Common use of Equipment or Property Clause in Contracts

Equipment or Property. (a) Except as specifically provided herein to the contrary, Contractor shall at all times be responsible for and hold harmless and indemnify Operator from and against damage to or loss of Contractor’sproperty, Contractor’s Items, and the property, equipment, material and services of Contractor’s Affiliated Companies, partnerships, and limited liability companies, and its and all of their co-owners, partners, co-venturers, joint owners, and its contractors and subcontractors of any tier and the officers, directors, employees, agents, assigns, representatives, managers, consultants, insurers and subrogees of each of the foregoing. Except to the extent that the proceeds from Contractor’s insurance as made available to Contractor do not compensate Contractor therefor, (1) Operator shall be responsible for and hold harmless and indemnify Contractor for loss or destruction of or damage to Contractor’s drill pipe, drill collars, subs, reamers, bumpersubs, 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 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 sandcutting, damage resulting from excessive or uncontrolled pressures such as those encountered during testing, blowout, 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 Operator’s request. Operator’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, BOP and other appurtenant equipment. Operator shall pay the cost of repairing damaged equipment if repairable. In the case of equipment lost, destroyed or damaged beyond repair, Operator shall reimburse Contractor an amount equal to thethencurrent replacement cost of such equipment delivered to the Drilling Unit. (2) Operator shall be responsible for and hold harmless and indemnify Contractor for damage to or loss of Contractor’s subsea and mooring equipment, including without limitation, chains, anchors, the riser, slip joint, choke and kill lines, flexible hoses, hydraulic hoses and guidelines, subsea BOP, shackles, pendant lines and buoys, and shall reimburse Contractor an amount equal to thethencurrent replacement cost of such equipment delivered to the Drilling Unit, or the repair cost, whichever is applicable. (3) Operator shall be responsible for and hold harmless and indemnify Contractor for loss or destruction of or damage, including corrosion and contamination, to Contractor’s surface equipment resulting from the presence of H2S, CO2 or other corrosive elements introduced into the drilling fluid (including elements introduced from the hole), or the presence of naturally occurring radioactive materials (NORM). Operator shall pay the cost of repairing and/or decontaminating damaged equipment if repairable. In the case of equipment lost, destroyed, damaged or contaminated beyond repair, Operator shall reimburse Contractor an amount equal to the then current replacement cost of such equipment delivered to the Drilling Unit. In addition, notwithstanding the provisions of Paragraph 706 of this Contract, the Standby Rate shall apply with respect to any downtime that may occur or result from such damage, including decontamination operations. (4) Operator shall be responsible for and hold harmless and indemnify Contractor for damage to or loss of the Drilling Unit caused by Operator furnished helicopters, tugs, supply or service vessels. (b) Contractor’s operating practices require the BOP stack to be operated at one (1) degree or less from vertical to avoid abnormal wear and damage. In the event the stack angle exceeds one (1) degree from vertical, Operator shall be responsible for and hold harmless and indemnify Contractor for loss or damage to Contractor’s subsea and in-hole equipment whichmay result. Operator shall pay the cost of repairing damaged equipment if repairable. In the case of equipmentlost, destroyed ordamaged beyond repair, Operator shall reimburse Contractor an amount equal to the then current replacement cost of such equipment delivered to the Drilling Unit. In addition, notwithstanding the provisions of Paragraph 706 of this Contract, the Standby Rate shall apply with respect to the period of time required to repair or replace Contractor’s subsea and in-hole equipment that may occur or result from such loss or damage. (c) Operator shall at all times be responsible for and hold harmless and indemnify Contractor from and against damage to or loss of Operator’s property, Operator’s Items, and the property, equipment, material and services of Operator’s Affiliated Companies, partnerships, and limited liability companies, and its and all of their co-owners, co-lessees, farmors, farmees, partners, co-venturers, joint owners, and its contractors and subcontractors of any tier (with the exception of Contractor and its subcontractors of any tier) and the officers, directors, employees, agents, assigns, representatives, managers, consultants, insurers and subrogees of each of the foregoing.

Equipment or Property. (a) Except as specifically provided herein to the contrary, Contractor shall at all times be responsible for and hold harmless and indemnify Operator Group from and against damage to or loss of Contractor’sproperty, Contractor Group’s property and Contractor’s Items, and the property, equipment, material and services of Contractor’s Affiliated Companies, partnerships, and limited liability companies, and its and all of their co-owners, partners, co-venturers, joint owners, and its contractors and subcontractors of any tier and the officers, directors, employees, agents, assigns, representatives, managers, consultants, insurers and subrogees of each of the foregoing. Except to To the extent that the proceeds from ContractorContractor Group’s insurance as made available to Contractor Group do not compensate Contractor Group therefor,: (1i) Operator shall be responsible for and hold harmless and indemnify Contractor Group for loss or destruction of or damage to ContractorContractor Group’s drill pipe, drill collars, subs, reamers, bumpersubsbumper 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 Operator shall be responsible hereunder shall include, but not be limited to, include 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 sandcutting, damage resulting from excessive or uncontrolled pressures such as those encountered during testing, blowout, blowout 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 Operator’s requestrequest and which Contractor notifies Operator in writing it considers unusual drilling practices. Operator’s responsibility for such abnormal wear and/or damage as referred to herein shall include abnormal wear and/or damage to ContractorContractor Group’s choke hoses and manifolds, BOP and other appurtenant equipment. Operator shall pay the cost of repairing damaged equipment if repairable. In the case of equipment lost, destroyed or damaged beyond repair, Operator shall reimburse Contractor an amount equal to thethencurrent the then current replacement cost of such equipment delivered to the Drilling Unit.Rig; (2ii) Operator shall be responsible for and hold harmless and indemnify Contractor Group for damage to or loss of ContractorContractor Group’s subsea and mooring equipment, including without limitation, chains, anchors, the riser, slip joint, choke and kill lines, flexible hoses, hydraulic hoses and guidelines, subsea BOP, shackles, pendant lines and buoys, and shall reimburse Contractor an amount equal to thethencurrent the then current replacement cost of such equipment delivered to the Drilling UnitRig, or the repair cost, whichever is applicable.; and (3iii) Operator shall be responsible for and hold harmless and indemnify Contractor Group for loss or destruction of or damage, including corrosion and contamination, to ContractorContractor Group’s surface equipment and resulting from the presence of H2S, CO2 C02 or other corrosive elements introduced into the drilling fluid (including elements introduced from the hole), or the presence of naturally occurring radioactive materials (NORM). Operator shall pay the cost of repairing and/or decontaminating damaged equipment if repairable. In the case of equipment lost, destroyed, damaged or contaminated beyond repair, Operator shall reimburse Contractor an amount equal to the then current replacement cost of such equipment delivered to the Drilling UnitRig. In additionUpon the occurrence of any loss or damage described in: (1) Section 8.1(a)(i), notwithstanding the provisions of Paragraph 706 of this Contract, Operator shall pay the Standby Rate in each case up to a maximum of [***] days per occurrence, after which the Zero Rate shall apply; (2) Section 8.1(a)(ii), Operator shall pay the Standby Rate in each case up to a maximum of [***] days per occurrence, after which the Zero Rate shall apply with respect (except that, upon the occurrence of any loss or damage described in Section 8.1(a)(ii) to any downtime that may occur the riser, slip joint, lower flex joint and mandrel, gooseneck, flex loops, upper flex joint, or result from such damagesubsea BOP, including decontamination operations.Operator shall pay the Standby Rate in each case up to a maximum of [***] days per occurrence, after which the Zero Rate shall apply); and (43) Section 8.1(a)(iii), Operator shall be responsible for and hold harmless and indemnify Contractor for damage pay the Standby Rate in each case up to or loss a maximum of [***] days per occurrence, after which the Drilling Unit caused by Operator furnished helicopters, tugs, supply or service vesselsZero Rate shall apply. (b) Contractor’s operating practices require the BOP stack to be operated at one (1) degree or less from vertical to avoid abnormal wear and damage. In the event the stack angle exceeds one (1) degree from vertical, the Work will only proceed upon the mutual agreement of the Parties; if so agreed, Operator shall be responsible for and hold harmless and indemnify Contractor Group for loss or damage to ContractorContractor Group’s subsea and in-hole equipment whichmay which may result. Operator shall pay the cost of repairing damaged equipment if repairable. In the case of equipmentlostequipment lost, destroyed ordamaged or damaged beyond repair, Operator shall reimburse Contractor an amount equal to the then current replacement cost of such equipment delivered to the Drilling UnitRig. In additionUpon the occurrence of any equipment loss or damage described in this Section 8.1(b), notwithstanding the provisions of Paragraph 706 of this Contract, Operator shall pay the Standby Rate in each case until such lost or damaged equipment is repaired or replaced and Operator shall apply with respect not have the right to the period of time required terminate this Drilling Contract pursuant to repair or replace Contractor’s subsea and in-hole equipment that may occur or result from such loss or damageSection 13.2.1(d). (c) Operator shall at all times be responsible for and hold harmless and indemnify Contractor Group from and against damage to or loss of OperatorOperator Group’s property, property and Operator’s Items, and the property, equipment, material and services of Operator’s Affiliated Companies, partnerships, and limited liability companies, and its and all of their co-owners, co-lessees, farmors, farmees, partners, co-venturers, joint owners, and its contractors and subcontractors of any tier (with the exception of Contractor and its subcontractors of any tier) and the officers, directors, employees, agents, assigns, representatives, managers, consultants, insurers and subrogees of each of the foregoing.

Equipment or Property. (a) Except as specifically provided herein to the contrary, Contractor each Party shall at all times be responsible for and hold harmless harmless, defend and indemnify Operator the other Party from and against damage to or loss of Contractor’spropertyits own equipment or property, Contractor’s Itemsregardless of the cause of loss, including the negligence of such Party, and despite the property, equipment, material and services of Contractor’s Affiliated Companies, partnerships, and limited liability companies, and its and all of their co-owners, partners, co-venturers, joint owners, and its contractors and subcontractors of any tier and fact that a Party's items may be under the officers, directors, employees, agents, assigns, representatives, managers, consultants, insurers and subrogees of each control of the foregoing. Except to the extent that the proceeds from Contractor’s insurance as made available to Contractor do not compensate Contractor thereforother Party, except that, (1a) Operator Company shall be responsible at all times 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, bumpersubsbumper 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 Operator Company shall be responsible hereunder shall include, but not be limited to, wear and/or damage resulting from the presence of H2S hydrogen sulfide or other corrosive elements in the hole including those introduced into the drilling fluid, excessive wear caused by sandcutting, damage resulting from excessive or uncontrolled pressures pressure such as those encountered during testing, blowoutblow-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 Workover Services undertaken at Operator’s Company's request. Operator’s Company'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, BOP blow-out prevention and other appurtenant equipment. Operator Company shall pay the cost of repairing damaged equipment if repairable. In the case of equipment lost, destroyed or damaged beyond repair, Operator shall reimburse Contractor an amount equal to thethencurrent replacement cost of such equipment delivered to the Drilling Unit. (2) Operator shall be responsible for and hold harmless and indemnify Contractor for damage to or loss of Contractor’s subsea and mooring equipment, including without limitation, chains, anchors, the riser, slip joint, choke and kill lines, flexible hoses, hydraulic hoses and guidelines, subsea BOP, shackles, pendant lines and buoys, and shall reimburse Contractor an amount equal to thethencurrent replacement cost of such equipment delivered to the Drilling Unit, or the repair cost, whichever is applicable. (3) Operator shall be responsible for and hold harmless and indemnify Contractor for loss or destruction of or damage, including corrosion and contamination, to Contractor’s surface equipment resulting from the presence of H2S, CO2 or other corrosive elements introduced into the drilling fluid (including elements introduced from the hole), or the presence of naturally occurring radioactive materials (NORM). Operator shall pay the cost of repairing and/or decontaminating damaged equipment if repairable. In the case of equipment lost, destroyed, damaged or contaminated beyond repair, Operator Company shall reimburse Contractor an amount equal to the then current replacement cost of such equipment delivered to the Drilling Workover Rig or Pullover Unit, less depreciation. In additioncalculating Company's liability under this Section 9.1(a), notwithstanding the provisions of Paragraph 706 of this Contract, the Standby Rate Company shall apply receive credit for any physical damage insurance proceeds actually received by Contractor with respect to any downtime damage or destruction to Contractor's equipment that may occur or result from such damage, including decontamination operationsis subject to indemnification by Company under this Section 9.1(a). (4b) Operator The depreciation rate for Contractor's equipment lost, destroyed or damaged beyond repair shall be twenty (20%) per annum straight line from Contractor's documented date of purchase or refurbishment; provided however, in no event shall depreciation deducted from replacement cost exceed fifty percent (50%) of the original purchase or refurbishment price of such equipment. (c) Notwithstanding anything to the contrary in this Agreement, each Party shall be responsible for and hold harmless and indemnify Contractor for damage to the other Party from and against any loss or loss of the Drilling Unit caused by Operator furnished helicopters, tugs, supply use or service vessels. damage to such other Party's tangible property (bsuch as flow lines and rigs) Contractor’s operating practices require the BOP stack to be operated at one (1) degree or less from vertical to avoid abnormal wear and damage. In the event the stack angle exceeds one (1) degree from vertical, Operator shall be responsible for and hold harmless and indemnify Contractor for when such loss or damage to Contractor’s subsea occurs outside of the hole and in-hole equipment whichmay result. Operator shall pay solely caused by the cost of repairing damaged equipment if repairable. In the case of equipmentlostnegligent acts, destroyed ordamaged beyond repairerrors or omissions, Operator shall reimburse Contractor an amount equal to the then current replacement cost gross negligence or willful and wanton acts of such equipment delivered to the Drilling Unit. In addition, notwithstanding the provisions of Paragraph 706 of Party; provided that a Party's liability under this Contract, the Standby Rate Section 9.1(c) shall apply with respect to the period of time required to repair or replace Contractor’s subsea and in-hole equipment that may occur or result from such loss or damagenot exceed $20,000 per indemnifiable event. (c) Operator shall at all times be responsible for and hold harmless and indemnify Contractor from and against damage to or loss of Operator’s property, Operator’s Items, and the property, equipment, material and services of Operator’s Affiliated Companies, partnerships, and limited liability companies, and its and all of their co-owners, co-lessees, farmors, farmees, partners, co-venturers, joint owners, and its contractors and subcontractors of any tier (with the exception of Contractor and its subcontractors of any tier) and the officers, directors, employees, agents, assigns, representatives, managers, consultants, insurers and subrogees of each of the foregoing.