Who has to pay????????
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Posted by
Luke in
Insurance on Jul 31, 2010
Ok here's the scenario (hypothetical):
If a landowner leased their land to a gas company so they could perform hydraulic fracturing to extract natural gas from marcellus shale and pollution occurs. Lets say, so natural gas polluted a local aquifer.
Who's insurance company has to pay for that: the gas company or the person who leased the land?
OR is the gas company automatically on the leaser's insurance policy??
- Caveat Emptor says
- If the landowner has any brains, he/she will insist that any lease contract makes the gas company solely liable and that he/she is added as an "additional insured" party of the gas company's insurance. I guarantee you that a standard homeowner's policy will not cover damages from commercial drilling and extraction operations. Not something to be done without legal advice.
- Mbrcatz says
- There's no "automatic" liability here. And generally, pollution like that isn't covered, under ANY policy. The gas company is NOT "automatically" on the lessor's policy, and in a normal situation, it would be the reverse - the property owner gets added as additional insured to the lessee's policy.
So, who will get sued? Everyone. Who makes out? The lawyers.