The Net Zero Teesside Order 2024

Indemnity

304.—(1) Subject to sub-paragraphs (2) and (3), if by reason or in consequence of the construction of any of the works referred to in paragraph 298, any damage is caused to the Teesside Windfarm operations, or there is any interruption in any service provided, or in the supply of any goods, by Teesside Windfarm, the undertaker must—

(a)bear and pay the cost reasonably incurred by Teesside Windfarm in making good such damage or restoring the supply; and

(b)make reasonable compensation to Teesside Windfarm for any other expenses, loss, damages, penalty or costs incurred by Teesside Windfarm, by reason or in consequence of any such damage or interruption.

(2) Nothing in sub-paragraph (1) imposes any liability on the undertaker with respect to any damage or interruption to the extent that it is attributable to the act, neglect or default of Teesside Windfarm, its officers, employees, servants, contractors or agents.

(3) Teesside Windfarm must give the undertaker reasonable notice of any such claim or demand and no settlement or compromise is to be made without the consent of the undertaker which, if it withholds such consent, has the sole conduct of any settlement or compromise or of any proceedings necessary to resist the claim or demand.

(4) If the Undertaker becomes responsible for a claim or demand pursuant to sub-paragraph (3) it must—

(a)keep Teesside Windfarm fully informed of the developments and material elements of the proceedings;

(b)take account of the views of Teesside Windfarm before taking any action in relation to the claim;

(c)not bring the name of the Teesside Windfarm on any related company into disrepute and act in an appropriate and professional manner when disputing any claim; and

(d)not pay or settle such claims without the prior written consent of Teesside Windfarm, such consent not to be unreasonably withheld or delayed.

(5) Teesside Windfarm must use their reasonable endeavours to mitigate in whole or in part and to minimise any costs, expenses, loss, demands, and penalties to which the indemnity under this paragraph 303 applies. If requested to do so by the undertaker, Teesside Windfarm must provide an explanation of how the claim has been minimised or details to substantiate any cost or compensation claimed pursuant to sub-paragraph (1). The undertaker shall only be liable under this paragraph 303 for claims reasonably incurred by Teesside Windfarm.