Page 191 - The Persian Gulf Historical Summaries (1907-1953) Vol III

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agreed upon between the Shaikh and the Concessionaire alter the discovery of oil
and the ascertainment of its specific gravity.
The Concessionaire shall measure the Substances by a method customarily
used in good technical practice and the Shaikh by his representative duly authorised
by him shall have the right to observe such measuring and to examine and test
whatever appliances may be used for such measuring. Such representative shall
comply with all necessary and usual safeguards for the prevention of fire and other
accident; and shall make all examinations and tests at such times and in such
manner as will cause the minimum interference with the Concessionaire’s opera­
tions. If upon such examination or testing any such appliance shall be found to bo
out of order the Concessionaire will cause the same to be put in order at his own
expense within a reasonable time, and if upon any such examination aforesaid
any error shall be discovered in any such appliance, such error shall—if the Shaikh
so decides after hearing the Concessionaire’s explanation—be considered to have
existed for Three (3) Calendar Months previous to the discovery thereof or from
the last occasion of examining the same in case such occasion shall be within such
period of Three (3) Calendar Months and the Royalty shall be adjusted accordingly.
If the Concessionaire should find it necessary to aiter, repair or replace any
measuring appliances he shall give reasonable notice to the Shaikh or his repre­
sentative to enable a representative of the Shaikh to be present during such
alteration, repair or replacement.
The Concessionaire shall keep full and correct records of all measurements as
aforesaid and the said representative of the Shaikh shall have access at all reason­
able times to such records and shall be at liberty to make extracts from them.
Such records shall be treated as confidential by the Shaikh and his representative.

Article 13
{a) The Concessionaire shall have the right at any time after the expiry of
three years from the date of signature of this Agreement to give the Shaikh
six months’ notice in writing of his intention to terminate this Agreement and
this Agreement shall absolutely determine on the date fixed for such termination
in such notice but without prejudice to the rights of either party against the other
of them in respect of any antecedent breach of this Agreement.
ib) If such notice be given not later than 30 years after the date of such
signature the Concessionaire shall be entitled on such determination to remove
free of all taxes and duties all plants buildings stores material and property of
every sort provided that for a period of three months from the receipt of such
notice the Shaikh may purchase—should he so desire—the same at a price equal
to the replacement value at that date less depreciation which price shall be
agreed or failing agreement settled under Article 20 hereof.
(c) If such notice be given later than 30 years after the date of such signature
all the property aforesaid shall become the property of the Shaikh free of all cost.
(d) It shall be a condition precedent to the validity of any such notice that
the Concessionaire shall at the same time as he gives such notice pay to the Shaikh
a sum equal to the rent which has accrued or will accrue due from the date of the
last payment of rent up to the date when the notice given will expire. In case at
the time of the giving of the notice the fixed rental payable under Article 4 (c) hereof
shall have ceased to be payable the Concessionaire shall in lieu pay with the giving
of the said notice a sum equal to the royalties which have accrued due from the
date of the last payment of royalties up to the latest readily ascertainable date
before the giving of the notice and in addition a sum equal to the amount of
royalties which it is estimated will accrue due from such last-mentioned datej up to
the date of expiry of such notice. The actual amount to be paid shall be adjusted
so soon after the expiry of the notice as may be possible.

Article 14
On the expiry of this Agreement at the end of the period of Sixty Years

over to the Shaikh free^f cost. Producing wells or borings at the time of such
expiry shall be handed over in reasonably good order and repair.