Common use of Equipment or Property Clause in Contracts

Equipment or Property. Except as specifically provided herein to the contrary, each Party hereto shall at all times be responsible for and hold harmless and indemnify the other Party from and against damage to or loss of its own and its subcontractor’s equipment or property. Except to the extent that the proceeds from Contractor’s insurance as made available to Contractor do not compensate Contractor therefore, Company shall be responsible for and shall hold harmless and indemnify Contractor for loss or destruction of or damage to Contractor’s drill pipe, drill collars, subs, reamers, bumper subs, stabilizers and other in-hole equipment when such equipment is being used in the hole below the rotary table, normal wear excepted. Abnormal wear and/or damage for which Company shall be responsible hereunder shall include, but not be limited to, wear and/or damage resulting from the presence of H2S or other corrosive elements in the hole including those introduced into the drilling fluid, excessive wear caused by sand cutting, damage resulting from excessive or uncontrolled pressure such as those encountered during testing, blow-out, or in a well out of control, excessive deviation of the hole from vertical, dog-leg severity, fishing, cementing or testing operations, and from any unusual drilling practices employed at Company’s request. Company’s responsibility for such abnormal wear and/or damage as referred to herein shall include abnormal wear and/or damage to Contractor’s choke hoses and manifolds, blowout prevention and other appurtenant equipment. Company shall pay the cost of repairing damaged equipment if repairable. In the case of equipment lost, destroyed or damaged beyond repair, Company shall reimburse Contractor an amount equal to the then current replacement cost of such equipment delivered to the Drilling Unit.

Equipment or Property. Except as specifically provided herein to the contrary, each Party hereto shall at all times be responsible for and hold harmless and indemnify the other Party from and against damage to or loss of its own and its subcontractor’s 's equipment or property. Except to the extent that the proceeds from Contractor’s 's insurance as made available to Contractor do not compensate Contractor thereforetherefor, Company Operator shall be responsible for and shall hold harmless and indemnify Contractor for loss or destruction of or damage to Contractor’s 's drill pipe, drill collars, subs, reamers, bumper subs, stabilizers and other in-hole equipment when such equipment is being used in the hole below the rotary table, normal wear excepted. Abnormal wear and/or damage for which Company Operator shall be responsible hereunder shall include, but not be limited to, wear and/or damage resulting from the presence of H2S or other corrosive elements in the hole including those introduced into the drilling fluid, excessive wear caused by sand cuttingsandcutting, damage resulting from excessive or uncontrolled pressure such as those encountered during testing, blow-out, or in a well out of control, excessive deviation of the hole from vertical, dog-leg severity, fishing, cementing or testing operations, and from any unusual drilling practices employed at Company’s Operator's request. Company’s Operator's responsibility for such abnormal wear and/or damage as referred to herein shall include abnormal wear and/or damage to Contractor’s 's choke hoses and manifolds, blowout blow-out prevention and other appurtenant equipment. Company Operator shall pay the cost of repairing damaged equipment if repairable. In the case of equipment lost, destroyed or damaged beyond repair, Company Operator shall reimburse Contractor an amount equal to the then current replacement cost of such equipment delivered to the Drilling Unit.