(a) Prior to entry
upon the leased lands, lessee or lessee's assignee, sublessee, or transferee
shall cause to be secured and to be thereafter maintained in force during the
term of the lease, public liability and property damage insurance from an
insurance company licensed to do business in the State in amounts to be
determined by the board and stated in the geothermal lease for injuries to
persons, wrongful death, and damages to property caused by any occupancy, use,
operations, or any other activity on leased lands carried on by lessee, or
lessee's assignee, sublessee, or transferee, and its agents or contractors in
connection therewith. Liability coverage for explosion, collapse, and
underground hazards are to be included prior to any drilling of a well for
geothermal discovery, evaluation, or production. Lessee shall evidence the
additional coverage to the chairperson prior to initiation of drilling
operations. If the land surface and improvements thereon covered by the lease
have been sold or leased by the State to a person other than the lessee, the
owner or lessee of surface rights and improvements shall be a named insured.
The State, any owner, and any lessee of surface rights and improvements shall
be a named insured in all instances. These policy or policies of liability
insurance shall contain the following special endorsement:
"The State of Hawaii, the Hawaii State Board of Land and
Natural Resources, the Chairperson of the Board of Land and Natural Resources,
the Department of Land and Natural Resources, and (herein insert name of owner
or lessee of surface rights, if applicable) and the officers, employees and
agents of each and every of the foregoing (hereinafter referred to as "named
insureds") are insureds under the terms of this policy; provided, however, said
insureds shall not be insured hereunder for any primary negligence or
misconduct on their part, but shall be insured hereunder for secondary
negligence or misconduct, which shall include the failure to discover and cause
to be corrected the negligence or misconduct of lessee, its agents or
contractors. This insurance policy shall not be canceled without thirty days
prior written notice to the Board and all named insured. None of the foregoing
additional insureds are liable for the payment of premiums or assessments on
this policy."
(b) No
cancellation provision in any insurance policy shall release the lessee of duty
to furnish insurance during the term of this contract. The policy or policies
shall be underwritten to the satisfaction of the chairperson. A signed and
complete certificate of insurance, with the endorsement required by this
subsection, shall be submitted to the chairperson prior to entry upon the
leased land. At least thirty days prior to the expiration of any policy, a
signed and complete certificate of insurance, with the endorsement required by
this paragraph showing that the insurance coverage has been renewed or
extended, shall be filed with the chairperson.
