Common use of Revision in Rates Clause in Contracts

Revision in Rates. The rates and/or payments herein set forth due to Contractor from Operator shall be revised to reflect the change in costs if the costs of any of the items hereinafter listed shall vary by more than 15 percent from the costs thereof on the date of this Contract or by the same percent after the date of any revision pursuant to this Subparagraph: (a) Labor costs, including all benefits, of Contractor’s personnel; (b) Contractor’s cost of insurance premiums; (c) Contractor’s cost of fuel, including all taxes and fees; the cost per gallon/MCF being $ ; (d) Contractor’s cost of catering, when applicable; (e) If Operator requires Contractor to increase or decrease the number of Contractor’s personnel; (f) Contractor’s cost of spare parts and supplies with the understanding that such spare parts and supplies constitute percent of the operating rate and that the parties shall use the U.S. Bureau of Labor Statistics Oil Field and Gas Field Drilling Machinery Producer Price Index (Series ID WPU119102) to determine to what extent a price variance has occurred in said spare parts and supplies; (g) If there is any change in legislation or regulations in the area in which Contractor is working or other unforeseen, unusual event that alters Contractor’s financial burden.