File 10/5 II Hasa oil: CASOC's activities in Hasa; development of Ras Tannura; Political Agent's visit to Hasa [‎110] (227/656)

Government and the Company shall thereafter be free of all further obligations
under this contract, except as follows .
(1) The Company's i mm ovable property, such as roads, water or oil wells
with their casings, permanent buildings and structures, &c., shall
become the property of the Government free of charge. ^ v
(2) The Company shall afford tne Government an oppot tunity to purcluist;
the movable property of the enterprise in Saudi Arabia at a fair price
equal to the replacement value of such property at the time, less
depreciation. Any controversy about this fair price shall be settled
by arbitration in the same manner as provided in article 31 of this
contract. If the Government declines oi fails, a ilnn! two moriths
following the date of the termination of this contract, to purcliase
such movable property, or if the Government fails to tender the
purchase price within thirty days after it has been decided upon, by
agreement or arbitration, the Company shall then have six months
within which to remove such property.
A rticle 29.
In case of the breach by the Company of its obligation to make the second
payment of £20,000' gold, or its equivalent as provided in article 6 hereof, or of ,
its" obligation to commence operations connected with drilling as set forth in
article 10 hereof, or of its obligation to make two advances of £50,000 gold, each,
or its equivalent under the terms and conditions provided in article 11 hereof, or
of its obligation under article 30 hereof to pay the amount of any damages which
may be assessed upon the Company, the Government's remedy shall be the right
to give the Company notice at once for such breach, and thereupon if the Company
does not take immediate steps to comply with the obligation so breached, the
Government may terminate this contract.
A rticle 30.
Except as otherwise provided in article 29 hereof, the penalty for the breach
by the Company of any of its obligations under this contract shall be damages
which shall be payable to the Government under the following conditions:—
The Government shall at once notify the Company of any alleged breach on
the part of the Company, setting forth the nature of such breach. Any
controversy which may arise as to whether or not the Company has committed
the alleged breach shall be settled by arbitration in the manner provided in this
agreement. Once that the fact of the commission of the breach has been
established, the failure of the Company to take immediate steps to remedy the
breach shall subject the Company to the payment of damages to the Government,
and if such damages cannot be agreed upon they shall be determined by arbitra
tion in the manner provided in this contract. The amount of any damages which
may be determined shall be paid to the Government by the Company within
sixty days after such determination.
A rticle 31.
If any doubt, difference or dispute shall arise between the Government and
the Company concerning the interpretation or execution of this contract, oi I
anything herein contained or in connexion herewith, or the rights and liabilities
of the parties hereunder, it shall, failing any agreement to settle it in anothei
way, be referred to two arbitrators, one of whom shall be chosen by each party, and
a referee who shall be chosen by the arbitrators before proceeding to arbitration.
Each party shall nominate its arbitrator within thirty days of being requested in-
writing by the other party to do so. In the event of arbitrators failing to agree
upon a referee, the Government and the Company shall, in agreement, app 01 ®
a referee, and in the event of their failing to agree they shall request tne
President of the Permanent Court of International Justice to appoint a referee
The decision of the arbitrators, or in the case of the difference of opinion between
them the decision of the referee, shall be final. The place of arbitration shall ne
such as may be agreed upon by the parties, and in default of agreement shall
The Hague, Holland.