Page 93 - The Persian Gulf Historical Summaries (1907-1953) Vol III_Neat

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Article 13
The Government shall have the right to appoint freely one or more inspectors
and one or more representatives, and the Company shall pay directly to the
Government the lump sum of two thousand three hundred ($2,300) dollars, in
currency of the United Stales of America, per month as the total salaries of all such
officials, together with all reasonable expenses incurred by them in the performance
of their duties. The Company shall afford to them any required technical help and
supply them with requested information fully and intelligibly. The Government
inspectors shall have the right to visit the oil-fields, sites, &c., to carry out cadastral
surveys, make drawings, conduct researches, &c., and shall be entitled to use
instruments of the Company and to call upon officials of the Company for assist­
ance; provided that such use of such instruments shall in no wav interfere with
the full use thereof by the Company. The Government’s representative abroad,
without being a member of the Board, shall have full access to the production
records of the Company and the agenda of the Board meetings and shall be entitled
to attend the Board meetings.
The Company shall maintain in Jeddah an office and a representative duly
authorised to deal with the Government from the commencement of researches.
At the request of the Company, housing and office facilities for such representative
will be provided by the Government at the expense of the Company.
Article 14
The Company shall measure, weigh or gauge, in a method approved from time
to time by the Government, all substances, products and by-products covered by
this agreement and won and saved, and the duly appointed Government inspectors
or delegates may: —
(a) examine such measuring, weighing orgaugings;
(b) examine and test the appliances used for such measuring, weighing or
gauging.
If, upon such examination or testing, any such appliance shall be found to be out
of order, the Government may require that the same be put in order by and at the
expense of the Company; and if such requirement be not complied with within a
period not exceeding three months, the Government may cause the said appliance
to be put in order and may recover the expenses of so doing from the Company;
and if, upon such examination as aforesaid, any error shall be discovered in any
such appliance, such error, if the Government so decides after hearing the
Company’s explanation, may be considered to have existed for three calendar
months previous to the discovery thereof, or from the last occasion of examining
the same by the Government, in case such occasion shall be within such period of
three calendar months, and the royalty shall be adjusted accordingly.
If the Company desires to alter any measuring or weighing or gauging
appliance, it shall give reasonable notice to the Government to enable a represen­
tative of the Government to be present during such alteration.
Article 15
The Company shall not assign the concession and rights granted hereunder
except with the written approval of the Government; provided, however, that, if
the Company shall agree to pay to the Government twenty-five (25%) percent of
the net capital gain, if any, from any sale of such concession and rights, after
deduction therefrom of any and all taxes payable to any other government in
respect of such gain or profit (it being understood and agreed that, to the extent
permitted by the laws of such other government, the amount payable to the
Government hereunder shall be treated as an expense of the sale in the computation
of the amount of any such tax), and shall propose to make such sale to an American
or Western European corporation of good repute and desirability to the Saudi
Arabian Government having net assets of not less than Thirty million ($30,000,000)
dollars at the time of the sale, the approval of the Government shall not be
unreasonably withheld or delayed. In the event of any proposed sale of such
concession and rights, the Government shall have the preferential right to re­
purchase the same, within 30 days after written notice of its intention to make
such sale is delivered by the Company to the Government, upon the same terms
upon which it is proposed to make such sale to any other person or corporation.
In the event of any such repurchase by the Government, the net capital gain and
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