July 28, 2015

Exemption No. 12182

Regulatory Docket No. FAA–2015–1778

Mr. Jack D Petersen, Jr

Coldwater Group, LLC

825 Great Northern Boulevard, 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 describing 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 would 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 finds 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 Decision

You have requested to use a UAS for aerial data collection1. The FAA has issued grants of 

exemption in circumstances similar in all material respects to those presented in your petition. 

In Grants of Exemption 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 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. 11062, 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 Wing 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 maintains 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 for 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 this 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 updated 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 operation 

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 must 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 is 

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 components, 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 review requirements specified in 

14 CFR § 61.56 in an aircraft in which the PIC is rated on his or her pilot certificate.
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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 

(training, proficiency, 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 

training, proficiency, and experience-building flights, all persons not essential for 

flight operations are considered nonparticipants, and the PIC must operate the UA 

with appropriate distance 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 symbol 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 made 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 signal, 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 manufacturer 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 

operations 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 controlled-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 the 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 

essential 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 specified 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

Enclosures
FAA Exemption Rulemaking 

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 Transportation
Mr. Anthony R. Foxx 

1200 New Jersey Ave, SE

Washington DC 20590 

Re: Exemption Request Section 333 of the FAA Reform Act and Part 11 of the Federal 

Aviation Regulations from 14 CFR 45.23(b); 14 CFR Part 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 Limited Liability 

Corporation, consultant, and operator of Small Unmanned Aircraft Systems (“sUASs”) 

equipped to conduct aerial photography and videography purposes, hereby applies for an 

exemption from 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 outlined herein or as may be established by the FAA as required by Section 333. 

As described more fully below, the requested exemption would permit the operation 

of small, unmanned and relatively inexpensive sUAS under controlled conditions in airspace 

that is 1) limited 2) predetermined and 3) controlled as to access. Approval of this 

exemption would thereby fulfill the Secretary of Transportation’s (the responsibilities to 

“...establish requirements for the safe operation of such aircraft systems 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 APM 

autopilot for aerial imaging. The FAA has previously issued Grants of Exemption in 

circumstances similar in nearly all material respects to those presented in this petition. In 

previous Grants of Exemption [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 

unmanned aircraft with the specifications described by the petitioners, carrying no 

passengers or crew—rather than a manned 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 interest. Coldwater Group, LLC feels that the reasons stated by the FAA for granting 

Exemption 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 Wing Airplane equipped with the ArduPlane 

UAS Navigation system permitting return home safety features, as well as the cost 

effectiveness of small UAS aerial photography, a grant of exemption would be in the public 

interest.

The name and address of the applicant is: Coldwater Group, LLC Jack D Petersen, 

Jr Phone: 406-461-8883 Email: pepper@coldwaterpr.com Address: 825 Great Northern 

Blvd, Suite 320, Helena, MT, 59601. 
Regulations from which the exemption is requested: 

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 exemption application is expressly submitted 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 unmanned aircraft systems may operate safely in the national 

airspace system (NAS) before completion of the rulemaking required under Section 332 of 

the Reform Act. In making this determination, the Secretary is required to determine which 

types of UASs 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 (VLOS) of the Pilot and Observers. 

Reform Act §333 (a). Lastly, 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). 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; that includes sUASs, from the requirement that all 

civil aircraft must have a current airworthiness certificate. The Administrator may grant an 

exemption from a requirement of a regulation prescribed under subsection (a) or (b) of this 

section or any sections 44702-44716 of this title if the Administrator finds the exemption in 

the public interest. 49 U.S.C. §44704; 14 CFR §91.203 (a) (1). 

Coldwater Group will operate a Bixler 3 fixed wing aircraft, weighing less than 60oz 

including sensor payload. They operate their aircraft under normal conditions at a speed of 

no more than 17 knots. They will manually operate only in Visual Line of Sight and will 

operate only within the operating parameters as described in the Operating Manual 

attached as Attachment 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 small size and weight of the sUAS involved and the restricted sterile 

environment within which they will operate, the applicant falls squarely within that zone of 

safety (an equivalent level of safety) in which Congress envisioned that the FAA must, by 

exemption, allow commercial operations of UASs to commence 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 contained in the Federal Aviation Act, as amended; the strong 

equivalent level of safety, surrounding the proposed operations, and significant public 

benefit, including enhanced safety, reduction in environmental impact, including reduced 

emissions associated with allowing UASs for educational and marketing operations, (as 

opposed to full scale aircraft), the granting of the requested exemptions is in the public 

interest. Accordingly, the applicant respectfully requests that the FAA grant the requested 

exemption without delay. 

AIRCRAFT AND EQUIVALENT LEVEL OF SAFETY The applicant proposes that the 

exemption requested herein apply to civil aircraft that have the characteristics and that 

operate with the limitations listed herein. These limitations provide for at least an equivalent 

or possibly higher level of safety to operations under the current regulator structure because 

the proposed operations represent a safety enhancement to the already safe filming 

operations conducted with conventional aircraft. These limitations and condition to which 

Coldwater Group, LLC agrees to be bound when conducting commercial operations under 

an FAA issued exemption include: 

1. The sUAS will weigh less than 5 lbs. 

2. Flights will be operated manually within visual line of sight (VLOS) of the Pilot and 

aircrew (Spotter / Observer). 

3. Maximum total flight time for each operational flight will be 25 minutes. Flights will 

be terminated at 25% battery power reserve should that occur prior to the 25 minute limit.

4. Flights will be operated at an altitude of no more than 200 feet AGL, though most 

operations will be conducted within 50 feet of the ground 

5. Minimum two (2) man crew for each sUAS operation will consist of the Pilot and 

Spotter / Observer. In most cases the third aircrew member will serve as the Safety Officer. 

6. The sUAS Pilot will be an FAA licensed airman with a sports, private, or 

commercial certification and the Spotter/Observer will hold a valid third class medical 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 within 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 mile 

radius of any airport. The sUAS will never enter any MOA or Restricted Airspace, nor shall it 

violate any TFR as outlined 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 mandatory that all personnel who 

will be performing duties as “flight crew” be present for this briefing. 
10. The Operator will obtain the consent of all persons involved in the filming and 

ensure that only consenting persons will be allowed within 100 feet of the flight operation, 

and this radius may be reduced to 30 feet based upon an equivalent level of safety 

determination. 

11. Pilot, and Spotter (Observer) will have been trained in operation of sUAS 

generally and received up-to-date information on the particular sUAS to be operated as 

required. 

12. Spotter (Observer) and Pilot will at all times be able to communicate by voice or 

radio. 

13. Written and/or oral permission from the relevant property holders will be 

obtained. 

14. If the sUAS loses communications or loses its GPS signal, the UAS will have 

capability to return to a predetermined location and land. 

15. The sUAS will have the capability to abort a flight in case of unpredicted 

obstacles or emergencies. 

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

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 size and limited operating area associated with the aircraft to be utilized by 

the Applicant, an exemption from Part 21 Subpart H meets the requirements of an 

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 exempt aircraft from the requirement capability, and proximity to airports and 

populated areas of the particular UAS. In all cases, an analysis of these criteria 

demonstrates that the UAS operated without an airworthiness certificate, in the restricted 

environment and under the conditions proposed will be at least as safe, or safer, than a 

conventional aircraft (fixed-wing or rotorcraft) operating with an airworthiness certificate 

without the restrictions and conditions proposed. 

The sUAS to be operated hereunder is less than 5 lbs. fully loaded, carries neither a 

pilot nor passenger, carries no explosive materials or flammable liquid fuels, and operates 

exclusively within a limited radius area as set out in the pre flight briefing / VLOS operations. 

Unlike other civil aircraft, operations under this exemption will be tightly controlled and 

monitored by both the Operator, pursuant to safety requirements, and under the 

requirements and in compliance with local public safety requirements, to provide security for 

the area of operation as is now done with conventional aircraft. These safety 

enhancements, which already apply to civil aircraft operated in connection with video 

production, provide a greater degree of safety to the public and property owners than 

conventional operations conducted with airworthiness certificates issued under 14 C.F.R. 

Part 21, Subpart H. Lastly, application of these same criteria demonstrates that there is no 

credible threat to national security posed by the UAS, due to its size, speed of operation, 

location of operation, lack of explosive materials or flammable liquid fuels, and inability to 

carry a substantial external load. 

14 CFR §45.23 (B): 
Marking of the Aircraft The regulation requires: When marks include only the Roman capital 

letter “N” and the registration number is displayed on limited, restricted or light-sport 

category aircraft or experimental or provisionally certificated aircraft, the operator must also 

display on that aircraft near each entrance to the cabin, cockpit, or pilot station, in letters not 

less than 2 inches nor more than 6 inches high, the words “limited,” “restricted”, “light-sport,” 

“experimental,” or “provisional,” as applicable.

Even though the UAS will have no airworthiness certificate, an exemption may be needed 

as the UAS will have no entrance to the cabin, cockpit or pilot station on which the word 

“Experimental” can be placed. Given the size of the sUAV, two-inch lettering will be 

impossible. The word “Experimental” will be placed on the fuselage in compliance with 

§45.29 (f). 

The equivalent level of safety will 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 the UAS as “Experimental.” The FAA has issued the 

following exemptions to this regulation to Exemptions 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 current 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 small UAS. 

Unlike a conventional aircraft that carries the pilot and passengers, the sUAS is remotely 

controlled with no living thing on board. The area of operation is controlled 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 requirements included in the Operating Manual meets 

that provided by single individual holding a commercial pilot’s certificate operating a 

conventional aircraft. The risks associated with commercial operations contemplated 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 Aircraft Airworthiness 

The regulation requires that no person may operate a civil aircraft unless it is in airworthy 

condition. As there will be no airworthiness certificate issued for the aircraft, should this 

exemption be granted, no FAA regulatory standard will exist for determining 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 will be provided. 

14 CFR §91.9 (b) (2): Civil Aircraft Flight Manual in the Aircraft 

Section 91.9 (b) (2) provides: No person may U.S.-registered civil aircraft ... (2) For which 

an Airplane or Rotorcraft Flight Manual is not required by §21.5 of this chapter, unless there 
is available in the aircraft a current approved Airplane or Rotorcraft Flight Manual, approved 

manual material, markings, and placards, or any combination thereof. 

The sUAS, given its size and configuration has no ability or place to carry such a flight 

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 maintained 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 exemptions to this regulation: Exemption Nos. 8607, 8737, 

8738, 9299, 9299A, 9565, 9565B, 10167, 10167A 10602, 32827, and 10700 

14 CFR §91.103: Preflight Action 

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

the safety of flight. As FAA approved flight manuals will not be provided for the aircraft an 

exemption will be needed. An equivalent level of safety will be provided as set forth in the 

Operating Manual. The PIC will take all actions including reviewing weather, flight battery 

requirements, 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 may operate a civil aircraft (except a manned free 

balloon) that is being used for flight instruction unless that aircraft has fully functioning dual 

controls. SUASs and remotely piloted aircraft, by their design do not have fully functional 

dual controls. Flight control is accomplished through the use of a control box that 

communicates with the aircraft via radio communications. The FAA has approved 

exemptions for flight training without fully functional dual controls for a number of aircraft 

and for flight instruction in experimental 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 previously trained in remote flight areas before attempting flight within 

filming distance of structures.

14 CFR §91.119: Minimum Safe Altitudes 

Section 91.119 establishes safe altitudes for operation of civil aircraft. Section 91.119 (d) 

allows helicopters to be operated at less than the minimums prescribed, provided the 

person operating the helicopter complies with any route or altitudes prescribed for 

helicopters by the FAA. As this exemption is for a sUAS, Coldwater Group, LLC requests 

authority to operate at altitudes up to 200 ft. AGL; an exemption may be needed to allow 

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 

exposed 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 without the permission of the 

property owner. Because of the advance notice to the property owner and participants in the 

photographic activity, all affected individuals will be aware of the planned flight operations 
as set forth in the Operating Manual. Compared to flight operations with aircraft or rotorcraft 

weighing far more than the maximum 5 lbs. proposed herein and the lack of flammable fuel, 

any risk associated with these operations is far less than those presently presented with 

conventional aircraft operating at or below 500 ft. AGL. In addition, the low-altitude 

operations of the sUAS will ensure separation between these small UAS operations and the 

operations of conventional aircraft that must comply with Section 91.119.

14 CFR §91.121: Altimeter Settings

This regulation requires each person operating an aircraft to maintain cruising altitude by 

reference to an altimeter that is set “...to the elevation of the departure airport or an 

appropriate altimeter setting available before departure.” As the sUAS will not have a 

barometric altimeter, 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, confirming 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 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 battery powering the sUAS provides approximately 25 minutes of powered 

flight. To meet the 30 minute reserve requirement in 14 CFR §91.151, sUAS flights would 

be impossible. Given the limitations on the UAS’s proposed flight area and the location of its 

proposed operations within a predetermined area, a longer time frame for flight in daylight 

or night VFR conditions is reasonable. 

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

exemptions. See Exemption 10673 (allowing Lockheed Martin Corporation to operate 

without compliance with FAR 91.151 (a)). Operating the small UAS, in a tightly controlled 

area where only people and property owners or official representatives who have signed 

waivers will be allowed, with less than 30 minutes of reserved fuel, does not engender the 

type of risks that Section 91.151 (a) was intended to alleviate given the size and speed of 

the small UAS. Additionally, limiting sUAS flights would greatly reduce the utility for which 

the exemption will be granted. 

Applicant believes that an equivalent level of safety can be achieved by limiting flights to 25 

minutes or 25% of battery power whichever happens first. This restriction would be more 

than adequate return the sUAS to its planned landing zone from anywhere in its limited 

operating area.

Similar exemptions have been granted to other operations, including Exemptions 2689F, 

5745, 10673, and 10808. 

14 CFR §91.203 (a) and (b): Carrying Civil Aircraft Certification and Registration 
The regulation provides in pertinent part: (a) Except as provided in §91.715, no person may 

operate a civil aircraft unless it has within it the following: 

(1) An appropriate and current airworthiness certificate... 

(b) No person may 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 more than 5 lbs. and is operated without an onboard Pilot. 

As such, there is no ability or place to carry certification and registration documents or to 

display them on the sUAS.

An equivalent level of safety will be achieved by keeping these documents at the ground 

control point where the Pilot flying the sUAS will have immediate access to them, to the 

extent they are applicable to the sUAS, and should they be issued. The FAA has issued 

numerous exemptions to this regulation. A representative sample of other exceptions 

includes Exemption 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 provided 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 

compliance 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 accomplished by the 

operator; pursuant to the Operating manual. An equivalent level of safety will be achieved 

because these small UASs are very limited in size and will carry a small payload and 

operate only in restricted areas for limited periods of time. If mechanical issues arise the 

UAS can land immediately and will be operating from no higher than 200 ft. AGL. As 

provided in the Operating Manual, the PIC (operator) will ensure that the UAS is in working 

order prior to initiating flight, and perform required maintenance. Moreover, the operator is 

the person most familiar with the aircraft and best suited to maintain the aircraft in an 

airworthy condition to provide the equivalent level of safety. 

********* Pursuant to 14 CFR summary is provided for publication in the Federal Register, 

should it be determined that publication is needed: Applicant seeks an exemption from the 

following 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 commercially a 

small unmanned vehicle (5lbs or less) in photography and videography operations. 

Privacy 

All flights will occur over private or controlled access property with the property owner’s prior 

consent and knowledge, or over remote public land. Image capture of people will rarely take 
place, but in the event they are, they will have consented prior to being filmed or otherwise 

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

Airborne Image Capture 

With regard to airborne filming, Coldwater Group, LLC adheres to all FAA regulations. 

Further Coldwater Group, LLC airborne teams operate under the principles of: Safety First, 

Quality Assurance, Accountability, Reporting, and Training. When approved by the FAA it is 

Coldwater Group, LLC’s mandate to treat all sUAS operations the exact same level of 

professionalism and seriousness as that of conventional aircraft. Approval of exemptions 

allowing commercial operations of sUASs in our industry will enhance safety by reducing 

risk. Conventional operations, using turbine or piston powered aircraft present the risks 

associated with vehicles that weigh in the neighborhood of 2,000lbs.+, carrying large 

amounts of Jet A or 100LL. Such aircraft must fly to and from location. In contrast, a sUAS 

weighing fewer than 5 lbs, and powered by batteries, eliminates virtually all of the risk, given 

the substantial reduced mass and lack of combustible fuel carried on board. The sUAS is 

typically transported to the location via auto, or cargo van, in a medium sized case and is 

never flown to the site. The sUAS will carry no passengers or crew and, therefore, will not 

expose them to the risks associated with manned aircraft.

The operation of small UASs, weighing less than 5lbs., conducted in the strict conditions 

outlined above, will provide an equivalent level of safety supporting the grant of the 

exemptions requested herein, including exempting the applicant from the requirements of 

Part 21 and allowing commercial operations. These lightweight aircraft operate at slow 

speeds, close to the ground, and in a sterile environment. As a result, they are far safer 

than conventional operations conducted with piston helicopters, or fixed wing aircraft 

operating in relatively close proximity to the ground and people. 

The primary market of interest for Coldwater Group, LLC utilizing sUASs is aerial 

videography and photography.

It is anticipated that the airborne image capture process will be accomplished exclusively in 

daytime VFR environments. To capture the highest quality of resolution the majority of 

airborne data collections will 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, proximity to airports and populated areas and operation within 

visual line of sight and national security – provide more than adequate justification for the 

grant of the requested exemptions 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 unmanned aircraft into the 

national airspace. 

Sincerely, 

Jack D Petersen, Jr
Coldwater Group, LLC.

825 Great Northern Blvd. Suite 320

Helena, MT 59601 

406-461-8883

pepper@coldwaterpr.com