'His Excellency SHEIKH HAMAD BIN SHEIKH ISSA AL KHALIFAH SHEIKH of BAHREIN AND THE BAHREIN PETROLEUM COMPANY LIMITED. LEASE [COPY]' [‎5r] (9/20)

royalty on natural gas used in
the Company’s installations in
the Sheikh’s territories.
The above royalties are payable on the
basis of calendar half-yearly periods (i.e.
from January first to June thirtieth and
from July first to December thirty-first of
each year) and in respect of such net crude
oil and casing-head petroleum spirit as
may be run from field storage (subject to
the above-mentioned deductions) during
each half-yearly period and in respect of
such natural gas as may be sold during
each half-yearly period. Settlement of
royalty accounts shall be made between
the parties within three months after the
end of each half-yearly period.
FOR the purposes of such royalty pay
ments the Company shall measure by a
method customarily used in good oilfield
practice all crude oil won and saved and
casing-head petroleum spirit extracted
and the Sheikh by his representative duly
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 Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. shall have the right to
examine such measuring and to examine
and test whatever appliances may be used
for such measuring. If upon such exam
ination 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
examination as aforesaid any error shall
be discovered 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 exam
ining 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 measuring appliance it
shall give reasonable notice to the Sheikh
or his representative to enable a repre
sentative of the Sheikh to be present
during such alteration.