|
|
Enron Mail |
Gentlemen,
Attached for your review and comment is the Cavern Monitoring Services Agreement for your review and comment. Thanks, Eric Gillaspie 713-345-7667 Enron Building 3886 ----- Forwarded by Eric Gillaspie/HOU/ECT on 08/08/2000 09:21 AM ----- Eric Gillaspie 07/27/2000 05:16 PM To: Gerald Nemec/HOU/ECT@ECT cc: Gerald Lofton/HOU/ECT@ECT Subject: Re: Cavern Monitoring Services Agreement I will make the necessary changes to the agreement. Eric Gillaspie 713-345-7667 Enron Building 3886 ----- Forwarded by Eric Gillaspie/HOU/ECT on 07/27/2000 05:15 PM ----- David Marshall 07/27/2000 04:55 PM To: Eric Gillaspie/HOU/ECT@ECT cc: Subject: Re: Cavern Monitoring Services Agreement Eric, Our usual position is the Operator takes his own employee injury risk and the third party injury risk arising out of his scope of work, and he provides us with proof of insurance for these risks prior to commencing services under the agreement. We would typically agree to limit his liability to us to a specified amount (value of the contract), but not agree that this limitation applies to his indemnity obligations due to employees or third parties making claims due to events arising out of his scope of work (I didn't catch any limitation of liability language as repects the parties). These risks are the subject of his insurance coverage, which we'd expect to apply for the defense of both parties to the agreement. From a cost standpoint, an operator will have these coverages already and would not be buying additional insurance for our job. To the minimum coverages descirbed in 6.1, I suggest adding (d) Umbrella Liability Insurance to apply in excess of the limits shown in a, b (employers liability) and c above, with limits of liability not less than $10,000,000 per occurrence/aggregate, and providing coverage subject to terms and conditions at least as broad as those of the underlying policies. Texaco may resist or argue for some cost pass through for any additional limits, but certifying to only $1MM in GL limits seems a bit light given the exposure. 6.2 Policy Requirements (iii) 'enforced' should be changed to 'endorsed' Suggest adding: (iv) be endorsed to apply as primary insurance and without right of contribution from any similar policies which may be maintained by LCRI. All applicable deductibles or self insured amounts shall be the sole responsiblity of Texaco.
|