Coll 30/138 'Oil: Debai Political Agreement and Refinery Agreement.' [‎7r] (13/369)

(c) lUipees 30,000 (Thirty thousand) at the end of each year from the date
of signature hereof until the Company declares in writing to the Shaikh that
substances have been discovered in commercial quantities in accordance with
the sub-clause (6) of this Article 5, or until the Company commences production
from quantities less than commercial quantities. In the event of such
production by the Company from quantities less than commercial quantities
either Rupees Indian silver coin also widely used in the Persian Gulf. 50,000 (Fifty thousand) per year or Rupees Indian silver coin also widely used in the Persian Gulf. 3 (Three) per
English ton of 2,-40 lbs. in respect of the substances so won and saved shall
be payable, whichever is the greater.
(d) At the end of every year from the date upon which the Company makes
in writing to the Shaikh the declaration that the substances have been
discovered in commercial quantities Rupees Indian silver coin also widely used in the Persian Gulf. 90,000 (Ninety thousand) or
Rupees Indian silver coin also widely used in the Persian Gulf. 3 (Three) per English ton of 2,240 lbs. in respect of the substances
other than natural gas, won and saved during the preceding calendar year,
whichever is the greater.
(e) Annas 2 (Two) per 1,000 cubic feet of natural gas produced and sold.
In calculating royalty for the purpose of this article account shall not be taken
of any of the substances used by the Company in its operations or used by the
Company’s employees within the State, necessary for their use, nor of any water or
foreign matter which may be produced with the substances.
Article 6. The Company shall not carry on any operations within areas
occupied by or devoted to the purposes of mosques, sacred buildings or graveyards.
Article 7. The Company shall conduct its operations in a workmanlike manner
and by appropriate scientific methods and shall take all reasonable measures to
prevent the ingress of water to any petroleum-bearing strata and shall duly close
any unproductive holes drilled by it and subsequently abandoned. The Company
shall keep the Shaikh informed generally as to the progress and result of its drilling
operations but such information shall be treated as confidential.
Article 8. Within three months after the expiry of each calendar year, the
Company shall deliver to the Shaikh a statement of the amount of the substances
won and saved and in the case of natural gas produced and sold during the said
calendar year, and of the royalty which is or might have been payable under
Article 5, together with a report of its operations during the said year. The Shaikh
or his representative shall have the right to check such returns and statements, and
all such returns and statements and the reports of the Company’s operations shall
be treated as confidential by the Shaikh.
Article 9.—(a) The Company shall have the right to import water, the
substances, fuel, machinery, motor-cars and lorries, aircraft, equipment, plant,
timber, utensils, iron work, building materials, food supplies, medicines, medical
supplies, office equipment and household furniture, and other materials, equipment
and goods of whatsoever nature required by the Company and its employees for the
purpose of its operations hereunder and to export the substances and articles
previously imported by the Company free of customs or export duty and taxes or
other charges, but it shall pay on all personal goods, clothing and general
merchandise imported by the Company for the personal use of its employees or for
resale to them the ordinary duty in force for the time being in the State. Saving as
in Article 5 and in this Article provided, the Company, its personnel, its operations,
income, profits and property including the substances shall be exempt and free
during the period of this Agreement from all present or future harbour duties,
import duties, export duties, taxes, imposts and charges of any kind whether State
or local, tolls and land surface rent of whatever nature.
In consideration of the right herein granted the Company shall pay—in
addition to the royalty per ton of Rupees Indian silver coin also widely used in the Persian Gulf. Three (3) as provided in Article 5—to
the Shaikh within Three (3) months after the close of each calendar year the sum
of Four (4) annas per English ton of 2,240 lbs. in respect of the substances won
and saved during the said calendar year.
(6) The importation by the Company of firearms and other weapons is prohibited,
except with the written permission of the Shaikh.
(c) The Company may import such alcoholic drinks and liquors as the Company
may require for the use of their foreign employees but only with the written
permission of the Shaikh, and the Political Agent A mid-ranking political representative (equivalent to a Consul) from the diplomatic corps of the Government of India or one of its subordinate provincial governments, in charge of a Political Agency. , Bahrain, or any authority deputed