What does Blowout and Cratering mean? Read on to discover the definition & meaning of the term Blowout and Cratering - to help you better understand the language used in insurance policies.
Blowout and Cratering
In the oil and gas production industry, refers to uncontrolled eruption of oil, gas, water, or drilling fluid from a well that is in the process of being drilled (blowout) or to the caving in of a well that has already been drilled. Blowouts are generally caused by the penetration of a reservoir that contains gas or oil that is under higher pressure than has been allowed for; often the oil or gas catches fire. When a well craters, often the drilling rig itself goes under with the well. Coverage for the insured's liability for damage to property of others caused by blowout or cratering is optional in the commercial general liability (CGL) policy. A specialty coverage control-of-well insurance provides coverage for the expenses of bringing a blowout under control, cleaning up any resulting pollution, and damage to the property of the operator.
We hope the you have a better understanding of the meaning of Blowout and Cratering.