File 10/1 VIII Bahrain Oil Concession [‎60br] (142/555)

Article VII|.
HHOULD the Company ougccccL in fimlr-
ing oil in commercially exploitable quanti
ties, they agree to pay half-yeartyyto the
Sheikh in place of the annual payment of
Rs. 10,000 provided for in ArjMe III a
royalty of Rs. 3.8.0 per ton ojKiet crude oil
got and saved (i.e. after deducting water
and foreign substances and oil required for
the customary operatiplis of the Company's
installations in the^heikh's territories).
This rate ofj^yalty to be subject to revi
sion by mutual agreement at the end of 10
years' pavment and in default of agreement
either j^ty shall have the right to demand
that ine question at issue shall be sub-
nnKed to arbitration as provided in Article
^XVlIl below.
FOR the purposes of such royalty pay-
7" ments the Company shall measure by a
v method customarily used in good oi lfield
pFactice all crude oil won and savedTTand
the Sheikh by his Representative auly
authorised by the Political Resident A senior ranking political representative (equivalent to a Consul General) from the diplomatic corps of the Government of India or one of its subordinate provincial governments, in charge of a Political Residency. in the
Persian Ghilf shall have the right to
examine such measuring and to examine
and test whatever appliances may be used
for such measuring. If upon such exami
nation or testing any such appliance shall
be found to be out of order the Sheikh may
require that the same be put in order by
and at the expense of the Company and if
such requisition be not complied with in a
reasonable time the Sheikh may cause the
said appliance to be put in order and may
recover the expense of so doing from the
Company and if upon any such examina
tion as aforesaid any error shall be dis
covered in any such appliance such error
shall if the Sheikh so decide after hearing
the Company's explanation be considered
to have existed for three calendar months
previous to the discovery thereof or
from the last occasion of examining the
same in case such occasion shall be within
such period of three calendar months and
the royalty shall be adjusted accordingly.
If the Company desire to alter any measur
ing appliance it shall give reasonable notice
to the Sheikh or his representative to
enable a representative of the Sheikh to be
present during such alteration.
THE Company shall keep full and
c orrect accou nts of all crude oi^measured
..s - aforesaidkind the said representative of
the Sheikh shall have access at all reason
able times to the books of the Company