ملف 10/1 VIII امتياز نفط البحرين [و‎‎١‎٦‎٣] (٥٥٥/٣٥٣)

■tli6F©3.f"tsr until "bhs Company should declape ■tlia't oil has beon
discovered in "commercially exploitable quantities" when a
tonnage royalty was to be paid on all oil produced, with a
minimum payment of Rs, 30,000 per annum. The declaration as
to commercial production had to be made within five years or
the Sheikh could require the Company to surrender the lease.
In the revised draft lease the Company has deleted all
reference to a declaration of commercial production and provide
forthwith to do what under the original agreement they might not
have been required to do for five years after the granting of a
mining lease. That the Company will presumably argue is as far
as they ought to be expected to go. As they are no?/ making
arrangements to ship substantial quantities of oil, they may
admit that they would find it difficult to say that they had not
discovered oil in commercial quantities, and if oil is going to
be produced in quantity why should the Sheikh bother because he
will get his royalties?
But in fact the Company has virtually given a?;ay the
minimum of Rs.30,000 in the Agreement of the 21st November, 1933,
relating to the prospecting licence, and we might therefore claim
on behalf of the Sheikh that under the Mining Lease he could, on
the basis of the original arrangement, reasonably expect to
receive a higher minimum than the revised prospecting licence
provides for. This question is discussed in the letter from
the Petroleum Department of the 15th February, 1934, to
Mr, Laithwaite, and in the note of the discussion which Mr.
Laithwaite had with Mr. Ballantyne on the 16th May, 1934.
These tvro documents can form the basis of the further discussion
with the Company, when it is suggested an effort should be made
"to secure a larger minimum royalty than Rs.30,000
(about £2,E50), There also seems no reason why the Sheikh
should/