CHAPTER 8 INSURANCE: EXHIBIT "D"

• Jurisdiction: United States

Oil and Gas Joint Operating Agreement
(May 1990)
CHAPTER 8
INSURANCE: EXHIBIT "D"
Edward A. Herhold
Van Gilder Insurance Corporation
Denver, Colorado

TABLE OF CONTENTS

SYNOPSIS

Page

I. INTRODUCTION

II. BASIC INSURANCE PROVISIONS

A. Worker's Compensation

B. Employer's Liability

C. Commercial General Liability

D. Automobile Liability

E. Umbrella Liability

III. ADDITIONAL INSURANCE PROVISIONS

A. Excess Liability

B. Operator's Extra Expense

C. Energy Exploration and Development Insurance

D. Oil Lease Property Insurance

IV. EXHIBIT "D" EXAMPLE

V. INSURANCE FOR NON-OPERATOR

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I. INTRODUCTION

The operator is required by Article V, Item D, 9 of Form 610-1989 Model Form Operating Agreement to carry certain types of insurance. The requirement reads as follows:

"9. Insurance: At all times while operations are conducted hereunder, operator shall comply with the worker's compensation law of the state where the operations are being conducted; provided, however, that operator may be a self-insured for liability under said compensation laws in which event the only charge that shall be made to the joint account shall be as provided in Exhibit "C". Operator shall also carry or provide insurance for the benefit of the joint account of the parties as outlined in Exhibit "D" attached hereto and made a part hereof. Operator shall require all contractors engaged in work on or for the contract area to comply with the worker's compensation law of the state where the operations are being conducted and to maintain such other insurance as operator may require.

"In the event automobile liability insurance is specified in said Exhibit "D" or subsequently receives the approval of the parties, no direct charge shall be made by operator for premiums paid for such insurance for operator's automotive equipment."

The contract only addresses worker's compensation and auto liability and other insurance outlined in Exhibit "D". The Exhibit "D" only requires worker's compensation insurance or self-insurance. The reference to auto liability is only to state that if auto liability is specified in Exhibit "D", no charge will be made by the operator.

This paper is not going to tell you how to prepare Exhibit "D", nor is it going to give you a total analysis of insurance policies. What we will do is give you types of coverage to consider, general things you should look for, wording you might use in Exhibit "D", and insurance the non-operator...