C ameron R C loar-Zavaleta

A ssociate

T 415-984-8285

ccloar@nixonpeabody.com

One Embarcadero Center, 18th Floor

San Francisco, CA 94111-3600

415-984-8200

4810-8141-4946.1

May 20, 2015

U.S. Department of Transportation

Docket Management System

1200 New Jersey Ave, SE

Washington, DC 20590

RE: Exemption Request Under Section 333 of the FAA Reform Act and Part 11

of the Federal Aviation Regulations

Dear Sir or Madam:

Pursuant to Section 333 of the FAA Modernization and Reform Act of 2012 (the “Reform Act”

or “Section 333”), Subsection (f) of 49 U.S.C. § 44701, and 14 C.F.R. Part 11, Pepper

Construction Company (“Pepper Construction”) seeks an exemption from the Federal Aviation

Regulations (“FARs”) listed below and discussed in A ppendix A to allow it to operate the DJI

Phantom 2 Vision+ and DJI Inspire 1 small Unmanned Aircraft Systems (collectively, “sUAS”).

Pepper Construction is a construction firm that constructs buildings and acts as a general

contractor in a number of industries including, without limitation, healthcare, education,

hospitality, industrial, entertainment and retail, office and corporate headquarters. Pepper

Construction plans to use the sUAS for aerial imagery, inspection and data collection services

for its projects at construction sites across the United States. The information collected by the

sUAS will help Pepper Construction inspect, monitor and oversee its construction projects. This

will in turn translate to improved and more real-time decisions in construction that will enhance

overall safety and lead to economic efficiencies.

The safety and public benefits of using the sUAS in commercial construction applications are

significant. The sUAS reduce the need to operate manned aircraft in unconventional operations,

provide more accurate data in a manner that is more safe, economical and efficient, and with a

reduced impact on the environment. Importantly, use of the sUAS also allows Pepper

Construction to limit inspections and construction site monitoring that must otherwise be

accomplished by individuals, often times involving lifts, ladders, scaffolds and other equipment

at a height above the surface. Injuries and fatalities of construction workers performing such

tasks are well-documented. Accordingly, use of the sUAS for these services will result in

increased safety for construction workers.
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Page 2

Operations pursuant to the exemption will be subject to strict operating requirements and

conditions to ensure at least an equivalent level of safety to currently authorized operations

using manned aircraft and under conditions as may be modified by the FAA as required by

Section 333. The Phantom 2 Vision+ weighs approximately 2.7 pounds (1,242 grams) and the

Inspire 1 weighs approximately 6.5 pounds (2,935 grams). Both models are powered electrically

via small, lithium polymer batteries that drive electric propellers. They operate at a cruising

speed of no more than 22 meters per second (the Phantom Vision 2+ operates at a maximum of

15 m/s and the Inspire 1 at a maximum of 22 m/s). The sUAS were designed with extensive

automated control features, redundant systems, and integrated fail-safes, and they will be

operated under controlled conditions and at low altitudes in airspace that is limited in scope.

Though the sUAS may safely be operated by one person, flight operations performed pursuant

to this exemption will consist of at least two people: a pilot-in-command (the “PIC”) and visual

observer. The PIC is responsible for the direct and safe operation of the sUAS, monitoring their

status and flight dynamics while maintaining visual line of sight and keeping the flight within

the manufacturer’s specified limits in terms of wind, flight range, battery life, and other

operating limitations. The observer will be responsible for monitoring the airspace for other

aircraft and hazards, advising the PIC before and during flight of all such observed risks, and

monitoring the controlled operating area. Individuals acting as the PIC will complete training

specific to the sUAS. The PIC will be a certificated airman who holds either an airline transport,

commercial, private, recreational or sport pilot certificate. The PIC must also hold a current

FAA airman medical certificate or a valid U.S. driver’s license issued by a state, the District of

Columbia, Puerto Rico, a territory, possession, or the federal government.

Because the sUAS will be used in lieu of comparatively higher risk operations now conducted

with either fixed wing and rotary manned aircraft or by individuals, the FAA can have

confidence that Pepper Construction’s operations will achieve at least an equivalent level of

safety and fulfill the Secretary of Transportation’s responsibilities under Section 333(c) of the

Reform Act to “establish requirements for the safe operation of such aircraft systems in the

national airspace system.” Moreover, the FAA has already granted many 333 exemption

requests for operation of the sUAS models requested here. [See, e.g,FAA Exemption Nos.

11325; 11351; 11357; 11325, 11327.] Accordingly, it should grant this exemption request

without delay.

A pplicantInformation

The name of the applicant is:

Pepper Construction Company
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May 20, 2015

Page 3

The primary contact for this application is:

Kevin Bredeson

Pepper Construction Company

411 Lake Zurich Road

Barrington, Illinois 60010

Phone: (847) 381-2760

E-mail: kbredeson@pepperconstruction.com

E xemptions Requ ested

Pepper Construction respectfully requests exemptions from the following regulations:1

14 C.F.R. Part 21, Subpart H;

14 C.F.R. § 91.7;

14 C.F.R. § 91.9(b)(2);

14 C.F.R. § 91.113;

14 C.F.R. § 61.113(a), (b);

14 C.F.R. § 61.133(a);

14 C.F.R. § 91.119(c);

14 C.F.R. § 91.121;

14 C.F.R. § 91.151;

14 C.F.R. § 91.203;

14 C.F.R. § 91.405(a) and (b);

14 C.F.R. § 91.407(a)(1);

14 C.F.R. § 91.409(a)(1)-(2); and

14 C.F.R. § 91.417(a).

TH E A P P L IC A B L E L E GA L S TA N D A RD UN D E R S E C TIO N 333

Grant of this exemption application for use of the sUAS in precision aerial photography, data

collection and inspection and monitoring applications will advance the Congressional

mandate in Section 333 of the Reform Act to accelerate the introduction of UAS into the

national airspace system ("NAS") if it can be accomplished safely. This law directs the

Secretary of Transportation to consider whether certain UAS may operate safely in the NAS

before completion of the rulemaking required under Section 332 of the Reform Act. In

1 As set forth in Appendix B, Pepper Construction will operate under similar operating conditions as those required

in the other grants of exemption, in which exemptions for certain FARs were deemed by the FAA as “not

necessary.” Accordingly, Pepper Construction does not request FAA exemption from 14 C.F.R. 45.23(b), 91.103,

and 91.109(a). If the FAA determines that relief from these or any other regulation is required for the operations

proposed herein, Pepper Construction will be happy to submit an amendment to this request and include

justifications for those necessary additional exemptions.
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May 20, 2015

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making this determination, the Secretary is required to determine which types of UAS do not

create a hazard to users of the NAS or the public, or pose a threat to national security in light

of the following:

 The UAS's size, weight, speed, and operational capability;

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

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

Reform Act § 333(a)(1). If the Secretary determines that such vehicles "may operate safely in

the national airspace system, the Secretary shall establish requirements for the safe operation

of such aircraft in the national airspace system." Id.§333(c) (emphasis added).2

The Federal Aviation Act expressly grants the FAA the authority to issue exemptions. This

statutory authority, by its terms, includes exempting civil aircraft, as the term is defined under

§40101 of the Act, from the requirement that all civil aircraft must have a current

airworthiness certificate and those regulations requiring commercial pilots to operate aircraft

in commercial service:

The Administrator may grant an exemption from a requirement

of a regulation prescribed under subsection (a) or (b) of this

section or any of sections 44702-44716 of this title if the

Administrator finds the exemption is in the public interest.

49 U.S.C. §44701(f). See also 49 USC §44711(a); 49 USC §44704.

The grant of the requested exemption is in the public interest based on the clear direction in

Section 333 of the Reform Act; the additional authority in the Federal Aviation Act, as

amended; the strong equivalent level of safety surrounding the proposed operations; and the

significant public benefit, including enhanced safety and cost savings associated with

transitioning to UAS for aerial imagery, data collection and inspection services. Pepper

Construction therefore respectfully requests that the FAA grant the requested exemption without

delay.

2

This provision places a duty on the Administrator to not only process applications for exemptions under

Section 333, but for the Administrator, if he deems the conditions proposed herein to require modification in

order to allow approval, to supply conditions for the safe operation of the UAS. Pepper Construction welcomes

the opportunity to consult with FAA staff to address any issues or concerns that this proposal may raise that

FAA staff believes may require modification.
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A irworthiness of the D JIP hantom 2 V ision+and the D JIInspire 1

One element of the exemption application involves evidence of the airworthiness of the sUAS.

Pepper Construction believes that the sUAS have been shown to be airworthy and compliant

with a significant level of safety. The many previous 333 Grants of Exemptions by the FAA

further highlight that operations of the sUAS will not adversely affect safety when compared to

similar operations conducted by aircraft that have been issued an airworthiness certificate under

14 C.F.R. Part 21, Subpart H. [E.g.,FAA Exemption Nos. 11357, 11325.]

To enhance safety, it is also important to note that the sUAS are equipped with automated

features which enhance safe takeoff, flight, and landing in many conditions, further details of

which are provided in the applicable DJI User Manuals.3

To maintain airworthiness, Pepper Construction will follow the inspection and maintenance

programs designed specifically for the sUAS by their manufacturer, DJI. Those programs are

enhanced by an inflight monitoring system for the sUAS that monitor current position, wind

speed and direction, battery charge, flight time, and altitude, including both above the takeoff

location and above sea level. If onboard sensors detect a critical situation at any time (low

battery, close proximity to the ground, weak data link signal, etc.) the sUAS will automatically

initiate a preprogrammed safety procedure. In the event of any malfunction, the sUAS will

undergo all maintenance required by the manufacturer and undergo flight testing before

recommencing commercial operations.

P roposed O perations and A ssociated C onditions

Pepper Construction intends to use the sUAS that weigh significantly less than 55 pounds for

the purpose of collecting aerial photography and data, as well as aerial inspection and

monitoring applications at commercial construction sites.

All of the sUAS operations will occur under tightly controlled conditions on privately owned

land at the owner’s request and consent, solely during daylight hours, and at altitudes well

below that which would pose a risk to other aircraft. The operations will take place in areas

away from people, crowds and airports. Moreover, due to the nature and purpose of the

operations, Pepper Construction anticipates that it will fly the sUAS at relatively low altitudes

and speeds. The risk of interference with another aircraft is therefore minimal.

3

Pepper Construction submits the following documents, as proprietary and under confidentiality, in support of this

exemption request: the DJI Inspire 1 Safety Guidelines v1.0, Inspire 1 User Manual v1.0, Inspire 1 Quick Start

Guide v1.0, Inspire 1 Maintenance Manual v1.0, Intelligent Flight Battery Safety Guidelines v1.0, Phantom 2

Vision+ User Manual v1.8, Smart Flight Battery Guidelines, Phantom 2 Vision+ Pilot Training Guide v1.1, and the

Phantom 2 Vision+ Quick Start Guide. At the request of the FAA, Pepper Construction will also be pleased to

provide, under confidentiality, its sUAS General Operations Manual (“GOM”).
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May 20, 2015

Page 6

Grant of this exemption to Pepper Construction will be subject to the conditions listed in

A ppendix B , which are based upon the operating conditions required by the FAA's previous

grants of exemptions. The sUAS are characterized by a high degree of pre-programmed control

and various built-in technical capabilities that limit the potential for operation outside of the

conditions set forth in A ppendix B . They were also designed with internal functional and safety

features to assist the operator in safe and reliable operation. With pre-programmed flights and

manual control, operators can easily maintain separation from manned aircraft operations and

avoid other hazards. In the controlled environment under the operations conditions in A ppendix

B , operations will remain within visual line-of-sight (VLOS) and below 400 feet AGL. In

addition, Pepper Construction will obtain a Certificate of Waiver or Authorization from the

FAA Air Traffic Organization to address airspace requirements and provide notification by a

Notice to Airman (NOTAM).

O peratorRequ irements

As a condition to the grant of the exemptions, Pepper Construction will require that the PIC

hold either an airline transport, commercial, private, recreational or sport pilot certificate. The

PIC must also hold a current FAA airman medical certificate or a valid U.S. driver’s license

issued by a state, the District of Columbia, Puerto Rico, a territory, possession, or the federal

government. The PIC will also be subject to the flight review requirements pursuant to the

Federal Aviation Regulations (“FARs”).

In addition, the PIC must complete a training program for each sUAS that he or she will operate

for Pepper Construction. This training familiarizes the PIC to the operations and limitations of

the sUAS. Training will also include discussions on the basic fundamentals of UAS

aerodynamics and technical limitations, as well as the more general topics of weather, the

National Airspace System, and the regulatory framework.

Pepper Construction does not believe that certified airmen, medical certificates, and the related

operating conditions, are necessary or required to operate the sUAS. However, Pepper

Construction will accept these requirements as a condition to the grant of this exemption. If, and

when, the FAA finds such conditions unnecessary for operations conducted pursuant to Section

333 exemptions, Pepper Construction respectfully reserves the right to amend its operating

conditions and request exemption from the relevant FARs to operate without such conditions.

P u blic Interest

The use of the sUAS in lieu of comparatively hazardous operations currently conducted with

conventional fixed wing and rotary aircraft offers a net safety benefit and will achieve an

enhanced level of safety, as mandated under Section 333(c) of the Reform Act. Approval of this

application will also benefit the public interest by allowing better, safer, and more cost efficient

information for Pepper Construction and the public. Moreover, it will lessen the need for
4810-8141-4946.1

May 20, 2015

Page 7

inspections by individuals that must often use equipment to observe construction sites from

heights above the surface.

Conventional aerial photography, inspection and monitoring operations using manned aircraft

involve heavy aerial aircraft that must transit from airports to the operational location, carrying

significant amounts of combustible fuel, and a multi-person crew. Manned aircraft are also at

risk of fuel spillage and fire in the event of an accident or incident. By contrast, use of the sUAS

is safe, economical and efficient. The Phantom 2 Vision+ weighs approximately 2.7 pounds and

the DJI Inspire 1 weighs approximately 6.5 pounds. Both sUAS are carried (not flown) to and

from the area of activity, remove the need for an airborne crew, and pose less risk to people and

infrastructure on the ground, as well as other aircraft.

No national security issue is raised by the grant of the requested exemptions. Given the size,

load-carrying capacity, the speed at which the sUAS operates (less than 25 meters per second),

and the fact that they do not carry explosives or other dangerous materials, the use of the sUAS

pose no threat to national security. In fact, the threat of causing damage to property is

significantly reduced with the extremely low weight of the sUAS and limited operating areas.

Any other security concerns are ameliorated by the fact that all individuals holding an FAA

airman certificate are subject to a security screening by the U.S. Department of Homeland

Security. 49 U.S.C. § 44903(j)(2)(D)(i).

The grant of the requested exemption is in the public interest based on the clear direction in

Section 333, the Federal Aviation Act,4the high and equivalent level of safety of the proposed

operations, and the significant public benefit, including enhanced safety and cost savings to be

realized as a result of the use of the sUAS for aerial imagery, data collection and inspections. It

is also in-line with the previous Grants of Exemption by the FAA for the same and similar

sUAS models. [FAA Exemption Nos. 11357, 11325, 11327.] Accordingly, Pepper Construction

respectfully requests that the FAA grant an expedited exemption.

///

4

The Federal Aviation Act expressly grants the FAA the authority to issue exemptions: The Administrator may grant an

exemption from a requirement of a regulation prescribed under subsection (a) or (b) of this section or any of sections 44702-

44716 of this title if the Administrator finds the exemption is in the public interest. 49 U.S.C. § 44701(f).
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Page 8

Very truly yours,

NIXON PEABODY, LLP

Cameron R Cloar-Zavaleta

CRCZ
4810-8141-4946.1

May 20, 2015

Page 9

A P P E N D IX A

E X E M P TIO N RE Q UE S T A N D E Q UIV A L E N T L E V E L O F S A FE TY S H O W IN GS

UN D E R A P P L IC A B L E RUL E S S UB JE C T TO E X E M P TIO N

14 C .F.R.P art21,S u bpartH :A irworthiness

C ertificates 14 C FR § 91.203(a)(1)

Section 91.203(a)(1) requires all civil aircraft to have a certificate of airworthiness. Part 21,

Subpart H, entitled Airworthiness Certificates, establishes the procedural requirements for the

issuance of airworthiness certificates as required by FAR § 91.203(a)(1). Given the very small

size of the aircraft and the limited operating area associated with their utilization, it is

unnecessary to go through the certificate of airworthiness process under Part 21 Subpart H to

achieve or exceed current safety levels.5

Such an exemption meets the requirements of an equivalent level of safety under Part 11 and

Section 333 of the Reform Act. The Federal Aviation Act and Section 333 of the Reform Act

both authorize the FAA to exempt aircraft from the requirement for an airworthiness

certificate, upon consideration of the size, weight, speed, operational capability, and

proximity to airports and populated areas of the UAS involved.

In this case, an analysis of these criteria demonstrates that the sUAS operated without an

airworthiness certificate, under the conditions proposed herein, will be at least as safe, or safer,

than a conventional aircraft (fixed wing or rotorcraft) with an airworthiness certificate. The

Phantom 2 Vision+ weighs approximately 2.7 pounds, and the DJI Inspire 1 weighs

approximately 6.5 pounds. Neither model carries a pilot or passenger; they do not carry

flammable fuel, and will operate exclusively within an area pre-disclosed and in compliance

with conditions set forth herein. Operations under this exemption will be tightly controlled

and monitored by the operator, pursuant to the conditions set forth in A ppend ix B , the

applicable DJI manuals, the Pepper Construction sUAS General Operations Manual

(“GOM”), and by local public safety requirements.

The FAA will have advance notice of all operations through the filing of NOTAMs. Receipt

of the prior permission of the land owner (or lessee), the size of the aircraft, the lack of

flammable fuel, and the fact that the aircraft is carried to the location and not flown there all

establish the equivalent level of safety. The sUAS provide at least an equivalent level of

5 The FAA has stated that no exemption is needed from this section if a finding is made under the Reform Act that

the sUAS provide an equivalent level of safety when compared to aircraft normally used for the same application.

These criteria are satisfied and therefore no exemption is needed. [See, e.g.,Exemption No. 11220 (an exemption

from 91.203 not required for the Phantom).] However, Pepper Construction requests an exemption in the event that

the FAA determines that some characteristics of the sUAS fail to meet the requirements of the Reform Act.
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Page 10

safety to that of such operations conducted with conventional manned aircraft that would be

orders-of-magnitude larger and would be carrying passengers, cargo, and flammable fuel.

The safety features including the redundant sensor systems, as described in the DJI User

Manuals, and throughout this document, underscore the importance placed on safety and

reliability in the design and manufacture of the sUAS.

14 C .F.R.§ 91.7 (a)-(b);C ivilA ircraftA irworthiness

Section 91.7(a) requires that a civil aircraft must be in airworthy condition to be operated. In

previous grants of exemption for the sUAS, the FAA concluded that an exemption was

required under 14 C.F.R. § 91.7(a). In each instance, the FAA granted relief under § 91.7(a)

through a requirement that each petitioner ensure that the sUAS is in an airworthy condition

– based on compliance with the User Manual – prior to every flight. [See,e.g, Exemption No.

11220, p. 5.] Pepper Construction therefore requests that the FAA find similar relief under

the same conditions here.

Section 91.7(b) places responsibility on the PIC to ensure an aircraft is in a condition safe

for flight. In prior grants of exemption to the sUAS, the FAA determined that exemption

from this section was not necessary. [See, e.g.,Exemption No. 11191; 11195; 11120.] To

the extent that the FAA determines an exemption is required here, Pepper Construction

respectfully requests that the FAA find compliance with the manufacturer’s manuals, and

requirements of the grant of exemption, a sufficient means for ensuring that the sUAS are in

a condition for safe flight.

14 C .F.R.§ 91.113;Right-of-W ayRu les

Section 91.113 requires that vigilance be maintained by each person operating an aircraft to

see and avoid other aircraft. Unlike manned aircraft, the sUAS pilot is not on-board the

aircraft to observe and avoid other aircraft, operating the sUAS from the ground.

Pepper Construction’s proposed operating conditions will achieve an equivalent or greater

level of safety. All operations will involve two individuals—one FAA certificated pilot as

the PIC and one visual observer who will monitor the immediate and surrounding airspace of

the operation for potential obstruction hazards and other possible intrusions. The sUAS will

also be limited to designated areas below 400 feet AGL and within a virtual fence. Pepper

Construction will notify the FAA and other pilots of the sUAS operations by NOTAM.

14 C .F.R.§ 61.113(a)& (b);61.133(a):P rivate P ilotP rivileges and L imitations;P ilot

in C ommand;C ommercialP ilotP rivileges and L imitations

Section 61.113(a) & (b) limit private pilots to non-commercial operations. Unlike a

conventional aircraft that carries a pilot, passengers, and cargo, the sUAS are remotely
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controlled with no passengers or property of others on-board. Section 61.133(a) requires an

individual with at least a commercial pilot’s license to act as pilot in command of an aircraft for

compensation or hire.

Pepper Construction respectfully proposes that operator requirements should take into account

the characteristics of the particular UAS. Here, the sUAS have a high degree of preprogrammed control and various built-in technical capabilities that strictly limit the potential

for operation outside of the operating conditions set forth in A ppendix B and the exemption

application. The small size, endurance, range and payload capacities of the sUAS mean that no

passengers and/or cargo will ever be carried by the aircraft. Rather, commercial operations will

be strictly limited to acquiring aerial imagery, data collection and inspections.

Considering these conditions, operating limitations and restrictions, an equivalent level of

safety will be provided by allowing operation of the sUAS by Pepper Construction with

individuals who possess a valid FAA airline transport, commercial, private, recreational or

sport pilot certificate. The risks associated with the operation of the sUAS (given their small

size, speed, operational capabilities and limitations, and lack of combustible fuel) are so

diminished from the level of risk associated with commercial operations (and even operations

permitted with a private pilot certificate) contemplated by Part 61 with manned aircraft, that

allowing operations of the sUAS as set forth in A ppendix B meets and exceeds the present

level of safety provided under 14 C.F.R. § 61.113(a)-(b), and does not call for a commercial

pilot certificate as set forth in § 61.133. [FAA Exemption No. 11357 (requiring at least a

recreational or sport pilot certificate, and a current FAA airman medical certificate or valid

U.S. driver’s license).]

14 C FR § 91.119:M inimu m S afe A ltitu d es

Section 91.119 establishes safe altitudes for operation of civil aircraft. Specifically, 91.119(c)

limits aircraft flying over areas other than congested areas to an altitude of 500 feet above the

surface, except over open water or sparsely populated areas. In those cases, the aircraft may

not be operated closer than 500 feet to any person, vessel, vehicle, or structure.

As set forth herein, the sUAS will not operate at higher than 400 feet AGL. The sUAS will,

however, be operated to avoid congested or populated areas. Because aerial photography, data

collection and inspection work must be accomplished at relatively low altitudes and at

altitudes less than 500 feet AGL, an exemption from Section 91.119(c) is needed.

The equivalent level of safety will be achieved given the size, weight, speed, and material with

which the sUAS are built. Also, all flights will be conducted over private and/or controlledaccess property with the permission of the land owner or those who control the land. Because

of the advance notice to the landowner, all affected individuals will be aware of the flights.
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Compared to operations conducted with aircraft or rotorcraft weighing far more than the sUAS,

and carrying flammable fuel, any risk associated with these operations will be significantly less

than those currently allowed with conventional aircraft operating at or below 500 feet AGL.

Indeed, the low-altitude operations of the sUAS will maintain separation from operations of

conventional aircraft that must comply with Section 91.119.

14 C .F.R.§ 91.151(a):Fu elRequ irements forFlightin V FR C onditions

This regulation prohibits an individual from beginning “a flight in an airplane under VFR

conditions unless (considering wind and forecast weather conditions) there is enough fuel to fly

to the first point of intended landing and, assuming normal cruising speed – (1) During the day,

to fly after that for at least 30 minutes; or (2) At night, to fly after that for at least 45 minutes.”

The Phantom 2 Vision+ is powered by a removable, rechargeable, lithium-polymer battery that

provides approximately 25 minutes of powered flight. Without an exemption from § 14 CFR

91.151, flights by Pepper Construction would not be possible. Given the limitations on the

proposed operations and their locations, a less burdensome reserve requirement for flight in

daylight VFR conditions is reasonable. Moreover, the Phantom 2 Vision+ provides low battery

warnings that indicate the PIC must command the aircraft’s return to the launch point when

low battery capacity voltage is reached. A critical low battery warning is also provided. The

aircraft will initiate an automatic descent and landing at the critical low battery warning.

The Inspire 1 is also powered by a removable, rechargeable, lithium-polymer battery that

provides approximately 18 minutes of powered flight. Without an exemption from § 14 CFR

91.151, flights by Pepper Construction would not be possible. Given the limitations on the

proposed operations and their locations, a less burdensome reserve requirement for flight in

daylight VFR conditions is reasonable. Moreover, like the Phantom 2 Vision+, the Inspire 1

provides low battery warnings that indicate the PIC must command the aircraft’s return to the

launch point when low battery capacity voltage is reached. Likewise, a critical low battery

warning is also provided. The aircraft will initiate an automatic descent and landing at the

critical low battery warning.

An exemption from 14 CFR § 91.151(a) is safe and within the scope of the prior exemptions

for the sUAS. [See, e.g.,Exemption No. 11195; 11191.] In line with the previous grants of

exemption, Pepper Construction requests that the FAA grant relief under the condition that the

PIC will not begin a flight unless (considering wind and forecast weather conditions) there is

enough power to fly to the first point of intended landing and, assuming normal cruise speed,

land the sUAS and to operate after that for at least 5 minutes. [See Exemption No. 11325.]
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14 C .F.R.§ § 91.9(b)(2);91.203(a)-(b);C arriage of C ivilA ircraftA irworthiness

C ertificate and Registration

Sections 91.9(b) and 91.203(a)-(b) require an aircraft operator to carry airworthiness

documents and other aircraft manuals onboard the aircraft at all times. Because the sUAS

are small in size and do not contain a cabin or flight deck, carriage of such documents and

manuals is impossible.

The intent of these regulations is to ensure that the PIC has access to important documents

during flight. Here, an equivalent level of safety is achieved if the PIC has access to the

applicable sUAS manual(s), registration certificate and other required documents from the

Ground Control Station from which he or she is conducting operations. This is consistent

with a prior opinion of the FAA Office of the Chief Counsel, and other grants of exemptions

for commercial UAS operations. [See Memorandum from Mark Bury, FAA Assistant Chief

Counsel for International Law, Legislation and Regulation, to John Duncan, FAA Flight

Standards Service (Aug. 8, 2014).]

14 C .F.R.§ 91.121:A ltimeterS ettings

Section 91.121 requires that each individual operating an aircraft shall maintain the cruising

altitude or flight level of that aircraft, as the case may be, by reference to an altimeter that is

set, when operating below 18,000 feet MSL to:

 The current reported altimeter setting of a station along the route and within 100

nautical miles of the aircraft;

 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;

 In the case of an aircraft not equipped with a radio, the elevation of the departure

airport or an appropriate altimeter setting available before departure.

To provide an equivalent level of safety, the sUAS autopilot calculates the reference altitude

(ground level) with on-board GPS. The altitude information generated from the GPS is

transmitted to the PIC. The PIC shall confirm the altitude of the launch site shown on the

GPS altitude indicator before flight. The FAA has granted relief from this section in prior

grants of exemption under the condition that the operator set the altimeter to zero feet AGL

rather than local barometric pressure or field altitude before each flight. [Exemption Nos.

11062 and 11067.] A similar grant of exemption is thus warranted here.
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14 C .F.R.§ § 91.405(a);407 (a)(1);409(a)(2);417 (a):M aintenance Inspections

Section 91.405(a) requires that an aircraft operator or owner “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 part 43 of

this chapter....” Section 91.407 similarly makes reference to requirements in Part 43; Section

91.409(a)(2) requires an annual inspection for the issuance of an airworthiness certificate.

Section 91.417(a) requires the owner or operator to keep records showing certain maintenance

work that has been accomplished by certificated mechanics, under Part 43, or licensed pilots

and records of approval of the aircraft for return to service.

An equivalent level of safety will be achieved because the sUAS are small in size, will solely

operate in limited and predetermined areas, and are not large, complex mechanical machines.

Pepper Construction will perform all maintenance and inspections in accordance with the

manufacturers’ manuals and any required manufacturer Safety or Service Bulletins. In

addition, the PIC will conduct a pre-flight inspection of the sUAS and all associated

equipment to account for all discrepancies and/or inoperable components. Maintenance will be

performed and verified to address any conditions potentially affecting safe operation of the

sUAS and no flights will occur unless and until all flight critical components of the sUAS

have been found to be in a condition for safe operation. A functional flight test will be

conducted following the replacement of any flight-critical components.
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A P P E N D IX B

P E P P E R C O N S TRUC TIO N C O M P A N Y O P E RA TIN G RE S TRIC TIO N S A N D

L IM ITA TIO N S

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

Vision+, which weighs approximately 2.7 pounds, and the DJI Inspire 1, which weighs

approximately 6.5 pounds (collectively, the “sUAS”). Proposed operations of any other

aircraft will require a new petition or a petition to amend this grant.

2) The sUAS shall not be flown at a ground speed exceeding 87 knots (100 miles per hour).

3) Above Ground Level (“AGL”) altitude shall be restricted to 400 feet. All altitudes

reported to Air Traffic Control (“ATC”) shall be in feet AGL.

4) The sUAS shall be operated within Visual Line-of-Sight (“VLOS”) of the pilot-incommand (“PIC”) and visual observer at all times. The PIC must use human vision

unaided by any device other than corrective lenses, as specified on the PIC’s FAAissued medical certificate.

5) All operations must utilize a visual observer (“VO”). The VO may be used to satisfy the

VLOS requirement as long as the PIC maintains VLOS capability. The VO and PIC

must be able to communicate verbally at all times. The PIC must be designated before

the flight and cannot transfer his or her designation for the duration of the flight.

6) Any and all additional requirements identified in the exemption grant by the FAA shall

be added to the sUAS General Operations Manual (“GOM”). The GOM must be

maintained and made available to the Administrator upon request. If a discrepancy exists

between the conditions and limitations in the granted exemptions and the GOM, the

conditions and limitations in the granted exemptions shall take precedence and must be

followed. Otherwise, the operator must follow the procedures outlined in the GOM.

The operator may update or revise its GOM. It is the operator’s responsibility to track

such revisions and present updated and revised documents to the Administrator upon the

request. The operator must also present updated and revised documents if it petitions for

an extension or amendment of the granted exemptions. If the operator determines that
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any update or revision would affect the basis upon which the FAA granted the

exemptions, then the operator must petition for amendment to its exemptions. The

FAA’s UAS Integration Office (AFS-80) may be contacted if questions arise regarding

updates or revisions to the GOM.

7) Prior to each flight the PIC must inspect the sUAS to confirm that it is in a condition for

safe flight. The preflight inspection shall account for all discrepancies (i.e., inoperable

components, items, or equipment). The PIC shall not operate the aircraft if the

inspection reveals a condition that affects the safe operation of the sUAS until the

necessary maintenance has been performed and the sUAS is found to be in a condition

for safe flight. The Ground Control Station (“GCS”) shall be included in the preflight

inspection.

8) Any sUAS that has undergone maintenance or alterations that affect the sUAS operation

or flight characteristics (e.g., replacement of a flight critical component) must undergo a

functional test flight. The PIC who conducts the functional test flight must make an

entry in the sUAS aircraft records.

9) Pepper Construction must follow the manufacturer’s aircraft/component maintenance,

overhaul, replacement, inspection, and life limit requirements.

10) Pepper Construction shall carry out its maintenance, inspections, and record keeping

requirements, in accordance with the manufacturer’s manuals and instructions.

Maintenance, inspection, and alterations must be noted in the aircraft records, including

total flight hours, description of work accomplished, and the signature of the authorized

PIC or technician returning the sUAS to service.

11) The PIC must make a record entry in the aircraft records of the corrective action taken

against discrepancies discovered between inspections.

12) The PIC must possess either an airline transport, commercial, private, recreational or

sport pilot certificate. The PIC must also hold a current FAA airman medical certificate

or a valid U.S. driver’s license issued by a state, the District of Columbia, Puerto Rico, a

territory, a possession, or the federal government. The PIC must also meet the flight

review requirements specified in 14 C.F.R. § 61.56 in an aircraft in which the PIC is

rated on his or her pilot certificate.

13) Pepper Construction will not permit any PIC to operate the sUAS unless and until that

PIC demonstrates the ability to safely operate the sUAS in a manner consistent with how

the sUAS will be operated pursuant to this exemption, including evasive and emergency

maneuvers and maintaining appropriate distances from people, vessels, vehicles and

structures. PIC qualification flight hours and currency must be logged in a manner

consistent with 14 C.F.R. § 61.51(b).
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14) The sUAS shall not be operated directly over any person, except authorized and

consenting individuals, or below an altitude that is hazardous to persons or property on

the surface in the event of an sUAS failure or emergency.

15) Operating of the sUAS may be conducted at distances less than 500 feet from

participating persons, vessels, vehicles or structures that perform an essential function in

connection with these special purpose operations. Operations closer than 500 feet from

the PIC, visual observer, operator trainees, and essential persons, are permitted when

operationally necessary; but never so close as to present an undue hazard, per §

91.119(a).

16) Operation of the sUAS must be conducted at least 500 feet from all nonparticipating

persons, vessels, vehicles, and structures unless:

a. the aircraft is operated near vessels, vehicles or structures where

the land owner/controller 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.

17) If the sUAS loses communications or loses its GPS signal, the sUAS must return to a

pre-determined location within the operational area and land or be recovered in

accordance with the manufacturer’s user manuals.

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

19) The PIC is prohibited from beginning a sUAS flight unless (considering wind and

forecast weather conditions) there is enough power to fly to the intended point of

landing and, assuming normal cruising speed, operate after that for at least 5 minutes.

20) Pepper Construction shall obtain an Air Traffic Organization (ATO) issued Certificate of

Waiver of Authorization (COA) prior to conducting any operation. This COA will also

require the filing of the NOTAM not more than 72 hours in advance, but not less than 48

hours prior to the operation.

21) All aircraft operated in accordance with the requested exemption must be identified by

serial number, registered in accordance with 14 C.F.R. Part 47, and have identification

(N-Number) markings in accordance with 14 C.F.R. Part 45, Subpart C. Markings shall

be as large as practicable.

22) Each sUAS must comply with all manufacturer System and Safety Bulletins.
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23) The radio frequency spectrum used for operation and control of the sUAS must comply

with Federal Communication (FCC) or other appropriate government oversight agency

requirements.

24) The documents required under 14 C.F.R. §§ 91.9 and 91.203 shall be available to the

operator at the Ground Control Station of the sUAS any time the aircraft is operating.

These documents must be made available to the Administrator or any law enforcement

official upon request.6

25) The sUAS must remain clear and yield the right of way to all other manned operations

and activities at all times (including, without limitation, ultralight vehicles, parachute

activities, parasailing activities, hang gliders, etc.).

26) Operations shall occur under Visual Meteorological Conditions (VMC); flights under

special visual flight rules (SVFR) shall not be conducted.

27) The sUAS shall not be operated from any moving device or vehicle.

28) The sUAS shall not be operated closer than 500 feet below or 2,000 feet horizontally

from a cloud or when visibility is less than 3 statute miles from the PIC.

29) Operations shall not occur in congested or densely populated areas. The sUAS may not

operate in Class B, C, D or E airspace without written approval from the controlling

authority. Operations will not be conducted within a 5 NM range of the geographic

center of an airport as denoted on a current FAA-published aeronautical chart unless

permission has been obtained from the local control tower or, in the case of a nontowered airport, written notice has been provided to the airport’s management, and the

operation is conducted in accordance with a NOTAM as required by the grant of this

exemption.

30) All operations shall be conducted over private and/or controlled-access property with

permission from the landowner/controller or authorized representative. Permission from

the landowner, controller, manager or authorized representative will be obtained for each

flight to be conducted.

31) Any incident, accident, or flight operation that transgresses the lateral or vertical

boundaries of the operational area as defined by the applicable COA shall be reported to

6 This is consistent with an FAA Office of Chief Counsel Opinion, dated August 8, 2014, and prepared by Dean E.

Griffith, AGC-220, in which it was acknowledged that the intent of 14 C.F.R. § 91.9(b) and 91.203(a), (b) is met if

the PIC of the UAS has access to the aircraft flight manual, registration certificate, and other required documents

from the ground control station from which he or she is operating the UAS. Memorandum from Mark Bury, FAA

Assistant Chief Counsel for International Law, Legislation and Regulation, to John Duncan, FAA Flight Standards

Service (Aug. 8, 2014).
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the FAA’s UAS Integration Office (AFS-80) within 24 hours. Accidents shall be

reported to the National Transportation Safety Board (NTSB) per instructions contained

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

32) sUAS operations may not be conducted during night, as defined by 14 C.F.R. § 1.1.
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A P P E N D IX C

FE D E RA L RE GIS TRY S UM M A RY

Pursuant to 14 C.F.R. Part 11, Pepper Construction offers the following summary for

publication in the Federal Register, should publication be necessary:

Pepper Construction seeks an exemption from the following rules:

14 C.F.R. Part 21, Subpart H; 14 C.F.R. § 91.7; 14 C.F.R. § 91.9(b)(2); 14

C.F.R. § 91.113; 14 C.F.R. § 61.113(a)-(b); 14 C.F.R. § 61.133(a); 14 C.F.R. §

91.119(c); 14 C.F.R. § 91.121; 14 C.F.R. § 91.151; 14 C.F.R. § 91.203; 14

C.F.R. § 91.405(a)-(b); 14 C.F.R. § 91.407(a)(1); 14 C.F.R. § 91.409(a)(1)-(2);

and, 14 C.F.R. § 91.417(a).

Approval of these exemptions will permit Pepper Construction to conduct commercial

unmanned aircraft systems (“UAS”) operations in commercial construction applications.

The exemptions will enhance safety by reducing risk to the general public and property

owners from the risk and hazards associated with performing equivalent work through

individual construction workers and conventional manned aircraft.