On October 20, 2015, the Oklahoma Department of Insurance issued Bulletin No. PC 2015-04. The Department asked that all companies providing insurance coverage for earthquakes issue a clarifying notice concerning the coverage of earthquakes resulting from, or arguably resulting from, oil and gas exploration and production activities, generically known as “Fracking”. Below is a copy of Palomar Specialty Insurance Company’s notice provided in compliance with Bulletin PC 2015-04:
EARTHQUAKES RESULTING FROM OIL AND GAS ACTIVITIES
Subject to all policy provisions, the coverage provided to the named insured by this policy will cover Earthquake damage resulting from:
a. extracting oil or gas from below the earth’s surface by any process, including but not limited to hydraulic fracturing or drilling; or
b. injecting or inserting any substance, including but not limited to, water and wastewater, below the earth’s surface for any purpose; or
c. storage of any substance, including but not limited to, water and wastewater below the earth’s surface for any purpose; or
d. any combination of a. – c. above.