File 10/5 II Hasa oil: CASOC's activities in Hasa; development of Ras Tannura; Political Agent's visit to Hasa [‎177] (354/656)

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0 A rticle 8.
That portion of article 19 of the Saudi Arab Concession reading as follows :—
itl ■' " during each year following the date of the completion of this plant, the
Company shall offer free to the Government, in bulk, 200,000 American gallons of
gasoline and 100,000 American gallons of kerosene, it being understood that the
facilities provided by the Government for accepting these deliveries shall not
impede or endanger the Company's operations "
f shall be and the same is hereby amended to read as follows ■—
k J , , During the year following the first anniversary of the effective date of this
agreement, and during each year thereafter, up to and including the year ending
on the anniversary of the effective date of tihis agreement next following the dis-
covery of oil in commercial quantities within the territories described and referred
to in Part 2 and in Part 3 of the schedule to this agreement, the Company shall
offer free to the Government, in bulk, 1,300,000 American gallons of gasoline and
100,000 American gallons of kerosene.
During the year commencing on the anniversary of the effective date of this
agreement next following such discovery of oil in commercial quantities, and
rail during each subsequent year of the Saudi Arab Concession as amended by this
agreement, the Company shall offer free to the Government, in bulk, 2,300,000
Sft American gallons of gasoline and 100,000 American gallons of kerosene.
It is understood that, following the completion of said plant, the gasoline
voi ; and kerosene offered to the Government in bulk as aforesaid shall be delivered
It to the Government at or in the immediate vicinity of the said plant. The
her[ facilities provided by the Government for accepting deliveries shall not impede
ituii or endanger the Company's operations.
A rticle 9.
From the effective date of this agreement, all the rights and privileges
conferred by article 22 of the Saudi Arab Concession may be exercised by the
tk Company {a) anywhere in the "exclusive area" described in article 5 of this
jali agreement; {h) anywhere in the area covered by the concession granted on the 9th
Arihl day of July, 1936, to the Petroleum Concessions (Limited) (it being understood
it or that the exercise of these rights by the Company in the area covered by the conces
sion granted to the Petroleum Concessions (Limited) does not include the right to
exploit oil therein, nor will it damage the property of the Petroleum Concessions
(Limited) or impede its operations and interests, or interfere therewith. The
Government shall be the sole judge to determine this); (c) anywhere in the Saudi
Arab-Koweit Neutral Zone and in the Saudi Arab-Iraq Neutral Zone, to the
full extent that the Government is entitled to grant such rights and privileges
"js with respect to said two neutral zones.
The rights and privileges conferred by article 22 of the Saudi Arab
Concession may not be exercised by the Company in any other portion of Saudi
Arabia, however, except with the express consent and approval of the Govern
ment ; but it is understood, of course, that, should the Company, in order to
exercise the rights and privileges conferred by article 22 of the Saudi Arab
Concession, require rights of way from the territories described and referred to
in Part 2 of the schedule to this agreement to the area covered by the concession
granted to the Petroleum Concessions (Limited) on the 9th day of July, 1936,
the Government will not withhold approval of such rights of way.
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^,1 A rticle 10.
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The Saudi Arab Concession, as amended by this agreement, shall, with
respect to the territories described and referred to in Part 2 and in Part 3 of
the schedule to this agreement, continue in full force and effect for a period of
six years from the expiration of the sixty-year period provided in article 1 of
the Saudi Arab Concession.
■Ji A rticle 11.
>V, : The provisions of article 3 of the Saudi Arab Concession and of para
graphs 1, 2 and 4 of the Second Principal Agreement, in so far only as said
provisions relate to the Saudi Arab-Koweit Neutral Zone, are superseded by
the provisions of this agreement.