Making the most of those opportunities requires caution with respect to the contracts that govern business relationships with the large oil & gas companies and their primary suppliers.

Before signing such a contract, sometimes called a service agreement or service contract, the contractor should read and understand its terms.

One area of concern we've noticed with some standard oil & gas company contracts is the way they address certain risks and responsibilities.

In Ohio, companies are generally responsible for their own acts and those of their employees, absent a contract that states otherwise. In some of these energy company contracts, risks, liability and financial obligation are reallocated to the vendor – regardless who is actually at fault.

Here are some specific contract features that should raise concern:

• Requiring the contractor to indemnify (repay) the energy company in certain situations for injuries, even when the injury is caused by the energy company's actions.
• Requiring the contractor to bear the cost of damage to its equipment, even if the property damage was caused by the energy company's actions.
• Requiring the contractor to purchase insurance to cover these redefined risks.

While these concerns do not necessarily mean vendors should not do business with oil & gas companies, they do point up the need for close examination of these agreements.

Vendors should make sure they understand what they are signing, understand the redefined risks and liability and make sure they have the appropriate insurance coverage.

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Martin J. Boetcher is an attorney with Harrington, Hoppe & Mitchell in Youngstown. His practice areas include civil litigation, employment law, workers' compensation law and insurance law.