Date: June 28 th

, 2015

U.S. D e p a rtme n t of T r a n sport a t i on

Do c k e t Man a g e ment S y s tem

1200 N e w J e rs e y Av e

., S E W a shin g ton, DC 20590

R e : P e t i t i on of the University of Southern California

, for a n E x e mp t ion P u rsu a nt t o S ec t i on 333 of the F AA

Mod e rni z a t i on a nd Re f

o r m A c t of 2012

To W hom i t M a y Con c e r n:

P u r suant to S ec t i on 333 of the F A A Mod e rni z a t i on a nd Re f o r m A c t of 20 1 2 ( " R e fo r m A c t " ) a nd 14

C. F .R. P a rt 1 1, University of Southern California (" USC " ) h e r e b y a ppl i e s for a n e x e mp t ion f r om the F e d e r a l

A viation R e gulations ( " F

AR s " ) id e nt if

ied b e low t o a l l ow c om m e r c ial op e r a t i on of small unmann e d ae r i a l

vehi c les ( i.e., " small unm a nn e d a ir c r a f t " or " U A S " ) for the pu rpose o f c ondu c t i n g controlled flights for aerial

research to create 3D city and landscape models, a e ri a l photogrammetry , and p r e c is i on ae ri a l surv e y s.

This peti t ion for e x e mp t i on is created b a s e d on inf o rm a t i on out l ined in th i s Pe t i t i on f o r E x e mp t ion, as

we ll a s but not limited to t h e se accompanying USC documents ;

1. USC ’ s O p e r a t i ons Man ua l and;

2. USC ’ s Op e r a t i ons Man ua l

3. USC ’ s PIC Operating Manu a l

(c ol le c t i v e l y r e fe r

re d to as " USC ' Op e r a t i ons Man ua ls" )

4. D J I Phantom II and S900 Us e r G uide and;

5. D J I Phantom II and S900 Us e r M a nu a l

(c ol lec t i v e l y r e f

e r r e d to as " M a nuf

a c tu r e r ' s Man u a l s " )

. 1

The USC submi t s these as well as other USC s u pporting mat e ri a ls as c o n fid e nt i a l docum e nts

pur s u a nt t o 14 C. F .R. § 11.35 ( b )

, a s the mat e ri a ls contain c onfid e nt i a l c o m m e r c ial a nd/or p r o p ri e t a r y

info r mat i on that the USC h a s not a nd will not sh a re with o t h e rs. A ddi t ional l y , t h e se do c u m e nts contain

op e r a t i ng c ondi t ions and p r o ce du re s that a r e not g e n e r a l l y a v a i l a ble to the public a nd a re pro t ec ted f rom

r e le a s e und e r the F r ee d o m of I n fo r mation A c t, 5 U.S. C

. § 552 e t seq.

1 T he te r m " Man u f

ac tu r e r 's Man ua l" a lso includ e s a ll r e lev a nt manu f ac tu r e r p ubli ca tions

, in c ludin g , but not

l i m i ted to: op e r a t i ons a n d f li g h t m a nu a ls

, us e r g ui d e s

, c ompon e n t m a int e n a n c e m a n u a ls

, pilo t tr a in i ng

man u a ls, s e rvi c e info r mation l e t t e rs a nd, s a f e t y /se r vi c e bul l e t i ns

.U.S. D e p a rtme n t of T r a n sport a t io n

June 28 th , 2015

P a g e 2

T h is P e t i t i on is o r g a ni z e d a s follows:

I. P e ti t io n e r

II. D e s cr i p tion of P r o p os e d O p er a t io n s

A. Aerial research to create 3D city and landscape models

B

. A e ri a l photogrammetry, and p r e c is i on property ae ri a l surv e y s.

II. R e levant Sta t u to r y Au t h o r ity

IV. USC ’ P r o p osed U A S O p er a t io n s Mee t t h e R e qu ir e m e n ts of S ec ti o n 333 of t h e R e f o r m A c t

A. App r ov a l i s W a r

ra nted B a s e d on the U A S ' s S i z e

, W e i g ht, S p e e d, a nd Op e r a t i on a l C a p a bi l i t y

B

. App r ov a l i s W a r

ra nted B a s e d on the O p e r a t i on a l R e strictions S e t F o r th i n the Op e r a t i ons

Man u a l s

V. R e g u latio n s F r o m W h i c h Ex e m p tion i s Requested

A. 14 C. F .R. P a rt 21, Subp a rt H

– Air w o r th i n e ss C e r t ific a tes a nd 14 C. F .R. § 91.203 (a ) ( 1 )

B

. 14 C. F .R. P a rt 27 A irwo r th i n e ss S tand a rds: No r mal C a te g o r y Rotor c r a ft

C. 14 C. F .R. §§ 91.9 (c ), 45

. 23(b) a nd 45.27 ( a ): Ai r c r a ft M a rki n g a nd I d e nt i fi ca t i on Requir e m e nts

D. 14 C. F .R. § 91.405 (a ), 9 1.407 (a ) ( 1 ), 91

. 409(a) ( 1) a nd ( 2 ); 91.417 ( a ) a nd ( b ) : Mainten a n c e

I nspe c t i ons

E. 14 C. F .R. P a rt 61, 14 C. F .R. § 61.3, 14 C. F .R. § 61.113: P riv a te P i lot P rivile g e s and L i m i t a t i o n s

F

. 14 C. F .R. § 91.7 (a ): C i vil Air c r a ft Ai r wo r th i n e ss

G. 14 C. F .R. § 91.9 ( b ) (2 ) : C iv i l Air c r a ft F l i g ht Man u a l i n the A ir c r a ft a nd 14 C. F .R. § 91.203 (a )

a nd ( b ) : C a r r y

i n g Civ i l Air c raft Ce r t i fi ca t i on a nd R e g is t r a t i on

H. 14 C. F .R. § 91.103: P r e fli g ht A c t i on

I

. 14 C. F .R. § 91.109 (a ): F l i g ht I nstru c t i on

J

. 14 C. F .R. § 91.11 9 ( c ) : M in i mum S a fe Alt i tudes

K. 14 C. F .R. § 91.121: Al t i met e r Settin g s

L

. 14 C. F .R. § 91.151 (a ): Fuel R e quir e ments for F l i g ht i n V F R Condi t ions

VI. D r u g a n d Al c o h ol P r o g r a m

VII. P ub l i c I n t e re s t

VIII. P r iv a c y

IX. F e de r al R e gis t e r S u mm a r y

X. Concl u sionU.S. D e p a rtme n t of T r a n sport a t io n

June 28 th , 2015

P a g e 3

I. D E SCRI P T I O N O F P ET I T I O NER

B a s e d in Los Angeles, California, USC is a well

- known university graduating thousands of students

annually in many different areas of science, technology, engineering, mathematics and the arts. The

university has a University Affiliated Research Center (a UARC) called The Institute for Creative

Technologies located in playa vista which is d e dic a ted to p r ovid i ng immersive learning experiences utilizing

artificial intelligence, simulations, virtual humans and te c hnol o g i c a lly innovative s olu t ions for education,

industry and government. The ICT is working on research related to photogrammetry and precision

aerial surveying. On behalf of USC, and its’ Assoc Director for Digital Training & Instruction

, Ryan

Mcalinden, along with a small staff, are creating a unique method of acquiring imagery for the initial and

principle use of creating 3D models of the terrain, city, and landscape models. As p a rt of USC’ vis i on

of pro v id i ng n e w a nd innovative solu t ions bui l ding upon i t s e x tensive history of education and

innovation, USC s ee ks an e x e mp t ion to allow for the c om m e r c ial op e r a t i ons of sm a ll, U A S less than 5 5lbs

to research ae ri a l photogrammetry and p r e c is i on ae ri a l surv e y ing.

The c onta c t i n f

o rm a t i on f

o r Petitioner is as f

ol l o w s:

Ryan Mcalinden

Assoc Director for Digital Training & Instruction

University of Southern California

Institute for Creative Technologies

12015 Waterfront Drive

Playa Vista, CA 90094

310 448

- 5387

mcalinden@ict.usc.edu

II. D E SCRI P T I O N O F P R O P O S E D O P E RAT I O N

USC s e e ks an e x e mp t ion pursu a nt t o S ec t i on 333 of the Re f o r m A c t t o op e r a te the D J I Phantom II

and a DJI S 900 U A S f

o r the p r opos e d op e r a t i ons disc uss e d b e low. All U AS ope ra t i ons will oc c ur und e r

ti g ht l y c ontroll e d c ondi t ions at locations wh e re USC h a s r e c e ived p e rmission t o op e r a te f r om t he

lando w n e r, c ontroll e r o r a uthori z e d r e p re s e ntativ e s

. The pro p osed U AS op e r a t i ons will be c ondu c ted in

a cc o r d a n c e with the c ondi t ions and lim i ta t ions of this P e t i t i on f o r E x e mp t ion and USC ’ Op e r a t i ons

Man u a ls. As d e tailed in USC ' Op e r a t i ons Man u a ls, all U A S op e r a t i ons will be l i m i ted to d a y t i me V F R

c ondi t ion s , with i n visu a l l i ne

- o f

- s i g ht ( " V L OS " ) o f the op e r a tor and or (“VO”) visual observers

, in

uncont r ol l e d a irsp a c e

, a nd will o cc ur a t l ea st 5 m i l e s a w a y f rom a n a irp o rt. Mo re ov e r, USC ’ O p e r a t i ons

Manu a ls inco rpor a te r e dund a nt s a f e g u a rds to a ssu r e that the a ir c r a ft do e s not tr a v e l ou t side the c ontroll e d

are a o f U AS op e r a t i ons, in c lud i ng GPS "geo

- f e n c i ng" te c hnol o g ies.

A. Ae ri a l P hotogrammetry and P r e c is i on P roperty A e ri a l S urv e y ing

USC s e e ks to use sm a ll U A S s for the pu rpose of c ondu c t i n g ae ri a l photogrammetry and p r e c is i on

property ae ri a l surv e y ing.U.S. D e p a rtme n t of T r a n sport a t io n

June 28 th , 2015

P a g e 4

USC h a s t a i l o re d i t s op e r a t i ons to m ee t t he re qui r e ments e stablished b y t h e F A A in p r ior g ra nts of

e x e mp t i on s a uthori z ing c om m e r c ial use o f U AS i n ae ri a l photogrammetry and p r e c is i on ae ri a l property

surv e y ing includi n g :

 Michael Baker International, LLC ( E x e mp t ion No. 11711 )

 M2 Flight Solutions, LLC (E x e mp t ion No. 11519 )

 B izUAS Corp, ( E x e m pt i on No. 11351 )

All UAS ae ri a l photogrammetry and p r e c is i on property ae ri a l surv e y ing op e r a t i ons will be conducted

on USC and other approved p r op e r t y in a c ontrol l e d a re a

, a w a y f r om sp ec tators a nd p e r s ons not invo l v e d.

All UAS ae ri a l photogrammetry and p r e c is i on property ae ri a l surv e y ing will be c ondu c ted du r i n g d a y l i g h t

hours , V F R c ondi t ions, a t alt i tudes b e low 40 0 ' A G L

. As s e t fo r th below, USC ’ op e r a t i ons pro v ide a

sup e rior l e v e l of sa fe t y and quality compared to p e r f o r m i n g the s a m e ae ri a l photogrammetry wo r k using

c onv e nt i on a l fi x e d

- wing a i r c raft or h e l icopt e rs.

USC s e e ks to use sm a ll U A S s for the pu rpose of c ondu c t i n g ae ri a l photogrammetry and p r e c is i on

property ae ri a l surv e y ing . T r a di t ional methods of ae ri a l photogrammetry and p r e c is i on property ae ri a l

surv e y ing are extremely costly and present uncalled for r isk, physical h a rm, se r ious i nju r y and death to

manned aircraft participants and pedestrians on the ground

. Further, the use of traditional aircraft e x poses

participants and pedestrians the r isk of d a n g e rous low level aircraft engine failure making recovery or

emergency landings as one of the extremes

. The use o f s m a ll U A S s m i t i g a tes th e se h a z a rds a nd is

ul t i m a te l y a much s a f

e r m e thod of p e r f

o rming the s e and most other t y p e s of ae ri a l photogrammetry and

p r e c is i on property ae ri a l surv e y ing

.

S mall UAS ae ri a l photogrammetry and p r e c is i on property ae ri a l surv e y ing is a lso s a f e r t h a n

tr a di t ional mann e d a ir c r a ft p e r f o rming the s a me fun c t i on. Conv e nt i on a l ope ra t i ons us i ng roto rc r a ft a nd

fi x e d

- wing a ir c r a ft i n low le v e l op e r a t i ons pr e s e nt risks a ssoci a ted w i t h v e hicl e s w e i g hi n g thous a nds of

po u nds a nd ca rr y

i n g la r ge a moun t s of f

u e l. I t is i mport a nt t o note th a t t he use o f sm a ll U A S in t his a re a

will not on l y be sa f

e r a nd mo r e c ost e f

f e c t i v e , but t he qu a l i t y of collected data and in f o r mation is f

a r

sup e rio r

.

S mall U A S ae ri a l photogrammetry and p r e c is i on property ae ri a l surv e y ing is more r e l i a ble, a nd

a l l ows f o r the c ol l ec t i on, diss e m i n a t i on, a nd sto r a g e o f visual a nd other senso r y d a ta w i t h gr e a t e r p r ec is i o n

a nd du ra t i on. S mall UASs are a lso ca p a ble o f a c ce ss i n g a nd inspe c t ing a re a s that wo u ld o t h e r w ise be

in a cce ss i ble to humans or cannot be completed with c onv e nt i on a l aircr a ft.U.S. D e p a rtme n t of T r a n sport a t io n

June 28 th , 2015

P a g e 5

III. R ELE V ANT ST ATUT O RY AUT H O RI T Y

This P e t i t i on f

o r E x e mp t i on is submi t ted pu r suant to S ec t i on 333 (a ) th r o u gh ( c ) of the F AA

Mod e rni z a t i on a nd R e fo r m A c t of 2012 ( " R e fo r m A c t " ). Co n g r e ss h a s dir e c ted the F AA " to sa f e l y

a c ce le r a te the i nte g r a t i on of c iv i l un m a n n e d a ir c r a ft s y stems i nto t he n a t i on a l airsp a c e s y stem

. " P u r suant to

S e c t i on 333 of the Re f

o r m A c t, t he F AA Admin i str a tor is t o p e rmit unm a nn e d a ir c r a ft s y st e ms t o op e r a te in

the Na t i on a l Air Sp ac e (" N AS " ) wh e re it is s a f e to do so b a s e d on the f

ol l owi n g c onsid e r a t i ons:

● The U A S ' s s iz e , w e i g ht, spe e d a nd op e r a t i on a l c a p a bi l i t y ;

● Op e r a t i on of the U A S in close pro x i m i t y to ai rp o rts a nd populat e d a r ea s; a n d

● Op e r a t i on of the U A S with i n the visu a l l ine of sight of the op e r a tor.

Addit i on a l l y , the FAA A dm i nis t r a tor h a s ge ne r a l autho r i t y to g r a nt e x e mp t ions f r om t he a g e n c y 's

s a f e t y re g ulations a nd m i ni m um s t a nd a rds w h e n the A dm i nis t r a tor d ec ides a r e q u e sted e x e mp t ion i s in the

publ i c in t e r e st. S e e 49 U.S. C . § 106( f ) ( d e fini n g the a u t hori t y of the Admin i str a tor ) ; 49 U. S .C. § 44701 ( f)

( p e rmit t ing e x e mp t ions f

r om §§ 447 0 1 (a ), ( b ) a nd ;

§§ 44702

– 44716, e t se q

. ). A p a r t y r e qu e st i n g a n e x e mp t ion m ust e x p l a in the rea sons w h y the e x e mp t ion:

( 1) would b e n e fit the publ i c a s a w ho l e

, a nd ( 2 ) would not adv e rs e l y a f f ec t s a f e t y ( or how it would provide

a lev e l of s a f

e t y a t l ea st e q u a l t o the e x is t ing r ules )

. S e e 14 C. F .R. § 11.81 (p e t i t i ons for e x e mp t ion).

IV. USC ' P R O P O S E D U AS O P E RAT I O NS M EE T T H E R E Q UIR EME NTS O F SE CTI O N 333

O F T H E R E F O RM ACT

The small U A S op e r a t i ons p r opos e d b y USC i n th i s P e t i t i on for E x e m p t i on qu a l if y f o r e x p e di t e d

a ppro va l purs u a nt to S ec t i on 333 of the Re f o r m A c t a s e a c h of t h e st a tu t o r y c rite r i a a nd r e lev a nt f ac tors a re

s a t i sfi e d.

A. Ap p r oval i s Wa rr a n t e d Based on t h e U A S 's S i z e , W e ig h t, S p ee d , a n d O p er a t io n al Ca p a b i l ity

A G r a nt of E x e mp t ion i s ap p rop r iate for op e r a t i o n s co n du c ted usi n g the DJI Phantom II & S900 U A S s due t o

its si z e w e i g ht, sp e e d, a nd op e r a t i on a l ca p a bi l i t y

.

 T he DJI PHANTOM II & S900 h a s b ee n a ppro ve d for u s e in prior S ec t i on 333 G ra nts of

E x e mp t ion f

r om t he F A A

. 2

2 S e e e .g

., G r a nt of E x e mp t ion t o Michael Baker International, LLC ( E x e mp t ion No. 11711 )

, M2 Flight Solutions, LLC (E x e mp t ion No. 11519 )

, BizUAS Corp, ( E x e m pt i on No. 11351 )

.U.S. D e p a rtme n t of T r a n sport a t io n

June 28 th , 2015

P a g e 6

 The DJI PHANTOM II & S900 w ei g hs l e ss t h a n 55 pounds, in c lud i ng p a y load.

 The DJI PHANTOM II & S900 will not be f lown a t a g r ound speed in e x ce ss of 50 knots.

 Alt i tude in f

o r mation wi l l be g e n e r a ted b y e quip m e nt onboa r d the U A a s s p ec ified using GPS

tria n g u l a t i on, di g i t a l l y e n c o d e d b a rom e tric a l t i m e te r

, ra dio a l t i m e te r , or a n y c omb i n a t i on the re o f

.

This i n f o r mation wi l l be t ra nsm i t t e d to t he pi l ot v i a tel e metric d a ta f e e d.

 The U A S s will h a ve s y stem r e dund a n c ies a nd in d e p e nd e nt fu n c t i on a l i t y to e nsure the ov e r a ll sa f e t y

a n d p re dict a bi l i t y of the s y stem. I f c onn e c t i on to t he re m ote c ontrol or g round c ontrol station is

l ost, f a i l s a fe s y stems wi l l pe r m i t t he U A S to r e turn to a p r e d e t e rmin e d loc a t i on a nd s a f e l y l a nd

without in j u r y o r d a m a g e

.

 The ra dio f

r e qu e n c ies u s e d for op e r a t i ons a nd c o n trol of the U A S c omp l y with t he Fe d e r a l

C om m unic a t i ons C om m is s ion ( " F CC " ) a n d other a ppro p ri a te g ov e rnm e nt ove r s i g ht a g e n c y

re qu i r e ments. The op e r a t i n g f r e qu e n c y for t he DJI PHANTOM II & S900 is 2.4 G H z

.

I f the s a me o p e r a t i ons w e re c ond u c ted usi n g a h e l i c opte r , the a i r c raf t ' s tak e

- o f f w e i g ht would l i k e l y

e x cee d 6,0 0 0 pounds carrying a pilot, camera operator and VO

- visual observer

- navigator . The dif f e r e n c e

in w e i g ht betw e e n the DJI PHANTOM II & S900 a nd a h e l i c opt e r si g n ific a nt l y r e du ce s t h e potential h a rm

to the p a r t icip a t i ng a nd no n

- p a rticip a t i ng ind i viduals or pro pe r t y in t he e v e nt o f a n a c c ident or incid e nt. I n

a ddi t ion, t he r isk to t he onbo a rd pilot a nd ca me r a op e r a tor is eli m inat e d.

B. Ap p r oval i s Wa rr a n t e d B a s e d on t h e O p er a t io n al R e st r ic t io n s S e t F o r th in USC ’ O p er a t io n s

M a nu a l s

USC ’ O p e r a t i ons M a nu a l s a nd the M a nu f ac tu r e r ' s Manu a l f

o r the sel e c t e d U A S s will c ontain a ll the

p r o c e dures and l i m i tations n ece ss a r y to s a f e l y a nd s u cce s s f

ul l y p e r fo r m t h e op e r a t i ons spe c if i e d in t his

P e t i t i on f o r E x e mp t io n . To a s si s t t he F AA in m a king a sa f e t y a ssessment of USC ’ p ropos e d op e r a t i ons,

b e low is a summa r y of o p e r a t ional l i m i tations a nd c ondi t ions that USC will a dh e re to, and w h i c h will

e nsure a n e q u i v a le n t or hi g h e r l e v e l of s a f e t y to ope r a t i ons c on d u c ted und e r c u rr e nt r e g u l a to r y g ui d e l i n e s:

1. The U A S w e i g hs l e ss t h a n 5 5 pounds, ful l y load e d

.

2. All ope ra t i ons shall be c o ndu c ted ov e r p riv a te or c ontroll e d

- a c ce ss prop e r t y with p e rmission f r om t he

land o w n e r/ c ontroll e r o r a ut h o r i z e d r e p re s e ntative. P e rmission f r om l a nd own e r/ c ontroll e r o r

a uthori z e d r e p r e s e ntative w i l l be obtain e d for e ac h fl i g ht o p e r a t i on.U.S. D e p a rtme n t of T r a n sport a t io n

June 28 th , 2015

P a g e 7

3. All UASs op e r a ted und e r the G r a nt of E x e mp t ion wi l l be id e nt i fi e d b y s e ri a l numbe r

, r e g is t e r e d in

a cc o r d a n c e with 14 C F R p a r t 47, and h a ve identifi c a t i on ( N

- Numb e r) ma r ki n g s in acc o r d a n c e with 14

C F R p a rt 45, Subp a rt C. M a r kin g s will be a s la r g e a s pr a c t ic a ble.

4. Mini m um c re w f

or e ac h fli g ht op e r a t i on will c onsist of a pi l ot, who will be P i l o t

- in C om m a nd

( " P I C " ) o f the U A S

, a nd one o r mo r e Visu a l Obs e rvers ( " Obs e rv e r " ) a s ne c e s s a r y to sa f e l y c o ndu c t

t he m i ss i on.

5. P I Cs shall poss e ss at le a s t a Priv a te P i lo t ' s C e rtifi c a te a nd c u r re nt C lass I I I Medi ca l C e rtifi ca t e

. The

P I C will a lso m ee t t he f

l i g ht r e vi e w re qui r e ments spe c ified in 14 C

. F .R 61

. 56 in an a ir c r a ft in which

the P I C is r a ted on his or h e r pi l ot c e rtifi ca te.

6. The UA shall be o p e r a t e d with i n V L OS of the P IC a nd Obs e rver a t all t i m e s. The P I C must use

h uman vision un a ided b y a n y d e v i c e other t h a n c o r r e c t i ve l e n s e s, as spe c ified on the P I C ' s F AA

is s u e d medi c a l c e rti f

ic a te.

7. The P I

C a nd Obs e r v e r desi g n a t e d for a n y o p e r a t i o n will be a ble to c om m unic a te v e rb a l l y a t all t i m e s.

8. Ele c tronic mess a g i n g or t e x t i ng will not be p e rmit t e d du r ing fli g ht o p e r a t i o ns.

9. The a ddi t ional re qui r e m e nts i d e nt i fi e d in t he G ra n t of E x e mp t ion shall be a dd e d to t he USC ’

O p e r a t i o ns Man ua l s. The Op e r a t i ons Man ua l s will be maintain e d a nd made a v a i l a ble to the Admin i str a tor

upon re q u e st. I f a disc r e p a n c y e x is t s b e tw ee n the c ondi t ions and lim i tations in the G r a nt of E x e mp t ion a nd

USC ’ Op e r a t i ons Man u a l s, the c ondi t ions and lim i tatio n s in t he G ra nt of E x e mp t ion shall t a ke pre ce d e n c e

a n d must be f

ol l ow e d. Oth e r w ise, USC shall follow the p r o ce du r e s outl i n e d in t h e ir Op e r a t i ons Man ua ls.

10. USC m a y u pd a te or r evis e it s O p e ra tio ns M a n u a ls

. R e vision s w il l b e t r a c k e d a n d a r e vi s e d c o p y of

t he M a n u a l w il l be p r ovi d e d to th e A dminist r a to r upo n re q u e st

.

USC w il l a ls o p re s e n t a n u pd a t e d a n d r e vis e d O p e r a tion s M a n u a l s i f i t p e tition s f o r e x t e nsio n o r a m e nd m e n t t o

it s G r a n t of E x e mption

. I f a n up d a t e or r e vis i on would a f f ec t t he b a sis upon whi c h the F A A g ra nts t he

e x e mp t ion, USC will se e k a n a m e ndment to i ts Gr a nt of Ex e mp t ion. USC will c o nta c t the F A A ’s U AS

I nt e g r a t i on O f

fi c e ( A F S

- 80) if q u e st i ons a rise r e g a rdi n g u pd a tes or re vis i ons to the op e r a t i ng do c u m e nts.

11. USC ’ O p e ra t i on s M a n u a l s a nd it s G r a n t o f E x e mptio n w il l be a v a i l a bl e to th e

P I C a t the g r o un d c on t r o l st a tio n a n y tim e t h e UA S is op e ra ti n g

.

12. The P I

C is prohib i ted f

r o m be g inn i n g a UAS f

l i g ht un l e ss ( c onsid e r i ng wind a nd f o re ca st w ea th e r

c ondi t ions) the r e is en o u g h po w e r to f l y to t he f i rst in t e nd e d point of l a nding, and a ssu m ing n o rm a l c r uis i ng

spe e d, to f

l y a ft e r t h a t for a t l ea st 10 m i nute s

.U.S. D e p a rtme n t of T r a n sport a t io n

June 28 th , 2015

P a g e 8

13. Ma x i m um to t a l fli g ht t i m e f or e ac h o p e r a t i on a l fl i g ht usi n g the DJI PHANTOM II & S900 will be

l i m i ted to 40 m i nutes or the a mount of time the U A S ca n be flo w n a nd s t i ll maintain a re s e rve b a t ter y po w e r

of no less than 25 % , whi c h e v e r oc c u r s fi r s t

.

14. F l i g hts will be op e r a ted a t an a l t i t ude of no more t h a n 400 fee t A G L a nd w i ll n e v e r e n t e r n a v i g a ble

c o ntroll e d a irsp a c e without prior w r i t ten a uthori z a t i on a nd a ppro va l f r om t he F A A. I n the e v e nt t he str u c ture

b e ing insp e c ted e x cee ds 400 f e e t A G L

, t h e U A S will not be oper a ted m o re th a n 100 fee t abo v e the h i g h e st

point on the stru c tur e

, a n d no more than 50 f e e t h o r i z ontal l y f

r om t he s t ructur e

.

15. F l i g ht op e r a t i ons must be c ondu c ted a t le a st 500 fe e t f r om all nonpa r t i c ipat i ng p e rsons. ( p e rsons

oth e r t h a n the P I

C, V O, op e r a t o r t ra ine e s o r e ssential p er sonnel ), v e ssels, v e hicl e s, and st r u c tur e s unl e ss:

a

. B a rri e rs or str u c tur e s a re p re s e nt t h a t suf f ic i e nt l y p rot ec t nonpa r t i c i p a t i ng p e rsons f rom the U A a n d /or

d e b r is i n the e v e nt of a n a c c ident. The op e r a tor must e nsu r e that nonp a rti c ipating p e rsons re main und e r

s u c h p r ote c t i on. I f a si t u a t i on a ris e s wh e re nonp a rticip a t i ng p e rsons l e a ve such p r ote c t i on a nd a re

with i n 500 fee t of the U A

, f l i g h t ope ra t i ons must c ea se i m medi a te l y a nd/or;

b. The a ir c r a ft is op e r a ted n ea r v e s s e ls, vehi c les or s t ru c tur e s w h e re t h e own e r/ c ontroll e r o f su c h v e ssels,

v e hicl e s or str u c tur e s has g r a nted p e rmission and the P I C h a s made a s a f

e t y a s s e ss m e nt of the r isk of

op e r a t i n g c loser to t hose obje c ts and d e t e rmin e d that it do e s not pr e s e nt an undue h a z a rd, a nd;

c

. Op e r a t i ons n e a rer to the P I C, V O , op e r a tor t r a in e e s or e ssential p e rsons do not pr e s e nt an undue

h a z a rd to those p e rsons p e r § 91.119 (a ).

16. The UA m a y not be o p e r a ted l e ss t h a n 500 f e e t b e low or less than 2,000 f e e t hori z ontal l y f

r om a

c loud or w h e n vis i bi l i t y is l e ss t h a n 3 st a tu t e m i les f rom the P I C.

17. The UA m a y not op e r a te with i n 5 nm of a n a irpo r t re fer e n c e point a s de n o t e d on a c u r r e nt F A A

publ i shed a e ron a

ut i ca l c h a rt unless a letter of a g r ee ment with that a irpo r t’s man a g e ment is obtain e d, a nd the

op e r a t i o n is condu c ted in a c c o r d a n c e with a N OT A M as r e qui r e d b y t h e USC COA. The letter of a g re e ment

with the a irpo r t m a n a g e ment will be made a v a i l a ble to the A dm i nis t r a tor upon r e qu e st.

18. P rior to e ac h fl i g ht t he P IC sh a ll inspe c t t he U A S to con f irm th a t i t i s in a c ondi t ion sa f e f or fli g ht.

The pr e

- fli g ht i nsp e c t i on will acc ount for a ll disc re p a n c ies, e .g. inop e r a ble c omponents, items, or e quip m e nt,

not a lr e a d y c ov e r e d in t he r e le v a nt s e c t i ons of the op e r a t i n g d o c uments. The P I C s h a ll not op e r a te the U A S

if the i n spe c t i on r e v e a ls a c ondi t i on that a f f e c ts t he sa f

e op e r a t i on of the U AS un t il the n ece ssa r y

m a in t e n a n c e h a s b e e n p e r f o r med a nd the U A S is found to be in a c ondi t ion for sa f e f l i g ht. The g r ound

c ontrol s t a t i o n shall be includ e d in t he preflight ins p ec t i on. All m a in t e n a n c e a nd a l t e r n a t i ons must be

p r op e r l y do c umen t e d in t he U A S r e c o r ds a s r e qui r e d b y USC ’ Op e r a t i ons Man ua l s

.U.S. D e p a rtme n t of T r a n sport a t io n

June 28 th , 2015

P a g e 9

19. USC will c a rr y out i ts m a in t e n a n ce , insp e c t i ons, a nd r e c o rd ke e ping r e quir e ments in a cc o r d a n c e

with t he Op e r a t i ons Ma n u a ls. M a in t e n a n ce , inspe c t i on, a nd a l t e r a t i ons will be not e d in t he U A S rec o r ds,

in c lud i n g to t a l t i m e in se r vic e , d e s c ription of wo r k a c c omp l ished, a nd the si g n a tu r e of the a uthori z e d p e rson

re turni n g the U A S to se r vic e

.

20. A n y U A S that h a s un d e r g one m a in t e n a n c e or a l t e r a t i ons that a f f ec t t h e U A S op e r a t i on or fl i g ht

c h a r a c te r is t ics ( e .g

., r e p l ace m e n t of a fli g ht c ritic a l c om p on e nt) must und e r g o a fun c t i o n a l test fli g ht in

a cc o r d a n c e with USC O p e r a t i ons Man ua l s

. The P I C who c ondu c ts the fun c t i on a l test fli g ht must make a n

e nt r y i n th e U A S a ir c raft r e c o rds of the fli g ht. The r e qui r e men t s a n d p r o ce du r e s f o r a f u n c tion a l test fli g ht a nd

U A S r e c o r d e nt r y shall be includ e d in the USC ’ O p e r a t i ons Man ua l s

.

21. The U A S will be op e r a t e d a nd maintain e d a cc o r d i ng to t he Ma n u f a c tu r e r ' s

Man ua ls and a n y r e quir e d manu fac tu r e r Sa f e t y / Se rvi c e B ul l e t i ns.

22. P rior to t he op e r a t i on, a Miss i on P ac k e t wi l l be c r ea ted in a cc o r d a n c e with t he r e quir e ments on

USC ’ Op e r a t i ons Manu a ls.

23. USC will obtain a n A i r T r a f fic O r gani z a t i on ("AT O ") issu e d Ce r t i fi c a te of W a iver or

A uthori z a t i on, othe r wise known a s a CO A , prior to condu c t i n g a n y op e r a t i ons und e r this G ra nt of

E x e mp t ion. A N OT A M will be issued a s r e quir e d b y the CO A

. All ope ra t i ons will be c ondu c ted in

acc o r d a n c e with a irsp a c e r e quir e ments in the A T O is s u e d COA in c lud i ng c l a ss of a irsp a ce

, a l t i t ude l e v e l a nd

potential tr a nspond e r re quir e ments.

24. All r e quir e d p e rmissions and p e rmits will be obtain e d f r om t e r ritori a l, s t a t e

, c oun t y or c i t y

j u risdictions, including loc a l la w e n f o rce m e nt, fire or ot h e r a ppro p ri a te g o v e rnm e nt a l ag e n c ies.

25. I f the U AS l oses c om m u nic a t i on with t he pi l ot, i t will h a ve the ca p a bi l i t y t o r e turn to a p r e

d e t e rmin e d loc a t i on with i n the op e r a t i on a l a r e a a nd land s a f e l y

.

26. Cont i n g e n c y plans w i l l b e in p l a c e to s a f e l y te r m i n a te f

l i g ht i f t h e re is a lo s s of c om m unic a t i on

b e tw ee n the P I

C a nd the Obs e r v e r

.

27. The U A S will h a ve the c a p a bi l i t y to sa f e l y a bort f

l i g ht i n the ca se o f un p redict e d obst ac les or

e m e r g e n c ie s

.

28. P I

Cs and Obs e rv e rs will h a ve a t le a st a c u r r e nt Class I I I Me d i ca l C e rtifi c a te.

29. P rior to condu c t i ng o p e rat i ons for f i l m i n g , the P I C will h a ve a c c umu l a ted a nd log g e d, in a m a nn e r

c on s is t e nt wi t h 14 C F R § 61.51 ( b ) , a m i ni m um of 200 f l i g ht c y c les a nd 25 ho u rs total t i me a s a U AS

rotor c r a ft pi l ot and a t l ea s t 10 hou r s log g e d a s a U AS p i lot with a simi l a r U AS t y p e

.U.S. D e p a rtme n t of T r a n sport a t io n

June 28 th , 2015

P a g e 10

30. P rior to condu c t i ng o p e rat i ons for f i l m i n g , the P I C will h a ve a c c umu l a ted a nd log g e d, in a m a nn e r

c on s is t e nt wi t h 14 C F R § 61.51 ( b ) , a m i ni m um of 5 4 C F R § 61.51 ( b ) , a m i ni m um o f 10 logged hours a s U A S

pi l ot ope r a t i ng the m a ke a nd model of U A S to be uti l i z e d for op e r a t i ons und e r the e x e mp t ion and th irty tak e

o f fs a nd thirty landi n g in t he p r ec e ding 90 d a y s.

31. Op e r a t i ons shall oc c u r d u r ing d a y t i me V F R Met e o r olo g i c a l C ondi t ions; f l i g hts und e r S p ec i a l

V i sual F l i g h t R ul e s ( " S V F R") sh a ll n o t be c ondu c ted.

32. The UA shall r e main c l e a r a nd y ield the ri g ht of w a y to all o t h e r m a nn e d op e r a t i ons a nd a c t i vi t ies

a t all t i m e s (in c lu d in g

, b ut not l i m i ted to, u l t r a l i ght v e hicl e s, pa r ac hute ac t i vi t ies, p a r a s a i l i n g ac t i vi t ie s , h a ng

g l i d e rs, e tc. )

.

33. U A S Op e r a t i ons und e r Instr u ment F l i g ht R ules, a t n i g ht, or b e y ond V L OS a re p r ohib i ted.

34. The U A s will not be op e r a ted f rom a n e lev a ted pl a tfo r m or mov i ng d e v i ce / v e hicl e

.

35. B e f

o re c ond u c t i ng o p e r a t i ons, the ra dio f re q u e n c y spe c trum used f o r op e r a t i on a nd c ontrol of the

U A w i ll c omp l y with t he F e d e r a l C om m unic a t i ons C o m m i ss i on ( F CC) or other a ppro p r i a te g o v e rnm e nt

ov e rsi g ht a g e n c y r e quir e m e nts.

V. R E G ULATI O NS F R O M W H ICH E X EM P T I O N IS R E Q UES TE D

The Fe d e r a l Aviation A c t e x p re ss l y g r a nts t he F A A the a uthori t y to i ssue e x e mp t ions. This statuto r y

a uthori t y

, b y i t s te r ms, i n c ludes e x e mp t ing c iv i l air c r a ft, a s t he te r m i s de f ined und e r § 40101 of the A c t

, including U A S s, f

r om i t s sa fe t y r e g u l a t i ons a nd m i ni m um s t a nd a rds wh e n the A dm i nis t r a tor d ec ides a

r e qu e sted e x e mp t ion i s in t he publ i c in t e r e st

. 3

USC s e e ks an e x e mp t ion f r om sev e r a l i nte r r e la t e d pr o vis i ons of T i t le 14 of the Code of Fe d e r a l

Re g ula t ions ( "14 C

. F .R " ) Pa r ts 21, 45, 61 a nd 91 f or pur p o s e s o f c ondu c t i n g the r e qu e sted o p e r a t i ons us i ng a

U A S

. L is t e d b e low a r e : ( 1) the s p ec ific s ec t i o ns of 14 C. F .R f or whi c h e x e mp t ion i s sou g ht, and ( 2) the

op e r a t i n g p r o ce du r e s and s a fe g u a r d s that P e t i t i o n e r h a s e stablished whi c h will e n sure a le v e l of s a f e t y b e t t e r

th a n or e qu a l t o the r u l e s f r om which e x e mp t ion i s sou g ht

. 4

3 49 U.S. C . § 44701 ( f) (a

u thori z ing the g ra nt of e x e mp t ions f r om r e quir e me n ts of r e g ulations p re s c rib e d

p u rsu a nt t o Se c t i ons 44701( a ) a nd (b) a nd S ec t i ons 44702

- 44716 )

.

4 14 C. F .R § 11.81 (e ), w h ich re quir e s a p e t i t i on f o r e x e mp t ion t o inclu d e:

The r e a sons w h y gr a nt i n g the e x e mp t ion would not a dv e rs e l y a f f e c t s a f e t y

, or how the e x e mp t ion

would p r ovide a lev e l o f s a f e t y a t l e a st e qu a l to that p r ovided b y t h e rule f rom w hich y ou s ee k

e x e mp t ion.U.S. D e p a rtme n t of T r a n sport a t io n

June 28 th , 2015

P a g e 11

UNMANNED AIRCRAFT SYSTEM

A. 14 C. F

. R. P a r t 21, Subp a r t H

– Ai r w o r thi n e ss C er ti f ica te s a n d 14 C

. F

. R. § 91.203 ( a ) (1)

The F A A h a s s t a ted th a t no e x e mp t ion i s ne e d e d f r om t his s ec t i on if a f

ind i ng is m a de und e r the

R e f o rm Ac t t h a t t he U A S sel ec ted p r ov i d e s an e quival e nt l e v e l of sa fe t y wh e n c ompa re d to a i r c r a ft no r mal l y

used f o r the same a ppl i ca t i on. Th e se c rite r i a a re m e t, and the re fo r e no e x e mp t ion i s ne e d e d

. 5 I f, ho we v e r,

t h e F AA d e te r m i n e s that t h e re a re some c h a ra c te r is t ics of the c h o s e n U A S that fa il to m ee t the re quir e m e nts

of the R e fo r m A c t, an e x e mp t ion i s r e qu e sted.

Eq u ival e n t Le v e l of Sa

f e ty

USC ’ use o f the DJI PHANTOM II & S900 i s s af e w h e n taki n g in t o acc ount their si z e , w e i g ht, sp ee d,

a nd op e r a t i on a l c a p a bi l i t y

. A s set f o r th i n the d e s c ript i on of pro p osed op e r a t i ons in S ec t i on I V ( A),

the DJI PHANTOM II & S900 w e i g hs l e ss t h a n 5 5 pou n ds, in c lud i ng p a y load a n d will not be f

lown a t

a g r ound sp ee d in e x ce ss of 50 knots. UAS i s a lso e quipped w i t h s a f e t y fe a tur e s that will allow

P e t i t i on e r to op e r a te the U A S sa f e l y a ft e r e x p e ri e n c e c e rt a in i n

- fli g ht conti n g e n c ies or f a i l u re s

. 6 7

Addit i on a l l y , the U ASs c a rr y n e i t h e r pilots nor p a sseng e rs, c a rr y no e x plo s ive m a te r ials or fl a m m a ble

liqu i d fu e ls, a nd op e r a te e x c lus i v e l y w i t hin t he p a r a met e rs st a t e d in USC ' s Op e r a t i ons Man u a ls.

5 S e e G r a nt of E x e mp t ion No. 11062 to Astr a e us A e r i a l ( F A A

- 201 4

- 0352 a t p g s. 1 3

- 14, 2 2 ).

6 S e e e .g

., G r a nt of E x e mp t ion No. 11184 to L o w Count r y RC, Corp. (F A A

- 2014

- 0803 a t p g . 3):

" The [ D J I S 1000] h a s the ca p a bi l i t y to op e r a te s a f e l y a f t e r e x p e ri e n c i n g ce r tain i n

- fli g ht

c ont i n g e n c ies o r f

a i l u re s a nd uses a n a ut o

- pi l ot s y stem to mainta i n U A S stabili t y a nd c ontrol. The

U A S is a lso a ble to r e spond to a loss of g lobal pos i t i oning s y stem ( G PS ) or a los t

- l i nk e v e nt with a

p r e

- c oo r dinat e d, p re dict a ble, a u t omat e d fli g ht man e u v e r, a nd m a nu a l fli g ht c ontrol fun c t i on a l i t y a s

a b a c kup. Th e s e s a f

e t y f e a tu r e s p r ovide a n e q u ival e nt lev e l of s a f e t y c ompa re d to a mann e d a ir c r a ft

p e r f o r m i n g a si m i l a r oper a t i on."

7 S e e e .g

., G r a nt of E x e mp t ion No. 11184 to VD O S Glob a l, LL C. ( F A A

- 2 0 1 4

- 0382 a t p g s. 4

- 5 ) :

" The DJI PHANTOM II & S900 with upgrades ca n be o p e r a ted e nt i r e l y b y a touc h

- s c r ee n, ma p

b a s e d i nte r fa ce

. This me a ns the op e r a tor on l y n e e ds to c om m a nd the s y stem w h e re to g o, a nd the

s y stem do e s all the f

l y i n g for the op e r a t o r. T he DJI PHANTOM II & S900 c a n b e op e r a ted in bo t h

s e mi a nd ful l y a utono m ous fli g ht mode s

. I n a d di t ion, the DJI PHANTOM II & S900 with upgrades

comes with pre

- programmed no f l y z on e s the UAS c a nnot e n t e r a r ea s d ee med uns a fe or

un n ec e ssa r y to f

l y o v e r. The p e t i t i on e r stat e s fu r ther t h a t the U A S h a s bui lt

- in in t e l l i g e nt f a ult h a ndl i ng

whi c h a l l ows the DJI PHANTOM II & S900 to d e te c t a s y stem f a ult while in t h e a i r a n d a uto m a t i ca l l y

f l y b ac k to i t s tak e o f

f lo c a t i on a nd land. Fa ul t s that ca n be d e t e c t e d includ e : lo s s of c om m u nic a t i on;

e x cee ding p re

- s e t wind thr e sholds; and low b a t ter y le v e ls.U.S. D e p a rtme n t of T r a n sport a t io n

June 28 th , 2015

P a g e 12

Op e r a t i ons c ond u c ted u n d e r this e x e m pt i on will b e c lose l y c ontroll e d a nd mon i tor e d b y the op e r a tor

a nd will be c ondu c ted in c omp l ian c e with l o ca l pub l ic s a f e t y r e quir e ments, to p r ovide s ec u r i t y f o r the a r e a of

o p e r a t i on. USC will a lso provide the F A A w i t h a dv a n c e not i c e of a ll op e r a t i o n s via N O TAMs a s r e quir e d b y

the a ppl i ca ble CO A

. In a ll ca s e s, op e r a t i on of the DJI PHANTOM II & S900 und e r the pro p osed c ondi t ions

will be a t l ea st as s a f

e a s, or s a f

e r th a n, c onv e nt i on a l r otor c r a ft o p e r a t i n g with a n a irwo r th i n e ss c e rtifi ca t e

.

L a st l y , the U ASs do not ne e d a m e a ns to c om m unic a te w i t h other a i r c r a ft o r A TC, b eca use tho s e

ca p a bi l i t ies w i l l be poss e ssed b y t h e P I C a nd Obs e r v e r, w ho a re not onbo a rd the U A S

. 8 I n a ddi t ion, no

s e ns e

- a nd

- a void t ec hnol o g y is ne ce ssa r y for the U ASs b eca use t h e y will be op e r a t e d a t all t i m e s in V F R

c ondi t ions and w i th i n V L OS of the P I C a n d Op e r a tor

. 9

B

. 14 C. F

. R. P a r t 27 Ai r w o r thi n e ss S tan d a r d s: N o r m al Ca te g o r y Ro t o r c r a f t

Tit l e 14 C. F .R. P a rt 27 s e ts fo r th t he pro c e d u r a l r e quir e ments for a i r wo r th i n e ss ce rtifi c a t i on of

norm a l c a te g o r y roto r c r a ft. To the e x tent that USC ' s sm a ll U A S s would othe r wise r e q uire

c e rtifi c a t i on und e r Pa r t 27, P e t i t i on e r s ee ks an e x e mp t ion f r om P a rt 2 7 ' s airworthiness standards for

the same reasons identified in the request for exemption from 14 C.F.R. Part 21, Subpart H, supra

.

{ c ont i nu e d from pre v ious pag e }

7 S e e e .g

., G r a nt of E x e mp t ion No. 11184 to VD O S Glob a l, LL C. ( F A A

- 2 0 1 4

- 0382 a t p g s. 4

- 5 ) :

All fli g ht op e r a t i ons a re g lobal posit i oning s y st e m ( G PS ) c ontroll e d, m a king the s y stem ea s y to

n a v i g a te. At a n y point if t h e op e r a t or is not e x pl i c i t l y c om m a nding the s y stem t o move, the s y stem

a uto m a t i ca l l y holds i t s G P S posi t ion. The fli g ht c ontrol s y s t e m e mp l o y s n ot on l y GPS posit i oning but

a v a ri e t y of s e nsors i n c lud i ng sona r

, b a rom e tr i c p re ssu r e

, temp e r a tu r e

, wind speed a nd othe r s to e nsure

stabi li ty s o long a s wind thr e s h olds a re not e x cee d e d. Also a fli g ht t e rmin a t i on l i nk

– to p re v e nt a ' f l y

a w a y ' or other po t e nt i a l l y d a n g e rous situ a t i on

– is av a i l a ble to the op e r a tor

. "

8 S e e G r a nt of E x e mp t ion No. 11062 to Astr a e us A e ri a l ( F A A

- 201 4

- 0352 a t p g

. 13).

9 Id. a irwo r th i n e ss s t a nd a rds f or the s a me r ea sons i d e n t ified in t he re qu e st f o r e x e mp t ion f

r om 14

C. F .R. P a rt 21, Subp a rt H, supra

.U.S. D e p a rtme n t of T r a n sport a t io n

June 28 th , 2015

P a g e 13

C. 14 C. F

. R. §§ 91.9 ( c ), 45

. 23(b) and 45.27 ( a ) : A ir c r a f t M a r k i n g a n d I d e n ti f

ica t ion R e q u ir eme n ts

USC s e e ks an e x e mp t ion f r om t he a ir c r a ft m a r k ing a nd identifi c a t i on r e q uir e ments c ontain e d in 14

C. F .R. § § 91.9 (c ), 45

. 23( b ) a nd 4 5.27 (a ).

● 14 C. F .R. § 91.9 (c ), Civ i l Air c r a ft F l i g ht M a nu a l, Ma r king a nd P la c a rd re q uir e ments, p r ovides th a t:

No p e rson m a y op e r a te a U.S

. - re g is t e r e d c iv i l aircr a ft unless that a ir c r a ft is identifi e d in

a cc o r d a n c e with Pa rt 45 of th i s ch a pte r

.

● 14 C. F .R. § 45.23 ( b ) , M a rkin g s of t h e Aircr a ft, st a tes:

W h e n ma r ks include only the Roman c a pi t a l lett e r " N " a nd the re g is tr a t i on number is

d i spl a y e d on l i m i ted, re strict e d or li g h t

- sport ca t e g o r y a i r c raft or e x p e rime n tal or

p r ovis i o n a l l y c e rtifi ca ted a i r c raf t

, the op e r a tor must a lso disp la y o n that a ir c raft n ea r e a c h

e ntr a n c e to the ca bin, c o c kpi t

, or pi l ot station, in lette r s not less than 2 inch e s nor mo r e

than 6 inch e s h i g h, the wo r ds " l i m i ted," " r e stric t e d," " l i g h t

- sp o rt, " e x p e r i ment a l," or

" p rovisional," a s ap p l i ca ble.

● 14 C. F .R. § 45.27 (a ), Ro t o rc raft, stat e s:

E ac h o p e r a tor of a rot o rcr a ft must disp l a y on that r otor c raft hori z ontal l y on both sur f a ce s o f

the c a bin, fus e l a g e

, boom, o r ta i l the ma r ks r e quir e d b y § 45.23.

I n a pr e v i ous G r a nt of E x e mp t ion, t he F AA d e t e r m i n e d that e x e mp t ion f r om t h e se r e quir e ments w a s

w a r ra n ted p r ovided th a t t he a i r c r a ft " h a ve i d e nt i fi ca t i on ( N

- Numb e r ) m a rki n g s in a cc o r d a n c e with 14 C

. F .R

P a rt 45, Subp a rt C i f the ma r kin g s a re a s la r ge a s pr ac t ic a ble

. " 10

Eq u ival e n t Le v e l of Sa

f e ty

All UA f lown b y USC will b ea r N

- numb e r m a r kin g s that a r e a s l a r g e a s p rac t i ca b l e in acc o r d a n c e

with 14 C

. F

. R. P a rt 45, Subp a rt C

. 11

1 0 F AA D o c k e t No. F AA

- 2 014

- 0352.

1 1 S ee

, e .g., F AA D o c k e t N o. F AA

- 201 4

- 0352, a t 1 4

.U.S. D e p a rtme n t of T r a n sport a t io n

June 28 th , 2015

P a g e 14

D. 14 C. F

. R. § 91.405 ( a )

, 9 1.407 ( a ) (1 ) , 91.40 9 (a ) (1) a n d ( 2 ) ; 91. 4 17(a) a n d ( b ): M ai n t e n a n c e

I n s p ec tions

USC s e e ks an e x e mp t ion f r om t he mainten a n c e inspe c t i on r e quir e ments c ontain e d in

14 C. F .R. § 91.405 (a ), 9 1.407 (a ) ( 1 ), 91

. 409(a) ( 2 ) ; 91.417( a ) a nd (b ) . Th e s e r e g ulations spe c i f y mainten a n c e

a nd insp ec t i on st a nd a rds in r e f e r e n c e to 14 C

. F .R. P a rt 43. S ee

, e .g., 14 C. F .R. § 91.405 (a ) ( stati n g that ea c h

own e r o r op e r a tor of a n a ir c r a ft " sh a ll h a ve t h e a ir c r a ft insp e c ted a s p re s c rib e d in sub p a rt E o f this pa r t and

sh a ll b e t w ee n r e qu i r e d insp ec t i ons ...h a ve disc r e p a n c i e s r e p a i r e d a s p r e s c rib e d in p a rt 43 of th i s ch a pt e r" )

.

An e x e mp t ion f

r om t h e se r e g ulations is n ee d e d b eca u s e P a rt 43 a nd these se c t i ons on l y a p p l y to ai r c r a ft with

an a i r wo r th i n e ss c e rtifi c a te, whi c h the U AS t o be op e r a ted und e r this g r a nt of e x e mp t ion wi l l not h a v e

.

Eq u ival e n t Le v e l of Sa

f e ty

An e quival e nt l e v e l of s a f e t y will be ac hie v e d b ec a use m a in t e n a n c e a nd in s p ec t i ons will be p e r f o rm e d

in a c c o r d a n c e with t he Man u f ac tu r e r ' s Manu a l a nd a n y r e q u ir e d manu f a c tur e r S a f

e t y o r Se r vi c e B ul l e t i ns.

F u r the r

, a s r e qui r e d b y USC ’ O p e r a t i ons Man ua l s, the P I C will c ondu c t a p r e

- fl i g ht i nspe c t i on of the U AS

and a ll a ssoci a ted e quip m e nt t o acc ount f o r a ll disc re p a n c ies a nd/or ino p e r a ble c omponents. Ma i nten a n c e

will be p e r f

o rm e d a nd v e r i fi e d to a ddr e ss a n y c ondi t ions po t e nt i a l l y a f f e c t i n g s a fe o p e r a t i on of the U AS and

no fli g hts will o cc ur unless, a nd unt il

, a ll f l i g h t c r i t ic a l compon e nts of t he U A S h a ve b ee n fo u nd to be

a irwo r t h y a nd in a c ondi t ion sa f e f o r o p e r a t i on. A f

u n c t i on a l t e st fl i g ht wi l l be c ondu c t e d f ol l owing the

r e pla c e ment of a n y fli g h t

- c ritic a l compon e nts. As r e quir e d b y USC ’ O p e r a t i ons Manu a l s, the P I C who

c ond u c ts t he f

u n c t i on a l t e st fl i g ht wi l l m a ke a n e nt r y in t he U A S a ir c r a ft r e c o r ds of the fli g ht.

USC ’ O p e r a t i ons M a nu a l also in c ludes re qu i r e ments to follow the m a n u fac tu r e r ’ s U A S

a ir c r a ft/compon e nt, mainten a n ce , o v e rh a ul, r e pla ce m e nt, i nspe c t i on, a nd l i fe l i m i t r e quir e ments f o r the

f ol l owing a ppl ic a ble c omp o n e nts: pow e rt ra in s y stem ( pow e rpl a nt), p r op e l l e rs, a vion i c s a nd c ontrol sur fa c e s

(in c lud i n g a i le rons/ e levons ) , str u c tur e s & a ir f r a me, ca me r a s y s t e m, el ec tr i ca l s y stems (in c lud i n g b a t te ri e s),

g round c on t rol station, ha z a rd ac c e ssori e s, and s p a re p a rts. F u r the r

, USC ’ O p e r a t i ons Manu a l s a lso i n c ludes

p r o c e dur e s to do c ument a nd maintain a rec o r d o f the U A S main t e n a n c e , pr e v e ntative m a i nten a n ce

,

a l t e r a t i ons, status of re pla c e ment /o v e rh a ul compon e nt p a rts, a nd the total t i me in s e rv i c e of the U ASs us e d

und e r this G ra nt of E x e mp t ion. As a whol e , the m a in t e n a n c e a nd insp ec t i o n pr oce du r e s r e qu i r e d in USC ’

Op e r a t i ons Man ua l s e nsure t h a t an e quival e nt or hi g h e r l e v e l of s a f e t y will be ac hiev e d.U.S. D e p a rtme n t of T r a n sport a t io n

June 28 th , 2015

P a g e 15

P I L O T

- I N

- C O MM AND O F T H E UAS

E

. 14 C. F

. R. § 61.113: P r i vate P i l ot P r iv i leg e s a n d Li m ita t io n s

USC s e e ks e x e mp t ion f

r om 14 C F R § 61.113, w h ich re stricts priv a t e pi l ot c e rtifi ca te holde r s f r om

f l y i n g a i r c r a ft f

or c om p e nsation or h ir e

, a nd would a lso r e quire a s e c ond c lass medi ca l c e rtifi ca te. T h e

purp o se of P a rt 61 is t o e nsure that the skill and c ompet e n c y of a n y P I C mat c h e s the a irs p ac e in whi c h the

P I C will be o p e r a t i n g

, a s w e ll a s r e quir i ng c e rtifi c a t i ons if the p r ivate pi l ot i s c a r r y i n g p a sse n g e rs o r c ar g o for

hi re

. I n th i s c a s e

, while the U A S s will be op e r a ted a s pa r t of a c o m me rc ial op e r a t i on, it ca r r i e s neither

p a s s e n g e rs n o r ca r g o. I n t h e G r a nt of E x e mp t ion t o Astr ae us A e ri a l 12 , the F AA d e t e r m ined th a t t he unique

c h ar ac te r is t ics of U AS op e r a t i on outside of c on t roll e d a irsp a c e did not w a r ra nt t he a ddi t ion cost a nd

r e strictions a t t e nd a nt wi t h r e quiri n g a the P I C to ha v e a Co m me rc ial P i l ot C e rtifi ca te a nd C l a ss II Me d i c a l

C e rtifi ca te. T he ful f

i l l m e nt of the a ddi t ional re q u ir e ments for a p riv a te pi l ot t o b ec ome qu a l i fi e d a s a

c om m e r c ial pi l ot would not le a d to a n y a ddi t ional s a f e t y b e n e fits wh e n U A S op e r a t i ons a r e invo l v e d.

Eq u ivale n t Le v e l of Sa

f e ty

The re strictions USC h a s pl ace d on i t s U A S o p e r a t i ons m ee t or e x cee d t he re strictions si m i l a r l y

i m posed on Astr ae us A e ri a l. USC w i ll op e r a te on p r iva t e pro p e r t y a w a y f r om p e rsons a nd p r o p e r t y not

invo l v e d in t he op e r a t i o n

. USC will a lso obta i n a n A T O issued COA prior to condu c t i n g a n y o p e r a t i ons

und e r this G ra nt of E x e mp t ion. All op e r a t i ons will be c ondu c ted in a cc o r d a n c e with ai r spa c e r e qui r e me n ts i n

the A TO issu e d COA in c lud i ng c l a ss of a irsp a c e

, a l t i t ude lev e l a n d pote n t i a l t r a nspond e r r e quir e ments. A

N O T A M will also be is s u e d a s r e quir e d b y the a ppl i ca b l e CO A

.

I n a ddi t ion t o these f

l i g ht re strictions, USC will f u r ther e ns u re s a fe o p e rat i on b y r e quiri n g that a n y

P I C be thorou g h l y v e rs e d not o n l y in ai r sp a c e a nd c o m mun i ca t i on is s u e s p e rt a in i ng to a ll a ir c r a ft o p e r a tors

but also in the u nique a spe c ts of U A S f l i g ht. As set f

o rth in the O p e r a t i ons Man u a l s, pi l ots will h a ve

e x p e ri e n c e not on l y in U AS ope r a t i ons g e n e r a l l y but h a ve l o g g e d fl i g ht t i m e in t he spe c ific m a k e a nd model

us e d for the op e r a t ions b e fo r e th e y a re p e rmit t e d to pa r t i c ipate i n c om m e r c ial fl i g hts on b e h a lf of USC

. T h e

p i l ot qualifi ca t i on, tr a in i n g

, a nd c u r r e n c y requir e ments in the O p e r a t i ons Manu a ls ensu r e t h a t USC ’ pilo t s a r e

c ompet e nt and p r o fi c ient in t he U A S th e y a re o p e r a t i n g

. USC ’ tr a in i n g a nd qu a l i fi ca t i on r e quir e ments a re

c onsistent with those c ontain e d in prior F AA Se c t i on 333 G ra nts of E x e mp t io n

, a nd will pro v ide a h i g h e r

lev e l of c ompet e n c y a nd pro f ici e n c y for i t s pilo t s and w i ll e nsure a t le a st an e quival e nt l e v e l of sa fe t y

.

1 2 E x e mp t ion No. 11062 ( F AA D o c k e t No. F AA

- 2 014

- 0352 )

.U.S. D e p a rtme n t of T r a n sport a t io n

June 28 th , 2015

P a g e 16

O P E RAT I NG P ARA METE RS O F T H E UAS

F

. 14 C. F

. R. § 91.7 ( a ) : Civil Ai rcr a f t A ir w o r thi n e ss

Although t

h e re will be no a irwo r th i n e ss c e rtifi c a te issued f or the U A S s, USC s e e ks a n e x e mp t ion

f r om 14 C

. F .R. § 91.7 (a ), whi c h r e q uir e s that a c iv i l aircr a ft be in ai r wo r t h y c ondi t ion t o be op e r a ted. The

F A A h a s s t a ted th a t no e x e mp t ion i s r e quir e d for 14 C. F .R. § 91.7 (a ) to the e x tent that the re quir e m e nts of

P a rt 21 a re w a ived or f

ound inapplic a ble

. 13 A cc o r di n g l y

, P e t i t i on e r r e qu e sts that the re qui r e m e nts for §

91.7 ( a ) be t r ea t e d in a cc o rd a n c e with S ec t i on V ( A )

, supra.

G

. 14 C. F

. R. § 91.9 ( b ) ( 2 ) : Civil Ai rcr a f t F l i g h t Ma nu al i n t h e Ai rcr a f t and 14

C. F

. R. § 91.203 ( a) a n d (b ): Ca rr yi n g Civil Ai r c r a f t Cer ti f ic a tion a n d R e gist r a t ion

Tit l e 14 C. F .R. § 91.9 ( b ) (2) a nd § 91.203 ( a ) a nd ( b) re quire t h e op e r a tor to ca rr y a irwo r th i n e ss

docum e nts a nd other a i r c raft m a nu a l s onbo a rd the a i r c raft. Pursu a nt t o 14 C. F .R. § 91.9 ( b ) (2 ) :

(b) No p e rson m a y op e r a te a U.S

. - r e g is t e r e d c iv i l air c r a ft

–

(2) F o r w hich a n Airpl a ne or Rotor c r a ft F l i g ht M a nu a l i s r e quir e d b y § 21

. 5 of th i s ch a pte r , unless

the r e is av a i l a ble in the a ir c r a ft a c u rr e nt app r o v e d Ai rp l a ne or Rotor c r a ft F l i g ht M a n u a l, app r ov e d

man u a l ma te r ial, ma r ki n g s, a nd pl a c a rds, or a n y c omb i n a t i on the re o f

.

P u r suant to 14 C

. F .R. § 91.203 (a ) a nd (b ) :

( a ) E x ce pt a s p r ovided in § 91.715, no p e rson m a y op e r a te a c iv i l a ir c r a ft u n less it h a s within i t t he

f ol l owin g :

(1) An a p p rop r iate a nd c u rr e nt ai r w o rthin e ss c e rtifi c a te...

(b) No p e rson m a y o p e r a te a c iv i l a ir c r a ft unl e ss the a irwo r th i n e ss ce r t ific a te r e quir e d b y p a rag ra ph

(a ) of th i s s ec t i on or a sp e c ial fli g ht a uth o ri z a t i on i ssued und e r § 91.715 is disp l a y e d a t t h e c a bin or

c o c kpit e ntr a n c e so that it is l e g ib l e to p a sse n g e rs o r c r e w.

1 3 S e e id. a t 13

- 14, 22U.S. D e p a rtme n t of T r a n sport a t io n

June 28 th , 2015

P a g e 17

Giv e n the small s iz e a nd c onfi g u r a t i on of the U ASs, it would be i m poss i ble to ke e p a irwo r th i n e ss

docum e nts a nd other a i r c raft m a nu a l s on bo a rd the U A S b e c a use th e re is s i m p l y no room a nd the U AS has

n o ca bin or c o c kpi t

.

Eq u ival e n t Le v e l of S a

f e ty

I n a n F AA O f

fi c e of Ch i e f Couns e l ' s Opinion d a ted A u g ust 8, 2014, a nd p r e p a r e d b y D ea n E.

G ri f fith, Atto r n e y

, A G C

- 220, it w a s a c k n owl e dg e d that the intent of 14 C. F .R. 91.9 ( b) a nd 91.203 (a ) a nd

( b ) is met if the pi l ot of the u nmann e d a ir c r a ft h a s ac c e ss t o the U AS fli g ht manu a l, r e g is t r a t i on c e rtifi ca te,

a nd ot h e r r e quir e d do c uments f r om t he g r o und c ontrol s t a t i on f r om which he o r she is o p e r a t i n g the

a i r c raft

. 1 4 As th i s F AA O f f i c e of Chief Couns e l Opin i on c la r ifies, the in t e nt of the r ule is to e nsure the

pilot h a s a c c e ss t o these k e y d o c uments during fli g ht. Th e r e fo r e

, a n e q u ival e nt l e v e l of s a f e t y will be

ac hie v e d b y e nsuri n g that the pilot h a s ac c e ss t o the do c uments a t t he gro u nd c ontrol s t a t ion f r om which he

or s h e is p i lo t ing the U AS.

H. 14 C. F

. R. § 91.103: P ref l i g h t Ac tion

USC s e e ks an e x e mp t ion f r om 14 C

. F .R. § 91.103, whi c h r e qui r e s a P I C to be c ome f a m i l i a r w i t h

sp ec ific in f

o r mation be f

o r e e a c h fl i ght, i n c lud i ng info r mation c ontain e d in t he F A A

- a ppro ve d F l i g ht

Manu a l on board the a ir c raft. W hi l e the P I C will be fa m i l i a r w i t h a ll info r mation ne ce s s a r y to s a f e l y

c ond u c t t he f

l i g ht, a n e x e mp t ion i s r e qu e sted to the e x tent that a n F A A

- a ppro ve d F l i g ht Manu a l i s r e quir e d.

Eq u ival e n t Le v e l of Sa

f e ty

An e quival e nt l e v e l of s a f e t y w i ll be pro v ided b y f

ol l owing the USC ’ O p e r a t i ons Man ua ls a nd the

Man u fa c tur e r ' s Man u a l . The P IC will p e r f o r m a s e r i e s of c h ec kl i sts d e s i g n e d to identi f y a n y d e f ec ts or

i n op e r a ble c omponents in acc o r d a n c e with t he USC ’ Op e r a t i ons Man ua ls, including c h e c kl i sts c ov e ring

P r e

- F l i g h t

, L a u n c h, L a ndi n g

, a nd P os t

- F l i g ht pr o ce du r e s. The P I C will a lso be r e q uir e d to r e view w ea t h e r,

fli g ht r e qui r e ments, b a t ter y c h a r g e , landi n g a nd tak e o f f distan c e , UA p e r f

o r man c e d a ta, a nd c ont i n g e n c y

landi n g a r ea s

—

b e f o r e i n i t iation of fli g ht. USC ’ Op e r a t i ons Man ua ls a nd the M a nuf a c tu r e r ' s Man u a l will

be k e pt at the g round c ontrol s t a t i on a nd will be a c ce ss i ble to the P I C a t a ll t i mes w hi l e op e r a t i ng the U AS.

I. 14 C. F

. R. § 91.109 ( a ) : F l i g h t Inst r u c tion

1 4 Memo ra ndum f

r om M ar k B u r y

, F AA Assistant C hief Couns e l for I nt e rn a t i on a l L a w, L e g is l a t i on a nd

R e g u l a t i o n, to J ohn Dun ca n, F A A F l i g ht S tand a rds Se r v i c e ( A u g . 8, 201 4 ); s e e also Do c k e t No. F A A

2 0 1 4

- 0352 a t 16

- 18.U.S. D e p a rtme n t of T r a n sport a t io n

June 28 th , 2015

P a g e 18

USC s e e ks an e x e mp t ion f r om 14 C

. F .R. § 91.109 (a ), w hich p rovid e s in p e rtine n t pa r t that " [ n ] o

p e rson m a y o p e r a te a c iv i l aircr a ft ( e x c e pt a m a nn e d f r e e b a l l oon) that is b e ing used for f l i g ht i nstru c t i on

unl e ss t h a t air c raft h a s ful l y f un c t i oning du a l cont r ols

. " U A S s and r e mo t e l y pi l oted a ir c raft, b y t h e ir d e si g n,

do not ha v e f

un c t ional du a l cont r ols. I nst e a d, fli g ht con t rol is acc omp l ished thro u g h t h e use o f a d e vice

t h a t c o m m unic a tes w i t h the a ir c r a ft via r a dio c om m unic a t i ons. A cc o r din g l y

, a n e x e mp t ion wi l l be r e quir e d

for the f l i g h t i nstru c t i on r e quir e ments of 14 C

. F .R. § 91.109 (a ).

Eq u ival e n t Le v e l of Sa

f e ty

Giv e n the si z e a nd sp ee d of the U A S s that USC in t e nds to us e

, a n e quiv a lent lev e l of s a fe tr a in i n g c a n

sti l l be p e r f

o r med without du a l c ontrols be ca u s e no pi l ot or p a sse n g e rs a r e a bo a rd the U AS, and a s r e quir e d

b y the USC ’ Op e r a t i ons Man u a l s, a ll p e rsons w i l l be a s a fe dis t a n c e a w a y in t he e v e nt t h a t t he U A S

e x p e ri e n ce s a n y dif

f i c ul t ies du r ing f

l i g ht i nstru c t i on. Mor e ov e r, a s r e qui r e d b y the USC ’ O p e r a t i ons

Man ua ls, a ll f

l i g ht tr a in i ng will be c ond u c ted in cont r ol l e d a nd st e rile environme n t. As a whol e

, the s a f e t y

pr o ce du r e s p r ovided f

or in USC ’ O p e r a t i ons M a nu a l s e nsure that the p r o posed U A S op e r a t i ons p r ovide a n

e quival e nt or hi g h e r l e v e l of s a f e t y th a n that p r ovided b y t h e f l i g ht i nstru c t i on re g ulatio n s.

J. 14 C. F

. R. § 91.119(c): M i n i m u m S a f e Alti t ud e s

USC r e qu e sts a n e x e mp t ion f r om t he m i ni m u m sa f

e a l t i t ude re qu i r e m e nts of 14 C. F .R. § 91.119( c )

. 1 5

S ec t i on 91.119 p re s c rib e s t h e m i ni m um sa f e a l t i t ud e s und e r whi c h a ir c r a ft m a y not ope ra te, in c lud i n g 5 0 0

f e e t abo v e the su r f

a c e a nd a w a y f

rom a n y p e rson, v e ssel, v e hicl e , or stru c ture in non

- c o n g e st e d a r e a s. S e e 14

C

. F .R. § 91.119 (c ). S ec t i on 91.1 1 9 ( d) a l l ows f or a h e l i c opter to op e r a te a t le ss t h a n those m i ni m um a l t i tudes

w h e n it ca n be o p e r a ted " without h a z a rd to p e rsons or pro p e r t y on t h e sur f ace

, " p ro v ided th a t " e ac h p e rson

o p e r a t i n g the h e l i c opt e r c omp l ies w i t h a n y rout e s or a l t i t ud e s spe c ifi c a l l y p re s c rib e d for h e l i c op t e rs b y the

F A A

. "

An e x e mp t ion i s r e quir e d b eca use t h e pro p osed U AS ope ra t i ons will norm a l l y n e e d to o cc ur b e low

4 00 fe e t A G L

. I n c ir c ums t a n ce s wh e re the U AS i s used to insp ec t a stru c tu r e whose h e i g ht e x c e e ds 400 f e e t

A G L , the U AS wi l l not be op e r a t e d more t h a n 100 fee t abo v e the h i g h e st point on the stru c tur e

, a n d with i n

50 fee t hori z ontal l y of the str u c tur e

. A d di t ional l y , d u e the n a ture of the p ropos e d o p e r a t i ons, the P i l ot and/or

Obs e rvers ( s) m a y n ee d t o be less than 500 f e e t a w a y f

rom the U AS.

1 5 R e l i e f f rom § 91.119 ( a ) will not be n ece ssa r y b e c a use Petitioner will be a b le to p e r f o r m an e me r g e n c y

landi n g without undue h a z a rd to p e rs o ns or p r op e r t y on the g r o und in t he e v e nt of a f a i l u re

. P e t i t i on e r ' s

pro p osed U A S op e r a t i ons wi l l not o cc ur ov e r c o n g e st e d a r e a s, a nd the r e fo r e a n e x e mp t ion f r om § 91.119(b)

will not be n e c e ssa r y

. S e e e .g ., G r a nt of Ex e mp t ion No. 11157 to S lu g w e a r, I n c ., d b a L i k e on a tr e e A e ri a l

(FA A

- 2 014

- 0534 a t 15)U.S. D e p a rtme n t of T r a n sport a t io n

June 28 th , 2015

P a g e 19

Eq u ival e n t Le v e l of Sa

f e ty

Compa re d to fli g ht op e rat i ons with roto rc r a ft w e i ghing f a r mo r e than t h e ma x i m um w e i g hts propo s e d

h e r e in, a nd g i v e n the l ac k o f f l a m m a ble f

u e l wi t h the U A S s, a n y r isk a ssoci a ted w i t h these o p e r a t i ons is f a r

l e ss t h a n t h ose th a t pr e s e nt l y e x ist with conv e nt i on a l a ir c r a ft. A n e quiva l e nt l e v e l of s a f e t y will be ac h iev e d

g iven the si z e , w e i g ht, and s p ee d of the U A S s, a s w e ll the c ontr o l l e d loc a t i on wh e re t h e o p e r a t i ons will

oc c u r

. I n o r d e r to a void a n y risk to m a nn e d a ir c r a ft, f l i g ht op e r a t i ons will be re stri c ted to 400 fee t A G L o r

b e lo w , or w h e n inspe c t i ng a str u c ture w h ose he i g ht e x cee ds 400 f ee t A G L , with i n 100 f

e e t a bove the h i g h e st

point on that stru c ture a n d 50 fee t hori z ontal l y of t he stru c tur e

.

As s e t fo r th i n the Op e r a t ions Man ua ls, the U ASs will be op e r a ted in a r e st r ict e d a re a

, a nd a ll f l i g hts

will be op e r a ted a t a l a te ra l d i sta n c e of a t l ea st 500 f e e t f r om a n y non p a rticip a t i n g p e rsons, unl e ss t h a t pe r s o n

is i n a posit i on wh e re he or she is s hield e d f rom the U AS and a n y poss i ble d e b r is r e sul t ing f r om UAS f

a i l u re

.

As r e quir e d b y t h e Op e r a t i ons Man ua ls, f l i g hts will be te r m i n a ted if a nonp a r t i c ipating p e rson with i n 500 fee t

of the U A S le a v e s a shi e lded position. F u r the r

, U A S op e r a t i ons will oc c ur a t l ea st 500 fe e t a w a y f rom

v e hicl e s o r stru c tur e s unl e ss t he p r op e r t y own e r/ c ontroll e r h a s g r a nted p e rmission and the P I C h a s made a

s a f e t y a ssess m e nt of the r isk of op e r a t i ng c loser to t hose obje c ts and, o p e r a t i ons n e a r the P I C o r Obs e rver

w i l l not p re s e nt an und u e h a z a rd p e r § 9 1 .119 ( a ). Adh e ren c e to these r e strictions in the e lev a t i on of the

d e p a r ture a irpo r t or b a rom e tr i c pr e ssur e

. An e x e mp t ion i s r e quir e d to t he e x tent that the U ASs do not have a

b a rom e tr i c a l t i m e te r , but r a th e r a GPS a l t i t ude rea d out. USC ’ O p e r a t i ons Man ua ls will e nsure op er a t i ons ca n

be c ond u c ted without c ompromising s a f e t y

. 16

K

. 14 C. F

. R. § 91.121: Al t i m e ter S e t t i n gs

USC s e e ks an e x e mp t ion f r om 14 C

. F .R. § 91.121, whi c h r e qui r e s a pe r s on op e r a t i n g a n a ir c r a ft to

m a in t a in c r uis i ng a l t i t ude or f l i g ht le v e l b y r e f

e r e n c e to an a l t i m e ter that is set to the e lev a t i on of the

d e p a r ture a irpo r t or b a rom e tr i c pr e ssur e An e x e mp t ion i s r e quir e d to t he e x tent that the U ASs do not have a

b a rom e tr i c a l t i m e te r , but r a th e r a GPS a l t i t ude rea d out.

1 6 S e e e .g.

, G r a nt of E x e mp t ion No. 11138 to Dougl a s Tr u d ea u ( F A A

- 201 4

- 0481 a t 19 ) :

" I f b a rr i e rs or stru c tur e s a re p re s e nt that ca n suf f i c ient l y p r ot e c t nonp a rtic i p a t i ng p e rsons f r om the

UA or d e b r is in the e v e nt o f a n a c c ident, then the UA m a y op e r a te c loser than 500 f e e t to p e rsons

a f fo r d e d s u c h p r o te c t i on. The op e r a tor m u st a lso e nsure t h a t nonp a rtici p a t i ng p e rsons r e main un d e r

such p rot ec t i on. I f a s i tuation a ris e s w h e re nonp a rtici p a t i ng p e rsons le a v e such p rot e c t i on a nd a r e

with i n 5 00 f

e e t of the U A

, fli g ht o p e r a t i ons must cea s e i m medi a te l y

. W h e n c onsid e ri n g how to

i m medi a te l y c e a se op e r a t i ons, the p rima r y c on ce rn is the s a f e t y o f those nonp a rticip a t i ng p e rson s

. I n

a ddi t ion, the F AA finds that op e r a t i ons m a y b e c ondu c ted c los e r than 500 f e e t to v e ssels, v e hicl e s

a nd stru c tur e s w h e n the own e r/ c ontroll e r o f a n y s u c h v e ssels, v e hicl e s or stru c tur e s g r a nts p e rmi ssio n

f o r th e op e r a t i on a nd the P I C mak e s a s a f

e t y a ssessment of the risk of op e r a t i ng c loser to those

obj ec ts and d e t e rmin e s that it does not pr e s e nt an undue h a z a rd .”U.S. D e p a rtme n t of T r a n sport a t io n

June 28 th , 2015

P a g e 20

Eq u ival e n t Le v e l of Sa

f e ty

The F A A h a s s t a ted th a t a n e quival e nt l e v e l o f s a f e t y to t he r e quir e m e nts of 14 C. F .R. §

91.121 ca n be ac hie v e d in ci rc ums t a n c e s wh e r e : ( 1) the U ASs will be op e r a ted b e low 400 f ee t A G L or

b e lo w 17

, ( 2) with i n V L OS, (3) wh e re GPS b a s e d a l t i t ude info r mati o n is r e l a y e d in r e a l t i me to the op e r a tor

a t a g roun d

- b a s e d o n

- s c r ee n disp la y a nd, (4) w h e re p r ior to eac h fl i g ht, a z e ro a l t i t ude in i t i a t i on p o int is

establish e d for the P I C to co n fi r m a cc u r a c y of the onbo a rd G PS

. 18

The U A S s that USC i ntends to use f or the p r o p osed op e r a t i ons will m e e t all t h e se op e r a t i on a l

c h a ra c te r is t i c s. Mor e ov e r, a s r e qui r e d b y USC ’ O p e r a t i ons Man ua ls, t he P I C will be re qui r e d to c a l i b ra t e

the a ir c r a f

t ' s GPS c ompa s s prior to e ac h fli g ht op e r a t i on. L ike p rior F A A S ec t i on 333 G ra nts of

E x e mp t ion, t he U A S s USC in t e nds to us e

, a nd the sa fe t y m i t i g a t i on p r o ce du r e s co n tain e d in t he Op e r a t i ons

Manu a l s

, both ensu r e that a n e quival e nt l e v e l of s a f e t y will be ac hiev e d, a nd a G r a nt of E x e mp t ion t o the

re quir e ments of § 191.1 2 1 is t h e r e fo r e a ppro p ri a te.

L

. 14 C. F

. R. § 91.151 ( a ) : F u e l R e qu ir e m e n ts f or F l i g h t in V F R Con d itio n s

USC r e qu e sts a n e x e mp t ion f r om 14 C

. F .R. § 91.151 (a ) ' s f u e l r e qui r e ments f

o r f l i g ht in V F R

c ondi t ions. S ec t i on 91.151 st a tes:

(a) No p e rson m a y b e g i n a fl i g ht in a n a irpl a ne und e r V F R c ondi t ions unless ( c onsid e ri n g wind a nd

fo r eca st w ea t h e r c ondi t ions) the r e is e nou g h fu e l to fly to the fi r st po i nt of int e nd e d la n ding a nd,

a ssu m ing nor m a l c r uis i ng s p ee d

–

(1) Du r i n g the d a y , to fly a ft e r th a t f o r a t l ea st 30 m i nutes;

or

(2) At ni g ht, t o f

l y a ft e r t h a t for a t le a st 45 m i nutes.

H e r e , the t ec hnol o g ic a l l i m i tations on U A S b a t t e ry po w e r m ea ns t h a t no m ea ni n g ful fli g ht ope r a t i ons

ca n be c ondu c ted w hi l e st i ll maintaining a 3 0

- m i nute b a t ter y r e s e rv e . An e x e mp t ion f r om t he f u e l

r e quir e ments of 14 C

. F .R. § 91.151 (a ) is the r e fo r e r e quir e d.

1 7 I f t h e h e i g ht o f the str u c t u r e b e i n g inspe c ted e x ce e ds 400 fe e t A G L

, the U A S will not be op e r a ted more

than 100 f

e e t a bove the hi g h e st po i nt on t he stru c tur e

.

1 8 S e e G r a nt of E x e mp t ion No. 11062 to Astr a e us A e ri a l ( F A A

- 201 4

- 0352 a t 2 1 )

.U.S. D e p a rtme n t of T r a n sport a t io n

June 28 th , 2015

P a g e 21

Equivalent Level of Safety

In the Grant of Exemption to VDOS (Exemption No. 11112), the FAA determined that an

equivalent level of safety to the fuel requirements for flight in VFR conditions could be achieved by

prohibiting the PIC from beginning a DJI Phantom II & S900 flight unless (considering wind and forecast

weather conditions) there was enough power to fly to the first intended point of landing and, assuming

normal cruising speed, to fly after that for at least 10 minutes.

In reaching this conclusion, the FAA considered that the UAS batteries for the DJI Phantom II &

S900 provided provide approximately 2 0 minutes of powered flight (with payload) and provided battery

level and battery time remaining in minutes and seconds to the PIC. 19 The FAA also considered the fact

that the DJI Phantom II & S900 operating manual states: “start every flight with a fully charged battery in

the aerial vehicle”, and that in the event that the UAS should run low on power, the PIC will be alerted and

can land t he DJI Phantom II & S900 as soon as possible. Like the VDOS Grant of Exemption, USC use of

the DJI Phantom II & S900 , combined with the requirements of Petitioner's Operations Manuals, ensure

that an equivalent level of safety can be achieved.

Similarly, in the Grant of Exemption to Alan Purwin (Exemption No. 11161), the FAA determined

that an equivalent level of safety to the fuel requirements for flight in VFR conditions could be achieved by

prohibiting the PIC from beginning a flight with the DJI PHANT OM II & S900 unless (considering wind

and forecast weather conditions), there was enough power to fly at normal cruising speed to the intended

landing point and land the UA with 25% battery power remaining. USC will adhere to this limitation for

DJI PHANTO M II & S900 flights.

The DJI PHANTOM II & S900 includes a low battery warning system and the amount of battery

reserve power remaining is transmitted to the PIC via telemetric data feed, which downlinks from the UAS

to a ground

- based

- on

- screen display. 20 As required by USC ’ Operations Manuals, the PIC will promptly fly

the UAS back to the home launch location or pre

- determined abort location where the UAS may safely

land, while still maintaining a minimum of 25 % reserve battery power. USC submits that the procedures

requiring flights to be safely terminated once the batteries fall below 25% capacity, combined with the

requirement that flights only be conducted within a secure, isolated area, using a UAS weighting less than

25 pounds, and within VLOS of the PIC and Observer(s), ensure that the proposed operation will provide

an equivalent or higher level of safety to that provided by the regulations from which exemption is sought.

19 Grant of Exemption No. 11112 to VDOS Global, LLC (FAA

- 2014

- 0382 at 10).

20 The DJI Phantom II & S900 ground control station displays, the UASs position, navigation route, tail

number, altitude, heading, north seeking arrow, range to targets, calculated target position, date/time, and

sensor heading and orientation relative to the UAS.U.S. D e p a rtme n t of T r a n sport a t io n

June 28 th , 2015

P a g e 22

VI. DRUG AND ALCOHOL PROGRAM

USC will have policies in place to ensure that no person may participate in UAS flight operations if

they are under the influence of alcohol or any drug.

VII. PUBLIC INTEREST

The public interest will be served by granting USC ’ Petition for Exemption. Congress has

established a national policy that favors early integration of UAS into the NAS in controlled, safe working

environments such as those proposed in this Petition. Granting this Petition for Exemption helps fulfill

Congress' goal in passing Section 333(a) through (c) of the Reform Act

— the FAA Administrator's

assessment of whether certain UAS may operate safely in the NAS before completion of the statutorily

required rulemaking.

The proposed UAS operations in this Petition for Exe mption significantly improve safety and

reduce risk harm or serious injury to inspecting engineers. Traditional methods of inspecting monitoring

industrial and construction sites, and utility power

- generation facilities and infrastructure requires

inspecto rs to climb towers or otherwise perform elevated work, which exposes them to the risk of

dangerous falls. Inspectors are often exposed to hazardous chemicals or oxygen

- deficient atmospheres,

burns from steam or from hot equipment, and other mechanical haza rds associated with industrial sites and

construction facilities. The use of small UASs can eliminate these hazards and is ultimately a much safer

method of performing these types of inspections.

The use of small UASs also enhances safety and reduces risk because, unlike manned aircraft

weighing thousands of pounds, carrying crew in addition to flammable fuel, the UASs carry no passengers

or crew. Further, in the unlikely event of an accident, USC small battery powered UASs presents

significantly less danger to persons on the ground when compared to operations by conventional manned

aircraft. 21 As Petitioner's UASs are battery powered, the public will also benefit from a reduction in

harmful emissi ons associated with conventional aircraft performing in the same functions proposed herein.

Lastly, as recognized by the FAA in prior Section 333 Grants of Exemption to filmmakers, UASs provide

an additional tool for the aerial filming industry, adding a g reater degree of flexibility, which supplements

the current capabilities offered by manned aircraft. 22

21 See Grant of Exemption No. 11158 to Team 5, LLC (FAA

- 2014

- 0783 at 12):

"Manned helicopters conducting aerial filming can weigh 6,000 pounds or more and are operated by an

onboard pilot, in addition to other onboard crewmembers, as necessary. The petitioner’s UAs will weigh

less than 55 pounds with no onboard pilot or crew. The pilot and crew will be remotely located from the

aircraft. The limited wei ght significantly reduces the potentia l for harm to participating and

nonparticipating individuals or property in the event of an incident or accident. The risk to an onboard pilot

and crew during an incident or accident is eliminated with the use of a UA for the aerial filming operation."U.S. D e p a rtme n t of T r a n sport a t io n

June 28 th , 2015

P a g e 23

VIII. PRIVACY

All USC UAS operations will be conducted in accordance with applicable federal, state, or local

laws regarding privacy. All operations shall be conducted over private or controlled

- access property with

permission from the land owner/controller or authorized repre sentative. Permission from land

owner/controller or authorized representative will be obtained for each flight to be conducted.

IX. FEDERAL REGISTER SUMMARY

Pursuant to 14 C.F.R. Part 11, the following summary is provided for publication in the FEDERAL

REGISTER, should it be determined that publication is needed:

Petitioner seeks an exemption from the following rules in Title 14 of the Code of Federal Regulations:

Part 21, Subpart H; Part 27; 45.23(b); 45.27(a); 61.113; 91.7(a); 91.9(b)(2); 91.9(c); 91.103; 91.109(a);

91.119(c); 91.121; 91.151(a); 91.203 (a) & (b); 91.405(a); 91.407(a)(1); 91.409(a)(1) & (2); 91.417 (a) &

(b).

The exemption will enhance safety by reducing risk to the general public and property owners from

the substantial hazards ass ociated with performing equivalent film work and aerial inspection and

environmental monitoring of industrial sites, transmission and storage facilities, construction facilities and

precision aerial surveys with conventional fixed

- wing aircraft, rotorcraft , or other methods.

X. CONCLUSION

USC Petition for Exemption satisfies the criteria articulated in Section 333 of the Reform Act of

2012 including weight, speed, operating capabilities, proximity to airports and populated areas, operation

within VLOS and national security. The proposed UAS op erations will benefit the public as a whole by

improving safety and reducing risk by alleviating human exposure to danger. In consideration of the

foregoing, this Petition for Exemption provides the FAA with more than adequate justification for granting

th e requested exemptions allowing USC to use small UASs for controlled flights for aerial research to

create 3D city and landscape models, a e ri a l photogrammetry , and p r e c is i on property ae ri a l surv e y s

22 See e.g ., Grant of Exemption No. 11178 to Picture Factory, Inc. (FAA

- 2014

- 0794 at 18).