Page 231 - The Persian Gulf Historical Summaries (1907-1953) Vol III

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Umm-al-Qaiwain Arabia, on his own behalf and on behalf of and in the name of
hls heir.* .f"d successors in whom is or shall be vested for the time brine the
responsibility for the control and Government of the State of Umm-al-Qaiwain
ffcr ca 1 led the Shaikh”) of the one part and Petroleum Concessions
Limited, a Company registered m Great Britain under the Companies Act 1929
(hereinafter called “ the Company ”) its successors and assigns of the second part.

Article 1
a Sa* •Fh? arCa 10 which this Agreement applies is the State of Umm-al-Qaiwain,
Arabia, including all Islands and Territorial Waters appertaining thereto (herein-
lifter referred to as “ the State ”) being all that Territory included in the Shaikhdom
of Umm-al-Qaiwain.
The Shaikh agrees that when the Territorial limits of the State of Umm-al-
Qaiwain have been determined the area covered by the Concession will be
coterminous with the limits so determined.
(b) Nothing in this Agreement shall be read as restricting—in any way—the
right of the Shaikh to grant to others a lease or permit over an area or areas to be
used for the purpose of constructing an aerodrome and appurtenances thereto for
either aeroplanes or seaplanes; and such area or areas if and so granted shall be
entirely excluded for the purpose of this Agreement.

Article 2
The period of this Agreement shall be 75 Calendar years from the date of
signature.
The expression year, month and day used in this Agreement shall mean what
is consistent with the English Solar Calendar and not any other. Further, the
weights mentioned in this Agreement shall be reckoned on the English Ton of I
2,240 lbs.
Article 3
The Shaikh hereby grants to the Company the exclusive right to explore,
search for, drill for, produce and win natural gas, asphalt, ozokerite, crude
petroleum and their products and cognate substances (hereinafter referred to as
“ the Substances ”) within the State, the exclusive ownership of all the Substances
so produced and won, the right to refine, transport, sell for use within and without
the State or for export and to export or otherwise deal with or dispose of the
Substances, and the right to import, export, pump, ship or otherwise transport
the Substances across or to any country or place at the Company’s discretion and
the right to do all things necessary for the purpose of these operations.
Article 4
If hereafter any neutral Zone is created adjacent to the Territory of the State,
wherein the Shaikh shall have a co-equal and joint interest, the Shaikh hereby
agrees to grant to the Company an oil concession over such neutral zone on terms
to be agreed between the Shaikh, the Company and the joint ruler of such Neutral
Zone.
Article 5
In consideration of the rights granted by the Shaikh by this Agreement the
Company shall pay to the Shaikh: —
(a) On signature of the agreement Rupees Sixty thousand.
(b) Rupees Two hundred thousand within a period of sixty (60) days from
the date upon which the Company declares in writing to the Shaikh
that substances have been discovered in commercial quantities. If the
Company should fail to declare so sooner, then the date of discovery of
substances in commercial quantities shall be that date upon which the
Company has completed and tested a well or wells capable of producing
in accordance with first class oil practice not less than two thousand
(2,000) English Tons of clean substances per day for a period of thirty
(C) Rupees Twemy-fou^ 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