Prime Natural Resources, Inc. v. Certain Underwriters at Lloyds, London, Syndicate Number 2020, 1084, 2001, 457, 510, 2791, 2987, 3000, 1221, 5000, and Navigators Insurance Co. UK
Prime Natural Resources, Inc. appealed a summary judgment ruling regarding insurance coverage for damages to an offshore oil well and platform caused by Hurricane Rita. The dispute centered on whether the insurance policy's Sections IA (Control of Well) and IB (Redrilling/Recompletion) covered costs for platform repair, refurbishment, or debris removal, beyond the limits of Section II (Physical Loss or Damage). The trial court ruled that Sections IA and IB only covered well-related expenses and not platform-related costs. The appellate court affirmed, holding that the term 'well' in the policy did not include the production platform and that 'salvage operations' for a well were distinct from 'debris removal' for a platform.