Page 80 - The Persian Gulf Historical Summaries (1907-1953) Vol III

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Article 9
The Shaikh grants to the Company free of cost the unrestricted use and
occupation of and surface rights over all uncultivated land belonging to the Shaikh
which the Company may need for the purpose of its operations and in particular
the Company shall have the right to select in consultation with the Shaikh an area
or areas of land chosen by the Company within the Neutral Zone and/or subject
to existing prior rights, in Kuwait with exclusive surface rights upon which to erect
oil refineries, storage, terminal and shipping facilities and any other works required
for the Company’s operations; and the Company may with the cognisance of the
Shaikh buy or lease for such purposes any lands, houses or buildings with the
consent of and on conditions to be arranged with the proprietors thereof but the
terms of such purchase or lease shall not be in excess of those ordinarily current
in their respective localities.
(A) The Company shall acquire only such land, houses and buildings as are
necessary for its operations under this Agreement. The Company shall inform
the Shaikh from time to time of the land, houses and buildings which it requires
to occupy for its operations; and land, houses and buildings previously acquired
by the Company from the Shaikh but found no longer necessary for its operations
shall be returned to the Shaikh free of charge by the Company.
(B) The Shaikh shall retain for Himself the right to grant—in consultation
with the Company—to another Company or Companies operating petroleum areas
within territories adjoining the Neutral Zone borders the right to lay down pipe­
lines and to permit such Company or Companies to construct and erect within
the Neutral Zone territory and across same, the necessary buildings and machinery
required for the transport in transit or passage over Neutral Zone territory of
crude oil to a suitable site within the State of Kuwait or said Neutral Zone
considered convenient for the loading of the said crude oil.
Article 10
The Shaikh shall give to the Company and its employees and property all
the protection in His power from theft, highway robbery, assault, wilful damage
and destruction, and the Company may appoint in consultation with the Shaikh
and itself pay, trustworthy guards who shall at all times be Kuwait subjects unless
the Shaikh permits otherwise to assist in protecting the property of the Company
and its employees. The Company shall erect at its own expense suitable buildings
for the accommodation of such guards at such places as the Company shall decide.
Article 11
(A) Before the expiration of the period specified in Article I hereof this Agree­
ment shall come to an end as provided in Article 3 (b) or by surrender as provided
in Article 12 or in one of the three following cases: —
(а) If the Company shall fail to fulfil its obligations under Article 2 hereof
in respect of geological and geophysical exploration or drilling.
(б) If the Company shall fail within six (6) months after any anniversary of
the date of signature of this Agreement to make to the Shaikh any
payments agreed to be due under Article 3.
(c) If the Company shall be in default under the arbitration provisions of
Article 18.
In any of the above-mentioned cases the Shaikh shall be entitled to terminate
this Agreement and all the property of the Company within the State of Kuwait
and said Neutral Zone shall become the property of the Shaikh.
Article 12
(A) The Company shall have the right at any time after it has drilled the
4,000 feet provided in Article 2 (B) (i) or after the expiry of 2 years from the date
of signature of this Agreement—whichever shall be the later date—to give the
Shaikh one year’s notice in advance to terminate this Agreement and the Company
shall on expiry of such notice have no further liabilities except to make payment
of all monies which may be due to the Shaikh up to the date of termination.
(B) Should this Agreement be terminated by the Company under this
Article 12, then: —
(a) If such termination occurs within 35 years from the date of signature of
this Agreement all lands granted by the Shaikh and any lands or