CO885-(15-16) — Page 641

17495

PUBLIC RECORD OFFICE

Reference :-

TTIC.O.88

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO

16 PUBLIC

RECORD OFFICE, LONDON

No. 163.

(TRINIDAD.)

LAW OFFICERS to COLONIAL OFFICE.

[Agreement with the Central Mining and Investment Corporation, Limited, as to the construction and use of pipe lines for the conveyance of oil.]

SIR,

Law Officers' Department,

Royal Courts of Justice,

23rd May, 1913. WE were honoured with your commands signified to us in Mr. A. E. Collins's letter of the 10th instant, stating that he was directed by you to request that we would be good enough to consider the two accompanying alternative drafts (marked A and B) of an Agreement as to the construction and use of pipe lines for the con- veyance of oil which the Central Mining and Investment Corporation, Limited, desire to make with the Government of Trinidad; that he was to ask us to state whether, in our opinion, that Government could properly enter into the Agree- ment in question in either of the two forms submitted, regard being had to the terms of an existing contract with another Company-the United British West Indies Petroleum Syndicate; and, if not, whether either draft could be so amended that the Government could properly agree to it.

That Mr. Collins was to explain that it was provided by Section 4 of the Petro- leum (Pipe Lines) Ordinance, 1911, that it should not be lawful for any person to use or to lay and connect on any land in the Colony (whether such land was or was not the property of any such person) any pipes for conveying oil without the per- mission of the Governor in Executive Council first had and obtained in the manner prescribed in the section. That Sections 8 to 11 of the Ordinance provided a pro- cedure for the compulsory acquisition of way-leaves for pipe lines.

That it was further provided by Section 18 of the Ordinance that the Governor in Executive Council might declare any pipe line or system of pipe lines to be common carriers, and that after the publication of such declaration in the Royal Gazette the owners or operators of every such pipe line or system of pipe lines should, in accordance with rules and regulations to be made by the Governor in Executive Council, make full and adequate provision in regard to the carriage of crude oil.

That since the Ordinance was passed permission had from time to time been granted to lay and use pipe lines, but that no pipe lines had been declared to be common carriers under Section 18, and that no regulations with regard to common carriers had been made.

That in a despatch which you addressed to the Governor on the 19th February, 1912, you explained the policy which was to be adopted by the Colonial Government with regard to the exercise of their powers under the Ordinance. That it would be seen, on reference to the seventh paragraph of that despatch, that the Governor was authorised to announce that, in the absence of exceptional circumstances, per- mission for the laying and use of pipe lines on private property, including an area of Crown land held under an oil-mining lease, would be given under Section 4 of the Ordinance as a matter of course.

That it would also be seen, on reference to the sixth paragraph of the despatch, that a promise was given that the obligation of acting as common carriers would not, in ordinary circumstances, be imposed on pipe lines laid wholly on a single" private property (including an area of Crown land held under an oil-mining lease) and connecting wells with tanks and tanks with a shipping place on such property.

That, on the 21st January, 1913, the Crown Agents for the Colonies, on behalf of the Government of Trinidad and with your approval, entered into an Agreement with the United British West Indies Petroleum Syndicate, Limited, in which, subject to the approval of the Governor, they defined the terms of an exploration licence, a prospecting licence, and an oil-mining lease, to be granted to the Syndicate, and undertook to execute a Pipe Line Agreement in the form scheduled on page 29 of the print. That the Governor's approval having been signified, the Pipe Line Agreement was executed on the 28th April, 1913. That it was accordingly binding on the Government of Trinidad, and that any other Agreement as to pipe lines which that Government might make with the Central Mining and Investment Corporation, or any other Company, must be so worded that the Governor should not at any

(30988-2.) Wt. 183-792. 23. 7/13. D & 8.