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'
- 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