Common use of Purchase from Third Parties Clause in Contracts

Purchase from Third Parties. The cost of MATERIAL purchased by the OPERATOR from third parties for use in JOINT OPERATIONS will include the purchase price and any import tax or levies, insurance, transport, loading and unloading fees, storage costs, costs of acquiring any import permits, permit fees, brokerage fees and taxes less any discounts received. The OPERATOR will purchase MATERIAL in sufficient quantity as would be acquired by a prudent and experienced operator so that excessive MATERIAL holdings will be avoided but that adequate quantities are held to ensure orderly operations.