Article ID: 77f94ab3b7810a4c2648b4327f844024e13296cad905d11611b7718b4c5d8ee1
Source ID: secondary:businessinsurance.com
Published At: -
Extraction Method: bs4_heuristic
URL: https://www.businessinsurance.com/insurers-denied-105-million-in-collateral-from-texas-oil-driller/
Body Text
Insurers denied $105 million in collateral from Texas oil driller - Business Insurance Skip to content Register for free Search Search Log In Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Insurers denied $105 million in collateral from Texas oil driller by Richard Sine Energy Mar 20, 2026 A Texas federal judge on Thursday denied a bid by two surety insurers for some $105 million in collateral from a Houston-based oil driller. U.S. District Judge Andrew S. Hanen ruled that U.S. Fire Insurance, a unit of Crum & Forster, and Pennsylvania Insurance, a unit of Applied Underwriters, aren’t entitled to a preliminary injunction demanding the collateral in the case W&T Offshore Inc. and W&T Energy IV vs Endurance Assurance Corp. and Lexon Insurance Co. Judge Hanen approved a magistrate report saying that the insurers’ allegations of imminent financial harm are “speculation.” Federal regulators require drillers to provide financial assurance that taxpayers won’t be responsible for decommissioning and cleaning up their wells at the end of their life cycle. W&T acquired $450 million in surety bonds from a group of insurers who demanded $250 million in collateral, “far more than W&T’s cash reserves,” according to a filing by W&T. In demanding the collateral, the insurers cited a 2024 rule by the federal Bureau of Ocean Energy Management aimed at limiting the number of abandoned wells, requiring oil and gas leaseholders to provide about $6.9 billion in additional financial assurances to cover decommissioning costs. W&T countersued five insurers on antitrust grounds, contending that they conspired to raise premiums and collateral in the face of declining profits, and that there had been no change in W&T’s financial condition to justify the demands. In June 2025, W&T settled with two of the largest insurers, who withdrew their collateral demands and their legal claims. That same month, a magistrate recommended denial of a preliminary injunction by the remaining insurers, U.S. Fire and Pennsylvania Insurance, demanding their $105 million in collateral. The magistrate, Judge Dena Hanovice Palermo, said the insurers offered no evidence that W&T was in financial trouble. W&T Offshore CEO Tracy Krohn said in a statement that the magistrate’s recommendation would help end the “blackmail business practices” and “bullying tactics” of unjustified collateral demands. The publicly-traded driller operates more than 50 offshore oilfields. The Trump administration has proposed rolling back the 2024 Bureau of Ocean Energy Management rule, which was never fully implemented. Crum & Forster and Applied Underwriters did not respond to requests for comment. Related News Calif. bill would require certification for stone fabrication shops March 20, 2026 Author, publisher not blood-sucking vampires of unpublished material March 20, 2026 Chubb announces structure of marine war insurance facility March 20, 2026 Medical supply vendor not a provider under comp law: Pa. court March 20, 2026 Liberty Mutual names Johnson to head Ironshore March 20, 2026 Insurer released from Potbelly’s coverage claim March 20, 2026 Insurer off hook for medical costs for worker’s travel to visit family March 20, 2026 Indian gas tankers getting ready to sail through Hormuz, data shows March 20, 2026 The BI Top 10 for the week of March 16, 2026 March 20, 2026 Facebook-f X-twitter Linkedin-in Business Insurance is a singular, authoritative news and information source for executives focused upon risk management, risk transfer and risk financing. Never miss important news: Become a Business Insurance Online subscriber today Subscribe Now Information About Us Contact Advertise Privacy Policy Terms & Conditions Copyright 2026. BUSINESS INSURANCE HOLDINGS Member, Beacon International Group, Ltd.
Metadata (JSON)
{
"score": 14.283333333333333
}