how important is the indemnity clause when negotiating a mineral lease? is it something the landowner must absolutely insist upon, or is it of minor importance? what are possible negative outcomes if it is not included?
A necessity and a standard feature of negotiated leases in Texas. Indemnities do not get you off the hook for liability, but they give you the right to force the operator to pay for it. Attorney’s fees are a major expense in defending a claim, so if you can get the operator to agree to pay defense costs also, you should.
I have been presented with a division order for my leases. I believe I am in the opposite position as the Indemnity reads
The owner agrees to indemnify and hold payor harmless from any liability resulting from payment made to the owner in accordance with such interest, including but not limited to attorney fees or judgments in connection with any suit that affects the owner's interest to which payor is made a party.
Should I sign that?
Perhaps consider this comment in which a state form is mentioned. Sorry, but I do not have a link to the form. http://www.mineralrightsforum.com/forum/topics/division-order-terms?commentId=4401368%3AComment%3A449449