When there is an accident in the oil patch resulting in personal injury, there are typically two resulting suits: one brought by the person who is injured, and another between his employer and a third-party whose negligence or fault is the alleged cause of the accident and injury. This second suit typically revolves around contractual indemnities and defense obligations.

It is not uncommon for parties in the oil and gas industry to enter into written agreements, including Master Service Agreements (“MSAs”) that spell out these obligations and contain a Texas choice-of-law provision. This can be irrespective of the parties’ relationship to Texas and the place where operations are contemplated, and are put in place as a means to bypass another state’s more restrictive anti-indemnity act or statute.

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