Hartshorne, Algebraic Geometry, Chapter V, Lemma 1.3, reads (in part):
Throughout this chapter, a surface will mean a nonsingular projective surface over an algebraically closed field $k$. [...] Let $X$ be a surface.
[...]
Lemma 1.3. Let $C$ be an irreducible nonsingular curve on $X$ , and let $D$ be any curve meeting $C$ transversally. Then $$\#(C \cap D) = \deg_C(\mathscr{L}(D) \otimes \mathcal{O}_C).$$ Proof. [...] We use the fact that $\mathscr{L}(D)$ is the ideal sheaf of $D$ on $X$. Therefore, tensoring with $\mathcal{O}_X$, we have an exact sequence $$0 \to \mathscr{L}(-D) \otimes \mathcal{O}_C \to \mathcal{O}_C \to \mathcal{O}_{C \cap D} \to 0$$ where now $C \cap D$ denotes the scheme-theoretic intersection. [...]
So apparently we've taken the exact sequence $$0 \to \mathcal{O}_X(-D) \to \mathcal{O}_X \to \mathcal{O}_D \to 0$$ of coherent sheaves on $X$, tensored by the coherent sheaf $\mathcal{O}_C$, and the resulting sequence is still exact.
Now, as I understand it, $\mathcal{O}_C$ is not flat: Proposition III.9.2(e) says that a coherent sheaf on a noetherian scheme is flat iff it is locally free, and $\mathcal{O}_C$ is clearly not locally free since it's supported on a curve. (Of course I guess I don't actually need flatness here.)
Note that $$0 \to \mathcal{O}_X(-D) \to \mathcal{O}_X \to \mathcal{O}_D \to 0$$ tensor by $\mathcal{O}_C$ is just
$$0\to {\mathcal Tor}_1( \mathcal{O}_D,\mathcal{O}_C)\to \mathscr{L}(-D) \otimes \mathcal{O}_C \to \mathcal{O}_C \to \mathcal{O}_{C \cap D} \to 0$$ since $\mathcal{O}_X$ is flat.
Now ${\mathcal Tor}_1( \mathcal{O}_D,\mathcal{O}_C)$ is a sheaf supported on ${C \cap D}$ and $\mathscr{L}(-D) \otimes \mathcal{O}_C$ is locally free on $C$.
Note that the subsheaf of a locally free sheaf can not be torsion, hence $${\mathcal Tor}_1( \mathcal{O}_D,\mathcal{O}_C)=0$$.