File 2794/1921 Pt 8 'Persian Gulf: oil; Bahrain: Installation of radio-telephone by Bahrain Petroleum Company' [‎221r] (325/436)

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punishment shall
of the Company’s
this contract.
be inflicted and to use his utmost endeavours to uphold the authority
employees, thereby avoiding unnecessary troubles to both parties of
Article \ III.
Should the Company succeed in finding oil in commercially exploitable quantities,
tfcrr -urree to pay half-yearly to the Shaikh in place of the annual payment of
Rupees Indian silver coin also widely used in the Persian Gulf. '10 000 provided for in Article III, a royalty of Rupees Indian silver coin also widely used in the Persian Gulf. 3. 8. 0 (three rupees Indian silver coin also widely used in the Persian Gulf.
and eieht annas) per ton of net crude oil got and saved, i.e. after deducting water
'and foreign substances and oil required for the customary operations ot the Company’s
'installations in the Shaikh’s territories.
This rate of royalty to be subject to revision by mutual agreement at the end of
10 years payment and" in default of agreement either party shall have the right to
demand that the question at issue shall be submitted to arbitration as provided in
Av+iVIp YIV below.
Article JX.
Subiect to the “delay” exception mentioned in Article A" of this lease the
Company hereby undertakes that the amount received by the Shaikh in respect of
royalties" shall not be less than Rupees Indian silver coin also widely used in the Persian Gulf. 30,000 in any completed calendar year in
which the Company continues work, beginning with the yeai after the date on which
the Company shall have declared that oil has been found in commercially exploitable
quantities.**" In the event of the Shaikh acting under the advice of the Political
Resident in the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. disputing the Company’s decision as to the commercial
exploitation the Company hereby undertakes its readiness to submit the matter to
arbitration as provided in Article XIV.
Article X.
The Company shall carry on work within the leased area with all proper zeal and
diligence and shall maintain at least two rigs in continuous operation, except in so
far as they may be prevented by causes beyond their control. In the event of the
Company failing within five years of the commencement of this lease to declare that
oil has been found in commercially exploitable quantities the Shaikh shall have the
power to call upon the Company either to give forthwith the declaration mentioned
in the present Article or to abandon the lease.
Article XL
In the event of the Company failing within six months of the end of any calendar
year to pay to the Shaikh the royalties due in respect of that calendar year or failing,
save for causes beyond their control, to carry out their obligations under this lease,
the Shaikh shall have the power to terminate the leases, in which case the provisions
of the last sentence but one of Article II shall apply.
Article XII.
The lessees shall take all practical measures to prevent an injurious access of
water to any oil-bearing formations which may be encountered either while operations
are in progress or upon the abandonment of any well.
Article XIII.
The rights conveyed by this lease shall not be conveyed to a third party without
the consent of the Shaikh acting under the advice of the Resident in the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. .
Such consent shall not be unreasonably withheld.
Article XIV.
In the event of there arising between the parties to the present lease any dispute
or difference in respect of its interpretation or the rights or responsibilities of one oi
the other of the parties therefrom resulting, such dispute or difference shall be submittec
to two arbitrators one of whom shall be named by each of the parties and to an
umpire who shall be appointed by the Arbitrators before the} 7 proceed to arbitiate.
The decision of the arbitrators or in the event of the latter disagreeing that of t ie
umpire shall be final.
* Umlei’ paragraph 3 of the Supplementary Agreement of 21st November 1933 (PZ. 7763/33, No. V
on page 10 below) the minimum payment of Its. 30,000 per annum will be payable in respect o 6 yea
1934 and subsequent years.