Page:United States Statutes at Large Volume 58 Part 2.djvu/466

 INTERNATIONAL AGREEMENTS OTHER THAN TREATIES [58 STAT. producing and delivering at least 4,000 barrels of crude petroleum per day to the Government and the contractor shall be obligated, during the same period, to keep the proven area capable of delivering at least 4,000 barrels per day. No action under this clause 3 shall prevent or impair the supplying of the local requirements for petroleum or petroleum products except with the consent of the Government of Canada. 4. That in lieu of the prices for crude oil mentioned in Sections 8.a. and 10 of Article I of the original contract, the Government, after May 1, 1944, and during the remaining life of said Contract No. W-412 - eng-52 and its supplemental agreements (all as amended pursuant hereto), will pay the contractor for crude petroleum delivered from the field tank batteries or delivered to the refinery storage for proc- essing from wells drilled under said last named contract, 20 Cents Canadian currency per barrel. The Government will also continue to reimburse the contractor for all costs as provided in said Contract No. W-412-eng-52 and its supplemental agreements but the contractor will pay any royalty owed to private third parties. 5. The contractor is embarking on an extensive exploratory pro- gram in the Northwest Territories and as conducive to efficiency, ex- pedition and economy of operation for both parties, provision shall be made for such exchanges, consolidations, joint usage and divisions of expenses relating to production, general supervision, general office, utilization of employees, establishments, tankage, facilities, and serv- ices and furnishing or sale of materials and supplies on hand as may be agreed upon by the Contracting Officer and the Contractor's Project Manager as being of mutual benefit. 6. That on the termination of said contract No. W-412 -eng-52 (as amended pursuant hereto), the contractor will give to the Govern- ment of the United States the continuing right to purchase for its own use but not for resale, at the wellhead or in the contractor's field tanks, crude petroleum from the said proven area to an amount which shall not exceed one-half of the recoverable reserves remaining in the proven area at the said contract termination last above mentioned or 30,000,000 barrels, whichever shall be the smaller, and in addition thereto the said Government shall have the continuing right to purchase for its own use but not for resale 10% of the recoverable reserves of crude petro- leum found in each field hereafter successively discovered by drilling and developed by the contractor in the Northwest Territories until there shall be a combined total of 60,000,000 barrels of crude petroleum from the proven area and the fields so discovered and developed subject to the aforesaid continuing right to purchase of the Government. The Government shall pay for the said crude oil the cost thereof to the con- tractor, including all direct and indirect expenses incurred in con- nection with finding, development and production thereof, with proper provisions for depreciation and depletion, but no depreciation or de- pletion shall be charged in relation to the buildings, installations and equipment covered by clause 7 hereof or in relation to the monies ex- pended by the Government through the contractor on exploratory

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