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(1)The Secretary of State, in determining any application under section 55 above in respect of any licence, shall take into account any representations in writing received by him, within the period mentioned in subsection (4) of that section, from the Authority or from the holder of the licence.
(2)Before determining on an application under section 55 above whether a licence should be revoked or varied the Secretary of State may, if he thinks fit—
(a)cause a local inquiry to be held; or
(b)afford to the applicant, the holder of the licence and the Authority an opportunity of appearing before, and being heard by, a person appointed by the Secretary of State for the purpose;
and the Secretary of State shall act as mentioned in paragraph (a) or (b) above if a request is made by the applicant, the holder of the licence or the Authority to be heard with respect to the proposals.
(3)Subject to subsections (4) and (5) below, on an application under section 55 above in respect of any licence, the Secretary of State shall not determine that the licence shall be revoked or varied unless—
(a)the grounds of the application, as mentioned in subsection (3) of that section, are established to his satisfaction; and
(b)he is satisfied that the extent of the loss or damage which the applicant has sustained, as mentioned in that subsection, is such as to justify the revocation or variation of the licence.
(4)On an application under section 55 above in respect of any licence, the Secretary of State shall not determine that the licence shall be revoked or varied if he is satisfied that the fact that the abstraction of water in pursuance of the licence caused the loss or damage which the applicant has sustained, as mentioned in subsection (3) of that section, was wholly or mainly attributable to exceptional shortage of rain or to an accident or other unforeseen act or event not caused by, and outside the control of, the Authority.
(5)Where the Secretary of State determines, on an application under section 55 above, that a licence shall be varied, the variation shall be limited to that which, in the opinion of the Secretary of State, is requisite having regard to the loss or damage which the applicant has sustained as mentioned in subsection (3) of that section.
(6)Where the decision of the Secretary of State on an application under section 55 above in respect of any licence is that the licence should be revoked or varied, the decision shall include a direction to the Authority to revoke the licence or, as the case may be, to vary it so as to contain such provisions as may be specified in the direction.
(7)A decision of the Secretary of State on an application under section 55 above shall be final.
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