The undersigned, Andreas Frederik Krieger, His Majesty the King of Denmark’s Minister of Justice, Commander of the Dannebrog and Dannebrogsmand, Commander of the Order of the North Star, in virtue of the authority given him by a Royal Resolution of the 9th March 1872, hereby grants to Alfred G. Lock, of London, a lease of the sulphur mines belonging to the State, situated in the Thing Syssel in the North and East Provinces of Iceland, on the following conditions:
I. Exclusive right to work the above-mentioned mines is given to the lessee for the duration of the lease; they consist of the so-called Reykjahlidar, Krabla, and Fremri-Námar; on the other hand, the present contract gives the lessee no right to the use of, or to the possession of the land around the mines, which ground does not belong to the State. It must be remarked that the mines on the church lands at Theistareykir are not included in this leasing.
II. The lease is given for fifty years, reckoned from the 1st September 1872 to the 31st August 1922, without either of the contracting parties having the right to withdraw from it. Liberty, however, is conceded to Alfred G. Lock to withdraw from the contract at any time before the 31st August this year, date inclusive.
The lessee can make over his rights acquired by this present contract, together with his obligations, to other parties, against whose respectability and solvency no reasonable objection can be made, but he shall nevertheless be bound to communicate such transfer to the Ministry of Justice. His rights likewise shall at his death be transmitted to his heirs.
III. Full liberty is given to the lessee as regards the working of the mines. The sulphur, however, must not be washed in running waters which have their outlet in the sea, nor in fishing-waters, and as a matter of course the sulphur beds or mines must not be destroyed, with respect to which it is remarked that the earth during the diggings must not be trodden down into the warm beds, which are designated by a green colour in the maps attached to the contract, which in the year 1871 were made by J. F. Johnstrüp, Professor of Mineralogy at the Copenhagen University.
On the delivering over of the mines a survey will take place, at which the maps in question will be used as guides. On the delivering back of the mines a survey shall likewise take place.
IV. Neither the lessee nor the workmen he employs at the mines shall be subject to any extraordinary taxes or imposts by the State or the municipality, other than those imposed on the other inhabitants of the island; and he shall in this respect enjoy the same rights as natives; but, on the other hand, he shall not be exempted from the ordinary taxes and charges imposed by the general laws of the land.
V. The lessee shall be bound to allow the State authorities to inspect the mines whenever they may think fit to do so.
VI. The lessee shall pay an annual rental of £50 for the first year; £60 for the second year; £70 for the third year; £80 for the fourth year; £90 for the fifth year; and £100 for the sixth and for each of the succeeding forty-four years.
The rental shall be paid in advance to the Minister of Justice in Copenhagen in two half-yearly payments,—viz., on the 1st September and 1st March, each time with the half part of the yearly amount. The first time on the 1st September 1872, with £25, for the half-year from that day to the 28th February 1873.