Date: 201304
Local time of day: 0601-1200
Location: VNY.Airport, CA
Flight conditions: Marginal
Weather elements / visibility: 9
Aircraft: Learjet 35
Operator: Air Taxi
Operating under: Part 135
Flight plan: IFR
Mission: Passenger
Flight phase: Initial Climb
Airspace: Class D VNY
ATC / advisory: Tower VNY
Aircraft component: Compass (HSI/ETC)
Component problem: Improperly Operated
Reporter organization: Air Taxi
Reporter function: Captain; Pilot Flying
Reporter qualification: Flight Crew Air Transport Pilot (ATP); Flight Crew Flight Engineer; Flight Crew Instrument; Flight Crew Multiengine
Human factors: Human-Machine Interface; Training / Qualification
Anomaly: Deviation - Track / Heading All Types; Deviation / Discrepancy - Procedural Clearance; Deviation / Discrepancy - Procedural Published Material / Policy; Inflight Event / Encounter CFTT / CFIT
Detector: Person Air Traffic Control; Person Flight Crew
When detected: In-flight
Result: Air Traffic Control Issued Advisory / Alert; Air Traffic Control Issued New Clearance; Flight Crew Became Reoriented
Contributing factors: Human Factors; Procedure
Primary problem: Human Factors

Narrative: [We were] departing VNY on the NUAL8 departure. The SID states to cross 2.2 DME south of the VNY VOR at or below 1;700 MSL. The departure description states NOT to join the radial to the southeast off of FIM VOR unless advised by ATC. We departed Runway 16L at VNY with a clearance to climb to 4;000. We assumed that would be AFTER passing the 2.2 DME fix. While level at 1;700; we became alarmed at the rising terrain south of our position; but I watched as the DME slowly clicked off to 2.2. It just didn't 'look right'. We were finally handed off to SoCal who immediately had us climb to 6;000 MSL and asked if we were assigned runway heading by VNY Tower. We replied yes although we were not actually given those words; nor were we told to join the radial off of FIM. SoCal also gave us an altitude alert and terrain advisory. The First Officer and I continued our climb and were vectored on course. We knew again that something just didn't 'look right'. It was at that time I noticed the knob on the lower left corner of the Captain's HSI with a display in the upper left corner of the HSI. It is a 3 position knob labeled distance; TTG (time to go); and speed. It was in the TTG position. What I had been looking at was time from VNY VOR not the DME! The First Officer had flown the Part 91 leg into VNY from the left seat (company procedure) and prefers to keep this knob in the TTG position for descent planning. I failed to notice/move the knob back to the DME position when I resumed the left seat. I also should have cross checked the DME display in front of the First Officer position on this jet during climbout.This is the second time I have missed a fix/turn/altitude on a SID because of the knob position. I have only myself to blame. I must be more disciplined in my preflight setup of the cockpit. However; I feel the SID we were flying also has some inherent dangers. If departing into low IFR conditions; it would be possible to fly into terrain while adhering to the mandatory at or below 1;700 MSL restriction while waiting for the display to read 2.2 with the knob in the TTG position; especially if there was a slow handoff between VNY Tower and SoCal. If you are not supposed to turn southeast until ATC advises and you are to cross at or below 1;700 MSL; it is just a setup for disaster! Luckily we had good VFR conditions and a clear view of the terrain.




Synopsis: LR35 Captain is confused by the NUAL8 departure from Runway 16R at VNY and an HSI that is not set to show DME. The aircraft is maintained on runway heading at 1;700 FT well past the 2.2 DME; alarming himself and the Controller involved.