'File 5/1 II Kuwait Oil Company' [‎39r] (82/552)

63,368 diiira's, each, making a total of
333,472 dhira'a in a.jL^ according to the
kuwait method of measurement. |>
( 2 ) Period: Two years.
(3) Licence Fee: Rs. 10 , 00 ^-.
(4) The Company to be permitted to take not more
than ICC t/ons of oil iree of royalty during
the period of the Prospecting Licence for
experimental and testing purposes.
ill. EXPLOITATION L&tBE.
(l) Area: Not more than 100,000 acres in the aggregate
divided Into not more than three blocks.
Each side of a square of 100,000 acres equals >
miles, or approximately 41,684 dhira’s,
making a total of 166,736 dhira's according
to the Kuwait methoc of calculation.
(2} Y.5. to receive from the Company a flat rate
royaltyof R».3f per ton of net crude oil
(i.e. after deduction of water and foreign
substances and the oil required for the
customary operation of boring plant) receive I
into the Company's field storage tanks and
rccervoirs.
The rate of royalty to be subject to revision-
at the end of ten yean; by mutual agreement,
or by arbitration in default of mutual
agreement.
a mini mull royalty or "fixed, rent" of Rs.
3Q,GQQ/“ per annum for not less than 1.00^000
acres, or such less sum as may be agreed on
as the proper rent for less than that amount
of ground, to be paid by the Company to X,E V
and for this the Company may take an equiva
lent amount of oil. (If the Company should
decide to take up less than 1QC,0CC acres
the fixed rent” or minimum royalty payable to
Y.E. will be pro tanto according to a definite,
scale).
If the sum of the royalties drawn by Y.E. in
any one year equals or exceeds Rs.3Q,eQ©/-,
or such less sum as may be agreed upon as the
proper "fixed rent' of less than 100,000 acres
no'fixed rent* be paid by the Company;
but if the royalty I ea prove to be less in any*
one year than the sum of Rs.30,000/-, or
such less sum as may be agreed upon as the
fixed rent for less than 200,000 acres, the
fixed rent shall be paid to~Y 0 E-. by the
Company.
(3) Y.E. to be reserved the righp, acting on Cue
advice of the Hon’ble the Political Resident A senior ranking political representative (equivalent to a Consul General) from the diplomatic corps of the Government of India or one of its subordinate provincial governments, in charge of a Political Residency.
in the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. , to terminate the lease
in the event of the Company failing to fulfil
the working conditions of the lease (which
will be agreed upon when the lease is drawn
up for signature), or to produce sufficient
royalties.
CUSTOMS EXE M PTION.
The Company to be exempt byY.E. for a period of ten years from the
date of signature of the Exploration Licence from payment of Impor
dues and taxes on any material introduced Into Kuwait territory fo
the operation of the Exploration and Prospecting licences or the
development of oil deposits found.
i
M. E.