Class Code: 6237

Per NCCI's Scopes Code Description:

Code 6237 applies to the detection and analysis of oil or gas by conducting oil or gas flow tests such as, but not limited to, hole pressure tests, well temperature tests, well depth tests, and volume tests. Additional work classified to Code 6237 includes tests to determine if a drilled hole is straight or, if not, its angle of deviation.

Operations involving tests to determine the characteristics of the earth’s formation through which a hole has passed are also classified to Code 6237. Usually, the described testing operations involve lowering various specially designed instruments into the wells to obtain the needed data.

Employers that conduct on-site oil analyzing and testing services from trailers located at well sites but not at the well drilling area are also classified to Code 6237.

Flowback engineers who only monitor and log flowback pressure are also included in this classification. 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. Installation, repair, or servicing of equipment used for flowback purposes is not assigned to Code 6237.

This classification is intended to apply to logging or survey work, which means maintaining records and/or taking measurements. While these activities are considered wire line services by the industry, other wire line-type work involving the installation, repair, or servicing of equipment used for drilling purposes is not included in Code 6237. Examples of this wire line work include retrieving pipes or other items from a well; well cleaning; and valve, plug, or tubing installation, service, or repair.

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.

Rate per $100. of Renumeration: $ 2.08

Construction Exemption Required: Yes