Gas Act 1965

8 Compensation for refusal of consent to controlled operations, or consent granted subject to conditions. E+W+S

(1) This section shall apply where the Minister, on an application for his consent to the carrying out of any controlled operations, decides to refuse his consent, or to grant his consent subject to conditions.

(2) Subject to this section, if it is shown that the applicant or any other person—

(a) has incurred expenditure in carrying out work which is rendered abortive by the Minister’s decision, or

(b) has otherwise sustained loss or damage which is directly attributable to the Minister’s decision,

the [F1 public gas supplier]shall pay to the person who has incurred the expenditure or sustained the loss or damage compensation in respect of that expenditure, loss or damage.

(3) For the purposes of this section any expenditure incurred in the preparation of plans for the purposes of any work, or upon any similar matters preparatory thereto, shall be taken to be included in the expenditure incurred in carrying out that work.

(4) In assessing compensation under this section in respect of abortive expenditure no account shall be taken of any expenditure incurred after the storage authorisation order came into force.

(5) No liability to pay compensation shall arise under this section unless it is shown that any planning permission or statutory licence to abstract water which would be required for the carrying out of the controlled operations which are prevented by the Minister’s decision has been granted, or could, according to a certificate issued under the provisions of Schedule 3 to this Act, reasonably have been expected to be granted but for the Minister’s decision.

If any planning permission or statutory licence to abstract water or any certificate issued under Schedule 3 to this Act which is relied on by the claimant shows that the carrying out of the controlled operations in accordance with the application would be, or could have been expected to be, subject to conditions, limitations or restrictions imposed by the local planning authority [F2 or by the river authority, it shall][F2 or by the National Rivers Authority, it shall] be assumed for the purposes of this section that the application is for the carrying out of the controlled operations subject to such conditions, limitations or restrictions.

(6) In assessing compensation under this section no account shall be taken of any expenditure or of any loss or damage if the expenditure, or any act which gave rise to the loss or damage, was not reasonably necessary and was undertaken for the purpose of obtaining compensation, or greater compensation.

(7) In assessing the result of the Minister’s decision it shall be assumed that his decision will not at any future time be revoked or modified.

Textual Amendments

F1 Words substituted by virtue of Gas Act 1986 (c. 44, SIF 44:2), s. 67(1)(3), Sch. 7 para. 6(2), Sch. 8 para. 33

F2 Words “or by the National Rivers Authority, it shall” substituted (E.W.) for the words from “or by” to “it shall” by Water Act 1989 (c. 15, SIF 130), s. 190(1), Sch. 25 para. 32(1) (with ss. 58(7), 101(1), 141(6), 160(1)(2)(4), 163, 189(4)–(10), 190, 193(1), Sch. 26 paras. 3(1)(2), 17, 40(4), 57(6), 58.