Page 141 - The Persian Gulf Historical Summaries (1907-1953) Vol III

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2. No royalty shall be payable by the Company in respect of the Substances
used within the Concession Area or elsewhere within the State of Qatar by or on
behalf of the Company or its employees for the purpose of carrying on its opera­
tions under this Agreement.
3. Prior to the Date of commencement of regular exports of oil any royalty
due to the Sheikh in any year in accordance with this Article will be paid at the
same time as the rental payment for that year is paid to the Sheikh pursuant to
Article 4 hereof, and at the same time the Company will furnish to the Sheikh a
statement showing the quantities of the Substance if any exported during such year.
4. After the Date of commencement of regular exports of oil royally due to
the Sheikh in any year under this Article will be paid in accordance with the
procedure set out in Article 10 hereof.
5. All measurement of the Substances required to be made under this Article
or otherwise pursuant to the provisions of this Agreement shall be made at the
point of export (or in the case of natural gas at the point of sale) of the Substances.
In the case of such Substances as are liquid measurement shall be by dipping
tanks or by measuring instruments and in the case of such Substances as are solid
shall be by weight. The Sheikh has the right to appoint an authorised agent to
be present to inspect such measurement in accordance with normal practice.

Article 7
1. The Company will pay a taxation commutation of sixpence sterling per
ton of the Substances exported and upon which royalty is payable in accordance
with Article 6 hereof in consideration of which the Company will be entitled from
the date of signature of this Agreement: —
(a) to import free of all import customs and other duties, water, petroleum and
any of its derivatives, fuel, machinery, motor cars, lorries, aeroplanes,
equipment, line pipe, tank plates, instruments, wood, utensils, iron
ware, building materials, medicines, office equipment, household
furniture and all other things of any nature whatsoever required by the
Company or by its employees for its operations. The Company shall,
however, pay the ordinary duty applicable to British merchants in the
State of Qatar on all personal effects, piece-goods, general merchandise,
and provisions which it imports for the personal use of its employees.
Nothing imported free of duty shall be sold for use in the State of
Qatar except as provided for in paragraph (b) hereof.
(b) to supply imported bunkers and other imported petroleum products to
the Company’s ships and to any ships loading the Substances and to
export all the Substances and their derivatives and goods already
imported by the Company under paragraph (a) above and such supply
and export shall be free of all export customs and other duties.
(c) to exemption, subject to the provision of clause 2 of this Article, from all
taxation of whatever nature whether State or municipal and whether
already imposed or hereafter to be imposed on its operations, capital,
income, profits, borings, plant and properties (including buildings),
whether owned by the Company or on lease from any other person
or persons and on the Substances before and after their removal from
the ground and upon the technical processes carried out upon or utilised
in connection with the Substances.
2. Notwithstanding the provisions of clause 1 (c) of this Article the Company
shall not be exempt from liability to Qatar Income Tax in respect of any year or
part of a year after the Date of commencement of regular exports of oil.

Article 8
1. The Company undertakes that as from the Date of commencement of
regular exports of oil the Sheikh shall receive 50 per cent, of the oil Profit.
2. (a) The Company further undertakes that if, in respect of the initial period
and the three following years, the Sheikh’s receipts under the provisions
of clause 1 above are at a rate less than the rate of £650,000 sterling per
annum the Company shall pay to the Sheikh in sterling, at the times and in the
manner provided for Make-up Payments in Article 10, a sum equal to the
difference