Page 92 - The Persian Gulf Historical Summaries (1907-1953) Vol III_Neat

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to any person or body corporate or politic by reason of the nature or extent of
the undivided interest hereby transferred to the Company, shall have averaged
seventy-five thousand (75,000) United States barrels per day for a period of
ninety (90) days, the Company shall commence and prosecute to completion as
rapidly as reasonably practicable, the construction in said Neutral Zone of a
modern refinery or refineries having a minimum daily throughput capacity of
twelve thousand (12,000) United States barrels of crude oil, unless the Government,
at the request of the Company, shall dispense with the requirement that such
refinery or refineries be built. A portion of such refinery capacity shall be suitable
for the production of aircraft gasoline. The Company will produce at such refinery
or refineries and sell to the Government for use in the construction of roads and
streets, upon the same terms, including the currency in which the price is payable;
at which the same is sold generally (except to the extent to which a discount of
five (5%) per cent, applies pursuant to Article 9 hereof) such quantity of asphalt
as the Government may request and as shall be consistent with good refinery
practice, in view of the nature and extent of the refining facilities, the nature and
type of crude oil refined and prevailing economic conditions. The site or sites
of such refinery or refineries shall be fixed by the mutual agreement of the parties
hereto.
Article 11
Commencing with the year following the anniversary of the signing of this
agreement next ensuing the commencement of the construction of such refinery
or refineries, the Company will deliver annually, free of charge to the Government,
at Jeddah and/or Riyadh, as may be designated for each specific delivery by the
Government, one hundred thousand (100,000) United States gallons of gasoline
and fifty thousand (50,000) United States gallons of kerosene, or at the option of
the Government, an additional fifty thousand (50,000) United States gallons of
gasoline in the place and stead of said kerosene. Prior to any such deliveries
the Company shall build, at its expense but for the benefit of the Government,
permanent storage facilities for one hundred and fifty thousand (150,000) United
States gallons, at each said city, upon land furnished by the Government for that
purpose. The Government may. at its written election, take aircraft gasoline in
lieu of any or all of the gasoline or kerosene to which it is entitled under this Article,
at the rate of one United States gallon of aircraft gasoline to each two United
States gallons of gasoline or kerosene to which it is so entitled. The Government
shall, at its own expense, provide storage facilities or containers for such
aircraft gasoline.
In the event that such refinery or refineries are not completed within sufficient
time to furnish the Government with the products thereof to which the Government
is entitled under this Article, the Company shall deliver to the Government such
quantity of crude oil as shall be reasonably required for the manufacture of the
undelivered balance of the gasoline or kerosene to which the Government is entitled
hereunder and a sum of money equivalent to the reasonable cost of handling
and refining such crude oil into such quantity of gasoline or kerosene.

Article 12
The Company shall maintain in the Neutral Zone or Saudi Arabia full and
complete books of account which shall accurately reflect its operations in said
Neutral Zone hereunder. The Government's delegates or representatives, at its
own cost and expense, except as herein otherwise provided in Article 13 hereof,
shall have access thereto at all suitable times and may make extracts therefrom.
Monthly extracts of the Company’s production, sales and refinery records shall
be delivered to the Government. The contents of the Company’s records and
books shall be treated as confidential by the Government with the exception of
such figures therein as the Government may deem it necessary to publish.
Any objection which the Government shall have to the amount of any payment
made by the Company hereunder shall be transmitted in writing to the Company
within ninety (90) days after such payment shall have been made. If no such
objection shall be so transmitted, the amount of such payment shall be deemed
to have been correct and shall be final, conclusive and binding upon both parties
hereto. If any such objection shall be so transmitted, the same shall be treated in
all respects as a notification that a dispute exists and shall be dealt with as herein­
after provided in Article 45 hereof.