June 16, 2015

U. S. Department of Transportation Docket Management System 1200 New Jersey Ave., SE Washington, DC 20590

**Re:** Exemption Request Section 333 of the FAA Reform Ac t and Part 11 of the Federal Aviation Regulations f rom 14 C.F.R. 45.23(b);14 CFR Part 21;14 CFR 61.113 (a) & (b); 91.7 (a);91.9 (b) (2);91.103(b); 91.109;91.119 ; 91.121; 91.151(a);91.203(a) & (b);91.405 (a); 91.407(a) (1) ; 91.409 (a) (2);91.417 (a) & (b).

Dear Sir or Madam:

Pursuant to Section 333 of the FAA Modernization an d Reform Act of 2012 (the Reform Act) and 14 C.F.R. Part 11, MacKay Sposito, Inc, operator of Small Unmanned Air craft Systems ("sUASs") intends to offer on-demand commercial UAS operations for a host of industries and applica tions including:

• Utility-power generation system inspections and pat rolling

• Pipeline inspection and patrolling

• Filmmaking, cinematography, and videography

• Precision agriculture

• Wildlife and forestry monitoring

• Aerial surveying

• Construction site inspection and monitoring

• Public Entity Support Operations

hereby applies for an exemption from the listed Fed eral Aviation Regulations ("FARs") to allow commerc ial operation of its sUASs, so long as such operations are conduc ted within and under the conditions outlined herein or as may be established by the FAA as required by Section 333.

As described more fully below, the requested exempt ion would permit the operation of small, unmanned a nd relatively inexpensive sUAS under controlled condit ions in airspace that is 1) limited 2) predetermine d 3) controlled as to access and 4) would provide safety enhancements to the already safe operations using conventional aircraft. Approval of this exemption would thereby enhance safety and fulfill the Secretary of Transpo rtation's (the FAA Administrator's) responsibilities to "...establ ish requirements for the safe operation of such air craft systems in the national airspace system." Section 333(c) of the Re form Act.6/16/2015

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**The name and address of the applicant is:** MacKay Sposito, Inc
Attn: Derrick Smith 1325 SE Tech Center Drive, Suite 140 Vancouver, WA 98683
Ph: 509-366-8211 Email: dsmith@mackaysposito.com

**Regulations from which the exemption is requested:**

14 CFR Part 21 14 C.F.R. 91.121 14 C.F.R. 45.23(b) 14 CFR 91.151 (a) 14 CFR 61.113 (a) & (b) 14 CFR 91.203 (a) & (b) 14 C.F.R. 91.7 (a) 14 CFR 91.405 (a) 14 CFR 91.9 (b) (2) 14 CFR 407 (a) (1) 14 C.F.R. 91.103 14 CFR 409 (a) (2) 14 C.F.R. 91.109 14 CFR 417 (a) & (b)

14 C.F. R. 91.119

This exemption application is expressly submitted t o fulfill Congress' goal in passing Section 333(a) through (c) of the Reform Act. This law directs the Secretary of Trans portation to consider whether certain unmanned airc raft systems may operate safely in the national airspace system (NAS) before completion of the rulemaking r equired under Section 332 of the Reform Act. In making this determination, the Secretary is required to determ ine which types of UASs do not create a hazard to users of th e NAS or the public or pose a threat to national se curity in light of the following:

• The UAS's size, weigh t, speed, and operational cap ability

• Operation of the UAS in close proximity to airports and populated areas

• Operation of the UAS within visual line of sight of the operator

Reform Act § 333 (a). Lastly, if the Secretary dete rmines that such vehicles "may operate safely in th e national airspace system, the Secretary shall establish requ irements for the safe operation of such aircraft in the national airspace system." Id. §333(c) (emphasis added)

Applicant interprets this provision to place the du ty on the Administrator to not only process applica tions for exemptions under section 333, but for the Administr ator to craft conditions for the safe operation of the UAS, if it
should be determined that the conditions set forth herein do not fulfill the statutory requirements fo r approval.

The Federal Aviation Act expressly grants the FAA t he authority to issue exemptions. This statutory au thority by its terms includes exempting civil aircraft, as the ter m is defined under §40101 of the Act that includes sUASs, from the requirement that all civil aircraft must have a cur rent airworthiness certificate.

The Administrator may grant an exemption from a req uirement of a regulation prescribed under subsectio n (a) or (b) of this section or any sections 44702-44716 of this title if the Administrator finds the exemption in the public interest. 49 U.S.C. §44701(f) See also 49 USC §44711 (a); 49 USC §44704; 14 CFR §91.203 (a) (1).

MacKay Sposito’s sUASs are rotorcraft, weighting 55 or fewer lbs. including payload. They operate, und er normal conditions at a speed of no more than 50 knots and have the capability to hover, and move in the verti cal and horizontal plane simultaneously. They will operate only in line of sight and will operate only within a sterile area.6/16/2015

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Such operations will insure that the sUAS will "not create a hazard to users of the national airspace system or the public."

Reform Act Section 333 (b).
Given the small size of the sUASs involved and the restricted sterile environment within which they wi ll operate, the applicant falls squarely within that zone of safety (an equivalent level of safety) in which Congress envisioned that the FAA must, by exemption, allow commercial o perations of UASs to commence immediately. Also due to the
size of the UASs and the restricted areas in which the relevant sUASs will operate, approval of the ap plication presents no national security issue. Given the clear directi on in Section 333 of the Reform Act, the authority contained in the Federal Aviation Act, as amended; the strong equiva lent level of safety surrounding the proposed opera tions, and the significant public benefit, including enhanced safe ty, reduction in environmental impacts, including r educed emissions associated with allowing UASs, the grant of the requested exemptions is in the public intere st.

Accordingly, the applicant respectfully requests th at the FAA grant the requested exemption without de lay.

**AIRCRAFT AND EQUIVALENT LEVEL OF SAFETY** The applicant proposes that the exemption requested herein apply to civil aircraft that have the chara cteristics and that operate with the limitations listed herein. Th ese limitations provide for at least an equivalent or even higher level of safety to operations under the current reg ulatory structure because the proposed operations r epresent a safety enhancement to the already safe operations c onducted with conventional aircraft. These limitati ons and conditions to which MacKay Sposito agrees to be bou nd when conducting commercial operations under an F AA issued exemption include:

1. The sUAS will weigh less than 55 lbs.
2. Flights will be operated within line of sight of a pilot and/or observer.
3. Maximum total flight time for each operational flig ht will be 30 minutes. Flights will be terminated a t 25% battery power reserve should that occur prior to the 30 min ute limit.
4. Flights will be operated at an altitude of no more than 400 feet AGL or, not more than 200 feet above an elevated platform from which filming is planned.
5. Minimum crew for each operation will consist of the sUAS Pilot, the Visual Observer and/or the Camera Operator.
6. sUAS pilot will be an FAA licensed airman with at l east a recreational pilot’s certificate.
7. sUAS Pilot will be Pilot in Command (PIC). If a pil ot certificate holder other than the sUAS Pilot, wh o possess the necessary PIC qualifications, is also present ( i.e. the Visual Observer), that person can also be designated as
the PIC.
8. The UAS will only operate within a confined "Steril e Area" of the flight operations area.
9. A briefing will be conducted in regard to the plann ed sUAS operations prior to each day's activities. It will be mandatory that all personnel who will be performing duties within the boundaries of the safety perimet er be present for this briefing.
10. The operator will obtain the consent of all persons involved and ensure that only consenting persons w ill be allowed within 100 feet of the flight operation, an d this radius may be reduced to 30 feet based upon an equivalent level of safety determination.
11. Pilot and observer will have been trained in operat ion of UAS generally and received up-to-date inform ation on the particular UAS to be operated.
12. Observer and pilot will at all times be able to com municate by voice and/or text.
13. Written and/or oral permission from the relevant pr operty holders will be obtained.
14. All required permissions and permits will be obtain ed from territorial, state, county or city jurisdic tions, including local law enforcement, fire, or other appropriate g overnmental agencies.6/16/2015

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15. If the sUAS loses communications or loses its GPS s ignal, the UAS will have capability to return to a predetermined location within the Security Perimeter a nd land.
16. The sUAS will have the capability to abort a flight in case of unpredicted obstacles or emergencies.

**14 C.F.R. Part 21, Subpart H: Airworthiness Certifi cates 14 C.F.R. §91.203 (a) (1)**  Subpart H, entitled Airworthiness Certificates, est ablishes the procedural requirements for the issuan ce of airworthiness certificates as required by FAR §91.2 03 (a) (1). Given the size and limited operating ar ea associated with the aircraft to be utilized by the Applicant, an exemption from Part 21 Subpart H meets the requi rements of an equivalent level of safety under Part 11 and Section 333 of the Reform Act. The Federal Aviation Act (49 U.S.C.§44701 (f)) and Section 333 of the Reform Act both authorize the FAA to exempt aircraft from the requirement for an airworthiness certificate, upon consideratio n of the size, weight, speed, operational capabilit y, and proximity to airports and populated areas of the particular U AS. In all cases, an analysis of these criteria dem onstrates that the UAS operated without an airworthiness certificate, in the restricted environment and under the conditi ons proposed will be at least as safe, or safer than, a conventional aircraft (fixed wing or rotorcraft) operating with an airworthiness
certificate without the restrictions and conditions proposed.

The sUAS to be operated hereunder is less than 55 l bs. fully loaded, carries neither a pilot nor passe nger, carries no explosive materials or flammable liquid fuels, a nd operates exclusively within a secured area as se t out in the Manual. Unlike other civil aircraft, operations und er this exemption will be tightly controlled and mo nitored by both the operator, pursuant to the Manual's requirements , and under the requirements and in compliance with local public safety requirements, to provide security for the ar ea of operation as is now done with conventional fi lming. The FAA will have advance notice of all operations. These s afety enhancements, which already apply to civil ai rcraft operated in connection with motion picture and television pr oduction, provide a greater degree of safety to the public and property owners than conventional operations conduc ted with airworthiness certificates issued under 14 C.F.R. Part 21, Subpart H. Lastly, application of these same cr iteria demonstrates that there is no credible threa t to national security posed by the UAS, due to its size, speed o f operation, location of operation, lack of explosi ve materials or flammable liquid fuels, and inability to carry a su bstantial external loads.

**14 C.F.R. § 45.23 (b). Marking of the Aircraft** The regulation requires: When marks include only the Roman capital letter "N " and the registration number is displayed on limit ed, restricted or light-sport category aircraft or experimental or provisionally certificated aircraft, the operator must also display on that aircraft near each entrance to the cabin, cock pit, or pilot station, in letters not less than 2 i nches nor more than 6 inches high, the words "limited," "restricted," " light-sport," "experimental," or "provisional," as applicable.

Even though the UAS will have no airworthiness cert ificate, an exemption may be needed as the UAS will have no entrance to the cabin, cockpit or pilot station on which the word "Experimental" can be placed. Giv en the size of the sUAV, two-inch lettering will be impossible. The word "Experimental" will be placed on the fuse lage in compliance with §45.29 (f). The equivalent level of safety will be provided by having the sUAV marked on its fuselage as required by §45.29 (f) where the pilot, observer and others working wi th the sUAV will see the identification of the UAS as "Experimental." The FAA has issued the following exemptions to this regulation to Exemptions Nos. 10700, 8738, 10167 a nd 10167A.

**14 C.F.R. § 61.113 (a) & (b): Private Pilot Privile ges and Limitations: Pilot in Command.**  Sections 61.113 (a) & (b) limit private pilots to n on-commercial operations. Because the UAS will not carry a pilot or passengers, the proposed operations can achieve the equivalent level of safety of current operations b y requiring the PIC operating the aircraft to have a private pi lot's license rather than a commercial pilot's lice nse to operate this6/16/2015

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small UAS. Unlike a conventional aircraft that carr ies the pilot and passengers, the sUAS is remotely controlled with no living thing on board. The area of operation is controlled and restricted, and all flights are plan ned and coordinated in advance. The level of safety provided by the req uirements included in the Manual exceeds that provi ded by a single individual holding a commercial pilot's certificate operating a conventional aircraft. The risks assoc iated with the operation of the sUAS are so diminished from the le vel of risk associated with commercial operations c ontemplated by Part 61 when drafted, that allowing operations o f the sUAS as requested with a private pilot as the PIC exceeds the present level of safety achieved by 14 C.F.R. §61.1 13 (a) & (b).

**14 C.F.R. §91.7(a): Civil aircraft airworthiness.** The regulation requires that no person may operate a civil aircraft unless it is in airworthy conditio n. As there will be no airworthiness certificate issued for the aircraft, should this exemption be granted, no FAA regulatory standard will exist for determining airworthiness. Given the size of the aircraft and the requirements contained in the Manual for maintenance and use of safety check lists prior to each flight, as set forth in Sections J, L and Q, an equivalent level of safety will be provided.

**14 C.F.R. § 91.9 (b) (2): Civil Aircraft Flight Man ual in the Aircraft.** 

Section 91.9 (b) (2) provides:

No person may operate a U.S.-registered civil aircr aft ... (2) For which an Airplane or Rotorcraft Flight Manu al is not required by §21.5 of this chapter, unless there is available in the aircraft a current approved airplane or Roto rcraft Flight Manual, approved manual material, mar kings, and placards, or any combination thereof. The sUAS, giv en its size and configuration has no ability or pla ce to carry such a flight manual on the aircraft, not only because the re is no pilot on board, but because there is no ro om or capacity to carry such an item on the aircraft.

The equivalent level of safety will be maintained b y keeping the flight manual at the ground control p oint where the pilot flying the sUAS will have immediate access to it. The FAA has issued the following exemptions to this regulation: Exemption Nos. 8607, 8737, 8738, 9299, 9299A, 9565, 9565B, 10167, 10167A , 10602, 32827, and 10700.

**14 C.F.R. § 91.103: Preflight action** This regulation requires each pilot in command to t ake certain actions before flight to insure the saf ety of flight. As FAA approved rotorcraft flight manuals will not be provided for the aircraft an exemption will be need ed. The PIC will take all actions including reviewing weather, flight battery requirements, landing and takeoff di stances and aircraft performance data before initiation of flight.

**14 C.F.R. §91.109: Flight instruction:** Section 91.103 provides that no person may operate a civil aircraft (except a manned free balloon) tha t is being used for flight instruction unless that aircraft has ful ly functioning dual controls. sUASs and remotely piloted aircraft, by their desig n do not have fully functional dual controls. Fligh t control is accomplished through the use of a control box that communicates with the aircraft via radio communicat ions. The FAA has approved exemptions for flight training wit hout fully functional dual controls for a number of aircraft and for flight instruction in experimental aircraft. See Ex emption Nos.5778K & 9862A. The equivalent level of safety provided by the fact that neither a pilot nor passe ngers will be carried in the aircraft and by the si ze and speed of
the aircraft.

**14 C.F.R. §91.119: Minimum safe altitudes**6/16/2015

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Section 91.119 establishes safe altitudes for opera tion of civil aircraft. Section 91.119 (d) allows h elicopters to be operated at less than the minimums prescribed, prov ided the person operating the helicopter complies with any r oute or altitudes prescribed for helicopters by the FAA. As this exemption is for a sUAS that is a helicopter and th e exemption requests authority to operate at altitu des up to 400 AGL, or not more than 200 above an elevated platfor m from which filming is planned, an exemption may b e needed to allow such operations. As set forth herein, exce pt for the limited conditions stated in the Manual, the UAS will never operate at higher than 400 AGL. It will howev er be operated in a restricted area with security p erimeter, where buildings and people will not be exposed to operati ons without their pre-obtained consent. The equival ent level of safety will be achieved given the size, weight, and speed of the UAS as well as the location where it is operated. No flight will be taken without the required permis sion of the property owner or local officials. Beca use of the advance notice to the property owner and participan ts in the aerial activity, all affected individuals will be aware of the planned flight operations. Compared to flight o perations with aircraft or rotorcraft weighting far more than the maximum 55Ibs. proposed herein and the lack of flam mable fuel, any risk associated with these operatio ns is far less than those presently presented with conventional ai rcraft operating at or below 500 AGL other industri es. In addition, the low-altitude operations of the sUAS will ensure separation between these small-UAS operations and the operations of conventional aircraft that must compl y with Section 91.119.

**14 C.F.R. §91.121 Altimeter Settings** This regulation requires each person operating an a ircraft to maintain cruising altitude by reference to an altimeter that is set "...to the elevation of the departure airport o r an appropriate altimeter setting available before departure." As the sUAS may not have a barometric altimeter, but inste ad a GPS altitude read out, an exemption may be nee ded. An equivalent level of safety will be achieved by the operator, pursuant to the Manual and Safety Check l ist, confirming the altitude of the launch site shown on the GPS altitude indicator before flight.

**14 C.F.R. § 91.151(a): Fuel Requirements for Flight in VFR Conditions**  Section 91.151 (a) prohibits an individual from beg inning "a flight in an airplane under VFR condition s unless (considering wind and forecast weather conditions) there is enough fuel to fly to the first point of i ntended landing, and, assuming normal cruising speed — (1) During th e day, to fly after that for at least 30 minutes; o r (2) At night, to fly after that for at least 45 minutes." The battery powering the sUAS provides approximatel y 40 minutes of powered flight. To meet the 30-minu te reserve requirement in 14 CFR §91.151, sUAS flights would b e limited to approximately 10 minutes in length. Gi ven the limitations on the UAS's proposed flight area and t he location of its proposed operations within a pre determined area, a longer time frame for flight in daylight or night VFR conditions is reasonable. Applicant beli eves that an exemption from 14 CFR §91.151(a) falls within the s cope of prior exemptions. See Exemption 10673 (allowing Lockheed Martin Corporation to operate without comp liance with FAR 91.151 (a)). Operating the small UA S, in a tightly controlled area where only people and prope rty owners or official representatives who have sig ned waivers will be allowed, with less than 30 minutes of reser ve fuel, does not engender the type of risks that S ection 91.151(a) was intended to alleviate given the size and speed of the small UAS. Additionally, limiting sUAS fligh ts to 10 minutes would greatly reduce the utility for which the exem ption will be granted. Applicant believes that an equivalent level of safe ty can be achieved by limiting flights to 30 minute s or 25% of battery power whichever happens first. This restriction wou ld be more than adequate to return the sUAS to its planned landing zone from anywhere in its limited operating area. Similar exemptions have been granted to other opera tions, including Exemptions 2689F, 5745, 10673, and 10808.

**14 C.F.R. §91.203 (a) and (b): Carrying Civil Aircr aft Certification and Registration**  The regulation provides in pertinent part: (a) Except as provided in § 91.715, no person may opera te a civil aircraft unless it has within it the fol lowing:6/16/2015

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(1) An appropriate and current airworthiness certif icate. . . . (b) No person may operate a civil aircraft unless the a irworthiness certificate required by paragraph (a) of this section or a special flight authorization issued under §91. 715 is displayed at the cabin or cockpit entrance s o that it is legible to passengers or crew. The UAS fully loaded weighs no more than 55 lbs and is operated without an onboard pilot. As such, there is no ability or plac e to carry certification and registration documents or to display
them on the sUAS. An equivalent level of safety will be achieved by k eeping these documents at the ground control point where the pilot flying the sUAS will have immediate access to them; to the extent they are applicable to the sUAS. The FAA has issued numerous exemptions to this regulation. A re presentative sample of other exceptions includes Ex emption Nos. 9565, 9665, 9789, 9789A, 9797, 9797A, 9816A, a nd 10700.

**14 C.F.R. §91.405 (a); 407 (a) (1); 409 (a) (2); 41 7(a) & (b): Maintenance Inspections**  These regulations require that an aircraft operator or owner "shall have that aircraft inspected as pr escribed in subpart E of this part and shall between required i nspections, except as provided in paragraph (c) of this section, have discrepancies repaired as prescribed in part 43 of this chapter...," and others shall inspect or maint ain the aircraft in compliance with Part 43. Given that these section and Part 43 apply only to aircraft with an airworthiness certificate, these s ections will not apply to the applicant. The operator pursuant t o the flight manual and operating handbook will acc omplish maintenance. An equivalent level of safety will be achieved because these small UASs are very limited in size and will carry a small payload and operate only in rest ricted areas for limited periods of time. If mechan ical issues arise the UAS can land immediately and will be operating from no higher than 400 feet AGL. As provided in the Ma nual, the operator will ensure that the UAS is in working ord er prior to initiating flight, perform required mai ntenance, and keep a log of any maintenance performed. Moreover, the operator is the person most familiar with the a ircraft and
best suited to maintain the aircraft in an airworth y condition to provide the equivalent level of safe ty.

********* Pursuant to 14 C.F.R. Part 11, the following summar y is provided for publication in the Federal Regist er, should it be determined that publication is needed: Applicant seeks an exemption from the following rul es: 14 C.F.R. §21, subpart H; 14 C.F.R 45.23(b);14 C.F. R. §§ 61.113( a) & (b);91.7 (a); 91.9 (b) (2);91.10 3(b);91.109; 91.119; 91.121; 91.151(a);91.203(a) and (b); 91.405 (a); 91.407 (a) (1); 91.409 (a) (2); 91.409 (a) (2 ) and 91.417 (a) & (b) to operate commercially a small un manned vehicle (55Ibs or less).

Approval of exemptions allowing commercial operatio ns of sUASs, will enhance safety by reducing risk. Conventional operations, using jet or piston power aircraft, operate at extremely low altitudes just f eet from the subjects being filmed and in extreme proximity to p eople and structures and present the risks associat ed with vehicles that weigh in the neighborhood of 4,000Ibs, carryin g large amounts of jet A or other fuel. Such aircra ft must fly to and from the operational location. In contrast, a s UAS weighing fewer than 55 lbs. and powered by batt eries eliminates virtually all of that risk given the reduced mass a nd lack of combustible fuel carried on board. The s UAS is carried to the operation site and not flown. The sUAS will car ry no passengers or crew and, therefore, will not e xpose them to the risks associated with manned aircraft flights.

The operation of small UASs, weighting less than 55 lbs., conducted in the strict conditions outlined above, will provide an equivalent level of safety supporting th e grant of the exemptions requested herein, includi ng exempting the applicant from the requirements of Part 21 and allowing commercial operations. These lightweight a ircraft operate at slow speeds, close to the ground, and in a steri le environment and, as a result, are far safer than conventional operations conducted with turbine helicopters opera ting in close proximity to the ground and people.6/16/2015

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**Privacy** All flights will occur over private or controlled a ccess property with the property owner's prior cons ent and knowledge. Filming will be of people who have also consented to being filmed or otherwise have agreed to be in the area where filming will take place. The grant o f this exemption request will provide improved safe ty in both day and night operations. Satisfaction of the criteria provided in Section 333 of the Reform Act of 2012-- size, weight, speed, operating capabilities, proximity to airport s and populated areas and operation within visual l ine of sight and national security — provide more than adequate justification for the grant of the requested exempt ions allowing commercial operation of applicant's UAS.

Sincerely,

Derrick P. Smith, P.E.