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FAA regulations—like the rule restricting drones and pay-          DO THE FAA REGULATIONS
 loads to under 55 pounds, or using drones to carry hazard-
 ous materials, to name a few—are not eligible for waivers         QADDRESS PRIVACY CONCERNS?
 from the FAA at this time.                                        ASimply put, they don’t. The FAA stated in its rules that the

      And given our remote, rural locations—far from                agency does not regulate privacy safeguards, and issues of
 manned aircraft flight paths, airports, dense population cen-      privacy are not within the agency’s jurisdiction. Instead, the
 ters—ski areas are likely good candidates for such waiv-           FAA noted that local and state trespass laws will likely gov-
 ers. The FAA specifically noted that the waiver process was        ern issues of privacy and the use of drones, and with the
 designed to “accommodate new technologies and unique               advent of drone technology, there will likely be efforts by
 operational circumstances.”                                        states and municipalities to address privacy concerns, partic-
                                                                    ularly as camera-enabled drones grow in popularity.
      There are a number of considerations for ski areas to
 keep in mind for purposes of a waiver: embracing techno-                This is an important reminder that each area should
 logical safety requirements for your drone fleet (including        post on its website—or with signage in the base area—the
 geo-fencing, loss-of-control link functionality, anti-collision    ski area’s rules about restrictions on drone use by guests and
 lighting, collision avoidance technology); proximity parame-       the outside public. NSAA has a proposed drone policy (ski
 ters for drone operations over people (laterally or vertically);   areas can download the draft policy at www.nsaa.org under
 signage and guest education releases or waivers of consent;        the Government Affairs tab), and you can customize the
 designated drone routes; use of lighter drones (to minimize        policy to fit your resort’s needs. For example, there may be
 injury concerns); and other performance-based standards.           limited situations where a ski area would allow a guest to use
                                                                    a drone (weddings, race events, special “drone zones,” etc).
QDOES THE FAA REQUIRE DRONE
                                                                         NSAA has repeatedly emphasized with the FAA and
 INSURANCE?                                                         with the USFS that ski areas would be restricting, if not pro-
                                                                    hibiting, drone use by their guests and the public for very
ANo. There are no insurance requirements in the FAA’s new           legitimate safety and privacy concerns. Both federal agencies
 commercial drone regulations. The FAA specifically declined        have conceded the right of ski areas to restrict or prohibit
 to impose insurance coverage requirements for commercial           drones, even on public land, and the new FAA regulations
 operators, stating that the agency does not have jurisdiction      reinforce our ability to restrict drone use.
 to impose insurance mandates. However, simply because the
 FAA declined to mandate insurance coverage for commercial               Having a clearly posted policy restricting drones is crit-
 drone operators, this does not mean a ski area cannot indi-        ical for other reasons as well, including plaintiffs’ attor-
 vidually require drone contractors (wedding videographers,         neys trying to obtain video evidence or surveillance, or news
 for example) from having separate insurance requirements.          media organizations chasing celebrities or during crisis situ-
      Furthermore, it is important to understand that your          ations, such as a catastrophic chairlift malfunction, an ava-
 resort’s general liability policy likely does not provide insur-   lanche incident, or mass shootings. (Don’t let the local news
 ance coverage for claims related to the resort’s use of drones     station fool you: The First Amendment’s right to freedom of
 as part of its business operations. Most insurance policies        the press only restricts the government, not private businesses
 (including your own home owner’s policy) contain aviation          like ski areas.) Hundreds of news media organizations sub-
 exclusions, and these typically extend to the use of drones.       mitted comments to the FAA, so the media believes drones
 With these new FAA rules, and as insurance companies               will dramatically expand their capacity for news coverage—
 develop claims and risk data involving drones, the insurance       all the more reason ski areas need to develop a clear policy
 industry is likely to respond quickly with separate riders to      and communicate it directly with the media.
 provide coverage for the commercial use of drones.
      One important wrinkle: While your existing insur-            QHOW WILL THE FAA ENFORCE
 ance policy may not provide coverage for your resort’s use
 of drones absent a specific rider, your insurance may pro-         THESE NEW RULES?
 vide coverage if an outside operator of a drone (e.g., a guest),
 causes damage or injury at a ski area using their own drone.      APerhaps one of the biggest criticisms against the FAA about
 Consult with your insurer to understand these limitations.         commercial drone operations is the agency’s seemingly lax
                                                                    enforcement efforts. The FAA has legal authority to enforce
                                                                    its rules through a regulatory compliance and fine process;

24  |  NSAA JOURNAL  |  SUMMER 2016
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