Jonathan B. Hill

+1 202 776 2725 jhill@cooley.com

1299 PENNSYLVANIA AV ENUE, NW, SUITE 700, WASHINGTON, DC 20004

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- 7899 WWW.COOLEY.COM May 13, 2015

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

Re: FAA

- Docket 2015

- 0513 Supplement to Application/Amendment

Dear Sir/Madam:

Enclosed please find an amendment to the application for exemption filed by Liberty Mutual Insurance Company found in Docket FAA

- 2015

- 0513. Confidential exhibits are not included and will be submitted separately with a request for confi dential treatment.

Sincerely,

Jonathan B. Hill Cooley, LLP Counsel for Liberty Mutual Insurance Company

Encl.

cc: James Williams Robert Pappas

Jake Troutman

Dean Griffith Thuy H. CooperJonathan B. Hill

202/776

- 2725 jhill@cooley.com

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

Re: FAA

- Docket 2015

- 0513 Supplement to Application/Amendment

Dear Sir or Madam:

On February 27, 2015, Liberty Mutual Insurance Company ( “Liberty Mutual”) submitted an exemption application p ursuant to Section 333 of the FAA Modernization and Reform Act of 2012 (the Re form Act) and 14 C.F.R. Part 11. (FAA Docket 20125

- 0513) That exemption was to authorize the commercial operation of “Liberty I” aircraft, as described in the exemption, in commercial service for two use cases also described in the application.

Liberty Mutual herein amends that application to inc lude the following aircraft:

1. “Liberty 2”.

2. “Liberty 3”

3. “Liberty 4”

Liberty 2, as described in the Aircraft Flight Manual (AFM), is a fixed wing aircraft. Liberty 3 is a quadcopter and Liberty 4 is a hexacopter, each described in detail in the confidential AFMs filed herewith. Each weighs less than 55 lbs. and are equipped to conduct aerial photography as described in the original application under the conditions outlined in the original application or, as may be established by the FAA in the e xemption granted under either Section 333 or Section 49 U.S.C. §44701(f). As set forth, Liberty Mutual asks that this application be processed under the FAA’s Summary Approval Process. To that end, Liberty Mutual will accept the conditions set forth in Ex emption No. 11309 and 11460 granted on April 8, 2015 and May 5, 2015, two of several exemptions granted for the use of fixed wing aircraft for

aerial data collection.

As this amended Exemption request is identical to the exemptions already granted, this
request should qualify for summary processing as the FAA has already given public notice of and granted similar exemptions

. The FAA has issued grants of exemption in circumstances similar in all material respects to those presented in this petition. In Gra nts of Exemption Nos. 11062 to Astraeus Aerial (see Docket No. FAA−2014−0352),11109 to Clayco, Inc. (see Docket No. FAA−2014−0507), 11112 to VDOS Global, LLC (see Docket No. FAA−2014−0382), and 11213 to Aeryon Labs, Inc. (see Docket No. FAA−2014−0642), the FAA found that the enhanced safety achieved using an unmanned aircraft (UA) with the specifications described by the petitioner and carrying no passengers or crew, rather than a manned aircraft of significantlyMay 13, 2015 Page Two

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- 2222 WWW.COOLEY.COM greater proportions, carrying crew in additi on to flammable fuel, gives the FAA good cause to find that the UAS operation enabled by this exemption is in the public interest.” As with the approval of the Closed Set Exemptions and the General Aerial Photography Exemptions

, approval of this exemption would thereby enhance safety and fulfill the Secretary of Transportation’s (the FAA Administrator’s) responsibilities to “...establish requirements for the safe operation of such aircraft systems in the national airspace system.” Section 333(c) of the

Reform Act.

The name and address of the applicant is:

Liberty Mutual Insurance Company 157 Berkeley Street
Boston, Massachusetts 02116 Attn: Antony Parchment

Ph: 617

- 357

- 9500

Regulations from which the exemption is requested:

14 C.F.R. 61.113 (a) & (b)

14 C. F.R. 91.119

14 C.F.R. 91.121 14 C.F.R. 91.151 (a) 14 C.F.R. 91.405 (a) 14 C.F.R. 407 (a) (1) 14 C.F.R. 409 (a) (2) 14 C.F.R. 417 (a) & (b)

This amended exemption application is expressly submitted to fulfill Congress’ goal in passing Section 333(a) through (c) of the Reform Act. This law directs the Secretary of Transportation to consider whether certain unmanned aircraft systems may operate safely in the national airspace system (NAS) before completion of the rulemaking required under Section 332

o f the Reform Act. In making this determination, the Secretary is required to determine which types of UASs 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 UASs size, weight, sp eed, and operational capability;

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

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

Reform Act § 333 (a). Lastly, if the Secretary determines that such vehicles “may operate safely in the national airspace system, the Secretary shall establish requirements for the safe operation of such aircraft in the national airspace system.” Id. § 333(c) (emphasis added) 1

.

1 Applicant interprets this provision to place the duty on the Administrator to not only process applications for exemptions under section 333, but for the Administrat or to craft conditionsMay 13, 2015 Page Three

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- 2222 WWW.COOLEY.COM The Federal Aviation Act, in addition to the authorit y granted by Section 333 of Reform Act, expressly grants the FAA the authority to issue exemptions. This statutory authority by its terms includes exempting civil aircraft, as the term is defined under § 40101 of the Act, that includes sUASs, from the req uirement that all civil aircraft must have a current airworthiness

certificate.

The Administrator may grant an exemption from a requirement of a regulation prescribed under subsection (a) or (b) of this section or any sections 44702

- 44716 of the Transport ation Act if the Administrator finds the exemption in the public interest. 49 U.S.C. §44701(f). See

also 49 U.S.C. § 44711(a); 49 U.S.C. § 44704; 14 C.F.R. § 91.203 (a) (1).

Liberty Mutual business and its proposed uses for the additional aircraft are described in its original exemption application in this docket, which is incorporated herein. The se aircraft will operate at altitudes of no more than 400 feet, as further explained, and only in line of sight. They will operate only within the areas as d escribed in the Amended Flight Operations Manual (“FOM”) and Aircraft Flight Manuals (“AFMs”) attached as Exhibits 1 through 4

. 2 Operations in compliance with these manuals will ensure that the sUAS will “not create a hazard to users of the national airsp ace system or the public” 3 and that the aircraft will operate in compliance with the conditions set forth in this application.

Given the small size of the sUASs involved and the restricted environment within which they will operate, the applicant falls s quarely within that zone of safety (an equivalent level of safety) in which Congress envisioned that the FAA must, by exemption, allow commercial operations of UASs to commence immediately. Also due to the size of the UASs, the restricted

areas in which t he relevant sUASs will operate and the fact that aircraft will be flown by pilots holding at least a FAA pilot license, approval of the application presents no national security

issue.

Given the clear direction in Section 333 of the Reform Act, the aut hority contained in the Federal Aviation Act, as amended; the strong equivalent level of safety surrounding the proposed operations, and the significant public benefit, including enhanced safety, reduction in environmental impacts, including reduced emissi ons associated with allowing battery powered UASs for these functions instead of turbine or gas power aircraft/rotorcraft and operations with pilots having at least a private pilot license, the grant of the requested exemptions is in the public interest. Accordingly, the applicant respectfully requests that the FAA grant the requested exemption and this amendment without delay.

for the safe operation of the UAS , if it should be determined that the conditions set forth herein do not fulfill the statutory requirements for approval.

2 Applicant submits the amended FOM and AFM for each aircraft applied for hereunder, marked “CONFIDENTIAL”, as they contain propriety business information that is not released to the public and is protected under the Freedom of Information Act 5 U.S.C. § 553

etc.

3 Reform Act Section 333 (b).May 13, 2015 Page Four

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- 2222 WWW.COOLEY.COM AIRCRAFT AND EQUIVALENT LEVEL OF SAFETY

The FAA has granted exemptions to the following regulations in the listed exemptions; 14 C.F.R. §§ (a) and (c ), 61.101(e ) (4) and (5), 61.113 (a), 61.315 (a), 91.7 (a), 91.119 (c), 91.121, 91.151 (a) (1), 91.405(a), 91.405 (a)(1), 91.409 (a) (1) and (2) and 91.417(a) and (b) to allow aerial data collection ( See , FAA Exemptions 11309,11460 and 11490)

14 C.F.R. Part 61 : Private Pilot Privileges and Limitations: Pilot in Command

Sections 61.113 (a) & (b) limit private pilots to non

- commercial operations

. Because the UAS will not carry a pilot or passengers, the proposed operations can ac hieve the equivalent level of safety of current operations by requiring the PIC operating the aircraft to hold a certificate issued by the FAA authorizing operation of any aircraft (ATP, Commercial, Private, Recreational or Sport). Unlike a conventional ai rcraft that carries 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 planned and coordinated in advance as set forth in the Manual.

The level of safety provided by the requirements included in the Manual exceeds that provided by a single individual holding a commercial pilot’s certificate operating a conventional aircraft. The risks associated with the operation of the sUAS are so diminished fr om the level of risk associated with commercial operations contemplated by Part 61 when drafted, that allowing operations of the sUAS as requested with a ny certificate issued by the FAA as the PIC exceeds the present level of safety achieved by 14 C.F.R. P art 61 . The FAA has granted exemptions for private pilots to conduct similar operations in Exemptions 11062, 11213, 11360 and 11447.

14 C.F.R. § 91.119: Minimum Safe Altitudes

Section 91.119 establishes safe altitudes for operation of civil aircraft. Section 91.119 (d) allows helicopters to be operated at less than the minimums prescribed, provided the person operating the helicopter complies with any route or altitudes prescribed for helicopters by the FAA. As this exemption is for a sUAS that are h elicopter s and the exemption requests authority to operate at altitudes up to 400 AGL an exemption may be needed to allow such operations. As set forth herein, except for the limited conditions stated in the Manual, the UAS will never operate at higher th an 400 AGL.

The equivalent level of safety will be achieved given the size, weight, speed of the UAS as well as the location where it is operated. No flight will be taken without the permission of the property owner, facility owner and local official s. Because of the advance notice to the property owner and participants all affected individuals will be aware of the planned flight operations as set forth in the Manual. Compared to flight operations with aircraft or rotorcraft weighting far

more than the maximum 55lbs. proposed herein and the lack of flammable fuel, any risk associated with these operations is far less than those presently presented with conventional aircraft operating at or below 500 AGL in the aerial photography industry. In additi on, the low

altitude operations of the sUAS will ensure separation between these small

- UAS operations and the operations of conventional aircraft that must comply with Section 91.119. The FAA hasMay 13, 2015 Page Five

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11447

.

14 C.F.R. § 91.121: Altimeter Settings

This regulation requires each person operating an aircraft to maintain cruising altitude b y reference to an altimeter that is set “...to the elevation of the departure airport or an appropriate altimeter setting available before departure.” As each sUAS model in at least one operating mode will not have a barometric altimeter, but instead a GPS altitude read out, an exemption will be needed. An equivalent level of safety will be achieved by the operator, pursuant to the Manual and Safety Check list, confirming the altitude of the launch site shown on the GPS altitude indicator before flight. Th e FAA has granted exemptions to conduct similar operations in Exemptions 11062, 11213, 11360 and 11447

.

14 C.F.R. § 91.151(a): Fuel Requirements for Flight in VFR Conditions

Section 91.151 (a) prohibits an individual from beginning “a flight in an airpl ane 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 battery powering the sUAS provides approximately 40 minutes of powered flight. To meet the 30 minute reserve requirement in 14 C.F.R. § 91.151, sUAS flights would be limited to approximately 10 minutes in length. Given the limitations on the UAS’s proposed flight area and the location of its proposed operations within a predetermined area, a longer time frame for flight in daylight or night VFR conditions is reasonable.

Applicant believes th at an exemption from 14 C.F.R. § 91.151(a) falls within the scope of prior exemptions. See Exemption 10673 (allowing Lockheed Martin Corporation to operate without compliance with FAR 91.151 (a)). Operating the small UAS, in a tightly controlled area

whe re only people and property owners or official representatives who have signed waivers will be allowed, with less than 30 minutes of reserve fuel, does not engender the type of risks that Section 91.151(a) was intended to alleviate given the size and speed of the small UAS.

Applicant believes that an equivalent level of safety can be achieved by limiting flights to

5 minutes of reserve time on the batteries. This restriction would 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 operations, including Exemptions 2689F, 5745, 10673, 10808 and Exemptio ns 11062, 11213, 11360 and 11447.

14 C.F.R. Part 91 : Maintenance Inspections

These regulations require that an aircraft operator or owner “shall have that aircraft inspected as prescribed in subpart E of this part and shall between required inspections, exceptMay 13, 2015 Page Six

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- 2222 WWW.COOLEY.COM as provided in paragraph (c) of this section, have discrepancies repaired as prescribed in part 43 of this chapter...,” and others shall inspect or maintain the aircraft in compliance with Part 43.

Given that these section and Part 43 apply only t o aircraft with an airworthiness certificate, these sections will not apply to the applicant. Maintenance will be accomplished by the operator pursuant to the flight manual and operating handbook as referenced in the FOM

attached as confidential See Exhib it 1 . 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 areas for limited periods of time. If mechanical issues arise the UAS can land immediately and

will be operating from no higher than 400 feet AGL. As provided in the FOM the operator will ensure that the UAS is in working order prior to initiating flight, perform required maintenance, and keep a log of any maintenance performed. Moreover, the operator is the person most familiar with the aircraft and best suited to maintain the aircraft in an airworthy condition to provide the equivalent level of safety. The FAA has granted exemptions for similar operations in Exemptions 11062, 11213, 11360 and 11447

.

*********

Pursuant to 14 C.F.R. Part 11, the following summary is provided for publication in the Federal Register, should it be determined that publication is needed:

Applicant seeks an exemption from the following rules:

14 C.F.R. §§(a) and (c ), 61 .101(e ) (4) and (5), 61.113 (a), 61.315 (a), 91.7 (a), 91.119 (c), 91.121, 91.151 (a) (1), 91.405(a), 91.405 (a)(1), 91.409 (a) (1) and (2) and 91.417(a) and (b) to operate commercially a small unmanned vehicle (55 lbs. or less) in motion picture and

tele vision operations and aerial data collection

.

Approval of exemptions allowing commercial operations of sUASs for the Use Cases will enhance safety by reducing risk. Keeping employees and contractors off structures and away from property that is damaged as the result of manmade or natural disasters will reduce injuries

and save lives

- also reducing costs. Conventional operations, using jet or piston power aircraft, operate at extremely low altitudes in extreme proximity to people and structures present ri sks associated with vehicles that weigh in the neighborhood of 6,000 lbs., carrying large amounts of jet A or other fuel (140 gallons for jet helicopters). Such aircraft must fly to and from the project location. In contrast, a sUAS weighing fewer than 5 5 lbs. and powered by batteries eliminates virtually all of that risk given the reduced mass and lack of combustible fuel carried on board. The sUAS is carried to the target area and not flown. The sUAS will carry no passengers or crew and, therefore, wi ll not expose 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 the grant of the

ex emptions requested herein. These lightweight aircraft operate at slow speeds, close to the ground, and in areas that are under the control of the customer for the inspections and, as a result, are far safer than conventional operations conducted with turb ine helicopters operating inMay 13, 2015 Page Seven

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Satisfaction of the criteria provided in Section 333 of the Reform Act of 2012

-- size, weight, speed, operating capabilities, proximity to airports and populated areas and operation within visual line of sight and national security

– provide more than adequate justification for the grant of the requested exemptions allowing commercial operation of applicant’s UAS s for the Purposes outlined herein and are consistent with exemptions already granted, including Exemptions 11309, 11460 and 11490

.

Sincerely,

Jonathan B. Hill

M. Anne Swanson Cooley, LLP

Counsel for Liberty Mutual Insurance Company

John McGraw John McGraw Aerospace Consulting, LLC Agent for Liberty Mutual Insurance Company

cc: James Williams Robert Pappas

Jake Troutman

Dean Griffith Thuy H. Cooper

# Exhibit 1
(Filed as Confidential)

# Exhibit 2
(Filed as Confidential)

# Exhibit 3
(Filed as Confidential)

# Exhibit 4
(Filed as Confidential)