Oil Industries Limitation Endorsement

OIL INDUSTRIES LIMITATION ENDORSEMENT #

It is understood and agreed that this Insurance shall not apply to :-

1. Injury to or destruction of property located on or above the surface of the earth or ocean floor arising out of the blowout or cratering of any well
2. Any cost or expense incurred by or at the request of the Insured or any co-owner of the working interest in bringing under control any oil, gas or water well which becomes out of control. A well shall be deemed “out of control” only so long as there is a continuous flow of drilling fluid, oil, gas or water above the surface of the ground or ocean floor which is uncontrollable
3. Loss of or damage to any property directly or indirectly resulting from subsidence caused by subsurface operations of the Insured, including any consequential loss or loss of use arising therefrom;
4. Loss of hole or loss of in-hole equipment, including fishing costs or other costs of recovery, or to any consequential loss or loss of use arising therefrom;
5. Removal of debris or wreck;
6. Injury to or destruction of property arising out of the “Underground Resources and Equipment Hazard” as defined below, or any consequential loss or loss of use arising therefrom;
7. The cost of reducing any property included within the “Underground Resources and  Equipment Hazard” to physical possession above the surface of the earth or above the surface of any body of the water, or to expense incurred or rendered necessary to prevent or minimize property damage to other property resulting from acts or omission causing property damage included within the “Underground Resources and Equipment Hazard”
8. Injury to or destruction of property arising out of the “Saline Substance Contamination Hazard” as define below;
9. Injury to or destruction of marine life, material, resources or vegetation
   “Underground Resources and Equipment Hazard” includes property damage to any of the following:

1. Oil, Gas water or other mineral substances which have not been reduced to physical possession above the surface of the earth or above the surface of any body of water;
2. Any well, hole, formation, strata or area in or trough which exploration for or production of any substance is carried on;
3. Any casing, pipe, bit, tool, pump or other drilling or well servicing machinery or equipment located beneath the surface of the earth in any such well or hole or beneath the surface of any body of water

“Saline Substances Contamination Hazard” includes property damage to any of the following:

1. Oil, Gas water or other mineral substances, if the property damage is caused directly or indirectly by a saline substance;
2.  Any other property, if the property damage arises out of the property damage described in subvision (A) of this hazard.