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TERMS OF SERVICE


These Terms of Service govern all drilling, exploration, construction, and consultancy projects undertaken by STS Drilling and Exploration Limited (“the Company”). By engaging the Company, the client (“the Client”) agrees to the following terms.

  1. Borehole Guarantee – Structural Defects Only

    The Company guarantees the structural integrity of the borehole for a period of six (6) months from the date of drilling completion. This guarantee applies exclusively to defects in casing, grouting, and borehole wall stability caused by faulty workmanship or materials. It does not cover:

    • Reduction in water yield or quality
    • Pump or equipment failures
    • Damage from natural events, ground movement, or Client interference
    • Normal wear and tear

  2. Site Access Responsibility

    The Client must ensure that the drilling rig, support vehicles, and equipment can safely access the site without obstruction. This includes clearing roads, providing sufficient turning space, and obtaining any necessary landowner or authority permissions. Any delays or additional mobilization costs due to poor access shall be borne by the Client.

  3. No Guarantee of Water Presence, Yield, or Quality

    The Company does not guarantee the presence of water, the borehole yield, or the potability or chemical quality of water encountered. All hydrogeological assessments are estimates only. The Client acknowledges that subsurface conditions are inherently unpredictable.

  4. Right to Determine Casing Quantity

    Based on real-time geological conditions (e.g., collapsing formations, rock layers, water strikes), the Company reserves the sole right to determine the quantity, type, and depth of casing required. The Client will be informed of any changes from the initial proposal and charged accordingly.

  5. Right to Stop Drilling

    The Company may immediately cease drilling operations if, in its professional opinion, geological conditions become unsafe, unproductive, or technically impossible (e.g., severe cavity zones, artesian pressures, toxic gases). The Client shall pay for all work and materials up to that point.

  6. Client Obligation - Campsite & Facilities

    If the project site is remote or requires extended operations, the Client must allow the Company to establish a temporary campsite (e.g., for crew accommodation, equipment storage). The Client shall provide:

    • Access to clean water for drilling, mixing mud, and crew use
    • Basic sanitation or allowance for portable facilities
    • Security for equipment overnight, where feasible

    Failure to provide these may result in mobilization delays or additional charges.

  7. No Liability for Post-Drilling Yield or Quality Decline

    After successful drilling and completion (casing, screen installation, development), the Company bears no liability for any subsequent:

    • Decrease in borehole yield due to seasonal fluctuations, over-pumping, or nearby extraction
    • Deterioration in water quality from aquifer contamination, saltwater intrusion, or bacterial growth
    • Sand pumping or siltation due to improper pump installation by third parties

  1. Geophysical Investigation - Third-Party & No Guarantee

    Geophysical surveys (e.g., resistivity, VES, TEM) for borehole siting will be conducted by an independent third-party contractor selected by the Company or the Client. The Company does not guarantee that the recommended drilling point will yield water, as geophysical methods indicate subsurface structures only. Any survey costs are borne by the Client regardless of drilling success.

  2. Old Borehole Flushing - No Guarantee

    The Company may attempt to flush or rehabilitate existing boreholes using airlifting, surging, or chemical treatments. However, the Company provides no guarantee of success due to unknown prior damage, encrustation, or collapsed casing. The Client will be charged for time and materials regardless of outcome.

  3. PAYMENT TERMS
    • A mobilization fee (minimum 30% of quoted total) is due before equipment moves to site. However, for domestic boreholes, 100% upfront payment will be required.
    • Interim invoices may be issued for casing, pumps, or third-party services.
    • Final balance is due within 14 days of borehole completion or rig demobilization, whichever occurs first.
    • Late payments incur interest at 2% per month or the maximum legal rate.
    • The Company retains ownership of all equipment until full payment is received.
  4. Change Orders & Unforeseen Conditions

    Any changes to scope (e.g., deeper drilling, extra casing, pump upgrades) must be agreed in writing as a change order. Unforeseen conditions (e.g., hard rock requiring specialized bits, lost circulation zones, abandoned wells) will incur additional charges at standard rates.

  5. Force Majeure

    The Company is not liable for delays or failure to perform due to causes beyond reasonable control, including but not limited to: extreme weather, floods, lightning, road closures, civil unrest, strikes, or government orders.

  6. Indemnification & Limitation of Liability

    The Client indemnifies the Company against claims arising from:

    • Injury to the Client's personnel or site visitors
    • Damage to underground utilities (unless marked prior to drilling)
    • Environmental contamination caused by the Client's subsequent use of the borehole
    • The Company's total liability for any claim shall not exceed the amount paid by the Client for the specific service provided.

  7. Governing Law & Dispute Resolution

    These Terms are governed by the laws of Zambia. Any dispute shall first be attempted to be resolved through good-faith negotiation. If unresolved, the matter shall be submitted to arbitration in Lusaka under the Zambia Institute of Arbitration rules.

  8. Acceptance

    By signing a work order, making a down payment, or permitting the Company to access the site, the Client acknowledges having read, understood, and agreed to these Terms of Service.

STS DRILLING & EXPLORARION LTD - 01/01/2026

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