Industry Code: 06304
The classification describes general contracting business that undertake turn-key construction and maintenance projects at facilities and lease sites upstream of gas plants.
Operation Details:
Businesses may construct oil and gas wells, battery tanks, and compressor stations upstream of the processing facility. Construction activities may extend into ties-ins, installing/removing pumpjacks, dehydrators, and secondary construction activities of installing fences and gates. Activities may further extend into installing feeder lines when conducted as part of an overall construction project. Maintenance activities may include painting, welding, pipefitting, cleaning oil spills, clearing a lease road, and maintaining the grounds in and around the site.
Staffing requirements may include assorted laborers, technical staff, various construction trades, sales/estimators, and office/administrative staff. Subcontracting is common.
All employers in this industry are members of Energy Safety Canada (ESC). Safety associations represent the interests of employers and promote workplace safety through education and other initiatives. Improved workplace safety can result in fewer claims and help lower premiums. A portion of premiums collected is allocated to the association to support these initiatives.
Underwriting Considerations:
Ensure businesses are general contractors. General contractors are responsible for all aspects of the construction or maintenance project, not just one specific trade or job (i.e. grading for maintaining roads to lease site). General contractors, however, will often subcontract out different phases of the construction project. Subcontractors, when the work is trade/job specific, are classified according to the trade. A business that only does concrete and/or piping work, or other industry or trade-specific activity in the oil field or plant and lease site, is not a general contractor. Additional operations information may be required - a review of contracts or contact made with a principal (a check on recent clearances obtained may provide the information needed).
Businesses that are contracted to monitor field production facilities, check wellhead equipment, take pressure and flow readings from gauges or meters; may also conduct some routine maintenance activity which is acceptable in industry 06305 when conducted as part of the overall operating contact.
Businesses that assume the responsibility of the overall day to day maintenance of a gas plant or other downstream facility are classified in Plant Maintenance, industry 42129. Businesses that only do shutdown plant maintenance in the same situation are classified in Industrial Construction, industry 40400.
Premium Rate History:
Activities:
Construction and Maintenance of Oilfield Prod Sites
Oilfield Prodn Site Construction and Maintenance
Rate Group History:
This industry was initially placed in rate group 411901 in 1992, along with other general contracting classifications of Industrial/Commercial Construction (industry 40400), Residential Construction (industry 40401), and Plant Maintenance (industry 42129).
The classification describes general contracting business that undertake turn-key construction and maintenance projects at facilities and lease sites upstream of gas plants.
Premium Rate History:
Activities:
Construction and Maintenance of Oilfield Prod Sites
Oilfield Prodn Site Construction and Maintenance
Operation Details:
Businesses may construct oil and gas wells, battery tanks, and compressor stations upstream of the processing facility. Construction activities may extend into ties-ins, installing/removing pumpjacks, dehydrators, and secondary construction activities of installing fences and gates. Activities may further extend into installing feeder lines when conducted as part of an overall construction project. Maintenance activities may include painting, welding, pipefitting, cleaning oil spills, clearing a lease road, and maintaining the grounds in and around the site.
Staffing requirements may include assorted laborers, technical staff, various construction trades, sales/estimators, and office/administrative staff. Subcontracting is common.
All employers in this industry are members of Energy Safety Canada (ESC). Safety associations represent the interests of employers and promote workplace safety through education and other initiatives. Improved workplace safety can result in fewer claims and help lower premiums. A portion of premiums collected is allocated to the association to support these initiatives.
Underwriting Considerations:
Ensure businesses are general contractors. General contractors are responsible for all aspects of the construction or maintenance project, not just one specific trade or job (i.e. grading for maintaining roads to lease site). General contractors, however, will often subcontract out different phases of the construction project. Subcontractors, when the work is trade/job specific, are classified according to the trade. A business that only does concrete and/or piping work, or other industry or trade-specific activity in the oil field or plant and lease site, is not a general contractor. Additional operations information may be required - a review of contracts or contact made with a principal (a check on recent clearances obtained may provide the information needed).
Businesses that are contracted to monitor field production facilities, check wellhead equipment, take pressure and flow readings from gauges or meters; may also conduct some routine maintenance activity which is acceptable in industry 06305 when conducted as part of the overall operating contact.
Businesses that assume the responsibility of the overall day to day maintenance of a gas plant or other downstream facility are classified in Plant Maintenance, industry 42129. Businesses that only do shutdown plant maintenance in the same situation are classified in Industrial Construction, industry 40400.
Rate Group History:
This industry was initially placed in rate group 411901 in 1992, along with other general contracting classifications of Industrial/Commercial Construction (industry 40400), Residential Construction (industry 40401), and Plant Maintenance (industry 42129).