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 Ca lifornia & Colorado 

### December 5, 2015

U.S. Department of Transporta tion, 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 F AA Reform Act and Part 11 of the Federal Aviation R egulations 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 FA A 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 D epartment of Insurance as an independent insurance adjusting firm, hereby applies for an ex emption from the list ed 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



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### Since 1975, SGD, Inc. has been providing claims adjus ting, investigations and administration services to the in surance 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 Ev aluation of Earthquake Damage (SEED).
SGD, Inc. personnel have also worked with t he 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 per fect opportunity to not only use the UAS in the performance of our duties as Property and Casualty adjuste rs, but also for training for the insurance industry in the proper use and application of UAS’s and devel oping a policy for others to follow in our industry.3 TABLE OF CONTENTS 

### Page

A. GLOSSARY OF ABBREVIATION S ............................................................................. 4

B. SU MMARY .................................................................................................................. 5

C. INTRODUCTION AND IN TERESTS OF PET ITIONER ................................................ 5

D. BACKGRO UND ........................................................................................................... 6

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

F. NAME AND ADDRE SS OF PETIT IONER ................................................................... 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 RELI EF ................................................................................................... 14

I. THE REASONS WHY GRANTING THE SGD, INC. REQUEST WOULD BE IN THE PUBLIC IN TEREST ............................................................................................. 16

J. THE REASONS WHY GRANTING TH E EXEMPTION TO SGD, INC. WOULD NOT ADVERSELY AFFE CT SAFETY ......................................................................... 18

K. SUMMARY THAT CAN BE PUBLISHE D IN THE FEDERA L REGISTER ................... 25

L. CONCLUS ION ............................................................................................................. 254 

### 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 Oper ating Procedures
UA Unmanned Aircraft UAS Unmanned Aircraft System VFR Visual Flight Rules VLOS Visual Line of Site
VMC Visual Meteorol ogical Conditions VTOL Vertical Takeoff and Landing5 

### 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 Profe ssional) pursuant to Section 333 of the FAA Modernization and Reform Act of 2012 (FMRA). This exempt ion will permit SGD, INC. to operate an Unmanned Aircraft System (UAS) for the co mmercial purpose of conducting aerial video and photography of property losses at insur ed and other properties (with permission of owner), accident scenes, and other residential and commercial si tes in the course of our claims inspections and or training.

C. INTRODUCTION AND INTE RESTS OF THE PETITIONER
SGD, INC. has for over forty years provided their client s (which include domestic and foreign insurance companies, various Lloyds, London sy ndicates, MGA’s and other adjusting firms) provided adjusting, investigations, and Th ird Party Administrator (TPA)/Claims Administrator services. SGD, Inc. pers onnel are often in unsafe locations in the performance of our duties including fire loss sc enes, 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 exempt ion to operate DJI Phantom 3 Professional system for compensation or hire within t he NAS. The DJI Phantom 3 Prof essional UAS is a vertical takeoff and landing (VTOL) Unmanned Aircraft (UA) with a Ground Control Station (GCS) utilizing electronic tablet or smart phone syste ms. The DJI Phantom 3 Professional has a maximum gross weight of approx imately 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 Prof essional 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 Feder al Aviation Regulations (14 C.F.R. § 11.61) and the FAA Mo dernization 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 Professi onal 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 ar ea associated with the unmanned aircraft and its operation, SGD, INC. operation of DJI Phantom 3 Professional UAS meets the conditions of FMRA Se ction 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 fort h 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 oper ating documents (i.e., Monthly Maintenance Log, and DJI Phantom 3 Professi onal Instruction Manual). Fu rthermore, 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. Howeve r, the PIC is able to safe ly operate the DJI Phantom Professional UA in a manner consistent with this exempt ion, including evasive and emergency maneuvers and maintain ing appropriate distances from people, vessels, vehicles and structures.
SGD, INC. seeks relief fr om Section 91.7(a), entitled Civil aircraft airworthiness , because the DJI Phantom 3 Professional UAS does not require an ai rworthiness certificate in accordance with 14 C.F.R. Part 21, Subpart H. As such, SGD, INC. s ubmits that they will ensure that the DJI Phantom 3 Pr ofessional UAS is in an airworthy condition, prior to every flight, by determining that t he UAS are in compliance with t he operating documents (i.e.,8 

### 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 exem ption 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, al titude information of the DJI Phantom 3 Professional UA will be prov ided to the PIC via Global Posi tioning System (GPS) equipment and radio communications telemetry data link, which downlinks from the UAS to the GCS for active monitoring of the f light path. This altitude informa tion, combined with SGD, INC. operation of the DJI Phantom 3 Pr ofessional UAS within visual li ne of sight, at or below 400 feet AGL, will ensure a level of safety equivalent to Section 91.121. Additionally, SGD, I NC. seeks an exemption from the requirements of Section 91.151(b), entitled Fuel requirements for f light in VFR conditions . SGD, INC. submit s that safety will not be affected by operation of the DJI Phan tom 3 Professional UAS during daylight hours in visual meteorological conditions (VMC ) under visual flight rules (VFR), with enough battery power to fly fo r 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 Petiti oner and point of contact is:
Douglas Jackson, RPA VP/Director of Operations SGD, Inc. 9171 Gazette Ave. Chatsworth, CA 91311 818-721-4725 (Dir ect Dial) djackson@sgdinc.com10 G. The Specific Sections of 14 C.F.R. Fr om 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 carryi ng 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 ai rcraft 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 se tting 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; or11 

### (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 t hat 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 pre scribed 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, prev entive maintenance, rebuilding, or alteration , subsection (a) (1), states the following:

6.1 No person may operate any aircraft t hat 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 Re quirements 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 ai rworthiness certificate in accordance with part 21 of this chapter.

8. SGD, INC. Seeks Exemption From The Requi rements 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, prev entive maintenance, and alteration and records of the 100-hour, annual, progre ssive, and other requi red or approved inspections, as appropriate, for each ai rcraft (including th e 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 ai rframe, each engine, ea ch 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, pr opellers, 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 levelcertificate, 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 inci dental 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 t hat 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 emergenc y 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, Monthl y 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 batte ry 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 aeri al 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 safe ly operate the battery powered DJI Phantom 316 Professional UAS during daylight hours in visual met eorological 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 tr aditionally 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 cabi n 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 perfo rm 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 reduc ed 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 ai rcraft 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 P hantom 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 Protecti on 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 gr eater job stability to employees and contractors, which will ultimately contribute to growth of t he 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; and18 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 Phant om 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 pr operty 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 populated19 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 requi rements 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 cert ification 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 descrip tion 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.20 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 ex emption 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.21 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 ex emption 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 co vered 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.22 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 t he exemption must be identified by serial number, registered in accordance with 14 C.F.R. part 47, and have identification (N-23 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 Admini strator or any law enforcement official upon request. 29. The UA must remain clear and yield the ri ght 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 pr ivate 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) w ill 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 comp liance with its operating docum ents and as stated in the conditions and limitations herein.24 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 dat a link, which downlinks from the UA to the GCS for active monitoring of the flight path and al titude. 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 safe ty equivalent to Sect ion 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 establis hed 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 t he proposed flight operations; and (3 ) the location of the proposed flight operations. Accordingly, SGD, INC. will ensur e that it will safely ope rate 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 propos ed flight operations; and the lo cation 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 technica l 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 Sect ion 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.25 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 reques ts that the FAA grant this Petition for Section 333 Exemption.

Respectfully Submitted, SGD, Inc.

Douglas B. Jackson, RPA VP/Director of Operations