Page 16 - The Persian Gulf Historical Summaries (1907-1953) Vol III_Neat

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Article VI
Within 60 days from the signature of this Agreement the Company, in
consideration of the assistance and protection to be afforded to their employees,
shall pay to the Shaikh the sum of Rupees 10,000 and a further sum of Rupees
10,000 on each anniversary of the grant of the exploration licence throughout the
currency of that licence, and on the grant of a prospecting licence under Article III
the Company shall pay to the Shaikh a further sum of Rupees 10,000 and in
addition a further sum of like amount on each anniversary of the grant of a
prospecting licence throughout the currency of that licence. Except for payments
in respect of royalty which shall become payable under Article IX of the Second
Schedule to this Agreement in respect of oil won in excess of 100 tons* they shall
not be liable to pay any further sums to the Shaikh unless they receive a mining
lease from him; but if they receive such mining lease they shall pay him the sums
provided in the lease, but no more.
Article VII
In the event of the Company failing to discover oil in sufficient quantity they
shall have the right to stop work at their option and the Shaikh shall have no
claim to any payment or compensation.
Similarly, in the event of the Company failing to conform to the terms of this
Agreement, the Shaikh acting on the advice of the Political Resident, has the right
to terminate the Agreement provided that in default of agreement on this question
either party shall have the right to demand that the question at issue shall be
submitted to arbitration as provided in Article IX below.
Article VIII
The Shaikh solemnly declares that he will carry out all the conditions on this
contract willingly and faithfully, and that he and his heirs and successors shall be its
guarantors and shall accept full responsibility for any claims by any persons
questioning the validity of any stipulation on this account.
This contract cannot be cancelled except as provided above and shall remain in
force for the period of the Company’s concession, or any extension or renewal
thereof.
Article IX
In the event of there arising between the parties to the present concession any
dispute or difference in respect of its interpretation, or the rights or responsibilities
of one or the other of the parties therefrom resulting, such dispute or difference
shall be submitted to two arbitrators one of whom shall be named by each of the
parties and to an umpire who shall be appointed by the arbitrators before they
proceed to arbitrate.
The decision of the arbitrators, or in the event of the latter disagreeing that of
the umpire, shall be final.
Article X
In the event of any disagreement regarding the meaning or interpretation of
any clause in this Agreement or its schedules, the English version shall be regarded
as correct.
FIRST SCHEDULE
Privileges to be enjoyed by the Company under the Exploration Licence
I. Free access for their agents and servants necessarily employed by the latter
to all parts of the territory under the control of the Shaikh whether private or
public property, saving only sacred buildings, shrines, and graveyards.
II. Free use of water for the same.
III. Free use of fuel lying on land the property of the Shaikh for the same.
IV. The risht to purchase fuel and food supplies of every kind for man and
beast beine the private property of the Shaikh’s subjects, at current market rates,
which ratefn default of agreement between the parties shall be fixed by the Shaikh
or his agents, subject to the right of the Company to appeal to the British Political
Agent at Bahrein if they find it necessary.
* Words in italics added under terms of Indenture of February 15. 1933 (reproduced as (b)
on page 19).