Page 36 - The Persian Gulf Historical Summaries (1907-1953) Vol III

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(a) The minimum royalty payable by the Company to the Shaikh during the
period of fifteen years from date of this Deed shall be at the rate of not
less than Twelve and one-half lakhs of Rupees (Rs. 12,50,000) per
annum which shall be increased to the rate of Seventeen lakhs of
Rupees (Rs. 17,00,000) per annum during so much of the period of
fifteen years as shall remain unexpired after oil in commercial quantities
is found within the Additional Area, and the wells drilled within the
Shaikh’s present and future dominions are capable of producing in
accordance with good oilfield practice the quantity which would bear
royalty of not less than Seventeen lakhs of Rupees (Rs. 17,00,000) in
any one year of computation, and
(b) Following the fifteen-year period and continuing so long as the Lease is in
operation, the Company will pay to the Shaikh not less than the rate
of One and one-half lakhs of Rupees (Rs. 1,50,000) per year in respect
of royalties but that sum shall be increased to the rate of Three lakhs of
Rupees (Rs. 3,00,000) if oil in commercial quantities should have been
found within the Additional Area either during or after the fifteen-year
period and the wells drilled within the Shaikh’s present and future
dominions are capable of producing in accordance with good oilfield
practice the quantity, which would bear a royalty of not less than Three
lakhs of Rupees (Rs. 3,00,000) in any one year of computation, and
(c) The foregoing provisions as to minimum royalties contained in sub­
clauses (a) and (b) of this Article shall be subject to suspension under
the terms of Article 8 of this Deed.
Article 8
The following provisions shall as from the date of this Deed be substituted for
the existing Article IV of the Lease, namely: —
The Shaikh shall give all the protection in his power to the Company and
to its staff and labourers in any part of his territory from thefts, highway
robbery, assault, etc. Similarly the Shaikh shall 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 is delayed in or prevented from carrying on its work or
in fulfilling any of its duties or obligations under the Lease as altered by the
First Supplemental Deed or this Deed by such events as are mentioned in this
Article or by force majeure either within the Shaikh’s present and future
dominions or elsewhere, than the Company shall be free from all liability in
respect of any such failure or delay and the period of every such delay shall
be added to the period of fifty-five years granted by this Deed; neither shall
any minimum royalty be payable in respect of any such delay.
“ Force Majeure ” as used in this Deed includes the Act of God, vis major,
war, insurrection, riot, civil commotion, tide, storm, tidal wave, flood, lightning,
explosion, fire, earthquake, malice or negligence or default of any third party
and any other happening (whether solely due to the forces of nature or not)
which the Company could not reasonably have foreseen or if it had foreseen,
could not reasonably have prevented, averted or controlled.

Article 9
During the period of fifteen years from the date of this Deed not less than one-
half the oil processed in the Bahrein Refinery up to a total refinery throughput of
20,000 barrels daily, and if oil in commercial quantities is found within the
Additional Area then not less than one-half the oil processsed in the Bahrein
Refinery up to a total refinery throughput of 25,000 barrels daily, shall be royalty-
paying oil producing in the Shaikh's present and future dominions, provided the
wells drilled are capable of producing that much oil in accordance with good oilfield
practice and subject to the delay provisions of Article 8 of this Deed.

Article 10
The Company will not drill on Urn Nasan Island nor within the present
municipal boundaries of Manama and Muharraq as defined in the Lease, nor within
300 yards of the Shaikh’s existing hunting lodges, namely at Romaitha, Amar and
A1 Umattala without first obtaining the permission of the Shaikh or his Successors
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