PUBLIC RECORD OFFICE
Reference :-
6
CO885
22 PUBLIC RECORD OFFICE, LONDON
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It may not be irrelevant to remark in this connection that the New Zenland Government have awarded bonuses to certain oil companies who have succeeded in winning and refining substantial quantities of oil.
The bonus system has been imitated in the Australian Commonwealth, e.g., in the Queensland Shale Oil Bounty Regulations, 1910, and in October, 1912, as there was evidence from the debates in the Queensland Parliament of the intention of the Government to control the mineral oilfields of the State, the Colonial Office and Admiralty agreed that similar representations to those which had already been made in the case of New Zealand should be addressed to the Government of Queensland.
In the case of British North Borneo, it was found to be impossible to introduce legislation of the necessary char- acter, as His Majesty's Government had no power to interfere in internal affairs, except in regard to certain matters specified in the charter of the British North Borneo Company which do not include the grant of oil rights.
It was with much satisfaction, therefore, that it was found possible to provide in the Mining Enactment for the neighbouring State of Brunei, over which there is a British protectorate, that, "it shall be lawful for the lessor by the notice in writing from time to time to impose upon lessee, vary, and rescind such restrictions and conditions as to the lessor shall appear necessary or desirable for the purpose of securing an adequate supply of fuel oil for the ships of H.B.M. Navy or for other purposes of H.B.M. Admiralty, and for the purpose of securing the refinement in the State or in British territory of all oil which may be won from the said oil wells."
The action detailed in the foregoing paragraphs was the result of joint action between the Colonial Office and the Admiralty, but early in 1911 the joint interdepart- mental committee was resuscitated and has been and is still dealing with any questions that arise.
During the last few years oil leases have been granted to various oil companies in Trinidad, Nigeria, &c., în all of which the cardinal principles underlying the Government policy since the inception of the use of oil in His Majesty's In certain cases, small Navy have been adhered to. concessions have been made in matters of detail in answer to trade representations or to meet the industrial necess- ities and local sentiment of particular colonies; but while it has been found necessary in some cases to relax slightly the conditions appertaining to the refining of the oil in the direction of providing that the commercial prospects of any venture should not be prejudiced by the compulsory production of oil fuel to the Admiralty specification, and to make it clear that the right of pre-emption shall not entail upon all companies any loss which would not be taken into account in the price paid for the oil by Govern- ment, no departure from the general principles enunciated above has been permitted.
N.B.-In the case of Southern Nigeria, the prospecting company declined to agree to the clause making refining in the Colony imperative, on the ground that they did not contemplate the work of refining on their own behalf, and that the company was only constituted with a view to carrying out drilling operations, and actually winning the crude oil. The Admiralty had to be content with a guarantee from the company that the latter would do everything in their power to render effective the right of
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preemption by the Imperial Government of the products of refining.
It
will
may
be mentioned in conclusion that, at the instiga. tion of the Joint Committee, geological surveys of the petroliferous areas in Trinidad and Barbados have been undertaken by an expert geologist on behalf of the Colonial Governments. The Committee feel that this method of scientific investigation as a preliminary to actual drilling of the utmost value; in fact this has already prove proved to be the case in Trinidad and while the onus of making pioneer explorations is imposed in the first instance upon the concessionaires, no opportunity is overlooked of suggesting to the Crown Colonies and the Dominions the expediency of undertaking an official survey by a reputable expert whenever the prospects and local conditions appear to warrant such a course. Experimental drilling is not undertaken by Government; the actual testing of any promising oil area by the drill is left to private enterprise at a stage subsequent to the report of survey.
January, 1913.
Oil Mining Ordinances in Crown Colonies, &c., since 1904. 43 of 1904 (now No. 8/1904 in Revised
Edition).
Barbados.
Gold Coast.
33 of 1908 (now No. 12/1908 in Revised
Edition).
15 of 1907 (and see Ashanti, 1 of 1908,
which applies to the Gold Coast Ordinance).
Brunei. 2 of 1908.
Southern Nigeria. Cap. 130* Revised Laws, and Nyasaland. 5 of 1910.
19 of 1909.
British Guiana. 20 of 1910 (and 1 of 1903).
25 of 1911. Trinidad and Tobago. 33 of 1912.
Northern Rhodesia, 5 of 1912.
East Africa Protectorate. 6 of 1912.
No copy of Cap. 130, Southern Nigeria, available: its substance is to be found in Ordinances 12, 18, and 21 of 1907, copies of which are put up.
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PUBLIC RECORD OFFICE
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