May 2, 2016

 Exemption No. 12232B

 Regulatory Docket No. FAA–2015–1916

Mr. Kenny McLean

CDS Corporation

1924 Barnwell Street

Columbia, SC 29201

Dear Mr. McLean:

This letter is to inform you that we have granted your petition for an amendment. It explains 

the basis for our decision, describes its effect, and lists the revised conditions and limitations.

By letter dated August 19, 2015, you petitioned the Federal Aviation Administration (FAA) 

on behalf of CDS Corporation (hereinafter petitioner or operator) for an amendment to your 

current exemption. That exemption from §§ 61.23(a) and (c), 61.101(e)(4) and (5), 61.113(a), 

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

(2), and 91.417(a) and (b) of Title 14, Code of Federal Regulations (14 CFR) allows the 

petitioner to conduct UAS operations. You requested an amendment to add additional 

aircraft.

In your petition, you indicate that there has been no change in the conditions and reasons 

relative to public interest and safety that were the basis for granting the original exemption.

The FAA has determined that good cause exists for not publishing a summary of the petition 

in the Federal Register because the requested amendment to the exemption would not set a 

precedent, and any delay in acting on this petition would be detrimental to the petitioner. The 

unmanned aircraft authorized in the original grant are comparable in type, size, weight, speed 

and operating capabilities to those in this petition.

Airworthiness Certification

In accordance with the statutory criteria provided in Section 333 of Public Law 112−95 in 

reference to 49 U.S.C. § 44704, and in consideration of the size, weight, speed, and limited 

operating area associated with the aircraft and its operation, the Secretary of Transportation 

has determined that this aircraft meets the conditions of Section 333. Therefore, the FAA 
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finds that relief from 14 CFR part 21, Certification procedures for products and parts, 

Subpart H—Airworthiness Certificates, and any associated noise certification and testing 

requirements of part 36, is not necessary.

The petitioner proposed to use UAS that have previously been approved by the Secretary of 

Transportation under Section 333 of the FAA Modernization and Reform Act of 2012. UAS 

that have been previously approved by the Secretary, including the aircraft proposed by the 

petitioner, are found on the List of Approved Unmanned Aerial Systems (UAS) under Section 

333. The list, which is updated monthly, is posted at www.regulations.gov under docket 

number FAA-2007-3330. The petitioner is also authorized to operate any UAS on that list, 

when weighing less than 55 pounds including payload while this exemption is valid. 

The Basis for Our Decision

The FAA has updated the conditions and limitations since the petitioner’s initial grant of 

exemption to those found in Exemption No. 15005 to Thomas R. Guilmette (see Docket No. 

FAA-2015-5829). Also in Grants of Exemption Nos. 11433A to Cape Productions (see 

Docket No. FAA-2015-0223), 11213 to Aeryon Labs, Inc. (see Docket No. FAA-2014-0642), 

11062 to Astraeus Aerial (see Docket No. FAA−2014−0352), 11109 to Clayco, Inc. (see

Docket No. FAA−2014−0507), 11112 to VDOS Global, LLC (see Docket No. 

FAA−2014−0382), the FAA found that the enhanced safety achieved using an unmanned 

aircraft (UA) with the specifications described by the petitioner and carrying no passengers or 

crew, rather than a manned aircraft of significantly greater proportions, carrying crew in 

addition to flammable fuel, gives the FAA good cause to find that the UAS operation enabled 

by this exemption is in the public interest.

Having reviewed your reasons for requesting an amendment to an exemption, I find that—

• They are similar in all material respects to relief previously requested in Grant of 

Exemption Nos. 11062, 11109, 11112, 11213, 12645, 11433A, and 15005;

• The reasons stated by the FAA for granting Exemption Nos. 11062, 11109, 11112, 11213, 

12645, 11433A, and 15005 also apply to the situation you present; and 

• A grant of exemption is in the public interest.

Our Decision

The FAA has determined that the justification for the issuance of Exemption No. 12232A

remains valid and is in the public interest. Therefore, under the authority contained 

in 49 U.S.C. 106(f), 40113, and 44701, delegated to me by the Administrator, the operator is 

granted an amendment to its exemption from 14 CFR §§ 61.23(a) and (c), 61.101(e)(4) and 

(5), 61.113(a), 61.315(a), 91.7(a), 91.119(c), 91.121, 91.151(a)(1), 91.405(a), 91.407(a)(1), 

91.409(a)(1) and (2), and 91.417(a) and (b), to the extent necessary to allow the petitioner to 
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conduct UAS operations. This exemption is subject to the conditions and limitations listed 

below.1

 

Conditions and Limitations

In this grant of exemption, CDS Corporation is hereafter referred to as the operator.

The conditions and limitations within Grant of Exemption No. 12232A have been superseded, 

and are amended as follows. 

Failure to comply with any of the conditions and limitations of this grant of exemption will be 

grounds for the immediate suspension or rescission of this exemption.

1. The operator is authorized by this grant of exemption to use any aircraft identified on 

the List of Approved Unmanned Aerial Systems (UAS) under Section 333 at 

regulatory docket FAA-2007-3330 at www.regulations.gov, when weighing less than 

55 pounds including payload. Proposed operations of any aircraft not on the list

currently posted to the above docket will require a new petition or a petition to amend 

this exemption.

2. If operations under this exemption involve the use of foreign civil aircraft,2 the 

operator must obtain a Foreign Aircraft Permit pursuant to 14 CFR § 375.41 prior to 

conducting any commercial air operations under the authority of this 

exemption. Application instructions are specified in 14 CFR § 375.43. Applications 

should be submitted by electronic mail to the DOT Office of International Aviation, 

Foreign Air Carrier Licensing Division. Additional information can be obtained at 

https://cms.dot.gov/policy/aviation-policy/licensing/foreign-carriers

3. PIC certification: Under this exemption, a PIC must hold either an airline transport, 

commercial, private, recreational, or sport pilot certificate. The PIC must also hold a 

current FAA airman medical certificate or a valid U.S. driver’s license issued by a 

state, the District of Columbia, Puerto Rico, a territory, a possession, or the Federal 

government. The PIC must also meet the flight review requirements specified in 14 

CFR § 61.56 in an aircraft in which the PIC is rated on his or her pilot certificate.

4. PIC qualifications: The PIC must demonstrate the ability to safely operate the UAS in 

a manner consistent with how it will be operated under this exemption, including 

evasive and emergency maneuvers and maintaining appropriate distances from 

 

1 In this exemption, UAS operations are restricted to aerial data collection, which includes any remote sensing 

and measuring by an instrument(s) aboard the UA. Examples include imagery (photography, video, 

infrared, etc.), electronic measurement (precision surveying, RF analysis, etc.), chemical measurement 

(particulate measurement, etc.), or any other gathering of data by instruments aboard the UA.

2 Foreign civil aircraft means (a) an aircraft of foreign registry that is not part of the armed forces of a foreign 

nation, or (b) a U.S.-registered aircraft owned, controlled or operated by persons who are not citizens or 

permanent residents of the United States. 14 CFR § 375.1.
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persons, vessels, vehicles and structures before operating non-training, proficiency, or 

experience-building flights under this exemption. PIC qualification flight hours and 

currency may be logged in a manner consistent with 14 CFR § 61.51(b), however 

UAS pilots must not log this time in the same columns or categories as time accrued 

during manned flight. UAS flight time must not be recorded as part of total time.

5. Under all situations, the PIC is responsible for the safety of the operation. The PIC is 

also responsible for meeting all applicable conditions and limitations as prescribed in 

this exemption and ATO-issued COA, and operating in accordance with the operating 

documents. All training operations must be conducted during dedicated training 

sessions and may or may not be for compensation or hire. The operation must be 

conducted with a dedicated visual observer (VO) who has no collateral duties and is 

not the PIC during the flight. The VO must maintain visual sight of the aircraft at all 

times during flight operations without distraction in accordance with the conditions 

and limitations below. Furthermore, the PIC must operate the UA not closer than 500 

feet to any nonparticipating person without exception.

6. The UA may not be operated at a speed exceeding 87 knots (100 miles per hour). The 

exemption holder may use either groundspeed or calibrated airspeed to determine 

compliance with the 87 knot speed restriction. In no case will the UA be operated at 

airspeeds greater than the maximum UA operating airspeed recommended by the 

aircraft manufacturer.

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

(AGL). Altitude must be reported in feet AGL.

8. The UA 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 or 

U.S. driver’s license.

9. All operations must utilize a VO. The UA must be operated within the VLOS of the 

PIC and VO at all times. The VO may be used to satisfy the VLOS requirement as 

long as the PIC always maintains VLOS capability. The VO 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 VO can perform the duties required of the VO.

10. This exemption, the List of Approved Unmanned Aerial Systems (UAS) under Section 

333 at regulatory docket FAA-2007-3330 at www.regulations.gov, and all documents 

needed to operate the UAS and conduct its operations in accordance with the 

conditions and limitations stated in this grant of exemption, are hereinafter referred to 

as the operating documents. The operating documents must be accessible during UAS 

operations and made available to the Administrator upon request. If a discrepancy 
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exists between the conditions and limitations in this exemption and the procedures 

outlined in the operating documents, the conditions and limitations herein 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 or any law enforcement 

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

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

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

granted this exemption, then the operator must petition for an amendment to its grant 

of exemption. The FAA’s UAS Integration Office may be contacted if questions arise 

regarding updates or revisions to the operating documents.

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 prior to conducting further operations under this exemption. 

Functional test flights may only be conducted by a PIC with a VO and must remain at 

least 500 feet from other people. The functional test flight must be conducted in such 

a manner so as to not pose an undue hazard to persons and property.

12. The operator is responsible for maintaining and inspecting the UAS to ensure that it is 

in a condition for safe operation.

13. Prior to each flight, the PIC must conduct a pre-flight inspection and determine the 

UAS is in a condition for safe flight. The pre-flight inspection must account for all 

potential discrepancies, e.g., inoperable components, items, or equipment. 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.

14. The operator must follow the UAS manufacturer’s maintenance, overhaul, 

replacement, inspection, and life limit requirements for the aircraft and 

aircraft components.

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

safety bulletins.

16. UAS operations may not be conducted during night, as defined in 14 CFR § 1.1. All 

operations must be conducted under visual meteorological conditions (VMC). Flights 

under special visual flight rules (SVFR) are not authorized.

17. 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.
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18. For tethered UAS operations, the tether line must have colored pennants or streamers 

attached at not more than 50 foot intervals beginning at 150 feet above the surface of 

the earth and visible from at least 1 mile. This requirement for pennants or streamers 

is not applicable when operating exclusively below the top of and within 250 feet of 

any structure, so long as the UA operation does not obscure the lighting of the 

structure.

19. For UAS operations where GPS signal is necessary to safely operate the UA, the PIC 

must immediately recover/land the UA upon loss of GPS signal.

20. If the PIC loses command or control link with the UA, the UA must follow a predetermined route to either reestablish link or immediately recover or land.

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

weather conditions) there is enough available power for the UA to conduct the 

intended operation and to operate after that for at least 5 minutes or with the reserve 

power recommended by the manufacturer if greater.

22. The PIC must abort the flight operation if circumstances or emergencies that could 

potentially degrade the safety of persons or property arise. The PIC must terminate 

flight operations without causing undue hazard to persons or property in the air or on 

the ground.

23. Air Traffic Organization (ATO) Certificate of Waiver or Authorization (COA). All 

operations shall be conducted in accordance with an ATO-issued COA. The 

exemption holder may apply for a new or amended COA if it intends to conduct 

operations that cannot be conducted under the terms of the enclosed COA.

24. All aircraft operated in accordance with this exemption must be registered in 

accordance with 14 CFR parts 47 or 48, and have identification markings in 

accordance with 14 CFR part 45, Subpart C or part 48. For applicability and 

implementation dates of part 48 see 80 FR 78594 (Dec. 16, 2015).

25. Documents used by the operator to ensure the safe operation and flight of the UAS and 

any documents required under 14 CFR §§ 91.9 and 91.203 must be available to the 

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

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

official upon request.

26. The UA must remain clear and give way to all manned aviation operations and 

activities at all times. 

27. The UAS may not be operated by the PIC from any moving device or vehicle. 
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28. All flight operations must be conducted at least 500 feet from all persons, vessels, 

vehicles, and structures unless when operating:

a. Over or near people directly participating in the operation of the UAS. People 

directly participating in the operation of the UAS include the PIC, VO, and 

other consenting personnel that are directly participating in the safe operation 

of the UA.

b. Near but not over people directly participating in the intended purpose of the 

UAS operation. People directly participating in the intended purpose of the 

UAS must be briefed on the potential risks and acknowledge and consent to 

those risks. Operators must notify the local Flight Standards District Office 

(FSDO) with a plan of activities at least 72 hours prior to flight operations.

c. Near nonparticipating persons. Except as provided in subsections (a) and (b) 

of this section, a UA may only be operated closer than 500 feet to a person 

when barriers or structures are present that sufficiently protect that person from 

the UA and/or debris or hazardous materials such as fuel or chemicals in the 

event of an accident. Under these conditions, the operator must ensure that the 

person remains under such protection for the duration of the operation. If a 

situation arises where the person leaves such protection and is within 500 feet 

of the UA, flight operations must cease immediately in a manner that does not 

cause undue hazard to persons.

d. Near vessels, vehicles and structures. Prior to conducting operations the 

operator must obtain permission from a person with the legal authority over 

any vessels, vehicles, or structures that will be within 500 feet of the UA 

during operations. The PIC must make a safety assessment of the risk of 

operating closer to those objects and determined that it does not present an 

undue hazard.

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

permission from a person with the legal authority to grant access. Permission will be 

obtained for each flight to be conducted.

30. 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 within 24 hours. Accidents and incidents must 

be reported to the National Transportation Safety Board (NTSB) in accordance with 

49 CFR § 830.5 per instructions contained on the NTSB Web site: www.ntsb.gov.

For operations conducted closer than 500 feet to people directly participating in the intended 

purpose of the operation, not protected by barriers, the following additional conditions and 

limitations apply:

31. The operator must have an operations manual that contains at least the following 

items, although it is not restricted to these items.

a. Operator name, address, and telephone number.
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b. Distribution and Revision. Procedures for revising and distributing the operations 

manual to ensure that it is kept current. Revisions must comply with the applicable 

conditions and limitations in this exemption.

c. Persons Authorized. Specify criteria for designating individuals as directly 

participating in the safe operation of the UAS. The operations manual must include 

procedures to ensure that all operations are conducted at distances from persons in 

accordance with the conditions and limitations of the exemption.

d. Plan of Activities. The operations manual must include procedures for the 

submission of a written plan of activities.

e. Permission to Operate. The operations manual shall specify requirements and 

procedures that the operator will use to obtain permission to operate over property 

or near vessels, vehicles, and structures in accordance with this exemption.

f. Security. The manual must specify the method of security that will be used to 

ensure the safety of nonparticipating persons. This should also include procedures 

that will be used to stop activities when unauthorized persons, vehicles, or aircraft 

enter the operations area, or for any other reason, in the interest of safety.

g. Briefing of persons directly participating in the intended operation. Procedures 

must be included to brief personnel and participating persons on the risks involved, 

emergency procedures, and safeguards to be followed during the operation. 

h. Personnel directly participating in the safe operation of the UAS Minimum 

Requirements. In accordance with this exemption, the operator must specify the 

minimum requirements for all flight personnel in the operating manual. The PIC at 

a minimum will be required to meet the certification standards specified in this 

exemption.

i. Communications. The operations manual must contain procedures to provide 

communications capability with participants during the operation. The operator 

can use oral, visual, or radio communications as along as the participants are 

apprised of the current status of the operation.

j. Accident Notification. The operations manual must contain procedures for 

notification and reporting of accidents in accordance with this exemption.

In accordance with this exemption, the operating manual and all other operating 

documents must be accessible to the PIC during UAS operations.

32. At least 72 hours prior to operations, the operator must submit a written Plan of 

Activities to the local Flight Standards District Office having jurisdiction over the 

proposed operating area.

The Plan of Activities must include at least the following:

a. Dates and times for all flights. For seasonal or long-term operations, this can 

include the beginning and end dates of the timeframe, the approximate frequency 

(e.g. daily, every weekend, etc.), and what times of the day operations will occur. 

A new plan of activities must be submitted prior to each season or period of 

operations.

b. Name and phone number of the on-site person responsible for the operation.
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c. Make, model, and serial or N-Number of each UAS to be used.

d. Name and certificate number of each UAS PIC involved in the operations.

e. A statement that the operator has obtained permission from property owners. 

Upon request, the operator will make available a list of those who gave 

permission.

f. Signature of exemption holder or representative stating the plan is accurate.

g. A description of the flight activity, including maps or diagrams of the area over 

which operations will be conducted and the altitudes essential to accomplish the 

operation.

In accordance with this exemption, the Plan of Activities and all other operating 

documents must be accessible to the PIC during UAS operations. A new Plan of 

Activities must be submitted should there be any changes to items (a) through (g).

Unless otherwise specified in this grant of exemption, the UAS, the UAS PIC, and the UAS 

operations must comply with all applicable parts of 14 CFR including, but not limited to, 

parts 45, 47, 61, and 91.

This exemption terminates on July 31, 2017, unless sooner superseded or rescinded.

Sincerely,

/s/

John S. Duncan

Director, Flight Standards Service

Enclosure