Page 25 - The Persian Gulf Historical Summaries (1907-1953) Vol III

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arai. He also grants the Company the exclusive right to construct and operate
5, rss: stns 2,

the Sheikh so far as may be necessary for the purpose of their business.
for the purposes of their work the Company shall have the right, but not the
exclusive right, to prospect for, collect and use free, but not to export or sell:
(a) anywhere within the leased area : stone, gypsum, salt, sulphur, clay and
wood; and
(b) anywhere within the territory under the control of the Sheikh: water
The selection of routes and sites for such works and the course of the pipe-line
shall rest with the Company.
The Company shall at their own expense maintain and keep in repair the
existing and all other necessary boundary marks at the corners of the leased area,
according to the demarcation shown in the plan hereto annexed, so that the
boundaries of the leased area may at all times throughout the term of this lease
be clearly defined.
Article II
The Sheikh grants gratuitously to the Company all land uncultivated at the date
of this lease in any part of the territory under his control which may be needed by
the Company for their operations, excluding, however, the land within the
municipal boundaries of Muharraq and Manama (as defined by a red line on the
map attached and forming the Second Schedule hereto) and the land within a radius
of 300 yards from the north-east corner of the Sheikh’s Palace at Sakhir ( as defined
by a green circle on such map) provided always that to the extent and for
the period to and for which the Company shall use any uncultivated land belonging
to the Sheikh in his private capacity and falling within the land not excluded in
the preceding provisions of this paragraph (other than the pieces of land used by
the Company at the date of this lease and shewn on the map attached hereto and
bounded by a blue line) the Company shall, if so requested by the Sheikh, pay to
the Sheikh compensation for the use and occupancy of such land. Any such
compensation shall not exceed a fair and reasonable recompense to the Sheikh
for the dispossession of his right to the surface of such land and having regard
to the prices ordinarily current for similar land situated in the locality; failing
agreement as to the compensation payable to the Sheikh the matter shall be referred
to and determined by arbitration in the manner provided by Article XXII hereof.
In the lands so granted the Company shall for the period of this lease enjoy
full proprietary rights.
The Sheikh also recognises that the Company have the right to acquire all
and any other lands and buildings necessary for the said purpose with the consent
of the proprietors (including the Sheikh in his capacity as private landowner) 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 localities.
At the termination of this lease the ground and all immovable property left
by the Company shall be handed back to the Sheikh; all borings (including casing
therein) which the Company have not abandoned shall be handed over in reason­
ably good order and repair; and all other property of the Company may be
removed by the Company free of all taxes and duties, provided however that for
a period of thirty days following the termination of this lease the Sheikh shall have
the right to purchase such property at a price equal to the replacement value at
that date, less depreciation, which price in the absence of agreement shall be
settled by arbitration in the manner set forth in this lease.
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 en&ble
their pipe-lines and railways to pass freely to their destination, they shall not
acouirc as provided by paragraph 3 of this Article any land outside the leased
aCqU !Lhirh Pmif?ht otherwise be leased for the production of oil to a third party,
unless the5 cansatisfy ZSheikh that no other" land suitable for their purpose ,s
available.