Page 28 - The Persian Gulf Historical Summaries (1907-1953) Vol III

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Article VIII
Subject to the “ delay ” exception mentioned in Article IV of this lease the
Company hereby undertake that the amount received by the Sheikh in respect
of royalties shall not be less than at the rate of Rs. 75,000 in every calendar year
in which this lease continues in operation.
Article IX
The Company shall carry on work within the leased area in accordance with
good oilfield practice and with all proper zeal and diligence and shall maintain at
least two strings in continuous operation (allowing a reasonable time between the
completion of one well and the commencement of the new) until a sufficient number
of wells have been drilled within the productive area covered by this lease to
meet the requirements of good oilfield practice. Provided, however, that such
obligation to maintain at least two strings in continuous operation shall be
suspended during such time as the wells then drilled are capable of a total daily
average production of at least one thousand tons of oil.

Article X
In the event of the Company failing within six months of the end of any
calendar half-year to pay to the Sheikh the royalties due in respect of that calendar
half-year or failing, save for causes beyond their control, to carry out their obliga­
tions under this lease, the Sheikh shall have the power to terminate this lease in
which case the provisions of the last paragraph but one of Article II shall apply.

Article XI
The Company shall have the right to terminate this lease upon giving not less
than three months’ written notice to the Sheikh of the intention of the Company so
to do, and accordingly upon the expiration of such notice this lease shall
absolutely determine upon the date fixed for determination in such notice, save as
regards matters to be done at or after such determination.
Article XII
The Company 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 and to prevent any
uncontrolled flow of oil.
Article XIII
The rights granted by this lease shall not be conveyed to a third party without
the consent of the Sheikh acting under the advice of the Resident in the Persian
Gulf. Such consent shall not be unreasonably withheld.

Article XIV
The Company as assignees of the Eastern & General Syndicate Limited shall
be and remain a British Company registered in Canada but shall maintain an
office in Great Britain which shall at all times be in the charge of a British subject
who shall be the recognised channel of communication between the Company and
His Majesty’s Government in the United Kingdom of Great Britain and Northern
Ireland.
Article XV
# Of the five Directors of the Company one Director shall at all times be a
British subject who shall be persona grata to His Majesty's Government. His
selection for appointment as Director shall be made in consultation with His
Majesty’s Government and his salary as Director shall be provided by the
Company. A reasonable time shall be allowed for the replacement of the British
Director in the event of this post falling vacant.

Article XVI
u Jhe Company shall at all times maintain in Bahrein an official to be called the
Chief Local Representative” of the Company whose appointment shall be
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