'File 5/1 VI Kuwait Oil Company' [‎38r] (80/620)

the well head, or port of shipment. There are some oases in ™
' • >£ : $
which royalty is charged on the basis of a percentage of the
value of the oil won, and endless difficulty has arisen in
finding a satisfactory method of determining the value* In
Trinidad, where the Crovernm&nt owns the greater part of the
minerals and the question has been thoroughly considered,
the idea of an export tax has been definitely abandoned as
unsuitable*
General Observations T
xhe foregoing notes deal with the more important
provisions of the draft concessions and will it is thou^it
enable the Shaikh to reach a decision as to which application
is likely to be more acceptable to him*
Besides the points dealt with there are certain
provisions which ought to be included in any concession which
may be granted of which the following are the more important,
sane of these may b© covered in part by the existing drafts:-
1. During the exploratory period, the work of
exploration should be commenced within a specified period, and
carried on continuously under the supervision of a fully
qualified petroleum geologist* Correct geological plans and
records should be kept, which should be open to insoeotion by
the Shaikhjd or his representative at all reasonable times.
2 * The Company should give an undertaking at
all times during the continuance of the Concession to carry on
an operations for winning and working crude oil, and natural
gas in a skilful and workmanlike manner and in accordance with
modern approved methods; to maintain all productive borings in •
good repair, working order and condition and to take all prac
tical measuredo prevent the injurious access of water to the
oil bearing formations.
S. The Company should furnish an annual report
of their operations, together with a plan showing the location
of all wells drilled. They should also keep accurate records