The operator shall provide or cause to be provided the insurance described below for each well for which a well permit is issued, and shall maintain such insurance until the well is abandoned and the site restored. The operator must provide the county sufficient documentation that the operator's insurance complies with the minimum requirements and coverage amounts of this section and the policy must clearly and specifically name Washington County as the beneficiary.
A. Indemnification And Express Negligence Provisions: Each well permit application issued by the county shall include the following language and regardless of whether such language is actually included in the well permit application, it shall be deemed to be included therein:
Each Administrative Gas and Oil Well Development Permit issued by the County shall include the following: "Operator does hereby expressly release and discharge all claims, demands, actions, judgments, and executions which it ever had, now has or may have, or claim to have, against the County and/or its departments, its agents, officers, servants, successors, assigns, sponsors, volunteers, or employees, created by, or arising out of personal injuries, known or unknown, and injuries to property, real or personal, or in any way incidental to or in connection with the actions or inaction of the Operator or its agents, or caused by or arising out of, that sequence of events which occur from the Operator's or its agents actions or inactions. The Operator shall fully defend, protect, indemnify, and hold harmless the County and/or its departments, agents, officers, servants, successors, assigns, sponsors, or volunteers, or employees from and against each and every claim, demand, or cause of action and any and all liability, damages, obligations, judgments, losses, fines, penalties, costs, fees and expenses incurred in the defense of the County and or its servants, successors, assigns, sponsors, volunteers, or employees, including, without limitations, personal injuries and death in connection therewith which may be made or asserted by Operator, its agents, assigns, or any third parties on account of, arising out of, or in any way incidental to or in connection with the performance of the work performed by the Operator under any permit, and the Operator agrees to indemnify and hold harmless the County and/or its departments, its agents, officers, servants, successors, assigns, sponsors, volunteers, or employees from any liabilities or damages suffered as a result of claims, demands, costs, or judgments against the County and/or its departments, its agents, officers, servants, successors, assigns, sponsors, volunteers, or employees, created by, or arising out of their acts or omissions occurring on the oil or gas well site or in the course and scope of inspecting, permitting, or monitoring the oil and gas well site."
B. General Provisions Regarding Insurance:
1. All policies shall be endorsed to read substantially as follows:
This policy will not be cancelled or non-renewed without 30 days advanced notice to the owner and Washington County, Idaho except when this policy is being cancelled for nonpayment of premium, in which case ten days advance written notice to both such parties is required.
2. Liability policies shall be written by carriers licensed to do business in Idaho and with companies with at least an "A" rating issued by A.M. Best Company.
3. Liability policies shall name as "additional insured" the county and the other indemnified parties as defined in this chapter. Waivers of subrogation shall be provided in favor of all indemnified parties.
4. All subcontractors must be named by the operator and indemnified as covered under the operator's insurance policies, unless the subcontractor can provide proof of insurance at the same required levels and limits.
5. The operator shall present the county with copies of the pertinent portion of the insurance policies evidencing all coverage and endorsements required by this section before the issuance of the administrative gas and oil well development permit, and the acceptance by the county of a policy without the required limits and/or coverage shall not be deemed a waiver of these requirements. The county may, in its sole discretion, accept a certificate of insurance in lieu of a copy of the pertinent portion of the policy pending receipt of such document by the county. After the issuance of the well permit, the county may require the operator to provide a copy of the most current insurance coverage and endorsements for review at any time. An administrative fee in the amount set in the county's fee schedule will be charged to cover the cost of such review.
6. Claims-made policies shall not be accepted except for excess policies and environmental impairment (or seepage and pollution) policies.
7. Nothing in this chapter prohibits or preempts a private party from the right to bring a damage action against the gas and oil well developer, its operator, its employees, etc.
C. Required Insurance Coverage:
1. The applicant shall submit with the application a certificate of comprehensive general liability insurance in the amount of no less than three million dollars ($3,000,000.00) per occurrence with an annual general aggregate coverage of five million dollars ($5,000,000.00). The policy shall be written by a company authorized to do business in the state of Idaho. The certificate shall require at least thirty (30) days' notice to the county prior to termination of coverage for any reason.
2. Excess (or umbrella) liability insurance: Minimum limit of fifteen million dollars ($15,000,000.00) providing excess coverage for each of the perils insured by the preceding liability policies.
3. Control of well insurance:
a. Minimum limit of ten million dollars ($10,000,000.00) per occurrence, with a maximum deductible of two hundred fifty thousand dollars ($250,000.00) per occurrence.
b. Policy shall cover the controlling of a well that is out of control, redrilling or restoration expenses, and seepage and pollution damage.
4. Underground reservoir (or resources) damage coverage shall be on an occurrence basis, shall not be limited to sudden and accidental occurrences, shall not have a discovery or reporting limitation and shall not exclude damage to water tables, formation or strata.
5. Environmental impairment (or seepage and pollution) coverage shall be either included in the comprehensive general liability coverage or as a separate coverage. Such coverage shall not exclude damage to the lease site. If environmental impairment (or seepage and pollution) coverage is written on a "claims-made" basis, the policy must provide that any retroactive date applicable precedes the effective date of the issuance of the permit. Coverage shall apply to sudden and accidental pollution conditions resulting from the escape or release of smoke, vapors, fumes, acids, alkalis, toxic chemicals, liquids, oil and gas, waste material, or other irritants, contaminants or pollutants. Such policy shall provide for a minimum combined single limit coverage of ten million dollars ($10,000,000.00) per occurrence. A discovery period for such peril shall be for the life of the well. (Ord. 76, 9-22-2014)