In the insurance dispute involving damages caused by the rupture of an oil well in Jackson County, the coverage battle originally pitted the oil and gas company Miramar Petroleum Inc., against two insurance companies, First Liberty Insurance Corporation and Commerce and Industry Insurance Company.

However, in a new twist in the case, the presiding judge in the case, U.S. District Judge Nancy F. Atlas, recently granted the motion for summary judgment filed by Commerce and determined that Miramar agreed with Commerce's assertion that it does not have a claim under the umbrella policy.

Miramar is an exploration and production company that leased the mineral rights to property near the Texas Gulf coast in Jackson County in order to drill an oil well. According to Commerce's motion for summary judgment, on March 6, 2013, Miramar and Nicklos entered into a drilling bid proposal and day work drilling contract under which Nicklos agreed to drill the Sartwelle #1 well in Jackson County. The drilling contract contained indemnity provisions and provided that the parties would procure “commercial (or comprehensive) general liability insurance” with a policy limit of $1,000,000. It did not require umbrella insurance or liability coverage in excess of $1,000,000.