### December5, 2015

U.S. DepartmentofTransportation, DocketOperations West Building Ground Floor, Room W12-140 1200 NewJerseyAvenue, SE Washington, DC 20590

RE: SGD, Inc.- Exemption Request Section 333 ofthe FAA Reform Act and Part 11 of the Federal Aviation Regulations from 14 C.F.R. Part 21; 14 C.F.R. 45.23(b); 14 C.F.R. 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); 61.3(a); 61.23(a).

Dear Siror Madam: In accordance with Section 333 ofthe FAA Modernization and Reform Act of2012 and 14 C.F.R. Part 11, 

### SGD, Inc. (aka: Schifrin, Gagnon & 

### Dickey, Inc.), a California Corporation licensed by the California Department of Insurance as an independent insurance adjustingfirm, herebyappliesforan exemptionfrom the listed FederalAviation Regulations (FARs) to allow commercial operation ofSmall Unmanned Aircraft Systems (UAS's) for purposes ofsite inspections and aerial photography. This exemption cites similaritywith reliefpreviously requested in Grant ofExemption Nos. 11445, 11062, 11109, 11112, 11213, 11138 and 13802.

LosAngeles Corporate HomeOffice 9171 GazetteAvenue • Chatsworth, California 91311-5918

# e· . (800) 743-2524 • FAX (866) 749-7932 • www.sgdinc.com CD/License# 2607896 I PI License# PI9013

-···-**~-~--** . -·.**~--** ·--- ·--·----**~----·--~** .- - -·....**~~~-·,..** . Offices Locatedin California & Colorado

### Since 1975, SGD, Inc. has been providing claims adjusting, investigations and administration services to the insurance industry. SGD, Inc. is also involved with training ofstaff and independent adjusters in the Fair Claims Settlement Practices Regulations, the SIU Regulations, and Seminarforthe Evaluation of Earthquake Damage (SEED). SGD, Inc. personnel have also worked with the California Department of Insurance in updating and writing of the state adjuster's license test as part of the Department of Insurance Curriculum board. SGD, Inc. feels this is a perfect opportunity to not only use the UAS in the performance of our duties as Property and Casualty adjusters, but also for training for the insurance industry in the proper use and application of UAS's and developing a policyfor othersto follow in our industry.

2TABLE OF CONTENTS 

### Page A. GLOSSARY OF ABBREVIATIONS

.............................................................................

### .4 B. SUMMARY

...................................................................................................................5 C. INTRODUCTIONAND INTERESTS OF PETITIONER

................................................5 D. BACKGROUND

............................................................................................................6 E. BASIS FOR PETITION

.................................................................................................7 F. NAME ANDADDRESS OF PETITIONER

....................................................................9 G. THE SPECIFIC SECTIONS OF 14 C.F.R. FROMWHICH SGD, INC. SEEKS EXEMPTION

................................................................................................................10 H. THE EXTENT OF RELIEF SGD, INC. SEEKSAND THE REASON SGD, INC. SEEKSTHE RELIEF

....................................................................................................14 I. THE REASONSWHYGRANTING THE SGD, INC. REQUESTWOULD BE IN THE PUBLIC INTEREST

..............................................................................................16 

### J. THE REASONSWHYGRANTING THE EXEMPTION TO SGD, INC. WOULD NOTADVERSELYAFFECT SAFETY

.........................................................................18 K. SUMMARYTHAT CAN BE PUBLISHED IN THE FEDERAL REGISTER

....................25 L. CONCLUSION

.............................................................................................................25

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### A. GLOSSARY OF ABBREVIATIONS 

### AGL Above Ground Level AOI Area of Interest ATC Air Traffic Control ATO AirTraffic Organization AV Aerial Vehicle CFR Code of Federal Regulations COA Certificate ofAuthorization FAA Federal Aviation Administration FAR Federal Aviation Regulation GCS Ground Control Station GPS Global Positioning System LOL Loss of Link NAS National Airspace System NOTAM Notice to Airman PIC Pilot In Command Section 333 FAA Modernization and Reform Act of2012 (FMRA) SO Safety Observer SOP UA UAS VFR VLOS VMC VTOL Standard Operating Procedures Unmanned Aircraft Unmanned Aircraft System Visual Flight Rules Visual Line ofSite Visual Meteorological Conditions Vertical Takeoffand Landing

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### B. SUMMARY 

### Douglas Jackson, VP/Director of Operations on behalfofSGD, INC. seeks exemption from the requirements of 14 C.F.R §§ 

### 61.113(a) 

### & (b), 91.7(a), 91.121, 91.151(b), 91.405(a), 91.407(a)(1), 91.409(a)(1) & 

### (a)(2), and 91.417(a) & 

### (b), to operate an Unmanned Aircraft System (DJI Phantom 3 Professional) pursuant to Section 333 ofthe FAA Modernization and Reform Act of 2012 (FMRA). This exemption will permit SGD, INC. to operate an Unmanned Aircraft System (UAS) for the commercial purpose of conducting aerial video and photography of property losses at insured and other properties (with permission of owner), accident scenes, and other residential and commercial sites in the course of our claims inspections and ortraining.

C. INTRODUCTION AND INTERESTS OF THE PETITIONER 

### SGD, INC. hasforoverfortyyears providedtheirclients (which includedomesticandforeign insurance companies, various Lloyds, London syndicates, MGA's and otheradjusting firms) provided adjusting, investigations, and Third Party Administrator (TPA)/Ciaims Administrator services. SGD, Inc. personnel are often in unsafe locations in the performance ofour duties including fire loss scenes, building collapses, roof inspections of steep or compromised/unsafe roofs, and major accident scene investigations. Utilizing a UAS (drone) would assist us in performing ourjobs more efficiently and safely.

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## D. BACKGROUND Unmanned Aircraft Systems: DJI Phantom 3 Professional UAS SGD, INC. seeks an exemption to operate OJI Phantom 3 Professional system· for compensation or hire within the NAS. The DJI Phantom 3 Professional UAS is a vertical takeoff and landing (VTOL) Unmanned Aircraft (UA) with a Ground Control Station (GCS) utilizing electronic tablet or smart phone systems. The DJI Phantom 3 Professional has a maximum grossweight ofapproximately2.8 lb. while having a diagonal dimension of23.2", a maximum speed ofapproximately 16.4'fps and a maximum software flying height of less than 400'. The DJI Phantom 3 Professional is equipped with four main rotors; driven by Lithium Polymer battery powered electric motors. The OJI Phantom 3 Professional UAS thatwill be operated by SGD, INC. will be registered in accordance with 49 U.S.C. 44103, Registration ofAircraft, 

### as well as 14 C.F.R Part 47, AircraftRegistration, 

### and marked in accordance with 14 C.F.R. Part 45, Identification and Registration Marking.

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### E. BASIS FOR PETITION 

### Petitioner, SGD, INC., pursuant to the provisions of the Federal Aviation Regulations (14 C.F.R. 

### § 11.61) and the FAA Modernization and Reform Act of2012 (FMRA), Section 333, SpecialRules forCertain UnmannedAircraftSystems, 

### hereby petitionstheAdministratorto commercially operatethe OJI Phantom 3 Professional UAS inthe NationalAirspace System (NAS), and foran exemptionfrom the requirements of 14 C.F.R 

### §§61.113(a) 

### &(b), 91.7(a), 91.121, 91.151(b), 91.405(a), 91.407(a){1), 91.409(a){1) & (a)(2), and 91.417(a) & (b). In consideration ofthe speed, weight, size, and limited operating area associated with the unmanned aircraft and its operation, SGD, INC. operation of DJI Phantom 3 Professional UAS meets the conditions of FMRA Section 333 and therefore, will not require an airworthiness certificate in accordancewith 14 C.F.R. Part 21, Subpart H. Accordingly, SGD, INC. requests relieffrom Sections 91.405(a), 91.407(a)(1), 91.409(a)(1) & 

### (a)(2), and 91.417(a) & 

### (b), as these sections setforth requirements for maintenancethat only applyto aircraftwith an airworthiness certificate. SGD, INC. submitsthatthe requested relief is propersince an equivalent level ofsafetywill be ensured. SGD, INC. will use experienced personnel or technicians to perform maintenance, alterations, or preventive maintenance on the UAS using the methods, techniques, and practices prescribed in the operating documents (i.e., Monthly Maintenance Log, and DJI Phantom 3 Professional Instruction Manual). Furthermore, SGD, INC. will documentand maintain all maintenance recordsforthe OJI Phantom 3 Professional UAS. Relieffrom Section 61.113(a) and (b), entitled Privatepilotprivileges andlimitations: Pilotin command, 

### is requested by SGD, INC. asthere is no pilotwithin a UAS norany potential for carrying any passenger. However, the PIC is able to safely operate the DJI Phantom Professional UA in a manner consistent with this exemption, including evasive and emergency maneuvers and maintaining appropriate distances from people, vessels, vehicles and structures. SGD, INC. seeks relief from Section 91.7(a), entitled Civil aircraft airworthiness, 

### because the DJI Phantom 3 Professional UAS does not require an airworthiness certificate in accordance with 14 C.F.R. Part 21, Subpart H. As such, SGD, INC. submits that they will ensurethatthe OJI Phantom 3 Professional UAS is in an airworthy condition, priorto every flight, by determining that the UAS are in compliance with the operating documents (i.e.,

7• ' •)I


### Monthly Maintenance Log, and OJI Phantom 3 Professional Instruction Manual), and thatthe aircraftare in a condition for safeflight. SGD, INC. also seeks an exemption from the requirements of Section 91.121, entitled Altimeter Settings, as the DJI Phantom 3 Professional UAS does not have a typical barometric altimeter onboard. However, altitude information of the DJI Phantom 3 Professional UAwill be providedtothe PIC via Global Positioning System (GPS) equipment and radio communications telemetry data link, which downlinks from the UAS to the GCS for active monitoring ofthe flight path. This altitude information, combined with SGD, INC. operation ofthe OJI Phantom 3 Professional UAS within visual line ofsight, ator below400 feetAGL, will ensure a level ofsafety equivalentto Section 91.121. Additionally, SGD, INC. seeks an exemption from the requirements of Section 91.151 (b), entitled Fuel requirements forflight in VFR conditions. SGD, INC. submits that safety will not be affected by operation ofthe OJI Phantom 3 Professional UAS during daylight hours in visual meteorological conditions (VMC) under visual flight rules (VFR), with enough battery powertoflyforatotal duration ofapproximately23 minutes. Battery powerindicators are also able to showexactly how much battery power is left, as well as how much time is needed to return safely backto pointoftake-off.

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F. Name And Address OfThe Petitioner. The name and address ofthe Petitionerand point ofcontact is: Douglas Jackson, RPA VP/DirectorofOperations SGD, Inc. 9171 Gazette Ave. Chatsworth, CA 91311 818-721-4725 (Direct Dial) djackson@sgdinc.com

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G. The Specific Sections of14C.F.R. From Which SGD, INC. Seeks Exemption.

1. The SGD, INC. Seeks Exemption From The Requirements OfSection 61.113(a) And (b). Section 61.113, entitled Private pilot privileges and limitations: Pilotin command, subsections (a) and (b) prescribe thefollowing, in relevant part: (a) No person who holds a private pilot certificate may act as a pilot in command (PIC) of an aircraft that is carrying passengers or property for compensation or hire; nor may that person, for compensation or hire, act as PIC ofan aircraft. (b) A private pilot may, for compensation or hire, actas PIC ofan aircraft in connection with any business oremployment if- (1) The flight is only incidental to that business oremployment; and (2) The aircraftdoes not carry passengers or propertyfor compensation or hire.
2. SGD, INC. Seeks Exemption From The Requirements Of Section 91.7(a). Section 91.7, entitled Civilaircraftairworthiness, subsection (a), statesthefollowing: (a) No person may operate a civil aircraft unless it is in an airworthy condition.
3. SGD, INC. Seeks Exemption From The Requirements Of Section 91.121. Section 91.121, entitled Altimeter settings, subsection {a), statesthefollowing, in part: (a) Each person operating an aircraftshall maintain the cruising altitude orflight level of that aircraft, as the case may be, by reference to an altimeter that is set, when operating- 

### (I) Below 18,000feet MSL, to-- 

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

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



### 10

### (iii) In the case of an aircraft not equipped with a radio, the elevation of the departure airportoran appropriate altimeter setting available beforedeparture.



### 4. SGD, INC. Seeks Exemption From The Requirements OfSection 91.151(b). Section 91.151, entitled Fuelrequirements forflightin VFR conditions, subsection (b), states thefollowing: (b) Noperson maybegin

### a flightin

### a rotorcraftunderVFR conditions unless (considering wind and forecast weather conditions) there is enough fuel to fly to the first point of intended landing and, assuming normal cruising speed, to fly afterthat foratleast20 minutes. 

### 5. SGD, INC. Seeks Exemption From The Requirement Of Section 91.405(a). Section 91.405, entitled Maintenance required, subsection (a), states the following: Each owneroroperatorofan aircraft5.1 Shall have that aircraft inspected as prescribed in subpart E of this part and shall between required inspections, except as provided in paragraph (c) of this section, have discrepancies repaired as prescribed in part43 ofthis chapter[.] 

### 6. SGD, INC. Seeks Exemption From The Requirements Of Section 91.407(a)(1) Section 91.407, entitled Operation aftermaintenance, preventive maintenance, rebuilding, oralteration, subsection (a) (1), states the following: 6.1 No person may operate any aircraft that has undergone maintenance, preventive maintenance, rebuilding, oralteration unless--

• It has been approved for return to service by a person authorized under 

### § 43.7 ofthis chapter[.] 

### 7. SGD, INC. Seeks Exemption From The Requirements Of Sections 91.409(a)(1) And 91.409(a)(2). Section 91.409, entitled Inspections, subsection (a), statesthefollowing: 

### 7.1 Except as provided in paragraph (c) of this section, no person may operate an aircraft unless, within the preceding 12 calendar months, it has had
--

11• An annual inspection in accordance with part 43 ofthis chapter and has been approved for return to service by a person authorized by§43.7 ofthis chapter; or

• An inspection for the issuance of an airworthiness certificate in accordance with part21 ofthis chapter.

8. SGD,INC. Seeks Exemption From The Requirements OfSections91.417(a)And 91.417(b). Section 91.417, entitled 

### Maintenance records, subsections (a) and (b), state the following: (a)Except for work performed in accordance with §§ 91.411 and 91.413, each registered owner oroperator shall keep the following records forthe periods specified in paragraph (b) ofthis section: (1) Records of the maintenance, preventive maintenance, and alteration and records of the 100-hour, annual, progressive, and other required or approved inspections, as appropriate, for each aircraft (including the airframe) and each engine, propeller, rotor, and appliance ofan aircraft. The records must include-- (i) A description (or reference to data acceptable to the Administrator) ofthe work performed; and (ii) The date ofcompletion ofthe work performed; and (iii) The signature, and certificate number of the person approving the aircraftfor return toservice. (2) Records containing the following information: i. The total time in service of the airframe, each engine, each propeller, and each rotor. ii. The current status of life-limited parts of each airframe, engine, propeller, rotor, and appliance. iii. The time since last overhaul of all items installed on the aircraft which are required to be overhauled on a specified time basis. iv. The current inspection status ofthe aircraft, including the time since the last inspection required by the inspection program under which the aircraft and its appliances are maintained.



### 12v. The current status of applicable airworthiness directives (AD) and safety directives including, for each, the method of compliance, the AD or safety directive number and revision date. If the AD or safety directive involves recurring action, the time and date when the next action is required. vi. Copies of the forms prescribed by 

### § 43.9(d) of this chapter for each major alteration tothe airframe and currently installed engines, rotors, propellers, and appliances. (b) The owner or operator shall retain the following records forthe periods prescribed:, (1) The records specified in paragraph (a)(1) ofthis section shall be retained until the work is repeated or superseded by otherwork orfor 1 year afterthe work is performed. (2) The records specified in paragraph (a)(2) ofthis section shall be retained and transferred with the aircraft at thetime the aircraft is sold. (3) A list ofdefects furnished to a registered owner or operator under 

### § 43.11 of this chapter shall be retained until the defects are repaired and the aircraft is approved for return to service.

13

### H. The ExtentOfReliefSGD, INC. Seeks And The Reason The SGD, INC. Seeks The Relief. (1) Extent Of Relief SGD, INC. Seeks And The Reason The SGD, INC.**S~eks** 

### Relief From Section 61.113(a) And (b). Relief from Section 61.113(a) and (b) entitled 

### Private pilot privileges and limitations: Pilot in command, is requested to the extent necessaryto allow a PIC holding a private pilot or higherlevel certificate, as well as a current and valid airman medical certificate, and who has met certain flighthour and currency requirements, to conduct the proposed UAS flight operations for compensation or hire. This relief is requested since the limitations setforth in Section 61.113(a) and (b) statethat a private pilot may, for compensation or hire, act as PIC of an aircraft in connection with any business or employment if: (1) The flight is only incidentalto that business or employment; and The aircraftdoes not carry passengers or property for compensation or hire. As setforth morefully below, SGD, INC. submitsthatan equivalent level ofsafetywill be maintained because no PICwill be allowed to operatethe OJI Phantom 3 Professional UAS unlessthat PIC has met certain flight-hour and currency requirements, demonstrating that the PIC is able to safely operate either the DJI Phantom 3 Professional UAS in a manner consistent with the operations specifications as described in this exemption, including evasive and emergency maneuvers, as well as maintaining appropriate distancesfrom people, vessels, vehicles and structures. Further, SGD, INC. submitsthat all flights ofthe DJI Phantom 3 Professional UAS, conducted bythe PIC pursuant to the grant ofthis Petition: (1) will be incidental to SGD, INC. business; and (2) will notand, could notdue to its size, carry passengers or propertyforcompensation or hire.



### 2. Extent Of Relief SGD, INC. Seeks And The Reason SGD, INC. Seeks Relief From Section 91.7(a). Relieffrom Section 91.?(a) entitled 

### Civilaircraftairworthiness, is requested to the extent requiredto allow SGD, INC. to determine that the OJI Phantom 3 Professional UAS are in airworthy condition prior to every flight by ensuring that the UAS is in compliance with the operating documents (i.e., SGD, INC. Aerial Operations Manual, Monthly Maintenance Log, and DJI Phantom 3 Professional Instruction Manual).



### 14SGD, INC. seeksthe requested relief becausethe DJI Phantom 3 Professional UAS do not require an airworthiness certificate in accordance with 14 C.F.R. Part 21, Subpart H. Therefore, SGD, INC. will ensure that the DJI Phantom 3 Professional UAS are in airworthy condition based upon its compliance with theoperating documents (i.e., Monthly Maintenance Log, and DJI Phantom 3) prior to everyflight, and further, determinethatthe aircraft are in condition for safe flight, as stated in the conditions and limitations below. 3. Extent Of Relief SGO, INC. Seeks And The Reason SGD, INC. Seeks Relief From Section 91.121. Relief from Section 91.121, entitled Altimeter settings, may be required to allow flight operations of the DJI Phantom 3 Professional UAS, which utilize a barometric pressure sensor, GPS equipment, and a radio communications telemetry data link to downlink altitude information from the UAto the PIC at the ground control station (GCS). Since the FAA requires that any altitude information concerning UAS operations be reported to airtraffic control (ATC} in feet above ground level (AGL), SGD, INC. seeks the requested relief becausethe DJI Phantom 3 Professional UA's altimeter may be set on the ground to zero feet AGL, rather than the local barometric pressure or field altitude, before each flight. Considering the limited altitude ofthe proposed operations, relieffrom 14 CFR 91.121 is soughtto the extent necessaryto comply with the applicable conditions and limitations stated below. As more fully set forth herein, an equivalent level of safety will be maintained since the DJI Phantom 3 Professional UAS are equipped with a barometric pressure sensor and GPS equipment, which automaticallyensuresthat aground level pressure settingwill be established priorto eachflight, and provides the PIC with altitude information ofthe UA on the heads-up display ofthe GCS. 4. Extent Of Relief SGO, INC. Seeks And The Reason SGD, INC. Seeks Relief From Section 91.151(b). Relieffrom Section 91.151(b) entitled Fuel requirementsforflight in VFR conditions, is requested to the extent required to allowflights ofthe battery powered DJI Phantom 3 Professional UAS during daylight hours in visual meteorological conditions (VMC}, under visual flight rules (VFR), for atotal duration of 23 minutes. SGD, INC. seeks the requested relief because without an exemption from Section 91.151(b), theflight time duration ofthe battery powered OJI Phantom 3 Professional UAS will severely constrain the practicality of any aerial video or still photo flight operations that SGD, INC. proposes to conduct pursuanttothis Petition. Significantly, as setforth below, thetechnical specifications ofthe DJI Phantom 3 Professional UAS, the DJI Phantom 3 Professional operating documents, and SGD, INC.'s proposed operating limitations, ensure that SGD, INC. will safely operate the battery powered DJI Phantom 3



### 15Professional UAS during daylighthours in visual meteorological conditions (VMC), undervisualflight rules (VFR), with enough battery powertofly for atotal duration of23 minutes.

5. Extent Of ReliefSGD, INC. SeeksAnd The Reason SGD, INC. Seeks Relief From Sections 91.405(a), 91.407(a)(1), 91.409(a)(1)

### &(a)(2), And 91.417(a)

### &(b). · Since Sections 91.405(a), 91.407(a)(1), 91.409(a)(1) & (a)(2), and 91.417(a) & (b) only apply to aircraft with an airworthiness certificate, SGD, INC. requests relieffrom these Sections becausethe DJI Phantom 3 Professional UAS do not require airworthiness certificates. As set forth more fully below, the DJI Phantom 3 Professional UAS meet the conditions of FMRA Section 333foroperationwithoutan airworthinesscertificate.Accordingly, SGD, INC. will usetrained technicians to perform maintenance, alterations, or preventive maintenance on the UAS using the methods, techniques, and practices prescribed in the UAS operating documents (i.e., theSGD, INC. Aerial Operations Manual, Monthly Maintenance Log, and DJI Phantom 3 Professional Instruction Manual). Furthermore, SGD, INC. will document and maintain all maintenance records forthe DJI Phantom 3 Professional UAS.

I. Reasonswhy grantingthe requestwould be in the public interest: 1. The PublicWill Benefit From Decreased Congestion OfThe NAS. The DJI Phantom 3 Professional UAS are battery powered and serve as a safe, efficient, and economical alternative to the manned aircraft traditionally utilized to obtain aerial imagery. By reducing theamountofmannedaircraft neededto perform aerial acquisitions, an exemption allowing the use ofa DJI Phantom 3 Professional UAS would reduce the amount of manned aircraft in the NAS, reduce noise and air pollution, aswell as increasethesafety of life and property in the airand on the ground. Furthermore, by reducing the number of manned aircraft operating in the NAS, congestion around airports caused by arriving and departing aircraft will be reduced. The DJI Phantom 3 Professional UAS do not require an airporttotakeoffor land. Likewise, a reduction ofmanned aircraft conducting aerial video and photography missions would result in fewer aircraft that must be handled by air traffic control during the ground, takeoff, departure, arrival, and landing phases offlight operations. 2.The PublicWill BenefitFromTheSafetyAnd EfficiencyOfThe DJI Phantom 3 Professional UAS.



### 16

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Conducting aerial acquisitionswith the DJI Phantom 3 Professional UAS, instead ofmannedaircraft, will greatly benefit the public by drastically reducing the levels ofair and noise pollution generated during traditional aerial video and still photography flight operations. By using battery power and electricmotors, the DJI Phantom 3 Professional UAS produce noair pollution, and isthe mostviable environmentally conscious alternative to the cabin class, six cylinder internal combustion engine aircraft that are typically utilized for aerial video and photography, while burning approximately 20- 30 gallons per hour of leaded aviation fuel. The DJI Phantom 3 Professional UAS, while reducing the carbon footprint ofaerial acquisitions, also eliminates noise pollution, as the UAS are propelled by battery powered electric motors, ratherthan an internal combustion engine. By using the DJI Phantom 3 Professional UAS to perform aerial acquisitions, the substantial risk to life and property in the air and on the ground, which is usually associated with traditional manned aircraftflight operations, will be substantially reduced orcompletely eliminated. Aside from the lack offlight crew members located onboard the aircraft, the DJI Phantom 3 Professional UAS (weighing approximately 2.8 pounds at their maximum gross weight with diagonal dimension of23.2 inches, and with no fuel on board), has less physical potential for collateral damage to life and property on the ground, and in the air, compared to the manned aircraftthattypically conduct similaroperations (weighing approximately 6,000 poundswith awingspan ofapproximately42feet, a length of34 feet, and afuel capacity of 180 gallons). 

### 3. Performing Aerial Video and Photography Operations With The DJI Phantom 3 Professional UAS Will BenefitThe Economy. In addition to being safe and efficient, the DJI Phantom 3 Professional UAS are also an economical alternative to using manned aircraft to conduct similar aerial operations. As such, operation ofthe DJI Phantom 3 Professional UAS will allow United States based companies, like SGD, INC., to remain competitive and contribute to growth ofthe U.S. economy. Specifically, with the rising cost ofaviation fuel and the Environmental ProtectionAgency14 ("EPA") regulatory actions phasing out leaded aviation fuels, U.S. owned and operated companies must adopt new and alternative technology in order to remain competitive. Operating the battery powered DJI Phantom 3 Profes$ional UAS is one such technology that not only allows companies greater operational flexibility compared to manned aircraft, but provides suchflexibility withoutthe high operational cost ofatraditional manned aircraft. By operating the OJI Phantom 3 Professional UAS, companies such as SGD, INC. can remain competitive and profitable, andtherefore, provide greaterjobstabilityto employees and contractors, which will ultimately contribute to growth of the U.S. economy. Improved financial performance of U.S. companies, through commercial use ofthe DJI Phantom 3 Professional UAS, provides astable workforce that increases consumer spending; improves local, state, and federal tax revenues; and



### 17allows companies to invest in research and development in order to remain competitive both in the United States and abroad. 4. ThereAre No Privacy Issues. Similar to the manned aerial acquisition flight operations that have been conducted for decades, SGD, INC. 's proposed operation of the DJI Phantom 3 Professional UAS will not implicate any privacy issues. Specifically, the OJI Phantom

### 3 Professional UASwill be operated only in compliance with operating documents (i.e., SGD, INC.Aerial Operations Manual, Monthly Maintenance Log, and · DJI Phantom 

### 3 Instruction Manual) which requires property owner involvement as well as local law enforcement notification, and in accordance with the Federal Aviation Regulations, including the minimum altitude requirements of 14 C.F.R. 

### § 91.119.



### J. The Reasons WhyGrantingThe Exemption Would NotAdverselyAffectSafety

(1) Reasons Why The DJI Phantom 3 Professional UAS Meet The Conditions OfThe FAA Modernization and Reform Actof

### 2012 (FMRA) Section 333. In consideration ofthesize, weight, speed, and limited operating area associatedwiththe unmanned aircraft and its operation, SGD, INC.'s operation ofthe DJI Phantom 3 Professional UAS meetthe conditions of FMRA Section 333, and will not require an airworthiness certificate in accordancewith 14 C.F.R. Part 21, Subpart H. Section 333 provides authorityfora UASto operate without airworthiness certification and setsforth requirementsfor considering whether a UAS will create a hazardto users ofthe NAS orthe public, or otherwise pose athreat to national security. Specifically, FMRA Section 333 states thefollowing, in part: (a) In General. --Notwithstanding any other requirement ofthis subtitle, and not later than 180 days after the date of enactment of this Act, the Secretary of Transportation shall determine if certain unmanned aircraft systems may operate safely in the national airspace system before completion of the plan and rulemaking required by section 332 ofthis Act orthe guidance required by section 334 ofthisAct. (b) Assessment of Unmanned Aircraft Systems.--ln making the determination under subsection (a), the Secretary shall determine, at a minimum- (1) which types ofunmanned aircraft systems, ifany, as a result oftheirsize, weight, speed, operational capability, proximity to airports and populated



### 18areas, and operation within visual line of sight do not create a hazard to users of the national airspace system or the public or pose a threat to national security; and (2) whetheracertificateofwaiver, certificateofauthorization, orairworthiness certification under section 44704 of title 49, United States Code, is required for the operation of unmanned aircraft systems identified under paragraph (1). (c) Requirements for Safe Operation.--lfthe Secretary determines underthis section thatcertain unmannedaircraftsystems mayoperate safely in the national airspace system, the Secretary shall establish requirements forthe safe operation of such aircraft systems in the national airspace system. In seeking this exemption, SGD, INC. submitsthatthe DJI Phantom 3 Professional UAS can operate safely in the NAS pursuantto FMRA Section 333, as demonstrated by: (a) the characteristics ofthe DJI Phantom 3 Professional UAS; (b)the pilotcertification requirement; and (c) thespecificoperating limitations.



### a. The Specifications OfThe DJI Phantom 3 Professional UAS Demonstrate Its Safe Characteristics. The DJI Phantom 3 Professional UAS does not create a hazard to users ofthe NAS orthe public, orotherwise pose athreatto national security considering its size, weight, speed, and operational capability. 

### 1) Technical Specifications OfThe DJI Phantom 3 Professional UAS. The technical specifications ofthe DJI Phantom 3 Professional UAS are set forth by the DJI Phantom 3 User Manual, attached hereto as Appendix

### A. 2) The DJI Phantom 3 Professional UAS Global Positioning Modes Enable The UAS To Remain WithinA Defined OperationalArea. The DJI Phantom 3 Professional UAS may be operated in both manual and global positioning flight modes. A complete description ofthe flight and navigational modes of the DJI Phantom 3 Professional UAS is provided at pages 11 ofthe DJI Phantom 3 User Manual attached hereto as Appendix

### A. 3) The DJI Phantom 3 Professional UAS Are Designed For Automatic Return To Home PointOrHover In The EventOf LossOfThe Control LinkOrNavigation.



### 19Whenthe Control Link is lost, the DJI Phantom 3 Professional UAS will remain stationary, in flight, for 3 seconds or more. If, after 3 seconds, the DJI Phantom 3 Professional UAS does not reacquire control link data from the GCS, the UAS will assume that the Control Link is lost and the will return to the home position (i.e., failsafe mode) via GPS, and will descend tothe takeoff position and shutdown. A complete description ofthe Failsafe Functions ofthe DJI Phantom 3 Professional UAS are set forth at pages 12 through 14 of the DJI Phantom 3 Professional User Manual, attached hereto as Appendix

### A 

### 4) The DJI Phantom 3 Professional GCS And Its Operation. A complete description of the operation and specifications of the DJI Phantom 3 Professional GCS and flight control software is provided at pages23through 29 ofthe DJI Phantom 3 User Manual. DJI Phantom 3 User Manual is attached hereto as Appendix

### A 

### b. Flight Operations Of DJI Phantom 3 Professional UAS Is Limited To The Line Of SightOfA Certificated Pilotin Command With A SafetyObserver. SGD, INC. video production staffwill be the only persons to actas a pilot in command (PIC) ofthe DJI Phantom 3 Professional UAS. Additionally, a safety observer will assist him at all times during flight time.


### c. Flights Of DJI Phantom 3 Professional UAS Will Be Conducted Pursuant To SpecificOperating Limitations. In seeking this exemption, SGD, INC. proposes to commercially operate DJI Phantom 3 Professional UAS forthe special purpose of conducting aerial video and photography over certain areas of United States, pursuant to the following specific operating limitations. 1. Operations authorized by this grant ofexemption will be limited to the following aircraft described in the operating documents, rotorcraft UAS weighing less than 55 pounds maximum gross weight: DJI Phantom 3 Unmanned Aircraft Systems. Proposed operations of any other aircraft will require a new petition or a petition to amend this grant. 2. UAS operations under this exemption will be limited to conducting operations for the purpose of aerial video and photography. 3. The UAS may not be flown at an indicated airspeed exceeding 20 knots. 4. The UA must be operated at an altitude of no more than 400 feet above ground level (AGL), as indicated by the procedures specified in the operating documents unless a special request is made and approved by ATC. All altitudes reported to ATC must be in feet AGL. 5. The UAS must be operatedwithin visual lineofsight (VLOS) ofthe PIC at all times. This requires the PIC to be able to use human vision unaided by any device other than corrective lenses, as specified on the PIC's FAA-issued airman medical certificate. 6. 6. The use offirst person view (FPV) bythe PIC orsafetyobserver(SO) is not permitted.

207. All operations must utilize a safety observer (SO). The SO may be used to satisfy the VLOS requirement as long as the PIC always maintains VLOS capability. The SO and PIC must be ableto communicate verbally at all times. Electronic messaging or texting is not permitted during flight operations. The PIC must be designated before the flight and cannot transfer his or her designation for the duration ofthe flight. The PIC must ensurethatthe SO can perform the functions prescribed in the operating documents. 8. The SO must not perform any other duties beyond assisting the PIC with seeing and avoiding other air traffic and other ground based obstacles/obstructions and is not permitted to operatethe camera or other instruments. 9. The operating documents and the grant of exemption must be accessible during UAS operationsand madeavailabletotheAdministratorupon request. Ifadiscrepancyexists between the conditions and limitations contained in the grant of exemption and the proceduresoutlined inthe operating documents, the conditions and limitations contained in the grant of exemption take precedence and must be followed. Otherwise, the operator must follow the procedures as outlined in its operating documents. The operator may updateorrevise its operating documents. It is the operator's responsibility totracksuch revisions and present updatedand revised documentsto theAdministrator upon request. The operator must also present updated and revised documents if it petitions for extension or amendment to the grant of exemption. If the operator determines that any update or revision would affect the basis upon which the FAA granted the exemption, then the operator must petition for amendment to its grant of exemption. The FAA's UAS Integration Office {AFS-80) may be contacted ifquestions arise regarding updates or revisions to the operating documents. 10. Prior to each flight the PIC must inspect the UAS to ensure that it is in a condition for safeflight. Ifthe inspection reveals aconditionthataffectsthe safe operationofthe UAS, the aircraft is prohibited from operating until the necessary maintenance has been performed and the UAS is found to be in a condition forsafe flight. The Ground Control Station must be included in the preflightinspection. All maintenanceand alterations must be properly documented in the aircraft records. 11. Any UAS that has undergone maintenance or alterations that affect the UAS operation orflight characteristics, e.g. replacement ofa flight critical component, must undergo a functional testflight. The PIC who conductsthefunctional testflight must make an entry in the aircraft records. 12. The pre-flight inspection must account for all potential discrepancies, e.g. inoperable components, items, or equipment, not already covered in the relevant sections ofthe operating documents. 13. The operator must follow the UAS manufacturer's aircraft/component, maintenance, overhaul, replacement, inspection, and life limit requirements. 14. The operator must carry out its maintenance, inspections, and record keeping requirements, in accordance with the operating documents. Maintenance, inspection, alterations, and status of replacement/overhaul component parts must be noted in the aircraft records, including total time in service, description of work accomplished, and the signature ofthe authorized person returning the UAS to service. 15. Each UAS operated under this exemption must comply with all manufacturer Safety Bulletins.


### 2116. The authorized person must make an entry in the aircraft record ofthe corrective action taken against discrepancies discovered between inspections. 17. The PIC must possess at leastaprivate pilot certificate and at leastacurrentthird- class medical certificate. 18. The operator may not permit any PIC to operate unless the PIC meets the operator's qualification criteria and demonstratesthe abilityto safely operate the UAS in a manner consistent with how the UAS will be operated under the exemption, including evasive and emergency maneuvers and maintaining appropriate distances from persons, vessels, vehicles and structures. PIC qualification flight hours must be logged in a manner consistent with 14 C.F.R. 

### § 61.51 (b). Flights for the purposes of training the operator's PICs are permitted under the terms of the exemption. However, training operations may only be conducted during dedicated training sessions. During training, proficiency, and experience-building flights, all persons notessentialforflightoperations are considered nonparticipants, and the PIC must operate the UA with appropriate distancefrom nonparticipants in accordance with 14 C.F.R. 

### § 91.119. 19. UAS operations may not be conducted during night, as defined in 14 C.F.R. 

### § 1.1. All operations must be conducted undervisual meteorological conditions (VMC). Ifflight at night is required, a special request will be made atthe FAA office closest to proposed area ofoperations. Flights underspecial visual flight rules (SVFR) are not authorized. 20. The UA may not operatewithin 5 nautical miles ofan airport reference point as denoted on a current FAA-published aeronautical chart unless a letter of agreement with that airport's management is obtained, and the operation is conducted in accordance with a NOTAM as required by the operator's COA. The letter of agreement with the airport management must be made availabletotheAdministrator upon request. 21. The UAmay not beoperated lessthan 500feet belowor lessthan2,000feet horizontally from a cloud orwhen visibility is less than 3 statute milesfrom the PIC. 22. If the UA loses communications or loses its GPS signal, it must return to a predetermined location within the planned operating area and land or be recovered in accordancewith the operating documents. 23. The PIC must abort the flight in the event of unpredicted obstacles or emergencies in accordance with the operating documents. 24. The PIC is prohibited from beginning a flight unless (considering wind and forecast weatherconditions)there is enough powertofly atnormalcruising speedtothe intended landing point and land the UAwith 25% battery power remaining. 25. The operator must obtain an AirTraffic Organization (ATO) issued Certificate ofWaiver orAuthorization (COA) priorto conducting any operations underthe grantofexemption. This COAwill also requirethe operatorto requesta NoticetoAirman (NOT AM) notmore than 72 hours in advance, but not lessthan48 hours priortotheoperation.All operations shall be conducted in accordance with airspace requirements in the ATO issued COA including class ofairspace, altitude level and potential transponder requirements. 26. All aircraft operated in accordance with the exemption must be identified by serial number, registered in accordance with 14 C.F.R. part 47, and have identification (N

### 22Number) markings in accordance with 14 C.F.R. part 45, Subpart C. Markings must be as large as practicable. 27. Before conducting operations, the radio frequency spectrum used for operation and control ofthe UA must comply with the Federal Communications Commission (FCC) or otherappropriate government oversight agency requirements. 28. The documents required fewerthan 14 C.F.R. 91.9 and 91.203 must be available to the PIC at the Ground Control Station of the UAS any time the UAS is operating. These documents must be made available to theAdministrator orany law enforcement official upon request. 29. The UA must remain clear and yield the right ofway to all manned aviation operations and activities at all times. 30. The UAS may not be operated by the PIC from any moving device orvehicle. 31. Flight operations must be conducted at least 500 feet from all nonparticipating persons (persons other than the PIC, SO, operator trainees or essential persons), vessels, vehicles, 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 500feet ofthe UA, flight operations must cease immediately and/or; b. The aircraft is operated near vessels, vehicles or structures where the owner/controllerofsuch vessels, vehicles orstructures 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 hazard, and; 32. Operations nearertothe PIC, SO, operatortrainees oressential persons do not present an undue hazard to those persons per 

### § 91.119(a). 33. All operations shall be conducted over private or controlled-access property with permission from the land owner/controllerorauthorized representative. Permission from land owner/controller or authorized representative will be obtained for each flight to be conducted. 34. Any incident, accident, or flight operation that transgresses the lateral or vertical boundaries ofthe operational area as defined by the applicable COA must be reported to the FAA'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 NTSBWeb site: www.ntsb.gov. (2) Reasons Why An Exemption From The Requirements OfSection 91.7(a) Would Not Adversely Affect Safety. The equivalent level of safety established by Section 91.?(a) will be maintained because prior to every flight, SGD, INC. will ensure that the DJI Phantom 3 Professional UAS is in an airworthy condition based upon the UAS's compliance with its operating documents and as stated in the conditions and limitations herein.
23

### Additionally, the FAA has previously granted relief from Section 91.7(a) specific to UAS, in circumstances similar, in all material respects, to those presented herein (e.g. Exemption Nos. 11062,11063,11064,11065,11066,11067,11080,11109,11110,11112,11136,11138,11150, 11153, 11156, 11157, 11158, 11159, 11160, 11161).
{3) Reasons WhyAn Exemption From The Requirements OfSection 91.121 Would Not Adversely Affect Safety. 

### The equivalent level of safety established by Section 91.121 will be maintained because the altitude information ofthe DJI Phantom 3 Professional UAS will be provided to the PIC via GPS equipment and a radio communications telemetry data link, which downlinks from the UA to the GCS for active monitoring ofthe flight path and altitude. This altitude information, combined with SGD, INC. 's operation of the DJI Phantom 3 Professional UAS within visual line of sight, at or below 200 feet AGL, will ensure a level of safety equivalent to Section 91.121. The altitude information will be generated by GPS equipment installed onboard the aircraft. Prior to each flight, a zero altitude initiation point is automatically established by the UAS at ground level. The FAA has previously granted relief from Section 91.121 specific to UAS, in circumstances similar, in all material respects, to those presented herein (e.g. Exemption Nos. 11062, 11063, 11064, 11065,11066,11067,11080,11109,11112, 11136,11138,11150,11153,11156, 11157, 11158,11159,11160, 11161).
(4) Reasons WhyAn Exemption FromThe Requirements OfSection 91.151(b) Would Not Adversely Affect Safety. 

### A grant of this exemption would ensure an equivalent level of safety established by 14 C.F.R. Section 91.151(b) as a result of (1) the technical specifications ofthe DJI Phantom 3 Professional UAS; (2) the limitations on the proposed flight operations; and (3) the location of the proposed flight operations. Accordingly, SGD, INC. will ensure that itwill safely operatethe battery powered DJI Phantom 3 Professional UAS during daylight hours in VFR conditions, with enough battery powerto fly for atotal duration of23 minutes. Here, as in Exemption No. 11109, the technical specifications of the DJI Phantom 3 Professional UAS; the limitations on the proposed flight operations; and the location ofthe proposed operations, will ensure an equivalent level ofsafety established by 14 C.F.R. Section 91.151(b). Furthermore, safety will be ensured as the DJI Phantom 3 Professional UAS provide audible and visual warnings to the PIC at the GCS when the UAS experiences low battery voltage, the first warning occurring at approximately 33% remaining battery power, and again at approximately 10% remaining battery power. At the critically low battery level, the DJI Phantom 3 Professional UAS will descend and land automatically. Significantly, previous exemptions granted by the FAA concerning Section 91.151 establish that safety is not adversely affected when the technical characteristics and operating limitations ofthe UAS are considered. Relief has been granted for manned aircraft to operate at less than the minimums prescribed in Section 91.151, including Exemption Nos. 2689, 5745, and 10650. Moreover, the FAA has previously granted relief from Section 91.151 specific to UAS, in circumstances similar, in all material respects, to those presented herein (e.g. Exemption Nos.

2488111 10808, 10673, 11042, 11062, 11063, 11064, 11065, 11066, 11067, 11080, 11109, 11110, 11136,11138, 11150, 11153, 11156,11157, 11158,11159, 11160, 11161).



### K. Summary that can be published in Federal Register, including the rule from which exemption issought, and a briefdescription ofthe nature oftheexemptionsought:

SGD, Inc. proposesthatthe FAA usethefollowing as the summary: Docket No.: FAA-2015- Petitioner: SGD, Inc.
Sections of14 CFR: 61.23(a) and (c), 61.101(e)(4) and (5), 61.113(a) and (b), 61.315(a), (c)(2), and (c)(3), 91.7(a), 91.119(c), 91.121, 91.151, 91.405(a), 91.407(a)(1), 91.409(a)(1) and (2), and 91.417(a) and (b). Description ofReliefSought: Petitionerseeks an exemptionto operate small UAS's foraerial inspections ofaccident scene investigations, structural losses (such as fire and wind where access may be unsafe), and training purposes for safe and appropriate use ofthe UAS.



### L Conclusion: For the above reasons, SGD, Inc. respectfully requests that the FAA grantthis Petition for Section 333 Exemption.



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