Standard of Performance Warranties. (a) Upon the request of Owner, subject to the terms of this Agreement, Contractor shall conduct and direct all operations on the Operator Leases as permitted and required by, and within the limits of, this Agreement, the Operator ▇▇▇▇, and all applicable laws, rules, orders and regulations (collectively, “Laws”) of any governmental authority having jurisdiction over any Contract Area or Well that are now or may become applicable to the operations contemplated by this Agreement, to the extent and as fully as though Contractor itself was designated as Operator under the Operator ▇▇▇▇. Owner agrees to provide Contractor with authorizations necessary for the proper performance of the Services. Contractor shall use all possible care and diligence to ensure that the Services are performed: (1) reasonably and prudently; (2) with due diligence and dispatch in accordance with the standards for the Operator under the Operator ▇▇▇▇ and generally accepted oil field practice; (3) in a skillful and workmanlike manner; (4) by the proper number of experienced, skilled, and/or licensed personnel, qualified by education and experience to perform their assigned tasks; (5) within the period of time described in such Owner’s request, or if not specifically described, within a reasonable time under the circumstances; and (6) in full compliance with all Laws. (b) Contractor shall perform all work and labor appropriate or necessary for setting, installing, handling, caring for, and maintaining all materials, equipment, and supplies furnished by Owner in connection with the Services. Contractor shall furnish equipment, materials, appliances, or supplies of whatever kind and nature necessary and proper for the performance of the Services and to provide for the protection of all property and personnel from defective or non-conforming materials furnished by Contractor. In no event is Contractor responsible for equipment, materials, appliances, or supplies of whatever kind and nature necessary and proper for the performance of the Services provided by a third party. Contractor shall be responsible for informing Owner and working with Owner to rectify any problems with third party equipment, materials, appliances, or supplies of whatever kind and nature necessary and proper for the performance of Services. (c) Contractor warrants that any of the Services performed by Contractor or its subcontractors shall be performed in full compliance with the terms hereof. Contractor shall promptly re-perform any of the Services not performed in compliance with the terms hereof at Contractor’s sole expense and to the reasonable satisfaction of Owner, or at Owner’s option, promptly refund to Owner that portion of the consideration that is attributable to such non-compliant performance. The warranty period for performance of any of the Services shall be for a minimum of twelve (12) months or such longer period as may be agreed by the Parties, beginning on either the date that Owner gives acceptance of the Services performed or first uses the items related to the Services performed.
Appears in 2 contracts
Sources: Contract Operating Services Agreement (Pedevco Corp), Contract Operating Services Agreement (Pedevco Corp)