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bound to start drilling within nine years. This period was extended by six years in1946 and by a further five in 1951 so that the company are now under no obligationto drill until 1957.(1) No drilling has yet been undertaken within the limits of theState.
84. In 1946 the Ruler agreed to the exploration by a geological party of theJabal Faiyah area. The exploration was duly carried out under the protection ofthe Bani Qitab who would not allow any of the Ruler's representatives toaccompany the party.
85. The Regent of Kalba granted a concession to Petroleum Development(Trucial Coast) Limited on December 20, 1938.(^) It covers the territory subjectto the government of the Ruler of Kalba and its territorial waters. The annualpayment to be made to the Ruler until oil is discovered in commercial quantitiesis Rs. 24,000. There is no obligation to start drilling within a specified period andno drilling has yet been undertaken. The company entered into a PoliticalAgreement(*2) with His Majesty's Government regarding the concession but it wasnot communicated to the Regent. The Ruler of Sharjah accepted the obligationsdevolving on him under this concession when Kalba was reincorporated withSharjah in 1952(**) (paragraph 23 above).
86. In June 1949 the Ruler issued his declaration of jurisdiction over thesea-bed. In 1952 Petroleum Development (Trucial Coast) Limited entered intonegotiations with him for a concession for it but his demands were so exorbitantthat they broke them off. They resumed them in 1953 and in November of thatyear, after they had agreed to increase the annual payment due under theconcession of 1937 from Rs. 30,000/- (paragraph 83 above footnote (6%)) toRs. 85,000/-,(74) he signed a statement confirming that the concession covered allthe sea-bed and sub-soil outside the territorial waters of Sharjah over which hisjurisdiction extended or might extend in the future.(**)
(e) Ajman87. In 1939 the Ruler granted Petroleum Development (Trucial Coast)Limited sole exploration rights for a total of six years. This period wassubsequently extended. On January 31, 1951, he granted the company a concessioncovering all his territory including its territorial waters and the sea-bed outsidethem for a period of 75 years, on a down payment of Rs. 150,000/- with an annualpayment of Rs. 50,000/ - until the discovery of oil in commercial quantities andthe usual royalty of Rs. 3 per ton.(16) There is no obligation to drill within aspecified period. A Political Agreement which contained special clauses relatingto the sea-bed (paragraph 74 above) was executed between His Majesty'sGovernment and the Company in July 17, 1951.("")
(f) Umm al Qaiwain88. The Ruler of Umm al Qaiwain granted a concession to PetroleumConcessions Limited, with the right of transfer to Petroleum Development (TrucialCoast) Limited on March 20, 1945.(78) It covers the State of Umm al Qaiwainincluding its islands and territorial water and provides that when the territoriallimits of the State have been determined the concession will be coterminous with thelimits so determined. There is also a provision relating to the possible formationof a Neutral Zone adjacent to the State differing somewhat from that containedin the Abu Dhabi concession (paragraph 77 above). The annual payment untiloil is discovered in commercial quantities is Rs. 24,000. There is no obligationto start drilling within a specified period and no drilling has yet been undertaken.The company entered into a Political Agreement with His Majesty's Governmentregarding the concession but it was not communicated to the Ruler.(**) He did
(1) No. 9 (a) and (b) IV, O.A.C.(71) No. 11 IV, O.A.C.(72) No. 12 IV, 0.A.C.(13) No. 11 (C) and (d) IV, 0.A.C.(74) No. 9 (C) IV, O.A.C.(15) No. 9 (d) IV, O.A.C.(76) No. 13 IV, O.A.C.(17) No. 14 IV, O.A.C.(78) No. 15 IV, O.A.C.(79) No. 16 IV, O.A.C.
