Texas Civil Practice and Remedies Code 127.002 – Findings; Certain Agreements Against Public Policy
Current as of: 2024 | Check for updates
|
Other versions
(a) The legislature finds that an inequity is fostered on certain contractors by the indemnity provisions in certain agreements pertaining to wells for oil, gas, or water or to mines for other minerals.
(b) Certain agreements that provide for indemnification of a negligent indemnitee are against the public policy of this state.
Terms Used In Texas Civil Practice and Remedies Code 127.002
- Indemnification: In general, a collateral contract or assurance under which one person agrees to secure another person against either anticipated financial losses or potential adverse legal consequences. Source: FDIC
- Written: includes any representation of words, letters, symbols, or figures. See Texas Government Code 311.005
(c) The legislature finds that joint operating agreement provisions for the sharing of costs or losses arising from joint activities, including costs or losses attributable to the negligent acts or omissions of any party conducting the joint activity:
(1) are commonly understood, accepted, and desired by the parties to joint operating agreements;
(2) encourage mineral development;
(3) are not against the public policy of this state; and
(4) are enforceable unless those costs or losses are expressly excluded by written agreement.