Page 172 - The Persian Gulf Historical Summaries (1907-1953) Vol III

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fixing of the seabed boundaries, the Company will refrain from any drilling opera­
tions or other works permanently affecting the seabed or subsoil in any area or
areas which the Shaikh or Her Majesty's Government may define.
11. The Company’s operations shall be carried out with due regard to the
character of high seas of the waters overlaying the seabed appertaining to
Abu Dhabi outside territorial waters. In particular, the Company shall, in the
exercise of its rights and in the fulfilment of its obligations under the Concession,
interfere to the minimum extent possible with, and take adequate precautions for
tiie protection of, navigation, fishing and pearling: and it shall comply with all
reasonable requirements of Her Majesty’s Government and of the competent
authorities of Abu Dhabi affecting fishing, pearling and the navigation of ships
and aircraft.
12. Should the Company propose to construct a refinery in Abu Dhabi, it
will inform Her Majesty’s Government and, if required to do so, will consult with
Her Majesty’s Government about the details of its proposals.
13. In the event of a state of national emergency or war (of the existence
of either of which Her Majesty’s Government shall be the sole judge), Her Majesty’s
Government shall have the right of pre-emption, in accordance with the terms of
the Schedule hereto, of all crude oil and products thereof produced under the
Concession.
14. The Company acknowledges the special treaty relations now existing
between Her Majesty’s Government and the Shaikh and the rights and obligations
devolving therefrom with regard to the Shaikhdom of Abu Dhabi.
15. —(1) In the event of any breach by the Company of the terms of the present
Agreement, Her Majesty’s Government may give the Company written notice to
comply with its terms within a specified reasonable time.
(2) If the Company fails to comply, within the specified time, with the terms
of a written notice served on it in accordance with paragraph (1) of this Article, Her
Majesty’s Government may apply to the Lord Chief Justice of England to appoint
an arbitrator who shall decide whether the Company has acted or is acting in breach
of the present Agreement. Her Majesty’s Government shall inform the Company
of any such application to the Lord Chief Justice.
(3) The provisions of the Arbitration Act 1950 shall govern the proceedings
in any arbitration under this Article.
(4) If the arbitrator finds that the Company has failed to comply with any of
the terms of this Agreement, he may order the Company to take such measures as
he may decide (including, if appropriate, payment of compensation) to put an end
to or remedy the breach and the damage caused by it.
(5) Subject to any right of appeal given under the Arbitration Act, 1950, the
parties hereto hereby undertake to submit to the decision of the arbitrator appointed
under this Article and to carry out any order made by him.
(6) The order of the arbitrator may, if necessary, be enforced in Abu Dhabi
in. the same manner as an order of a Court established under the Trucial States
Order in Council.
(7) If the arbitrator finds that the Company has failed to comply with the
terms of Article 1, 2 or 10 of the present Agreement, Her Majesty’s Government
may request the Shaikh to terminate the Concession and any such request shall be
regarded as a ground on which the Shaikh may terminate the Concession, provided
that, in the event of the Company exercising any right of appeal which it may have
under the Arbitration Act 1950 against the arbitrator’s order, no such request shall
be made before the decision has been given on such appeal.
(8) Reference in this Article to the Arbitration Act 1950 shall be deemed to
include any amendments thereof which may from time to time be enacted and any
enactment replacing it.
The Schedule above referred to
Pre-emption Provisions
In the event of a state of national emergency or war (of the existence of which
Her Majesty’s Government shall be the sole judge)—
(1) Her Majesty’s Government shall have the right of pre-emption of all crude
oil obtained under the concession and of all the products thereof and shall have the
right to require the Company to the extent of any refining capacity it may have in
Abu Dhabi to produce oil fuel that shall comply with the Admiralty specifications
at the time provided that Abu Dhabi oil be of suitable kind and quality for this
purpose. M J