Page:United States Statutes at Large Volume 58 Part 2.djvu/467

 1387 58 STAT.] CANADA-CANOL PROJECTS, REVISION-JUNE 7, 1944 work and, in addition to the said cost, the Government shall pay to the contractor 20 Cents Canadian currency per barrel. The above right to purchase of the Government shall be subject to the following conditions: (1) To the prior and preferred supplying of all local require- ments for crude petroleum and petroleum products currently. (2) The above right to purchase shall, from and after May 1,1954, be exercised currently and the Government of the United States shall accordingly take delivery during each month of 20% of the respective amounts of crude oil which the con- tractor produces for export during said month from the proven area and from each of the other areas in which the Government has its right to purchase crude oil until a total of 60,000,000 barrels of crude oil shall have been received by the said Government directly or by delivery to the contractor as hereinafter in this sub-clause (2) provided or partly by each of the said methods; in case the Government does not take all or a part of the said 20% as above set forth, the Gov- ernment shall be deemed to have delivered the amount of said 20% which it does not take delivery of during the month in question to the contractor for the latter's own use and the contractor shall pay to the Government all of the excess by which the average price received by the contractor for crude oil exported from the field in question during said month exceeds the price payable by the Government for said crude oil at the wellhead, namely, 20 Cents Canadian cur- rency per barrel plus cost as above defined. (3) In case of war emergency, the contractor will use all reason- able endeavours to produce and deliver to the Government the crude oil which it has the right to purchase hereunder in the quantities and at the times desired by the Government. Except in case of war emergency the contractor shall not be asked to produce any of its fields inefficiently or to the injury of said fields. (4) Any costs in excess of those which the contractor would nor- mally incur in the ordinary course of its business, if incurred at the request, and for the benefit of the Government, shall be for account of the Government and paid by it. The Gov- ernment shall take delivery of the said crude oil currently as it purchases the same and the contractor shall not be obli- gated to furnish storage for the same. 7. That at the termination of said Contract No. W-412-eng-52 and its supplemental agreements (all as amended pursuant hereto), the Government shall transfer to and vest in the contractor all the wells, buildings, installations, tanks, battery stations, drilling and other equipment (including spare parts) and materials and supplies includ- ing all rights relating thereto which the Government then has in the Norman Area or en route thereto for development and/or exploratory

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