(2) If the Licensee shall, within 28 days of the receipt from the Minister of an account of expenditure incurred in respect of any works executed by him under the provisions of this licence, fail to discharge any such account the Minister may recoup himself for such expenditure from and to the extent of any such deposit or, as the case may be, the bankers guarantee.

    (3) Subject to the provisions of sub-clause (2) hereof upon the determination of this licence any such deposit shall be returned to the Licensee or any such bankers guarantee shall be released.

(a) the Licensee shall apply to the Minister in writing for his consent and such application shall state, where the proposed assignee is an individual, his address, nationality and occupation, and where the proposed assignee is a company, the nature of and the principal place of business of the company, the names and nationality of the directors thereof and the names and holdings of the principal shareholders;

(b) the Licensee shall with his application furnish evidence as to the financial and technical qualifications of the proposed assignee and as to the latter's ability to comply with the terms and conditions of this licence and shall forthwith upon request by the Minister furnish any further evidence as to such matters which may be required; and

(c) where the Licensee is applying for the consent of the Minister to an assignment of the said rights in respect of part only of the licensed area he shall with his application deliver two copies of the Ordnance Survey map annexed to the licence upon which shall be delineated both the part or parts of the licensed area in respect of which the said rights are proposed to be assigned and the part or parts thereof in respect of which the said rights are to be retained.

    (3) No assignment may be made of the rights granted by this licence in respect of part only of the licensed area unless the part of the licensed area in respect of which such rights are proposed to be assigned and the part thereof in respect of which such rights are to be retained by the Licensee comply with regulation 3.

    (4) The Licensee shall not sublicence or subject as aforesaid part with the possession of any of the rights hereby granted.

(a) the Licensee, being a company, shall be or become controlled directly or indirectly by an alien or a company incorporated outside Great Britain or Northern Ireland; or

(b) the Licensee shall, with the consent in writing of the Minister, assign the rights granted by this licence in respect of the licensed area or any part thereof to a company controlled directly or indirectly by an alien or by a company incorporated outside Great Britain or Northern Ireland;

then and in any such case the following provisions shall apply - 

(a) at least one of the directors shall be a Commonwealth citizen.

(b) at all times during the term hereby granted or any renewal thereof a majority of the persons employed by the Licensee in or about the licensed area in connection with the exercise of the rights granted by this licence shall be Commonwealth citizens.

    (2) This licence shall be determined if the Licensee shall be or become controlled directly or indirectly by a national of or by a company incorporated in any country the laws and customs of which do not permit Commonwealth citizens or companies incorporated in Great Britain or Northern Ireland or companies incorporated in that country controlled directly or indirectly by Commonwealth citizens or companies incorporated in Great Britain or Northern Ireland to acquire hold and operate petroleum concessions on conditions which in the opinion of the Minister are reasonably comparable with the conditions upon which such rights are granted to nationals of that country with the addition of conditions corresponding to those imposed by this clause.

(a) (Avoidance of harmful methods of working);

(b) (Provision of storage tanks pipes pipelines or other receptacles);

(c) (Protection of mines and coal seams);

(d) (Disposal of waste oil, salt water and refuse);

(e) (Measurement of petroleum obtained from the licensed area);

(f) (Abandonment and plugging of boreholes);

(g) (Expiry or determination of rights);

then and in any such case the Minister shall be entitled after giving to the Licensee reasonable notice in writing of such his intention to execute any works which in the opinion of the Minister or his agents may be necessary to secure the performance of the said obligations or any of them and to recover the costs and expenses of so doing from the Licensee.

    (2) Any person authorised by the Minister may at all reasonable times inspect and make abstracts or copies of any logs; records, plans, maps or accounts which the Licensee is required to keep or make in accordance with the provisions of this licence.

(a) to examine the boreholes, wells, plants, appliances, buildings and works made or executed by the Licensee in pursuance of this licence and the state of repair and condition thereof; and

(b) to inspect and check the accuracy of the weighing or measuring appliances weights measurements logs records plans and maps which the Licensee is required to keep or make in accordance with the provisions of this licence; and

(c) to inspect the samples of strata petroleum or water and the accounts which the Licensee is required to keep in accordance with the provisions of this licence; and

(d) to execute any works which the Minister may be entitled to execute in accordance with the provisions of this licence;

    (2) if and whenever any of the minimum annual payments or royalties reserved by this licence or any part thereof respectively shall be in arrear or unpaid for 28 days next after any of the days whereon the same ought to be paid (whether the same shall have been legally demanded or not) then and so often as the same may happen the Minister may (as an additional remedy and without prejudice to the power of distress and other rights and remedies to which they would be entitled) enter into and upon any land which shall for the time being be possessed or occupied by the Licensee for the purposes of this licence or the exercise of any of the rights thereby granted and may seize and distrain and sell as landlords may do for rent in arrear all or any of the stocks of petroleum, and products thereof, horses, engines, machinery, tools, implements, chattels and effects belonging to the Licensee which shall be found in or upon the land so entered upon and out of the moneys arising from the sale of such distress may retain and pay all the arrears of the said rents and royalties and also the costs and expenses incident to any such distress and sale rendering the surplus (if any) to the Licensee.

Provided that the rates of royalty payable during the said further term shall be rates of royalty greater by 25 per cent. than the rates of royalty payable in accordance with the provisions of this licence at the date of the said notice, or, the rates or royalty which shall have been ordinarily reserved in original mining licences granted by the Minister during the three years next before the date of the said notice, whichever rates shall be the less, or if no such licences shall have been granted during the said period of three years such rates of royalty as may be determined by agreement between the Minister and the Licensee or in default of agreement by arbitration but so that such rates of royalty shall not be greater by more than 25 per cent. than the rates payable in accordance with the provisions of this licence at the date of the said notice.

    (2) In this clause the expression "rates of royalty" includes minimum annual payments.

(a) the Licensee shall upon being so required by notice in writing by the Minister co-operate with such other persons, being persons holding licences under the Act of 1934, or under Part I of the Act of 1998, in respect of any part or parts of the oil field (hereinafter referred to as "the other Licensees"), as may be specified in the said notice in the preparation of a scheme (hereinafter referred to as "a development scheme") for the working and development of the oil field as a unit by the Licensee and by the other Licensees in co-operation and shall, jointly with the other Licensees, submit such scheme for the approval of the Minister;

(b) the said notice shall also contain a description by reference to a map of the area or areas in respect of which the Minister requires a development scheme to be submitted and shall state the period within which such scheme is required to be submitted for approval by the Minister;

    (2) if a development scheme shall not be submitted to the Minister within the period limited in that behalf by the said notice, or if a development scheme submitted in pursuance of the foregoing provisions of this clause shall not be approved by the Minister, he shall himself prepare a development scheme which shall be fair and equitable to the Licensee and the other Licensees, and the Licensee shall perform and observe all the terms and conditions thereof;

    (3) if the Licensee shall object to any such development scheme prepared by the Minister he may within 28 days from the date on which notice in writing of the said scheme shall have been given to him by the Minister refer the matter to a single arbitrator. The said arbitrator shall be appointed either by agreement between the Minister the Licensee and the other Licensees or in default of agreement by the Lord Chief Justice of England for the time being. Notwithstanding any such reference to arbitration the Licensees shall, unless the arbitrator otherwise determines, perform and observe the terms and conditions of the development scheme pending the decision of the arbitrator.

Provided always that the rate of royalty payable in respect of crude oil shall not be less than 15p, and shall not exceed 30p, per 1.0160469088 tonnes and that the rate of royalty payable in respect of casinghead petroleum spirit shall not be less than 1p, and shall not exceed 16p, per 87.284928 litres.

    (2) A revision of the rates of royalty in pursuance of this clause shall be determined by agreement between the Minister and the Licensee or, in default of agreement, by arbitration.

    (3) In this clause "the reference date" means - 

(a) where the rates of royalty have previously been revised in accordance with this licence as then in force, the date as from which the last such revision took effect;

(b) in any other case, 1st January 1941.

(a) the quantity of crude oil won and saved from the licensed area; and

(b) the method and results of tests made on the crude oil; and

(c) the quantity of crude oil refined and the products recovered therefrom; and

(d) the quantity of crude oil otherwise disposed of and the manner of its disposal; and

(e) the quantity of natural gas won and saved from the licensed area other than natural gas used for the purpose of carrying on drilling and production operations and pumping to field storage and refineries; and

(f) the quantity in litres of the casinghead petroleum spirit recovered; and

(g) the quantity of crude oil or products thereof or casinghead petroleum spirit used for drilling or production operations or pumping to field storage and refineries; and

(h) such further particulars and statistics as the Minister may from time to time require.

    (2) The Licensee shall within two months after the end of each year of the term hereby granted or any renewal thereof deliver to the Minister an abstract in a form from time to time approval by the Minister of the said accounts for each such year together with a statement in like form of all royalties payable in respect of each such year.