Full Opinion

In the Court of Appeals Second Appellate District of Texas at Fort Worth ___________________________ No. 02-25-00214-CV ___________________________ URBAN FUND III, LP AND URBAN OIL AND GAS PARTNERS C-1, LP, Appellants V. BLACKBEARD OPERATING EAST, LLC; BLACKBEARD RESOURCES, LLC; LEGACY RESERVES OPERATING LP; LEGACY RESERVES, LP; REVENIR ENERGY INC. F/K/A LEGACY RESERVES INC.; MARATHON OIL COMPANY; MARATHON OIL (EAST TEXAS) LP; OXY USA, INC.; KERR- MCGEE OIL & GAS ONSHORE LP, IN ITS OWN CAPACITY AND AS SUCCESSOR TO SUN EXPLORATION AND PRODUCTION COMPANY, Appellees On Appeal from the 17th District Court Tarrant County, Texas Trial Court No. 017-337372-22 Before Sudderth C.J.; Kerr and Womack, JJ. Memorandum Opinion by Justice Womack MEMORANDUM OPINION I. INTRODUCTION This appeal centers around certain oil and gas properties and leases in Louisiana (the Louisiana Assets). Over the last few decades, the Louisiana Assets have changed hands many times, with the most recent purchaser being Appellants Urban Fund III, LP and Urban Oil and Gas Partners C-1, LP (collectively, Urban). Urban acquired the Louisiana Assets from Appellees Blackbeard Operating East, LLC and Blackbeard Resources, LLC (collectively, Blackbeard). Blackbeard’s predecessors to the Louisiana Assets—a group we will collectively refer to as the Up-Chain Defendants—consist of Appellees Legacy Reserves Operating LP; Legacy Reserves, LP; Revenir Energy Inc. f/k/a Legacy Reserves Inc.;1 Marathon Oil Company; Marathon Oil (East Texas) LP;2 Oxy USA, Inc.; and Kerr-McGee Oil & Gas Onshore LP, in its own capacity and as successor to Sun Exploration and Production Company. Beginning in 2018, certain landowners in Louisiana filed several environmental lawsuits (the Louisiana Lawsuits) against Urban, Blackbeard, and the Up-Chain Defendants alleging damages sustained from the exploration and production of oil and gas on the Louisiana Assets. The Up-Chain Defendants then tendered demands 1 We will collectively refer to Legacy Reserves Operating LP, Legacy Reserves, LP, and Revenir Energy Inc. f/k/a Legacy Reserves Inc. as Legacy. 2 We will collectively refer to Marathon Oil Company and Marathon Oil (East Texas) LP as Marathon. 2 for defense and indemnity down the chain. Those tenders were accepted all the way down the chain to Blackbeard, who then tendered its demand for defense and indemnity to Urban. While Urban accepted defense and indemnity for Blackbeard’s direct liability in the Louisiana Lawsuits, it refused to defend and indemnify Blackbeard for the amounts it had paid to defend and indemnify the Up-Chain Defendants. Urban later filed the underlying declaratory-judgment action seeking certain declarations regarding the various rights and obligations of the parties under the 2018 purchase-and-sale agreement governing Blackbeard’s sale of the Louisiana Assets to Urban (the Blackbeard–Urban PSA). Blackbeard and the Up-Chain Defendants answered and filed their own declaratory-judgment actions regarding Urban’s defense and indemnity obligations. All parties moved for summary judgment, and the trial court denied Urban’s motion; granted Blackbeard’s and the Up-Chain Defendants’ respective motions; awarded Blackbeard damages and attorney’s fees; and awarded the Up-Chain Defendants’ attorney’s fees. In three issues on appeal, Urban argues that (1) the Blackbeard–Urban PSA does not require it to provide defense and indemnity to the Up-Chain Defendants; (2) because Marathon’s indemnity claims against Legacy were discharged in Legacy’s 2019 bankruptcy case, any defense and indemnity obligations that Urban may owe to Marathon or its predecessors-in-interest have been extinguished; and (3) an anti- assignment clause in an amendment to the Marathon–Legacy PSA renders Legacy’s 3 purported attempt to transfer defense and indemnity obligations to Blackbeard—and Blackbeard’s purported attempt to transfer such obligations to Urban—void. Because we conclude (1) that the Blackbeard–Urban PSA requires Urban to defend and indemnify Blackbeard for all of its liabilities related to or associated with the conveyed oil-and-gas properties—including Blackbeard’s own defense and liability obligations to the Up-Chain Defendants; (2) that Marathon’s defense and indemnity claims were not discharged in Legacy’s bankruptcy case and that even if they had been discharged, Urban’s own obligations would be unaffected; and (3) that the anti-assignment provision in the amendment to the Marathon–Legacy PSA does not eliminate Urban’s obligations to defend and indemnify Blackbeard for its own obligations to defend and indemnify the Up-Chain Defendants, we affirm the trial court’s judgment. II. BACKGROUND A. Sun’s 1985 Sale to Marathon In 1985, Sun sold certain properties that were included within the Louisiana Assets to Marathon pursuant to a partial assignment and bill of sale (the Sun– Marathon PABOS). The Sun–Marathon PABOS contained an indemnification provision providing, in pertinent part, that [Marathon] hereby agrees to assume all responsibility for said wells . . . , and [Marathon] agrees to protect, defend, indemnify[,] and hold [Sun] and its employees free and harmless from and against any and all costs, expenses, claims, demands[,] and causes of action of every kind and character arising out of, incident to, or in connection with the above- described leases. 4 B. Oxy’s 1994 Sale to Marathon In 1994, Oxy sold other properties that were included within the Louisiana Assets to Marathon pursuant to a purchase-and-sale agreement (the Oxy–Marathon PSA). The Oxy–Marathon PSA contained the following indemnification provision: [Marathon] shall defend, indemnify[,] and hold harmless [Oxy] . . . from any and all losses, claims, demands, suits, damages, expenses, costs, causes of action[,] or judgments of any kind or character with respect to all liabilities and obligations or alleged or threatened liabilities and obligations, including claims for personal injury, illness, disease, wrongful death, damage to property, liability based on strict liability or condition of the Properties being assigned herein . . . , and claims . . . resulting from environmental damage or pollution which arise from, or are attributable to, the obligations assumed by [Marathon] herein, [Marathon’s] acts or omissions, [Oxy’s] acts or omissions with respect to the Properties, the ownership or operation of the Properties by [Oxy] or [Marathon] on or after the effective date, or which arise or are asserted with respect to the Properties on or after the effective date, or which are attributable to the ownership or operation of the Properties on or after the said effective date by [Oxy] or [Marathon] . . . . C. Marathon’s July 2015 Sale to Legacy In July 2015, Marathon sold the Louisiana Assets to Legacy pursuant to a purchase-and-sale agreement (the Marathon–Legacy PSA). The Marathon–Legacy PSA contained the following provision regarding Legacy’s assumption of Marathon’s liabilities: [Legacy] assumes and hereby agrees to fulfill, perform, pay, and discharge . . . all obligations and liabilities, known or unknown, with respect to the Assets, regardless of whether such obligations or liabilities arose prior to, on, or after the Effective Date, including obligations and liabilities relating in any manner to the Material Contracts or the condition, use, ownership, or operation of the Assets. 5 The Marathon–Legacy PSA also stated that Legacy would indemnify and defend Marathon against losses incurred or suffered by Marathon relating to or arising out of Legacy’s assumption of Marathon’s liabilities. D. Legacy’s August 2015 Sale to Blackbeard After it purchased the Louisiana Assets from Marathon, Legacy immediately conveyed them to its wholly owned subsidiary, Akin Beene Resources, LLC. Legacy then sold Akin Beene to Blackbeard through a membership-interest purchase-and-sale agreement (the Legacy–Blackbeard MIPSA). E. Blackbeard’s 2018 Sale to Urban In 2018, Blackbeard sold the Louisiana Assets to Urban pursuant to the Blackbeard–Urban PSA. The Blackbeard–Urban PSA contained a broad indemnification provision.3 F. Legacy’s Bankruptcy In June 2019, Legacy filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the Southern District of Texas. In its bankruptcy schedules, Legacy identified the Marathon–Legacy PSA as an executory contract. Legacy’s Chapter 11 plan provided that, unless given special treatment in the plan, “all [e]xecutory [c]ontracts or [u]nexpired [l]eases not otherwise assumed or rejected w[ould] be deemed assumed” as of the plan’s effective date. As 3 We will discuss the Blackbeard–Urban PSA and the specific terms of its indemnification provision in more detail later in the opinion, particularly during our discussion of Urban’s first issue. 6 part of the plan’s solicitation, Marathon received an assumption notice identifying the Marathon–Legacy PSA as an executory contract that would be assumed pursuant to the plan. In November 2019, the bankruptcy court confirmed Legacy’s Chapter 11 plan. In accordance with the plan’s terms, the confirmation order provided that—with certain exceptions that did not apply to the Marathon–Legacy PSA—all executory contracts were to be “assumed by the applicable [r]eorganized [d]ebtor” as of the plan’s effective date. The bankruptcy case was closed in December 2020.4 G. The Louisiana Lawsuits and the Tenders of Defense and Indemnity In 2018, the first of the Louisiana Lawsuits was filed. The plaintiffs in these lawsuits generally alleged that their property had been negligently contaminated or otherwise damaged by the defendants’ oil-and-gas exploration and production activities. In response to the Louisiana Lawsuits, Oxy and Kerr-McGee (Sun’s successor- in-interest) each tendered to Marathon a demand for indemnity and defense. Marathon, in turn, tendered a demand for indemnity and defense to Legacy. Legacy then tendered a demand for indemnity and defense to Blackbeard, who then tendered 4 In December 2022, Urban filed a motion to reopen Legacy’s bankruptcy case to obtain the bankruptcy court’s interpretation and enforcement of the Chapter 11 plan and the confirmation order. The bankruptcy court denied Urban’s motion based on its conclusion that Urban lacked standing. See generally In re Legacy Reserves Operating LP, No. 19-33401, 2023 WL 6797776 (Bankr. S.D. Tex. Oct. 13, 2023). 7 a demand to Urban. Blackbeard’s tender to Urban sought defense and indemnity not only for itself but also for all the Up-Chain Defendants. H. Procedural History In October 2022, Urban filed a declaratory-judgment action against Blackbeard in the trial court. Urban sought certain declarations concerning the various rights and obligations of the parties under the Blackbeard–Urban PSA. Blackbeard answered the lawsuit and filed a counterclaim seeking a declaratory judgment that Urban’s defense and indemnification obligations under the Blackbeard–Urban PSA included an obligation to defend and indemnify Blackbeard for its own defense and indemnity obligations owed to the Up-Chain Defendants and to assume the defense of the Louisiana Lawsuits on behalf of the Up-Chain Defendants. Blackbeard later amended its counterclaim to seek breach-of-contract damages relating to Urban’s indemnification obligations. Urban subsequently brought claims against the Up- Chain Defendants. The parties filed cross-motions for summary judgment. The trial court denied Urban’s motion for summary judgment, but it granted the motions of Blackbeard, Legacy, Marathon, Oxy, and Kerr-McGee (i.e., Sun). The trial court awarded Blackbeard damages in the amount of $1,220,909.70 for defending itself and the Up- Chain Defendants in the Louisiana Lawsuits, and it awarded Blackbeard $1,545,424.83 in attorney’s fees. The trial court also awarded attorney’s fees to Legacy, Marathon, Oxy, and Kerr-McGee. The trial court later signed an amended final judgment 8 incorporating its various summary-judgment rulings and awards of damages and fees. This appeal followed. III. DISCUSSION A. Standard of Review In determining the applicable standard of review for a declaratory-judgment ruling, we refer to the procedure that the trial court used to resolve the declaratory action. See Tex. Civ. Prac. & Rem. Code § 37.010; Zurich Am. Ins. Co. v. Burlington N. & Santa Fe Ry. Co., No. 02-23-00245-CV, 2025 WL 807496, at *5 (Tex. App.—Fort Worth Mar. 13, 2025, pet. filed) (mem. op.). Here, the parties moved for traditional summary judgment on the same claims, so we review the propriety of the trial court’s denial of Urban’s declaratory-judgment claims using the standard applicable for reviewing a traditional summary-judgment motion. See Zurich Am. Ins. Co., 2025 WL 807496, at *5. When both parties move for traditional summary judgment on the same claim, we review the cross-motions de novo. Rosetta Res. Operating, LP v. Martin, 645 S.W.3d 212, 218 (Tex. 2022); MVP Fort Worth Taylor, LLC v. Roy, No. 02-23-00060-CV, 2024 WL 3529432, at *5 (Tex. App.—Fort Worth July 25, 2024, no pet.) (mem. op.); see Healy Law Offs., P.C. v. Troutmen, No. 12-24-00350-CV, 2025 WL 3724365, at *3 (Tex. App.—Tyler Dec. 23, 2025, no pet.) (mem. op.). Each movant has the burden to show that no material fact issue exists and that it is entitled to judgment as a matter 9 of law. Tex. R. Civ. P. 166a(c);5 see Rosetta Res. Operating, 645 S.W.3d at 218. We will review each of the competing motions and responses, consider the evidence presented by the parties, determine all questions presented, and render the judgment the trial court should have rendered. Rosetta Res. Operating, 645 S.W.3d at 218; Nettye Engler Energy, LP v. BlueStone Nat. Res. II, LLC, 639 S.W.3d 682, 689 (Tex. 2022). When, as here, the trial court does not specify a basis for its order granting a party’s motion for summary judgment, we must affirm the order if there was any legal basis raised in the motion that supports the judgment. Rosetta Res. Operating, 645 S.W.3d at 226–28; Sana Healthcare Carrollton, LLC v. Metrocrest Hosp. Auth., No. 02- 25-00183-CV, 2026 WL 706437, at *6 (Tex. App.—Fort Worth Mar. 12, 2026, pet. denied) (mem. op.). B. Urban’s First Issue In its first issue, Urban contends that the Blackbeard–Urban PSA does not require it to provide defense and indemnity to Blackbeard for its defense of the Up- Chain Defendants. We disagree. 5 The Texas Supreme Court has amended Rule 166a. See Sup. Ct. of Tex., Final Approval of Amendments to Rule 166a of the Texas Rules of Civil Procedure, Misc. Docket No. 26-9012 (Feb. 27, 2026). But the “amendments apply only to a motion for summary judgment filed on or after March 1, 2026,” id., so they do not apply here. All citations to Rule 166a reference the prior version of the Rule, which continues to govern motions for summary judgment filed before March 1, 2026. 10 1. Applicable Rules of Construction We are to construe indemnity agreements under normal rules of contract construction. Gulf Ins. Co. v. Burns Motors, Inc., 22 S.W.3d 417, 423 (Tex. 2000); RKI Expl. & Prod., LLC v. Ameriflow Energy Servs., LLC, No. 02-20-00384-CV, 2022 WL 2252895, at *9 (Tex. App.—Fort Worth June 23, 2022, no pet.) (mem. op.). Our primary concern in interpreting a contract is to ascertain and give effect to the parties’ intent as it is expressed in the contract. Pathfinder Oil & Gas, Inc. v. Great W. Drilling, Ltd., 574 S.W.3d 882, 888 (Tex. 2019); Seagull Energy E & P, Inc. v. Eland Energy, Inc., 207 S.W.3d 342, 345 (Tex. 2006). To achieve this objective, “courts should examine and consider the entire writing in an effort to harmonize and give effect to all the provisions of the contract so that none will be rendered meaningless.” Valence Operating Co. v. Dorsett, 164 S.W.3d 656, 662 (Tex. 2005). We should “afford contract language its plain, grammatical, and ordinary meaning unless doing so ‘would clearly defeat the parties’ intentions’ or the instrument shows the parties used the terms in a different or technical sense.” Nettye Engler Energy, LP, 639 S.W.3d at 690 (quoting Barrow-Shaver Res. Co. v. Carrizo Oil & Gas, Inc., 590 S.W.3d 471, 479 (Tex. 2019)). 2. Analysis Application of the above-referenced construction rules to the Blackbeard– Urban PSA leads to the inexorable conclusion that Urban contractually agreed to defend and indemnify Blackbeard against all of Blackbeard’s obligations related to or 11 associated with the Louisiana Assets—including Blackbeard’s defense and indemnity obligations to the Up-Chain Defendants. Under the Blackbeard–Urban PSA, Urban agreed to assume and be responsible for, . . . pay on a current basis, and . . . defend[], indemnif[y], hold[] harmless[,] and forever release[] [Blackbeard] . . . from and against any and all Liabilities, whether or not relating to Third[-]Party Claims or incurred in the investigation or defense of any of the same . . . arising from, based upon, related to[,] or associated with . . . the Assumed Obligations. The agreement broadly defines “Liabilities” as any and all claims, obligations, causes of action, payments, charges, judgments, assessments, liabilities, losses, damages, penalties, fines, costs, and expenses, including any attorneys’ fees, legal or other expenses incurred in connection therewith, including liabilities, costs, losses and damages for personal injury, death, property damage, or environmental damage. And it defines “Assumed Obligations” as all obligations and Liabilities, known or unknown, arising from, based upon, related to[,] or associated with the Conveyed Interests, regardless of whether such obligations or Liabilities arose prior to, at[,] or after the Effective Time, other than any obligations or Liabilities to the extent that they are Retained Obligations. It is undisputed that the term “Conveyed Interests”—which includes oil-and-gas leases, the lands covered by those leases, and oil-and-gas wells—encompasses the properties at issue in the Louisiana Lawsuits. Thus, Urban agreed to “assume and be responsible for, . . . pay . . . , and . . . defend[], indemnif[y], hold[] harmless[,] and forever release[] [Blackbeard] . . . from and against any and all” “claims, obligations, causes of action, . . . liabilities, . . . 12 damages, . . . costs, and expenses” “arising from, based upon, related to[,] or associated with” the Conveyed Assets, “including any attorneys’ fees, legal [expenses,] or other expenses incurred in connection therewith, including liabilities [and] costs . . . for . . . environmental damage.” Under any reasonable interpretation of this broad, sweeping language, Blackbeard’s obligations to defend and indemnify the Up- Chain Defendants in connection with the Louisiana Lawsuits—which, at a minimum, are “related to or associated with” the Conveyed Assets—constitute Liabilities that Urban has agreed to “assume,” “be responsible for,” and “pay.” See Walgreens v. McKenzie, 713 S.W.3d 394, 400 (Tex. 2025) (characterizing “relates to” as “the broadest connective language”); Johnson v. Windsong Ranch Cmty. Ass’n, No. 02-23- 00385-CV, 2024 WL 725523, at *6 n.10 (Tex. App.—Fort Worth Feb. 22, 2024, no pet.) (mem. op.) (recognizing that the phrase “associated with” carries a “broad scope”). To avoid this seemingly inescapable conclusion, Urban relies upon two primary arguments. First, Urban argues that it has no duty to defend or indemnify the Up-Chain Defendants because the Blackbeard–Urban PSA’s language makes clear that “the only party . . . who is entitled to receive defense or indemnity from Urban is Blackbeard.” While Urban’s assertion that it owes defense and indemnity duties only to Blackbeard is correct as far as it goes,6 its party-focused argument misses the point. None of the 6 Section 13.3 of the Blackbeard–Urban PSA provides that Urban shall defend and indemnify Blackbeard “and its Affiliates, and all of its and their respective stockholders, partners, members, directors, officers, managers, employees, attorneys, 13 Up-Chain Defendants has sought defense or indemnity directly from Urban; rather, each entity in the Louisiana Assets’ chain of title has tendered its defense and indemnity demand to its immediate transferee. As Blackbeard is the only party seeking defense and indemnity from Urban, the fact that Urban does not owe any defense or indemnity duties directly to the Up-Chain Defendants is of no moment. Because Urban is obligated to defend and indemnify Blackbeard for its Liabilities related to or associated with the conveyed oil-and-gas properties—including Blackbeard’s own defense and liability obligations to the Up-Chain Defendants—and because Blackbeard, honoring its own defense and liability obligations, has paid the Up-Chain Defendants’ defense costs, Urban must reimburse Blackbeard for those defense costs.7 consultants, agents, and representatives.” And Section 15.11 clarifies that “[n]otwithstanding anything contained in [the Blackbeard–Urban PSA], nothing in th[e] [a]greement, expressed or implied, is intended to confer on any Person other than the Parties or their respective successors and assigns, or the Parties’ respective related Indemnified Parties hereunder any rights, remedies, obligations[,] or Liabilities under or by reason of th[e] [a]greement.” 7 Within the framework of its broader party-focused argument, Urban, relying on this court’s decision in Nabors Drilling USA, L.P. v. Encana Oil & Gas (USA), Inc., No. 02-12-00166-CV, 2013 WL 3488152 (Tex. App.—Fort Worth July 11, 2013, pet. denied) (mem. op.), contends that the Blackbeard–Urban PSA lacks sufficient language to make Urban liable for Blackbeard’s defense and indemnity obligations to the Up-Chain Defendants. But Nabors does not support this contention. In Nabors, we held that certain contractual claims brought by Encana’s subcontractors fell outside the scope of a narrow indemnification provision requiring Nabors to defend and indemnify Encana for any claims asserted by a Nabors employee for bodily injury. Id. at *3–5. In so holding, we noted that “[a] plain reading of the contracts d[id] not conclusively reveal an intention by the parties that extra-contractual liabilities . . . [could] be passed through” to Nabors and that “we [could not] expand 14 Second, Urban argues that it is not required to cover Blackbeard’s defense and indemnity obligations to the Up-Chain Defendants because they constitute “Retained Obligations” as that term is defined in the Blackbeard–Urban PSA. The Blackbeard– Urban PSA provides that Blackbeard is responsible for paying all Retained Obligations, which include all Liabilities “arising from, based upon, related to[,] or associated with” the “Excluded Assets,” a defined term that includes “any Excluded Information.” Because (1) Excluded Information includes “any contracts . . . whose change in ownership or transfer is prohibited or subjected to a payment of a fee or other consideration by an agreement with a Third Party . . . and for which no consent to transfer has been received”; (2) the Oxy–Marathon PSA, the Marathon–Legacy PSA, and the Legacy–Blackbeard MIPSA (collectively, the Up-Chain Agreements) each include language prohibiting their assignment without consent; and (3) Oxy, Marathon, and Legacy had not consented to any assignments to Urban before the Blackbeard–Urban PSA was signed, Urban asserts that the Up-Chain Agreements meet the definition of Excluded Information and therefore are Excluded Assets.8 the contractual language beyond the contract’s express language.” Id. at *5. However, unlike the contracts at issue in Nabors, the Blackbeard–Urban PSA contains indemnity language that is clearly broad enough to require Urban to cover Blackbeard’s defense and indemnity obligations to the Up-Chain Defendants. Thus, the situation presented here is not one in which a party seeks to pass through “extra-contractual liabilities” under an indemnity clause; rather, Blackbeard merely seeks defense and indemnity for liabilities that fall within the indemnity language’s broad scope. 8 Urban argues that Blackbeard’s failure to list the Up-Chain Agreements as “Material Contracts” in the Blackbeard–Urban PSA supports the conclusion that the parties intended to exclude them from Urban’s Assumed Obligations. But as 15 This argument is based on the faulty premise that Urban’s defense and indemnity obligations arise from the Up-Chain Agreements and are owed directly to the Up-Chain Defendants, but as explained above, these obligations arise from the Blackbeard–Urban PSA itself and are owed only to Blackbeard. Blackbeard never purported to assign or transfer to Urban its contractual obligations to defend and indemnify the Up-Chain Defendants. Instead, Blackbeard entered into a separate agreement with Urban—the Blackbeard–Urban PSA—whereby Urban agreed to act as Blackbeard’s surety in carrying out those obligations. And Marathon and Legacy proceeded in like fashion; neither purported to assign their respective defense and indemnity obligations when divesting the Louisiana Assets; rather, their respective transferees agreed to act as their sureties in fulfilling their up-chain obligations. The chain of demands and tenders—in which each Up-Chain Defendant has asserted its defense and indemnity rights against its immediate transferee, not directly against Urban—bears this out. Because none of the Up-Chain Defendants has “transfer[red]” or “[ex]change[d] . . . ownership” of its respective Up-Chain Blackbeard explained in its briefing, a contract was only considered “material” if it was “reasonably expected” to result in payments of at least $250,000 in a single year. When the parties executed the Blackbeard–Urban PSA, the only pending Louisiana Lawsuit was Smith v. Marathon Oil Company. Because Blackbeard had agreed to retain all liabilities and obligations relating to the Smith case and because nothing in the record suggests that Blackbeard should have reasonably anticipated the filing of the other Louisiana Lawsuits, there was no reason for Blackbeard to believe that the Up- Chain Agreements met the materiality threshold at the time that the Blackbeard– Urban PSA was executed. Thus, Blackbeard’s failure to list the Up-Chain Agreements as Material Contracts does not support Urban’s proposed construction of the parties’ agreement. 16 Agreement and instead has merely sought to assert its defense and indemnity rights against the party with whom it contracted, the Up-Chain Agreements do not fall within the definition of Excluded Information.9 Further, if the parties had wished to exclude Blackbeard’s defense and indemnity obligations to the Up-Chain Defendants from the Assumed Obligations, they could have easily done so in a straightforward manner instead of relying on a byzantine chain of defined terms rooted in the obscure, technical definition of Excluded Information. Indeed, they did just that with regard to Blackbeard’s liabilities pertaining to the first of the Louisiana Lawsuits to be filed: Smith v. Marathon Oil Company. The Blackbeard–Urban PSA clearly lists the “Liabilities of [Blackbeard] that are caused by or arise from” the Smith lawsuit as Retained Obligations. The 9 As Marathon and Blackbeard pointed out in their briefing, the associated- words canon supports the conclusion that the Up-Chain Agreements do not constitute Excluded Information as defined in the Blackbeard–Urban PSA. Under this canon, associated words bear on each other’s meaning and are “known by the company they keep.” Headington Royalty, Inc. v. Finley Res., Inc., 623 S.W.3d 480, 492 (Tex. App.—Dallas 2021), aff’d 672 S.W.3d 332 (Tex. 2023); see Greater Hous. P’Ship v. Paxton, 468 S.W.3d 51, 61 (Tex. 2015) (“The canon of . . . construction known as noscitur a sociis—‘it is known by its associates’—holds that the meaning of a word or phrase, especially one in a list, should be known by the words immediately surrounding it.”). The Blackbeard–Urban PSA defines Excluded Information as including “any contracts, books, records, files, maps, information, data, software and licenses . . . , or copies thereof, whose change in ownership or transfer is prohibited or subjected to payment of a fee or other consideration by an agreement with a Third Party . . . and for which no consent to transfer has been received.” All the listed terms surrounding the word “contracts” refer to informational assets and licensing agreements. This suggests that the contracts falling under the definition of Excluded Information are those that grant access to information or the right to use certain proprietary software, not chain-of-title documents like the Up-Chain Agreements. 17 straightforward exclusion of the Smith-lawsuit liability from the Assumed Obligations militates against the notion that the parties would exclude Blackbeard’s defense and indemnity obligations to the Up-Chain Defendants in the tortuous, convoluted manner suggested by Urban. Moreover, Urban’s proposed construction of the Blackbeard–Urban PSA— that every contract with an unreceived consent constitutes Excluded Information and, thus, an Excluded Asset—would render Section 5.5(b) of the agreement meaningless, an interpretive outcome forbidden by Texas law. See J.M. Davidson, Inc. v. Webster, 128 S.W.3d 223, 229 (Tex. 2003); Doe v. Tex. Ass’n of Sch. Bds., Inc., 283 S.W.3d 451, 458 (Tex. App.—Fort Worth 2009, pet. denied). Section 5.5(b) specifically addresses “Required Consents”; delineates which consents are, in fact, required; and specifies whether a Conveyed Interest subject to such consent is included in the sale (depending on whether or not the consent in question is a “Required Consent” and whether the consent is subsequently obtained within a short period after the closing of the sale). Because Urban’s proposed interpretation of the Blackbeard–Urban PSA would render Section 5.5(b) nugatory and effectively read it out of the agreement, it violates the principles of contract construction. See David v. Howeth, No. 02-20-00078- CV, 2020 WL 6165298, at *10 (Tex. App.—Fort Worth Oct. 22, 2020, pet. denied) (mem. op.). We overrule Urban’s first issue. 18 C. Urban’s Second Issue In its second issue, Urban contends that because Marathon’s indemnity claims against Legacy were discharged in Legacy’s 2019 bankruptcy case, Blackbeard’s acceptance of Legacy’s defense and indemnity claim on Marathon’s behalf was voluntary and did not compel Urban to indemnify Blackbeard for the defense costs incurred by Marathon or its predecessors-in-interest, Sun and Oxy. In other words, Urban asserts that Legacy’s bankruptcy discharge effectively cut off the defense-and- indemnity chain at Legacy’s level.10 We disagree. Urban’s argument that Marathon’s defense and indemnity claims against Legacy have been discharged betrays a fundamental misunderstanding of applicable bankruptcy law. According to Urban, because the Marathon–Legacy PSA was executed prior to the commencement of Legacy’s bankruptcy case, Marathon’s defense and indemnity claims arose prepetition and were therefore discharged. But Urban’s oversimplified analysis ignores the effect of Legacy’s assumption of the Marathon–Legacy PSA. See 11 U.S.C. §§ 365(a) (authorizing a trustee to “assume or reject any executory contract . . . of the debtor”), 1107(a) (providing that a Chapter 11 debtor-in-possession has “all the rights . . . and powers . . . of a trustee”). Because Legacy assumed the Marathon–Legacy PSA, the defense and indemnification Because Legacy’s personal liability for any claims asserted in the Louisiana 10 Lawsuits would have been discharged in its bankruptcy case, Urban essentially argues that Legacy’s bankruptcy discharge cut off the defense-and-indemnity chain at Blackbeard’s level. 19 obligations arising from that agreement were not discharged and instead became Legacy’s post-confirmation obligations. See In re Sandridge Energy, Inc., No. 16-32488, 2025 WL 1490539, at *11 (Bankr. S.D. Tex. May 23, 2025) (“When [the debtor] assumed the [i]ndemnification [o]bligations through its plan, they became [its] post- confirmation obligations.”); see also 2 William L. Norton III, Norton Bankr. L. & Prac. 3d § 46:27 (2026) (“[I]n a . . . Chapter 11 . . . case, an assumed obligation is a postpetition obligation that is not discharged, and which therefore continues to be an obligation of the reorganized debtor.”). Thus, Urban’s contention that Marathon’s defense and indemnity claims have been discharged is simply incorrect.11 11 In its reply brief, Urban cites two cases to support its contention that “Legacy’s ‘assumption’ of the 2015 Marathon[–]Legacy PSA is irrelevant,” but neither is on point. First, Urban cites Matter of German Pellets Louisiana, L.L.C., 91 F.4th 802, 809 (5th Cir. 2024), but this case did not involve the debtor’s assumption of an agreement obligating it to provide defense and indemnity to the contracting party; indeed, it did not address assumption or rejection issues at all. Thus, it is inapposite. Second, Urban cites NCL Corporation v. Lone Star Building Centers (Eastern), Inc., 144 B.R. 170, 178–80 (S.D. Fla. 1992), for the proposition that “when a debtor assumes [a] contract, only post-assumption rights and obligations are assumed, and obligations arising pre-assumption are not assumed.” But Urban overstates and oversimplifies NCL’s holding. In NCL, the debtor had leased certain property on which hazardous substances had been released. Id. at 172–73. During the debtor’s bankruptcy case, the lease had been assumed and had ultimately been assigned to NCL. Id. at 173. NCL sued the landlord to recover the costs that it had incurred, and would continue to incur, in cleaning up the contamination; the landlord countersued. Id. at 172. NCL moved to dismiss the landlord’s counterclaims on the grounds that they had been discharged in the debtor’s bankruptcy case. Id. at 174. The landlord argued that its claims had not been discharged because, among other things, the bankruptcy trustee had assumed the debtor’s lease, which required the debtor “to comply with all legal and regulatory requirements and indemnify [the landlord] for its failure to comply with its lease obligations.” Id. at 178. According to the landlord, because the debtor had been in default for failing to comply with state and federal regulations at the time the lease was assumed, the debtor had assumed these defaults 20 Further, even if Marathon’s claims had been discharged, Urban could not benefit from that discharge. “The discharge of a debt does not eliminate the debt[;] it just eliminates the debtor’s personal liability on the debt.” Legacy Reserves Operating LP, 2023 WL 6797776, at *4 (citing In re Edgeworth, 993 F.2d 51, 53 (5th Cir. 1993)). Moreover, a discharge generally “does not affect the liability of any other entity on . . . [the discharged] debt.” 11 U.S.C. § 524(e). Thus, a bankruptcy discharge protects debtors but not their third-party insurers or indemnitors. See Legacy Reserves Operating LP, 2023 WL 6797776, at *4; see also Edgeworth, 993 F.2d at 54 (explaining that it does not make “sense to allow an insurer to escape coverage for injuries caused by its insured merely because the insured receives a bankruptcy discharge” and that “[t]he ‘fresh-start’ policy is not intended to provide a method by which an insurer can escape its obligations based simply on the financial misfortunes of the insured” and had passed them on to NCL when it assigned the lease. Id. The district court rejected this argument because a trustee is required to cure any defaults at the time of assumption and because, despite having received notice of the proposed assumption, the landlord had neither objected nor asserted any defaults. Id. at 179. But unlike in NCL, there is nothing in the record in this case to suggest that Legacy had defaulted on its defense and indemnity obligations to Marathon at the time that it assumed the Marathon–Legacy PSA or that it failed to cure any such defaults. Indeed, as Urban acknowledges, Marathon had not even tendered its defense and indemnity demand to Legacy prior to the assumption date. At the time Legacy assumed the Marathon– Legacy PSA, only two of the Louisiana Lawsuits had been filed, and Urban has pointed to no evidence showing that Marathon’s defense and indemnity claims had become fixed and certain—or that Legacy had failed to pay any such fixed and certain amounts—as of the assumption date. See Noble Energy, Inc. v. ConocoPhillips Co., 532 S.W.3d 771, 777–78 (Tex. 2017) (“[A] claim based on a contract that provides indemnification from liability does not accrue until the indemnitee’s liability becomes fixed and certain.” (quoting Ingersoll-Rand Co. v. Valero Energy Corp., 997 S.W.2d 203, 205 (Tex. 1999))). 21 (quoting In re Jet Florida Sys., Inc., 883 F.2d 970, 975 (11th Cir. 1989))). As the bankruptcy court noted when it denied Urban’s motion to reopen Legacy’s bankruptcy case, “It would be inequitable to allow an indemnitor, Urban, to escape coverage for liability incurred by its indemnitees, Blackbeard and Legacy, merely because Legacy[] received a bankruptcy discharge.” Legacy Reserves Operating LP, 2023 WL 6797776, at *4 (citing Edgeworth, 993 F.2d at 54). In sum, Marathon’s defense and indemnity claims were not discharged in Legacy’s bankruptcy case, and even if they had been discharged, Urban’s own obligations would be unaffected. We overrule Urban’s second issue. D. Urban’s Third Issue In its third issue, Ur