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§ 127.001.Definitions

Title 6. Miscellaneous Provisions · Chapter 127. Indemnity Provisions in Certain Mineral Agreements · Last amended 1991 · Last verified August 29, 2026

In one sentenceSection 127.001 defines the oilfield agreements the chapter reaches, the mutual and unilateral indemnity obligations it distinguishes, and excludes joint operating agreements.

Full Text of § 127.001

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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.
End

Plain-English Summary

Six definitions, and three of them decide whether a contract is inside or outside the chapter.

An "agreement pertaining to a well for oil, gas, or water or to a mine for a mineral" means a written or oral agreement or understanding concerning the rendering of well or mine services, or an agreement to perform part of those services or an act collateral to them, including furnishing or renting equipment, incidental transportation, or other goods and servicesbut does not include a joint operating agreement.

"Oral" is worth noticing. An unwritten understanding is within the chapter, so a handshake arrangement is not outside it.

The joint operating agreement exclusion is the chapter’s largest carve-out, and it is defined as an agreement between or among holders of working interests or operating rights for the joint exploration, development, operation, or production of minerals — parties sharing a venture rather than one hiring another.

"Well or mine service" is defined by a long inclusive list covering drilling, deepening, reworking, repairing, testing, treating, perforating, acidizing, logging, conditioning and the handling of produced liquids, plus designing, excavating, constructing or improving a mine shaft, drift or other structure.

Two things are expressly outside it: purchasing, selling, gathering, storing, or transporting gas or natural gas liquids by pipeline or fixed associated facilities, and construction, maintenance, or repair of those pipelines or facilities. Midstream work is not oilfield service for this chapter.

The two indemnity definitions set up the insurance section. A mutual indemnity obligation is one where the parties agree to indemnify each other and each other’s contractors, employees and invitees. A unilateral indemnity obligation is one where the indemnitee does not make a reciprocal indemnity.

"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 — a blowout, in the exclusions section’s terms.

Frequently Asked Questions

What agreements does the chapter cover?

Written or oral agreements concerning well or mine services, and collateral acts such as furnishing equipment — but not joint operating agreements.

Is pipeline work covered?

No. Gathering, storing or transporting gas by pipeline, and construction or repair of pipelines and fixed facilities, are excluded from well or mine service.

What is the difference between mutual and unilateral indemnity?

In a mutual obligation each party indemnifies the other; in a unilateral one only the indemnitor gives an indemnity.

Amendment History

  • 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.
Source & verification. Section text is reproduced verbatim from Texas Legislature Online (statutes.capitol.texas.gov). Enacted by the Texas Legislature. Current through May 14, 2026. Last verified August 29, 2026. · Official source