Terms Used In Texas Natural Resources Code 123.003

  • Contract: A legal written agreement that becomes binding when signed.
  • Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005
  • Tort: A civil wrong or breach of a duty to another person, as outlined by law. A very common tort is negligent operation of a motor vehicle that results in property damage and personal injury in an automobile accident.
  • Written: includes any representation of words, letters, symbols, or figures. See Texas Government Code 311.005

Unless otherwise provided by a contract or other written agreement, a person who generates drill cuttings and transfers the drill cuttings in an arm’s length transaction to an unaffiliated third-party permit holder under a contract that requires that the drill cuttings be used in connection with road building or another beneficial use or disposed of is not liable in tort for a consequence of the subsequent use or disposal of the drill cuttings by the permit holder or by another person if:
(1) the person who generates the drill cuttings has the legal and contractual right to transfer the drill cuttings to the permit holder;
(2) the method and location of the use or disposal are not prohibited by law, contract, or other written agreement; and
(3) the consequence was caused solely by the permit holder.