### May 19, 2015

Exemption No. 11616 Regulatory Docket No. FAA

– 20 15

– 0563

Mr. Paul Capistrant Capstone Aviation Corporation 790 Roy al Saint George Dr ive

, S ui te 141#128 Naperville, I L 60563

Dear Mr. Capistrant :

This letter is to inform you that we have granted your request for exemption. It transmits our decision, explains its basis, and gives you the conditions and limitations of the exemption, including the date it ends.

By letter dated March 4, 2015 , you petitioned the Federal Aviation Administration (FAA) on

behalf of Capstone Aviation Corporation ( hereinafter petitioner or operator ) for an exemption

. The exemption would all ow the petitioner to operate an unmanned ai rcr aft system (UAS) to

conduct high

- resolution aerial imagery for compensation or hire

.

See Appendix A for the petition submitted to the FAA des cribing the proposed operations and

the regulations that the petitioner seeks an exemption

.

The FAA has determine d that good cause exists for not publishing a summary of the petition in the Federal Register because the requested exemption would not set a precedent, and any delay in acting on this petition would be detrimental to the petitioner

.

Airworthiness Certification

The UAS proposed by the petitioner is a DJI Phantom 2 Vision+

.

In accordance with the statutory criteria provided in Section 333 of P ublic Law 112

− 95 in

reference to 49 U

. S

. C

. § 44704, and in consideration of the size, weight, speed, and limited

### 2

operating area associated with the aircraft and its operation, the Secretary of Transportation

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

finds that relief from 14 CFR part 21

, C ertification procedure s for products and parts, Subpart H

— Airworthiness Certificates , and any associated noise certification and testing requirements of part 36, is not necessary.

The Basis for Our Decision

You have requested to use a UAS for aerial data collection

. The FAA has issued grants of exemption in circumstances similar in all material respects to those presented in your petition. In Grants of Exemption No s

. 11062 to Astraeus Aerial ( see Docket No. FAA−2014−0352), 11109 to Clayco, Inc. ( see Docket No. FAA

− 20 14

− 0507), 11112 to VDOS Global, LLC ( see Docket No. FAA−2014−0382), and 11213 to Aeryon Lab s , 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 peti tioner and carrying no passengers or crew, rather than a manned aircraft of significantly greater proportions, carrying crew in addition to flammable fuel, gives the FAA good cause to find that the UAS operation enabled by this exemption is in the public i nterest.

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

—

 They are similar in all material respects to relief previously requested in Grant of Exemption Nos. 11062, 11109, 11112, and 11213 ;

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

11213 also apply to the situation you present; and

 A grant of exemption is in the public interest.

Our Decision

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

Ther efore, pursuant to the authority contained in 49 U.S.C. 106(f), 40113, and 44701, delegated to me by the Administrator, Capstone Aviation Corporation is granted an exemption

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

, 91.7(a), 91.119(c), 91.121, 91.151(a)(1), 91.405(a), 91.407(a)(1), 91.409(a)(1) and (2), and 91.417(a) and (b), to the extent necessary to allow the petitioner to operate a UAS to perform aerial data

collection

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

Conditions and Limitations

In this grant of exemption, Capstone Aviation Corporation is hereafter referred to as

the operator.

Failure to comply with any of the conditions and limitations of this grant of exemption will be grounds for the immediate suspension or rescission of this exemption.

### 3

1. Operations authorized by this grant of exemption are limited to the DJI Phantom 2

Vision+ when weighing less than 55 pounds including payload. Proposed operations of any other aircr aft will require a new petition or a petition to amend this exemption

.

2. Operations for the purpose of closed

- set motion picture and television filming are

not permitted.

3. The UA may not be operated at a speed exceeding 87 knots (100 miles per hour). The exemption holder may use either groundspeed or calibrated airspeed to determine compliance with the 87 knot speed restriction. In no case will the UA be operated at airspeeds greater than the maximum UA operating airspeed recommended by the

aircraft manuf

acturer.

4. The UA must be operated at an altitude of no more than 400 feet above ground level
(AGL). Altitude must be reported in feet AGL.

5. The UA must be operated within visual line of sight (VLOS) of the PIC at all times. This requires the PIC to be able to use human vision unaided by any device other than corrective lenses, as specified on the PIC’s FAA

- issued airman medical certificate or

U.S. driver’s license.

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

the visual line of sight (VLOS) of the PIC and VO at all times. The VO may be used to satisfy the VLOS requirement as long as the PIC always maintains VLOS capability. The VO and PIC must be able to communicate verbally at all times ;

e lectronic messaging or texting is not permitted during flight operations. The PIC must be designated before the flight and cannot transfer his or her designation for the duration of the flight. The PIC must ensure that the VO can perform the duties required of the VO.

7. This e xemption and all documents needed to operate the UAS and conduct its operations in accordance with the conditions and limitations stated in this grant of exemption, are hereinafter referred to as the operating documents. The operating

documents must be ac cessible during UAS operations and made available to the Administrator upon request. If a discrepancy exists between the conditions and limitations in this exemption and the procedures outlined in the operating documents,

the conditions and limitations he rein take precedence and must be followed. Otherwise, the operator must follow the procedures as outlined in its operating documents. The operator may update or revise its operating documents. It is the operator’s responsibility to track such revisions and present updated and revised documents to the Administrator or any law enforcement official upon request. The operator must also present updated and revised documents if it petitions for extension or amendment to this grant of exemption. If the operat or determines that any update

### 4

or revision would affect the basis upon which the FAA granted this exemption, then the operator must petition for an amendment to its grant of exemption. The FA A’s UAS Integration Office (AFS− 80) may be contacted if questions arise regarding updates or revisions to the operating documents.

8. Any UAS that has undergone maintenance or alterations that affect the UAS operation or flight characteristics, e.g.

, replacement of a flight critical component, must undergo

a functional te st flight prior to conducting further operations under this exemption. Functional test flights may only be conducted by a PIC with a VO and must remain at

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

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

9. The operator is responsible for maintaining and inspecting the UAS to ensure that it is in a condition for safe operation.

10. Prior to each flight, the PIC must conduct a pre

- flight inspection and determine the UAS is in a condition for safe flight. The pre

- flight inspection must account for all potential discrepancies, e.g.

, inoperable components, items, or equipment. If the inspection reveals a condition that affects the safe operation of the UA S, the aircraft is prohibited from operating until the necessary maintenance has been performed and the UAS is found to be in a condition for safe flight.

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

aircraft components.

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

13. Under this grant of exemption, a PIC must hold either an airline transport, commercial, private, recreational, or sport pilot certificate. The PIC must also hold a current FAA airman medical certificate or a valid U.S. driver’s license issued by a
state, the District of Col u mbia, Puerto Rico, a territory, a possession, or the Federal

G overnment. The PIC must also meet the flight revi ew requirements specified in

14 CFR § 61.56 in an aircraft in which the PIC is rated on his or her pilot certificate.

14. The operator may not permit any PIC to operate unless the PIC demonstrates the ability to safely opera te the UAS in a manner consistent with how the UAS will be operated under this exemption, including evasive and emergency maneuvers and maintaining appropriate distances from persons, vessels, vehicles and structures. PIC qualification flight hours and cu rrency must be logged in a manner consistent with

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

- building) and determining the PIC’s ability to safely operate the UAS in a manner consistent with how the UAS will be operated

### 5

under this exemption are permitted under the terms of this exemption. However, training operations may only be conducted during dedicated training sessions. During

traini ng, proficiency, and experience

- buildin g flights, all persons not essential for flight operations are considered nonparticipants, and the PIC must operate the UA with appropriate distance from nonparticipants in accordance with 14 CFR § 91.119.

15. UAS operations may not be conducted during night, as defined in 14 CFR § 1.1. All operations must be conducted under visual meteorological conditions (VMC). Flights under special visual flight rules (SVFR) are not authorized.

16. The UA may not operate within 5 nautical miles of an airport reference point (ARP) as denoted in the current FAA Airport/Facility Directory (AFD) or for airports not denoted with an ARP, the center of the airport symbo l as denoted on the current

FAA

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

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

holder. The letter of agreement with the airport management must be made available to the Administrator or any law enforcement official upon request.

17. The UA may not be operated l ess than 500 feet below or less than 2,000 feet horizontally from a cloud or when visibility is less than 3 statute miles from the PIC.

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

pre

- determined location within the pr i vate or controlled

- access property.

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

20. The PIC is prohibited from beginning a flight unless (considering wind and forecast weather conditions) there is enough available power for the UA to conduct the intended operation and to operate after that for at least 5 minutes or with the reserve

power recommended by the manufacturer if greater.

21. Air Traffic Organization (ATO) Certificate of Waiver or Authorization (COA). All operations shall be cond ucted in accordance with an ATO

- issued COA. The exemption holder may apply for a new or amended COA if i t intends to conduct operations that cannot be conducted under the terms of the attached COA

.

22. All aircraft operated in accordance with this exemption must be identified by serial number, registered in accordance with 14 CFR part 47, and have identification (N− Number) markings in accordance with 14 CFR part 45, Subpart C. Markings must be as large as practicable.

23. Documents used by the operator to ensure the safe operation and flight of the UAS and any documents required under 14 CFR §§ 91.9 a nd 91.203 must be available to the PIC at the Ground Control Station of the UAS any time the aircraft is operating.

### 6

These documents must be made available to the Administrator or any law enforcement official upon request.

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

activities at all times.

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

26. All Flight operations must be conducted at least 500 feet from all nonparticipating persons, vessels, vehicle s, and structures unless:

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

from the UA and/or debris in the event of an accident. The operator must ensure that nonparticipating persons remain under such protection. If a situation arises where nonparticipating persons leave such protection and are within 500 feet of the UA, flight operations must cease immediately in a manner ensuring the safety of nonparticipating persons ; and

b. The owner/controller of any vessels, vehic les or structures has granted permission for operating closer to those objects and the PIC has made a safety assessment of the risk of operating closer to those objects and determined that it does not present an undue hazard.

The PIC, VO, operator trainees or essential persons are not considered nonparticipating persons under this exemption.

27. All operations shall be conducted over private or control led

- access property with permission from the property owner/controller or authorized representative. Permission from property owner/controller or authorized representative will be obtained for each flight to be conducted.

28. Any incident, accident, or flight operation that transgresses the lateral or vertical boundaries of the operational area as defined by the applicable COA must be reported

to the FA A's UAS Integration Office (AFS− 80) within 24 hours. Accidents must be reported to the National Transportation Safety Board (NTSB) per instructions

contained on the NTSB Web site: www.ntsb.gov

.

If this exemption permits operations for the purpose of closed

- set motion picture and television filming and production, the following additional conditions and limitations apply.

29. The operator must have a motion picture and television operations manual (MPTOM) as documented in this grant of exemption.

30. At least 3 days before aerial filming, the operator of the UAS affected by this exemption must submit a written Plan of Activities to the local Flight Standards

District Office (FSDO) with jurisdiction over the a rea of proposed filming. The 3

- day

### 7

notification may be waived with the concurrence of the FSDO. The plan of activities must include at least the following:

a. Dates and times for all flights;

b. Name and phone number of the operator for the UAS aerial filming conducted under this grant of exemption;

c. Name and phone number of th e person responsible for the on

- scene operation of
the UAS;

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

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

f. A statement that the operator has obtained permission from property owners and/or local officials to conduct the filming production event; the list of those who gave permission must be made available to the inspector upon request;

g. Signature of exemption holder or representative; and

h. A description of the flight activity, including maps or diagrams of any area, city, town, county, and/or state over which filming will be conducted and the altitudes essential to accomplish the operation.

31. Flight operations may be conducted closer than 500 feet from participating persons consenting to be involved and necessary for the filming production, as specified in the exemption holder’s MPTOM.

Unless otherwise specified in this grant of e xemption, the UAS, the UAS PIC, and the UAS operations must comply with all applicable parts of 14 CFR including, but not limited to,

parts 45, 47, 61, and 91.

This exemption terminates on May 31, 2017 , unless sooner superseded or rescinded.

Sincerely,

/s/

John S. Duncan Director, Flight Standards Service

### Capstone Aviation Corporation

790 Royal Saint George Dr. Ste 141#128 Naperville, Illinois 60563 Paul Capistrant, MBA (775) 450

- 6366

1 March 4 , 2015

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

Subject Matter: Exemption Request; Section 333 of the FAA Modernization & Reform Act and Part 11 of the Federal Aviation Regulation s from ;14 CFR 61.113 (a) 

### & (b); 91.7 (a);

; 91.119 (c) ; 91.121; 91.151 (a) (1) ; 91.405 (a); 91.407(a) (1 ); 91.409 (a) (2); 91.417 (a) 

### & (b).

To whom it may concern :

In accordance with Section 333 of the Federal Aviation Administration (FAA)

Modernizati on and Reform Act of 2012, Capstone Aviation Corporation respectfully petitions the Secretary of Transportation and the Federal Aviation Administration for an exemption of

the above mentioned Federal Aviation Regulations, for the purpose of business operat ions

of small

- unmanned aerial systems (UAS). Furthermore, the details of this petition will

describe in a more detail the manner in which Capstone Aviation Corporation is seeking the exemption request

.

A

. Summary of the Petition

Capstone Aviation Corpor ation formally requests exemption from the following Federal Aviation Regulations (FARs) that are found under Title 14 of the Code of Federal Regulations (CFR): 14 CFR 61.113 (a) 

### & (b); 91.7 (a); 91.119 (c); 91.121; 91.151 (a)(1); 91.405 (a); 91.407(a) (1 ); 91.409 (a) (2); 91.417 (a) 

### & (b). Capstone Aviation seeks approval and exemption from the above listed CFRs to operate the DJI Phantom 2 Vision+ for the purpose of providing high resolution aerial imagery for compensation /hire to companies and individua ls. The operation of the DJI Phantom 2 Vision+ by Capstone Aviation Corporation will abide by all manufacturer approved operation limitations, Advisory

Circular 91

- 57, other limitations stated in this document, and all recommendations by the

FAA and other government agencies

.

B . Petition for Exemption

In accordance with Section 3 33 of the FAA Modernization and Reform Act of 2012

and 14 C FR Part 11, Capstone Avi ation Corporation, operator o f small unmanned aerial
systems

, conduc t ing aerial photography/ aer ial i nspection for business purposes over the following areas; (1) over land, waterways, and oceans; (2) operation over and/or in
nonrestricted National Parks, National Forests, and non

- navigable airspace using nonintrusive recording devices; and (3) opera tion in otherwise unrestricted U.S. States and Territories. All proposed operations would be conducted under controlled conditions in airspace that is: (1) limited, (2) predetermined, and (3) access controlled. Capstone

### Capstone Aviation Corporation

790 Royal Saint George Dr. Ste 141#128 Naperville, Illinois 60563 Paul Capistrant, MBA (775) 450

- 6366

2 Aviation using commercial grade pho tography/ remote sensing imaging devices

, is formally requesting for exemption to the above mentioned Federal Aviation Regulatio ns for

commercial operation of its unmanned aerial system in accordance with limitations

de scribed within this document or as es tablished by the Federal Aviation Administration required by Section 333.

Capstone Aviation Corporation is requesting exemption t hat would allow the operati on of their UAS for aerial photography and inspection limited, predetermined and

access controlled airspace. The use of aerial photography by small unmanned aerial systems/vehicles will improve aviation safety by reducing the hazard of low flying manned

aerial photography in traditional small aircraft as well as increase the capacity of National Airspac e System by allowing aerial photography to be conducted without utilization of limited airport/airspace resources.

If the exemption is approved, Capstone Aviation Corporation would enhance safety and meet the requirement of the Secretary of Transportat ions responsibilities described in Section 333(c) of the FAA Modernization and Reform Act of 2012.

C . Name and Address of the Petitioner

Capstone Aviation Corporation Attn: Paul Capistrant

Ph: 775

- 450

- 6366 Email: pcapistrant@capstoneaviation.com

Address: 790 Royal Saint George Dr. Ste 141#128 Naperville, Illinois 60563

D. Pet itioner Petitions for Exemption of the Following Regulations

 14 CFR 91.405 (a)

 14 C.F. R. 91.119 (c)

 14 CFR 407 (a) (1)

 14 CFR 61.113 (a) 

### & (b)

 14 C.F.R. 91.121

 14 CFR 409 (a ) (2)

 14 C.F.R. 91.7 (a)

 14 CFR 91.151 (a)

 14 CFR 417 (a) 

### & (b)

Capstone Aviation Corporation operates unmanned aerial systems that are multi

rotorcraft eq uipped with p recision flight and stable hovering, r adar positioning, return home,

o nscreen re al

- time flight parameters , on

- board NAZA computer stabilization controller and

GP S, the UAS will weigh less than 55 lbs or less and mo st typically include camera/payl oad. Normal UAS operations are conducted at speeds well below 100 KIAS utilizing the funct ions of rotorcraft; it has the ability to hov er. Capstone Aviation Corporation

will only operate in line of sight and wil l operate in airspace described in this document or as

### Capstone Aviation Corporation

790 Royal Saint George Dr. Ste 141#128 Naperville, Illinois 60563 Paul Capistrant, MBA (775) 450

- 6366

3 specified by the FAA

. All UAS operations will be vetted by Capstone Aviation Cor poration operator/ qualified personnel to confirm that there are no hazards to users of the National Airspace System or innocent bystanders or general public.

E. How the request benefits the public as a whole

Capstone Aviation Corporation believes that t he safe, limited

, and controlled operations of its unmanned aerial systems (UAS ) described in this document will meet and

exceed the strict safety and security standard s of the FAA and/ or national security issues. Moreover, Capstone Aviation Corporation be lieves that the utilization of UAS described in

this document will benefit the public as a whole in five ways; 1) Capstone Aviation Corporation’s continued commitment to keep the highest level of safety durin g its UAS operations and set ind ustry standards fo r safe UAS operations for future operators ; 2) R educe the risk to life and property ; 3) R educing National Airspace System (NAS) congestion through utilization of small (less than 55lbs.) UAS instead of conventional aircraft during aerial photography / inspectio n operations

. 4) R educing noise and air pollution created by conventional fixed wing/rotor wing

aircraft , and 5) I ncrease aerial photography/ inspection industry economic growth.

Capstone Aviation Corporation’s u tilization of UAS (DJI Phantom 2 Vision +) for th e purposes of aerial photography/ inspection will be a leader in using and setting industry best practices for safe UAS operations in the NAS . Additionally, utilization of UAS will reduce the risk to life and property by limiting the use of conventional ai rcraft such as fixed

- wing and

rotor

- wing aircraft with weights in excess of 1000lbs and carrying hundreds of gallons of flammable fuels flying at low altitudes. The UAS described in this document is less than 55 lbs, carries a small battery as a power sour ce and can effectively do the same job as

conventional aircraft with reduced likelihood and severity of risk. Moreover, the utilization of UAS will reduce UAS congestion by reduced usage of conventional aircraft requiring access

to UAS

. An additional benef it will be reductions in noise and air pollution from conventional

aircraft by utilization of small UAS using batteries as the main source of power instead of fossil fuels used by conventional aircraft . Finally, the utilization of UAS for aerial photograph y/ inspection will allow for positive economic growth in the aerial photography/inspection industry, as well as peripheral industries that rely on aerial photography/ inspection, i.e., building construction, real estate, and inspection services.

F. Limitations and Conditions

Capstone Aviation Corporation will describe in this document the proposed limitations and conditions of its UAS operations. These operations and condition s are intended t o provide safe operations up and beyond current regu latory framework that apply to similar operations. Moreover, the limitations and conditions described below, Capstone

### Capstone Aviation Corporation

790 Royal Saint George Dr. Ste 141#128 Naperville, Illinois 60563 Paul Capistrant, MBA (775) 450

- 6366

4 Aviation Corporation will accept to be held accountable when conducting

business/commercial UAS operations from the FAA issued exemption:

1. The UAS maximum take

- off weight (MTOW) will be less than 55 lbs

. Capstone Aviation Corporation will be operating:

I. DJI Phantom DJI Ph antom 2 Vision + v3.0

II. Other DJI manufactured UAS

2. The pilot in command (PIC) of the UAS will possess at least a private pi lot

certificate and at least a current third

- class medical. The PIC will also meet the flight review requirements specified in 14 CFR 61.56 in an aircraft in which the PIC is rated on their pilot certificate.

3. Operator PIC qualifications criteria and demon strated ability to operate UAS

I. Completed initial and or recurrent training prior to UAS operations . Follow training guidance in accordance with manufacturer.

II. All training will be documented and recorded

III. PIC will d emonstrate evasive and emergency maneuvers

IV. Maintaining appropriate distances from persons, vessels, vehicles, and

structures as per FAA regulations

V. PIC qualification flight hours will be logged in a manner consistent with 14

CFR 61.51.

4. The Visual Observer (VO) qualifications and demonstrated abil ity

I. Completed initial training prior to UAS operations

II. All training will be documented and recorded

5. Training operations for PIC and VO (training, proficiency, and experience building) will only be conducted during dedicated training sessions. During

train ing, proficiency, and experience building flights, all persons not essential for flight operations will be considered nonparticipants, and the PIC will operate the UAS with appropriate distance from nonparticipants in accordance with 14 CFR

91.119.

6. All UA S operations will remain below 400 feet above ground level. UAS operations will utilize no less than two qualified people. The first person will be operator of the UAS flight controls “pilot in command” (PIC). T he second person,

visual observer (VO) , will be used to assisting the PIC with seeing and avoiding other air traffic and other ground bas ed obstacles/obstructions and will not permitted to operate the UAS camera or other instruments.

7. The UAS will be operated within th e line of sight (LOS) of the PIC at all times

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

corrective lenses. The PIC will have a n FAA

- issued airman medial certificate. First person view (FPV) will not be used by the PIC or visual observer (VO)

. The

UAS will not be operated by the PIC from any moving device or vehicle.

### Capstone Aviation Corporation

790 Royal Saint George Dr. Ste 141#128 Naperville, Illinois 60563 Paul Capistrant, MBA (775) 450

- 6366

5 8. UAS o perations will not be permitted unless there is enough power to fly to the

UAS to the intended landing point a t a normal cruise speed and land the UAS with 30% battery power remaining

.

9. T he PIC will be designated before flight and will not transfer controls for the duration of flight. The PIC will ensure that the VO can perform all of their

essential functions. All operation s will utilize a VO

. The VO will not perform any other duties beyo nd 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. The UAS will remain clear and yield the right of way to all manned aviation opera tions at all times

10. Pre

- flight operations will include the use of the Openpilot Preflight Checklist. Additionally, prior to each flight the PIC will conduct and preflight inspection of

the UAS and Ground Control Station to ensure it’s in a condition for sa fe flight. All discrepancies found during the preflight inspection will prohibit flight operations until the necessary maintenance has been performed and the UAS is found to be in a condition for safe flight. All discrepancies, maintenance, alterations wil l be properly documented in the aircraft records.

11. If the UAS has undergone maintenance or alterations that affect the UAS operation or flight characteristics there will be a functional flight test by the PIC and the PIC will make and entry in the aircraft records. All maintenance will follow the UAS manufacturer’s aircraft/component, maintenance, overhaul, replacement, inspection, and life limited requirements.

12. Each UAS will comply with all manufacturers Safety Bulletins

.

13. The operator will carry out its maintenance, inspections, and record keeping requirements, in accordance with the manufacturers operating documents. All Maintenance, inspection, alterations, and status of replacement/overhaul component parts must be noted in the aircraft records, includ ing total time in service, description of work accomplished, and the signature of the authorized person returning the UAS to service.

14. Authorized persons will make entry in the aircraft record of corrective action taken against discrepancies discovered bet ween inspections.

15. T he UAS will 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

conduct ed in accordance with a NOTAM as required by the operator’s Certificate of Waiver. All UAS operations will not be operated less than 500 feet below or less than 2000 feet horizontally from a cloud or when visibility is less than 3

statute miles from the PI C

. Controlled airspace will be utilized with prior permission from Air Traffic Control or the Federal Aviation Administration. At all

### Capstone Aviation Corporation

790 Royal Saint George Dr. Ste 141#128 Naperville, Illinois 60563 Paul Capistrant, MBA (775) 450

- 6366

6

times, in all situations, without exception, the PIC will maintain visual line of sight

with the UAS

.

16. The UAS will not be operated over congested or densely populated areas.

17. The UAS will remain clear and yield the right of way to all manned aviation operations at all times. The UAS will not be flow n at an indicated airspeed exceeding 30 knots.

18. All operating documents will be accessible during UAS operations. Capstone Aviation Corporation may update or revise operating documents, however; it will track revisions and present updated revised documents the administrator upon
request.

19. All documents required under 14 CFR 91.9 an d 91.203 will be available to the PIC at the Ground Control Station of the UAS any time the UAS is operating. These documents will be made available to the Administrator or any law enforcement official upon request.

20. Prior to all UAS flight operations, the pilot in command will conduct a visual inspection of the property and attempt to inform all persons on the property of the UAS op erations. Flight operation will be conducted at least 500 feet from all nonparticipating persons (persons other than the PIC, VO, operator trainees or essential persons), vessels, vehicles and structures unless:

I. Barriers or structures are present that sufficiently protect nonparticipating persons from the UA and/or debris in the event o f an accident. The operator will ensure tha t nonparticipating persons remain under such protection. If a situation arises where nonparticipating persons leave such protection and are within 500 feet of the UA, flight operation s will cease immediately and/or;

II. The aircraft is operated near vessels, v ehicles or structures where the owner/controller of such vessels, vehicles or structures has granted permission and the PIC has made a safety assessment of the risk of operating closer to those objects and determined that it does not present

an undue hazar d, and;

III. Operations nearer to the PIC, VO, operator trainees or essential persons do not present an undue hazard to those persons per § 91.119(a).

21. The PIC of the UAS and VO involved with each UAS flight operation will have received initial training, and r ecurrent training on a periodic basis to keep up

- to

date on, applicable government regulations, airspace regulations, manufacturer updates, and other information regarding UAS operations in the NAS

.

### Capstone Aviation Corporation

790 Royal Saint George Dr. Ste 141#128 Naperville, Illinois 60563 Paul Capistrant, MBA (775) 450

- 6366

7 22. The PIC and VO will be able to verbally communicate at a ll times

. Electronic messaging or texting will not be permitted during flight operations.

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

determined location with the planned operating area and land or be recovered in

acco rdance with the operating documents.

24. The PIC will abort the flight in the event of unpredicted obstacles or emergencies

25. The visual observer will carry and utilize fire extinguishing equipment in case of

an emergency.

26. UAS operations will not be conducted during night, as defined in 1 4 CFR § 1.1. All operations will be conducted under visual meteorological conditions (VMC). Flights under special visual flight rules (SVFR) are not authorized.

27. UAS operations will be identified by serial number, registered in accordance with 14 CFR part 47, and identification (N

- Number) marking in accordance with 14 CFR part 45, Subpart C. The markings will be a large as practical.

28. UAS operations, if required by controlled airspace, will request a Notice to Airman (NOTAM) n o more than 72 hours in advance, but not less than 48 hours prior to the operation.

29. All UAS operations will comply with Federal Communications Commission or other appropriate government oversight agency requirements

30. 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 each flight to be conducted.

31. Any incident, acciden t, or flight operation that transgresses the lateral or vertical boundaries of the operational area as de fined by the applicable COA will be reported to the FAA's UAS Integration Office (AFS

- 80) within 24 hours. Accidents

will be reported to the National T ransportation Safety Board (NTSB) per instructions contained on the NTSB Web site: www.ntsb.gov.

32. Unless otherwise specified the UAS, the UAS PIC, and the UAS operations will comply with all applicable parts of 14 CFR including, but not limited to, parts 45, 47, 61, and 91

.

### Capstone Aviation Corporation

790 Royal Saint George Dr. Ste 141#128 Naperville, Illinois 60563 Paul Capistrant, MBA (775) 450

- 6366

8 G

. S p e c i f i c S e c t i o n s o f 1 4 C F R f r o m w h i c h C a p s t o n e A v i a t i o n C o r p o r a t i o n S e e k s
E x e m p t i o n

14 C.F.R. § 61.113 (a) 

### & (b): Private Pilot Privileges and Limitations: Operator.

The proposed UAS operations by Capstone Aviation Corporation (CAC) would employ a

Pi lot in Command that holds a least a Private Pilot certificate and current third

- class medical

certificate

. All UAS PICs will go through a CAC ground school and flight lessons in accordance with manufactures and industry guidance prior to operations. All CAC PIC’s will only operate the

UAS as stated in this document a n d / o r a s r e c o m m e n d e d b y t h e F A A . All CAC UAS operation s will be controlled and limited, all flight s will be coordinated ahead of time. CAC feels that the level of safety will be equivalent or in excess that of a commercial pilot opera tions . CAC’s objective is to safety operate UAS in a contr olled manner at a r e d u c e d risk level that would not require a commercial pilot certificate.

14 C.F.R. §91.7(a): Civil aircraft airworthiness.

Capstone Aviation Corporation would like to request and exemption to operate their UAS

without an airworthiness certif icate. Instead, CAC will verify the airworthiness of the UAS prior to each flight to ensure that the UAS is airworthy prior to each and every flight. All record keeping

of maintenance actions will be documented in the same man ner as a conventional aircraf t. In order to meet or exceed level of safety as described in 14 C.F.R. §91.7( a

, Capstone Aviation Corporation operations will include:

Pre

- flight operations: prior to each flight the PIC will conduct and preflight inspection of

the UAS and Ground Contro l Station to ensure it’s in a condition for safe flight. All discrepancies found during the preflight inspection will prohibit flight operations until the necessary maintenance has been performed and the UAS is found to be in a condition for safe flight. A ll discrepancies, maintenance, alterations will be properly documented in the aircraft records. If the UAS has undergone maintenance or alterations that affect the UAS operation or flight characteristics there will be a functional flight test by the PIC a nd the PIC will make and entry in the aircraft records. All maintenance will follow the UAS manufacturer’s aircraft/component, maintenance, overhaul, replacement, inspection, and life limited requirements.

Each UAS will comply with all manufacturers Safe ty Bulletins.

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

Authorized persons will make entry in the aircraft record of corrective act ion taken against discrepancies discovered between inspections.

### Capstone Aviation Corporation

790 Royal Saint George Dr. Ste 141#128 Naperville, Illinois 60563 Paul Capistrant, MBA (775) 450

- 6366

9 14 C.F.R. §91.119 (c) : Minimum safe altitudes

CAC would like to request an exemption to 91.119 paragraph (c) Over other than congested areas. An altitude of 500 feet above the surface, exce pt over open water or sparsely populated areas. In those cases, the aircraft may not be operated closer than 500 feet to any person, vessel, vehicle, or structure

.

All flights will be conducted with within visual line of sight and with prior permission

f rom the owner of the property or local municipality. Additionally, all persons, vessels, vehicles, not directly involved with the operation will be notified and cleared of the area where the proposed UAS operations will be conducted. The advance notice and access restricted area will maintain an equivalent level of safety of that described in 14 C.F.R. §91.119 (c) : Minimum safe altitudes

.

14 C.F.R. §91.121 Altimeter Settings

CAC is requesting an exemption from 14 CFR 91.121 requiring each person operati ng an aircraft shall maintain the cruising altitude by reference to an altimeter that is se when operating below 18,000 feet mean sea level to the elevation of the departure airport or an appropriate altimeter setting available before departure.

To meet the equivalent level of safety, the UAS operated by CAC has GPS altitude readout instead of a barometric altimeter. The CAC qualified PIC will maintain the equivalent level of safety by confirming the altitude of the launch site shown on the GPS

altitude indicator prior to e a c h flight. The operating documents will require confirmation of the launching site altitude on the UAS GPS altitude indicator before each flight.

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

Capstone Aviation Co rporation believes that an equivalent level of safety can be achieved by following the UAS manufacturer’s operating documents with regard to battery voltage. In order to achieve or exceed the level of safety, the CAC PIC will not begin a flight unless (con sidering wind and forecast weather conditions) there is enough power to fly to the intended landing point at normal cruising speed and land the UAS with no less than

3 0% of battery power

.

14 C.F.R. §91.405 (a); 407 (a) (1); 409 (a ) (2); 417(a) & (b): Maintenance Inspections

Capstone Aviation Corporation UAS operations will keep an equivalent level of safety as described below. CAC will perform preventative and required maintenance on its UAS as required by the manufacturer and/or FAA safety/service bulletins. If a mechanical event occurs the UAS will land immediately. The operator will make sure that the UAS is in an airworthy condition prior to each flight operation. The operator will perform maintenance

on its UAS and will maint ain thorough record keeping of any maintenance performed.

### Capstone Aviation Corporation

790 Royal Saint George Dr. Ste 141#128 Naperville, Illinois 60563 Paul Capistrant, MBA (775) 450

- 6366

10 In order to meet or exceed level of safety as described in 14 C.F.R. § 91.405 (a); 407 (a) (1); 409 (a ) (2); 417(a) & (b): Capstone Aviation Corporation operations will include:

Pre

- flight operations: prior to each flight the PIC will condu ct and preflight inspection of the UAS and Ground Control Station to ensure it’s in a condition for safe flight. All discrepancies found during the preflight inspection will prohibit flight operations until the necessary maintenance has been performed and the UAS is found to be in a condition for safe flight. All discrepancies, maintenance, alterations will be properly documented in the

aircraft records. If the UAS has undergone maintenance or alterations that affect the UAS operation or flight characteris tics there will be a functional flight test by the PIC and the PIC will make and entry in the aircraft records. All maintenance will follow the UAS manufacturer’s aircraft/component, maintenance, overhaul, replacement, inspection, and life limited requirem ents.

Each UAS will comply with all manufacturers Safety Bulletins.

The operator will carry out its maintenance, inspections, and record keeping requirements, in accordance with the manufacturers operating documents. All Maintenance, inspection,

alterat ions, and status of replacement/overhaul component parts must be noted in the aircraft records, including total time in service, description of work accomplished, and the signature of the authorized person returning the UAS to service. Authorized persons will make entry in the aircraft record of corrective action taken against discrepancies discovered between inspections.

H . Publication Summary

The following summary is provided for publication in the Federal Register.

Pursuant with Section 333 of the F AA Modernization and Reform Act of 2012, Capstone Aviation Corporation requests an exemption from the following rules: 14 CFR 61.113 (a) 

### & (b); 91.7 (a); 91.119 (c); 91.121; 91.151 (a)(1); 91.405 (a); 91.407(a) (1 ); 91.409 (a) (2); 91.417 (a) 

### & (b). Exempt ion from these regulations will allow Capstone

Aviation to operate commercially a UAS, DJI Ph antom 2 Vision + v3.0 (55lbs or less)

, for Aerial Photography

/ Inspection Operations.

If approval o f t h e e x e m p t i o n is granted, Capstone Aviation Corporation would

conduct com mercial operations of the approved UAS for aerial photography/insp ection for business operations o ver land, water

- ways, and oceans; operation over/in non restricted National Parks, National Forests, flight in non

- navigable airspace, using non

- intrusive

re cording devices, operation in otherwise unrestricted US States/Territories. The use of UAS of less than 55 lbs with power source is a safer and more

economical mechanism than utilization of conventional aircraft. Capstone Aviation Corporation’s proposed c o m m e r c i a l op erations of UAS would be conducted under

controlled con ditions in airspace that is: limited, predetermined, and access controlled.