Common use of Valuation and Basis of Recovery Clause in Contracts

Valuation and Basis of Recovery. The quantum of a loss hereunder shall be determined as follows: 1. As respects tangible property insured under insuring agreement 1, other than inventories, materials and supplies: (a) if the property is repaired or replaced in kind and at the original site, the basis of valuation will be the Replacement Cost, (b) if the property is repaired other than in kind or is replaced at another site the basis of valuation will be the lesser of the Replacement Cost or the estimated Replacement Cost in kind at the original site at the time of the Occurrence, (c) if one or more of the following applies: (i) the Assured notifies the Underwriter in writing that the property will not be repaired or replaced; (ii) the work of repair or replacement does not commence within twenty four (24) months of the Date of Discovery; (iii) the work of repair or replacement is not completed within a reasonable time; then, unless mutually agreed in writing between the Underwriter and the Assured, the basis of valuation will be Depreciated Cost. Loss as determined under this condition shall not include any increased cost of expediting repair or replacement or Betterment. 2. As respects inventories (including crude petroleum or finished petroleum products), materials or supplies (including materials in process) insured under insuring agreement 1, including such items while in transit shall be valued at Replacement Cost of like kind and quality, at the place and at the time of loss (including all cost and duty if applicable). 3. As respects all records and documents, including but not limited to accounts and other data and manuscripts, mechanical drawings insured under insuring agreement 1, at value blank plus cost of transcribing. 4. As respects insuring agreement 1, shall exclude historical, rare, fine arts, artistic, aesthetic and similar non-utility values. 5. As respects insuring agreements 1 and 2 shall include costs and expenses incurred in safeguarding, preserving and forwarding the property, as well as costs and expenses in respect of general average, sue and labor, salvage, and expenses incurred in the removal of debris or wreck even if incurred solely as the result of Governmental Direction or other authoritative order. 6. As respects insuring agreement 2 (b), expenses incurred to bring a Well that is Out of Control Under Control and notwithstanding the definition of Under Control, costs and expenses incurred as required by applicable law or governmental regulation or Governmental Direction to control the Well(s). These expenses include, but are not limited to, the value of materials and supplies consumed in the operation, rental of equipment, fees of individuals, firms, or corporations specializing in firefighting and/or the control of such Well(s), cost of drilling direction relief Well(s) necessary to bring the Well(s) Under Control or to extinguish the fire (including the cost of abandonment of any such relief Well(s), provided such ▇▇▇▇▇ are not used for production) and, in any instance where a replacement Well(s) is drilled, the costs of abandonment of the original Well(s). This shall further include any expenses incurred in respect of fighting a fire endangering or involving property insured hereunder. 7. As respects insuring agreement 3, shall (but only to the extent approved in the specific case by the Named Insured) include sum or sums for which any director, officer or employee of any Assured may be legally liable for actions within the scope of his authority for such entity. 8. As respects insuring agreement 3, shall include: (a) reasonable and necessary legal expenses and costs incurred in defending and/or investigating covered claims arising from an Occurrence covered under such insuring agreement 3 (including premiums on bonds to release attachments and premiums on appeal bonds), and (b) reasonable and necessary expenses incurred, liability to any governmental authority or agency or instrumentality thereof or regulatory authority for clean-up and removal costs and expenses, or liability for costs and expenses of governmental or governmental agency or regulatory authority action, in each case to the extent reasonable and necessary to minimize or remediate, or prevent further injuries to persons or loss or damage to property (other than property insured or which could be, but for any of the exclusions contained in this policy, insured under insuring agreement 1) from an Occurrence that has taken place and is covered under insuring agreement 3, and (c) any other liability to any governmental authority or agency or instrumentality thereof or regulatory authority resulting from an Occurrence that has taken place and is covered under such insuring agreement 3, but shall not include costs or expenses, or liability in respect thereof, as respects work, equipment or other measures taken to prevent or minimize personal injury or bodily injury, including death, or loss of, loss of use of or damage to property of any kind or description from ongoing operations (as contrasted with past operations, whether or not at the site or facility) of the Assured.

Valuation and Basis of Recovery. The quantum of a loss hereunder reinsured by this policy shall be determined as follows: 1. As respects tangible property insured reinsured under insuring reinsurance agreement 1, other than inventories, materials and supplies: (a) if the property is repaired or replaced in kind and at the original site, the basis of valuation will be the Replacement Cost, (b) if the property is repaired other than in kind or is replaced at another site the basis of valuation will be the lesser of the Replacement Cost or the estimated Replacement Cost in kind at the original site at the time of the Occurrence, (c) if one or more of the following applies: (i) the Assured notifies the Underwriter in writing that the property will not be repaired or replaced; (ii) the work of repair or replacement does not commence within twenty four (24) months of the Date of Discovery; (iii) the work of repair or replacement is not completed within a reasonable time; then, unless mutually agreed in writing between the Underwriter and the Assured, the basis of valuation will be Depreciated Cost. Loss as determined under this condition shall not include any increased cost of expediting repair or replacement or Betterment. 2. As respects inventories (including crude petroleum or finished petroleum products), materials or supplies (including materials in process) insured reinsured under insuring reinsurance agreement 1, including such items while in transit shall be valued at Replacement Cost of like kind and quality, at the place and at the time of loss (including all cost and duty if applicable). 3. As respects all records and documents, including but not limited to accounts and other data and manuscripts, mechanical drawings insured reinsured under insuring reinsurance agreement 1, at value blank plus cost of transcribing. 4. As respects insuring reinsurance agreement 1, shall exclude historical, rare, fine arts, artistic, aesthetic and similar non-utility values. 5. As respects insuring reinsurance agreements 1 and 2 shall include costs and expenses incurred in safeguarding, preserving and forwarding the property, as well as costs and expenses in respect of general average, sue and labor, salvage, and expenses incurred in the removal of debris or wreck even if incurred solely as the result of Governmental Direction or other authoritative order. 6. As respects insuring reinsurance agreement 2 (b), expenses incurred to bring a Well that is Out of Control Under Control and notwithstanding the definition of Under Control, costs and expenses incurred as required by applicable law or governmental regulation or Governmental Direction to control the Well(s). These expenses include, but are not limited to, the value of materials and supplies consumed in the operation, rental of equipment, fees of individuals, firms, or corporations specializing in firefighting and/or the control of such Well(s), cost of drilling direction relief Well(s) necessary to bring the Well(s) Under Control or to extinguish the fire (including the cost of abandonment of any such relief Well(s), provided such ▇▇▇▇▇ are not used for production) and, in any instance where a replacement Well(s) is drilled, the costs of abandonment of the original Well(s). This shall further include any expenses incurred in respect of fighting a fire endangering or involving property insured reinsured hereunder. 7. As respects insuring reinsurance agreement 3, shall (but only to the extent approved in the specific case by the Named Insured) include sum or sums for which any director, officer or employee of any Assured may be legally liable for actions within the scope of his authority for such entity. 8. As respects insuring reinsurance agreement 3, shall include: (a) reasonable and necessary legal expenses and costs incurred in defending and/or investigating covered claims arising from an Occurrence covered under such insuring reinsurance agreement 3 (including premiums on bonds to release attachments and premiums on appeal bonds), and (b) reasonable and necessary expenses incurred, liability to any governmental authority or agency or instrumentality thereof or regulatory authority for clean-up and removal costs and expenses, or liability for costs and expenses of governmental or governmental agency or regulatory authority action, in each case to the extent reasonable and necessary to minimize or remediate, or prevent further injuries to persons or loss or damage to property (other than property insured reinsured or which could bebe reinsured, but for any of the exclusions contained in this policy, insured under insuring reinsurance agreement 1) from an Occurrence that has taken place and is covered under insuring reinsurance agreement 3, and (c) any other liability to any governmental authority or agency or instrumentality thereof or regulatory authority resulting from an Occurrence that has taken place and is covered under such insuring reinsurance agreement 3, but shall not include costs or expenses, or liability in respect thereof, as respects work, equipment or other measures taken to prevent or minimize personal injury or bodily injury, including death, or loss of, loss of use of or damage to property of any kind or description from ongoing operations (as contrasted with past operations, whether or not at the site or facility) of the Assured.

Valuation and Basis of Recovery. The quantum of a loss hereunder shall be determined as follows: 1. As respects tangible property insured under insuring agreement 1, other than inventories, materials and supplies: (a) if the property is repaired or replaced in kind and at the original site, the basis of valuation will be the Replacement Cost, (b) if the property is repaired other than in kind or is replaced at another site the basis of valuation will be the lesser of the Replacement Cost or the estimated Replacement Cost in kind at the original site at the time of the Occurrence, (c) if one or more of the following applies: (i) the Assured notifies the Underwriter in writing that the property will not be repaired or replaced; (ii) the work of repair or replacement does not commence within twenty four (24) months of the Date of Discovery; (iii) the work of repair or replacement is not completed within a reasonable time; then, unless mutually agreed in writing between the Underwriter and the Assured, the basis of valuation will be Depreciated Cost. Loss as determined under this condition shall not include any increased cost of expediting repair or replacement or Betterment. 2. As respects inventories (including crude petroleum or finished petroleum products), materials or supplies (including materials in process) insured under insuring agreement 1, including such items while in transit shall be valued at Replacement Cost of like kind and quality, at the place and at the time of loss (including all cost and duty if applicable). 3. As respects all records and documents, including but not limited to accounts and other data and manuscripts, mechanical drawings insured under insuring agreement 1, at value blank plus cost of transcribing. 4. As respects insuring agreement 1, shall exclude historical, rare, fine arts, artistic, aesthetic and similar non-utility values. 5. As respects insuring agreements 1 and 2 shall include costs and expenses incurred in safeguarding, preserving and forwarding the property, as well as costs and expenses in respect of general average, sue and labor, salvage, and expenses incurred in the removal of debris or wreck even if incurred solely as the result of Governmental Direction or other authoritative order. 6. As respects insuring agreement 2 (b), expenses incurred to bring a Well that is Out of Control Under Control and notwithstanding the definition of Under Control, costs and expenses incurred as required by applicable law or governmental regulation or Governmental Direction to control the Well(s). These expenses include, but are not limited to, the value of materials and supplies consumed in the operation, rental of equipment, fees of individuals, firms, or corporations specializing in firefighting and/or the control of such Well(s), cost of drilling direction relief Well(s) necessary to bring the Well(s) Under Control or to extinguish the fire (including the cost of abandonment of any such relief Well(s), provided such ▇▇▇▇▇ are not used for production) and, in any instance where a replacement Well(s) is drilled, the costs of abandonment of the original Well(s). This shall further include any expenses incurred in respect of fighting a fire endangering or involving property insured hereunder. 7. As respects insuring agreement 3, shall (but only to the extent approved in the specific case by the Named Insured) include sum or sums for which any director, officer or employee of any Assured may be legally liable for actions within the scope of his authority for such entity. 8. As respects insuring agreement 3, shall include: (a) reasonable and necessary legal expenses and costs incurred in defending and/or investigating covered claims arising from an Occurrence covered under such insuring agreement 3 (including premiums on bonds to release attachments and premiums on appeal bonds), and (b) reasonable and necessary expenses incurred, liability to any governmental authority or agency or instrumentality thereof or regulatory authority for clean-up and removal costs and expenses, or liability for costs and expenses of governmental or governmental agency or regulatory authority action, in each case to the extent reasonable and necessary to minimize or remediate, or prevent further injuries to persons or loss or damage to property (other than property insured or which could bebe insured, but for any of the exclusions contained in this policy, insured under insuring agreement 1) from an Occurrence that has taken place and is covered under insuring agreement 3, and (c) any other liability to any governmental authority or agency or instrumentality thereof or regulatory authority resulting from an Occurrence that has taken place and is covered under such insuring agreement 3, but shall not include costs or expenses, or liability in respect thereof, as respects work, equipment or other measures taken to prevent or minimize personal injury or bodily injury, including death, or loss of, loss of use of or damage to property of any kind or description from ongoing operations (as contrasted with past operations, whether or not at the site or facility) of the Assured.

Valuation and Basis of Recovery. The quantum of a loss hereunder reinsured by this policy shall be determined as follows: 1. As respects tangible property insured reinsured under insuring reinsuring agreement 1, other than inventories, materials and supplies: (a) if the property is repaired or replaced in kind and at the original site, the basis of valuation will be the Replacement Cost, (b) if the property is repaired other than in kind or is replaced at another site the basis of valuation will be the lesser of the Replacement Cost or the estimated Replacement Cost in kind at the original site at the time of the Occurrence, (c) if one or more of the following applies: (i) the Assured notifies the Underwriter in writing that the property will not be repaired or replaced; (ii) the work of repair or replacement does not commence within twenty four (24) months of the Date of Discovery; (iii) the work of repair or replacement is not completed within a reasonable time; then, unless mutually agreed in writing between the Underwriter and the Assured, the basis of valuation will be Depreciated Cost. Loss as determined under this condition shall not include any increased cost of expediting repair or replacement or Betterment. 2. As respects inventories (including crude petroleum or finished petroleum products), materials or supplies (including materials in process) insured reinsured under insuring reinsurance agreement 1, including such items while in transit shall be valued at Replacement Cost of like kind and quality, at the place and at the time of loss (including all cost and duty if applicable). 3. As respects all records and documents, including but not limited to accounts and other data and manuscripts, mechanical drawings insured reinsured under insuring reinsuring agreement 1, at value blank plus cost of transcribing. 4. As respects insuring reinsurance agreement 1, shall exclude historical, rare, fine arts, artistic, aesthetic and similar non-utility values. 5. As respects insuring reinsurance agreements 1 and 2 shall include costs and expenses incurred in safeguarding, preserving and forwarding the property, as well as costs and expenses in respect of general average, sue and labor, salvage, and expenses incurred in the removal of debris or wreck even if incurred solely as the result of Governmental Direction or other authoritative order. 6. As respects insuring reinsurance agreement 2 (b), expenses incurred to bring a Well that is Out of Control Under Control and notwithstanding the definition of Under Control, costs and expenses incurred as required by applicable law or governmental regulation or Governmental Direction to control the Well(s). These expenses include, but are not limited to, the value of materials and supplies consumed in the operation, rental of equipment, fees of individuals, firms, or corporations specializing in firefighting and/or the control of such Well(s), cost of drilling direction relief Well(s) necessary to bring the Well(s) Under Control or to extinguish the fire (including the cost of abandonment of any such relief Well(s), provided such ▇▇▇▇▇ are not used for production) and, in any instance where a replacement Well(s) is drilled, the costs of abandonment of the original Well(s). This shall further include any expenses incurred in respect of fighting a fire endangering or involving property insured hereunder. 7. As respects insuring reinsurance agreement 3, shall (but only to the extent approved in the specific case by the Named Insured) include sum or sums for which any director, officer or employee of any Assured may be legally liable for actions within the scope of his authority for such entity. 8. As respects insuring reinsurance agreement 3, shall include: (a) reasonable and necessary legal expenses and costs incurred in defending and/or investigating covered claims arising from an Occurrence covered under such insuring reinsurance agreement 3 (including premiums on bonds to release attachments and premiums on appeal bonds), and (b) reasonable and necessary expenses incurred, liability to any governmental authority or agency or instrumentality thereof or regulatory authority for clean-up and removal costs and expenses, or liability for costs and expenses of governmental or governmental agency or regulatory authority action, in each case to the extent reasonable and necessary to minimize or remediate, or prevent further injuries to persons or loss or damage to property (other than property insured or which could be, but for any of the exclusions contained in this policy, insured under insuring reinsurance agreement 1) from an Occurrence that has taken place and is covered under insuring reinsurance agreement 3, and (c) any other liability to any governmental authority or agency or instrumentality thereof or regulatory authority resulting from an Occurrence that has taken place and is covered under such insuring agreement 3, but shall not include costs or expenses, or liability in respect thereof, as respects work, equipment or other measures taken to prevent or minimize personal injury or bodily injury, including death, or loss of, loss of use of or damage to property of any kind or description from ongoing operations (as contrasted with past operations, whether or not at the site or facility) of the Assured.

Valuation and Basis of Recovery. The quantum of a loss hereunder shall be determined as follows: 1. As respects tangible property insured under insuring agreement 1, other than inventories, materials and supplies: (a) if the property is repaired or replaced in kind and at the original site, the basis of valuation will be the Replacement Cost, (b) if the property is repaired other than in kind or is replaced at another site the basis of valuation will be the lesser of the Replacement Cost or the estimated Replacement Cost in kind at the original site at the time of the Occurrence, (c) if one or more of the following applies: (i) the Assured notifies the Underwriter in writing that the property will not be repaired or replaced; (ii) the work of repair or replacement does not commence within twenty four (24) months of the Date of Discovery; (iii) the work of repair or replacement is not completed within a reasonable time; then, unless mutually agreed in writing between the Underwriter and the Assured, the basis of valuation will be Depreciated Cost. Loss as determined under this condition shall not include any increased cost of expediting repair or replacement or Betterment. 2. As respects inventories (including crude petroleum or finished petroleum products), materials or supplies (including materials in process) insured under insuring agreement 1, including such items while in transit shall be valued at Replacement Cost of like kind and quality, at the place and at the time of loss (including all cost and duty if applicable). 3. As respects all records and documents, including but not limited to accounts and other data and manuscripts, mechanical drawings insured under insuring agreement 1, at value blank plus cost of transcribing. 4. As respects insuring agreement 1, shall exclude historical, rare, fine arts, artistic, aesthetic and similar non-utility values. 5. As respects insuring agreements 1 and 2 shall include costs and expenses incurred in safeguarding, preserving and forwarding the property, as well as costs and expenses in respect of general average, sue and labor, salvage, and expenses incurred in the removal of debris or wreck even if incurred solely as the result of Governmental Direction or other authoritative order. 6. As respects insuring agreement 2 (b), expenses incurred to bring a Well that is Out of Control Under Control and notwithstanding the definition of Under Control, costs and expenses incurred as required by applicable law or governmental regulation or Governmental Direction to control the Well(s). These expenses include, but are not limited to, the value of materials and supplies consumed in the operation, rental of equipment, fees of individuals, firms, or corporations specializing in firefighting and/or the control of such Well(s), cost of drilling direction relief Well(s) necessary to bring the Well(s) Under Control or to extinguish the fire (including the cost of abandonment of any such relief Well(s), provided such ▇▇▇▇▇ are not used for production) and, in any instance where a replacement Well(s) is drilled, the costs of abandonment of the original Well(s). This shall further include any expenses incurred in respect of fighting a fire endangering or involving property insured hereunder. 7. As respects insuring agreement 3, shall (but only to the extent approved in the specific case by the Named Insured) include sum or sums for which any director, officer or employee of any Assured may be legally liable for actions within the scope of his authority for such entity. 8. As respects insuring agreement 3, shall include: (a) reasonable and necessary legal expenses and costs incurred in defending and/or investigating covered claims arising from an Occurrence covered under such insuring agreement 3 (including premiums on bonds to release attachments and premiums on appeal bonds), and (b) reasonable and necessary expenses incurred, liability to any governmental authority or agency or instrumentality thereof or regulatory authority for clean-up and removal costs and expenses, or liability for costs and expenses of governmental or governmental agency or regulatory authority action, in each case to the extent reasonable and necessary to minimize or remediate, or prevent further injuries to persons or loss or damage to property (other than property insured or which could be, but for any of the exclusions contained in this policy, insured under insuring agreement agreement 1) from an Occurrence that has taken place and is covered under insuring agreement 3, and (c) any other liability to any governmental authority or agency or instrumentality thereof or regulatory authority resulting from an Occurrence that has taken place and is covered under such insuring agreement 3, but shall not include costs or expenses, or liability in respect thereof, as respects work, equipment or other measures taken to prevent or minimize personal injury or bodily injury, including death, or loss of, loss of use of or damage to property of any kind or description from ongoing operations (as contrasted with past operations, whether or not at the site or facility) of the Assured.