Los Angeles Corporate Home Office 

9171 Gazette Avenue • Chatsworth, California 91311–5918 

 (800) 743–2524 • FAX (866) 749–7932 • www.sgdinc.com 

CDI License # 2607896 / PI License # PI 9013 

 Offices Located in California & Colorado

December 5, 2015 

U.S. Department of Transportation, Docket Operations 

West Building Ground Floor, Room W12-140 

1200 New Jersey Avenue, SE 

Washington, DC 20590 

RE: SGD, Inc. - Exemption Request Section 333 of the FAA Reform Act and Part 11 of 

the Federal Aviation Regulations from 14 C.F.R. Part 21; 14 C.F.R. 45.23(b); 14 C.F.R. 

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); 91.417(a) & (b); 61.3(a); 61.23(a). 

Dear Sir or Madam: 

In accordance with Section 333 of the FAA Modernization and Reform Act of 2012 and 

14 C.F.R. Part 11, SGD, Inc. (aka: Schifrin, Gagnon & Dickey, Inc.), a California 

Corporation licensed by the California Department of Insurance as an independent 

insurance adjusting firm, hereby applies for an exemption from the listed Federal Aviation 

Regulations (FARs) to allow commercial operation of Small Unmanned Aircraft Systems 

(UAS’s) for purposes of site inspections and aerial photography. 

This exemption cites similarity with relief previously requested in Grant of Exemption 

Nos. 11445, 11062, 11109, 11112, 11213, 11138 and 13802. 
2

Since 1975, SGD, Inc. has been providing claims adjusting, investigations and 

administration services to the insurance industry. SGD, Inc. is also involved with training 

of staff and independent adjusters in the Fair Claims Settlement Practices Regulations, 

the SIU Regulations, and Seminar for the Evaluation of Earthquake Damage (SEED). 

SGD, Inc. personnel have also worked with the California Department of Insurance in 

updating and writing of the state adjuster’s license test as part of the Department of 

Insurance Curriculum board. 

SGD, Inc. feels this is a perfect opportunity to not only use the UAS in the performance 

of our duties as Property and Casualty adjusters, but also for training for the insurance 

industry in the proper use and application of UAS’s and developing a policy for others to 

follow in our industry. 
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TABLE OF CONTENTS Page 

A. GLOSSARY OF ABBREVIATIONS ............................................................................. 4 

B. SUMMARY .................................................................................................................. 5 

C. INTRODUCTION AND INTERESTS OF PETITIONER ................................................ 5 

D. BACKGROUND ........................................................................................................... 6 

E. BASIS FOR PETITION ................................................................................................ 7 

F. NAME AND ADDRESS OF PETITIONER ................................................................... 9 

G. THE SPECIFIC SECTIONS OF 14 C.F.R. FROM WHICH SGD, INC. SEEKS 

EXEMPTION ................................................................................................................ 10 

H. THE EXTENT OF RELIEF SGD, INC. SEEKS AND THE REASON SGD, INC. 

SEEKS THE RELIEF ................................................................................................... 14 

I. THE REASONS WHY GRANTING THE SGD, INC. REQUEST WOULD BE IN 

THE PUBLIC INTEREST ............................................................................................. 16 

J. THE REASONS WHY GRANTING THE EXEMPTION TO SGD, INC. WOULD 

NOT ADVERSELY AFFECT SAFETY ......................................................................... 18 

K. SUMMARY THAT CAN BE PUBLISHED IN THE FEDERAL REGISTER ................... 25 

L. CONCLUSION ............................................................................................................. 25 

 
4

A. GLOSSARY OF ABBREVIATIONS 

AGL Above Ground Level 

AOI Area of Interest 

ATC Air Traffic Control 

ATO Air Traffic Organization 

AV Aerial Vehicle 

CFR Code of Federal Regulations 

COA Certificate of Authorization 

FAA Federal Aviation Administration 

FAR Federal Aviation Regulation 

GCS Ground Control Station 

GPS Global Positioning System 

LOL Loss of Link 

NAS National Airspace System 

NOTAM Notice to Airman 

PIC Pilot In Command 

Section 333 FAA Modernization and Reform Act of 2012 (FMRA) 

SO Safety Observer 

SOP Standard Operating Procedures 

UA Unmanned Aircraft 

UAS Unmanned Aircraft System 

VFR Visual Flight Rules 

VLOS Visual Line of Site 

VMC Visual Meteorological Conditions 

VTOL Vertical Takeoff and Landing 

 
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B. SUMMARY 

Douglas Jackson, VP/Director of Operations on behalf of SGD, INC. seeks exemption from 

the requirements of 14 C.F.R §§ 61.113(a) & (b), 91.7(a), 91.121, 91.151(b), 91.405(a), 

91.407(a)(1), 91.409(a)(1) & (a)(2), and 91.417(a) & (b), to operate an Unmanned Aircraft 

System (DJI Phantom 3 Professional) pursuant to Section 333 of the FAA Modernization 

and Reform Act of 2012 (FMRA). This exemption will permit SGD, INC. to operate an 

Unmanned Aircraft System (UAS) for the commercial purpose of conducting aerial video 

and photography of property losses at insured and other properties (with permission of 

owner), accident scenes, and other residential and commercial sites in the course of our 

claims inspections and or training. 

C. INTRODUCTION AND INTERESTS OF THE PETITIONER 

SGD, INC. has for over forty years provided their clients (which include domestic and foreign 

insurance companies, various Lloyds, London syndicates, MGA’s and other adjusting firms) 

provided adjusting, investigations, and Third Party Administrator (TPA)/Claims 

Administrator services. SGD, Inc. personnel are often in unsafe locations in the 

performance of our duties including fire loss scenes, building collapses, roof inspections of 

steep or compromised/unsafe roofs, and major accident scene investigations. Utilizing a 

UAS (drone) would assist us in performing our jobs more efficiently and safely. 

 
6

D. BACKGROUND 

Unmanned Aircraft Systems: DJI Phantom 3 Professional UAS 

SGD, INC. seeks an exemption to operate DJI Phantom 3 Professional system for 

compensation or hire within the NAS. The DJI Phantom 3 Professional UAS is a vertical 

takeoff and landing (VTOL) Unmanned Aircraft (UA) with a Ground Control Station (GCS) 

utilizing electronic tablet or smart phone systems. The DJI Phantom 3 Professional has a 

maximum gross weight of approximately 2.8 lb. while having a diagonal dimension of 23.2”, 

a maximum speed of approximately 16.4’fps and a maximum software flying height of less 

than 400’. The DJI Phantom 3 Professional is equipped with four main rotors; driven by 

Lithium Polymer battery powered electric motors. 

The DJI Phantom 3 Professional UAS that will be operated by SGD, INC. will be registered 

in accordance with 49 U.S.C. 44103, Registration of Aircraft, as well as 14 C.F.R Part 47, 

Aircraft Registration, and marked in accordance with 14 C.F.R. Part 45, Identification and 

Registration Marking. 

 
7

E. BASIS FOR PETITION 

Petitioner, SGD, INC., pursuant to the provisions of the Federal Aviation Regulations (14 

C.F.R. § 11.61) and the FAA Modernization and Reform Act of 2012 (FMRA), Section 333, 

Special Rules for Certain Unmanned Aircraft Systems, hereby petitions the Administrator to 

commercially operate the DJI Phantom 3 Professional UAS in the National Airspace System 

(NAS), and for an exemption from the requirements of 14 C.F.R §§ 61.113(a) & (b), 91.7(a), 

91.121, 91.151(b), 91.405(a), 91.407(a)(1), 91.409(a)(1) & (a)(2), and 91.417(a) & (b). 

In consideration of the speed, weight, size, and limited operating area associated with the 

unmanned aircraft and its operation, SGD, INC. operation of DJI Phantom 3 Professional 

UAS meets the conditions of FMRA Section 333 and therefore, will not require an 

airworthiness certificate in accordance with 14 C.F.R. Part 21, Subpart H. 

Accordingly, SGD, INC. requests relief from Sections 91.405(a), 91.407(a)(1), 91.409(a)(1) 

& (a)(2), and 91.417(a) & (b), as these sections set forth requirements for maintenance that 

only apply to aircraft with an airworthiness certificate. 

SGD, INC. submits that the requested relief is proper since an equivalent level of safety will 

be ensured. SGD, INC. will use experienced personnel or technicians to perform 

maintenance, alterations, or preventive maintenance on the UAS using the methods, 

techniques, and practices prescribed in the operating documents (i.e., Monthly Maintenance 

Log, and DJI Phantom 3 Professional Instruction Manual). Furthermore, SGD, INC. will 

document and maintain all maintenance records for the DJI Phantom 3 Professional UAS. 

Relief from Section 61.113(a) and (b), entitled Private pilot privileges and limitations: Pilot in 

command, is requested by SGD, INC. as there is no pilot within a UAS nor any potential for 

carrying any passenger. However, the PIC is able to safely operate the DJI Phantom 

Professional UA in a manner consistent with this exemption, including evasive and 

emergency maneuvers and maintaining appropriate distances from people, vessels, 

vehicles and structures. 

SGD, INC. seeks relief from Section 91.7(a), entitled Civil aircraft airworthiness, because 

the DJI Phantom 3 Professional UAS does not require an airworthiness certificate in 

accordance with 14 C.F.R. Part 21, Subpart H. As such, SGD, INC. submits that they will 

ensure that the DJI Phantom 3 Professional UAS is in an airworthy condition, prior to every 

flight, by determining that the UAS are in compliance with the operating documents (i.e., 
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Monthly Maintenance Log, and DJI Phantom 3 Professional Instruction Manual), and that the 

aircraft are in a condition for safe flight. 

SGD, INC. also seeks an exemption from the requirements of Section 91.121, entitled 

Altimeter Settings, as the DJI Phantom 3 Professional UAS does not have a typical 

barometric altimeter onboard. However, altitude information of the DJI Phantom 3 

Professional UA will be provided to the PIC via Global Positioning System (GPS) equipment 

and radio communications telemetry data link, which downlinks from the UAS to the GCS 

for active monitoring of the flight path. This altitude information, combined with SGD, INC. 

operation of the DJI Phantom 3 Professional UAS within visual line of sight, at or below 400 

feet AGL, will ensure a level of safety equivalent to Section 91.121. 

Additionally, SGD, INC. seeks an exemption from the requirements of Section 91.151(b), 

entitled Fuel requirements for flight in VFR conditions. SGD, INC. submits that safety will 

not be affected by operation of the DJI Phantom 3 Professional UAS during daylight hours 

in visual meteorological conditions (VMC) under visual flight rules (VFR), with enough 

battery power to fly for a total duration of approximately 23 minutes. Battery power indicators 

are also able to show exactly how much battery power is left, as well as how much time is 

needed to return safely back to point of take-off. 

 
9

F. Name And Address Of The Petitioner. 

The name and address of the Petitioner and point of contact is: 

Douglas Jackson, RPA 

VP/Director of Operations 

SGD, Inc. 

9171 Gazette Ave. 

Chatsworth, CA 91311 

818-721-4725 (Direct Dial) 

djackson@sgdinc.com 

 
10

G. The Specific Sections of 14 C.F.R. From Which SGD, INC. Seeks Exemption. 

1. The SGD, INC. Seeks Exemption From The Requirements Of Section 61.113(a) And (b).

Section 61.113, entitled Private pilot privileges and limitations: Pilot in command, subsections 

(a) and (b) prescribe the following, in relevant part: 

(a) No person who holds a private pilot certificate may act as a pilot in command (PIC) 

of an aircraft that is carrying passengers or property for compensation or hire; nor may 

that person, for compensation or hire, act as PIC of an aircraft. 

(b) A private pilot may, for compensation or hire, act as PIC of an aircraft in connection with 

any business or employment if— 

(1) The flight is only incidental to that business or employment; and 

(2) The aircraft does not carry passengers or property for compensation or hire. 

2. SGD, INC. Seeks Exemption From The Requirements Of Section 91.7(a).

Section 91.7, entitled Civil aircraft airworthiness, subsection (a), states the following: 

(a) No person may operate a civil aircraft unless it is in an airworthy condition. 

3. SGD, INC. Seeks Exemption From The Requirements Of Section 91.121.

Section 91.121, entitled Altimeter settings, subsection (a), states the following, in part: 

(a) Each person operating an aircraft shall maintain the cruising altitude or flight level of 

that aircraft, as the case may be, by reference to an altimeter that is set, when 

operating-- 

(1) Below 18,000 feet MSL, to-- 

(i) The current reported altimeter setting of a station along the route and 

within 100 nautical miles of the aircraft; 

(ii) If there is no station within the area prescribed in paragraph (a)(1)(i) of 

this section, the current reported altimeter setting of an appropriate available 

station; or 
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(iii) In the case of an aircraft not equipped with a radio, the elevation of the 

departure airport or an appropriate altimeter setting available before departure. 

4. SGD, INC. Seeks Exemption From The Requirements Of Section 91.151(b).

Section 91.151, entitled Fuel requirements for flight in VFR conditions, subsection (b), states 

the following: 

(b) No person may begin a flight in a rotorcraft 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, to fly after that for at least 20 

minutes.

5. SGD, INC. Seeks Exemption From The Requirement Of Section 91.405(a).

Section 91.405, entitled Maintenance required, subsection (a), states the following: Each 

owner or operator of an aircraft— 

5.1 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[.] 

6. SGD, INC. Seeks Exemption From The Requirements Of Section 91.407(a)(1)

Section 91.407, entitled Operation after maintenance, preventive maintenance, rebuilding, 

or alteration, subsection (a) (1), states the following: 

6.1 No person may operate any aircraft that has undergone maintenance, preventive 

maintenance, rebuilding, or alteration unless-- 

• It has been approved for return to service by a person authorized under § 43.7 

of this chapter[.] 

7. SGD, INC. Seeks Exemption From The Requirements Of Sections 91.409(a)(1) And 

91.409(a)(2).

Section 91.409, entitled Inspections, subsection (a), states the following: 

7.1 Except as provided in paragraph (c) of this section, no person may operate an 

aircraft unless, within the preceding 12 calendar months, it has had -- 
12

• An annual inspection in accordance with part 43 of this chapter and has been 

approved for return to service by a person authorized by § 43.7 of this chapter; or 

• An inspection for the issuance of an airworthiness certificate in accordance 

with part 21 of this chapter. 

8. SGD, INC. Seeks Exemption From The Requirements Of Sections 91.417(a) And 91.417(b).

Section 91.417, entitled Maintenance records, subsections (a) and (b), state the following: 

(a) Except for work performed in accordance with §§ 91.411 and 91.413, each 

registered owner or operator shall keep the following records for the periods specified 

in paragraph (b) of this section: 

(1) Records of the maintenance, preventive maintenance, and alteration and 

records of the 100-hour, annual, progressive, and other required or approved 

inspections, as appropriate, for each aircraft (including the airframe) and each 

engine, propeller, rotor, and appliance of an aircraft. The records must include-- 

(i) A description (or reference to data acceptable to the Administrator) 

of the work performed; and 

(ii) The date of completion of the work performed; and 

(iii) The signature, and certificate number of the person approving the 

aircraft for return to service. 

(2) Records containing the following information: 

i. The total time in service of the airframe, each engine, each propeller, and 

each rotor. 

ii. The current status of life-limited parts of each airframe, engine, propeller, 

rotor, and appliance. 

iii. The time since last overhaul of all items installed on the aircraft which are 

required to be overhauled on a specified time basis. 

iv. The current inspection status of the aircraft, including the time since the last 

inspection required by the inspection program under which the aircraft and 

its appliances are maintained. 
13

v. The current status of applicable airworthiness directives (AD) and safety 

directives including, for each, the method of compliance, the AD or safety 

directive number and revision date. If the AD or safety directive involves 

recurring action, the time and date when the next action is required. 

vi. Copies of the forms prescribed by § 43.9(d) of this chapter for each major 

alteration to the airframe and currently installed engines, rotors, propellers, and 

appliances. 

(b) The owner or operator shall retain the following records for the periods prescribed: 

(1) The records specified in paragraph (a)(1) of this section shall be retained until 

the work is repeated or superseded by other work or for 1 year after the work is 

performed. 

(2) The records specified in paragraph (a)(2) of this section shall be retained and 

transferred with the aircraft at the time the aircraft is sold. 

(3) A list of defects furnished to a registered owner or operator under § 43.11 of 

this chapter shall be retained until the defects are repaired and the aircraft is 

approved for return to service. 

 
14

H. The Extent Of Relief SGD, INC. Seeks And The Reason The SGD, INC. Seeks The Relief.

(1) Extent Of Relief SGD, INC. Seeks And The Reason The SGD, INC. Seeks Relief From 

Section 61.113(a) And (b).

Relief from Section 61.113(a) and (b) entitled Private pilot privileges and limitations: Pilot in 

command, is requested to the extent necessary to allow a PIC holding a private pilot or higher level 

certificate, as well as a current and valid airman medical certificate, and who has met certain flighthour and currency requirements, to conduct the proposed UAS flight operations for compensation 

or hire. 

This relief is requested since the limitations set forth in Section 61.113(a) and (b) state that a private 

pilot may, for compensation or hire, act as PIC of an aircraft in connection with any business or 

employment if: (1) The flight is only incidental to that business or employment; and 

The aircraft does not carry passengers or property for compensation or hire. 

As set forth more fully below, SGD, INC. submits that an equivalent level of safety will be maintained 

because no PIC will be allowed to operate the DJI Phantom 3 Professional UAS unless that PIC has 

met certain flight-hour and currency requirements, demonstrating that the PIC is able to safely 

operate either the DJI Phantom 3 Professional UAS in a manner consistent with the operations 

specifications as described in this exemption, including evasive and emergency maneuvers, as well 

as maintaining appropriate distances from people, vessels, vehicles and structures. 

Further, SGD, INC. submits that all flights of the DJI Phantom 3 Professional UAS, conducted by the 

PIC pursuant to the grant of this Petition: (1) will be incidental to SGD, INC. business; and (2) will 

not and, could not due to its size, carry passengers or property for compensation or hire. 

2. Extent Of Relief SGD, INC. Seeks And The Reason SGD, INC. Seeks Relief From Section 

91.7(a). 

Relief from Section 91.7(a) entitled Civil aircraft airworthiness, is requested to the extent required to 

allow SGD, INC. to determine that the DJI Phantom 3 Professional UAS are in airworthy condition 

prior to every flight by ensuring that the UAS is in compliance with the operating documents (i.e., 

SGD, INC. Aerial Operations Manual, Monthly Maintenance Log, and DJI Phantom 3 Professional 

Instruction Manual). 
15

SGD, INC. seeks the requested relief because the DJI Phantom 3 Professional UAS do not require 

an airworthiness certificate in accordance with 14 C.F.R. Part 21, Subpart H. Therefore, SGD, INC. 

will ensure that the DJI Phantom 3 Professional UAS are in airworthy condition based upon its 

compliance with the operating documents (i.e., Monthly Maintenance Log, and DJI Phantom 3) prior 

to every flight, and further, determine that the aircraft are in condition for safe flight, as stated in the 

conditions and limitations below. 

3. Extent Of Relief SGD, INC. Seeks And The Reason SGD, INC. Seeks Relief From Section 

91.121. 

Relief from Section 91.121, entitled Altimeter settings, may be required to allow flight operations of 

the DJI Phantom 3 Professional UAS, which utilize a barometric pressure sensor, GPS equipment, 

and a radio communications telemetry data link to downlink altitude information from the UA to the 

PIC at the ground control station (GCS). Since the FAA requires that any altitude information 

concerning UAS operations be reported to air traffic control (ATC) in feet above ground level (AGL), 

SGD, INC. seeks the requested relief because the DJI Phantom 3 Professional UA’s altimeter may 

be set on the ground to zero feet AGL, rather than the local barometric pressure or field altitude, 

before each flight. 

Considering the limited altitude of the proposed operations, relief from 14 CFR 91.121 is sought to 

the extent necessary to comply with the applicable conditions and limitations stated below. As more 

fully set forth herein, an equivalent level of safety will be maintained since the DJI Phantom 3 

Professional UAS are equipped with a barometric pressure sensor and GPS equipment, which 

automatically ensures that a ground level pressure setting will be established prior to each flight, and 

provides the PIC with altitude information of the UA on the heads-up display of the GCS. 

4. Extent Of Relief SGD, INC. Seeks And The Reason SGD, INC. Seeks Relief From Section 

91.151(b). 

Relief from Section 91.151(b) entitled Fuel requirements for flight in VFR conditions, is requested to 

the extent required to allow flights of the battery powered DJI Phantom 3 Professional UAS during 

daylight hours in visual meteorological conditions (VMC), under visual flight rules (VFR), for a total 

duration of 23 minutes. SGD, INC. seeks the requested relief because without an exemption from 

Section 91.151(b), the flight time duration of the battery powered DJI Phantom 3 Professional UAS 

will severely constrain the practicality of any aerial video or still photo flight operations that SGD, 

INC. proposes to conduct pursuant to this Petition. 

Significantly, as set forth below, the technical specifications of the DJI Phantom 3 Professional UAS, 

the DJI Phantom 3 Professional operating documents, and SGD, INC.’s proposed operating 

limitations, ensure that SGD, INC. will safely operate the battery powered DJI Phantom 3 
16

Professional UAS during daylight hours in visual meteorological conditions (VMC), under visual flight 

rules (VFR), with enough battery power to fly for a total duration of 23 minutes. 

5. Extent Of Relief SGD, INC. Seeks And The Reason SGD, INC. Seeks Relief From Sections 

91.405(a), 91.407(a)(1), 91.409(a)(1) & (a)(2), And 91.417(a) & (b). 

Since Sections 91.405(a), 91.407(a)(1), 91.409(a)(1) & (a)(2), and 91.417(a) & (b) only apply to 

aircraft with an airworthiness certificate, SGD, INC. requests relief from these Sections because the 

DJI Phantom 3 Professional UAS do not require airworthiness certificates. 

As set forth more fully below, the DJI Phantom 3 Professional UAS meet the conditions of FMRA 

Section 333 for operation without an airworthiness certificate. Accordingly, SGD, INC. will use trained 

technicians to perform maintenance, alterations, or preventive maintenance on the UAS using the 

methods, techniques, and practices prescribed in the UAS operating documents (i.e., the SGD, INC. 

Aerial Operations Manual, Monthly Maintenance Log, and DJI Phantom 3 Professional Instruction 

Manual). Furthermore, SGD, INC. will document and maintain all maintenance records for the DJI 

Phantom 3 Professional UAS. 

I. Reasons why granting the request would be in the public interest: 

1. The Public Will Benefit From Decreased Congestion Of The NAS. 

The DJI Phantom 3 Professional UAS are battery powered and serve as a safe, efficient, and 

economical alternative to the manned aircraft traditionally utilized to obtain aerial imagery. By 

reducing the amount of manned aircraft needed to perform aerial acquisitions, an exemption allowing 

the use of a DJI Phantom 3 Professional UAS would reduce the amount of manned aircraft in the 

NAS, reduce noise and air pollution, as well as increase the safety of life and property in the air and 

on the ground. 

Furthermore, by reducing the number of manned aircraft operating in the NAS, congestion around 

airports caused by arriving and departing aircraft will be reduced. The DJI Phantom 3 Professional 

UAS do not require an airport to takeoff or land. Likewise, a reduction of manned aircraft conducting 

aerial video and photography missions would result in fewer aircraft that must be handled by air 

traffic control during the ground, takeoff, departure, arrival, and landing phases of flight operations. 

2. The Public Will Benefit From The Safety And Efficiency Of The DJI Phantom 3 Professional 

UAS. 
17

Conducting aerial acquisitions with the DJI Phantom 3 Professional UAS, instead of manned aircraft, 

will greatly benefit the public by drastically reducing the levels of air and noise pollution generated 

during traditional aerial video and still photography flight operations. By using battery power and 

electric motors, the DJI Phantom 3 Professional UAS produce no air pollution, and is the most viable 

environmentally conscious alternative to the cabin class, six cylinder internal combustion engine 

aircraft that are typically utilized for aerial video and photography, while burning approximately 20-

30 gallons per hour of leaded aviation fuel. The DJI Phantom 3 Professional UAS, while reducing 

the carbon footprint of aerial acquisitions, also eliminates noise pollution, as the UAS are propelled 

by battery powered electric motors, rather than an internal combustion engine. 

By using the DJI Phantom 3 Professional UAS to perform aerial acquisitions, the substantial risk to 

life and property in the air and on the ground, which is usually associated with traditional manned 

aircraft flight operations, will be substantially reduced or completely eliminated. Aside from the lack 

of flight crew members located onboard the aircraft, the DJI Phantom 3 Professional UAS (weighing 

approximately 2.8 pounds at their maximum gross weight with diagonal dimension of 23.2 inches, 

and with no fuel on board), has less physical potential for collateral damage to life and property on 

the ground, and in the air, compared to the manned aircraft that typically conduct similar operations 

(weighing approximately 6,000 pounds with a wingspan of approximately 42 feet, a length of 34 feet, 

and a fuel capacity of 180 gallons). 

3. Performing Aerial Video and Photography Operations With The DJI Phantom 3 

Professional UAS Will Benefit The Economy. 

In addition to being safe and efficient, the DJI Phantom 3 Professional UAS are also an economical 

alternative to using manned aircraft to conduct similar aerial operations. As such, operation of the 

DJI Phantom 3 Professional UAS will allow United States based companies, like SGD, INC., to 

remain competitive and contribute to growth of the U.S. economy. Specifically, with the rising cost 

of aviation fuel and the Environmental Protection Agency14 (“EPA”) regulatory actions phasing out 

leaded aviation fuels, U.S. owned and operated companies must adopt new and alternative 

technology in order to remain competitive. Operating the battery powered DJI Phantom 3 

Professional UAS is one such technology that not only allows companies greater operational 

flexibility compared to manned aircraft, but provides such flexibility without the high operational cost 

of a traditional manned aircraft. 

By operating the DJI Phantom 3 Professional UAS, companies such as SGD, INC. can remain 

competitive and profitable, and therefore, provide greater job stability to employees and contractors, 

which will ultimately contribute to growth of the U.S. economy. Improved financial performance of 

U.S. companies, through commercial use of the DJI Phantom 3 Professional UAS, provides a stable 

workforce that increases consumer spending; improves local, state, and federal tax revenues; and 
18

allows companies to invest in research and development in order to remain competitive both in the 

United States and abroad. 

4. There Are No Privacy Issues. 

Similar to the manned aerial acquisition flight operations that have been conducted for decades, 

SGD, INC. ’s proposed operation of the DJI Phantom 3 Professional UAS will not implicate any 

privacy issues. Specifically, the DJI Phantom 3 Professional UAS will be operated only in compliance 

with operating documents (i.e., SGD, INC. Aerial Operations Manual, Monthly Maintenance Log, and 

DJI Phantom 3 Instruction Manual) which requires property owner involvement as well as local law 

enforcement notification, and in accordance with the Federal Aviation Regulations, including the 

minimum altitude requirements of 14 C.F.R. § 91.119. 

J. The Reasons Why Granting The Exemption Would Not Adversely Affect Safety

(1) Reasons Why The DJI Phantom 3 Professional UAS Meet The Conditions Of The FAA 

Modernization and Reform Act of 2012 (FMRA) Section 333.

In consideration of the size, weight, speed, and limited operating area associated with the unmanned 

aircraft and its operation, SGD, INC.’s operation of the DJI Phantom 3 Professional UAS meet the 

conditions of FMRA Section 333, and will not require an airworthiness certificate in accordance with 

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

Section 333 provides authority for a UAS to operate without airworthiness certification and sets forth 

requirements for considering whether a UAS will create a hazard to users of the NAS or the public, 

or otherwise pose a threat to national security. Specifically, FMRA Section 333 states the following, 

in part: 

(a) In General. --Notwithstanding any other requirement of this subtitle, and not later 

than 180 days after the date of enactment of this Act, the Secretary of 

Transportation shall determine if certain unmanned aircraft systems may operate 

safely in the national airspace system before completion of the plan and 

rulemaking required by section 332 of this Act or the guidance required by section 

334 of this Act. 

(b) Assessment of Unmanned Aircraft Systems.--In making the determination under 

subsection (a), the Secretary shall determine, at a minimum— 

(1) which types of unmanned aircraft systems, if any, as a result of their size, 

weight, speed, operational capability, proximity to airports and populated 
19

areas, and operation within visual line of sight do not create a hazard to 

users of the national airspace system or the public or pose a threat to 

national security; and 

(2) whether a certificate of waiver, certificate of authorization, or airworthiness 

certification under section 44704 of title 49, United States Code, is 

required for the operation of unmanned aircraft systems identified under 

paragraph (1). 

(c) Requirements for Safe Operation.--If the Secretary determines under this section 

that certain unmanned aircraft systems may operate safely in the national airspace 

system, the Secretary shall establish requirements for the safe operation of such 

aircraft systems in the national airspace system. 

In seeking this exemption, SGD, INC. submits that the DJI Phantom 3 Professional UAS can operate 

safely in the NAS pursuant to FMRA Section 333, as demonstrated by: (a) the characteristics of the 

DJI Phantom 3 Professional UAS; (b) the pilot certification requirement; and (c) the specific operating 

limitations. 

a. The Specifications Of The DJI Phantom 3 Professional UAS Demonstrate Its Safe 

Characteristics.

The DJI Phantom 3 Professional UAS does not create a hazard to users of the NAS or the 

public, or otherwise pose a threat to national security considering its size, weight, speed, and 

operational capability. 

1) Technical Specifications Of The DJI Phantom 3 Professional UAS.

The technical specifications of the DJI Phantom 3 Professional UAS are set forth by the 

DJI Phantom 3 User Manual, attached hereto as Appendix A. 

2) The DJI Phantom 3 Professional UAS Global Positioning Modes Enable The 

UAS To Remain Within A Defined Operational Area.

The DJI Phantom 3 Professional UAS may be operated in both manual and global 

positioning flight modes. A complete description of the flight and navigational modes of 

the DJI Phantom 3 Professional UAS is provided at pages 11 of the DJI Phantom 3 User 

Manual attached hereto as Appendix A. 

3) The DJI Phantom 3 Professional UAS Are Designed For Automatic Return To 

Home Point Or Hover In The Event Of Loss Of The Control Link Or Navigation.
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When the Control Link is lost, the DJI Phantom 3 Professional UAS will remain stationary, 

in flight, for 3 seconds or more. If, after 3 seconds, the DJI Phantom 3 Professional UAS 

does not reacquire control link data from the GCS, the UAS will assume that the Control 

Link is lost and the will return to the home position (i.e., failsafe mode) via GPS, and will 

descend to the takeoff position and shutdown. 

A complete description of the Failsafe Functions of the DJI Phantom 3 Professional UAS 

are set forth at pages 12 through 14 of the DJI Phantom 3 Professional User Manual, 

attached hereto as Appendix A. 

4) The DJI Phantom 3 Professional GCS And Its Operation. 

A complete description of the operation and specifications of the DJI Phantom 3 

Professional GCS and flight control software is provided at pages 23 through 29 of the DJI 

Phantom 3 User Manual. DJI Phantom 3 User Manual is attached hereto as Appendix A. 

b. Flight Operations Of DJI Phantom 3 Professional UAS Is Limited To The Line Of 

Sight Of A Certificated Pilot in Command With A Safety Observer. 

SGD, INC. video production staff will be the only persons to act as a pilot in command (PIC) 

of the DJI Phantom 3 Professional UAS. Additionally, a safety observer will assist him at all 

times during flight time. 

c. Flights Of DJI Phantom 3 Professional UAS Will Be Conducted Pursuant To 

Specific Operating Limitations. 

In seeking this exemption, SGD, INC. proposes to commercially operate DJI Phantom 3 

Professional UAS for the special purpose of conducting aerial video and photography over 

certain areas of United States, pursuant to the following specific operating limitations. 

1. Operations authorized by this grant of exemption will be limited to the following aircraft 

described in the operating documents, rotorcraft UAS weighing less than 55 pounds 

maximum gross weight: DJI Phantom 3 Unmanned Aircraft Systems. Proposed 

operations of any other aircraft will require a new petition or a petition to amend this 

grant. 

2. UAS operations under this exemption will be limited to conducting operations for the 

purpose of aerial video and photography. 

3. The UAS may not be flown at an indicated airspeed exceeding 20 knots. 

4. The UA must be operated at an altitude of no more than 400 feet above ground level 

(AGL), as indicated by the procedures specified in the operating documents unless a 

special request is made and approved by ATC. All altitudes reported to ATC must be in 

feet AGL. 

5. The UAS 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. 

6. 6. The use of first person view (FPV) by the PIC or safety observer (SO) is not permitted. 
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7. All operations must utilize a safety observer (SO). The SO may be used to satisfy the 

VLOS requirement as long as the PIC always maintains VLOS capability. The SO 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 SO can perform the functions prescribed in the operating documents. 

8. The SO must not perform any other duties beyond assisting the PIC with seeing and 

avoiding other air traffic and other ground based obstacles/obstructions and is not 

permitted to operate the camera or other instruments. 

9. The operating documents and the grant of exemption must be accessible during UAS 

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

between the conditions and limitations contained in the grant of exemption and the 

procedures outlined in the operating documents, the conditions and limitations contained 

in the grant of exemption 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 

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

petitions for extension or amendment to the grant of exemption. If the operator 

determines that any update or revision would affect the basis upon which the FAA 

granted the exemption, then the operator must petition for 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. 

10. Prior to each flight the PIC must inspect the UAS to ensure that it is in a condition for 

safe flight. 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. The Ground Control 

Station must be included in the preflight inspection. All maintenance and alterations must 

be properly documented in the aircraft records. 

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

in the aircraft records. 

12. The pre-flight inspection must account for all potential discrepancies, e.g. inoperable 

components, items, or equipment, not already covered in the relevant sections of the 

operating documents. 

13. The operator must follow the UAS manufacturer’s aircraft/component, 

maintenance, overhaul, replacement, inspection, and life limit requirements. 

14. The operator must carry out its maintenance, inspections, and record keeping 

requirements, in accordance with the operating documents. Maintenance, inspection, 

alterations, and status of replacement/overhaul component parts must be noted in the 

aircraft records, including total time in service, description of work accomplished, and 

the signature of the authorized person returning the UAS to service. 

15. Each UAS operated under this exemption must comply with all manufacturer Safety 

Bulletins. 
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16. The authorized person must make an entry in the aircraft record of the corrective action 

taken against discrepancies discovered between inspections. 

17. The PIC must possess at least a private pilot certificate and at least a current third- class 

medical certificate. 

18. The operator may not permit any PIC to operate unless the PIC meets the operator’s 

qualification criteria and demonstrates the ability to safely operate the UAS in a manner 

consistent with how the UAS will be operated under the exemption, including evasive 

and emergency maneuvers and maintaining appropriate distances from persons, 

vessels, vehicles and structures. PIC qualification flight hours must be logged in a 

manner consistent with 14 C.F.R. § 61.51(b). Flights for the purposes of training the 

operator’s PICs are permitted under the terms of the 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 C.F.R. § 91.119. 

19. UAS operations may not be conducted during night, as defined in 14 C.F.R. § 1.1. All 

operations must be conducted under visual meteorological conditions (VMC). If flight at 

night is required, a special request will be made at the FAA office closest to proposed 

area of operations. Flights under special visual flight rules (SVFR) are not authorized. 

20. The UA may not operate within 5 nautical miles of an airport reference point as denoted 

on a current FAA-published aeronautical chart unless a letter of agreement with that 

airport’s management is obtained, and the operation is conducted in accordance with a 

NOTAM as required by the operator’s COA. The letter of agreement with the airport 

management must be made available to the Administrator upon request. 

21. 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. 

22. If the UA loses communications or loses its GPS signal, it must return to a predetermined location within the planned operating area and land or be recovered in 

accordance with the operating documents. 

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

accordance with the operating documents. 

24. The PIC is prohibited from beginning a flight unless (considering wind and forecast 

weather conditions) there is enough power to fly at normal cruising speed to the intended 

landing point and land the UA with 25% battery power remaining. 

25. The operator must obtain an Air Traffic Organization (ATO) issued Certificate of Waiver 

or Authorization (COA) prior to conducting any operations under the grant of exemption. 

This COA will also require the operator to request a Notice to Airman (NOTAM) not more 

than 72 hours in advance, but not less than 48 hours prior to the operation. All operations 

shall be conducted in accordance with airspace requirements in the ATO issued COA 

including class of airspace, altitude level and potential transponder requirements. 

26. All aircraft operated in accordance with the exemption must be identified by serial 

number, registered in accordance with 14 C.F.R. part 47, and have identification (N- 
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Number) markings in accordance with 14 C.F.R. part 45, Subpart C. Markings must be 

as large as practicable. 

27. Before conducting operations, the radio frequency spectrum used for operation and 

control of the UA must comply with the Federal Communications Commission (FCC) or 

other appropriate government oversight agency requirements. 

28. The documents required fewer than 14 C.F.R. 91.9 and 91.203 must be available to the 

PIC at the Ground Control Station of the UAS any time the UAS is operating. These 

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

upon request. 

29. The UA must remain clear and yield the right of way to all manned aviation operations 

and activities at all times. 

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

31. Flight operations must be conducted at least 500 feet from all nonparticipating persons 

(persons other than the PIC, SO, operator trainees or essential 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 and/or;

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

owner/controller of such vessels, vehicles or structures has granted permission and 

the PIC has made a safety assessment of the risk of operating closer to those 

objects and determined that it does not present an undue hazard, and; 

32. Operations nearer to the PIC, SO, operator trainees or essential persons do not present 

an undue hazard to those persons per § 91.119(a). 

33. All operations shall be conducted over private or controlled-access property with 

permission from the land owner/controller or authorized representative. Permission from 

land owner/controller or authorized representative will be obtained for each flight to be 

conducted. 

34. 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. 

(2) Reasons Why An Exemption From The Requirements Of Section 91.7(a) Would Not 

Adversely Affect Safety. 

The equivalent level of safety established by Section 91.7(a) will be maintained because prior to 

every flight, SGD, INC. will ensure that the DJI Phantom 3 Professional UAS is in an airworthy 

condition based upon the UAS’s compliance with its operating documents and as stated in the 

conditions and limitations herein. 
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Additionally, the FAA has previously granted relief from Section 91.7(a) specific to UAS, in 

circumstances similar, in all material respects, to those presented herein (e.g. Exemption Nos. 

11062, 11063, 11064, 11065, 11066, 11067, 11080, 11109, 11110, 11112, 11136, 11138, 11150, 

11153, 11156, 11157, 11158, 11159, 11160, 11161). 

(3) Reasons Why An Exemption From The Requirements Of Section 91.121 Would Not 

Adversely Affect Safety. 

The equivalent level of safety established by Section 91.121 will be maintained because the 

altitude information of the DJI Phantom 3 Professional UAS will be provided to the PIC via GPS 

equipment and a radio communications telemetry data link, which downlinks from the UA to the 

GCS for active monitoring of the flight path and altitude. This altitude information, combined with 

SGD, INC. ’s operation of the DJI Phantom 3 Professional UAS within visual line of sight, at or 

below 200 feet AGL, will ensure a level of safety equivalent to Section 91.121. The altitude 

information will be generated by GPS equipment installed onboard the aircraft. Prior to each 

flight, a zero altitude initiation point is automatically established by the UAS at ground level. 

The FAA has previously granted relief from Section 91.121 specific to UAS, in circumstances 

similar, in all material respects, to those presented herein (e.g. Exemption Nos. 11062, 11063, 

11064, 11065, 11066, 11067, 11080, 11109, 11112, 11136, 11138, 11150, 11153, 11156, 11157, 

11158, 11159, 11160, 11161). 

(4) Reasons Why An Exemption From The Requirements Of Section 91.151(b) Would Not 

Adversely Affect Safety. 

A grant of this exemption would ensure an equivalent level of safety established by 14 C.F.R. 

Section 91.151(b) as a result of (1) the technical specifications of the DJI Phantom 3 Professional 

UAS; (2) the limitations on the proposed flight operations; and (3) the location of the proposed 

flight operations. Accordingly, SGD, INC. will ensure that it will safely operate the battery powered 

DJI Phantom 3 Professional UAS during daylight hours in VFR conditions, with enough battery 

power to fly for a total duration of 23 minutes. 

Here, as in Exemption No. 11109, the technical specifications of the DJI Phantom 3 Professional 

UAS; the limitations on the proposed flight operations; and the location of the proposed operations, 

will ensure an equivalent level of safety established by 14 C.F.R. Section 91.151(b). Furthermore, 

safety will be ensured as the DJI Phantom 3 Professional UAS provide audible and visual warnings 

to the PIC at the GCS when the UAS experiences low battery voltage, the first warning 

occurring at approximately 33% remaining battery power, and again at approximately 10% 

remaining battery power. At the critically low battery level, the DJI Phantom 3 Professional UAS 

will descend and land automatically. 

Significantly, previous exemptions granted by the FAA concerning Section 91.151 establish that 

safety is not adversely affected when the technical characteristics and operating limitations of the 

UAS are considered. Relief has been granted for manned aircraft to operate at less than the 

minimums prescribed in Section 91.151, including Exemption Nos. 2689, 5745, and 10650. 

Moreover, the FAA has previously granted relief from Section 91.151 specific to UAS, in 

circumstances similar, in all material respects, to those presented herein (e.g. Exemption Nos. 
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8811, 10808, 10673, 11042, 11062, 11063, 11064, 11065, 11066, 11067, 11080, 11109, 11110, 

11136,11138, 11150, 11153, 11156, 11157, 11158, 11159, 11160, 11161). 

K. Summary that can be published in Federal Register, including the rule from which 

exemption is sought, and a brief description of the nature of the exemption sought: 

SGD, Inc. proposes that the FAA use the following as the summary: 

Docket No.: FAA-2015- 

Petitioner: SGD, Inc. 

Sections of 14 CFR: 61.23(a) and (c), 61.101(e)(4) and (5), 61.113(a) and (b), 61.315(a), (c)(2), 

and (c)(3), 91.7(a), 91.119(c), 91.121, 91.151, 91.405(a), 91.407(a)(1), 91.409(a)(1) and (2), and 

91.417(a) and (b). 

Description of Relief Sought: Petitioner seeks an exemption to operate small UAS’s for aerial 

inspections of accident scene investigations, structural losses (such as fire and wind where 

access may be unsafe), and training purposes for safe and appropriate use of the UAS. 

L. Conclusion:

 For the above reasons, SGD, Inc. respectfully requests that the FAA grant this Petition for Section 

333 Exemption. 

Respectfully Submitted, 

SGD, Inc. 

Douglas B. Jackson, RPA 

VP/Director of Operations