I. Petitioner’s Description

Oak Tree Capital LLC is a limited liability corporation focused on the development of small 

UAS for security on medium to large industrial sites. Keegan G. Shields, the company founder 

would like to request an exemption to develop, test and demonstrate small unmanned aircraft 

systems (sUAS) for the industrial security sector, pursuant to Section 333 of the Federal Aviation 

Administration (FAA) Modernization and Reform Act of 2012 (the Reform Act), from Federal 

Aviation Regulations (FARs) identified below, allowing commercial operations of small

unmanned aircraft systems (UAS).

The petitioner’s contact information is as follows:

Keegan G. Shields, Founder

Oak Tree Capital LLC

11413 Dona Villa Dr.

Austin, TX 78726

Email: keegan.shields@gmail.com

Mobile phone: 956 638 0825

II. Relevant Statutory Authority

This petition for exemption is submitted to fulfill Congress’ goal in passing Section 

333(a) through (c) of the Reform Act. Congress has directed the FAA “to safely accelerate the 

integration of civil unmanned aircraft systems into the national airspace system.” Pursuant to 

Section 333 of the Reform Act, the FAA Administrator is to consider whether certain UAS may 

operate safely in the National Airspace (NAS) before completion of the formal UAS rulemaking, 

based on the following considerations:

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 the visual line of sight of the operator.

Pursuant to 49 U.S.C. § 44701 (f), the FAA Administrator has authority to grant exemptions if 

the request is found to be in the public interest.

III. Qualifications for Approval under Section 333 of the ReformAct

The proposed operations in this petition for exemption qualify for expedited approval

under Section 333 of the Reform Act. Each of the statutory criteria and other potential relevant 

factors are satisfied. The proposed operations would permit the use of small and relatively 

inexpensive UAS under controlled conditions in Class G airspace with altitudes limited to 400 ft 

agl. The focus of the operations would be to develop, test and demonstrate small unmanned 

aircraft systems (sUAS) for the industrial security sector within the borders of the United States 

and is therefore in the public interest.
The UAS to be used weighs less than three (3) pounds, including payload. Operation of 

the aircraft will be limited to VFR conditions and winds under 15 knots. The aircraft has the 

ability to hover and move in the horizontal and vertical planes simultaneously. The UAS will not 

be operated at speeds greater than 27 knots. The UAS will be operated within visual line of sight 

(VLOS) of the pilot in command (PIC) with the aid of a visual observer (VO).

IV. Training and Proposed Operations

A. Training: PIC will hold a current FAA pilot license (minimum of a FAA sport pilot) or 

the US military equivalent and will hold a minimum of a current driver license as 

required by the FAA sport pilot license for a medical requirement.

Oak Tree Capital LLC has developed a training program to train the PIC and VO in the 

safe operation of the UAS along with any restrictions regarding the UAS flights. PIC 

training will involve 10 hrs of flight training and directly involve the DJI Phantom 3. 

PIC will be required to have flown the UAS within 90 days of the current flight. PIC 

outside of the required currency will be required to conduct a minimum of 1 hr of flight 

with 10 takeoff/landing sequences at a remote site before conducting flights under this 

exemption. All pilot training will be documented in the Oak Tree Capital LLC Pilot and

Aircraft Logs.

B. Proposed Operations: All proposed UAS operations will be conducted over industrial 

sites within the state of Texas located away from residential areas. All flights will be 

conducted under VFR conditions during daylight hours with wind speeds less than 15 

knots. All flights will remain in visual line of sight to the PIC (VLOS) and Observer 

(VO). All operations will occur over private property with the owner’s prior consent.

C. Limitations: Altitudes will be limited to below 400 ft agl and the locations of the 

industrial sites will be more than 5 miles from public airports with operating towers, 

more than 3 miles from public airports without towers and more than 1 mile from 

private airports. Operations within 1 mile of private airports will only be conducted if 

there is a communications procedure between the airport owner and Oak Tree Capital 

LLC to minimize risk. 

Prior to any flight, the UAS will undergo a preflight inspection which includes checking 

the maintenance log book to verify that all reported maintenance issues have been 

resolved before the current flight. Before system power up, the status of the available 

batteries will be verified and only used if the level of charge is sufficient for the planned 

flight. In addition, the flight area will be cleared of all non-essential personnel. After 

system power up, the system calibration procedures will be followed as per manufacture 

guidelines regarding the compass and GPS calibration. Upon successful calibration, the 

PIC with VO will double check to verify the flight area is cleared of personnel and 

spectators before the propellers on the UAS begin to turn. Initially, the UAS will be 

hovered 12-18” off the ground for the final check of all systems before the data 

collection flight is initiated. Only then will the UAS depart the takeoff/landing area for 

the designated mission. A VO will be required for all flights standing in close proximity 
to the PIC with the responsibility to report to the PIC any issues which have the potential 

to interfere with the flight and the safety of surrounding individuals and objects. Upon 

mission completion, the UAS will be inspected and any maintenance issues found will 

be entered into the log book to be addressed before the next series of flights. Flight is 

controlled on 2.40-2.483 GHz and video downlink on 2.4 GHz ISM. These frequencies 

have been approved by FCC for use in this manner.

 All flights will be conducted with a PIC and a visual observer (VO).

 All personnel and spectators will be kept out of the flight area during the flight

operations and will be restricted to a predesignated safe site.

 With an FAA granted exemption, Oak Tree Capital LLC will obtain an Air

Traffic Organization (ATO) issued Certificate of Waiver or Authorization

(COA) for each UAS operation if required.

 In accordance with the COA, Oak Tree Capital LLC will request a Notice to 

Airmen (NOTAM) not more than 72 hours in advance, but no less than 48 hours 

prior to the operation.

 UAS flights will be terminated at 30 minutes or when battery power is reduced to 

25%, whichever comes first.

 When necessary, the UAS may also be programmed to not fly outside of a

designated, controlled area.

 The UAS has the capability to hover in place, and move in the horizontal and 

vertical planes simultaneously.

 The PIC will routinely reference A UAS Flight Checklist during operations to 

ensure the maintenance and airworthiness of the aircraft, and to ensure general 

safety during flight operations.

 Oak Tree Capital LLC will follow the UAS manufacturer’s maintenance,

overhaul, replacement, inspection, and life limit requirements.

C. Unmanned Aircraft System

Oak Tree Capital LLC proposed UAS operations would use a DJI Phantom 3 quadcopter. The 

payload will be a lightweight gimbal mounted camera mounted under the UAS. Gross weight 

will remain below 3 lbs. The aforementioned Phantom 3 utilizes the DJI Naza-M V2 flight 

control system. The aircraft has the capability to hover, and move in the vertical and horizontal

plane simultaneously. The aircraft is equipped with a global positioning system (GPS), Inertial 

Measurement Unit (IMU), and Compass that work in unison to stabilize the aircraft and render 

safety features. The aircraft can be programmed to not fly above 400 feet AGL and to not fly 
outside of a pre-determined flight zone. These systems will also initiate the failsafe function. If 

the aircraft loses the signal from the transmitter, the GPS system will automatically initiate the

failsafe mode and fly the aircraft back to a pre-determined location and land automatically.

V. Regulations from which Exemption is Requested

Oak Tree Capital LLC seeks exemption of the following FAR’s

14 CFR Part 21, Subpart H: Airworthiness Certificates and 14 CFR §

91.203(a)(1)

14 CFR § 61.56 Flight review

14 CFR § 61.113: Private pilot privileges and limitations: Pilot in command

14 CFR § 91.7(a): Civil aircraft airworthiness

14 CFR § 91.119(c): Minimum safe altitudes

14 CFR § 91.121: Altimeter settings

14 CFR § 91.151(a): Fuel requirements for flight in VFR conditions (day)

14 CFR §§ 91.405(a): Maintenance required; 91.407(a)(1): Operation after 

maintenance, preventative maintenance, rebuilding, or alteration;

91.409(a): Inspections; 91.417 (a)(b): Maintenance records

14 CFR Part 21; Subpart H: Airworthiness Certificates and 14 CFR §91.203(a)(1)

Oak Tree Capital LLC requests an exemption from 14 CFR Part 21, Subpart H, which

establishes the procedures for attaining airworthiness certificates required by 14 CFR §

91.203(a)(1). The Reform Act allows the FAA to exempt aircraft from the requirement

of an airworthiness certificate in consideration of the size, weight, speed, operational

capability, and proximity to airports and populated areas of the particular UAS.

Equivalent Level of Safety: The UAS to be operated is the DJI Phantom 3, weighs less 

than 3 pounds including payload, carries no pilot or passengers, carries no flammable liquid 

fuels, and operates within a pre-determined flight zone. Furthermore, the PIC and VO will 

determine the airworthiness of the Phantom 3 prior to each flight, by adhering to safety 

guidelines set forth in the Phantom 3 User Manual, and the UAS Flight Checklist.

14 CFR § 61.56: Flight review

Oak Tree Capital LLC requests exemption from 14 CFR § 61.56, which subjects the pilot in

command (PIC) to flight review requirements consisting of one (1) hour of flight time in an 

aircraft in which the PIC is rated on his or her pilot certificate and one (1) hour of ground 

training. The flight review requirements set forth in 14 CFR § 61.56 would have little
relevance to the safe operation of the small UAS intended for use in Oak Tree Capital 

LLC’s operations.

Equivalent Level of Safety: An equivalent level of safety will be achieved by following

training procedures to ensure the PIC skill level is sufficient to conduct safe flights. PIC

will have to demonstrate on a 90 day basis, safe takeoff/landings, precise maneuvering skills 

and emergency procedures. Pilots need to log 60 min of flight time and 10 takeoff/landing 

for each 90 day period to remain current.

14 CFR § 61.113: Private pilot privileges and limitations: Pilot in command

Oak Tree Capital LLC requests an exemption from 14 CFR § 61.113, limiting private pilots

and sport pilots to non-commercial operations. However, the UAS will not carry pilots, 

passengers, or any living thing and be restricted to a flight zone that is predetermined and 

controlled as to access. The risks associated with the UAS operations are far diminished 

from the risks associated with commercial operations envisioned by 14 CFR Part 61, when 

drafted.

Equivalent Level of Safety: Proposed UAS operations will obtain an equivalent level of 

safety, as the aircraft will carry no living thing on board. The level of safety provided 

exceeds that provided by a single individual holding a commercial pilot certificate operating 

a conventional aircraft.

14 CFR § 91.7(a) Civil aircraft airworthiness

Oak Tree Capital LLC requests an exemption from 14 CFR § 91.7(a), which requires that 

civil aircraft be in airworthy condition to be operated. Since the Phantom 3 has no

airworthiness certificate, there is no regulatory standard for determining the airworthiness

of the UAS.

Equivalent Level of Safety: In accordance with 14 CFR § 91.7(b), the PIC will determine 

whether the UAS is in a condition for safe flight by complying with procedures in the 

Phantom 3 User Manual, and the UAS Flight Checklist.

14 CFR § 91.119(c) Minimum safe altitudes

Oak Tree Capital LLC requests an exemption from 14 CFR § 91.119(c), which establishes

minimum safe altitudes “over other than congested areas,” in which an aircraft below 500

feet AGL may not operate closer than 500 feet to any person, vessel, vehicle, or structure. 

In order to provide the intended inspection services, the UAS will be operated below 500

feet AGL and closer than 500 feet to persons, vessels, vehicles, and structures.

Equivalent Level of Safety: Operation of the UAS is safer than traditional aircraft due to 

its small size, lightweight, lack of flammable fuel, and limited speed. Additionally, no 

flight will occur without the permission of the property owner. With advanced notice 

given, all property owners and affected persons will be aware of all UAS operations. The 

UAS will be operated in a restricted and controlled area. Under no circumstances will the 

UAS be operated so close to persons, vessels, vehicles, or structures as to present an 

undue hazard.
14 CFR § 91.121: Altimeter settings

Oak Tree Capital LLC requests an exemption from 14 CFR § 91.121, which states that 

when operating below 18,000 feet MSL, aircraft not equipped with a radio shall set an 

altimeter to the elevation of the departure airport or an appropriate altimeter setting 

available before departure. An exemption is required because the UAS is not equipped 

with a user configurable barometric altimeter.

Equivalent Level of Safety: Complying with the pre-flight procedures in the Phantom 3

User Manual and verifying the GPS altitude before each flight will provide an equivalent 

level of safety. During flight, the Phantom 3 provides an Above Ground Level (AGL) 

reading in relation to its takeoff location. The altitude will be closely monitored during 

flight, keeping the UAS below 400 feet AGL, ensuring operations at safe altitudes. 

Furthermore, the UAS will remain within VLOS of the PIC and VO at all times.

14 CFR § 91.151(a): Fuel requirements for flight in VFR conditions (day)

Oak Tree Capital LLC requests an exemption from 14 CFR § 91.151(a), which states 

than no person may begin a flight unless there is enough fuel to fly to the first point of 

intended landing and, assuming normal cruising speed to fly after that for at least 30 

minutes. The battery powering the Phantom 3 provides approximately 40 minutes of total 

flight time. It is therefore impossible for the UAS to meet the requirement of this section.

Equivalent Level of Safety: Planning all flights with the intent to land after 30 minutes 

or at 25% battery power remaining, whichever comes first, will provide an equivalent 

level of safety. Additionally, unlike traditional aircraft, the UAS will always be within 

VLOS and have no significant transit time to or from the landing area. Oak Tree Capital 

LLC will only operate the UAS in daytime VFR conditions within VLOS.

14 CFR §§ 91.405(a) Maintenance required; 91.407(a)(1) Operation after maintenance, 

preventative maintenance, rebuilding, or alteration; 91.409(a) Inspections; 91.417(a) and 

(b) Maintenance records.

Oak Tree Capital LLC requests an exemption from the maintenance and inspections

requirements of 14 CFR § 91.405(a), 91.407(a)(1), 91.409(a), and 91.417(a) and (b). 

These regulations apply to maintenance of aircraft holding an airworthiness certificate,

which the Phantom 3 does not have. Therefore an exemption is required.

Equivalent Level of Safety: An equivalent level of safety will be achieved by ensuring 

that the UAS is in working order prior to initiating flight, performing required 

maintenance, and keeping a log of any maintenance performed. All maintenance and 

inspections will be performed in accordance with the Phantom 3 User Manual.

VI. Public Interest

An exemption for Oak Tree Capital LLC to use UAS commercially would help to fulfill

Congress’ goal in assessing whether certain UAS may operate safely in the NAS.

The exemption is in the public interest as it offers a safer and more cost-effective option
1. Small UAS offer a safer and more cost effective option for perimeter security, deterring crime 

without risk to onsite security guards and lowering the cost of active crime deterrence. This will 

enable small businesses who previously could not afford a human security guard to

employ a better crime deterrent than a simple CCTV system. 

2. Small UAS reduce the risk to responding law enforcement officers by providing a real time 

location and video feed which increases the officer’s situational awareness and allows them to 

assess the situation before entering the area under heightened stress, thus enabling them to 

respond with an appropriate level of force.

3. Small UAS systems will not overstep their mandate to observe and report events by trying to 

stop petty crimes in progress, further reducing the risk of injury to both the security guard and 

the intruder.

VII. Privacy

As mentioned above, all flights will occur in an area that is pre-determined, limited, and

controlled as to access. Privacy will not be an issue where flights occur over private

property. 

VIII. Publication Summary

The petitioner, Oak Tree Capital LLC seeks exemption from the following rules to commercially 

operate UAS in the National Airspace to develop, test and demonstrate small unmanned aircraft 

systems (sUAS) for the industrial security sector within the borders of the United States.

14 CFR Part 21, Subpart H: Airworthiness Certificates and 14 CFR § 91.203(a)(1)

14 CFR § 61.56 Flight review

14 CFR § 61.113: Private pilot privileges and limitations: Pilot in command

14 CFR § 91.7(a): Civil aircraft airworthiness

14 CFR § 91.119(c): Minimum safe altitudes

14 CFR § 91.121: Altimeter settings

14 CFR § 91.151(a)(1)(2): Fuel requirements for flight in VFR conditions (day)

14 CFR §§ 91.405(a): Maintenance required; 91.407(a)(1): Operation after maintenance, 

preventative maintenance, rebuilding, or alteration;

91.409(a): Inspections; 91.417 (a)(b): Maintenance records

X. Conclusion

Oak Tree Capital LLC respectfully submits this request for expedited exemption under

Section 333 of the Reform Act. Given the small size of the UAS, the willingness of

Oak Tree Capital LLC to gain all necessary permissions, and the commencement of clear and

well planned operations and maintenance programs, the commercial, UAS use by

Oak Tree Capital LLC causes no threat to the general public or others using the National

Airspace.