs will allow U nited States based companies, like The Sterling Group, to remain competitive and contribute to growth of the U.S. economy. Specifically, with the rising cost of aviation fuel and the Environmental Protection Agency (“EPA”) regulatory actions phasing out le aded aviation fuels, U.S. owned and operated companies must adopt new and alternative technology in order to remain competitive. Operating the battery powered UASs i s one such technology that not only allows companies greater operational flexibility com pared to manned aircraft, but provides such flexibility without the high operational cost of a traditional manned aircraft. B y operating UASs, companies such as The Sterling Group, can remain competitive and profitable, and therefore, pro vide greater job stability to employees and contractors, which will ultimately contribute to growth of the U.S. economy. Improved financial performance of U.S. companies, through commercial use of UASs, provides a stable workforce that

increases consumer spending; improves local, state, and federal tax revenues; and allows companies to invest in research and development in order to remain competitive both in

the United States and abroad.

4. Privacy

Similar to the manned aerial acquisition flight operations that have been conducted for decades, The Sterling Group’s proposed operation of the UASs will not implicate any privacy issues. Specifically, the UASs will be operated only in compliance with

oper ating documents (i.e., the The Sterling Group Aerial Operations Manual, Monthly Maintenance Log, and Instruction Manual) which requires property owner involvement as well as local law enforcement notification, and in accordance with the Federal

Aviation Re gulations, including the minimum altitude requirements of 14 C.F.R. §

91.119.

C. Safety

1. UASs a nd t he c onditions o f The FAA Modernization and Reform Act of 2012 (FMRA) Section 333.

In consideration of the size, weight, speed, and limited operating area associated with the unmanned aircraft and its operation, The Sterling Group’s operation of the identified UASs meet the conditions of FMRA Section 333, and will not require an airworth iness certificate in accordance with 14 C.F.R. Part 21, Subpart H.

Section 333 provides authority for a UAS to operate without airworthiness certification and sets forth requirements for considering whether a UAS will create a hazard to users of10 the NAS o r the public, or otherwise pose a threat to national security. Specifically, FMRA Section 333 states the following, in part:

(a) In General

-- Notwithstanding any other requirement of this subtitle, and not later than 180 days after the date of enactment of t his Act, the Secretary of Transportation shall determine if certain unmanned aircraft systems may operate safely in the national airspace system before completion of the plan and rulemaking required by section 332 of this Act or the guidance required by

se ction 334 of this Act

. (b) A ssessment of Unmanned Aircraft Systems.

-- In making the determination under subsection (a), the Secretary shall determine, at a minimum

--

(1) which types of unmanned aircraft systems, if any, as a result of their size, weight, speed, operational capability, proximity to airports and populated areas, and operation within visual line of sight do not create a hazard to users of the national airspace sys tem or the public or pose a threat to national security; and

(2) whether a certificate of waiver, certificate of authorization, or airworthiness certification under section 44704 of title 49, United States Code, is required for the operation of unmanned aircr aft systems identified under paragraph (1).

(c) Requirements for Safe Operation.

-- If the Secretary determines under this section that certain unmanned aircraft systems may operate safely in the national airspace system, the Secretary shall establish requireme nts for the safe operation of such aircraft systems in the national airspace system.

In seeking this exemption, The Sterling Group submits that its DJI Phantom, DJI Phantom 2, DJI Phantom 3, DJI Inspire 1, 3DR Solo, Splash Drone, and Plexidrone

UASs can o perate safely in the NAS pursuant to FMRA Section 333, as demonstrated by: (a) the characteristics of the UASs; (b) the pilot certification requirement; and (c) the specific operating limitations.

a. Specifications o f t he UASs d emonstrate t heir s afe c haracte ristics

The Sterling Group proposed UAS operations meet the requirements of, and qualify for expedited approval under, Section 333. The Sterling Group UAS s weigh less than 55 pounds, will operate at less than 400 feet above ground level (“AGL”), within visual line of sight (“VLOS”), at speeds of no more than 87 knots, and will generally comply with the

same conditions and limitations FAA established in issui ng previous Section 333 grants. Operations conducted under these safeguards will provide at least an equivalent level of safety compared to the current regulatory structure. Moreover, The Sterling Group operations will not “create a hazard to users of the national airspace system or the public or pose a threat to national security” due to the size of the UAS and the restricted areas in which it will operate

b. Flight o perations o f UASs a re VLOS w ith a PIC and VO11 The Sterling Group will only utilize certificated pilots who possess a current and valid airman medical certificate to act as a pilot in command (PIC) of the UASs. Additionally, a Visual O bserver (VO) will assist all pilots during flight time.

c. Flights of UASs w ill b e c onducted p ursuant t o t he f ollowing

o perating limitations

In seeking this exemption, The Sterling Group proposes to commercially operate

the DJI Phantom, DJI Phantom 2, DJI Phantom 3, DJI Inspire 1, 3DR Solo, Splash Drone, and Plexidrone UASs for the special purpose of conducting aerial acquisitions and research over areas of United States, pursuant to the following specific operating limitations:

1. Operations authorized by this grant of exemption will be limited to the following aircraft described in the operating documents, rotorcraft UASs weighing less than 55 pounds maximum gross weight. Proposed operations of any other aircraft will require a new petition or a petition to amend this grant

.

2. U AS operations under this exemption will be l imited to conducting operations for the purpose of aerial acquisitions and research

.

3. The UAs may not be flown at speeds greater than 87 knots.

4. The UA must be operated at an altitude of no more than 4 00 feet above ground level (AGL), as indicated by the procedures specified in the operating documents unless a special request is made and approved by ATC. All altitudes reported to ATC must be in feet AGL.

5. The UAs 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.

6. The use of first person view (FPV) by the PIC or Visual observer (V O) is not permitted.

7. All operations must utilize a visual observer (V O). The V O may be used to satisfy the VLOS requirement as long as the PIC always maintains VLOS capability. The V O 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 V O can perform the functions prescribed in the operating documents

.

8. The V O must 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.12 9. The operating documents and the grant of exemption must be accessible during UAS operations and made available to the Administrator upon request. If a discrepancy exists between the conditions and limitations contained in the grant of exemption and the procedures outlined in the operatin g documents, the conditions and limitations contained in the grant of exemption 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 upon request. The operator must also present updated and revised documents if it petitions

for extension or amendment to the grant of exemption. If the operator determines that any update or revision would affect the basis upon which the FAA granted the exemption, then the operator must petition for amendment to its grant of exemption. The FAA’s UAS Integration Office (AFS

- 8 0) may be contacted if questions arise regarding updates or revisions to the operating

documents.

10. Prior to each flight the PIC must inspect the UAS to ensure that it is in a condition for safe flight. If the inspection reveals a condition that affects

the s afe 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. The Ground Control Station must be included in the preflight inspection. All maintenance and alterations must be properly documented in the aircraft records.

11. 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 under go a functional test flight. The PIC who conducts the functional test flight must make an entry in the aircraft records.

12. The pre

- flight inspection must account for all potential discrepancies, e.g. inoperable components, items, or equipment, not already c overed in the relevant sections of the operating documents.

13. The operator must follow the UAS manufacturer’s aircraft/component, maintenance, overhaul, replacement, inspection, and life limit requirements.

14. The operator must carry out its maintenance, inspections, and record keeping requirements, in accordance with the operating documents. Maintenance, inspection, alterations, and status of replacement/overhaul component parts must be noted in the aircraft records, including total time in service, descr iption of work accomplished, and the signature of the authorized person returning the

UAS to service.

15. Each UASs operated under this exemption must comply with all manufacturer Safety Bulletins.

16. The authorized person must make an entry in the aircraft record of the corrective action taken against discrepancies discovered between inspections.13 17. The PIC must possess at least a private pilot certificate and at least a current
third

- class medical certificate.

18. The operator may not permit any PIC to operate unless the PIC meets the operator’s qualification criteria and demonstrates the ability to safely operate the UAS in a manner consistent with how the UAS will be operated under the exemption, including evasive and emergency maneuvers and maintaining

approp riate distances from persons, vessels, vehicles and structures. PIC qualification flight hours must be logged in a manner consistent with 14 C.F.R. § 61.51(b). Flights for the purposes of training the operator’s PICs are permitted under the terms of the ex emption. 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 C.F.R. §

91.119.

19. U AS operations may not be conducted during night, as defined in 14 C.F.R. §

19.1. All operations must be conducted under visual meteorological conditions (VMC). If flight at night is required, a special request will be made at the FAA office closest to proposed area of operations. Flights under special visual flight rules (SVFR) are not authorized.

20. The UA may not operate within 5 nautical miles of an airport reference point

as denoted on a current FAA

- published aeronautical chart unless a letter of agreement with that airport’s management is obtained, and the operation is conducted in accordance with a NOTAM as required by the operator’s COA. The letter of agr eement with the airport management must be made available to the Administrator upon request.

21. 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

.

22. If the UA loses communications or loses its GPS signal, it must return to a pre

determined location within the planned operating area and land or be recovered in accordance with the operating documents.

23. The PIC must abort the flight in the event of un predicted obstacles or emergencies in accordance with the operating documents.

24. The PIC is prohibited from beginning a flight unless (considering wind and forecast weather conditions) there is enough power to fly at normal cruising speed to the intended la nding point and land the UA with 25% battery power remaining.

25. The operator must obtain an Air Traffic Organization (ATO) issued Certificate of Waiver or Authorization (COA) prior to conducting any operations under the grant of exemption. This COA will also require the operator to request a14 Notice to Airman (NOTAM) no t more than 72 hours in advance, but not less than 48 hours prior to the operation. All operations shall be conducted in accordance with airspace requirements in the ATO issued COA including class of airspace, altitude level and potential transponder requi rements.

26. All aircraft operated in accordance with the exemption must be identified by serial number, registered in accordance with 14 C.F.R. part 47, and have identification (N

- Number) markings in accordance with 14 C.F.R. part 45, Subpart C. Markings mu st be as large as practicable.

27. Before conducting operations, the radio frequency spectrum used for operation and control of the UA must comply with the Federal Communications Commission (FCC) or other appropriate government oversight agency requirements.

28. T he documents required fewer than 14 C.F.R. 91.9 and 91.203 must be available to the PIC at the Ground Control Station of the UAS any time the UAS is operating. These documents must be made available to the Administrator or any law enforcement official up on request.

29. The UA must remain clear and yield the right of way to all manned aviation operations and activities at all times.

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

31. Flight operations must be conducted at least 500 feet from all nonparticipating persons (persons other than the PIC, V O, operator trainees or essential persons), vessels, vehicles, and structures unless:

a. Barriers or structures are present that sufficientl y 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 ar e within 500 feet of the UA, flight operations must cease immediately and/or;

b. The aircraft is operated near vessels, vehicles or structures where the owner/controller of such vessels, vehicles or structures has granted permission and the PIC has made a sa fety assessment of the risk of operating closer to those objects and determined that it does not present an undue hazard, and;

c. Operations nearer to the PIC, SO, operator trainees or essential persons do not present an undue hazard to those persons per §

9 1.119(a).

32. All operations shall be conducted over private or controlled

- access property with permission from the land owner/controller or authorized representative. Permission from land owner/controller or authorized representative will be obtained for eac h flight to be conducted.15 33. 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

hou rs. Accidents must be reported to the National Transportation Safety Board (NTSB) per instructions contained on the NTSB Web site: www.ntsb.gov

.

2. Exemption f rom t he r equirements o f Section 61.113(a) & (b) w ould n ot

a dversely a ffect s afety.

The Sterling Group submits that the equivalent level of safety established by Section 61.113(a) and (b) will be maintained because no PIC will be allowed to operate the UASs unless that PIC has demonstrated, by meeting minimum flig ht

- hour and currency requirements, that the PIC is able to safely operate the U AS in a manner consistent with the exemption, including evasive and emergency maneuvers and maintaining appropriate distances from people, vessels, vehicles and structures.

Con sidering The Sterling Group’s proposed area of operations, and the operating

limitations set forth

- above; the parallel nature of private pilot aeronautical knowledge requirements to those of commercial pilot requirements (See Exemption No. 11062); and

the airmanship skills necessary to safely operate the UAS, The Sterling Group submits that the additional manned airmanship experience of a commercially certificated pilot would not correlate to the airmanship skills necessary for The Sterling Group’s specific proposed flight operations.

The FAA has previously granted relief from Section 61.113(a) and (b) specific to UAS, in circumstances similar, in all material respects, to those presented herein (e.g. Exemption Nos. 11062, 11063, 11064, 11065, 11066, 11067, 11080, 11109, 11110, 11112, 11136, 11138, 11150, 11153, 11156, 11158, 11159, 11160, 11161).

The Sterling Group will not allow any PIC to operate the DJI Phantom, DJI Phantom 2, DJI Phantom 3, DJI Inspire 1, 3DR Solo, Splash Drone, and Plexidrone UAS unle ss that

PIC has demonstrated that the PIC is able to safely operate the UAS in a manner consistent with this exemption, including evasive and emergency maneuvers and maintaining appropriate distances from people, vessels, vehicles and structures.

Specific ally, the PIC must have accumulated and logged, in a manner consistent with 14 C.F.R. § 61.51(b), 25 hours of total time as a UAS rotorcraft pilot (with a minimum of 5 hours of those hours as a UAS pilot operating the same make and model of UAS to be

used for operations under the exemption). In addition to the hour requirements, the PIC must accomplish 3 takeoffs and landings in the preceding 90 days (for currency purposes).

As in Exemption Nos. 11062, 11138, and 11153, prior documented flight experience t hat was obtained in compliance with applicable regulations will ensure an equivalent level of safety during The Sterling Group’s proposed operations. The Administrator has held that prior documented flight experience that was obtained in compliance with ap plicable regulations would ensure safe operations, stating as follows:16 In Exemption No. 11062, the FAA required that prior to conducting operations for the purpose of motion picture filming (or similar operations), the PIC must have accumulated and logged , in a manner consistent with 14 CFR 61.51(b), 25 hours of total time as a UAS rotorcraft pilot including at least 10 hours logged as a UAS pilot with a multi

- rotor UAS. Prior to operations under Exemption No. 11062, the

PIC must also have accumulated and logged a minimum of 5 hours as a UAS pilot operating the same make and model of UAS to be used for operations under the exemption. For clarification, the FAA considers these minimum hour requirements to be inclusive rather than additive; i.e. 5 hours make and model time may be

i ncluded in the 10 hours of multi

- rotor time and the 10 hours may be included in the total 25 hours of UAS rotorcraft time. In addition to the hour requirements, the PIC must accomplish 3 takeoffs and landings in the preceding 90 days (for currency purposes). The FAA finds that at a minimum, the flight

- hour requirements in Exemption No. 11062 are appropriate to practice and build proficiency in the skills necessary to safely conduct the petitioner’s proposed operations. The FAA also fi nds that prior documented flight experience that was obtained in compliance with applicable regulations would satisfy this requirement. Training, proficiency, and experience

- building flights can also be conducted under the grant of exemption to accomplish the required flight time. During training, proficiency, and experience

- building flights the PIC is required to operate the UA with appropriate distances in accordance with 14 C.F.R 91.119. Exemption No. 11138 at page 15.

Accordingly, The Sterling Group will ensure safe operations by not allowing any PIC to operate the UAS unless that PIC has demonstrated, by meeting minimum flight

- hour and currency requirements, that the PIC is able to safely operate in a manner consistent with the exemption, including e vasive and emergency maneuvers and maintaining appropriate distances from people, vessels, vehicles and structures.

3. Exemption f rom t he r equirements o f Section 91.7(a) w ould n ot

a dversely a ffect s afety.

The equivalent level of safety established by Section 91.7(a) will be maintained because prior to every flight, The Sterling Group will ensure that the UAS is in an airworthy condition based upon the UAS’s compliance with its operating documents

and as stated in the conditions and limitations herein.

Additionally, the FAA has previously granted relief from Section 91.7(a) specific to UAS, in circumstances similar, in all material respects, to those presented herein (e.g. Exemption Nos. 11062, 11063, 11064, 11065, 11066, 11067, 11080, 11109, 11110, 111 12, 11136, 11138, 11150, 11153, 11156, 11157, 11158, 11159, 11160, 11161).

4. Exemption f rom t he r equirements o f Section 91.121 w ould n ot

a dversely a ffect s afety.

The equivalent level of safety established by Section 91.121 will be maintained because

the al titude information of the UASs will be provided to the PIC via GPS equipment and a radio communications telemetry data link, which downlinks from the UA to the17 GCS for active monitoring of the flight path and altitude. This altitude information,

combined w ith The Sterling Group’s operation of the UAs within visual line of sight, at

or below 4 00 feet AGL, will ensure a level of safety equivalent to Section 91.121. The altitude information will be generated by GPS equipment installed onboard the aircraft.

Pri or to e ach flight, a zero altitude initiation point is automatically established by the UASs at ground level.

The FAA has previously granted relief from Section 91.121 specific to UAS, in circumstances similar, in all material respects, to those presented herein (e.g. Exemption Nos. 11062, 11063, 11064, 11065, 11066, 11067, 11080, 11109, 11112, 11136, 11138, 11150, 11153, 11156, 11157, 11158, 11159, 11160, 11161).

5. Exemption f rom t he r equirements o f Section 91.151(b) w ould n ot

a dversely a ffect s afety.

A grant of this exemption would ensure an equivalent level of safety established by 14 C.F.R. Section 91.151(b) as a result of (1) the technical specifications of the DJI Phantom, DJI Phantom 2, DJI Phantom 3, DJI Inspire 1, 3DR Solo, Splash Drone, and

Plexi drone UASs; (2) the limitations on the proposed flight operations; and (3) the location of the proposed flight operations. Accordingly, The Sterling Group will ensure that it will safely operate the battery powered UAs during daylight hours in VFR

conditio ns, with enough battery power to fly for a total duration of 13.5 minutes to the first point of intended landing and, assuming normal cruising speed, to fly after that for

at least 4.5 minutes.

Significantly, previous exemptions granted by the FAA concern ing Section 91.151 establish that safety is not adversely affected when the technical characteristics and operating limitations of the UAS are considered. Relief has been granted for manned aircraft to operate at less than the minimums prescribed in Sectio n 91.151, including Exemption Nos. 2689, 5745, and 10650. Moreover, the FAA has previously granted relief from Section 91.151 specific to UAS, in circumstances similar, in all material respects, to those presented herein (e.g. Exemption Nos. 8811, 10808, 1 0673, 11042, 11062, 11063,11064, 11065, 11066, 11067, 11080, 11109, 11110, 11136, 11138, 11150, 11153, 11156, 11157, 11158, 11159, 11160, 11161).

6. E xemption f rom t he r equirements o f Sections 91.405(a), 91.407(a)(1), 91.409(a)(1) & (a)(2), And 91.417(a) & ( b) w ould n ot a dversely a ffect

s afety.

In seeking this exemption, The Sterling Group submits that the equivalent level of safety with regard to the regulatory maintenance and alteration requirements established by Sections 91.405(a), 91.407(a)(1), 91.409(a )(1) & (a)(2), and 91.417(a) & (b) will be

met b ecause The Sterling Group will use trained technicians to perform maintenance, alterations, or preventive maintenance on the UASs using the methods, techniques, and practices prescribed in the operating docum ents (i.e., the The Sterling Group Aerial Operations Manual, Monthly Maintenance Log, and Instruction Manual). Furthermore, The Sterling Group will document and maintain all maintenance records for the UASs.18 Since the UASs will be inspected as prescribed by the operating documents, The Sterling Group will maintain the equivalent level of safety established by Sections 91.405(a), 91.409(a)(1), and 91.409(a)(2).

Likewise, the exemption sought will not adversely affect safety because The Sterling Group will use trained technicians to perform maintenance, alterations or preventive maintenance on the UAS using the methods, techniques, and practices prescribed by the operating documents.

Furthermore, the exemption sought would maintain an equivalent level of safety established by Sections 91.407, 91.417(a) and 91.417(b), because all maintenance of the UASs will be performed by trained technicians. Maintenance will be documented and maintained utilizing the monthly maintenance log.

Significantly, previous exemptions granted by the FAA concerning Sections 91.405(a), 91.407(a)(1), 91.409(a)(1) & (a)(2), and 91.417(a) & (b) establish that safety is not adversely affected when the technical characteristics and operating limitations of the UAS

are considered.

I n consideration of The Sterling Group’s proposed operating limitations, the operating documents, and the technical aspects DJI Phantom, DJI Phantom 2, DJI Phantom 3, DJI Inspire 1, 3DR Solo, Splash Drone, and Plexidrone UASs, The Sterling Group submits tha t safety will not be adversely affected by granting exemption from 14 C.F.R. Sections 91.405(a), 91.407(a)(1) and (a)(2), 91.409(a)(2), and 91.417(a) and (b). The FAA has previously granted relief specific to UAS in circumstances similar, in all material r espects, to those presented herein (e.g. Exemption Nos. 11062, 11063, 11064, 11065, 11066, 11067, 11080, 11109, 11110, 11112, 11136, 11138, 11150, 11153, 11156, 11157, 11158, 11159, 11160, 11161).

7. The FAA m ay p rescribe a ny c onditions f or s afe o peration.

In accordance with Section 333 of the FAA Modernization and Reform Act of 2012 (FMRA) and 14 C.F.R. § 21.16 entitled Special Conditions, The Sterling Group requests that the FAA prescribe special conditions for the intended operation of the UASs, which

con tain such safety standards that the Administrator finds necessary to establish a level of safety equivalent to that established by 14 C.F.R. Part 21, Subpart H, and 14 C.F.R §§

61 .113(a) & (b), 91.7 (a), 91.121, 91.151(b), 91.405(a), 91.407(a)(1), 91.409(a )(1) & (a)(2), and 91.417(a) & (b ).

S uch special conditions will permit safe operation of the UAs for the limited purpose of conducting aerial acquisitions and research over areas of the United States for compensation or hire. FMRA Section 333 sets forth the requirements for considering whether a UAS will create a hazard to users of the NAS or the public, or otherwise pose a threat to national security; and further, provides the authority for such UAS to operate

without airworthiness certification in accor dance with any requirements that must be established for the safe operation of the UAS in the NAS.19 Likewise, the Administrator may prescribe special conditions pursuant to 14 C.F.R. § 21.16, for operation of the UASs, since the airworthiness regulations o f 14 C.F.R. Part 21 do not contain adequate or appropriate safety standards, due to the novel or unusual design features of the aircraft. Section 21.16, entitled Special Conditions, states the following:

If the FAA finds that the airworthiness regulations of this subchapter do not contain adequate or appropriate safety standards for an aircraft, aircraft engine, or propeller because of a novel or unusual design feature of the aircraft, aircraft engine or propeller, he prescribes special conditions and amen dments thereto for the product. The special conditions are issued in accordance with Part 11 of this chapter and contain such safety standards for the aircraft, aircraft engine or propeller as the FAA finds necessary to establish a level of safety equivale nt to that established in the regulations.

See 14 C.F.R. § 21.16.

Therefore, in accordance with FMRA Section 333 and 14 C.F.R. § 21.16, the FAA may prescribe special conditions for The Sterling Group intended operation of the DJI Phantom, DJI Phantom 2, DJI Phantom 3, DJI Inspire 1, 3DR Solo, Splash Drone, and

Plexidrone UASs, which contain such safety standards that the Administrator finds necessary to establish a level of safety equivalent to that established by 14 C.F.R. Part 21, Subpart H, and 14 C.F. R Sections 61.113(a) & (b), 91.7(a), 91.121, 91.151(b), 91.405(a), 91.407(a)(1), 91.409(a)(1) & (a)(2), and 91.417(a) & (b).

D. Summary t hat c an b e p ublished i n The Federal Register, stating: The r ules f rom

w hich The Sterling Group s eeks e xemption:

The Sterling Group seeks exemption from the requirements of 14 C.F.R Sections 61.113(a)&(b), 91.7(a), 91.121, 91.151(b), 91.405(a), 91.407(a)(1), 91.409(a)(1) & (a)(2), and 91.417(a) & (b).

Description o f the e xemption The Sterling Group s eeks:

This exemptio n will permit The Sterling Group to commercially operate an Unmanned Aircraft System (UAS) for the purpose of conducting aerial acquisitions and research over areas of the United States.20 E. Additional i nformation t o s upport The Sterling Group’s r equest

This Petition is made pursuant to the FAA Modernization and Reform Act of 2012 (FMRA) Section 333, which directs the Secretary of Transportation to determine if certain UAS may operate safely in the NAS. As such, The Sterling Group’s request for exemption may be granted pursuant to the authority of FMRA Section 333 and 14 C.F.R. Part 11, as set forth above.

FMRA Section 333 sets forth the requirements for considering whether a UAS will

create a hazard to users of the NAS or th e public, or otherwise pose a threat to national security; and further, provides the authority for such UAS to operate without

airworthiness certification.

As discussed in detail above, The Sterling Group will operate the DJI Phantom, DJI Phantom 2, DJI P hantom 3, DJI Inspire 1, 3DR Solo, Splash Drone, and Plexidrone UASs safely in the NAS, without creating a hazard to users of the NAS, or the public, or otherwise pose a threat to national security.

CONCLUSION

As set forth herein, The Sterling Group seek s an exemption pursuant to 14 C.F.R. § 11.61 and Section 333 of the FAA Modernization and Reform Act of 2012 (FMRA), which will permit safe operation of the DJI Phantom, DJI Phantom 2, DJI Phantom 3, DJI Inspire 1, 3DR Solo, Splash Drone, and Plexidrone UASs commercially, without an airworthiness certificate, for the limited purpose of conducting aerial acquisitions and

research over areas of the United States. By granting this Petition, the FAA Administrator will be fulfilling the Congressional mandate o f the FAA Modernization and Reform Act of 2012, while also advancing the interests of the public, by allowing The Sterling Group to safely, efficientl y, and economically operate their UASs commercially within the NAS.

WHEREFORE , in accordance with the Fed eral Aviation Regulations and the FAA Modernization and Reform Act of 2012, Section 333, The Sterling Group respectfully requests that the Administrator grant this Petition for an exemption from the requirements of 14 C.F.R Sections 61.113(a) & (b), 91.7(a ), 91.121, 91.151(b), 91.405 (a), 91.407(a)(1), 91.409(a)(1) & (a)(2), and 91.417(a) & (b), and permit The Sterling Group

to operate their DJI Phantom, DJI Phantom 2, DJI Phantom 3, DJI Inspire 1, 3DR Solo, Splash Drone, and Plexidrone UASs commercially for the purpose of conducting aerial acquisitions and research over areas of the United States.

R espectfully submitted,

Brian Taggart , Sole Proprietor The Sterling Group