§ 62-64. Insurance required.

(a)

General requirements applicable to all policies.

(1)

General liability and automobile liability insurance shall be written by a carrier with an A:VIII or better rating in accordance with the current Best Key Rating Guide.

(2)

Only insurance carriers licensed and admitted to do business in the State of Texas will be accepted.

(3)

Deductibles shall be listed on the certificate of insurance and are acceptable only on a per occurrence basis.

(4)

Claims made policies will not be accepted, except for the environmental pollution liability and excess or umbrella liability, which may be on a claims-made basis.

(5)

The City of Baytown, its officials, employees and volunteers, are to be added as "additional insured" to the general liability policy. The coverage shall contain no special limitations on the scope of protection afforded to the owner, its officials, employees or volunteers.

(6)

A waiver of subrogation in favor of the owner with respect to workers' compensation insurance must be included.

(7)

If the operator receives notice that any insurance policy required herein is suspended, voided, cancelled, reduced in coverage or in limits, the permittee shall provide the city prompt written notice by certified mail, return receipt requested.

(8)

Upon request, certified copies of all insurance policies shall be furnished to the City of Baytown.

(9)

Certificates of insurance must be delivered to the director, evidencing all the required coverages, including endorsements, prior to the issuance of an oil and gas well permit, and thereafter annually, prior to the policy termination or cancellation date.

(10)

Any failure on part of the city to request required insurance documentation will not constitute a waiver of the insurance requirement specified herein.

(11)

During the term of the oil or gas well permit, the operator will report, in a timely manner, to the fire chief any known loss occurrence which could give rise to a liability claim or lawsuit or which could result in a property loss.

(b)

No permit required under this division shall be issued until the applicant shall also file with the director a certificate of insurance evidencing the following:

Commercial general liability insurance with an aggregate of $2,000,000.00 and a per occurrence limit of $1,000,000.00. There shall be no modification limiting the scope of coverage for liability arising from drilling, oil or gas operations. No coverage shall be deleted from the standard policy without notification of individual exclusions being attached for review and acceptance by the city.

Excess or umbrella liability with minimum limits of $10,000,000.00. Coverage must include an endorsement for, sudden or accidental pollution. If seepage and pollution coverage is written on a "claims made" basis, permittee must maintain continuous coverage and purchase. Extended coverage period insurance when necessary.

Environmental pollution liability coverage with minimum limits of $5,000,000.00 per loss with an annual aggregate of at least $10,000,000.00. Insurance for environmental pollution liability applicable to bodily injury, property damage, including loss of use of damaged property or of property that has not been physically injured or destroyed; clean-up costs; and defense, including costs and expenses incurred in the investigation, defense or settlement of claims; all in connection with any loss arising from the insured site. Coverage shall apply to sudden and accidental pollution conditions resulting from the escape or release of smoke, vapors, fumes, acids, alkalis, toxic chemicals, liquids or gases, waste material or other irritants, contaminants or pollutants, or other causes as applicable. Permittee shall maintain continuous coverage and shall purchase extended coverage period insurance when necessary. The ECP insurance must provide that any retroactive date applicable to coverage under the policy precedes the date of the permit.

Control of well coverage with minimum limits of $3,000,000.00 per occurrence/no aggregate, if available, otherwise an aggregate of $10,000,000.00. Five-hundred-thousand-dollar sublimit endorsement may be added for damage to property for which permittee has care, custody and control. This is a policy that covers the cost of controlling a well that is out of control, re-drilling or restoration expenses, seepage and pollution damage as first party recovered for permittee and related expenses, including, but not limited to, loss of equipment, experts and evacuation of residents.

Workers' compensation liability limits of $500,000.00 for each accident/disease is required by the employer. Texas Waiver of Our Right to Recover From Others Endorsement, WC 42 03 04 shall be included in this policy. Texas must appear in Item 3A of the Workers' Compensation coverage or Item 3C must contain the following: All States except those listed in Item 3A and the States of NV, ND, OH, WA, WV, and WY.

Automobile liability minimum combined single limit of $500,000.00 per occurrence for bodily injury and property damage. The business auto policy must show Symbol 1 in the covered autos portion of the liability section in Item 2 of the declarations page. Coverage must include all owned, hired and not-owned automobiles.

(c)

The applicant shall, upon request of the city clerk, submit the original or a certified copy of any policy for inspection at any time.

(d)

Irrespective of the requirements as to insurance to be carried, the insolvency, bankruptcy or failure of any insurance company carrying insurance for any applicant or permittee under this division or the failure of any such company to pay claims accruing shall not be held to waive any of the sections of this article. The applicant shall pay promptly all premiums for such insurance in strict accordance with its obligations to its carrier and shall maintain the described coverage in full effect so long as the permit shall be valid and alive.

(e)

Failure to keep the policy in full force and effect, in accordance with the terms of this section, shall be unlawful and shall be punishable in accordance with section 1-14.

(f)

Any bond, insurance or other financial security requirement as stated in the Unified Land Development Code or other article herein shall not apply to the aggregate for the purposes of this section.

(Ord. No. 671, § 10, 2-14-63; Code 1967, § 20-45; Ord. No. 12,474, §§ 11, 12, 2-13-14)