Common use of Competitive Rates Clause in Contracts

Competitive Rates. In exchange for the right of first refusal given by OPERATOR in Paragraph 8.0 above, CONTRACTOR shall offer its most competitive rates to OPERATOR on a "most-favored nations" basis for the Work to be provided under this Agreement. CONTRACTOR warrants its "best" prices are based upon the following factors: the Works' schedule, the number and skill level of the personnel required to perform the Work, the anticipated type and quantity of hydrocarbon production involved, the Work's location, the anticipated costs of goods and services to be obtained from third parties in connection with the Work, cost sharing opportunities with other projects of CONTRACTOR, the amount of due diligence CONTRACTOR has been permitted to perform for the Work prior to establishing a price, regulatory issues involved in the Work, the identity of the platform owners, whether OPERATOR anticipates using the platforms and facilities involved for additional exploration activities, the age and condition of the platforms and facilities involved, and other inherent dangers and difficulties associated with the Work.