PUBLIC
RECORD OFFICE
5
19
Reference :--
C.O. 885
24 PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH—NOT TO
Surface Rent.
(Trinidad model, 1914. Part Y., Bection 4.)
Lessee to
be British
subject. (Trinidad model,
1914.
Part vii., Section 1.)
Not to be
controlled
by foreign-
ers. (Trini-
dad model,
1914.
Part vii.,
Section 1.)
Boundary
marks. (Tri-
8
the amount of royalty calculated according to the amount of oil actually won by the lessee.
(iv) the Governor may in his discretion when granting a lease determine that any sums payable in any year by way of royalty, whether minimum or otherwise, shall be payable half-yearly; and in that event the term year in this section shall, except in subsection 1, be read as meaning half-
year.
34. The lessee shall pay such yearly rent for each acre or part of an acre of surface land for the time being actually occupied by him for any of the purposes of his lease, with the exception of land used as roads as may be prescribed in his lease or by regulations to be made by the Governor. Provided that the Governor may in his discretion from time to time agree to accept from the lessee for a period a commuted annual payment in lieu of surface rent.
35. (i) No lease shall be granted, transferred, or assigned to or held by any person who is not a British subject, and a lessee being a company shall be and remain a British company registered in Great Britain or a British Colony and having its principal place of business within His Majesty's dominions and shall at all times make provision to the satisfaction of the Governor that the company shall be and remain a British company within the meaning of this section, and that the Chairman and Managing Director (if any) of the company and a majority of the other Directors shall at all times be British subjects; (ii) the local General Manager or other person having the principal control over the undertaking of a lessee not resident in the Colony or of a lessee being a company and the prescribed proportion of the local staff employed by any lessee shall be British subjects.
The
36. (i) Neither a lessee nor premises demised by a lease shall at any time be or become directly or indirectly controlled or managed by foreigners or a foreigner or any foreign corporation or corporations. Governor may at any time by notice in writing require a lessee to produce proof to his satisfaction that the lessee is a British subject, or. being a company, is a British company, and that neither the lessee nor the demised premises are directly or indirectly controlled or managed by foreigners or a foreigner or by any foreign corporation or corpora- tions. If such proof shall not be produced within the time to be fixed by such notice, the Governor may forthwith by writing under his hand declare the lease to be cancelled and all right, interest, and title of the lessee in the lease shall thereupon determine, save in so far as the Governor may in his absolute discretion provide;
(ii) the Governor shall not be required to refer any dispute as to any matter arising under this or the last two preceding sections to arbitration in accordance with any regulation under this Ordinance providing for the reference of disputes to arbitration, and any general agreement by the Governor with the lessee to refer any dispute that may arise under the lease to arbitration shall be held not to apply to any dispute as to any matters arising under this or the last two preceding sections unless in such agreement the Governor shall have expressly included such matters and shall have expressly named in the agreement the section of this Ordinance referring to them.
37. A lessee shall at his own expense forthwith erect and at all times maintain midad model, and keep in repair boundary marks according to the demarcation shown in any plan or plans annexed to his lease so that the boundaries of the land specified in his lease may at all times be clearly defined.
1914. Part. vil., Section 5.)
Lessee to work con- tinuously. (Trinidad model,
38. A lessee shall within a period to be fixed by the Governor start and open up boring operations to the satisfaction of the Governor and carry on work with all due diligence and continuously in an efficient and workmanlike manner and in accordance with the conditions laid down in his lease and in this Ordinance and 1914. Part any regulation made thereunder, and shall maintain in good repair, working order, and condition all productive borings when opened without doing or permitting to be done any unnecessary or avoidable damage to the surface of the lands in or upon which the said borings or other works are situated.
vii.. Sec-
tion 4.)
Refinery. (Trinidad
model,
1914.
Part vil.,
Section 5.)
39. As soon as a lessee's output of crude oil of a quality suitable for refining amounts to the quantity specified in the lease or prescribed in any regulation made under this Ordinance, such output being assessed on the average daily production
9
over a period of not less than six consecutive calendar months without including the production of any wells which may not be under control, the Governor may require the lessee, unless he shall have previously obtained permission in writing from the Governor to make other arrangements for the refinement of the oil, to commence the erection of a refinery capable of dealing with at least fifty per cent. of the output of oil from the said lands, and of so treating the oil as to produce oil fuel that shall comply with the Admiralty specification subject to any alterations which may be made therein by mutual agreement. The lessee shall complete the refinery and put and maintain it in efficient working order with due diligence and despatch, but in any event within two years from the date on which the site of such refinery shall have been definitely approved or the production have reached the quantity deter- mined by the Governor, ascertained as above, whichever event shall happen last. The lessee shall from time to time make such additions to this refinery as may be requisite for dealing with at least fifty per cent, of the crude oil which the wells are capable of yielding annually at the rate of output ascertained as aforesaid.
The lessee shall also, if required by the Governor, provide tankage capable of containing a quantity equal to at least fifty per cent. of the capacity for the time being of such refinery.
The proposed sites of such refineries and tanks shall be submitted by the lessees for the previous written approval of the Governor within two months from the date on which the lessee shall have been required to erect them, and in giving or with- holding his approval the Governor shall have due regard to the commercial interests of the undertaking.
40. The Governor shall have the right of pre-emption of all oil won under a Governor lease and of the products thereof, and may require a lessee to produce oil fuel of such to have consistency, description, and flash point as shall be set out in the Admiralty right ofpre- specification, subject to any alteration which may be made therein by mutual agree-idad
emption. ment. The lessee shall with every possible expedition, and so as to avoid demurrage model, on the vessel or vessels engaged to convey the same, do his utmost to deliver all oil 1914. or products of oil purchased by the Governor under this clause in the quantities, at Part vii., the time, and in the manner required by the Governor at a convenient place of ship- Section
12.) ment or at a place of storage in the Colony to be determined by the Governor, whether belonging to the Government or otherwise.
41. Should the Governor exercise the right of pre-emption the subject of the Demur- last preceding clause and a vessel employed to carry any such oil or products thereof rage. on behalf of His Majesty be detained on demurrage at the port of loading, a lessee (Trinidad
model, shall pay the amount due for demurrage according to the terms of the charter party 1914. unless the Governor shall be satisfied that the delay is due to causes beyond the control Part vii. of the lessee.
Section 13.)
42. A lessee shall if required by the Governor convey with all reasonable Convey- despatch by his existing means of transport (1) any oil or products thereof purchased ance of oil by the Governor from the lessee's refining works or place of storage to their ordinary for Gover place of shipment; and (2) any net crude oil taken by the Governor in lieu of royalty nidad mo. nor. (Tri- from the place or places of production to such place within the Colony as the del, 1914. Governor may determine, but shall be entitled to make his ordinary charge or, if there Part vi
be no ordinary charge, a reasonable charge for such conveyance. Any person guilty Section 14.) of a breach of this section shall be liable to a penalty not exceeding
in pre-
emption.
(Trinidad
43. The price to be paid for all oil or products of the refining or treatment of Prices such oil taken in pre-emption by the Governor shall be either (1) as specified in a separate agreement or (2), if no such agreement shall have been entered into prior to the exercise of the right of pre-emption, the fair market price at the time being as model, the same shall be settled by arrangement between the Governor and the lessee, and 1914. in default of such agreement the price to be paid shall be referred to two arbitrators, Part vii., one to be chosen by the Secretary of State for the Colonies and the other by the 15.) lessee, with power to appoint an umpire in case of disagreement, such arbitration to be held in England and to be deemed a reference to arbitration under the pro- visions of the Arbitration Act of 1889 of the Imperial Parliament or any statutory modification or re-enactment thereof for the time being in force.
To assist in arriving at a fair market price the lessee shall furnish for the confidential information of the Governor, if so required, particulars of the quantities, descriptions, and prices of oil or products sold to other customers and of charters entered into for freight, and shall exhibit to the Governor original or authenticated copies of contracts and charter parties entered into for the sale or freightage of such oil or products.
Section