I'm looking at my year 2000 Operating Limitations, and one line item in the General Limitations states;
"Except for takeoff and landings, this aircraft shall not be operated over densely populated areas or in congested airways."
Let's not even debate this one...since I fly into the Los Angeles basin most every weekend
A Phase I limitations states where I can fly (25 mile radius of Mojave airport)
excluding densely populated areas, congested airways or restricted areas.
I would think the DAR is trying to say, "Depart the Class C airspace, don't hang around..." I would consider Class C airspace most likely near densely populated areas. Be sure you get this spelled out (to your advantage). Good luck

Rosie
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Paul A. "Rosie" Rosales
Rosamond Skypark (L00), CA
RV-6A, 4200+ hours since 7/4/2000