HBA-JEK, NRS H.B. 1047 77(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 1047 By: Cook Civil Practices 88/15/2001 Enrolled BACKGROUND AND PURPOSE The San Miguel Electric Cooperative (cooperative) operates a lignite-burning electricity plant in Jourdanton, Texas. The cooperative has a contract with a large mining contractor to provide lignite from a surface mine for use in the generating plant. In accordance with current law, the two entities have an agreement whereby the mining company indemnified the cooperative for accidents and injuries at the surface mine. Though current law regarding indemnity in certain mineral agreements was originally created to protect small contractors in the oil and gas industry, the San Miguel Electric Cooperative is a smaller operator than the lignite miner. House Bill 1047 exempts an electric cooperative corporation from the provisions regarding indemnity in certain mineral agreements. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS House Bill 1047 amends the Civil Practice and Remedies Code to provide that indemnity provisions in certain mineral agreements do not affect the right of an electric cooperative corporation that owns or leases real property to mine lignite using open pit surface mining methods to secure indemnity from a lessee, operator, contractor, or other person who performs services for or provides materials or products to the corporation that relate to lignite mining. EFFECTIVE DATE Vetoed.