AFS-10-412-E 

 Exemption No. 10157 

UNITED STATES OF AMERICA 

DEPARTMENT OF TRANSPORTATION 

FEDERAL AVIATION ADMINISTRATION 

WASHINGTON, DC 20591 

 

In the matter of the petition of 

 

MARATHON OIL CORPORATION Regulatory Docket No. FAA-2010-0988

 

for an exemption from 

Special Federal Aviation Regulation 77 

of Title 14, Code of Federal Regulations 

 

 

DENIAL OF EXEMPTION 

 By letter dated September 15, 2010, Mr. Steve Thomas, Aviation Manager, Marathon Oil 

Corporation (Marathon Oil), 17281 JFK Boulevard, Houston, petitioned the Federal Aviation 

Administration (FAA) on behalf of Marathon Oil for an exemption from Special Federal 

Aviation Regulations (SFAR) No. 77-Prohibition Against Certain Flights Within the Territory 

and Airspace of Iraq of Title 14, Code of Federal Regulations. The proposed exemption, if 

granted, would allow Marathon Oil to operate its aircraft into the Kurdish region of northern 

Iraq, in the city of Erbil (ORER), on or about October 20, 2010, to transport key executives 

into Erbil. 

The petitioner requests relief from the following regulation:

Special Federal Aviation Regulations No. 77: 

1. Applicability. This rule applies to the following persons: 

a. All U.S. air carriers or commercial operators; 

b. All persons exercising the privileges of an airman certificate issued by the 

FAA except such person operating U.S.-registered aircraft for a foreign air 

carrier; or 

c. All operators of aircraft registered in the United States except where the 

operator of such aircraft is a foreign air carrier. 
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2. Flight prohibition. No person may conduct flight operation over or within the 

territory of Iraq except as provided in paragraphs 3 and 4 of this SFAR or except as 

follows: 

a. Overflights of Iraq may be conducted above flight level (FL) 200 subject to the 

approval of, and in accordance with the conditions established by, the 

appropriate authorities of Iraq. 

b. Flights departing from countries adjacent to Iraq whose climb performance will 

not permit operation above FL 200 prior to Iraqi airspace may operate at 

altitudes below FL 200 within Iraq to the extent necessary to permit a climb 

above FL 200, subject to the approval of, and in accordance with the conditions 

established by, the appropriate authorities of Iraq. 

3. Permitted operations. This SFAR does not prohibit persons described in 

paragraph 1 from conducting flight operations within the territory and airspace of 

Iraq when such operations are authorized either by another agency of the United 

States Government with the approval of the FAA or by an exemption issued by the 

Administrator. 

4. Emergency situations. In an emergency that requires immediate decision and 

action for the safety of the flight, the pilot in command of an aircraft may deviate 

from this SFAR to the extent required by that emergency. Except for U.S. air 

carriers or commercial operators that are subject to the requirements of 14 CFR part 

119, 121, or 135, each person who deviates from this rule shall, within ten days of 

the deviation, excluding Saturdays, Sundays, and Federal holidays, submit to the 

nearest FAA Flight Standards District Office a complete report of the operations of 

the aircraft involved in the deviation including a description of the deviation and 

the reasons therefore. 

5. Expiration. This SFAR will remain in effect until further notice. 

The petitioner supports its request with the following information:

The petitioner states it wishes to operate its wholly owned and operated Gulfstream V 

aircraft (N540M) into the Kurdish region of Northern Iraq. The purpose of the visit is 

to conduct meetings with key officials concerning oil exploration and production, 

which will provide sustainable revenue for the region and aid in the reconstruction of 

Iraq. 

Marathon Oil believes the completion of these meetings will benefit the Iraqi people 

and central government of Iraq by integrating their oil infrastructure with western 

companies and providing long term employment and stability for many local citizens. 

Further, the petitioner believes that these meetings will foster closer ties between the 

northern Iraq region and the United States and will be in the public interest of both 

countries. 
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In preparation for the visit, Marathon Oil and Marathon Oil Security have conducted 

detailed ground and air threat analysis and have determined the risks within the 

Northern Kurdish region to be manageable. 

The petitioner states that given the security measures and mitigation factors that it is 

employing, Marathon Oil estimates the risk to a U.S.-registered aircraft, its passengers, 

and crew are less than the risk imposed on its passengers if they were forced to use 

local charter services to travel from Tripoli, Libya to ORER. 

 The FAA has determined that good cause exists for waiving the requirement for 

Federal Register publication. Given the time in which this mission must be operated, the 

public interest would be served by granting Marathon Oil a waiver from the provision for 

publication and notice of this petition. 

The FAA's analysis is as follows: 

The FAA has considered fully the petitioner’s request and supporting material and finds that a 

grant of exemption would not be in the public interest. 

In May 2008, the FAA issued a denial of a petition for exemption from SFAR-77 under 

circumstances similar in nearly all material respects to those presented in your petition. In 

Denial of Exemption No. 9697 (copy enclosed), the FAA stated that the Department of State 

continues to advise companies that they incur significant political and legal risk by signing oil 

contracts with regional parties before a national law covering this sector is passed by the Iraqi 

Council of Representatives. The passage of a national law will contribute to promoting Iraqi 

national unity, a key goal of the United States and the international community. A new legal 

environment would provide additional assurance that companies will not become embroiled 

in a legal dispute between the Kurdistan Regional Government and Government of Iraq. It 

also offers the greatest prospect of a stable investment regime which will be needed to make 

investments in Iraq attractive. All companies which have spoken with the United States 

Government about investing in Iraq’s oil sector have been, and will continue to be, given the 

same advice. On this basis, the Department of State cannot concur with the envisioned 

operations of Marathon Oil to Erbil to meet with local governmental authorities in Iraq. 

Additionally, the petitioner generally addressed the threat mitigation measures it would 

employ for its operations to and from Erbil; but did not provide the details FAA would need 

to decide whether or not to grant an exemption. 

Applicants for an exemption from SFAR -77 must demonstrate exceptional circumstances to 

support a determination that the operation is in the public interest. (See FR 69 21953, April 

23, 2004). In responding to similar petitions for exemption, the FAA has determined that 

operations, such as the one you describe, do not present exceptional circumstances. Further, 

the Department of State’s advice to prospective investors in Iraq’s oil sector remains the same 
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today. Therefore, in reviewing the information provided in support of your petition for an 

exemption, I find that— 

 The purpose of the proposed operation does not materially differ from the operation 

described by the petitioner in the enclosed denial of exemption; 

 The reasons stated by the FAA for denying the enclosed exemption also apply to the 

operation you now propose to conduct; and 

 A grant of exemption would not be in the public interest of the United States, including its 

foreign policy goals. 

The FAA’s Decision: 

 In consideration of the foregoing, I find that a grant of exemption would not be in the 

public interest. Therefore, pursuant to the authority contained in 49 U.S.C. §§ 40113 

and 44701, delegated to me by the Administrator, the petition of Marathon Oil for an 

exemption from SFAR No. 77-Prohibition Against Certain Flights Within the Territory and 

Airspace of Iraq of Title 14, Code of Federal Regulations is hereby denied. 

Issued in Washington, DC, on October 29, 2010. . 

/s/ 

John W. McGraw 

Acting Director, Flight Standards 

 Service