Drilling Contract Provisions Allocating Liability for Rig Damage Held Ambiguous

摘要

In Zurich American Insurance Co. v. Hunt Petroleum (AEC), Inc., 157 S.W.Sd 462 (Tex. App.--Houston [14th Dist.] 2004, no pet.), the court reversed a summary judgment in favor of Hunt, an operator that had contracted with Nabors Drilling U.S.A., Inc. for the drilling of a well in coastal Louisiana, against Zurich, Nabors's insurer. Nabors's drilling rig was submerged in at least four feet of salt water during a tropical storm, and Zurich paid Nabors 955,120.26 dollars to repair the resulting damage. Zurich sued Hunt as subrogee of Nabors's rights, asserting that Hunt was responsible for the damage under its drilling contract with Nabors, a printed International Association of Drilling Contractors (IADC) daywork contract. Both parties moved for summary judgment on the basis that the drilling contract was unambiguous and allocated the loss to the other. The trial court granted Hunt's motion, and Zurich appealed. Three provisions of the drilling contract were germane to the dispute and quoted in the court'-s opinion: 14.1 Contractor's Surface Equipment: Contractor shall assume liability-at all-times for damage to or destruction of Contractor's surface equipment, regardless of when or how sloth destruction occurs, and Contractor shall release Operator of any liability for any such loss, except loss or damage under the provisions of Paragraphs 10 or 14-. 3.