'File 82/1 II (F 53) A.P.O.C., and Oil Concession - Arab Coast' [‎279r] (563/576)

This rate of royalty to be subject to revision by mutual agreement at
the end of ten years' payment and in default of agreement either party
shall have the right to demand that the question at issue shall be submitted
to arbitration as provided in article 17.
A rticle 13.
Subject to the " delay " exception mentioned in article 9, the fcompany
hereby undertake that the amount received by the Shaikh in respect of
royalties shall not be less than Rs. 30,000 in any completed calendar year
in which the Company continues work, beginning with the year after the
date on which the Company shall have declared that oil has been found in
commercially exploitable quantities. In the event of the Shaikh, acting
under the advice of 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 Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. , disputing
the Company's decision as to the commercial exploitation, the Company
hereby undertakes its readiness to submit the matter to arbitration as pro
vided in article 17.
A rticle 14.
Within one month of the signature of the agreement, the Company shall
pay to the Shaikh the sum of Rs. 10,000 in consideration of the assistance
and protection to be afforded to their employees; and on the grant of a
prospecting license under article 3, the Company shall pav to the Shaikh
a further single sum of Rs. 10,000. With the exception of these two sums,
they shall not be liable to pay any further sums to the Shaikh except as
provided above after the oil has been found.
'A rticle 15.
In the event of the Company failing to discover oil in sufficient quantity
they shall have the right to stop work at their option and the Shaikh shall
have no claim to any payment or compensation.
Similarly in the event of the Company failing to conform to the terms
of this agreement, the Shaikh acting on the advice of 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.
has the right to terminate the agreement, provided that in default of agree
ment on this question either party shall have the right to demand that the
question at issue shall be submitted to arbitration as provided in article 17
below.
A rticle 16.
The Shaikh solemnly declares that he will carry out all the conditions
of this contract willingly and faithfully and that he and his heirs and his
successors shall be its guarantors and shall accept full responsibility for
any claims by any person questioning the validity of any stipulation on this
contract. a
This contract cannot be cancelled except as provided as above and shall
remain in force for the period of the Company's concession or any extension
or renewal thereof.
A rticle 17.
In the event of there arising between the parties to the present con
cession any dispute or difference in respect of its interpretation or the rights
or responsibilities of one or the other of the parties therefrom resulting
such dispute or difference shall be submitted to two arbitrators one of whom
shall be named by each of the parties and to an Umpire who shall be
appointed by the arbitrators before they proceed to arbitrate. The decision
of the arbitrators or in the event of the latter disagreeing that of the Umpire
shall be final.
A rticle 18.
This agreement and every clause thereof is subject to revision by His
Majesty's Government, and the Company hereby undertake to accept any
revision which His Majesty's Government may see fit to make in the interest
of the Shaikh : but, pending the approval of His Majesty's Government
will be regarded by both sides as having full force.