### July 28

, 2015

Exemption No. 12182 Regulatory Docket No. FAA

–20 15

– 1778

Mr. Jack D Petersen, Jr Coldwater Group, LLC 825 Great Northern B ou l ev ard

, Suite 320 Helena, MT 59601

Dear Mr. Petersen :

This letter is to inform you that we have granted your request for exemption. It transmits our decision, explains its basis, and gives you the conditions and limitations of the exemption, including the date it ends.

By letter dated April 28, 2015 , you petitioned the Federal Aviation Administration (FAA) on behalf of Coldwater Group, LLC (hereinafter petitioner or operator) for an exemption . The petitioner requested to operate an unmanned aircraft system (UAS) to conduct aerial photography and videography

.
See Appendix A for the petition submitted to the FAA des cribing the proposed operations and the regulations that the petitioner seeks an exemption

.
The FAA has determined that good cause exists for not publishing a summary of the petition in the Federal Register because the requested exemption would not set a precedent, and any delay in acting on this petition woul d be detrimental to the petitioner

.

Airworthiness Certification

The UAS proposed by the petitioner are the DJI Inspire 1 and 3D Robotics Fixed Wing Plane

.
The petitioner requested relief from 14 CFR part 21, Certification procedures for products and parts, Subpart H

— Airworthiness Certificates

. In accordance with the statutory criteria provided in Section 333 of Public Law 112

− 95 in reference to 49 U

. S

. C

. § 44704, and in consideration of the size, weight, speed, and limited operating area associated with the

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aircraft and its operation, the Secretary of Transportation has determined that this aircraft meets the conditions of Section 333. Therefore, the FAA fi nds that the requested relief from 14 CFR part 21

, Certification procedures for products and parts, Subpart H

— Airworthiness Certificates , and any associated noise certification and testing requirements of part 36, is
not necessary.

The Basis for Our Decis ion

You have requested to use a UAS for aerial data collection 1



### . The FAA has issued grants of exemption in circumstances similar in all material respects to those presented in your petition. In Grants of Exemption No s

. 11062 to Astraeus Aerial ( see Docket No. FAA−2014−0352), 11109 to Clayco, Inc. ( see Docket No. FAA

− 2014

− 0507), 11112 to VDOS Global, LLC ( see Docket No. FAA−2014−0382), and 11213 to Aeryon Lab s , Inc. ( see Docket No. FAA−2014−0642), the FAA found that the enhanced safety achieved using an unmanned aircraft (UA) with the specifications described by the petitioner and carrying no passengers or crew, rather than a manned aircraft of significantly greater proportions, carrying crew in addition to flammable fuel, gives the FAA good cause to find that the UAS operation enabled by this exemption is in the public interest.

Having reviewed your reasons for requesting an exemption, I find that

—

 They are similar in all material respects to relief previously requested in Grant of Exemption Nos. 11 062, 11109, 11112, and 11213 ;

 The reasons stated by the FAA for granting Exemption Nos. 11062, 11109, 11112, and 11213 also apply to the situation you present; and

 A grant of exemption is in the public interest.

Our Decision

In consideration of the foregoing, I find that a grant of exemption is in the public interest. Therefore, pursuant to the authority contained in 49 U.S.C. 106(f), 40113, and 44701, delegated to me by the Administrator, Coldwater Group, LLC is granted an exemption from 14 CFR §§ 61.23(a) and ( c ), 61.101(e)(4 ) and (5), 61.113(a), 61.315(a) , 91.7(a), 91.119(c), 91.121, 91.151(a)(1), 91.405(a), 91.407(a)(1), 91.409(a)(1) and (2), and 91.417(a) and (b), to the extent necessary to allow the petitioner to operate a UAS to perform aerial data collection

. This exemption is subject to the conditions and limitations listed below.

1 Aerial data collection includes any remote sensing and measuring by an instrument(s) aboard the UA. Examples include imagery (photography, video, infrared, etc.), electronic measurement (precision surveying, RF analysis, etc.), chemical measurement (particulate measurement, etc.), or any other gathering of data by instruments aboard the UA.

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Conditions and Limitations

In this grant of exemption, Coldwater Group, LLC is hereafter referred to as the operator.

Failure to comply with any of the conditions and limitations of this grant of exemption will be grounds for the immediate suspension or rescission of this exemption.

1. Operations authorized by this grant of exemption are limited to the DJI Inspire 1 and 3D Robotics Fixed Wi ng Plane when weighing less than 55 pounds including payload. Proposed operations of any other aircraft will require a new petition or a petition to amend this exemption

.

2. Operations for the purpose of closed

- set motion picture and television filming are
not permitted.

3. The UA may not be operated at a speed exceeding 87 knots (100 miles per hour). The exemption holder may use either groundspeed or calibrated airspeed to determine compliance with the 87 knot speed restriction. In no case will the UA be operated at airspeeds greater than the maximum UA operating airspeed recommended by the aircraft manufacturer.

4. The UA must be operated at an altitude of no more than 400 feet above ground level (AGL). Altitude must be reported in feet AGL.

5. The UA must be operated within visual line of sight (VLOS) of the PIC at all times. This requires the PIC to be able to use human vision unaided by any device other than corrective lenses, as specified on the PIC’s FAA

- issued airman medical certificate or U.S. driver’s license.

6. All operations must utilize a visual observer (VO). The UA must be operated within the visual line of sight (VLOS) of the PIC and VO at all times. The VO may be used to satisfy the VLOS requirement as long as the PIC always maint ains VLOS capability. The VO and PIC must be able to communicate verbally at all times ;

electronic messaging or texting is not permitted during flight operations. The PIC must be designated before the flight and cannot transfer his or her designation fo r the duration of the flight. The PIC must ensure that the VO can perform the duties required of the VO.

7. This exemption and all documents needed to operate the UAS and conduct its operations in accordance with the conditions and limitations stated in thi s grant of exemption, are hereinafter referred to as the operating documents. The operating documents must be accessible during UAS operations and made available to the Administrator upon request. If a discrepancy exists between the conditions and limitations in this exemption and the procedures outlined in the operating documents,

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the conditions and limitations herein take precedence and must be followed. Otherwise, the operator must follow the procedures as outlined in its operating documents. The operator may update or revise its operating documents. It is the operator’s responsibility to track such revisions and present updated and revised documents to the Administrator or any law enforcement official upon request. The operator must also present up dated and revised documents if it petitions for extension or amendment to this grant of exemption. If the operator determines that any update or revision would affect the basis upon which the FAA granted this exemption, then the operator must petition for an amendment to its grant of exemption. The FAA’s UAS Integration Office (AFS− 80) may be contacted if questions arise regarding updates or revisions to the operating documents.

8. Any UAS that has undergone maintenance or alterations that affect the UAS op eration or flight characteristics, e.g.

, replacement of a flight critical component, must undergo a functional test flight prior to conducting further operations under this exemption. Functional test flights may only be conducted by a PIC with a VO and mu st remain at least 500 feet from other people. The functional test flight must be conducted in such a manner so as to not pose an undue hazard to persons and property.

9. The operator is responsible for maintaining and inspecting the UAS to ensure that it i s in a condition for safe operation.

10. Prior to each flight, the PIC must conduct a pre

- flight inspection and determine the UAS is in a condition for safe flight. The pre

- flight inspection must account for all potential discrepancies, e.g.

, inoperable comp onents, items, or equipment. If the inspection reveals a condition that affects the safe operation of the UAS, the aircraft is prohibited from operating until the necessary maintenance has been performed and the UAS is found to be in a condition for safe flight.

11. The operator must follow the UAS manufacturer’s maintenance, overhaul, replacement, inspection, and life limit requirements for the aircraft and aircraft components.

12. Each UAS operated under this exemption must comply with all manufacturer safety bulletins.

13. Under this grant of exemption, a PIC must 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, a possession, or the Federal government. The PIC must also meet the flight revi ew requirements specified in 14 CFR § 61.56 in an aircraft in which the PIC is rated on his or her pilot certifi cate.

### 5

14. The operator may not permit any PIC to operate unless the PIC demonstrates the ability to safely operate the UAS in a manner consistent with how the UAS will be operated under this exemption, including evasive and emergency maneuvers and maintaining appropriate distances from persons, vessels, vehicles and structures. PIC qualification flight hours and currency must be logged in a manner consistent with 14 CFR § 61.51(b). Flights for the purposes of training the operator’s PICs and VOs (traini ng, p roficiency, and experience

- building) and determining the PIC’s ability to safely operate the UAS in a manner consistent with how the UAS will be operated under this exemption are permitted under the terms of this exemption. However, training operations may only be conducted during dedicated training sessions. During traini ng, proficiency, and experience

- building flights, all persons not essential for flight operations are considered nonparticipants, and the PIC must operate the UA with appropriate distanc e from nonparticipants in accordance with 14 CFR § 91.119.

15. UAS operations may not be conducted during night, as defined in 14 CFR § 1.1. All operations must be conducted under visual meteorological conditions (VMC). Flights under special visual flight rules (SVFR) are not authorized.

16. The UA may not operate within 5 nautical miles of an airport reference point (ARP) as denoted in the current FAA Airport/Facility Directory (AFD) or for airports not denoted with an ARP, the center of the airport symbo l as denoted on the current FAA

- published aeronautical chart, unless a letter of agreement with that airport’s management is obtained or otherwise permitted by a COA issued to the exemption holder. The letter of agreement with the airport management must be mad e available to the Administrator or any law enforcement official upon request.

17. The UA may not be operated less than 500 feet below or less than 2,000 feet horizontally from a cloud or when visibility is less than 3 statute miles from the PIC.

18. If the UAS loses communications or loses its GPS sign al, the UA must return to a
pre

- determined location within the private or controlled

- access property.

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

20. The PIC is prohibited from beginning a flight unless (considering wind and forecast weather conditions) there is enough available power for the UA to conduct the intended operation and to operate after that for at least five minutes or with the reserve power recommended by the manu facturer if greater.

21. Air Traffic Organization (ATO) Certificate of Waiver or Authorization (COA). All operations shall be conducted in accordance with an ATO

- issued COA. The exemption holder may apply for a new or amended COA if it intends to conduct
op erations that cannot be conducted under the terms of the attached COA

.

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22. All aircraft operated in accordance with this exemption must be identified by serial number, registered in accordance with 14 CFR part 47, and have identification (N−Number) markings in accordance with 14 CFR part 45, Subpart C. Markings must be as large as practicable.

23. Documents used by the operator to ensure the safe operation and flight of the UAS and any documents required under 14 CFR §§ 91.9 and 91.203 must be available to the PIC at the Ground Control Station of the UAS any time the aircraft is operating. These documents must be made available to the Administrator or any law enforcement official upon request.

24. The UA must remain clear and give way to all manned aviation operations and activities at all times.

25. The UAS may not be operated by the PIC from any moving device or vehicle.

26. All Flight operations must be conducted at least 500 feet from all nonparticipating persons, vessels, vehicles, and structures unless:

a. Barriers or structures are present that sufficiently protect nonparticipating persons from the UA and/or debris in the event of an accident. The operator must ensure that nonparticipating persons remain under such protection. If a situation arises where nonparticipating persons leave such protection and are within 500 feet of the UA, flight operations must cease immediately in a manner ensuring the safety of nonparticipating persons ; and b. The owner/controller of any vessels, vehicles or structures has granted permission for operating closer to those objects 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

.
The PIC, VO, operator trainees or essential persons are not considered nonparticipating persons under this exemption.

27. All operations shall be conducted over private or control led

- access property with permission from the property owner/controller or authorized representative. Permission from property owner/controller or authorized representative will be obtained for each flight to be conducted.

28. Any incident, accident, or flight operation that transgresses the lateral or vertical boundaries of the operational area as defined by the applicable COA must be reported to the FAA's UAS Integration Office (AFS− 80) within 24 hours. Accidents must be reported to the National Transportation Safety Board (NTSB) per instructions contained on the NTSB Web site: www.ntsb.gov

.

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If this exemption permits operations for the purpose of closed

- set motion picture and television filming and production, the following additional conditions and limitations apply.

29. The operator must have a motion picture and television operations manual (MPTOM) as documented in this grant of exemption.

30. At least 3 days before aerial filming, the operator of the UAS affected by this exemption must submit a written Plan of Activities to the local Flight Standards District Office (FSDO) with jurisdiction over the area of proposed filming. The 3

- day notification may be waived with the concurrence of the FSDO. The plan of activities must include at least the following:

a. Dates and times for all flights; b. Name and phone number of the operator for the UAS aerial filming conducted under this grant of exemption;

c. Name and phone number of th e person responsible for the on

- scene operation of the UAS; d. Make, model, and serial or N−Number of UAS to be used;

e. Name and certificate number of UAS PICs involved in the aerial filming; f. A statement that the operator has obtained permission from property owners and/or local officials to conduct the filming production event; the list of those who gave permission must be made available to the inspector upon request;
g. Signature of exemption holder or representative; and h. A description of the flight activity, including maps or diagrams of any area, city, town, county, and/or state over which filming will be conducted and the altitudes

es sential to accomplish the operation.

31. Flight operations may be conducted closer than 500 feet from participating persons consenting to be involved and necessary for the filming production, as specified in the exemption holder’s MPTOM.

Unless otherwise spe cified in this grant of exemption, the UAS, the UAS PIC, and the UAS operations must comply with all applicable parts of 14 CFR including, but not limited to, parts 45, 47, 61, and 91.

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This exemption terminates on July 31, 2017 , unless sooner superseded or rescinded.

Sincerely, / s/ John S. Duncan Director, Flight Standards Service

EnclosuresFAA Exem ption Rulem aking

Section 333 Of The FAA Reform Act and Part 11

Prepared by

Jack D Petersen, Jr

April 28th, 2015

825 Great Northern Blvd. Suite 320 Helena, MT 59601 406

- 461

- 8883 pepper@coldwaterpr.com

Attention: United States Secretary of TransportationMr. Anthony R. Foxx

1200 New

Jersey Ave, SE Wa shington DC 20590

Re: Exem ption Request Section 333 of the FAA Reform Act and Part 11 of the Federal Aviation Regulations from 14 CFR 45.23(b); 14 CFR P art 21; 14 CFR 61.113 (a) & (b); 91.7 (a); 91.9 (b) (2); 91.103 (b); 91.109; 91.119; 91.121; 91.151 (a); 91.203 (a) & (b); 91.409 (a) (2); 91.417 (a) & (b)

Dear Mr. Secretary,

Pursuant to Section 333 of the FAA Modernization and Reform Act of 2012 (the Reform Act) and 14 CFR Part 11, Coldwater Group, LLC., a Montana Lim ited Liability Corporation, consultant, and operator of Small Unm anned Aircraft System s (“sUASs”) equipped to c onduct aerial photography and videography purposes, hereby applies for an
exem ption fro m the listed Federal Aviation Regulations (“FARs”) to allow commercial operation of its sUASs, so long as such operations are conducted within and under the conditions o utlined herein or as m ay be established by the FAA as required by Section 333.

As described mo re fully below

, the requested exem ption would perm it the operation of small, unm anned and relatively inexpensive sUAS under controlled conditions in airspace th at is 1) lim ited 2) predeterm ined and 3) controlled as to access. Approval of this

exem ption would thereby fulfill the Secretary of Transportation’s (the responsibilities to “...establish requirem ents for the safe operation of such aircraft system s in the national airspace system .” Section 333 (c) of the Reform Act.

Coldwater Group

, LLC requests to use the Bixler 3 fixed wing airplane equipped with A PM autopilot for aerial imaging. The FAA has previously issued Grants of Exem ption in circum stances sim ilar in nearly all ma terial respects to those presented in this petition. In previous Grants of Exem ption [Nos. 11062 to Astraeus Aerial (see Docket No. FAA −2014−0352 ), 11109 to Clayco, Inc. (see Docket No. FAA −2014−0507), 11112 to VDOS Global, LLC (see Docket No. FAA −2014−0382), and 11213 to Aeryon Labs, Inc. (see Docket No. FAA −2014−0642)], the FAA found that the enhanced safety achieved using an
unm anned aircraft wi th the specifications described by the petitioners, carrying no passengers or crew

— rather than a ma nned aircraft of far greater proportions, carrying crew and flammable fuel

—gave the FAA good cause to find that the UAS operations were in the public interes t. Coldwater Group

, LLC feels that the reasons stated by the FAA for granting Exem ption Nos. 11062, 11109, 11112, and 11213 would also reasonably apply to the situation presented by this petition. Additionally, we feel that considering the enhanced safety features provided by the Bixler 3 Fixed Wi ng Airplane equipped with the ArduPlane UAS Navigation system permitting return hom e safety features

, as well as the cost effectiveness of sm all UAS aerial photography, a grant of exem ption would be in the public i nterest.

The nam e and address of the applicant is: Coldwater Group

, LLC Jack D Petersen, Jr Phone: 406

- 461

- 8883 Em ail: pepper@coldwaterpr.com Address: 825 Great Northern Blvd, Suite 320 , Helena, MT, 59601.Regulations from which the exem ption is request ed:

14 CFR Part 21 14 CFR 45.23 (b) 14 CFR 61.113 (a) & (b) 14 CFR 91.7 (a) 14 CFR 91.9 (b) (2) 14 CFR 91.103 14 CFR 91.109 14 CFR 91.119 14 CFR 91.121 14 CFR 91.151 (a) 14 CFR 91.203 (a) & (b) 14 CFR 91.405 (a) 14 CFR 407 (a) (1) 14 CFR 409 (a) (2) 14 CFR 417 (a) & (b) This exem ption application is expressly subm itted to fulfill Congress’ goal in passing Section 333 (a) through (c) of the Reform Act. This directs the Secretary of Transportation to consider whether certain unm anned aircraft systems ma y operate safely in the national airspace system ( NAS) before com pletion of the rulem aking required under Section 332 of the Reform Act. In making this determ ination, the Secretary is required to determ ine wh ich types of UASs do not cre ate 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 proxim ity to airports and populated areas; and

• Operation of the UAS within Visual Line of Sight (VLOS) of the Pilot and Observers. Reform Act §333 (a). Lastly, if the Secretary determ ines that such vehicles “m ay operate safely in the national airspace system

, the Secretary shall establish requirem ents for the safe operation of such aircraft in the national airspace system.” Id. §333 (c) (em phasis added). The Federal Aviation Act expressly grants the FAA the authority to issue

exem ptions. This statutory authority by its terms includes exem pting civil ai rcraft, as the term is def ined under §40101 of the Act; that includes sUASs, fro m the requirem ent that all civil aircraft mu st have a current airworthiness certificate. The Adm inistrator ma y grant an
exem ption fro m a requirem ent of aregulation prescribed under subsection (a) or (b) of this section or any sections 44702

- 44716 of this title if the Adm inistrator fi nds the exem ption in the public interest. 49 U.S.C. §44704; 14 CFR §91.203 (a) (1).

Coldwater Group wi ll operate a Bixler 3 fixed wing aircraft, we ighing less than 60oz including sensor payload. They operate their aircraft under norm al conditions at a speed of

no mo re than 17 knots

. They will ma nually operate only in Visual Line of Sight and will operate only within the operating param et ers as described in the Operating Manual attached as Attachm ent 1.Adherence to the Operating Manual will insure that the sUAS will “not create a

hazard to the national airspace system or the public.”

Given the sm all size and weight of the sUAS involve d and the restricted sterile environm ent within which they will operate, the applicant falls squarely within that zone of safety (an equivalent level of safety) in wh ich Congress envisioned that the FAA must, by

exem ption, allow commercial operations of UA Ss to comm ence immediately. Also due to the size of the UASs and the areas in which the relevant sUAS will operate, approval of the application presents no national security issue. Given the clear direction in Section 333 of the Reform Act, the authority c ontained in the Federal Aviation Act, as am ended; the strong equivalent level of safety, surrounding the proposed operations, and significant public benefit, including enhanced safety, reduction in environm ental im pact, including reduced

em issions associat ed with allowing UASs for educational and ma rketing operations, (as opposed to full scale aircraft), the granting of the requested exem ptions is in the public interest. Accordingly, the applicant respectfully requests that the FAA grant the requested

exem p tion w ithout delay.

AIRCRAFT AND EQUIVALENT LEVEL OF SAFETY The applicant proposes that the

exem ption requested herein apply to civil aircraft that have the characteristics and that operate with the lim itations listed herein. These lim itations provide fo r at least an equivalent or possibly higher level of safety to operations under the current regulator structure because the proposed operations represent a safety enhancem ent to the already safe filming operations conducted with conventional aircraft. Thes e lim itations and condition to which Coldwater Group

, LLC agrees to be bound when conducting commercial operations under an FAA issued exem ption include: 1. The sUAS w ill weigh less than 5 lbs. 2. Flights will be operated manually wit hin visual line of s ight (VLOS) of the Pilot and aircrew (Spotter / Observer). 3. Maxim um t otal flight tim e for each operational flight will be 25 mi nutes. Flights will be term inated at 25% battery power reserve should that occur prior to the 25 m inute lim it. 4. Flights wi ll be operated at an altitude of no more than 200 feet AGL, though mo st operations will be conducted within 50 feet of the ground 5. Minim um two (2) ma n crew for each sUAS operation will consist of the Pilot and Spotter / Observer. In most cases the third a ircrew me mber will serve as the Safety Officer. 6. The sUAS Pilot will be an FAA licensed airm an with a sports, private

, or commercial certification and the Spotter/Observer will hold a valid third class me dical or driver ’ s license issued by a US State

. 7. The sUAS Pilot will serve as Pilot in Command (PIC). If a pilot certificate holder, other than the sUAS Pilot, possesses the necessary PIC qualifications and is also present, that person can also be designated as PIC. 8. The sUAS will only operate with in an area as defined in the Manual on pages 45

- 48. Additionally, the sUAS will only operate under 200ft AGL, and outside a 5 statute mi le radius of any airport. The sUAS will never enter any MOA or Restricted Airspace, nor shall it violate any TFR as outl ined by the FAA. 9. A pre

- flight briefing will be conducted in regard to the planned sUAS operation prior to each day’s flying / recording activities. It will be ma ndatory that all personnel who will be performing duties as “flight crew” be present for th is briefing.10. The Operator will obtain the consent of all persons involved in the film ing and

ensure that only consenting persons will be allowed within 100 feet of the flight operation, and this radius ma y be reduced to 30 feet based upon an equivalen t level of safety determ ination. 11. Pilot, and Spotter (Observer) will have been trained in operation of sUAS generally and received up

- to

- date inform ation on the particular sUAS to be operated as required. 12. Spotter (Observer) and Pilot will at all tim es be able to communicate by voice or radio. 13. Wr itten and/or oral perm ission fro m the relevant property holders will be obtained. 14. If the sUAS loses communications or loses its GPS signal, the UAS wil l have capability to return to a predeterm ined location and land. 15. The sUAS will have the capability to abort a flight in case of unpredicted obstacles or em ergencies.

**14 CFR Part 21, Subpart H: A irworthiness Certificates 14 CFR §91.203 (a) (1)** 

Subpart H, entitled Airworthiness Certificates, establishes the procedural requirem ents for the issuance of airworthiness certificates as required by FAR §91.203 (a) (1). Given the size and lim ited operating area associated with the aircraft to be utilized by the Applicant, an exemption fro m Part 21 Subpart H me ets the requirem ents of a n equivalent level of safety under Part 11 and Section 333 of the Reform Act. The Federal Aviation Act (49 U.S.C. §44701 (f)) and Section 333 of the Reform Act both authorize the FAA to exem pt aircraft fro m the requirem ent capability, and proximity to airports and populated areas of the particular UAS. In all cases, an analysis of these criteria dem onstrates that the UAS operated without an airworthiness certificate, in the re stricted environm ent and under the conditions proposed will be at least as safe, or safer, than a conventional aircraft (f ixed

- wing or rotorcraft) operating with an airworthiness certificate without the restrictions and conditions proposed.

The sUAS to b e operated hereunder is less than 5 lbs. fully loaded, carries neither a pilot nor passenger, carries no explosive ma terials or flamm able liquid fuels, and operates exclusively within a lim ited radius area as set out in the pre flight briefing / VLOS opera tions. Unlike other civil aircraft, operations under this exem ption will be tightly controlled and monitored by both the Operator, pursuant to safety requirem ents, and under the requirem ents and in compliance with local public safety requirem ents, to provi de security for the area of operation as is now done with conventional aircraft. These safety enhancem ents, whic h already apply to civil aircraft operated in connection with video production, provide a greater degree of safety to the public and property ow ners than conventional operations conducted with airworthiness certificates issued under 14 C.F.R. Part 21, Subpart H. Lastly, application of these sam e criteria dem onstrates that there is no credible threat to national security posed by the UAS, due to it s size, speed of operation, location of operation, lack of explosive ma terials or flammable liquid fuels, and inability to carry a substantial external load.

**14 CFR §45.23 (B):**Marking of the Aircraft The regulation requires: W hen marks include only th e Rom an capital

letter “N” and the registration num ber is displayed on lim ited, restricted or light

- sport category aircraft or experim ental or provisionally certificated aircraft, the operator mu st also display on that aircraft near each entrance to the ca bin, cockpit, or pilot station, in letters not less than 2 inches nor more than 6 inches high, the words “lim ited,” “restricted”, “light

- sport,” “experim ental,” or “provisional,” as applicable. Even though the UAS will have no airworthiness certificate, an exemption ma y be needed

as the UAS will have no entrance to the cabin, cockpit or pilot station on which the word “Experim ental” can be placed. Given the size of the sUAV, two

- inch lettering will be im possible. The word “Experim ental” wi ll be placed on th e fuselage in com pliance with §45.29 (f).

The equivalent level of safety wi ll be provided by having the sUAV marked on its fuselage

as required by §45.29 (f) where the Pilot, Spotter (Observer) and others working with the sUAV will see the identification of t he UAS as “Experim ental.” The FAA has issued the follow ing exem ptions to this regulation to Exem ptions Nos. 10700, 8738, 10167 and 10167A.

**14 CFR**  **§61.113 (a)**  **& (b):**  **Private Pilot**  **Privileges and**  **Limitations**

**- Pilot**  **in Command**  **(PIC)**

Sections 61.113 ( a) & (b) limit private pilots to noncommercial operations. Because the UAS will not carry a pilot or passengers, the proposed operations can achieve the equivalent level of safety of

c urrent operations by requiring the PIC operating the aircraft to have a private pilot’s license rather than a commercial pilot’s license to operate this sm all UAS. Unlike a conventional aircraft that carries the pilot and passengers, the sUAS is rem otely controlled with no living thing on board. The area of operation is contro lled and restricted, and all flights are planned and coordinated in advance as set forth in the Operating Manual. The level of safety provided by the requirem ents included in the Operating Manual me ets that provided by single individual holding a commercia l pilot’s certificate operating a conventional aircraft. The risks associated with comm ercial operations contem plated by Part 61 when drafted, that allowing operations of the sUAS as requested with a private pilot as the PIC exceeds the present level of safety achieved by 14 CFR §61.113 (a) & (b).

**14 CFR §91.7 (a): Civil A ircraft A**  **irworthiness**

The regulation requires that no person ma y operate a civil aircraft unless it is in airworthy condition. As there will be no airworthiness certificate issued for the aircraft, should this

exem ption be granted, no FAA regulatory standard will exist for dete rmining airworthiness. Given the size of the aircraft and the requirements contained in the Operating Manual for maintenance and use of safety checks prior to each flight, as set forth in the Operating Manual, an equivalent level of safety w ill be provided

. **14 CFR §91.9 (b) (2): Civil A ircraft Flight Manual in the A**  **ircraft**

Section 91.9 (b) (2) provides: No person ma y U.S.

- registered civil aircraft

... (2) For whic h an Airplane or Rotorcraft Flight Manual is not required by §21.5 of this chapter, unless thereis available in the aircraft a current approved Airplane or Rotorcraft Flight Manual, approved

manual m aterial, markings, and placards, or any com bination thereof. The sUAS, given its size and configuration has no ability or place to carry such a fl ight manual on the aircraft, not only because there is no pilot on board, but because there is no
room or capacity to carry such an item on the aircraft.

The equivalent level of safety will be ma intained by keeping the Operating Manual at the ground control point where the pilot flying the sUAS will have immediate access to it. The FAA has issued the following exem ptions to this regulation: Exem ption Nos. 8607, 8737, 8738, 9299, 9299A, 9565, 9565B, 10167, 10167A 10602, 32827, and 10700

**14 CFR §91.103: Pr eflight A** **ction**

This regulation requires each pilot in command to take certain actions before flight to insure the safety of

f light. As FAA approved flight manuals will not be provided for the aircraft an
exem ption will be needed. An equivalent level of s afety will be provided as set forth in the Operating Manual. The PIC will take all actions including reviewing weather, flight battery requirem ents, landing and takeoff distances and aircraft performance data before initiation of flight.

**14 CFR §91.109: Flight Instruction** 

Section 91.103 provides that no person ma y operate a civil aircraft (except a ma nned free balloon) that is being used for flight instruction unless that aircraft has fully functioning dual controls. SUASs and rem otely piloted aircraft, by their design do not have fully functional dual controls. Flight control is accom plished through the use of a control box that communicates with the aircraft via radio co mmunications. The FAA has approved

exem ptions for flight training without fully functional dual controls fo r a num ber of aircraft and for flight instruction in experim ental aircraft. See Exemptions Nos. 5778K & 9862A. The equivalent level of safety provided by the fact that aircraft will be piloted by a certified private pilot who has pre viously trained in remote flight areas before attem pting flight within filming distance of structures.

**14 CFR §91.119: Minimum Safe A ltitudes** 

Section 91.119 establishes safe altitudes for operation of civil aircraft. Section 91.119 (d) allows helicopters to be operated at less than the mi nim um s prescribed, provided the person operating the helicopter com plies with any route or altitudes prescribed for helicopters by the FAA. As this exem ption is for a sUAS, Coldwater Group

, LLC requests authority to operate at altitudes up to 200 ft. AGL; an exem ption ma y be needed to allo w such operations. As set forth herein, the UAS will never operate at higher than 200 ft. AGL. It will however be operated in a controlled area where buildings and people will not be exp osed to operations without their pre

- obtained consent.

The equivalent level of safety will be achieved given the size, weight, speed of the UAS as well as location where it is operated. No flight will be taken wit hout the perm ission of the property owner . Because of the advance notice to the property owner and participants in the photographic activity, all affected individuals wi ll be aware of the planned flight operationsas set forth in the Operating Manual. Com pared to flight operations wit h aircraft o r rotorcraft

weighing far more than the maximum 5 lbs. proposed herein and the lack of flammable fuel, any risk associated wit h these operations is far less than those presently presented with conventional aircraft operating at or below 500 ft. AGL. In add ition, the low

- altitude operations of the sUAS will ensure separation between these small UAS operations and the operations of conventional aircraft that m ust comply w ith Section 91.119.

**14 CFR §91.121: Altimeter Settings**

This regulation requires each pe rson operating an aircraft to maintain cruising altitude by reference to an altim eter that is set “...to the elevation of the departure airport or an appropriate altim eter setting available before departure.” As the sUAS will not have a barom etric altim ete r, but instead a GPS altitude read out, an exemption may be needed. An equivalent level of safety will be achieved by the operator, pursuant to the Operating Manual and Safety Check list, confirm ing the altitude of the launch site shown on the GPS altitude indicator before flight.

**14 CFR §91.151 (a): Fuel Requirements for Flight in VFR Conditions**

Section 91.151 (a) prohibits an individual fro m 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, assum ing norm al cruis ing 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 battery powering the sUAS provides approxim ately 25 minutes of powered flight. To meet the 30 minute reserve require ment in 14 CFR §91.151, sUAS flights wo uld be im possible. Given the lim itations on the UAS’s proposed flight area and the location of its proposed operations within a predeterm ined area, a longer tim e fra mefor flight in daylight or night VFR conditions is reasonable.

Applicant believes that an exem ption from 14 CFR §91.151 (a) falls within the scope of prior

exem ptions. See Exemption 10673 (allowing Lockheed Martin Corporation to operate without com pliance wit h FAR 91.151 (a)). Operating the sm all UAS, i n a tightly controlled

area where only people and property ow ners or official representatives who have signed waivers will be allowed, with less than 30 mi nutes of reserved fuel, does not engender the type of risks that Section 91.151 (a) was intended to a lleviate given the size and speed of the sm all UAS. Additionally, lim iting sUAS flights would greatly reduce the utility for which the exem ption w ill be granted.

Applicant believes that an equivalent level of safety can be achieved by lim iting flights to 25 minutes or 25% of

b attery power whichever happens first. This restriction would be mo re than adequate return the sUAS to its planned landing zone fro m anywhere in its lim ited operating area.

Sim ilar exem ptions have been granted to other operations, in cluding Exem ptions 2689F, 5745, 10673, and 10808.

**14 CFR §91.203 (a) and (b): Carry ing Civil A**  **ircraft Certification and Registration**The regulation provides in pertinent part: (a) Except as provided in §91.715, no person may

operate a civil aircraft un less it has within it the follow ing:

(1) An appropriate and current airworthiness certificate... (b) No person ma y operate a civil aircraft unless the airworthiness certificate required by paragraph (b) of this section or a special flight authorization issued under §91.715 is displayed at the cabin or cockpit entrance so that it is legible to passengers or crew

.

The UAS fully loaded weighs no mo re than 5 lbs. and is operated wit hout an onboard Pilot. As such, there is no ability or place to carry certification and registration docum ents or to display them on the sUAS.

An equivalent level of safety will be achieved by keeping these docum ents at the ground control point where the Pilot flying the sUAS will have immediate access to them, to the exten t they are applicable to the sUAS, and should they be issued. The FAA has issued

num erous exem ptions to this regulation. A representative sample of other exceptions includes Exem ption Nos. 9565, 9665, 9789, 9789A, 9797, 9797A, 9816A, and 10700.

**14 CFR §91 .405 (a); 407 (a) (2); 417 (a) & (b): Maintenance Inspections** 

These regulations require 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 provid ed in paragraph C of this section, have discrepancies repaired as prescribed in Part 43 of this chapter...,” and others shall inspect or maintain the aircraft in

com pliance with Part 43.

Given that these section and Part 43 apply only to aircraft with an airworthiness certificate, these sections will not apply to the applicant. Maintenance will be accom plished by the operator; pursuant to the Operating ma nual. An equivalent level of safety wi ll be achieved because these sm all UASs are very lim ited in size and will carry a sm all payload and operate only in restricted areas for lim ited periods of tim e. If me chanical issues arise the UAS can land immediately and will be operating fro m no higher than 200 ft. AGL. As provided in the Operating Manual, the PIC (o perator) wi ll ensure that the UAS is in working order prior to initiating flight, and perform required ma intenance. Moreover, the operator is the person mo st fa miliar with the aircraft and best suited to ma intain the aircraft in an airworthy condition to p rovide the equivalent level of safety.

********* Pursuant to 14 CFR summary is provided for publication in the Federal Register, should it be determ ined that publication is needed: Applicant seeks an exem ption from t he follow ing rules: 14 CFR § 21, subpart H; 14 CFR § 45.23 (b); 14 CFR § 61.113 (a) & (b); 91.7 (a); 91.9 (b) (2); 91.103 (b); 91.109; 91.119; 91.121; 91.151 (a); 91.203 (a) & (b); 91.405 (a); 91.407 (a) (1); 91.409 (a) (2) and 91.417 (a) & (b) to operate comm ercially a
sm all unm anned vehicle (5lbs or less) in photography and videography operations.

**Privacy**

All flights w ill occur over private or controlled access property with the property owner’s prior consent and knowledge, or over remote public land. Im age capture of people will rarely takeplace, but in the event they are, the y will have consented prior to being film ed or otherwise

have agreed to be in the area where data collection will take place.

**Airborne Image Capture**

Wi th regard to airborne film ing, Coldwater Group

, LLC adheres to all FAA regulations. Further Coldwater Group

, LLC airborne team s operate under the principles of: Safety First, Quality Assurance, Accountability, Reporting, and Training. W hen approved by the FAA it is Coldwater Group

, LLC’s ma ndate to treat all sUAS operations the exact sam e level of profess ionalism and seriousness as that of conventional aircraft. Approval of exem ptions allowing co mmercial operations of sUASs in our industry will enhance safety by reducing risk. Conventional operations, using turbine or piston powered aircraft present the ri sks associated wit h vehicles that weigh in the neighborhood of 2,000lbs.+, carrying large

am ounts of Jet A or 100LL. Such aircraft mu st fly to and fro m location. In contrast, a sUAS weighing fewer than 5 lbs, and powered by batteries, elim inates virtually all of the risk, given the substantial reduced ma ss and lack of combustible fuel carried on board. The sUAS is typically transported to the location via auto, or cargo van, in a me dium sized case and is

never flow n to the site. The sUAS will carry no passe ngers or crew and, therefore, wi ll not expose them to the risks associated with m anned aircraft.

The operation of sm all UASs, weighing less than 5lbs., conducted in the strict conditions outlined above, will provide an equivalent level of safety supportin g the grant of the

exem ptions requested herein, including exempting the applicant fro m the requirem ents of Part 21 and allowing commercial operations. These lightweight aircraft operate at slow speeds, close to the ground, and in a sterile environm ent. As a result, they are far safer than conventional operations conducted with piston helicopters, or fixed wing aircraft operating in relatively close proxim ity to the ground and people.

The prim ary ma rket of interest fo r Coldwater Group

, LLC utilizing sUASs is aerial videography and photography.

It is anticipated that the airborne im age capture process will be accomplished exclusively in daytim e VFR environments. To capture the highest quality of resolution the ma jority of airborne data collections w ill take place during the 10:00am

– 4:00pm window

. **Summary** Satisfaction of the criteria provided in Section 333 of the Reform Act of 2012

– size, weight, speed, operating capabilities, proxim ity to airports and populated areas and operation within visual line of sight and national security

– provide mo re than adequate justification for the grant of the requested exem ptions allowing commercial operation of applicant’s sUAS for aerial videography and photography Operating Manual appended hereto. Coldwater Group

, LLC is eagerly standing by to support the FAA and sUAS community in its quest to establish proper regulations and protocols for the safe introduction of unm anned aircraft into the national airspace.

Sincerely,

Jack D Petersen, JrColdwater Group , LLC.

825 Great Northern Blvd. Suite 320 Helena, MT 59601 406

- 461

- 8883 pepper@coldwaterpr.com