Class Code: 6206

Per NCCI's Scopes Code Description:

Code 6206 applies to cementing oil or gas wells and also to acidizing these wells. The cementing operation involves the pumping of mixed cement, under pressure, through the casing to the bottom of the well. The pressure then forces the cement back up to the surface of the earth in the space created between the casing and the drill hole.

The acidizing operations are used in both old and new wells. Generally, a form of acid is pumped into the well casing to break up deposits of heavy oil, paraffin, or calcium. This type of operation does not require the use of any derrick or portable derrick rig, but it requires the use of a tank truck to transport the liquid and a pump to dispense the liquid into the well casing.

Analogy Assignments:

Specialist contractors who perform a process known as “fracturing” are also included in this classification. Fracturing involves pumping fluid under high pressure into rock fractures to expand them and also leaving a “propping agent,” such as sand, to keep the fractures open. This allows the oil or natural gas to move more freely from the rock pores to a production well. Fracturing performed by a drilling company is assigned to Code 6235.

Employers that provide flowback services are included in this classification if the services are performed in support of fracturing operations. Flowback refers to a process by which the fluid used for fracturing a shale formation is recovered from the well at the surface. Flowback is performed in preparation for a subsequent phase of treatment, or to clean up and transition the well to a production stage. Flowback engineers who only monitor and log flowback pressure are assigned to Code 6237. Flowback services performed by a drilling company are assigned to Code 6235.

Special Conditions:

Extra-Territorial Classification Guidelines:

The following material was developed by NCCI to be used as a guide by auditors and underwriters in the determination of premium for contracting (construction risks) with extra-territorial employments where no company guidelines have been established for this purpose. Construction classifications are indicated by the addition of a construction code symbol () next to the classification code number.

   
1.    Payroll of employees of contractors who have their place of business in a given state and operate also in adjoining states and who are constantly crossing state lines, but usually return to their homes each night, must be assigned to their headquarters’ state. Example: Contractors such as electricians, plumbers, carpet layers, etc.
2.    The payroll for construction project managers, executives, or superintendents who may visit a job but who are not in direct charge of a job must be assigned to the state in which their headquarters are located.
3.    There are contractors who maintain a permanent staff of employees and superintendents. If any of these employees or superintendents is assigned to a job that is located in a state other than their headquarters’ state, either for the duration of the job or any portion thereof, their payroll must be assigned to the highest rated of either the state in which the job is located or the headquarters’ state.
4.    The payroll of employees who is hired for a specific job project must be assigned to the state in which the job is located.

When a portion of the operations of a risk are insured in a monopolistic state fund, consider the special rules and requirements that may exist in such cases.

CROSS-REF.  OIL OR GAS—WELL—ACIDIZING—ALL EMPLOYEES & DRIVERS

(N/A FL, TX)

Note:  Code 6206 must not be assigned at the same job or location to which Code 6235 applies because acidizing would be considered incidental to drilling operations. Includes flowback services when performed in support of fracturing operations.

Rate per $100. of Renumeration: $ 2.46

Construction Exemption Required: Yes