Class Code: 6216

Per NCCI's Scopes Code Description:

Code 6216 applies to oil field specialist contractors who perform well maintenance operations at oil lease sites and are not otherwise classified. This classification includes but is not limited to well maintenance (lubricating, etc.), oil treating services, oil field roustabout services, pumpers, and tank cleaning services.

Refer to Code 1320 for employees of an oil or gas lease owner/operator.

Oil field roustabout services include plumbing operations and cleaning, maintenance, and repair of auxiliary equipment, as well as miscellaneous work at the oil or gas lease site as needed.

Oil treating operations include heat treating of subgrade oil stored in tank batteries and the cleaning of auxiliary equipment using steam cleaning equipment.

Tank cleaning service consists of removal of paraffin and residue from the interior of tank batteries and spreading the residue on oil lease roads.

Tank truck operations servicing oil well sites are classified to Code 6216. These employers deliver specialty brine water that is used to facilitate the removal of cuttings during the drilling process. The water is placed into a frac tank near the drilling rig and which the driller will draw from during the drilling process. These employers usually remove waste water from these sites, which is a by-product of the drilling process. The waste water is generally in a containment pit where suction hoses are installed. The water is pumped into the tank truck and taken to a designated disposal site. The spreading of by-products on agricultural fields is not included in Code 6216.

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 6216:

Refer to Code 6213 for the leasing of specialty tools and equipment used by drilling contractors.

Refer to Code 7515 for pipeline construction and pipeline maintenance.

Code 6216 is a “not otherwise classified” (NOC) classification. The following is a representative list of operations somewhat related in nature to Code 6216 operations that are not assigned to Code 6216:

1320 Oil or Gas—Lease Operator
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
6213 Oil or Gas—Well—Specialty Tool & Equipment Leasing NOC
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 6216 or a classification other than a classification on the above list is applicable to the operation(s) being reviewed for classification purposes.

CROSS-REF.  GAS OR OIL—LEASE WORK NOC—NATURAL GAS—BY SPECIALIST CONTRACTOR & DRIVERS

(N/A FL, NM, TX)

Note:  Includes laying or taking up flow lines and water lines; tank truck operations servicing gas or oil well sites; and installing central pumping units. The following operations are not included in Code 6216 and must be separately rated: pipeline construction, tank building, rig or derrick erecting or dismantling, installing or recovering casing, drilling, cementing, cleaning and swabbing wells, or well shooting. Not applicable to owner/operators of a gas or oil lease operation, or to a risk under contract with the lease owner that performs all operations necessary to work a gas or oil lease.

Drill site preparations including but not limited to clearing land; building lease roads, slush pits, levees, or fire walls; and lease beautification or dirt work performed by a specialist contractor are classified to codes applicable to these operations, provided the services are performed prior to rig erection. Specialist contractors who perform these services during or after rig erection are assigned to Code 6216.

Rate per $100. of Renumeration: $ 4.46

Construction Exemption Required: Yes