Class Code: 6214
Per NCCI's Scopes Code Description:
Code 6214 is applied to perforation of casings used in oil or gas wells. This classification is not applicable to any perforating operations that take place above ground. Perforating is mostly done by specialty contractors that transport and operate the perforating equipment.
Casing is steel pipe placed into a well to prevent the wall of the well from caving in. Casings are perforated to provide holes in the pipe through which fluids may enter or to permit the introduction of materials in the space between the casing and the wall of the bore hole.
Tools most commonly used to accomplish the casing perforation are perforating guns or perforating rods and an explosive device. The tool and explosive device are lowered into the well by a wireline unit to the point where the perforation is to be made. The explosive device is then detonated to perforate the casing. The perforation is accomplished by the firing of electrically detonated bullets or shaped charges which pierce the casing. If pressure is sufficient, the oil or gas will rise to the surface.
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.
When a portion of the operations of a risk is insured in a monopolistic state fund, consider the special rules and requirements that may exist in such cases.