In True Oil Co. v. Mid-Continent Cas. Co., No. 05-8028, 2006 WL 7287752 (10th Cir. Mar. 23, 2006), the Tenth Circuit Court of Appeals ruled that parties did not have a valid insured contract within the meaning of a CGL policy.

True Oil owned and operated gas and oil wells and contracted with Pennant Service Company to perform work on one of its wells. The parties executed a service contract, which included an indemnity provision under which Pennant agreed to indemnify and hold True Oil harmless for its negligence in performing its operations. Pennant was also required by the agreement to name True Oil as an additional insured on its CGL policy.