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 sm all 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 ph one: 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 un manned aircraft systems into the national airspace system.” Pursuant to Section 333 of the Reform Act, the FAA Administrator is to consider wh ether 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 proximit y to airports and populated areas; and

Operation of the UAS within the visual line of sight of the operat or.

Pursuant to 49 U.S.C. § 44701 (f), the FAA Admin istrator 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 statuto ry criteria and other potential relevant

factors are satisfied. The proposed operations would permit the use of small and relatively inexpensive U AS 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 ha s the ability to hove r and move in the horizontal and vertical planes simultaneously. The UA S will not be operated at speeds greater than 27 knots. The UAS will be opera ted 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 med ical 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 bef ore 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 com munications 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 h ave 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 a rea 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 proximityto 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 a nd video downlink on 2.4 GHz ISM. T hese 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

Airme n (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 P IC 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 quad copter . The payload will be a lightweight gimbal mounted camera mounted under the UAS

. Gros s 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 flyoutside of a pre

- determined flight zone. These systems will also initiate the fails afe function. If

the aircraft l oses 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 automa tically.

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 an d 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 littlerelevance 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 w ill be achieved by following training procedures to ensure the PIC skill level is suffi cient 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 cu rrent.

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 h olding 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 5 00

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 p roperty 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 n o 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

wi th 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, th e 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 require d; 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 option1. 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

locati on 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 no t 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 p re

- 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): M aintenance 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.