Page 130 - The Persian Gulf Historical Summaries (1907-1953) Vol III

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(c)—(A) The Company undertakes in the manner provided in Article 5 hereof
to pay to the Shaikh as from the Effective Date the following Convention payments
namely: —
(i) a royalty on all exported oil (being the royalty provided for in para­
graph ((/) (i) of Article Fourth of the Amended Convention);
(ii) a royalty on all asphalt and ozokerite won and saved in storage
(being the royalty provided for in paragraph (cl) (2) of Article Fourth
of the Amended Convention);
(iii) a royalty on all natural gas produced and sold (being the royalty provided
for in paragraph (cl) (3) of Article Fourth of the Amended Convention);
(iv) the salaries of the Shaikh’s representatives (being the undertaking (3)
provided for in one of the two letters referred to in the definition of
“the Existing Convention”);
(v) a tax commutation (being the tax commutation provided for in Article
Tenth of the Amended Convention).
(B) If the total amount payable by way of Qatar Income Tax in any year
in respect of dealings in exported oil and of dealings in Qatar in exported asphalt,
ozokerite and natural gas during the preceding year when added to the Convention
payments due or paid in respect of that preceding year is less than an amount
equal to 50 per cent, of the profit arising in Qatar on exported oil and on exported
asphalt, ozokerite and natural gas during that preceding year then the Company
shall pay to the Shaikh in Sterling in the manner provided in Article 5 hereof
a sum equal to such deficiency. Any sum so payable is hereinafter called a “ make­
up payment.”
In this paragraph the expression “ preceding year ” shall in relation to the
initial period mean that period.
Article 3
(A) The Company guarantees that the Shaikh will receive in each year during
which the Amended Convention remains in force subsequent to the year 1952 a
minimum of either—
(i) £1 million sterling unless by reason of Force Mcijeure the operations of
the Company cease or are in suspension during the whole or any part
of the year concerned: or
(ii) a sum calculated at the rate of £750,000 sterling per annum in respect
of the whole or any part of any such year as aforesaid during which
by reason of Force Mcijeure the operations of the Company have
ceased or are in suspension and at the rate of £1 million sterling per
annum in respect of the remainder of such year.
(B) Any sums paid by the Company under the guarantee contained in sub-
paragraph (A) above shall be recovered out of the Convention payments due to
the Shaikh in the year or years next succeeding the year in which such sums are
paid but only to the extent to which the total amount received by the Shaikh
both by way of Convention payments and otherwise in any such succeeding year
or years exceeds £1 million sterling.
(C) The guarantee contained in sub-paragraph (A) of this Article shall cease
to operate if and for so long as the amount to be recovered by the Company under
the provisions of sub-paragraph (B) of this Article would otherwise exceed
£1J- million sterling.
Article 4
(«)—(i) The border value as at 27th August, 1952, of exported oil of 40 0°
A.P.I. and of the quality then being exported established in accordance with the
definition of border value in Article 1 hereof is 8213d. (sterling) per ton.
(ii) In respect of other gravities and qualities of crude oil the border values
shall be ascertained by adding to or subtracting from the border value mentioned
in sub-paragraph (I) the amount in shillings per ton by which the relevant posted
price for the actual gravity and quality concerned is greater or less than the
relevant posted price for exported oil of 40*0° A.P.I.
<jjj> Such border values ascertained as above shall be appropriately adjusted
by adding thereto or subtracting therefrom the amount in shillings per ton by
which the relevant posted prices increase or decrease after the said 27th August