Page 17 - The Persian Gulf Historical Summaries (1907-1953) Vol III

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Company and if such requisition be not complied with in a reasonable time the
Shaikh may cause the said appliance to be put in order and may recover the
expense of so doing from the Company and if upon any such examination as afore­
said any error shall be discovered in any such appliance such error shall if the
Shaikh so decide after hearing the Company’s explanation be considered to have
existed for three calendar months previous to the discovery thereof or from the
last occasion of examining the same in case such occasion shall be within such
period of three calendar months and the royalty shall be adjusted accordingly. If
the Company desire to alter any measuring appliance it shall give reasonable
notice to the Shaikh or his representative to enable a representative of the Shaikh
to be present during such alteration.
IXb.* The Company shall keep full and correct accounts of all crude oil
measured as aforesaid, and the said representative of the Shaikh shall have access
at all reasonable times to the books of the Company containing such accounts and
shall be at liberty to make extracts therefrom, and the Company shall at its own
expense within three calendar months after the end of each calendar year deliver
to the Shaikh an abstract of such accounts for such year and a statement of the
amount of royalty due to the Shaikh for such year. Such accounts shall be treated
as confidential by the Shaikh with the exception of such figures therein as he may
be required by law to publish.
X. The licensees shall take all practical measures to prevent an injurious
access of water to any oil-bearing formations which may be encountered either
while operations are in progress or upon the abandonment of any well.

THIRD SCHEDULE
Mining Lease
Article I
The Shaikh hereby grants to the Company on behalf of himself and his
successors the exclusive right for a period of fifty-five years to prospect and drill
for, extract, treat, refine, manufacture, transport and deal with petroleum products,
naphtha, natural greases, tar, asphalt, ozokerite, and other bituminous materials,
within the area or areas described in words in the first schedule to this lease and
delineated on the map attached as the second schedule thereto. Such right, how­
ever, shall not include the exclusive right to sell such products within the leased
area. He also grants the company the exclusive right to construct and operate
refineries and storage tanks within this area, and also the right, but not the exclusive
right, to construct, erect and operate pipe-lines, refineries and storage tanks, rail­
ways, wharves and jetties, tramways, roads, buildings, machinery, and telegraph
apparatus of all kinds in any part of the territory under the control of the Shaikh
so far as may be necessary for the purpose of their business.
The Company shall have the right to prospect for, collect and use free any­
where within the leased area, but not to export or sell, stone, gypsum, salt, sulphur,
clay, wood and water, whether from rivers or springs, for the purpose of their work.
The selection of routes and sites for such works and the course of the pipe-line
shall rest with the Company.

Article II
The Shaikh grants gratuitously to the Company all uncultivated land belonging
to him which may be needed by the Company for their operations.
In the lands so granted the Company shall for the period of their Agreement
enjoy full proprietary rights.
The Shaikh also recognises that the Company has the right to acquire all and
any other 'lands and buildings necessary for the said purpose with the consent of
the proprietors on such conditions as may be arranged between the Company and
the said proprietors without their being allowed to make demands of a nature to
surcharge the prices ordinarily current for lands and buildings situated in their
respective^ocafify ^ Agreement the ground and all immovable property left
by the Company shall be handed back to the Shaikh.
* Added under provisions of Indenture of February 15, 1933 ((b) on pages 19-20).