Class Code: 6213

Per NCCI's Scopes Code Description:

Code 6213 applies to risks engaged in leasing specialty tools and equipment used by drilling contractors. These tools are usually leased with supervisory personnel. The drilling contractor normally provides the operating crew for this equipment. Risks providing complete operating crews along with the specialty tools and equipment are separately classified as to Code 6235.

Testing or inspection of oil or gas pipes not performed in conjunction with the construction of the pipeline is properly classified to Code 8720.

Equipment and Materials:

Typical kinds of equipment leased by these insureds include, but are not limited to, hydraulic power units, swab rigs, wireline units, cementing manifolds, weights/pipe collars, baskets, beams, elevators, flanges, scrapers, and pumps.

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.

Related Operations Not Classified to Code 6213:

Refer to Code 6233 for testing or inspection of oil or gas pipes performed in conjunction with the construction of these pipelines.

Code 6213 is a “not otherwise classified” (NOC) classification. The following is a representative list of operations somewhat related in nature to Code 6213 operations that are not assigned to Code 6213.

1320 Oil or Gas Lease Operator
6216 Oil or Gas Lease Work NOC—By Specialist Contractor
6233 Oil or Gas Pipeline Construction
7515 Oil or Gas Pipeline Operation
6206 Oil or Gas Well—Cementing
1322 Oil or Gas Well—Cleaning or Swabbing of Wells—By Specialist Contractor—No Drilling
6235 Oil or Gas Well—Drilling or Redrilling
6236 Oil or Gas Well—Installation or Recovery of Casing
6237 Oil or Gas Well—Instrument Logging or Survey Work Contractor
6214 Oil or Gas Well—Perforating of Casing
8107 Oil or Gas Well—Supplies or Equipment Dealer—New
4740 Oil Refining—Petroleum
3719 Oil Still Erection or Repair

In addition to this representative list, one should review sources such as the alphabetical index in this manual to determine whether a classification other than Code 6213 or a classification other than a classification on the above list is applicable to the operation(s) being reviewed for classification purposes.

Rate per $100. of Renumeration: $ 1.65

Construction Exemption Required: Yes