Inhouse 3D, LLC 

120 N. Line St. 

Moscow, Idaho 83843 

U.S. Department of Transportation 

Docket Management System 

1200 New lersey Ave., SE 

Washington DC 20590 

Re: 14 CFR Part 2114 C.F.R. 45.23(b)14 CFR 61.113 (a) &(b) 14 C.F.R. 91.7 (a)14 CFR 91.9 (b) (2)14 

C.F.R. 91.103 14 C.F.R. 91.10914 C.F. R. 91.11914 C.F.R. 91.12114 CFR 91.151(a)14 CFR 91.203 (a) & 

(b)14 CFR 91.405 (a)14 CFR 407 (a) (1)14 CFR 409 (a) (2)14 CFR 417 (a) &(b) 

Dear Sir or Madam: 

Pursuant to Section 333 of the FAA Modernization and Reform Act of 2012 (the "Reform Act") and 14 

C.F.R. Part 11, Inhouse 3D, LLC., an operator of Unmanned Aircraft Systems ("UASs") for producing 

marketing videos in the real estate, hotel & resort, and engineering/design industries, hereby applies for 

an exemption from the Federal Aviation Regulations ("FARs") to allow commercial operation of its UAS 

platforms. 

Inhouse 3D, LLC's requested exemption would permit the operation of small, unmanned UAS under 

controlled conditions in airspace that is: (1) limited, (2) predetermined, (3) subject to controlled access, 

and (4) provide greater safety in connection with aircraft operations in the outdoor film and television 

industry. As established by the exemptions already granted by the FAA, approval of Inhouse 3D's 

exemption would enhance safety and fulfill the Secretary of Transportation's (the FAA Administrator's) 

responsibilities to establish requirements for the safe operation of such aircraft systems in the national 

airspace system. 

Benefit of UAS 

The geography of Idaho and neighboring states provides challenges for photographers to obtain proper 

video and photographs to enhance their marketing material. The services offered by Inhouse 3D, LLC. 

will be a safe and cost effective solution for filming and photography of these unique properties and 

areas. The services are to stimulate economic benefit for the Real Estate, Travel and Engineering/Design 

industries in rural areas. As a private pilot I, Michael Osterholz, have been flying small planes in the 

Northwest area for several years. AII flights have resulted without incident. 

This application is submitted by: 

Inhouse 3D, LLC 

Operator: Michael Osterholz 

Ph: 208-310-7556 

Email: inhouse3D@gmaii.com 

Address: 120 N. Line St. Moscow, Idaho 83843 

Regulations from which the exemption is requested: 

14 CFR Part 21 
14 C.F.R. 45.23(b) 

14 CFR 61.113 (a) & (b) 

14 C.F.R. 91.7 (a) 

14 CFR 91.9 (b) (2) 

14 C.F.R. 91.103 

14 C.F.R. 91.109 

14 C.F. R. 91.119 

14 C.F.R. 91.121 

14 CFR 91.151 (a) 

14 CFR 91.203 (a) & (b) 

14 CFR 91.405 (a) 

14 CFR 407 (a) (1) 

14 CFR 409 (a) (2) 

14 CFR 417 (a) & (b) 

This exemption application is expressly submitted to fulfill Congress' goal in passing Section 333(a) 

through (c) of the Reform Act. This law directs the Secretary of Transportation to consider whether 

certain unmanned aircraft systems may operate safely in the national airspace system (NAS) before 

completion of the rulemaking required under Section 332 of the Reform Act. In making this 

determination, the Secretary is required to determine which types of UASs do not create a hazard to 

users of the NAS or the public or pose a threat to national security in light of the following: 

The UAS's size, weight, speed, and operational capability; 

Operation of the UAS in close proximity to airports and populated areas; and 

Operation of the UAS within visual line of sight of the operator. Reform Act 333 (a). 

Lastly, if the Secretary determines that such vehicles "may operate safely in the national 

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

such aircraft in the national airspace system." Id. 333(c) (emphasis added). The Federal 

Aviation Act expressly grants the FAA the authority to issue exemptions. This statutory 

authority by its terms includes exempting civil aircraft, 2 as the term is defined under 

§40101 of the Act, that includes UASs, from the requirement that all civil aircraft must 

have a current airworthiness certificate. Applicant interprets this provision to place the 

duty on the Administrator to not only process applications for exemptions under section 

333, but for the Administrator to craft conditions for the safe operation of the UAS, if it 

should be determined that the conditions set forth herein do not fulfill the statutory 

requirements for approval. 

The Administrator may grant an exemption from a requirement of a regulation prescribed under 

subsection (a) or (b) of this section or any sections 44702-44716 of this title if the Administrator finds 

the exemption in the public interest. 49 U.S.C. 44701(f) See also 49 USC 44711(a); 49 USC 44704; 14 CFR 

91.203 (a) (1). Inhouse 3D, LLC's UASs are rotorcraft, weighting 55 or fewer Ibs. including payload. They 

operate, under normal conditions at a speed of no more than 50 knots and have the capability to hover, 

and move in the vertical and horizontal plane simultaneously. They wil ► operate only in line of sight and 

will operate only after all safety protocols and preflight checks have been completed. 

Given the small size of the UASs involved and the restricted controlled environment within which they 

will operate, the applicant falls squarely within that zone of safety (an equivalent level of safety) in 

which Congress envisioned that the FAA must, by exemption, allow commercial operations of UASs to 
commence immediately. Also due to the size of the UASs and the restricted areas in which the relevant 

UASs will operate, approval of the application presents no national security issue. Given the clear 

direction in Section 333 of the Reform Act, the authority contained in the Federal Aviation Act, as 

amended; the strong equivalent level of safety surrounding the proposed operations, and the significant 

public benefit, including enhanced safety, reduction in environmental impacts, including reduced 

emissions associated with allowing UASs for movie and television operations, the grant of the requested 

exemptions is in the public interest. Accordingly, the applicant respectfully requests that the FAA grant 

the requested exemption. 

AIRCRAFT AND EQUIVALENT LEVEL OF SAFETY 

The applicant proposes that the exemption requested herein apply to civil aircraft that have the 

characteristics and that operate with the limitations listed herein. These limitations provide for at least 

an equivalent or even higher level of safety to operations under the current regulatory structure 

because the proposed operations represent a safety enhancement to the already safe movie and 

television filming operations conducted with conventional aircraft. 

These limitations and conditions to which Inhouse 3D, LLC agrees to be bound when conducting 

commercial operations under an FAA issued exemption include: 

1. The UAS will weigh less than 55 Ibs. 

2. Flights will be operated within line of sight of a pilot and/or observer. 

3. Maximum total flight time for each operational flight will be 30 minutes. Flights will be terminated at 

25% battery power reserve should that occur prior to the 30 minute limit. 

4. Flights will be operated at an altitude of no more than 400 feet AGL or, not more than 200 feet above 

an elevated platform from which filming is planned. 

5. Minimum crew for each operation wil) consist of the UAS Pilot and the Visual Observer. 

6. UAS Pilot will be Pilot in Command (PIC). If a pilot certificate holder other than the UAS Pilot, who 

possess the necessary PIC qualifications, is also present on set (i.e. the Aerial Coordinator that person 

can also be designated as PIC. 

7. The UAS will only operate within a confined "Sterile Area" as defined in the Manual. Section H, I and J 

of the Manual requires the establishment of a"Security Perimeter" for the flight operations area. 

8. A briefing will be conducted in regard to the planned UAS operations prior to each day's production 

activities. It will be mandatory that all personnel who will be performing duties within the boundaries of 

the safety perimeter be present for this briefing. 

9. The operator will file a FAA Form 7711-1, or its equivalent, as modified in light of the requested 

exemption, with the appropriate Flight Standards District Office. 

10. The operator will obtain the consent of all persons involved in the filming and ensure that only 

consenting persons will be allowed within 100 feet of the flight operation, and this radius may be 

reduced to 30 feet based upon an equivalent level of safety determination, as required by Section K of 

the Manual. With the advanced permission of the relevant FSDO, operations at closer range can be 

approved. 

11. The operator will submit a written Plan of Activities to the FSDO three days before the proposed 

shoot as required in Section K of the Manual. 

12. Pilot and observer will have been trained in operation of UAS generally and received up-to-date 

information on the particular UAS to be operated as required Sections M and N of the Manual. 

13. Observer and pilot will at all times be able to communicate by voice and/or text. 

14. Written and/or oral permission from the relevant property holders will be obtained. 
15. AII required permissions and permits will be obtained from territorial, state, county or city 

jurisdictions, including local law enforcement, fire, or other appropriate governmental agencies. 

16. If the UAS loses communications or loses its GPS signal, the UAS will have capability to return to a 

pre-determined location within the Security Perimeter and land. 

17. The UAS will have the capability to abort a flight in case of unpredicted obstacles or emergencies. 

414 C.F.R. Part 21, Subpart H: Airworthiness Certificates 14 C.F.R. 91.203 (a) (1) 

Subpart H, entitled Airworthiness Certificates, establishes the procedural requirements for the issuance 

of airworthiness certificates as required by FAR §91.203 (a) (1). Given the size and limited operating area 

associated with the aircraft to be utilized by the Applicant an exemption from Part 21 Subpart H meets 

the requirements of an equivalent level of safety under Part 11 and Section 333 of the Reform Act. The 

Federal Aviation Act (49 U.S.C.§44701 (f)) and Section 333 of the Reform Act both authorize the FAA to 

exempt aircraft from the requirement for an airworthiness certificate, upon consideration of the size, 

weight, speed, operational capability, and proximity to airports and populated areas of the particular 

UAS. In all cases, an analysis of these criteria demonstrates that the UAS operated without an 

airworthiness certificate, in the restricted environment and under the conditions proposed will be at 

least as safe, or safer, than a conventional aircraft (fixed wing or rotorcraft) operating with an 

airworthiness certificate without the restrictions and conditions proposed. 

The UAS to be operated hereunder is less than 55 Ibs. fully loaded, carries neither a pilot nor passenger, 

carries no explosive materials or flammable liquid fuels, and operates exclusively within a secured area 

as set out in the Manual. Unlike other civil aircraft, operations under this exemption will be tightly 

controlled and monitored by both the operator, pursuant to the Manual's requirements, and under the 

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

of operation as is now done with conventional filming. The FAA will have advance notice of all 

operations. These safety enhancements, which already apply to civil aircraft operated in connection 

with motion picture and television production, provide a greater degree of safety to the public and 

property owners than conventional operations conducted with airworthiness certificates issued under 

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

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

operation, lack of explosive materials or flammable liquid fuels, and inability to carry a substantial 

externalload. 

14 C.F.R. 45.23 (b). Marking of the Aircraft 

The regulation requires: 

When marks include only the Roman capital letter "N" and the registration number is displayed on 

limited, restricted or light-sport category aircraft or experimental or provisionally certificated aircraft, 

the operator must also display on that aircraft near each entrance to the cabin, cockpit, or pilot station, 

in letters not less than 2 inches nor more than 6 inches high, the words "limited/' "restricted/' "lightsport/ "experimental/' or "provisional/' as applicable. 

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

will have no entrance to the cabin, cockpit or pilot station on which the word "Experimental" can be 

placed. Given the size of the UAV, two-inch lettering will be impossible. The word "Experimental" will be 

placed on the fuselage in compliance with §45.29 (f). 
The equivalent level of safety will be provided by having the UAV marked on its fuselage as required by 

§45.29 (f) where the pilot, observer and others working with the UAV will see the identification of the 

UAS as "Experimental." The FAA has issued the following exemptions to this regulation to Exemptions 

Nos.10700, 8738, 10167 and 10167A. 

14 C.F.R. 61.113 (a) &(b): Private Pilot Privileges and limitations: Pilot in Command. 

Sections 61.113 (a) &(b) limit private pilots to non-commercial operations. Because the UAS will not 

carry a pilot or passengers, the proposed operations can achieve the equivalent level of safety of current 

operations by requiring the PIC operating the aircraft to have a private pilot's license rather than a 

commercial pilot's license to operate this small UAS. Unlike a conventional aircraft that carries the pilot 

and passengers, the UAS is remotely controlled with no living thing on board. The area of operation is 

controlled and restricted, and all flights are planned and coordinated in advance as set forth in the 

Manual. The level of safety provided by the requirements included in the Manual exceeds that provided 

by a single individual holding a commercial pilot's certificate operating a conventional aircraft. The risks 

associated with the operation of the UAS are so diminished from the level of risk associated with 

commercial operations contemplated by Part 61 when drafted, that allowing operations of the UAS as 

requested with a private pilot as the PIC exceeds the present level of safety achieved by 14 C.F.R. 

§61.113 (a) & (b). 

14 C.F.R. 91.7(a): Civil aircraft airworthiness. 

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

there will be no airworthiness certificate issued for the aircraft, should this exemption be granted, no 

FAA regulatory standard will exist for determining airworthiness. Given the size of the aircraft and the 

requirements contained in the Manual for maintenance and use of safety check lists prior to each flight, 

as set forth in Sections J, Land Q, an equivalent level of safety will be provided. 

14 C.F.R. 91.9 (b) (2): Civil Aircraft Flight Manual in the Aircraft. 

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

(2) For which an Airplane or Rotorcraft Flight Manual is not required by §21.5 of this chapter, unless 

there is availab ► e in the aircraft a current approved airplane or 6 Rotorcraft Flight Manual, approved 

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

The UAS, given its size and configuration has no ability or place to carry such a flight manual on the 

aircraft, not only because there is no pilot on board, but because there is no room or capacity to carry 

such an item on the aircraft. 

The equivalent level of safety will be maintained by keeping the flight manual at the ground control 

point where the pilot flying the UAS will have immediate access to it. The FAA has issued the following 

exemptions to this regulation: Exemption Nos. 8607, 8737, 8738, 9299, 9299A, 9565, 956SB, 10167, 

10167A, 10602, 32827, and 10700. 

14 C.F.R. 91.103: Preflight action 
This regulation requires each pilot in command to take certain actions before flight to insure the safety 

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

will be needed. An equivalent level of safety will be provided as set forth in the Manual. The PIC will take 

all actions including reviewing weather, flight battery requirements, landing and takeoff distances and 

aircraft performance data before initiation of flight. 

14 C.F.R. 91.109: Flight instruction: 

Section 91.103 provides that no person may operate a civil aircraft (except a manned free balloon) that 

is being used for flight instruction unless that aircraft has fully functioning dual controls. UASs and 

remotely piloted aircraft, by their design do not have fully functional dual controls. Flight control is 

accomplished through the use of a control box that communicates with the aircraft via radio 

communications. The FAA has approved exemptions for flight training without fully functional dual 

controls for a number of aircraft and for flight instruction in experimental aircraft. See Exemption 

Nos.S778K & 9862A. The equivalent level of safety provided by the fact that neither a pilot nor 

passengers will be carried in the aircraft and by the size and speed of the aircraft. 

14 C.F.R. 91.119: Minimum safe altitudes 

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

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

helicopter complies with any route or altitudes prescribed for helicopters by the FAA. As this exemption 

is for a UAS that is a helicopter and the exemption requests authority to operate at altitudes up to 400 

AGL, or not more than 200 above an elevated ptatform from which filming is planned, an exemption 

may be needed to allow such operations. As set forth herein, except for the limited conditions stated in 

the Manual, the UAS will never operate at higher than 400 AGL. It will however 7 be operated in a 

restricted area with security perimeter, where buildings and people will not be exposed to operations 

without their pre-obtained consent. 

The equivalent level of safety will be achieved given the size, weight, speed of the UAS as well as the 

location where it is operated. No flight will be taken without the permission of the property owner or 

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

activity, all affected individuals will be aware of the planned flight operations as set forth in Section K of 

the Manual. Compared to flight operations with aircraft or rotorcraft weighting far more than the 

maximum 551bs. proposed herein and the lack of flammable fuel, any risk associated with these 

operations is far less than those presently presented with conventional aircraft operating at or below 

500 AGL in the movie industry. In addition, the low-altitude operations of the UAS will ensure separation 

between these small- UAS operations and the operations of conventional aircraft that must comply with 

Section 91.119. 

14 C.F.R. 91.121 Altimeter Settings 

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

an altimeter that is set "... to the elevation of the departure airport or an appropriate altimeter setting 

available before departure." As the UAS may not have a barometric altimeter, but instead a GPS altitude 

read out, an exemption may be needed. An equivalent level of safety will be achieved by the operator, 

pursuant to the Manual and Safety Check list, confirming the altitude of the launch site shown on the 

GPS altitude indicator before flight. 
14 C.F.R. 91.151(a): Fuel Requirements for Flight in VFR Conditions 

Section 91.151(a) prohibits an individual from beginning "a flight in an airplane under VFR conditions 

unless (considering wind and forecast weather conditions) there is enough fuei to fly to the first point of 

intended landing, and, assuming normal cruising speed- (1) During the day, to fly after that for at least 

30 minutes; or (2) At night, to fly after that for at least 45 minutes." 

The battery powering the UAS provides approximately 40 minutes of powered flight. To meet the 30 

minute reserve requirement in 14 CFR §91.151, UAS flights would be limited to approximately 10 

minutes in length. Given the limitations on the UAS's proposed flight area and the location of its 

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

conditions is reasonable. 

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

See Exemption 10673 (allowing Lockheed Martin Corporation to operate without compliance with FAR 

91.151(a)). Operating the small UAS, in a tightly controlled area where only people and property owners 

or official representatives who have signed waivers will be allowed, with less than 30 minutes of reserve 

fuel, does not 8 engender the type of risks that Section 91.151(a) was intended to alleviate given the size 

and speed of the small UAS. Additionally, limiting UAS flights to 10 minutes would greatiy reduce the 

utility for which the exemption will be granted. 

Applicant believes that an equivalent level of safety can be achieved by limiting flights to 30 minutes or 

25% of battery power whichever happens first. This restriction would be more than adequate to return 

the UAS to its planned landing zone from anywhere in its limited operating area. 

Similar exemptions have been granted to other operations, including Exemptions 2689F, 5745, 10673, 

and 10808. 

14 C.F.R. 91.203 (a) and (b): Carrying Civil Aircraft Certification and Registration 

The regulation provides in pertinent part: 

(a) Except as provided in§ 91.715, no person may operate a civil aircraft unless it has within it the 

following: 

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

(b) No person may operate a civil aircraft unless the airworthiness certificate required by paragraph (a) 

of this section or a special flight authorization issued under §91. 715 is displayed at the cabin or cockpit 

entrance so that it is legible to passengers or crew. 

The UAS fully loaded weighs no more than 55 Ibs. and is operated without an on board pilot. As such, 

there is no ability or place to carry certification and registration documents or to disp{ay them on the 

UAS. 

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

where the pilot flying the UAS will have immediate access to them, to the extent they are applicable to 
the UAS. The FAA has issued numerous exemptions to this regulation. A representative sample of other 

exceptions includes Exemption Nos. 9565, 9665, 9789, 9789A, 9797, 9797A, 9816A, and 10700. 

14 C.F.R. 91.405 (a); 407 (a) (1); 409 (a) (2); 417(a) &(b): Maintenance Inspections 

These regulations require that an aircraft operator or owner {{shall have that aircraft inspected as 

prescribed in subpart E of this part and shall between required inspections, except as provided in 

paragraph (c) of this section, have discrepancies repaired as prescribed in part 43 of this chapter...' and 

others shall inspect or maintain the aircraft in compliance with Part 43. 

Given that these section and Part 43 apply only to aircraft with an airworthiness certificate, these 

sections will not apply to the applicant. Maintenance will be accomplished by the operator pursuant to 

the flight manual and operating handbook as 9 referenced in the Manual. An equivalent level of safety 

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

operate only in restricted areas for limited periods of time. If inechanical issues arise the UAS can land 

immediately and will be operating from no higher than 400 feet AGL. As provided in the Manual the 

operator will ensure that the UAS is in working order prior to initiating flight, perform required 

maintenance, and keep a log of any maintenance performed. Moreover - the operator is the person 

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

provide the equivalent level of safety. 

********* 

Pursuant to 14 C.F.R. Part 11, the following summary is provided for publication in the Federal Register, 

shouid it be determined that publication is needed: 

Applicant seeks an exemption from the following rules: 14 C.F.R. 21, subpart H; 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) and 

(b); 91.405 (a); 91.407 {a) (1); 91.409 (a) (2); 91.409 (a) (2) and 91.417 {a) & (b) to operate commercially 

a small unmanned vehicle (551bs or less) in motion picture and television operations. 

Approval of exemptions allowing commercial operations of UASs in the film industry will enhance safety 

by reducing risk. Conventional film operations, using jet or piston power aircraft, operate at extremely 

low altitudes just feet from the subject being filmed and in extreme proximity to people and structures; 

and present the risks associated with vehicles that weigh in the neighborhood of 4,000 Ibs., carrying 

large amounts ofjet A or other fuel. Such aircraft must fly to and from the film location. In contrast, UAS 

weighing fewer than 55 Ibs. and powered by batteries eliminates virtually all of that risk given the 

reduced mass and lack of combustible fuel carried on board. The UAS is carried to the film set and not 

flown. The UAS will carry no passengers or crew and, therefore, will not expose them to the risks 

associated with manned aircraft flights. 

The operation of small UASs, weighting less than 55 Ibs., conducted in the strict conditions outlined 

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

herein, including exempting the applicant from the requirements of Part 21 and allowing commercial 

operations. These lightweight aircraft operate at slow speeds, close to the ground, and in a sterile 

environment and, as a result, are far safer than conventional operations conducted with turbine 

helicopters operating in dose proximity to the ground and people. 
Privacy 

AII flights will occur over private or controlled access property with the property owner's prior consent 

and knowledge. Filming will be of people who have also consented to being filmed or otherwise have 

agreed to be in the area where filming will take place. Satisfaction of the criteria provided in Section 333 

of the Reform Act of 2012--size, weight, speed, operating capabilities, proximity to airports and 

populated areas and operation within visual fine of sight and national security- provide more than 

adequate justification for the grant of the requested exemptions allowing commercial operation of 

applicant's UAS in the motion picture and television industry pursuant to the Manual appended hereto. 

Sincerely, 

~.I 

, 

/ 

Michael Osterholz 

Inhouse 3D, LLC