JanuaYy 6, 2015

U. S. Department of Transportation Docket Management SystemFl 1200 New Jersey Ave., SE Washington, DC 20590

Dear Sir or Madam:
Attached please find Pete Lien and Sons, Inc.'s request for an exemption from the listed Federal Aviation Regulations to allow commercial operation of its Small Unmanned Aircraft Systems ("sUASs") for aerial imaging for safety and monitoring of secured and controlled j ob sites. This exemption request is exclusively for the use of the UAS manufactured by Kespiy, Inc., a Menlo Park based company.
Also attached to this letter is the Kespry UAS Flight Manual, which outlines the operating requirements, limitations, and technical specifications for the Kespry system. Pete Lien and Sons, Inc. has reviewed this Manual and has found it to be acceptable for sUAS operations on its secure project sites. Pete Lien and Sons, Inc. submits this manual as a Confidential document under 14 CFR 11.35 (b) as the entire manual contains proprietaly infoimation that the applicant has not and will not share with others. The Manual contains operating conditions and procedures that are not available to the public and are protected fiom release under the Freedom of Information Act 5 USC 552 et. seq.
Thank you for your time and consideration, and please let me know if you have any questions.

Sincerely,



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Danielle Wiebers Pete Lien and Sons, Inc.

Gabriel Dobbs Kespry, Inc.



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~January 6, 2015

U. S. Department of Transportation Docicet Management System ❑ 1200 New Jersey Ave., SE Washington, DC 20590
Re: Exemption Request Section 333 of the FAA Reform Act and Part 1 I of the Federal Aviation Regulations from 14 CFR 61.113 (a) &(b); 91.103 (b); 91.119; 91.121; 91.151(a); 91.405 (a); 91.407(a) (1); 91.409 (a) (2); 91.417 (a) & (b).
Dear Sir or Madam:
Pursuant to Section 333 of the FAA Modeinization and Reforrn Act of 2012 (the RefoiYn Act) and 14 C.F.R. Part 11, Pete Lien and Sons, Inc., a construction materials company, hereby applies for an exemption fiom the listed Federal Aviation Regulations ("FARs") to allow commercial operation of its Small Unmanned Aircraft Systems ("sUAS") for aerial imaging for safety and monitoring of secured and controlled environment j ob sites, so long as such operations are conducted within and under the conditions outlined herein or as may be established by the FAA as required by Section 333. As detailed in this document and the attached Flight Manual, the requested exemption would permit the operation of sUAS under controlled conditions in airspace that is 1) limited 2) predetermined 3) controlled as to access and 4) would provide safety enhancements to the already best practices safety protocols followed by Pete Lien and Sons, Inc. at each one of its job sites. Approval of this exemption would thereby 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." Section 333(c) of the Reforrn Act. The name and address of the applicant is: Pete Lien and Sons, Inc. PO Box 440, Rapid City, SD 57709 PH: (605) 342-7224 Email: dwiebers@petelien.com
Regulations from which the exemption is requested:

14 C.F.R. Part 21 ❑ 14 C.F.R. 45.23(b)0 14 C.F.R. 61.113 (a) & (b) 14 C.F.R. 91.7 (a) ❑ 14 C.F.R. 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 C.F.R. 91.151 (a)

1❑ 14 C.F.R. 91.203 (a) & (b)

14 C.F.R. 91.405 (a) ❑ 14 C.F.R. 407 (a) (1)0 14 C.F.R. 409 (a) (2)0 14 C.F.R. 417 (a) & (b)

I. STATUTORY AUTHORITY FOR EXEMPTIONS The Federal Aviation Act expressly grants the FAA authority to issue exemptions. This statutory authority includes exempting civil aircraft, as the tei

- rn is defined under §40101 of the Act, including sUASs, from the requirement that all civil aircraft must have a current aii

- worthiness certificate. The Administrator may grant an exemption from a requirement of a regulation prescribed under subsection (a) or (b) of this section or any sections 44702-44716 of this title if the Administrator finds the exemption in the public interest. 49 U.S.C. §44701(f) See also 49 USC §44711(a); 49 USC §44704; 14 CFR §91.203(a) (1). Section 333(b) of the Refoi

- m Act assists the Secretary in determining whether sUAS may operate in the National Airspace System (NAS) without creating a hazard to the user, the public, or a threat to national security. If the Secretary determines that a sUAS "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). Kespiy's sUAS are multirotor vehicles, weighing 10 or fewer lbs. 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. The sUAS will operate only in the Operator's visual line of sight at all times and will operate only within the sterile area described in the Confidential Kespry Flight Manual, attached as Exhibit 1(hereinafter "the Manual"). Such operations will insure that the sUAS will "not create a hazard to users of the national airspace system or the public." Reform Act Section 333 (b).
Given the small size of the sUAS involved and the restricted and sterile environment within which they will operate, our application falls squarely within the zone of safety (an equivalent level of safety) in which Congress envisioned that the FAA must, by exemption, allow commercial operations of sUAS to commence immediately. Also due to the small size of the sUAS and the low altitudes and restricted areas in which the sUAS will operate, approval of the application presents no national security issue. Given the clear direction in Section 333 of the Reform Act, the authority contained in the Federal Aviation Act, as amended; the strong equivalent level of safety surrounding the proposed operations, and the significant public benefit, including enhanced safety, the grant of the requested exemptions is in the public interest. Accordingly, Kespiy respectfully requests that the FAA grant the requested exemption without delay.

0II. PUBLIC INTEREST

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 NAS before completion of the rulemaking required under Section 332 of the Reform Act. By granting an exemption the FAA will fulfill Congress's intent of allowing UAS to operate with significant safety precautions in low risk environments. The use of sUAS on a construction site can significantly reduce the risk to workers of falls while inspecting, surveying, or monitoring site progress. sUAS can inspect, photograph, and collect data on hard to get to areas that othei-vvise would require worker inspection. Falls are a leading source of worlcplace fatality and injuYy on construction sites i , and reducing falls tluough sUAS use for site imaging could save worlcers lives. Additionally, sUAS could replace the use of helicopters and small aircraft to monitor sites. The sUAS we propose to fly in this application are under five pounds, and cany no combustible material on board, as opposed to the much larger conventionally powered small aircraft. Shifting to sUAS from helicopters presents a marked safety increase for our workers and the public. Lastly, sUAS reduce the environmental impact by dramatically decreasing the energy used for aerial imaging and data collection over a construction site. Our sUAS use rechargeable lithium polymer batteries, as opposed to fossil fuels burned in operation of small aircraft that are many hundreds of times heavier.

III. EQUIVALENT LEVEL OF SAFETY Kespiy proposes that the exemption requested herein apply to sUAS that have the characteristics and that operate with thc limitations listed herein. These limitations provide for at least an equivalent or even higher level of safety to operations under the curTent regulatoiy sti

- ucture because the proposed operations represent a safety enhancement to the already safe protocols followed on construction sites and imaging and surveying operations conducted with helicopters and other conventional aircraft. Kespiy will be bound by the following limitations when conducting its sUAS operations under an FAA issued exemption:
1. The sUAS will be less than 10 pounds. 2. Flights will be operated within visual line of sight of an operator. 3. Maximum total flight time for each operational flight will be 30 minutes. The UAS calculates battely resei

- ve in real time, and will return to its GPS determined takeoff location with at least 20% battely power reserve should that occur prior to the 30 minute limit.

1 "Commonly Used Statistics", Occupational Safety & Health Administration. Available at: https://www.osha.gov/oshstats/commonstats.html

34. Flights will normally be operated at an altitude of 200 feet AGL, never exceeding 400

feet AGL. 5. Any site within 5 miles of an airpoi

-t will not be flown without notification and approval of the local FAA Flight Standards District Office (FSDO) and aii

- port controller. 6. Crew for each operation will consist of the sUAS Operator who will keep the sUAS within his visual line of sight at all times. 7. The sUAS Operator will be trained in flight, operations, and safety procedures as detailed in the Flight Manual. 8. The sUAS will only operate within a confined "Sterile Area" as defined in the Manual. The Manual also requires the establishment of a"Security Perimeter" for the flight operations area. 9. A briefing will be conducted in regard to the planned sUAS operations prior to each day's production activities. It will be mandatory that all personnel who will be perfoY

-ming duties within the boundaries of the safety perimeter be present for this briefing. 10. All onsite personnel will consent to the UAS flyover, and the operator will obtain additional verbal or written consent of all persons who will be allowed within 100 feet of the flight operation. 11. Operator will have been trained in operation of UASs generally and received up-todate infoimation on the particular UAS to be operated as required by Section F of the Manual. 12. Written and/or oral permission from the relevant property holders will be obtained. 13. All required perrnissions and pelmits will be obtained from territorial, state, county or city jurisdictions, including local law enforcement, fire, or other appropriate governmental agencies. 14. If the sUAS loses communications or loses its GPS signal, it will have capability to enter reduce its hover tivottle and enter a controlled descent.

IV. DESCRIPTION OF SPECIFIC REGULATIONS
14 CFR 61.113 (a) &(b): Private operator privileges and limitations: Operator in command

Because the sUAS will not ca1

-iy an operator or passengers, the proposed operations can achieve the equivalent level of safety of curTent operations by requiring the Operator operating the aircraft to have completed a sUAS flight training course. The Kesply sUAS training course requires the Operator to have the requisite training and understanding of the National Airspace System to operate safely.
Unlike a conventional aircraft that carries the operator and passengers, the sUAS is remotely controlled with no living thing or cargo on board. Kespty's sUAS is also operated by an autopilot, which greatly reduces the danger of human etTor. The area of operation is controlled and restricted to hard hat areas, and all flights are planned and coordinated in advance as set forth in the Manual.

n ~The sUAS to be operated hereunder is less than 10 lbs. fully loaded, caYTies neither an

operator nor passenger, caiTies no explosive materials or flanunable liquid fuels, and operates exclusively within a secured area as set out in the Manual. Like other civil aircraft, operations under this exemption will be tightly controlled and monitored by the operator, pursuailt 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 cu1Tently done on active construction sites. The FAA will have advance notice of all operations.
The risks associated with the operation of the sUAS are therefore diminished from the level of risk associated with commercial operations contemplated by Part 61 when drafted, and allowing operations of the sUAS as requested with an Operator who has met the minimum requirements stated in Section F of the Manual achieves the level of safety contemplated by 14 C.F.R. §61.113 (a) & (b).

14 C.F.R. 91.103: Preflight Action
This regulation requires each operator in command take certain actions before flight to ensure the safety of flight. An exemption is needed from this requirement as the Operator will take separate preflight actions, including checking for weather conditions, checking flight batteiy requirements, checicing takeoff and landing distances, and all other actions in the Preflight Checldist in the Manual. These actions will provide an equivalent level of safety. See Appendix A of the Manual.

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. This exemption is for a multirotor craft that flies similarly to a helicopter, with vertical talce off and vertical landing, which will typically operate at altitudes of 200 AGL, so an exemption may be needed to allow such operations. The sUAS will never operate at altitude higher than 400 AGL and will be in a restricted area with security perimeter, where buildings and people will not be exposed to operations without their pre-obtained consent. See Manual for detailed procedures.
The equivalent level of safety will be achieved given the size, weight, speed of the sUAS 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 propei

- ty owner and any onsite personnel as outlined in the Manual, all affected individuals will be aware of the planned flight operations. Unlike flight operations with aircraft or rotorcraft weighing far more than the maximum 10 lbs. proposed herein, our sUAS will not carry flarnmable fuel. In addition, the low-altitude operations of the sUAS will ensure separation between sUAS 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 aitport or an appropriate altimeter setting available before departure." As the sUAS 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, confiiming the altitude of the launch site shown on the GPS altitude indicator before flight.
14 CFR 91.151 (a): Fuel requirements foi• flight in VFR conditions Section 91.151 (a) outlines fuel requirements for beginning a flight in VFR conditions. Our sUAS is limited to operations in sterile and controlled environments as outlined in the Manual, and has a limited range and flight time which require an exemption fi•om 14 CFR 91.151(a).
The battery powering the sUAS provides approximately 35 minutes of powered flight. To meet the 5-minute reserve requirement in 14 CFR §91.151, sUAS flights would be limited to approximately 30 minutes in length. Given the limitations on the sUAS's proposed flight area and the location of its proposed operations within a predetermined area, a longer time fiame for flight in daylight or night VFR conditions is reasonable.
Kespty believes that an exemption fiom 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 sUAS, in a tightly controlled area where only people and property owners or official representatives who have signed waivers will be allowed, with less than 3 0 minutes of reserve fuel, does not engender the type of risks that Section 91.151(a) was intended to alleviate given the size and speed of the small UAS. Additionally, limiting sUAS flights to 10 minutes would greatly reduce the utility for which the exemption will be granted.
An equivalent level of safety can be achieved by limiting flights to 30 minutes, or enough batteiy reserve to ensure that the sUAS lands at the GPS determined takeoff location with at least 20% of battery power (as determined by the onboard monitoring system and the Operator), whichever happens first. This restriction would be more than adequate to return the sUAS to its planned landing zone frorn anywhere in its limited operating area.
Similar exemptions have been granted to other operations, including Exemptions 2689F, 5745, 10673, and 10808.

14 CFR 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 Pat-t 43.

Given that these sections and Par

- t 43 apply only to aircraft with an airworthiness certificate,

31these sections will not apply to Kespiy. Maintenance will be accomplished by the operator

pursuant to the flight manual and operating handbook as referenced in the Manual. An equivalent level of safety will be achieved because these small sUAS are very limited in size and will cai7y a small payload and operate only in restricted areas for limited periods of time. If inechanical issues arise the sUAS can land immediately and will be operating fi•om no higher than 400 feet AGL. As provided in the Manual, the Operator will ensure that the sUAS is in worlcing order prior to initiating flight, perform required lnaintenance, 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, should it be determined that publication is needed:
Applicant seeks an exemption fiom 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 cornmercially a small unmanned vehicle (551bs or less) in consti-uction operations.
Approval of exemptions allowing commercial operations of sUAS in the construction industry enhances safety while reducing risk. Manned aircraft monitoring and sui-veying creates a greater risk because the craft are much larger, have combustible fuel, and cariy an onboard human operator. In contrast, a sUAS weighing fewer than 10 lbs. and powered by batteries eliminates virtually all of that risk given the reduced mass and lack of combustible fuel carried on board. The sUAS will cat-ry no passengers or crew and, therefore, will not expose them to the risks associated with manned aircraft flights.
The operation of slnall sUAS, weighing less than 10 lbs., conducted in the strict conditions outlined above, will provide an equivalent level of safety suppoi

- ting the grant of the exemptions requested herein, including exempting the applicant fiom 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 close proximity to the ground and people.

Privacy
All flights will occur over private or controlled access property with the proper

- ty owner's prlor consent and knowledge. Images taken will be of individuals who have also consented to being filrned or otherwise have agreed to be in the area where aerial photography will take place.

7Satisfaction of the criteria provided in Section 333 of the Reform Act of 2012--size,

weight, speed, operating capabilities, controlled operating environment and operation within visual line of sight and national security — provide more than adequate justification for the grant of the requested exemptions allowing commercial operation of applicant's sUAS in construction industry pursuant to the Manual appended hereto.

Sincerely,

Danielle Wiebers Pete Lien and Sons, Inc.

Gabriel Dobbs Kespry, Inc.

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