'File 5/1 VI Kuwait Oil Company' [‎39r] (82/620)

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records of the drilling "logs" of all wells, showing all
casing inserted and any water horizons passed through.
4* All abandoned boreholes whould be plugged
so as to prerent ingress of water, and excavations fenced off
if the Gcmpany is required to do so.
5. There should be a provision for the measure-r
ment of any oil won, for purposes of ascertainment of royalty.
A draft of a suitable clause is appended.
6 * It msy be desirable to provide for the
revision of the rate of royalty at intervals of ,say ,10 years,
on tlie application of either party, such revision to be based
on the general trend of world prices for petroleum products.
Minimum and maximum rate of royalty should be laid down in the
first instance.
7* It is usual to provide for a royalty on any
natural gas sold. The equivalent of 2 d. (? 2 annas) per
thousand cubic feet is suggested as a suitable rate. It might
also be provided that in the event of casing-head gasoline
being produced the Shaikh may fix a royalty at a rate not
exceeding the equivalent of l/ 2 d. a gallon.
8 . Minerals other than petroleum and cognate
products, should be reserved to the Shaikh, who should retain
the right to lease them to olher parties, provided that the
operations of the Company are not thereby obstructed.
9. The Company should undertake to offer no
unnecessary or reasonably avoidable obstruction or interruption
to the development and working of any minerals (other than
petroleum or cognate products) including water and to afford to
the hhaikh and to the holders of prospecting licences or
mining leases in respect of other minerals reasonable means of
access to such minerals for the purpose of working and carrying
away the same.
10 * Provision should be made for ocal office and
resident local representative*
11 o On the termination of the Concession the