The New York herald., 1922-05-02
EXPERTS SEE GOVERNMENT
LOSER IN SINCLAIR OIL DEAL

set forth, portion OF them may be re-
! detmed in cash, all according to the
terms. in the manner, on the basis of ey-
change and upon the conditions as here
matter Sc forth. as follows. to wit
The lessee agrees, If and when re
quested so to do by the lessor. to con-
struct or to pay the cost of construction
OF steel storage tankage up to but not In
excess of such an amount as shall be
estimated to be necessary or required
for the storage by the lessor Of the fuel
o.l to be received by IL as hereinbefore
provided in exchange for royalty crude
." from the lands hereby leased said
storage to be constructed as and when
the same shall become necessary or shall
be required for the storage of such fuel
oil so delivered by the lessee or it's
rcminee, and said tankage 10 be located
a. points designated by the lessor the
cost of such tankage to be liquidated bv
lCasor by delivering to the lessee or its
nominee crude oil certificates hereinbs-
fore referred to- said certificates so de-
liver ed to be Of the face amount in value
equal to the cost OF such tankage for
which the lessee or it's nominee shall
Rave paid or become liable.
Conditions of Redemption.
The conditions upon which a portion
Of said certificates may be redeemed I'm
cash are as follows Lessor shall have
the option, on or before July /. 1928. to
notify the lessee in writing IL 1t elects
to receive payment in cash for any por-
tion of said crude oil certificates to be
issued for royalty oil which may be run
during the calendar year 1924. II 1t
does go elect to receive cash and shall
so notify lessee at the time above men,
toned, it shall at the same time also
notify lessee the amount II any of
fuel OIL gasoline. kerosene, lubricating
oils and other petroleum products which
it desires to receive for royalty crude
oil run during said year and that II
elects to have the balance of said certi-
ficates (over and above those required
| for liquidation OF steel tank storage)
redeemed in cash.
Lessor shall likewise have the option
! in each year thereafter during the con-
tinuance OF this contract 10 similarly
notify lessee on or before July ], with
reference to redemption of crude oil GER
tificates to be issued for royalty oil run
during the next succeeding calendar
year. n such notice Is so given, lessee
shall during the succeeding calendar
year redeem said crude oil certificates
in cash over and above (a) those re-
quired to liquidate expenditures made by
storage hereunder. and (b) those re-
deemed in fuel oil. gasoline. kerosene
iubricating oils and or other petroleum
products pursuant TO said notice. III
| such notice Is not given at the time
hereinabove provided. lessee shall not be
under obligation to redeem in cash any
OF such crude Oil certificates issued for
royalty oil run during the next succeed
ing calendar year.
Presentation OF Certificates.
On or before forty-five (45) days from
the date when any such certificates are
issued TO the lessor. lessor shall present
! the same 10 the lessee or its nominee
| for redemptic or shall notify lessee or
its nominee IN riting Of the amount of
such certificates so held by II for re-
demption. For any and all sums which
| shall have been heretofore advanced or
paid by lessee for the amount OF lessor
| for the construction of storage as here-
inbefore provided, and not previously
| liquidated, lessor shall at said time de-
| liver to lessee OF its nominee oil certifi-
Gates Of a total face amount up to the
amount Of such sums so advanced or
paid by lessee.
| AS to any and all additional certifi-
Gates so presented for redepmtion ~
| held by lessor for redemption over and
above those required to liquidate such
indebtedness for sums advanced or paid
by lessee or its nominee for the con-
struction of storage. lessor shall at such
time notify lessee or its nominee, what
portion thereof II desires to have res
deemed In fuel oil. and also what por-
| tion. IL any. it desires to have redeemed
| in gasoline, kerosene. lubricatins oils
and or other petroleum products for the
use of the United States navy, and
what portion, IL any. pursuant to the
conditions hereinbefore set forth, it de-
sires to have redeemed in cash.
For those certificates which are to
be redeemed ia gasoline, kerosene. lu-
bricating oils or other petroleum prod
ucts for the use OF the United States
navy. the manner and basis OF exchange
and the conditions of delivery shall bs
such as Is hereafter mutually agreed
upon between the parties hereto.
| Such certificates as are redeemed In
cash shall be redeemed on the basis OF
! the value of the crude oil as stated on
the certificate. For those certificates
which are to be redeemed in fuel oil the
lessor shall notify the iessees or Its
nominees on or before the expiration