'Oil Concessions' [‎101r] (226/700)

Bahrain ) Not more than 100 ,000 acres in the
Area: ^ UW ait ) aggregate in not more than three
blocks ,
Each Shaikh to receive from the Company a flat rate
royalty of Rs • 3 as ,B per ton of net crude oil {i.e.
after deductiom of water and ©iiier foreign substances
and oil required for the customary operation of
boring plant) received into the Company's field stor
age tanks and reservoirs -
The rate of royalty to be subject to revision at
the end o± 10 years by mutual agreement or by arbit
ration in default of" mutual agreement .
A minimum royalty or fi> ed rent for not less than
100,000 acres of Rs . 30,000/- per annum to be paid by
the Company to either Shaikh, and for this the Com
pany may taKe an equivalent amount of oil •
If the Company should decide to take up
less than 100 ,000 acres under either min
ing lease , the minimum royalty payable to
either Shaikh would be reduced pro tanto
according to a definite scale .)
If the sum of the royalties drawn by either
Shaikh in any one year equals or exceeds Rsp 30,000,
n o "fixed rent" shall be paid by the Company; but if
the royalties prove to be less in any one year than
the sum of fis. 30 ,000^the 'fixed rent shall neverthe
less be paid to the Shailfah. by the Company .
( or such less sum as may be agreed upon
as the proper rent for an acreage of
less than 100 ,000 acres -)
The Shaikh , in each case , to be reserved the
right , acting on the advice of the political Resid
ent , to terminateethe lease in the event of the Com
pany failing to fulfil the working conditions of the
lease (to be agreed upon when the lease is drawn up
for signature; or to produce suf ficient royalties ,
Customs E xem ption.
The Company shall be exempted by either Shaikh
for a period of 10 years -from payment of" import
dues or taxes on any material intMduced into Kuw
ait on Bahrain territory for the pperation of the
exploration and prospecting licenses or the develop-^
ment of oil deposits found .
8c
( counting from the date of signature of
the exploration licenses .)