State Oilfield Anti-Indemnity Statutes May Null Contracts
February 13, 2014, 1:07 PM EST
Law360, New York (February 13, 2014, 1:07 PM EST) -- Indemnity provisions are a common feature of many a contract in Texas, and oilfield services contracts are no exception. Four oil-producing states, including Texas, have felt it necessary to enact statutory provisions that limit the scope of these indemnity provisions. In particular, these statutes will, at times, render unenforceable an indemnification provision that purports to require indemnification for the indemnitee’s own negligence.
These anti-indemnity statutes originate from the perceived bargaining inequities between the oil-well operators and the generally smaller oilfield services contractors. Because, at least historically, the...