A drilling subcontractor (Cyclone Drilling) was required to indemnify the operator (Continental Resources) under an IADC drilling contract after a well explosion injured three workers. The court enforced the indemnity clause as written, finding it unlimited because the contract explicitly stated indemnification would be 'without limit.' This case shows that broad indemnity language in drilling contracts can expose subcontractors to unlimited liability regardless of insurance coverage amounts.
Never sign a contract with 'without limit' indemnification language unless you fully understand the financial exposure and have adequate insurance to cover it
Insurance requirements must be clearly specified in the contract itself—if they're not written into the agreement, courts won't use them to cap your indemnity obligation
Review indemnity clauses carefully before signing; courts will enforce the exact language you agree to, even if it creates unlimited liability