File 10/5 II Hasa oil: CASOC's activities in Hasa; development of Ras Tannura; Political Agent's visit to Hasa [‎22r] (56/656)

time agreed ir Article 16 of this agreement; thereafter so long
as the contract is not terminated, the annual rental shall be
d"e upon each anniversary of the effective date hereof m6 shell
be payable within theiry days after such anniversary, provided
that upon the commercial discovery of oil no further annual
rental shall be due is payable.
Article 5 o
If this contract has not been terrainatea within eighteen
months from the effective date hereof, the Company shall nake
aseeond payment to the Government, amounting to twenty thousand
pounds gold, or its equivalent., The due date of Buch payment
shall be eithteen months from the effective date hereof by the
Company shall have fifteen days from the due date within which
to make the payment#
Article 6 0
Upon the effective date of this agreement the Company shall
commence plans and oreparations t or goelogical worx, so planning
the w«rk as to take advantage of the cooler season for more
efficient work in the field, and of the hotter season for the
necessary office work or compiling data and reports. In the
event, the actual field work shall commence not 3a ter than the
end of September, 1935, and it shall be continued diligently
until operations connected with drilling and conmenced, or until
the contract is terminatedo
Article 7 »
Within ninety days after the commencement of drilling, the
Company shall relinquish to the Government such portions of the
exclusive area as the Company at that time may decide not to
explore further, or to use otherwise in connection v/itn the
enterprise. Similarly, from time to time, during the l»fe of
this contract, the company shall relinquish to the Government
such further portions of the exclusive area as the Company may
then decide not to explore or prospect furthers® or to use otaer-
wise in connection with the enterprise. The portions so relin
quished uhall therupon be released from the terms ana conaiturns
of this contract, excepting only that during the le>e of uhis
contract the Company shall continue to enjoy the right to use
the portions so relinquished for transportation ana communicat10
facilities, which however shall interfere as little as practio
a ale with any other use to which the relinquishea portions may
be put 9
Article 8.
The Company shall commence operations connected with
drilling as soon as a suitable struct ire has been found, and in
any event if the Company does not commence suea
three years from tne end of Sptember 1933 (suoject to a •
provisions of Article 25 lUireof), the Government A
this contract. Once commenced, these operations sha .'
tinued diligently until oil in commercial quantities has been
discovered or until this agreement is terminatedo n . QHOV}vr v
Company should fail to declare so sooner, the date 0 , . , ^
of oil in commercial quantities shall be the aate up
the Company has completed and tested a well or .
capable of producing in accordance with first c a - ? t
at least two thousand tons of oil per day for a pei
consecutive days,, , . , , and
Operation connected with drilling include ^ cons-
shipping of materials and equipment to Sapdi Arabi ,
truction or roads camps, buildings, structires, cilltlec^