Walmart >!< VIA ELECTRONIC FILING ‘The Honorable Michael P. Huerta Administrator Office of the Administrator Federal Aviation Administration 800 Independence Avenue SW Washington, DC 20591 October 26, 2015 Re: Exemption Request under Section 333 of the FAA Reform Act and Part 11 of the Federal Aviation Regulations Dear Administrator Huerta: Pursuant to Section 333 of the FAA Modernization and Reform Act of 2012 (the Reform Act) and 14 CER Part 11, Wal-Mart Stores Ine. (“Walmart”), hereby applies for an exemption from the listed Federal Aviation Regulations (“FARs") to allow commercial operation of its Small Unmanned Aircraft Systems (-UAS"), 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. Walmart is in the midst of a research and development effort of testing small unmanned aircraft systems (-UAS") for various uses. Tests to date, with Walmart as the Operator, have been strictly limited to indoor tests, but Walmart is interested in conducting flight tests, outdoors as the Operator. By this petition, Walmart is seeking its first such authorization under the Reform Act, to conduct UAS flights outdoors for the purposes described on the attached Exhibit A, with the UAS described on Exhibit B and within the applicable flight restriction parameters listed on Exhibit C. Throughout the years Walmart has been a leader in distribution and transportation methods to effectively move merchandise from vendors to distribution centers and from distribution centers to its stores. With this application Walmart seeks to continue its role in not only making the present distribution system more efficient (by exploring the use of UAS in taking inventories of trailers outside distribution centers oF inspecting conditions outside distribution centers), but also to conduct research and development to support the future extension of that distribution system direct to customers by using UAS for deliveries to customers at Walmart facilities, as well as to consumer homes. As detailed in this document and the attached exhibits, the requested exemption would permit the operation of UAS for defined purposes and under controlled conditions in airspace defined in Exhibit A that is: |) limited 2) controlled as to access and 3) would provide safety enhancements to the best practices safety protocols followed by Walmart. During the past several months Walmart, as the Operator, has conducted several UAS research and development flights exclusively indoors, which has built its capability to safely conduct such flights outdoors. The UAS equipment that Walmart has been using indoors, and will use in its outside testing, is described on the attached Exhibit B (those certain “DJI UAS" aircraft). Indoor flights have demonstrated not only the ability of Walmart to safely fly, control and maintain the UAS vehicles, but also to demonstrate the capability of the UAS vehicles to land in small areas and touch and go, use cameras, and the pickup and release of packages. Walmart would like to continue to conduct such research and development in an outdoor environment as the UAS Operator. Granting Walmart an exemption to allow R&D testing outdoors in the United States is in the publie interest. 1Walmart >'< Walmart’s distribution system could become more efficient and consumers could be better served, benefitting the public interest, while advancing goals of Congress under the FAA Modernization and Reform Act of 2012 to “to safely accelerate the integration of civil unmanned aircraft systems into the national airspace system.” Walmart would advance the safe use of UAS vehicles by testing the DJI UAS for the purposes described in Exhibit A and within the applicable flight restriction parameters listed on Exhibit C. Walmart can ensure that with the combination of the UAS vehicle's light weight, historically demonstrated flight performance, on board GPS system, fully qualified flight personnel, and strict operation under the guidelines established, the FAA can have confidence that Walmart’s operation will have an equivalent or greater level of safety of any manned vehicle performing the same missions. Under the scenarios and restrictions described, Walmart fits within that zone of safety (an equivalent level of safety) in which Congress envisioned that the FAA should, by exemption, allow commercial operations of UAS vehicles to commence immediately. Also due to the size of the UAS vehicles and the controlled areas in whieh the relevant UAS vehicles will operate, approval of the application presents no national security issue. Walmart respectively submits this petition for exemption so that Walmart can advance its research and development by conducting the test flights as the Operator outside, and therefore be ready for the use of UAS for all commercial purposes that will eventually be permitted by subsequent FAA act Information Supporting this Pet ion as Specified in 14 E.R, S1L.81 (@) Mailing address and other contact information such as a fax number, telephone number, or e-mail address Walt Metz Associate General Counsel Walmart Stores, Ine Logistics Legal Department 601 North Walton Boulevard MS. # 0710-L20 Bentonville, AR 72716-0710 479-270-0368 Walter. Metz@ almartlegal.com (6) The specific section or sections of 14 C.F.R. from which Walmart seeks an exemption (collectively, the “Sections”) + 14C.ER. Part 21 —Certification Procedures for Products and Parts 14 CER. § 45.23(b) — Display of marks; general + 14. CFR. § 61.113(a) and (b) ~ Private pilot privileges and limitations + 1ACER. § 91.9(b) — Civil airerafi flight manual, marking, and placard requirements 14 CER, § 91.109 — Flight Instruction; Simulated instrument flight and certain flight testsWalmart >< 14. C.BR. § 91.119 ~ Minimum safe altitude + 4CER. § 91.121 — Altimeter settings + 14CRR. § 91.151 — Fuel requirements for lights in VER conditions 14. CBR. § 91.203(a) and (b) — Civil Aircraft: Certifications Required + 14CER. § 91.405(a) — Maintenance required + 14.C.P.R. § 91.407%(a)(1) — Operation after maintenance © 14 CER. § 91.409(a)— Inspections + 14 CR. § 91.417(a) and (b) — Maintenance records Walmart believes an exemption from the regulations noted above will be sufficient to conduct the R&D described in this exemption request. To the extent that FAA may deem it necessary, however, ‘Walmart also requests an exemption from any regulations ancillary to the foregoing that may be needed to facilitate the desired operations. () The extent of relief Walmart seeks, and the reason Walmart seeks the relief Walmart seeks an exemption from several interrelated provisions of 14 C.F.R. Parts 21, 45 and 91 to the extent necessary to engage in private, non-commercial R&D operations of UAS for the particular purposes described on Exhibit A. A significant set of safeguards is set forth within Exhibits A and C. as applicable. The Walmart operations will not “create a hazard to users of the national airspace system or the public or pose a threat to national security” and are thus consistent with the congressional mandate in Section 333 of the FAA Modemization and Reform Act of 2012, which gives FAA a mechanism to allow certain UAS to operate safely in the national airspace system. (@) The reasons why granting Walmart’s request would be in the public interest: Granting Walmart an exemption to allow R&D testing outdoors in the United States is in the public interest. Walmart’s distribution system could become more efficient and consumers could be better served, benefitting the public interest, while advancing goals of Congress under the FAA Modernization and Reform Act of 2012. In addition, the UAS flights will be conducted pursuant to all the safeguards discussed above. () The reasons why granting the exemption would not adversely affect safety, or how the exemption would provide a level of safety at least equal to that provided by the rule from which Walmart seeks the exemption ‘The Walmart UAS flight operations will provide for a level of safety that exceeds the level of safety required by FAA for hobbyists and manufacturers of model aircraft. The level of required safety detailed herein; further, Walmart submits that the requested exemption is proper because an equivalent level of safety will be ensured. For example, and without limiting the generality of the foregoing, all maintenance, alterations, or preventive maintenance of the DJI UAS performed by Walmart will be in accordance with the methods, techniques, and practices prescribed in the manufacturer’ operating documents (e.g. all applicable user manuals, checklists, battery safety guidelines, pilot training guides). Walmart will document and maintain all maintenance records for the DIT UAS. As such, Walmart submits that it will ensure that each 3Walmart >'< DJI_UAS operated by Walmart shall be in an airworthy condition, prior to every flight, by determining that the UAS is in compliance with all applicable manufacturer's operating documents, and that the aircraft is in ion for safe flight. (DA summary FAA can publish in the FEDERAL REGISTER, stating: (1) The rule from which you seek the exemption; and (2) A brief description of the nature of the exemption you seek Petitioner: Wal-Mart Stores, Ine. (1) Rule From Which Exemption Sought: The Sections, as defined herein (2) Description of Relief Sought: Petitioner seeks relief from the requirements of the Sections to conduct unmanned aircraft systems (UAS) operations for defined purposes, subject to operating procedures that meet or exceed those that FAA requires for similar operations. (g) Any additional information, views or arguments available to support your request Please see the introduction to this exemption request. (1) If you want 10 exercise the privileges of your exemption outside of the United States, the reason why you need t0 do so. If the Exemption is wholly granted, the research and development operations described in this exemption request will be conducted primarily within the United States.Walmart >!< Exhibit A Application Purposes Purpose and Location Scenario |—Data Acquisition These flights would explore the uses of UAS in aerial data acquisition! in support of business analytics, Walmart requests a blanket, nationwide Certificate of Waiver or Authorization for airspace use within Class G airspace, at or below 400 feet for these flights”. The flights would be further limited by the conditions and restrictions set forth in in Exhibit C Purpose and Location Scenario 2—Walmart Distribution Center The R&D test flights to be conducted at Scenario Two would take place outside at Walmart owned and operated ution Centers. The flights would take place within Walmart Distribution Center property located anywhere in the United States, as limited by the Blanket Certificate of Waiver or Authorization. ‘The fights would take place to test the ability of UAS vehicles to conduct exterior surveillance of the building and parking lot, as well as conducting inventories of trailers and other items in the parking lot through the use of electronic tagging and other methods. Precautions will be taken during each flight to clear the test flight path of employees or contractors who are not involved in the testing. These operations would be conducted subject to the restrictions set forth in Exhibit C "urpose and Location Scenario 3—Grocery Pickup Site ‘The R&D test flights to be conducted at Scenario Three would be in parking lots of Walmart retail facilities located anywhere in the United States, as limited by the Blanket Certificate of Waiver or Authorization. The flights would confirm the ability of a UAS vehicle to deliver merchandise packages from the retail facility out to a point in the parking lot where the packages could be accessed by a customer. Precautions will be taken during each flight to clear the test flight path of employees or contractors who are not involved in the testing, These operations would be conducted subject to the restrictions set forth in Exhibit C. Purpose and Location Scenario 4—Small Residential Neighborhood The R&D test flights to be conducted at Location Scenario Four would be at pre-selected, small residential neighborhoods located anywhere in the United States, as limited by the Blanket Certificate of Waiver or Authorization, These operations would take place with express written permission from the owners of the properties along the flight path and at the site of delivery, for the purpose of testing the ability of a UAS vehicle to become deployed from a platform on a delivery truck to safely deliver a package at a home and then return safely to the same. These operations would be conducted subject to the restrictions set forth in * Aerial data collection includes any remote sensing and measuring by an instrument(s) aboard the UAS. Examples include imagery of facilities and equipment (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 UAS, * In the event that the proposed flights under any of these listed scenarios would take place closer to an airport, heliport, fo seaport than otherwise allowed under the applicable Blanket COA, Walmart would obtain a Letter of Agreement with the management of the affected airport, heliport, or seaport prior to the proposed flights. The Letter of Agreement ‘ould be made available to the FAA and law enforcement officials upon request' ee Walmart >< Exhibit C. Purpose and Location Scenario 5—Acreage Tracts Other types of UAS R&D test flights would take place at large tracts or acreages located in rural areas ‘owned by Walmart, or with the express written consent of the landowner, located in a non-metropolitan area within the limitations of the Blanket Certificate of Waiver or Authorization. The flights would explore and demonstrate the ability of UAS vehicles to carry out aerial data acquisition and the types of missions described in the above scenarios. These operations would be conducted subject to the restrictions set forth in Exhibit CWalmart >!< UAS Descriptions During the test flights Walmart will use two different UAS vehicles, the DJI Phantom 3 Professional and the DIL $900: ‘A detailed description of the DI Phantom 3 Professional can be found in its manual as follows: ittp://download.dji- innovations.com/downloads/phantom_3/en/Phantom_3_Professional_User_ Manual_v1.2_en.pdf AA detailed description of the DJ1 $900 can be found in its manual as follows: http://download dji-innovations.com/downloads/s900/en/S900_User Manual_v1.2 en.pdfWalmart >!< Exhibit ns and Requirements Walmart will be bound by the following limitations and conditions when conducting commercial operations under an FAA issued exemption, Walmart shall be referred to “Operator” for purposes of this Exhibit C: 1. Authorized operations will be limited to the aircraft shown on the attached Exhibit B. 2. Operations for the purpose of closed-set motion picture and television filming are not contemplated. 3. The UA will not be operated at a speed exceeding 87 knots (100 miles per hour). Either ‘groundspeed or calibrated airspeed will be used 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. 4. The UA will be operated at an altitude of no more than 400 feet above ground level (AGL), Altitude must be reported in feet AGL. 5. The UA will be operated within visual line of sight (VLOS) of the PIC at all times. This will require 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. 6. All operations will utilize a visual observer (VO). The UA will be operated within the visual line of sight (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 will be able to communicate verbally at all times; electronic messaging or texting is not permitted during flight operations, The PIC will be designated before the flight and cannot transfer his or her designation for the duration of the flight. The PIC will ensure that the VO can perform the duties required of the VO. 7. All documents needed to operate the UAS and conduct its operations in accordance with the conditions and limitations stated in any granted exemption, are hereinafter referred to as the operating documents. The operating documents will be accessible during UAS operations and made available to the Administrator upon request. If a discrepancy exists between the conditions and limitations in any granted exemption and the procedures outlined in the operating documents. the conditions and limitations in any granted exemption take precedence and must be followed. Otherwise, the Operator will 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 will also present updated and revised documents if petitions for extension or amendment to any grant of exemption. If the Operator determines that any update or revision would affect the basis upon which the FAA would grant exemption, then the Operator will petition for an amendment to its grant of exemption 8. Any UAS that has undergone maintenance or alterations that affect the UAS operation or flight characteristics, e.g., replacement of a flight critical component, will undergo a functional test flight 8Walmart >;< prior to conducting further operations under any granting of exemption. Functional test flights may only be conducted by a PIC with a VO and shall 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. 9. The Operator will be responsible for maintaining and inspecting the UAS to ensure that it is ina condition for safe operation. 10. Prior to each flight, the PIC will conduct a pre-flight inspection and determine the UAS is in a condition for safe flight. The pre-flight inspection will 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 will not be operated until the necessary maintenance has been performed and the UAS is found to be in a condition for safe flight. 11, The Operator will follow the UAS. manufacturer’ inspection, and life limit requirements for the aircraft and maintenance, overhaul, replacement, reraft components. 12. Each UAS operated under any grant of exemption will comply with all manufacturer safety bulletins, 13. Under any grant of exemption, a PIC will hold either an airline transport, commercial, private. recreational, ot sport pilot certificate. The PIC will 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 will 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. 14, The Operator will not permit any PIC to operate unless the PIC demonstrates the ability to safely operate the UAS in a manner consistent with how the UAS will be operated under any grant of exemption, including evasive and emergency maneuvers and maintaining appropriate distances from persons, vessels, vehicles and structures. PIC qualification flight hours and currency will be logged in a manner consistent with 14 CFR § 61.51(b). Flights for the purposes of training the Operator's PICs and VOs (training, proficiency, and experience-building) and determining the PIC’s ability to safely operate the UAS in a manner consistent with how the UAS will be operated under this exemption are permitted under the terms of this exemption. However, training operations will only be conducted during dedicated training sessions. During training, proficiency. and experience-building flights, all persons not essential for flight operations are considered nonparticipants, and the PIC will operate the UA with appropriate distance from nonparticipants in accordance with 14 CFR § 91.119. 15. UAS operations will not be conducted during night, as defined in 14 CFR § 1.1. All operations will be conducted under visual meteorological conditions (VMC). Flights under special visual flight rules (SVFR) will not be made.Walmart >'< 16. To the extent a UA flight is anticipated to exceed any of the limitations set forth in the FAA’s ‘blanket 200 foot COA,” then such UA flight shall not be operated within 5 nautical miles of an airport reference point (ARP) as denoted in the current FAA Airport/Facility Directory (AFD) or for airports not denoted with an ARP, the center of the airport symbol as denoted on the current FAA-published aeronautical chart, unless a letter of agreement with that airport’s management is obtained or otherwise permitted by a COA issued to the exemption holder. The letter of agreement with the airport management will be made available to the Administrator or any law enforcement official upon request. 17. The UA wil cloud or when not be operated less than 500 feet below or less than 2,000 feet horizontally from a sibility is less than 3 statute miles from the PIC. 18. If the UAS loses communie: determined location wit ms or loses its GPS signal, the UA will retum to a pre- in the private or controlled-aecess property. 19. The PIC will abort the flight in the event of unpredicted obstacles or emergencies. 20. The PIC will not begin 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 five minutes or with the reserve power recommended by the manufacturer if greater. 21. All operations will be conducted in accordance the granting of any exemption and any COA that is granted with the exemption. The exemption holder will apply for a new or amended COA if it intends to conduct operations that cannot be conducted under the terms of the granting of the exemption. 22. 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 will be available to the PIC at the Ground Control Station of the UAS any time the aircraft is operating. ‘These documents will be made available to the Administrator or any law enforcement official upon request. jes at all 23. The UA will remain clear and give way to all manned aviation operations and acti times, 24, The UAS will not be operated by the PIC from any moving device or vehicle, unless the application and any granted exemption are amended. 25. All Flight operations will be conducted at least 500 feet from all nonparticipating persons, vessels, vehicles, and structures unless: a. Barriers or structures are present that sufficiently protect nonparticipating persons from the UA and/or debris in the event of an accident. The Operator will ensure that nonparticipating persons remain under such protection. If a situation arises where nonparticipating persons leave such protection and are within 500 feet of the UA, flight * FAA Streamlines UAS COAS for Section 333”: htps:/vww faa gov/newslupdates’newsld-R2245 10Walmart >!< operations will cease immediately in a manner ensuring the safety of nonparticipating persons; and b. The owner/controller of any vessels, vehicles or structures has granted permission for operating closer to those objects and the PIC has made a safety assessment of the risk of operating closer to those objects and determined that it does not present an undue hazard. The PIC, VO, Operator trainees or essential persons will not considered nonparticipating persons under any granting of the exemption, 26. All operations will be conducted over private or controlled-access property with permission from the property owner/controller or authorized representative. Permission from property owner/controller or authorized representative will be obtained for each flight to be conducted. 27. Any incident, accident, or flight operation that transgresses the lateral or vertical boundaries of the operational area as defined by the applicable COA will be reported to the FAA's UAS Integration Office (AFS-80) within 24 hours. Accidents must be reported to the National ‘Transportation Safety Board (NTSB) per instructions contained on the NTSB Web site: wwwantsb.gov uu