Page 98 - The Persian Gulf Historical Summaries (1907-1953) Vol III

95
right to grant special concessions for the same to any party it desires, giving to
the Company a preferential right thereto upon the same terms and conditions
which arc offered in the highest bid acceptable to the Government.
(c) The Company shall protect most carefully any antiquities, graveyards,
cemeteries, ramparts, monuments and treasures discovered by it in the course
of its explorations and researches and shall inform the Government thereof at
the earliest possible moment so that the matter may be properly dealt with. Such
antiquities and other treasures shall be the property of the Government.
(/) The Company shall, moreover, give the necessary instructions to its
geologists to report to it any area or location which appears likely to yield sweet
water by boring and shall order them to mark any such locations with a flag to
indicate such likelihood. The Company undertakes to keep the Government
informed of all reports of this nature and as to the land or lands therein referred
to. The Company will provide hand pumps or wells where water is found in
sufficient quantities and where it is practicable to do so in the light of the
Company’s operations.
Article 37
The Company shall fly the flag of Saudi Arabia within the Neutral Zone.
Article 38
The Company may use, without charge therefor, other than the normal fees
paid by all other users of such harbors, any and all harbors (in so far as the
Government has the right to grant such use) along the Coast of Saudi Arabia and
may use such facilities for wharfage, transportation, storage and communications
as shall be available for use or hire upon the same terms upon which such facilities
are available to any other person or corporation.
Article 39
The Company’s employees, aircraft and automobiles are permitted to enter
and leave the Neutral Zone, subject to the requirements of law and regulations.
Article 40
Subject to Article 49 hereof, the Company shall have the right to maintain
a Company store or stores and to sell therein to employees of the Company and
Government officials articles of food, clothing, toiletries, books, household furni­
ture, furnishings and equipment and other items reasonably required for the
personal use or comfort of such employees and officials.
Article 41
The Company may buy at market prices fuel, water, food, building and
construction material and other stores of every kind connected with the work
referred to in this agreement. The purchase of Saudi Arabian currency shall
be the subject of mutual agreement between the parties hereto.

Article 42
All technical matters of petroleum engineering and production and refining
practice, including but without being limited to drilling, abandonment, shutting in,
disposition of gas, &c., and all technical matters pertaining to the method of
constructing, maintaining and operating the facilities to be constructed, maintained
or operated by the Company hereunder, shall lie within the sole and absolute
discretion of the Company, and the Government shall have no functions or duties
with respect thereto, except with respect to railways, aircraft, telegraph and radio.
Nevertheless, the Company shall conduct its drilling and production operations
according to all reasonable requirements, consistent with good oil-field practice, as
may be imposed upon all other companies conducting oil operations within the
Kingdom of Saudi Arabia, for the purpose of conserving the national wealth;
provided that, to the extent that, by reason of any curtailment so imposed upon
production the royalty payable under Article 5 (a) hereof in any year shall be
less than the minimum royalty of One million ($1,000,000) dollars payable in
respect of such year pursuant to Article 6 hereof, such minimum royalty shall be
correspondingly reduced, and the amount of such reduction shall be credited to
the Company.