Page 18 - The Persian Gulf Historical Summaries (1907-1953) Vol III

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It is. however, understood that within the leased area the Company shall be
entitled to acquire only such land as is necessary for their pipe-lines, refineries,
offices, and other works, and that save in so far as it is necessary in order to enable
their pipe-lines and railways lo pass freely to their destination they shall not occupy
any land outside the leased area which might otherwise be leased for the production
of oil to a third party, unless they can satisfy the Shaikh that no other land suitable
for their purpose is available.

Article III
In consideration of the grant of this lease, the Company undertake to pay to
the Shaikh within 60 days after its grant, the sum of Rupees 10,000 and the further
sum of Rupees 10,000 on each anniversary of the grant, subject to the “ delay ”
exception mentioned in Article V, for five years, or until, in accordance with
Article IX, the Company shall have declared that oil has been found in
commercially exploitable quantities.

Article IV
All lands granted by this Agreement to the Company or that may be acquired
by the Company in the manner provided for in Article II of this lease as also all
products exported shall be free of all imposts and taxes during the tenure of the
present Concession.
All material and apparatus of every kind necessary for the exploration, working
and development of the deposit, and for the construction and development of the
pipe-lines, including also all the works specified in the first paragraph of Article 1
hereof and office requirements, but not including the personal requirements of
employees, shall enter the said territories free of all taxes and Custom House duties.
This privilege shall continue in force until two years after the date upon which
the Company shall have declared that oil has been found in commercially
exploitable quantities, or for a term of 10 years, whichever is the longer.

Article V
The Shaikh undertakes to give all the protection in his power to the Company
and to their staff and labourers in any part of his territory from thefts, highway
robbery, assault, &c. Similarly the Shaikh undertakes to protect all the property
of the Company and of its employees which may be exposed to wilful damage or
to possible loss by theft.
If the Company’s work is delayed by such events as are mentioned in this
Article then the period of such delay shall be added to the period for which this
lease is granted, and either {a) to the period before the expiration which the
Company shall give the declaration mentioned in Articles IX and X, if the delay
occurs prior to such declaration, in which event the annual payment of Rupees
10,000 shall be remitted for the period of the delay, or (b) to the period for which
the royalty mentioned in Article VIII shall hold good, if the delay occurs subse­
quently to the declaration mentioned in Articles IX and X, in which event the fixed
rent of Rupees 30,000 shall not be payable in respect of such delay, or (c) to the
period for which the revised rate of royalty, if any, or the original royalty shall hold
good, if the delay occurs after the time at which a revision is permitted by
Article VIII, in which event also the fixed rent of Rupees 30,000 shall not be payable
in respect of such delay.
Article VI
For the above purposes it is agreed that the Company in communication with
the Shaikh shall appoint permanent trustworthy guards under a reliable man of
good family, whose pay, and that of the guards, shall be provided by the Company
and who shall remain there summer and winter.
If in spite of the efforts of the said guards thefts should occur, the Shaikh
undertakes to recover the property stolen and to compensate the Company for
any damage sustained in his territory. In the event of non-recovery of the stolen
property, the value thereof shall be deducted by the Company from any sums due
to the Shaikh by the Company.
The number of guards at any place where the Company may operate shall be
fixed by the Company.