AN EXAMINATION OF INSURANCE COVERAGE FOR HYDRAULIC FRACKING OPERATIONS

Christopher Avery
Brian Martin
Thompson Coe Cousins & Irons LLP

Diana Brown
Sam Houston State University

ABSTRACT

The energy industry is one of the fastest growing and most dynamic sectors of the United
States economy. A surge in hydraulic fracturing techniques, or fracking, has been driving recent
growth in the energy industry. Fracking is used to produce oil from either played-out fields or
from areas not traditionally associated with oil production. Accompanying the boom in
production is a accompanying increase in litigation arising from fracking operations and the
damage that the operations are alleged to cause. Necessarily, those claims and lawsuits implicate
a number of insurance coverage concerns. This study examines the science of fracking and details
many of the associated risks that would require insurance coverage. It highlights the types of
litigation that have erupted along with the fracking boom. Finally, it discusses the potential
application of many frequently-used insurance policies.

Keywords: hydraulic fracturing, insurance coverage, fracking, hydrofracking, oil, gas, energy