2023 Texas Statutes › Civil Practice and Remedies Code › Title 6 - Miscellaneous Provisions › Chapter 127 - Indemnity Provisions in Certain Mineral Agreements › Section 127.001. Definitions

Sec. 127.001.  DEFINITIONS.  In this chapter:
(1)  "Agreement pertaining to a well for oil, gas, or water or to a mine for a mineral":
(A)  means:
(i)   a written or oral agreement or understanding concerning the rendering of well or mine services;  or
(ii)   an agreement to perform a part of those services or an act collateral to those services, including furnishing or renting equipment, incidental transportation, or other goods and services furnished in connection with the services;  but
(B)  does not include a joint operating agreement.
(2)  "Joint operating agreement" means an agreement between or among holders of working interests or operating rights for the joint exploration, development, operation, or production of minerals.
(3)  "Mutual indemnity obligation" means an indemnity obligation in an agreement pertaining to a well for oil, gas, or water or to a mine for a mineral in which the parties agree to indemnify each other and each other's contractors and their employees against loss, liability, or damages arising in connection with bodily injury, death, and damage to property of the respective employees, contractors or their employees, and invitees of each party arising out of or resulting from the performance of the agreement.
(4)  "Well or mine service":
(A)  includes:
(i)   drilling, deepening, reworking, repairing, improving, testing, treating, perforating, acidizing, logging, conditioning, purchasing, gathering, storing, or transporting oil, brine water, fresh water, produced water, condensate, petroleum products, or other liquid commodities, or otherwise rendering services in connection with a well drilled to produce or dispose of oil, gas, other minerals or water;  and
(ii)   designing, excavating, constructing, improving, or otherwise rendering services in connection with a mine shaft, drift, or other structure intended for use in exploring for or producing a mineral;  but
(B)  does not include:
(i)  purchasing, selling, gathering, storing, or transporting gas or natural gas liquids by pipeline or fixed associated facilities;  or
(ii)  construction, maintenance, or repair of oil, natural gas liquids, or gas pipelines or fixed associated facilities.
(5)  "Wild well" means a well from which the escape of oil or gas is not intended and cannot be controlled by equipment used in normal drilling practice.
(6)  "Unilateral indemnity obligation" means an indemnity obligation in an agreement pertaining to a well for oil, gas, or water or to a mine for a mineral in which one of the parties as indemnitor agrees to indemnify the other party as indemnitee with respect to claims for personal injury or death to the indemnitor's employees or agents or to the employees or agents of the indemnitor's contractors but in which the indemnitee does not make a reciprocal indemnity to the indemnitor.
Acts 1985, 69th Leg., ch. 959, Sec. 1, eff. Sept. 1, 1985.  Amended by Acts 1989, 71st Leg., ch. 1102, Sec. 1, eff. Sept. 1, 1989;  Acts 1991, 72nd Leg., ch. 36, Sec. 1, eff. April 19, 1991.