Stage Commitment Clause Samples

Stage Commitment. The Company shall pay Contractor $40,000.00 for each Committed Stage not performed by Contractor for the Company (or its affiliates) during the term hereof. Contractor shall invoice the Company for such amounts within thirty (30) days of the end of each month in which the Drilling Commitment and/or the Stage Commitment are not satisfied. The Company shall pay such invoices within sixty (60) days after receipt thereof. Payment by the Company of any invoice shall not constitute a waiver of the Company’s right subsequently to question or contest the amount or correctness of said invoice and to seek reimbursement. In the event the Company disputes any invoice, in whole or in part, the Company shall promptly notify Contractor of the dispute and shall pay the undisputed portion within the time specified above. The Company and Contractor shall in good faith endeavor to settle and adjust any disputed amount forthwith. The failure by the Company to meet the Drilling Commitment and/or the Stage Commitment shall not constitute a breach of this Agreement; provided, that, the Company pays Contractor the non-utilization fee(s) pursuant to this Section 4.