'Agreement... between the Ruler of Umm-al-Qaiwain... and Petroleum Concessions Limited' [‎1v] (2/8)

/.AiTICLE 9.
(a) on sifjnaturo of the aoreor\cnt hupoos ,ji:rcy th uscjic!
(h) Rupees Indian silver coin also widely used in the Persian Gulf. T’jo hunelrcd thousand 'within a period ointy ( 60 )
days fron the date up. n '.;hich the Conpaiiy declares in \auting to
the dhaihh that substances have been discovered in cunncrcial
'quantities. If the Conpaiiy should fail t declai .1 so sooner, then
the date of discovery of substances in cor.xiercial quantities shr.j -1 bo
that date upon 'which the Goiipraiy has concloted and tested a ’well or
yells capable of pr^ducin^ in accordance vrith first class oil practice
not less than two thousand (2000) English Tons of clean substances
per day for a period ef thirty ( 30 ) consecutive days.
(c) liupees Twenty f ^ur thousand at the end of each year from
the date of sapnaturo hereof until the Conpany declares in writing
t'
the Shaikh that Substances
have been discovered m coiviercial
quantities in accordance with the Sub-Clause (b) of this ^article 3»
or until the Conp'.ny c alienees Productivin fron quantities less than
coLi'ercial quantities. In the event -f such Produccion by the Conpany
fron quantities less than con.a^rcial quantities either Kupees jpifty
thousand per year of hupeos 3 (throe) per duglish T n of 2,240 lbs.
in respect of the Substances so w-n and saved, shall be payable,
whichever is the greater.
(d^ ht the one of every year fron the date upon which the
Corpar^ makes in writing to the Shaikh the declaration tliat the
Substances have been discovered in comlorcial quantities hupees
ninety thousand or liupecs 3 (Three) per English ton of 2,240 lbs.
in respect of the Substances thcr than natural gas, won and saved
durin ( the preceding Calendar yorr, wliichevor is the; greater.
(e) Annas 2 (two) per 1,000 cubic foot of natural gas produced
and sold.
In calculating royalty for the purpose of this article account
shall not be taken of any of the substances used by the Conpaiiy in its
operations ~r used by the Conpary’s employees within the State,
necessary for their use, nor f any water or foreign natter which nay
be produced with tho Substances.
idiTECLS 6 . The Conpany shall not carry n aiy operations within
areas occupied by or devoted to the purposes of rescues, sacred
buildings or graveyards.
AkTICLE 7* The Conpany shall conduct its operations m a
workmanlike manner and by appropriate scientific methods an shall
take all reasonable measures to prevent the ingress of 'water to any
petroleun-bearing strata and shall duly close any unproductive boles
drilled by it and subsequently abandoned. The Co. .pany shall keep
the Shaikh informed generally as to the progress and result of its
drilling operations but such information shall bo treated as
confidential.
■idiflCIA 8 . 'within three months after the expiry of each calendar
year, the Company shall deliver to the Shaikh a statement sf the
amount of the Substances won and saved and in the cc.se of natural gas
produced and sold during the said calendar year, and ...f the royalty
which is or night have been x^ayable under .nrtide 3 > together with a
r jport of its perati his during the said year. The Shcdkla or hds
representative shall have the right to chock such returns and statement
and all such returns and statements and the reports of the Company’s
operations shall be treated
confidential by the Shaiidi. »