Pretty much. It's one level if you've naturally received an experimental effect to choose one, if you haven't then it's two - one to force the experimental effect, and the second to choose what it is. It's free to remove an effect.
I understand the need to balance this, but considering what is necessary to grind rank beyond the first few, this sounds improperly balanced and excessively punishing at higher grade levels. If the cost is an entire grade of access, then players who have earned
more rep with the Engineer, and supposedly have a better relationship with them, will receive a
greater penalty that takes them far longer to recover from.
For example, let's take a player with Grade 2 access, and a player with Grade 5 access. Both spend a grade to select an effect on the exact same Grade 1 recipe. The player with G2 access gets reduced to G1, and the player with G5 access gets reduced to G4. What is now required for each of them to recover?
The G1 player must craft three G1 recipes to get their G2 access back. The G4 player must craft three G4 recipes--the equivalent of dozens of G1 recipes, at minimum--to get their previous access back. When you convert these requirements into the raw reputation numbers that we don't get to see, surely FD at least can see that the "price" for the exact same thing is at least an order of magnitude more severe for the player who supposedly has a
better reputation with the Engineer! This will have the effect of a
disincentive towards ranking up--why put all that effort into the higher ranks if all that effort can be undone with a single favor that would cost you far less time to recover from at a lower rank?
I suggest the following: the cost of the "favor" should be relative not to your rank with the engineer, but to the
rank of the recipe for which you are calling in the favor. So if I have Grade 5 access to Tod, and I want to churn out a bunch of G1 Efficient Multicannons with Incendiary, that's not a big deal to him--this is small potatoes stuff considering my relationship with him, and I can recover the spent rep pretty quickly. But nailing that effect to a G5 Efficient
should be a big penalty, and even adding the effect to a G1 should have a hefty
relative cost for the player with lower rep.
If this is already how it works, I apologize. But that's now how you've made it sound.