Code of Colorado Regulations
400 - Department of Natural Resources
404 - Oil and Gas Conservation Commission
2 CCR 404-1 - PRACTICE AND PROCEDURE
Section 705 - GENERAL LIABILITY INSURANCE
Current through Register Vol. 47, No. 17, September 10, 2024
a. Consolidation of Related Operators. Where a registered Operator owns, holds, or controls 50% or more of one or more other registered Operators, that parent company Operator may fulfill the obligations of this Rule 705 for itself and its subsidiary Operator companies, provided that the policy or policies name both the parent and subsidiary Operator companies and provide coverage in the required amounts for each entity the parent Operator company seeks to cover. Consolidation under this Rule will include all of a parent Operator's subsidiary Operators.
b. All Operators will maintain general liability insurance coverage for property damage, bodily injury to third parties, and sudden or accidental pollution that requires Remediation, with no exclusion for claims arising from operator-caused seismicity from oil or gas Wells, in the minimum amount of $5,000,000 per occurrence. The coverage required by this Rule may be secured alone or in combination with an umbrella or excess policy.
c. All such general liability insurance policies will include the Commission as a "certificate holder" and "scheduled person or organization" so that the Commission may receive advance notice of cancellation.
d. Operators will demonstrate their compliance with Rule 705.a by providing information about their insurance coverage on their Form 1.
e. Operators will provide notice of any renewals or changes to their general liability insurance during the previous 12 months on their Form 1B, Annual Registration.
f. Operators will provide information about their general liability insurance coverage and whether that coverage is sufficient to cover Remediation costs on the Form 19 - Supplemental or Form 27 the Operator files pursuant to Rule 912.b.(6).
