Daywork Drilling Contract Law and Legal Definition

In relation to Oil & Gas law, a daywork drilling contract is one in which the lease operator hires a drilling rig and oilfield workers and retains the right to direct drilling operations. The lease operator pays an amount based on the time spent in drilling operations. This type of contract gives the lease operator broad control over the drilling contractor. As a result, courts impose broad liability on the lease operator for any damages caused due to the drilling.