Clovis: 575-769-2855
   Lubbock: 806-855-2538

Control Of Well

Control Of Well

Control of Well (blowout coverage) insurance can prove crucial if a well control event occurs.  It is an essential tool to any operator's overall risk management program.


Control of Well Insurance Typically Covers

  • Cost of regaining a well out of control and oilfield fire fighting
  • Restoration and re-drilling expense following a well out of control event
  • Seepage and pollution clean up and containment expense and legal and contractual liability (including defense costs) following an above ground blowout.
  • Cost to control wells of others, resulting from a well control event
  • Care, Custody and Control covers damage to leased property of others
  • Certain policies will cover casing failure during multi-stage frac completions, resulting in a well control event
  • Certain policies offer 'Pay On Behalf of Wording'
Potential Benefits of Coverage (depending on policy)

  • Care, Custody and Control for surface equipment of others can be triggered by several perils (i.e. tornado, lightning, etc.) and does not require a well control event
  • Coverage for a lost or damaged drilling or workover rig, due to an unsound location may be provided
  • Possible credits if wells drilled are under a true, IADC   Turnkey contract
  • Coverage for failed casing resulting in a blowout, during multi-stage frac operations may be provided
  • Pay On Behalf of provided - allowing relief of cash flow
  • Address financial risks associated with horizontal drilling and completion - from both a legal and contractual standpoint   

  

Who is Covered Under Policy?

  • The Named Insured on the declarations page
  • The Co-Venturers having a financial interest in the well insured, provided the agreement to include them is executed in writing prior to the loss
  • With respects to pollution liability, the Named Insured and any principals, officers, directors or employees