Drilling company wins $1.8 million

An Abilene drilling company has won a $1.8 million civil award from a New York insurance company last week for damages incurred in an oil rig blowout in June 1986.

A 42nd District Court jury awarded the money to Jim Schick and Schick Drilling Co. on a claim from William H. McGee and Co. of America, both based in New York, said Brian Cutbirth, lead attorney for Schick.

A drilling rig owned by Schick was damaged in a hydrogen sulfide gas blowout in Crockett County on June 2, 1986, Cutbirth said. Afterward, Baloise Insurance Co., and its agent, McGee and Co., refused to pay an insurance claim on the damage, Cutbirth said.

The insurance company canceled the policy on the rig after the explosion and refused to pay the claim, Cutbirth said. During the six-day trial the insurance company contented the rig was not damaged, he said.

Although it contended the rig was not damaged, the insurance company never ran tests on the rig, Cutbirth said. However, Cutbirth said, the rig has drilled its last well.

The jury ruled that the insurance company had breached the insurance contract, violated the insurance code an breached its duty to act in good faith, Cutbirth said.

Cutbirth's co-counsel on case was John Tavormina of Houston. The insurance company was represented by Roger Glandon of Abilene.