1-1 By: Sadler (Senate Sponsor - Nixon) H.B. No. 1496
1-2 (In the Senate - Received from the House May 15, 1995;
1-3 May 16, 1995, read first time and referred to Committee on Natural
1-4 Resources; May 25, 1995, reported favorably by the following vote:
1-5 Yeas 8, Nays 0; May 25, 1995, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to indemnity provisions in certain mineral agreements.
1-9 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-10 SECTION 1. Section 127.005(a), Civil Practice and Remedies
1-11 Code, is amended to read as follows:
1-12 (a) This <Except as to agreements with respect to the
1-13 purchase, gathering, storage, or transportation of oil, brine
1-14 water, fresh water, condensate, produced water, petroleum products,
1-15 or other liquid commodities, this> chapter does not apply to an
1-16 agreement that provides for indemnity if the parties agree in
1-17 writing that the indemnity obligation will be supported by
1-18 liability insurance coverage to be furnished by the indemnitor
1-19 subject to the limitations specified in Subsection (b) or (c).
1-20 SECTION 2. This Act applies only to an agreement that
1-21 provides for indemnity entered into on or after the effective date
1-22 of this Act.
1-23 SECTION 3. The importance of this legislation and the
1-24 crowded condition of the calendars in both houses create an
1-25 emergency and an imperative public necessity that the
1-26 constitutional rule requiring bills to be read on three several
1-27 days in each house be suspended, and this rule is hereby suspended,
1-28 and that this Act take effect and be in force from and after its
1-29 passage, and it is so enacted.
1-30 * * * * *