Opinion ID: 65002
Heading Depth: 3
Heading Rank: 2

Heading: Rowan/HES Agreement

Text: The Rowan/HES Agreement was executed by Rowan and HES on August 26, 2003. Era was not a signatory to the Rowan/HES Agreement, but the provisions of the agreement inure to the benefit of Rowan's subsidiary and affiliated companies. The four introductory paragraphs of the agreement establish the intent of the agreement. WHEREAS, Contractor [HES] is engaged in the business of supplying goods or services to customers having onshore and offshore operations relating to the exploration and production of oil and gas; WHEREAS, Company [Rowan] is engaged in the business of supplying goods or services to such customers utilizing equipment and property owned by or under the management of Company [Rowan] or its subsidiary or affiliated companies (the Company's Property); WHEREAS, Contractor's [HES] personnel or property are from time to time located near or placed on Company's Property under circumstances in which Company [Rowan] has not hired Contractor [HES] but Contractor [HES] and Company [Rowan] are providing goods or services to the same customer in connection with a project; and WHEREAS, Contractor [HES] and Company [Rowan] hereby wish to apportion their respective liabilities and responsibilities under such circumstances. The agreement then defines the scope of the indemnity obligation as follows: [2] (a) The parties [Rowan and HES] expressly intend and agree that the phrase be responsible for and hold harmless and indemnify, as used in this agreement, shall mean that the indemnifying party shall release, indemnify, hold harmless and defend the indemnified party from and against any and all claims, demands, fines, penalties, causes of action, damages, attorney's fees, cost of litigation, court costs, judgments and awards of any kind or character (collectively referred to hereinafter as the claims), without limit and without regard to the cause or causes thereof, including pre-existing conditions, defect or ruin of premises ..., the unseaworthiness of any vessel or vessels ..., the ownership, possession, management, maintenance, supply, operation (including but not limited to ingress, egress, loading and unloading operations) or navigation of any vessel, breach of representation or warranty ..., breach of duty (whether statutory, contractual or otherwise), strict liability, tort, breach of contract (including any claims which arise by reason of indemnification or assumption of liability contained in other contracts entered into between an indemnified party and a third party), fault, regulatory or statutory liability, the negligence of any person or persons, including that of an indemnified party, whether such negligence be sole, joint or concurrent, active, passive or gross, or any other theory of legal liability. The agreement then details each party's respective indemnity obligation. Regarding HES's obligation, the agreement provides as follows: [3] Contractor [HES] shall at all times be responsible for and hold harmless and indemnify company [Rowan] from and against all claims arising in connection herewith in favor of contractor, its parents, subsidiary and affiliated companies, each of their respective officers, directors and employees, each of their respective officers, directors and employees, and any legal representative, heir or survivor of any of the forgoing (... collectively referred to as the Contractor's Group) on account of illness, injury, or death of contractor's group or damage to or loss of property owned, rented or provided by Contractor's Group.... The agreement also required Rowan and HES to maintain four types of insurance: comprehensive general liability (including contractual coverage), comprehensive automobile liability, workers' compensation and employer's liability, and excess insurance. Regarding the interplay between the indemnity provisions and the insurance provisions, the agreement provides that [n]otwithstanding any other provisions of this Agreement to the contrary, the parties hereby acknowledge and agree that the indemnity obligations and the insurance obligations set forth herein are separate and distinct duties under this Agreement. The parties further acknowledge and agree that the indemnity provisions of this Agreement shall not limit, restrict or alter the obligations of this Agreement, even if one or more of the indemnity provisions are held by a court to be unenforceable.