February 4, 2016

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

RE: Exemption Request Pursuant to Section 333 of the FAA Modern ization and Reform Act of 2012, 49 U.S.C. § 44701(f), and Part 11 of the Fe deral Aviation Regulations

Dear Sir or Madam:

We represent Midwest Claims Service, LLC and are submitting thi s Petition for Section 333 Exemption on their behalf under Section 333 of the FAA Moderniz ation and Reform Act of 2012 (“FMRA”).

Applicant Information:

The name of the applicant: Midwest Claims Service, LLC

The primary contact for this application, with a copy to me at the address above, is:

Brandan McGehee Midwest Claims Service, LLC

P.O. Box 15896 Lenexa, KS 66285

Midwest Claims Service, LLC is a limited liability company form ed under the State laws of Kansas on or about December 1, 2009, and Brandan McGehee is a M ember of Midwest Claims Service, LLC.

Pursuant to Section 333 of the FMRA, Midwest Claims Service, LL C hereby requests a determination by the Secretary of Transportation authorizing co mmercial operations of UAS for the purposes of aerial photography, aerial videography, data co llection and other work related to aerial photography in the NAS. Flight operations will utilize the off the shelf DJI family of

unmanned aircraft. Midwest Claims Service, LLC does not intend to use for closed set filming

. Conduct of UA operations will be with respect to FMRA Section 3 33(c) and the UAS “Blanket

COA”.February 4, 2016 Page 2 of 11

Exemption is necessary to effect the determination requested pu rsuant to FMRA Section 333. The attached documentation includes detailed exemption requests that demonstrate how these exemptions are in the public interest and will maintain at leas t an equal level of safety to existing regulations. Authorizing Midwest Claims Service, LLC to conduct commercial UAS operations will result in less disruptive, safer, and more cost effective solutions than manned aviation equivalents due to the low altitude environment, given the size , speed and inherent risk of traditional commercial helicopter operations. These commercial operations often occur in the unsafe areas of the height-velo city diagram requiring special p recision and skill. Midwest Claims Service, LLC will conduct the commercial UAS operation in a man ner that will meet, and in many cases exceed, the current level of safety of commercial he licopter operations. UA that are under 10 lbs., have a low noise signature, and carry no volatil e fuel, will limit collateral damage in the event of catastrophic failure. The low expense of operat ion compared to cost prohibitive manned aviation alternatives allow a greater economic benefit t o businesses. For these reasons, granting an exemption under FMRA Section 333(c) is in the publi c interest. UAS technology used for these commercial purpos es benefit the public interest in the following ways:

 Reduces the collateral damage risks to life and property associ ated with low altitude helicopter operations in undesi rable portions of the height-vel ocity envelope.

 Increased economic wellbeing to local businesses via cost reduc tions.

 Enabling aerial business solutions to be available to a larger market.February 4, 2016 Page 3 of 11



### Table of Contents

I. Exemptions Requested II. Commercial Operation/Operator III. Unmanned Aircraft System (UAS) IV. UAS Pilot-in-Command (PIC)

V. Public Interest VI. Summary

VII. List of Attachments

I. Exemptions Requested

Pursuant to 14 C.F.R. § 11.81(e), Midwest Claims Service, LLC r equests exemption from the following regulations:

 14 C.F.R. Part 21 Subpart H – Air worthiness Certificates

o Establishes: The procedural requirements for the issuance of airworthiness certificates as require d by 14 C.F.R. § 91.203(a)(1)

Given the small size of the UA a nd the safeguards that will be taken as outlined below, an exemption from Part 21 Subpart H m eets the requirements of an e quivalent level of safety

under Part 11 and Section 333 of the FMRA with consideration “o f the size, weight, speed, operational capability, and proximity to airports and po pulated areas of the particular UAS.”

 14 C.F.R. § 45.23(b) – Aircraft Marki ng and Identification Requ irements

o When marks include only the Ro man capital letter "N" and the re gistration number is displayed on limited, restricted or light-sport categ ory aircraft or experimental or provisionally cer tificated aircraft, the operat or must also display on that aircraft near each entrance to the cabin, cockpit, or p ilot station, in letters not less than 2 inches nor more than 6 inches high, the words " limited," "restricted," "light-s port, "experimental," or "provisional," a s applicable.

Midwest Claims Service, LLC will ensure compliance with § 45.29 (f) to meet the intent of the regulation by displaying the registration number in the largest practicable lettering.

 14 C.F.R. 61.113 (a)(b) and 61.133(a)(1)(ii) and 61.101 – Recr eational, Private and Commercial Pilot Privilege and Limitations

o 14 C.F.R. § 61.113: (a) Except as provided in paragraphs (b) through (g) of this section, no person who holds a pri vate pilot certificate may ac t as pilot in

command of an aircraft that is carrying passengers or property for compensation or hire; nor may that person, for compensation or hire, act as pilot in command ofFebruary 4, 2016 Page 4 of 11

an aircraft. (b) A private pilot may, for compensation or hire, act as pilot in

command of an aircraft in connect ion with any business or emplo yment.

o 14 C.F.R. § 61.133 : (a) Privileges – (1) General. A person who holds a commercial pilot certificate may act as pilot in command of an aircraft – (ii) For compensation or hire, provided th e person is qualified in accor dance with this part and with the applicable parts of this chapter that apply to the operation.

o 14 C.F.R. § 61.101 : (a) A person who holds a recreational pilot certificate may not act as pilot in command of an aircraft:

 For compensation or hire;

 In furtherance of a business;

UA operations will employ a PIC who holds, at a minimum, a recr eational or sport pilot certificate of any category or cla ss and a valid d river’s licen se.

 14 C.F.R. 91.7(a) – Civil Ai rcraft Airworthiness

o No person may operate a civil air craft unless it is in an airwo rthy condition.

The PIC will conduct daily pre and post flight inspections in a ccordance with manufactures maintenance manual( s) and guidance. During flight, the PIC will adhere to § 91.7(b) and abort air operations immediately upon identificat ion of an in-flight emergency or other unsafe condi tion. By complying with procedur es outlined by the manufacturer, an equivalent level of safety will be achieved.

 14 C.F.R. 91.9(b) Civil aircraft flight manual, marking, and pl acard requirements

o (b)(2) prohibits operation of U. S.-registered civil aircraft un less there is available in the aircraft a current approved Airplane or Rotorcraft Fligh t Manual, approved manual material, markings, and pl acards, or any combination the reof.

By keeping all operating documents, manuals, authorizations and exemptions in a binder co-located with the GCS, Midwest Claims Service, LLC meet the i ntent of the regulations and therefore achieve an equivalent level of safety

.

 14 C.F.R. 91.109(a) – Flight Instruction

o No person may operate a civil airc raft (except a manned free ba lloon) that is being used for flight instruction unle ss that aircraft has fully func tioning dual controls.

The majority of sUAS by design ar e developed with single operat ional control through the use of pre-determined GPS enabled waypoints programmed befo re or during flight in addition to the use of a single hand held transmitter or contro l station controlled by the PIC. The design does not allow for dual controls during flight training and therefore the exemption is requested to trai n operators, build experience, an d maintain proficiency. An equal level of safety will be achieved by conducting all traini ng in sterile environments. Training sessions will be accomp lished separately from flights conducted for compensation or hire.February 4, 2016 Page 5 of 11

 14 C.F.R. 91.119 (c) – Minimum Safe Altitudes

o Except when necessary for takeoff or landing, no person may ope rate an aircraft below the following altitudes: (b) Over any congested area of a city, town, or settlement, or over any open air assembly of persons, an altitu de of 1,000 feet above the highest obstacle with in a horizontal radius of 2,000 feet of the aircraft. (c) Over other than congested areas. An altitude of 500 feet ab ove the surface, except over open water or sparsely populated areas. In those ca ses, the aircraft may not be operated closer than 500 feet to any person, vessel, vehicle, or structure. (d) Helicopters, pow ered parachutes, and weight-shif t-control aircraft. If the operation is conducted without hazard to persons or propert y on the surface— (1) A helicopter may be operated at less than the minimums pres cribed in paragraph (b) or (c) of this section, provided each person oper ating the helicopter complies with any routes or altit udes specifically prescribed f or helicopters by the

FAA.

Commercial UAS operations will be conducted at or below the max imum altitude authorized by COA. Given the si ze, weight and lack of fuel; com bined with operation limitations listed below, the operation will be conducted with a greater level of safety

than exists with current m anned aviation operations.

 14 C.F.R. 91.121 – Altimeter Settings Each person operating an aircraft shall maintain the cruising a ltitude or flight level of that aircraft, as the case may be, by reference to an altimeter that is set, when operating... SUAS are equipped with Global Positioning System (GPS), which p rovide altitude and geolocation data to the operator without utilizing an altimeter. D ue to this fact, an exemption is required. GPS are precise within a few feet and combined with f ail-safes and a visual observer the operation will meet an equivalent level of safety.

 14 C.F.R. 91.151(a) – Fuel Requireme nts for Flight in VFR Condi tions

o No person may begin a flight in an airplane under VFR condition s unless (considering wind and forecast weather conditions) there is eno ugh fuel to fly to the first point of intended landing and, assuming normal cruisi ng speed— (1) During the day, to fly after t hat for at least 30 minutes;

This regulation is written based on the capabilities of a tradi tional aircraft, which have flight times of several hours or greater; therefore, with the m ajority of sUAS which have flight times of only an hour or less, this regulation would eff ectively deny the ability of the air vehicle to operate.

The PIC will achieve an equivalent level of safety by complying with all manufacturer guidelines and the DJI low battery failsafe system.February 4, 2016 Page 6 of 11

 14 C.F.R. 91.215(b) – ATC Transponder and Altitude Reporting Eq uipment and

Use.

o All airspace. Unless otherwise au thorized or directed by ATC, n o person may operate an aircraft in the airspace described in paragraphs (b) (1) through (b)(5) of this section, unless that aircr aft is equipped with an operable coded radar beacon transponder having either Mode 3/A 4096 code capability, replyi ng to Mode 3/A interrogations with the code specified by ATC, or a Mode S capa bility, replying to Mode 3/A interrogations with t he code specified by ATC and i ntermode and Mode S interrogations in accordance with the applicable provisi ons specified in TSO C-112, and that aircraft is equipped with automatic pressur e altitude reporting equipment having a Mode C capability that automatical ly replies to Mode C interrogations by transm itting pressure altitude informa tion in 100-foot increments. This requirement applies—

(1) All aircraft. In Class A, C lass B, and Class C airspace are as;

(2) All aircraft. In all airspace within 30 nautical miles of a n airport listed in appendix D, section 1 of this part f rom the surface upward to 1 0,000 feet MSL;

(3) Notwithstanding paragraph (b)(2) of this section, any aircr aft which was not originally certificated with an e ngine-driven electrical system or which has not subsequently been certified with such a system installed, ballo on or glider may conduct operations in the airspace within 30 nautical miles of an airport listed in appendix D, section 1 of this part provided such operations are conducted—

(i) Outside any Class A, Class B, or Class C airspace area; and

(ii) Below the altitude of the ceiling of a Class B or Class C airspace area designated for an airport or 10,000 f eet MSL, whichever is lowe r; and

(4) All aircraft in all airspace above the ceiling and within t he lateral boundaries of a Class B or Class C airspace area designated for an airport upward to 10,000
feet MSL; and

(5) All aircraft except any aircraft which was not originally c ertificated with an engine-driven electrical system or which has not subsequently b een certified with such a system instal led, balloon, or glider—

(i) In all airspace of the 48 contiguous states and the Distric t of Columbia at and above 10,000 feet MSL, excluding the airspace at and below 2,50 0 feet above the
surface; andFebruary 4, 2016 Page 7 of 11

(ii) In the airspace from the surface to 10,000 feet MSL within a 10-nautical-mile radius of any airport listed in appendix D, section 2 of this p art, excluding the airspace below 1,200 feet outside of the lateral boundaries of the surface area of the airspace designate d for that airport.

The sUAS to be used in the proposed operation does not come equ ipped with a transponder. No transponder exists for the sUAS, which can be i nstalled. The petitioner requests relief from the exempti on to the extent required to op erate in areas in which a transponder is required according the applicable regulations inthis part.

The PIC will achieve an equivalent level of safety by complying with all provisions of the COA under which operations are to be conducted. By issuing appropriate NOTAMS and prior ATO coordination, an equivalent level of safety can b e achieved as other manned aircraft, which receive au thorization to fly in airspace where a transponder is required but not operable. In or der to give proper notice to th e ATO, the PIC will comply with the provisions of 91.215(d)(3 ). The sUAS flown under this exemption will comply with all altitude limits and airport standoff distances require d by COA, which mitigate hazards to aircraft controlled by the ATO in congested airspace

.

 14 C.F.R. 91.405(a), 91.407(a)(1), 91.409(a)(2) and 91.417(a) & (b) – Maintenance Inspections

o 91.405(a) States : Each owner or operator of an aircraft—(a) 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 th is section, have discrepancies repaired as pres cribed in part 43 of this chapter

o 91.407(a)(1) States : (a) No person may operate any aircraft that has undergone maintenance, preventive maintenance, rebuilding, or alteration unless—(1) It has been approved for return to service by a person authorized unde r § 43.7 of this chapter

o 91.409(a)(2) States: (a) Except as provided in paragraph (c) of this section, no person may operate an aircraft unless, within the preceding 12 calendar months, it has had—(2) An inspection for the issuance of an airworthiness certificate in accordance with part 21 of this chapter. No inspection performe d under paragraph (b) of this section may be substituted for any inspection requi red by this paragraph unless it is performed by a person authorized to perf orm annual inspections and is entered as an ‘‘annual’’ inspection in the r equired maintenance

records.

o 91.417(a) & (b) States: (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 sect ion: (paragraphs 1 (i – iii), 2 (i – vi)); (b) The owner or operator shall retain the following records for the periods prescribed: (paragraphs 1 – 3)February 4, 2016 Page 8 of 11

The PIC will conduct Pre/Post flight inspections and maintenanc e in accordance with the manufacturer’s guidance as state d in the operations manual. If maintenance is required, the PIC will conduct a dedicated test flight will be conducted to ensure safety before resuming commercial operations. All inspection, maintenance and alterations will be

documented and maintained in a record. These actions will meet the intent of the regulations from which exemption is being requested and lead to an equivalent level of safety.

II. Commercial Operator/Operation

Any UA flown under this exemption will be controlled by a certi ficated PIC. The PIC will hold, at a minimum, a recreational or sport pilot certificate.

For each flight, Midwest Claims Service, LLC:

 Will contact the controlling air traffic organization to issue a NOTAM.

 Will conduct a comprehensive worksite inspection and analysis, identifying limits of customer property or authorized access areas.

 Will conduct preflight planning in accordance with Section 91.1 03 Preflight Action.

 Will operate in those areas only with the consent of the landow ner or designated representative.

 Will identify potential obstructions or other hazards to safe o peration.

 Will clear the area of personnel or bystanders that are non-ess ential to the operation, maintaining at a minimum, 500 feet away from non-participating persons.

 Will conduct a preflight safety briefing to Visual Observer (VO ) and participating

persons.

 Will at all times yield to manned air traffic.

 Will operate within VLOS of both PIC and VO during daylight hours only.

 Will maintain voice communications with VO and participating pe rsons.

 Will operate under visual flight r ules, in visual meteorologica l conditions, for the airspace in which the flight is conducted.

 Will not exceed the maximum altitude as defined in the COA unde r which flight authorized, as determined by the installed GPS.

 Will keep operating documents, manuals, authorizations and exemptions in a binder colocated with the GCS.

 Will immediately terminate flight, in the safest manner possibl e, when safety to persons or property become compromised.

 Will terminate flight, in the safest manner possible, when unab le to comply with these limitations or any other limitati ons granted as part of this ex emption.

In order to remain at an altitude at or below the attitude pres cribed by the applicable COA, relief is needed from Section 91.119 (c). By following these operating standards, the commercial operation will meet an equivalent l evel of safety to the regula tion in which relief is sought.February 4, 2016 Page 9 of 11

III. Unmanned Aircraft System

Midwest Claims Service, LLC seeks exemption to operate DJI UAS. Other UAS types may be requested in future amendments. The DJI Phantom 3 Advanced is t he primary aircraft in our operation for which we seek exemption. The UA will be flown via a combination of RC control

and tablet GCS. This UA type is a GPS equipped, multirotor helicopter. A quad-copter type rotorcraft utilizing four motors . Lithium-polymer batteries pow er the UA.

The UA also has several fail-safes for loss of RC signal, loss of GPS, and low battery as outlined in the respective Operation Manuals. The UA display visual and emit an audible low battery alerts at which time the UA will automatically engage the landi ng sequence. Based upon those safeguards, I request exemption from Section 91.151(b) Fuel req uirements for flight in VFR

conditions.

Given the size, weight, speed, and controlled operating area as sociated with the UA to be utilized, an exemption from 14 CFR part 21, Subpart H (Airworth iness Certificates) and § 91.203 (a) and (b) is requested. Exemption is sought from § 45. 23 Marking of the aircraft. The UA will display the registration number in the largest practica ble lettering. Midwest Claims Service, LLC seeks to be ex empt from § 91.405(a), 91.407(a)(1), 91.409(a)(2) and 91.417(a) and (b) Maintenance inspections will be conducted according to operations manual and prudent judgment as previously outlined to determine the integrity and safety of the UA and associated equipment. Further, relief is re quired from 91.7(a), which proh ibits the operation of an aircraft

without an airworthin ess certificate and 91.9(b) (2) requiring an approved flight manual in the aircraft. The UA will not be operating with an airworthiness ce rtificate therefore, this would be inappropriate. The UAS are too small to carry the operating doc uments so an equivalent amount of safety can be achieved th rough keeping the operating documen ts and manuals at the GCS.

IV. UAS Pilot in Command (PIC)

Under part § 61, recreational, sport and private pilots are lim ited to non-commercial operations, however Midwest Claims Service, LLC can ensure UA operations wi ll achieve an equivalent level of safety as current regulation because UA do not carry a ny pilots or passengers. A commercial pilot certificate will not ensure RC piloting abilit y, as the psychomotor skills are

different. The inherent risks o f operating a UAS are far less t han in the commercial activities outlined in 14 CFR part 61, et seq., thus exemption is requeste d from § 61.101 Recreational Pilot Privileges and Limitations. PICs will maintain recent flight experience on the UAS. Trainin g and experience flights will be conducte d separate from commercial o perations.

V. Public Interest

Given the above stated evidence, procedures, and precautions op erating UAS commercially for the purposes of aerial photography, aerial videography, data co llection and other work related to aerial photography will ultimately be in the public interest. T hese operations, when executed with prudence, will exceed the current level of safety as the r egulations from which exemption isFebruary 4, 2016 Page 10 of 11

sought. UA operations will allow greater access to commercial a erial services that were not previously economically feasible for many firms. This will prov ide a much needed economic uplift to the community and he nce the public. UA operations are associated with less risk of collateral damage to persons and property while limiting disrup tive noise pollution associated with low altitude aviation operations.

VI. Summary

Pursuant to Section 333 of PL 112-95 commonly known as the “FAA Modernization and Reform Act of 2012”, Midwest Claims Service, LLC, hereby applies for a uthorization to conduct commercial unmanned aerial systems (UAS) operations for the pur poses of aerial photography, aerial videography, data collecti on and other work related to a erial photography listings Rules for which exemption is sought:

 14 C.F.R. Part 21 Subpart H

 14 C.F.R. § 45.23(b)

 14 C.F.R. § 61.101, 61.113 and 61.133(a)(1)(ii)

 14 C.F.R. § 91.7(a)

 14 C.F.R. 91.9(b)

 14 C.F.R. § 91.103

 14 C.F.R. § 91.109(a)

 14 C.F.R. § 91.119

 14 C.F.R. § 91.121

 14 C.F.R. § 91.151(a)

 14 C.F.R. § 91.215(b)

 14 C.F.R. § 91.405(a)

 14 C.F.R. § 91.407(a)(1)

 14 C.F.R. § 91.409(a)(2)

 14 C.F.R. § 91.417(a) & (b)

VII. Attachments : 1. Specific UAV manuals.

a. DJI Phantom 3 Advanced How t o Update Firmware – Version 1.2

b. DJI Phantom 3 Advanced Release Notes

c. DJI Phantom 3 Advanced Safet y Guidelines Disclaimer

2. UAV user manual

a. DJI Phantom 3 Advanced User Manual

b. DJI Phantom 3 Advanced Charging Hub User Manual

3. Battery Manuals

a. DJI Phantom 3 Advanced Batter y Flight Safety Guidelines

4. Quick Start guides.

a. DJI Phantom 3 Advanced Quick Start GuideFebruary 4, 2016 Page 11 of 11

Thank you for your prompt attentio n and consideration. Traver se Legal and its clients are committed to safe UAS operation and ambassadors. Please do no t hesitate to contact me directly with any questions or concerns at 866-936-7447.

Very truly yours,

Traverse Legal, PLC

Enrico Schaefer Attorney at Law www.dronelaw.pro enrico@traverselegal.com

ES/cam

Enclosures