Scott S. Christie Partner T
.973.848
.5388 F. 973.297.3981 schristie@mccarter.com

McCarter&English, LLP FourGateway Center 100 Mulberry Street Newark, NJ 07102-4056 T
.973.622.4444 F
.973.624.7070 www.mccarter.com

BOSTON HARTFORD STAMFORD NEW YORK NEWARK EAST BRUNSWICK PHILADELPHIA WILMINGTON WASHINGTON, DC June 9, 2015 

# McCARTER &ENGLISH ATTORNEYS AT LAW

U.S
.DepartmentofTransportation DocketManagement System 1200NewJerseyAve., SE Washington, D.C. 20590 Re: Exemption Request Pursuantto Section 333 oftheFMRAand Part 11 ofthe FederalAviation Regulations, SeekingExemption from 14 C.F.R. § 61.113(a); 14 C.F.R. § 91.7(a); 14 C.F.R. 

### § 91.119(c); 14 C.F.R. § 91.121; 14 C.F.R. § 91.151(a); 14 C.F.R. 

### § 91.405(a); 14 C.F.R. § 91.407(a)(1); 14 C.F.R. § 91.409(a)(1) & (2); 14 C.F.R. §91.417(a) & (b) Dear SirorMadam: Pursuant to Section 333 of the FAA Modernization and Reform Act of 2012 ("FMRA") and 14 C.F.R. Part 11, Xactware Solutions, Inc. ("Petitioner" or "Xactware") hereby applies for an exemption from the listed Federal Aviation Regulations ("FARs") and any others necessary to allow operation of its small Unmanned Aircraft Systems ("UAS") for both research and development ("R&D") and commercial use, so long as such operations are conducted within and under the conditions outlined herein. Xactware requests such authorizationto conduct outdoor flight operations for its use ofUAS for insurance functions, including using imagery and analytics in underwriting, catastrophe response, roof inspection, and claim resolution settings. These operations will help define the role ofUAS technology in Xactware's business operations and will guide the company in the most appropriate implementation ofsuch technology
. Ultimately, incorporating UAS into Xactware's business processes will improve worker safety and expedite response and claim resolution forXactware's customers. Xactware was founded in 1986 and provides computer software solutions for professionals involved in estimating all phases ofconstruction and reconstruction of a building, including routine and emergency repairs. Xactware's flagship product is Xactimate®, its premier estimating system. Xactimate® assists contractors and insurance adjusters in estimating repairs much faster and more accurately than previously could be accomplished. Over time, Xactimate® has evolved into a highpowered software package complete with a patented plan-sketching program, and Xactware has become much more thanjust a provider ofXactimate®. Today 22 of the top 25 property insurance companies in the United States and all ofthe top ten Canadianinsurers use Xactwareproperty insuranceclaims tools.

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Xactware features software solutions for every phase of a building's life: from remodeling to totally replacing a building, and from determining the cost of rebuilding a structure to preserving and repairing a home. Xactware users can work on a desktop, laptop, tablet, smartphone, or "on the cloud" using browser-based solutions. Estimating products are connected to a comprehensive set oftools that includes an assignment network, analytical reports, cost research, project management, and third-party products. The online training center provides users withhigh-qualitytraining onXactware solutions andthe constructionindustry. Xactware invests heavily in research and development as well as in the quality of peoplewho develop itsproducts. Xactware requests this exemption for three purposes. First, Xactware seeks an exemption to permit the operation of small UAS for R&D at Xactware's own facilities. These operations will be done under controlled conditions in airspace that is (1) limited, (2) predetermined, and (3) controlled as to access. Such operations will give Xactware valuable information about how best to safely and efficiently deployUAS to serve ourcustomers. Second, Xactware seeks an exemption to permit the commercial operation of its UAS in real world situations within the tightly-controlled and limited airspace over the property boundaries of individual real estate parcels with permission of the owners of said parcels. These operations will enable Xactware to gather vital informationrelated to using UAS for exterior structure inspection and analysis. Third, Xactware also requests an exemption to permit the commercial operation of its UAS in real world situations during and immediately following an actual catastrophe such as a tornado, hurricane, flood, mudslide, hail storm, wild fire, or other, similar event. In this scenario, Xactware's UAS operations would be coordinated with the FAA, local air traffic control ("ATC"), and the officials in chargeofonsite emergencyresponse. As detailedbelow, Xactware'sproposed use ofUAS will occurunder conditions that limit the likelihood of operations over members ofthe general public and ensure complete coordination with any manned aircraft operations. Furthermore, the FAA has issued a grant ofexemption in circumstances similar in all material respects to those presented herein in Grant ofExemption Nos. 11188 and 11309. Accordingly, the reasons stated by the FAA for granting the enclosed Grant ofExemption Nos. 11188 and 11309 also apply to this request for exemption which is in the public interest.

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### I. REQUESTFOREXEMPTIONTOUSE UAS ATXACTWARE SITES A. OverviewofRequestto Use UAS at Sites Owned or Controlledby Xactware. Xactware requests an exemption to allow the use of UAS at Xactware's own facilities or on property that it either owns or leases. All such locations will be a minimum of5 miles from any airport. During flight operations, the facility will not be open to the public and access will be restricted to Xactware employees or consultants directly engaged in related flight operations
. UAS operations will occur in Class G airspace at altitudes of 400 feet or less. There may be uninhabited buildings onproperty which will enable Xactware to test how UAS will operate and capture images overvarioustypes ofstructures. The purpose ofthese flight operations will be for research, development and training to provide UAS pilots and ground crew experience in inhabited areas. The flights also will be conducted to determine how best to integrate UAS into the Xactware's existing aerial capture and remote sensing programs. Xactware will consider whetherUAS maybeusedto capture imagery and other datato determine damageto roofs and structures, having contracted manned aircraft in the past for similar purposes. Such experience will permit Xactware to determine preferences for UAS deployment for any number ofreal world scenarios, including not only homeowners whohave suffered losses,butalso areashitby catastrophes. Xactware's request for exemption to perform UAS flight operations at its own facilities also carries with it a number ofbenefits. Because none ofthe six FAAselected UAS test sites are located in Utah, it would be impractical for Xactware to use these locations at this time for R&D. The test sites are too distant and would cause Xactware to incur unnecessary expense. Additionally, Xactware's need for UAS is centered on residential and commercial roofinspections, and must occur by operating over residential and commercial type structures. Performing these flight operations at Xactware's facilities solves these issues and allows safe and economical R&D andtraining. The petitioner thus requests authorization to perform UAS operations at its own facilities orat sitesthat it controls.

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B
. Public InterestBenefits ofPermittingUse ofUAS at Sites Owned or Controlledby Xactware. Xactware's request to operate UAS at its own facilities is in the public interest. Granting this petition advances Congress's goal of integrating civil UAS into the United States airspace safely. It also will allow flight operations to begin relatively quickly which is another of Congress's stated goals. Indeed, the UAS operations will allow Xactware to develop best practices for safety and flight operations using UAS systems currently availableto consumers. In addition, flight operations at Xactware's facilities will not create a hazard to aviation or to the public. As previously stated, flight operations will be conducted under 400 feet above ground level and will be suspended immediately in the event that manned aircraft are near the airspace ofthe facility. Safety precautions will be taken such as geofencing the UAS within the boundaries ofXactware's facilities. The site will notbe opento the public during flight operations, and Xactware's UAS will not fly over populated areas. Likewise, the flight operations do not create a threat to safety or security ofthe public due to the location and small size, minimal speed and load-carrying abilities ofUAS. II. REQUESTFOREXEMPTIONTOUSE UAS OVERINDIVIDUAL REALESTATEPARCELS A. OverviewofRequest to Use UAS over Individual Real Estate Parcels
. The second component of Xactware's exemption request involves UAS flight operations over private real estate parcels with permission of the owner of said parcels. The flight operations would again be in tightly-controlled and limited airspace within the property boundaries. These flight operations will enable Xactware to gather vital information related to using UAS for exterior structure inspection and analysis. All such locations will be a minimum of5 miles from any airport. During flight windows, no one with the exception ofthe pilot in command ("PIC"), the visual observer ("VO") and those directly involved in the UAS operations will be allowedto be in or around the outside ofthe building. UAS flight operations will occurin Class G airspace at altitudes of400 feet orless. The purpose ofthese flights will be to capitalize upon the results ofthe R&D flights in real world scenarios and to gather imagery and other sensor data for use in Xactware's workflows. These operations will allow Xactware to gather data from different structure and building types in a normal business environment. Xactware has contracted manned aircraft in the past for similarpurposes. Suchexperience will

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permit Xactware to determine preferences for UAS deployment for highly diverse real world scenarios, which will be particularly instructive for UAS operations during catastrophes. Accordingly, Xactware requests authorization to perform flight operations using UAS on private real estate parcels with permission from the owner or controller of theparcels. B
. Public InterestBenefits ofPermitting UseofUAS overIndividual Real EstateParcels Xactware's request to operate UAS at over private real estate parcels with permission ofthe owners is in the public interest. Granting this petition advances Congress's goal ofintegrating civil UAS into the United States airspace safely. It also will allow flight operations to begin relatively quickly which is another of Congress's stated goals. Indeed, the UAS operations will allowXactware to develop bestpractices for safety and flight operations using UAS systems currently available to consumers. In addition, flight operations will not create a hazard to aviation or to the public. As previously stated, flight operations will be conducted under 400 feet above ground level and will be suspended immediately in the event that manned aircraft are near the airspace oftheproperty. Safetyprecautions will betaken such as geofencing the UAS within the boundaries ofthe real estate parcel being examined. Likewise, the flight operations do not create a threat to safety or security ofthe public due to the locationand small size, minimal speed and load-carrying abilities ofUAS. III. REQUESTFOREXEMPTIONTOUSE UAS DURINGAND AFTER ACTUAL CATASTROPHES A. OverviewofRequestto Use UAS During and After Catastrophes. Xactware requests exemption for the use ofUAS both during and after real world catastrophes. The location and dates that catastrophes will occur cannot be predicted, and no test site or scheduled homeowner fly over can provide the scale, variability, complexity and unpredictability likely to occur during and after an actual catastrophe. Aerial imagery capture during and in the wake ofa natural disaster is critical for processing insurance claims arising from such a disaster, and such imagery capture with an UAS as opposed to a manned aircraft is not only more efficient, but also more cost effective. Because Xactware services 22 ofthe top 25 propertyinsurance companies in theUnited States, its abilityto capture aerial images

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during and after a catastrophe also will facilitate the timely and comprehensive resolution ofinsurance claims. As outlined in the operating procedures below, in the event of a catastrophe, Xactware will coordinate with local ATC, the FAA, officials in change ofon-scene emergency response, and all first responders to ensure that the use ofits UAS can occur safely and without impeding public safety efforts. Xactware will cease its UAS operations immediately at the direction of the applicable officials. Furthermore, Xactware's UAS operations will be
.conducted with notice to manned aircraft and will at all times deferto the operations ofsuchaircraft. B. Public InterestBenefits ofPermittingUse ofUASDuring andAfter Catastrophes. Granting this exemption as requested by Xactware will facilitate real-world flight operations under unpredictable circumstances, thereby allowing Xactware to gain valuable experience in flight planning, flight operations and coordination with first responders and emergency personnel. Such experience, coupled with the cost savings ofusing a UAS as opposed to a manned aircraft, will translate into quicker, less costly, and more effective serviceto insureds adversely affectedby catastrophes. Xactware's UAS operations in actual disaster conditions also may speed overall post-disasterreliefassessments to the extentthatthe data gained from UAS flights is shared with first responders, thus relieving manned ground and aviation assets ofthat obligation so that they can focus on othervital tasks. Indeed, video footage obtained by Xactware from UAS operations could materially assist first responders secure valuableknowledge ofthe aftermath ofa catastrophe, potentially saving lives. Operations will not create hazards for the public or for emergency response personnel because Xactware will coordinate with such personnel before, during and after flight operations. Nor will Xactware's UAS flights serve as an obstacle to manned flights since Xactware will always defer to the operation ofmanned aircraft in the relevant airspace. Furthermore, in order to properly alert other users ofthe airspace about Xactware'sUAS operation, Xactware will request aNotice to Airman ("NOTAM") as early as practicablepriorto operations.

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### IV. THEFAA HAS LEGALAUTHORITY TO GRANT THIS EXEMPTIONREQUEST Xactware believes that granting this request will aid the FAA in fulfilling Congress' goal in passing Section 333 of the FMRA. Section 333 directs the Secretary of Transportation to consider whether certain UAS may operate safely in the national airspace system ("NAS") before completion of the rulemaking required under Section 332 ofthe FMRA. The Secretary is required to determine which types of UAS do not create a hazard to users ofthe NAS or the public or pose a threat to national security in light ofthe UAS's size, weight, speed, and operational capability and whether operation will occur near airports or populated areas and within the visual line ofsight ofthe operator. The FMRA illustrates Congress's intent to have the FAA issue exemptions and allow civil UAS, as long as they operate within the necessary safetyparameters. In addition, the Federal Aviation Act expressly grants the FAAthe authorityto issue exemptions. This statutory authority by its terms includes exempting civil aircraft, as the term is defined under § 40101 ofthe Act, which includes UAS, from the requirement that all civil aircraft must have a current airworthiness certificate. The Administrator may grant an exemption from arequirement ofaregulationprescribed under§§ 44701(a) or (b) or in§§ 44702-44716 ofthe Act ifthe Administrator finds the exemptionto be in thepublic interest. V. APPLICATION INFORMATION Thenames and addresses oftheapplicant are: Xactware Solutions, Inc. JeffTaylor VP ofProperty InSight Xactware Solutions, Inc. 1100 WestTraverse Parkway Lehi, UT 84043 jctaylor@xactware.com 801-932-8201 Regulations from whichthe exemptionis requested: 14 C.F.R. §61.113(a); 14 C.F.R. §91.7(a);

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14 C.F.R. 

### §91.119(c); 14 C.F
.R. §91.121; 14 C.F.R. § 91.151(a); 14 C.F.R. § 91.405(a); 14 C.F.R. §91.407(a)(l); 14 C.F.R. §91.409(a)(1) and (2); and 14 C.F.R. § 91.417(a) and (b). 

### VI. THEAIRCRAFT Xactware specificallyproposesto conductoperations withthefollowing UAS: A. Aerialtronics Altura Zenith ATX8

- the Altura Zenith ATX8 is a multirotor aircraft with a carbon fiber airframe
. Itcan carry a maximumpayload of2.9 kg andhas a 5.6 kgtake-offweight. The 16.600mAhbattery allows up to 45 minutes offlighttime withpayloads ofupto 2.9kg. Themaximum speedfor the Zenith is 20 m/s and it features auto-takeoff and landing, auto return home and landing, GPS waypoint navigation and direction lock. The length andwidthofthis aircraft is 23.6"x 23.6,"and it stands up to 21.6"tall. B. DJI Phantom 2

- the DJI Phantom 2 is a multirotor aircraft with a plastic airframe. It can carry a maximum payload of300 g and has a 1.2kgtake-off weight. The 5.200 mAh battery allows up to 25 minutes offlight time
. The maximum speed for the Phantom is 15 m/s and it features no fly zones and auto-return to home and landing. The dimensions ofthis aircraft are 29 x 29 x 18 em. C. Parrot Bebop

- the Parrot Bebop is a multirotor aircraft with a plastic airframe. It is fully self-contained at 400 g and has no additional payload capacity. The 1.200mAhbattery allows upto 22 minutes offlighttime. The maximum speed for the Bebop is 13 m/s and it features auto-return to home. Thedimensionsofthis aircraft are 28 x 32x 3.6 em. 

### VII. OPERATINGPARAMETERSFORUAS USE Xactware 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 operations conducted with

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conventional aircraft. Further details about the aircraft and operating procedures are available inthe Operations Manuals and Training Syllabus. The limitations and conditions to which Xactware agrees to be bound for UAS operations when conducting R&D at an Xactware site or for real-world commercial operations under an FAA issued exemptioninclude: 1
. UAS operations will be conducted by aPIC holding, at aminimum, aprivate pilot certificate and a current third-class medical certificate. The PIC will also meet flight review requirements specified in 14 C.F.R § 61.56 in an aircraft inwhichthe PIC is rated onhis orherpilotcertificate. 2. UAS mustbe operated withinthe visual line ofsight ("VLOS") ofthe PIC at all times
. 3
. UAS operations must utilize a VO. The VO may be used to satisfy the VLOS requirement as long as the PIC always maintains VLOS capability. 4. The PIC and VO must be able to communicate verbally at all times. Electronic messaging ortexting is notpermittedduring flight operations. 5
. The PIC must be designated before the flight and cannot transfer his or her designation for the duration of the flight, with the exception of medical emergencies affecting his orher abilityto safely complete the flight. 6. The PIC must 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
. 7. The VO will 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. 8
. The PIC will not be allowed to operate the UAS unless the PIC has demonstrated through the operator's training and currency requirements that the PIC is able to safely operate the UAS in amanner consistentwithhowthe UAS will be operated under this exemption, including evasive and emergency maneuvers and maintaining appropriate distances from people, vessels, vehicles and structures. During training, the PIC must have accumulated and logged, in a manner consistent with 14 C
.F.R § 61.51(b),

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the minimum hours prescribed in the operating documents as UAS pilot operating the same make and model ofthe UAS to be utilized for operations under this exemption. Training, proficiency and experience-building flights can be conducted under this grant of exemption to quality the operator's PIC(s), VO(s), and other essential personnel as defined in the operating documents. Training operations can only be accomplished during dedicated training sessions and must be done at appropriate distances in accordance with 14 C.F.R §91.119. 9. Operations requested under this exemption are limited to the aircraft describedherein. Proposedoperations ofany other aircraftwill require anew petition or apetitionto amendthis grant. 10. TheUAS may notbe flown at an indicated airspeed exceeding 50 knots. 11. The UAS must be operated at an altitude ofno more than 400 feet above ground level ("AGL"). All altitudesreportedto ATC mustbe infeet AGL. 12. Prior to each flight the PIC will inspect the UAS to ensure it is in safe condition for flight. Ifthe inspection reveals a condition that affects the safe operation of the UAS, the aircraft is prohibited from operating until the necessary maintenance has beenperformed andthe UAS is in aconditionthat is safe for flight. The ground control station must also be included in the preflight inspection. All maintenance and alterations must be properly documented inthe aircraftrecords. 13. If the UAS has undergone maintenance or alterations that affect the UAS operation offlight characteristics, such as the replacement ofa critical flight component, the UAS must undergo afunctional test flight in accordance with the operating documents. The PIC who conducts the test flight must make an entry in the UAS aircraft records for the flight. Operating documents must include requirements and procedures for functional test flights and the record entries. 14. Preflight inspection must account for all discrepancies including inoperable components, items or equipment not covered in the relevant preflight inspection sections ofthe operating documents. 15. Xactware will follow the manufacturer's UAS aircraft and component maintenance overhaul, replacement, inspections, and life-limit requirements,

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with particular attention to critical flight components that may not be addressed inthe manufacturer'smanuals. 16. Xactware will carry out maintenance, inspections, and record keeping requirements in accordance with the grant and its own operating documents. Maintenance, inspection and alterations must be noted in the aircraft logbook including the total flight hours, description ofwork accomplished, and the signature ofthe authorized UAS technicianreturningthe UAS to service. 17. Xactware will comply with safety bulletins issued by the manufacturers of the listedUAS. 18. UAS operations will only be conducted during daylight hours as defined in 14 C.F.R § 1.1. Operations will also be conducted under visual meteorological conditions ("VMC"). 19. Xactware will not operate UAS within 5 nautical miles of the airport reference point of an airport as denoted on a current FAA-published aeronautical chart. 20. Ifthe UAS loses communications or loses its GPS signal, it will return to a pre-determined location within the private or controlled-access property and land orbe recovered in accordance with the operating documents. 21. In the event ofunpredicted emergencies or obstacles, the PIC must abort the flight. 22. Xactware will not begin UAS flight operations unless there is greater than 30%batterypowerremaining. 23. Xactware will obtain an Air Traffic Organization ("ATO") issued Waiver or Authorization ("COA")priorto conducting any operations underthis grant of exemption. Under the COA, Xactware will request a NOTAM no more than 72 hours in advance, but no less than 48 hours prior to the operation, except where shorter time periods are required for emergency response situations. Flight operations will be conducted in accordance with the airspace requirements inthe ATO issued COA, includingthe class ofairspace, altitude level andpotential transponderrequirements. 24
. Xactware will coordinate emergency response operations with state or local government agencies having appropriatejurisdictionalauthority.

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25. Aircraft operated under this exemption will be identified by serial number and registered in accordance with 14 C.F.R part 47, and have identification markings in accordance with 14 C.F.Rpart 45, Subpart C. The markings will be as large as practicable onthe bodyofthe aircraft. 26. Only radio frequencies that comply with UA and FCC requirements will be utilized. 27
. Xactware will have available for the PIC documents required under 14 C.F.R §§ 91.9 and 91.203 anytime the aircraft is operating. Xactware also will make these documents available to the FAA or to any law enforcement officialuponrequest. 28. The UAS will remain clear and yield the right ofway to all other manned aviation operations and activities at all times. 29. ThePIC will not operate the UAS from any moving device orvehicle. 30
. Flight operations must be conducted at least 500 feet from all nonparticipating persons unless structures or barriers are presentthat sufficiently protect nonparticipating persons from debris in the event of an accident. Xactware will ensure that nonparticipating persons remain under such protection. If a situation arises where non-participating persons leave such protection and are within 500 feet ofthe UAS, flight operations must cease immediately. 31. Xactware will operate the UAS over private or controller-access property only with permission from the property owner/controller or authorized representative. 

### VIII. SPECIFICSECTIONSOF 14 C.F.R. FROMWHICHPETITIONER SEEKSAN EXEMPTION Xactware requests exemption from the following FARS to the extent necessary to enable the requested UAS operations for the reasons detailed below. These exemptions mirror the grants that the FAAhas awarded in Grant ofExemption Nos. 11188and 11309 among others. A. 14 C.F.R. § 61.113(a): No person who holds a private pilot certificate may act as a pilot in command of an aircraft that is carrying passengers or

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property for compensation or hire; nor may that person, for compensation or hire, act as pilotin commandofan aircraft. Because Xactware proposes to operate its UAS with a pilot holding, at a minimum, aprivate pilot certificate and at least a current third-class medical certificate, Xactware seeks an exemption. B. 14 C.F.R. § 91.7(a): No person may operate a civil aircraft unless it is in an airworthy condition. As stated, Xactware will perform pre- and post-flight inspections to ensure the airworthiness ofthe UAS. It will follow manufacturer safety bulletins, perform maintenance and respect life-time limits as specified by the manufacturer. When critical flight components are replaced, repaired or modified, Xactware will perform test flights to verify these components are inworking condition. C. 14 C.F.R. § 91.119(c): No person may operate an aircraft below
... [a]n altitude of 500 feet above the surface, except over open water or sparsely populated areas. In those cases, the aircraft may not be operated closer than 500 feet to any person, vessel, vehicle, or structure. Because Xactware proposes to operate the UAS at no more than 400 feet AGL, the aircraft specified in this exemption will weigh 20 pounds or less, and nonparticipating persons will be adequatelyprotected, Xactware seeks an exemption. D. 14 C.F.R. § 91.121: Altimeter settings. Because the UAS will not have a typical barometric altimeters and, instead, rely upon GPS generated elevations, Xactware seeks an exemption. Xactware intends to operate the UAS within VLOS and at or below 400 feet AGL, as well as convert any GPS-related elevation data that needs to be delivered to FAAto the approximate barometric altimeterequivalent. E. 1 4 C.E.R. § 91.15l(a): No person may begin a flight in an airplane under VFR conditions unless (considering win and forecast weather conditions) there is enoughfuel to fly to the first point ofintended landing and, assuming normal cruising speed
... [ d]uring the day, to fly after that for at least 30 minutes.

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The UAS specified in this exemption request are battery-powered and can only fly for short periods oftime, i.e., not more than 45 minutes. For all practical purposes, however, most flight times will be shorter than the minimum 30 minutes specified in 14 C.F.R. § 91.151(a). Xactware seeks an exemption with the understanding that it will notbe allowed to begin a flight unless flight batteries onthe crafthave at least 30%powerremaining. F. 14 C.f
.R. § 91.405(a): Each owner or operator ofan aircraft
... [s]hall 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 part43 ofthis chapter. G. 14 C
.F.R. 

### § 91.407(a)(l): No person may operate any aircraft that has undergone maintenance, preventive maintenance, rebuilding, or alteration unless
... [i]t has been approved for return to service by a person authorized under§ 43.7 ofthischapter. H. 14 C.F.R. § 91.409(a)(l) and (2): Except as provided in paragraph (c) ofthis section, no person may operate an aircraft unless, within the preceding 12 calendar months, it has had (1) An annual inspection in accordance with part 43 ofthis chapter and has been approved for return to service by a person authorized by§ 43.7 ofthis chapter; or (2) An inspection for the issuance of an airworthiness certificate in accordance withpart21 ofthis chapter. I. 14 C.P.R. § 91.417: Maintenance records. (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 ofan aircraft. The records must include

- (i) A description (or reference to data acceptable to the Administrator) ofthe work performed; and (ii) The date ofcompletion ofthe work performed; and (iii) The signature, and certificate number ofthe 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 oflife-limited parts ofeach airframe, engine, propeller, rotor, and appliance; (iii) The time since last overhaul ofall 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

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inspection program under which the aircraft and its appliances are maintained; (v) The current status ofapplicable airworthiness directives (AD) and safety directives including, for each, the method ofcompliance, the AD or safety directive number and revision date. Ifthe 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) ofthis section shall be retained until the work is repeated or superseded by other work or for 1year after the work is performed; (2) The records specified in paragraph (a)(2) of this section shall be retained and transferredwiththe aircraft atthe time the aircraft is sold; (3) A listofdefects furnished to aregistered owneror operator under§ 43.11 ofthis chapter shall be retained until the defects are repaired and the aircraft is approved for returnto service. In consideration of 14 C.F.R. §§ 91.405(a), 91.407(a)(l), 91.409(a)(l) and (2), and 91.417 (a) and (b), Xactware will perform the detailed pre-flight checks, as well as routine maintenance, preventive maintenance, and replacement and overhaul ofcomponent parts ofthe UAS as required by the UAS operating documents. In addition, Xactware will perform test flight operations after such maintenance to ensure safety. Maintenance and inspections will be logged in the aircraft's log book which will be available for inspection at the FAA's request. Under these conditions, Xactware seeks an exemption. J. Such other relief as the FAA deems appropriate to enable the requested operations. Xactware also requests exemption from such other FARS as the FAA deems appropriate to enable the requested operations. If, during the effective dates ofany Grant ofExemption issued pursuant to this Petition, the FAA issues interim or final rules for small UAS, Xactware requests that it be relieved of the requirements of any conditions and limitations of said exemption and allowed to comply with any less burdensome applicable regulations that may havebecome effective.

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### IX. SUMMARYTOBEPUBLISHED IN FEDERAL REGISTER Petitioner: Xactware Solutions, Inc. Sections of14 C.F.R. Affected: § 61.113(a); § 91.7(a); § 91.119(c); § 91.121; § 91.151(a); §91.405(a); §91.407(a)(l); §91.409(a)(l) and (2); §91.417(a) and (b). Description ofReliefSought: Petitioner seeks relief from the requirements of 14 C.F.R. § 61.113(a); 14 C.F.R. §91.7(a); 14 C.F.R. § 91.119(c); 14 C.F.R. §91.121; 14 C.F.R. § 91.151(a); 14 C.F.R. § 91.405(a); 14 C.F.R. § 91.407(a)(l); 14 C.F.R. § 1.409(a)(l) and (2); and 14 C.F.R. § 91.417(a) and (b) to conduct small unmanned aircraft systems (UAS) operations at its own facilities, over individual private real estate parcels, and in limited areas following catastrophes subject to operating proceduresthatmeetor exceedthose thatthe FAArequires for similaroperations. X. CONCLUSION Satisfaction ofthe criteria provided in Section 333 ofthe FMRA regarding size, weight, speed, operating capabilities, proximity to airports and populated areas, operation within visual line of sight, and national security, provide more than adequatejustificationfor the grant ofthe requested exemption allowing operation of Petitioner's UAS operations related to the insurance industry pursuant to the Operations Manuals. The requested three exemptions-one for UAS operations at Xactware owned or controlled sites, and the second and third for real world UAS operations over individual private properties and in catastrophe situations

-- can be granted separately orin the same Grant. Please do nothesitate to contact Petitioner's outside counsel, ScottS. Christie at (973) 848-5388 or schristie@mccarter.com with any questions aboutthis filing.

ScottS. Christie Attachment: Confidential Operations Manuals and Training Syllabus

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