'File 39/2 (1 B/8) Effect of abrogation of APOC concession by Persian Government on oil market in Bahrain' [‎32r] (63/80)

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Article 2.
{a) The territory of the Concession, until the 31st December, 1933, shall be
the territory to the south of the violet line drawn on the map( 2 ) signed by both
parties and annexed to the present Agreement.
(&) The Company is bound, at latest by the 31st December, 1938, to select on
the territory above mentioned one or several areas of such shape and such size
and so situated as the Company may deem suitable. The total area of the area
or areas selected must not exceed one hundred thousand English square miles
(100,000 square miles), each linear mile being equivalent to 1,609 metres.
The Company shall notify to the Government in writing on the
31st December, 1938, or before that date, the area or areas which it shall have
selected as above provided. The maps and data necessary to identify and define
the area or areas which the Company shall have selected shall be attached to
each notification.
(c) After the 31st December, 1938, the Company shall no longer have the
right to search for and extract petroleum except on the area or areas selected by it
under paragraph (ft) above, and the territory of the Concession, after that date,
shall mean only the area or areas so selected and the selection of which shall have
been notified to the Government as above provided.
Article 3.
The Company shall have the non-exclusive right to construct and to own pipe
lines. The Company may determine the position of its pipe-lines and operate
them.
Article 4.
{a) Any unutilised lands belonging to the Government, which the Company
shall deem necessary for its operations in Persia and which the Government shall
not require for purposes of public utility, shall be handed over gratuitously to the
Company.
The manner of acquiring such lands shall be the following : whenever any
land becomes necessary to the Company, it is bound to send to the Ministry
of Finance a map or maps on which the land which the Company needs shall be
shown in colour. The Government undertakes, if it has no objection to make, to
give its approval within a period of three months after receipt of the Company’s
request.
(5) Lands belonging to the Government, of which use is being made, and
which the Company shall need, shall be requested of the Government in the manner
prescribed in the preceding paragraph, and the Government, in case it should not
itself need these lands and should have no objection to make, shall give, within a
period of three months, its approval to the sale asked for by the Company,
The price of these lands shall be paid by the Company; such price must be
reasonable and not exceed the current price of lands of the same kind and utilised
in the same manner in the district.
(c) In the absence of a reply from the Government to requests under
paragraphs («) and (&) above, after the expiry of two months from the date of
receipt of the said requests, a reminder shall be sent by the Company to the
Government; should the Government fail to reply to such reminder within a
period of one month, its silence shall be regarded as approval.
(d) Lands which do not belong to the Government and which are necessary to
the Company shall be acquired by the Company, by agreement with the parties
interested, and through the medium of the Government.
In case agreement should not be reached as to the prices, the Government will
not allow the owners of such lands to demand a price higher than the prices
commonly current for neighbouring lands of the same nature. In valuing such
lands, no regard shall be paid to the use to which the Company may wish to put
them. n i i • p
(e) Holy places and historical monuments, as well as all places and sites o±
historical interest, are excluded from the foregoing provisions, as well as their
immediate surroundings for a distance of at least 200 metres.
( 2 ) See footnote to article 2 of French text.
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