The Council shall be responsible for and make good to Northumbrian Water all reasonable costs, charges, damages and expenses which may be caused to or incurred by Northumbrian Water by reason of the construction or operation of the scheduled works.

The Council shall indemnify Northumbrian Water from and against all claims arising out of or in connection with the construction or operation of the scheduled works.

Northumbrian Water shall give to the Council reasonable notice of any such claim or demand referred to in sub-paragraph (2) and no settlement or compromise thereof shall be made without the prior consent of the Council.