Page 195 - The Persian Gulf Historical Summaries (1907-1953) Vol III

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fixing of the sea-bed boundaries the Concessionaire shall refrain from any drilling
operations or other works permanently affecting the sea-bed or sub-soil in any
area or areas which the Shaikh or Her Majesty’s Government may define.
11. The Concessionaire’s operations shall be carried out with due regard to
the character of the high seas of the waters overlaying the sea-bed appertaining
to Dubai outside territorial waters. In particular, the Concessionaire shall, in the
exercise of his rights and in the fulfilment of its obliged ions under the Concession,
interfere to the minimum extent possible with, and take adequate precautions
for the protection of navigation, fishing and pearling; and he shall comply with
all reasonable requirements of Her Majesty’s Government and of the competent
authorities of Dubai affecting fishing, pearling and the navigation of ships and
aircraft.
12. Should the Concessionaire propose to erect a refinery in Dubai, he will
inform Her Majesty’s Government and, if required to do so, will consult with
Her Majesty's Government about the details of his 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 Concessionaire asknowlcdges 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 Dubai.
15. (1) In the event of any breach by the Concessionaire of the terms of the
present Agreement, Her Majesty’s Government may give the Concessionaire written
notice to comply with its terms within a specified reasonable time.
(2) If the Concessionaire fails to comply, within the specified time, with the
terms of a written notice served on him 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 Concessionaire has acted or
is acting in breach of the present Agreement. Her Majesty’s Government shall
inform the Concessionaire 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 Concessionaire has failed to comply with any
of the terms of this Agreement, he may order the Concessionaire to take such
measures as he may decide (including, if appropriate, payment of compensation) tc
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 Dubai 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 Concessionaire has failed to comply with
the terms of Articles 1, 2 or 10, of the present Agreement, Her Majesty’s Govern­
ment 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 Concessionaire exercising any right of appeal
which he 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 Concessionaire to the extent of any refining capacity
which the Concessionaire may have in Dubai to produce oil fuel that shall comply
with the Admiralty specifications at the time provided that Dubai oil be of suitable
kind and quality for this purpose.