Hawaii Administrative Rules › Title 13 - DEPARTMENT OF LAND AND NATURAL RESOURCES › Subtitle 7 - WATER RESOURCES › Chapter 183 - RULES ON LEASING AND DRILLING OF GEOTHERMAL RESOURCES › Subchapter 3 - LEASES GENERALLY › Section 13-183-35 - Liability insurance

Current through June, 2024
(a) Prior to entry
				  upon the leased lands, lessee or lessee's assignee, sublessee, or transferee
				  shall cause to be secured and to be thereafter maintained in force during the
				  term of the lease, public liability and property damage insurance from an
				  insurance company licensed to do business in the State in amounts to be
				  determined by the board and stated in the geothermal lease for injuries to
				  persons, wrongful death, and damages to property caused by any occupancy, use,
				  operations, or any other activity on leased lands carried on by lessee, or
				  lessee's assignee, sublessee, or transferee, and its agents or contractors in
				  connection therewith. Liability coverage for explosion, collapse, and
				  underground hazards are to be included prior to any drilling of a well for
				  geothermal discovery, evaluation, or production. Lessee shall evidence the
				  additional coverage to the chairperson prior to initiation of drilling
				  operations. If the land surface and improvements thereon covered by the lease
				  have been sold or leased by the State to a person other than the lessee, the
				  owner or lessee of surface rights and improvements shall be a named insured.
				  The State, any owner, and any lessee of surface rights and improvements shall
				  be a named insured in all instances. These policy or policies of liability
				  insurance shall contain the following special endorsement:
"The State of Hawaii, the Hawaii State Board of Land and
					 Natural Resources, the Chairperson of the Board of Land and Natural Resources,
					 the Department of Land and Natural Resources, and (herein insert name of owner
					 or lessee of surface rights, if applicable) and the officers, employees and
					 agents of each and every of the foregoing (hereinafter referred to as "named
					 insureds") are insureds under the terms of this policy; provided, however, said
					 insureds shall not be insured hereunder for any primary negligence or
					 misconduct on their part, but shall be insured hereunder for secondary
					 negligence or misconduct, which shall include the failure to discover and cause
					 to be corrected the negligence or misconduct of lessee, its agents or
					 contractors. This insurance policy shall not be canceled without thirty days
					 prior written notice to the Board and all named insured. None of the foregoing
					 additional insureds are liable for the payment of premiums or assessments on
					 this policy."
(b) No
				  cancellation provision in any insurance policy shall release the lessee of duty
				  to furnish insurance during the term of this contract. The policy or policies
				  shall be underwritten to the satisfaction of the chairperson. A signed and
				  complete certificate of insurance, with the endorsement required by this
				  subsection, shall be submitted to the chairperson prior to entry upon the
				  leased land. At least thirty days prior to the expiration of any policy, a
				  signed and complete certificate of insurance, with the endorsement required by
				  this paragraph showing that the insurance coverage has been renewed or
				  extended, shall be filed with the chairperson.