The Nuclear Installations (Liability for Damage) Order 2016

Made: 4th May 2016

Coming into force in accordance with article 1(2), (4) and (5)

In accordance with section 192(3) of that Act, a draft of this instrument was laid before Parliament and approved by a resolution of each House of Parliament.

Citation and commencement

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• (1) This Order may be cited as the Nuclear Installations (Liability for Damage) Order 2016.

• (2) Subject to paragraphs (4) and (5), this Order comes into force on the main commencement day.

• (3) The Secretary of State must publish a notice of the date of the main commencement day as soon as possible after that day.

• (4) This article and articles 2, 34 and 40 come into force on the twenty-first day after the day on which this Order is made, if earlier than the main commencement day.

• (5) Articles 19 and 35 come into force on the twenty-first day after the day on which this Order is made, if earlier than the main commencement day, for the purpose only of the exercise of any power to make regulations under section 16(1) or 21(3) of the 1965 Act.

Interpretation

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In this Order—

• “the 1965 Act” means the Nuclear Installations Act 1965[^f00002];

• “the main commencement day” means the day on which the Protocols come into force in respect of the United Kingdom[^f00003];

• “the Protocols” means— the Protocol of 12th February 2004 to amend the Convention on Third Party Liability in the Field of Nuclear Energy of 29th July 1960, as amended by the Additional Protocol of 28th January 1964 and by the Protocol of 16th November 1982[^f00004], and the Protocol of 12th February 2004 to amend the Convention of 31st January 1963 Supplementary to the Paris Convention of 29th July 1960 on Third Party Liability in the Field of Nuclear Energy, as amended by the Additional Protocol of 28th January 1964 and by the Protocol of 16th November 1982[^f00005].

Duties of licensee of licensed site

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• (1) Section 7 of the 1965 Act (duty of licensee of licensed site) is amended as follows.

• (2) For subsection (1)[^f00006] substitute—

(1) Subject to subsection (4), where a nuclear site licence has been granted in respect of a site, the licensee has the duties set out in subsections (1A), (1C) and (1E). (1A) It is the duty of the licensee to secure that no occurrence involving nuclear matter falling within subsection (1B) causes— (a) injury to any person, (b) damage to any property of any person other than the licensee, or (c) significant impairment of the environment, being injury, damage or impairment that arises out of or results from the radioactive properties, or a combination of those and any toxic, explosive or other hazardous properties, of that nuclear matter. (1B) The occurrences referred to in subsection (1A) are— (a) any occurrence on the licensed site involving nuclear matter during the period of the licensee’s responsibility; (b) any occurrence elsewhere than on the licensed site involving nuclear matter that is not excepted matter and which, at the time of the occurrence, satisfies the requirement mentioned in section 7A(1). (1C) It is the duty of the licensee to secure that no occurrence involving the emission of ionising radiations falling within subsection (1D) causes— (a) injury to any person, (b) damage to any property of any person other than the licensee, or (c) significant impairment of the environment, being injury, damage or impairment that arises out of or results from the radioactive properties, or a combination of those and any toxic, explosive or other hazardous properties, of the source of the emissions. (1D) The occurrences referred to in subsection (1C) are— (a) an emission of ionising radiations during the period of the licensee’s responsibility from anything caused or suffered by the licensee to be on the site which is not nuclear matter; (b) a discharge on or from the site of waste, being waste (of any form) that emits ionising radiations but is not nuclear matter, during the period of the licensee’s responsibility. (1E) It is the duty of the licensee to secure that no event happens that creates a grave and imminent threat of a breach of the duty under subsection (1A) or (1C).

• (3) Omit subsection (2) (description of occurrences mentioned in subsection (1)(a)).

• (4) For subsection (3) substitute—

(3) In determining the liability of the licensee of a licensed site by virtue of subsection (1A) or (1C) in respect of an occurrence, any such property as is mentioned in subsection (3B) which is on that site at the time of the occurrence is to be deemed to be the property of the licensee, notwithstanding that it is the property of some other person. (3A) In determining the liability of the licensee of a licensed site by virtue of subsection (1E) in respect of an event, any such property as is mentioned in subsection (3B) which is on that site at the time of the event is to be deemed to be the property of the licensee, notwithstanding that it is the property of some other person. (3B) The property referred to in subsections (3) and (3A) is— (a) a nuclear installation; (b) property other than a nuclear installation which is on the licensed site for the purpose of being used in connection with the operation, or the cessation of the operation, by the licensee of a nuclear installation which is or has been on that site; (c) property other than a nuclear installation which is on the licensed site for the purpose of the construction of a nuclear installation on that site; (d) an installation for the disposal of nuclear matter.

• (5) After section 7 insert—

(7A) (1) The requirement referred to in section 7(1B)(b) is that the nuclear matter satisfies the condition in any of subsections (2) to (8) in relation to the licensee of the licensed site as licensee of that site. (2) The condition in this subsection is that the nuclear matter— (a) is in the course of carriage to the licensed site with the agreement of the licensee from a place in a country or territory that is not a relevant territory, and (b) is not on another relevant site in the United Kingdom. For these purposes the carriage of the matter is to be treated as starting once the matter has been loaded on to the means of transport intended to be used for its carriage from that country or territory. (3) The condition in this subsection is that the nuclear matter— (a) is in the course of carriage from the licensed site to a place in a country or territory that is not a relevant territory, and (b) is not on another relevant site in the United Kingdom. For these purposes the carriage of the matter is to be treated as coming to an end once the matter has been unloaded from the means of transport used for its carriage to that country or territory. (4) The condition in this subsection is that the licensee has taken charge of the nuclear matter from a person authorised to operate a nuclear reactor comprised in a means of transport and the matter— (a) is in the course of carriage to the licensed site, and (b) is not on another relevant site in the United Kingdom. (5) The condition in this subsection is that the nuclear matter— (a) is in the course of carriage from the licensed site to a person authorised to operate a nuclear reactor comprised in a means of transport and in which the matter is intended to be used, and (b) is not on another relevant site in the United Kingdom. For these purposes the carriage of the matter is to be treated as coming to an end once that operator takes charge of the matter. (6) The condition in this subsection is that— (a) the nuclear matter was in the course of such carriage as is described in subsection (2), (3), (4) or (5), (b) that course of carriage was not completed, and (c) since ceasing to be in the course of such carriage, the nuclear matter has not been in such circumstances as are mentioned in subsection (9), (10) or (11). (7) The condition in this subsection is that— (a) the nuclear matter is in the course of carriage on behalf of the licensee as a licensee of the licensed site, otherwise than as described in any of subsections (2)(a), (3)(a), (4)(a) and (5)(a), and the licensee has a direct economic interest in the matter, or (b) the nuclear matter was in the course of such carriage while being matter in which the licensee had a direct economic interest and, since ceasing to be in the course of such carriage or since ceasing to be matter in which the licensee had a direct economic interest, has not been in such circumstances as are mentioned in subsection (9), (10) or (11). (8) The condition in this subsection is that the nuclear matter was on the licensed site and, since ceasing to be on that site, has not been in such circumstances as are mentioned in subsection (9), (10) or (11). (9) The circumstances in this subsection are that the nuclear matter is on a relevant site other than the licensed site. (10) The circumstances in this subsection are that the nuclear matter— (a) is in the course of carriage to a relevant site other than the licensed site with the agreement of the operator of that site from a place in a country or territory that is not a relevant territory, (b) is in the course of carriage from a relevant site other than the licensed site to a place in a country or territory that is not a relevant territory, (c) is in the course of carriage on behalf of a person authorised to operate a nuclear reactor which is comprised in a means of transport and in which the nuclear matter is intended to be used or was used or was intended to be used, or (d) is in the course of relevant carriage on behalf of a person other than the licensee of the licensed site, and otherwise than as described in paragraph (a), (b) or (c), and is matter in which that person has a direct economic interest. (11) The circumstances in this subsection are that the nuclear matter— (a) is within the territorial limits of a country or territory that is not a relevant territory, and (b) is not in the course of such carriage as is described in any of subsections (2)(a), (3)(a), (4)(a) and (5)(a) or in the course of relevant carriage from one relevant site to another. (12) Where the licensee of a licensed site operates the site on behalf of another person— (a) carriage of nuclear matter that is undertaken or arranged by the licensee as licensee of the licensed site on behalf of that other person is to be treated as carriage on behalf of the licensee (and accordingly is to be treated as relevant carriage on behalf of the licensee for the purposes of this Act), and (b) a requirement in this section that a person have a direct economic interest in nuclear matter that is in the course of carriage is to be treated as satisfied by the licensee when acting on behalf of another person as regards the carriage of nuclear matter if— (i) that other person is the person on whose behalf the licensee is operating the licensed site, and (ii) that other person has a direct economic interest in the nuclear matter. (13) For the purposes of this section, a person who receives a financial or other benefit for or in connection with undertaking, or arranging for, the carriage of nuclear matter does not, for that reason only, have a direct economic interest in the matter.

Duties in respect of relevant disposal sites

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• (1) In section 6 of the 1965 Act[^f00007] (list of licensed sites)—

• (a) in subsection (1), for the words from “showing” to the end substitute—

showing— (a) every site in respect of which a nuclear site licence has been granted, and (b) every site which is or was a relevant disposal site.

• (b) in subsection (2)(a), after “part of a site” insert “falling within subsection (1)(a)”;

• (c) after subsection (2)(a) insert—

(aa) need not show any site or part of a site falling within subsection (1)(b) in the case of which— (i) no appropriate permit is for the time being in force; and (ii) 30 years have passed since the date on which the appropriate environment authority gave notice to an operator of the site that in the opinion of that authority there has ceased to be any danger from ionising radiations from anything on the site or, as the case may be, part of it;

• (d) in the heading, after “licensed sites” insert “and relevant disposal sites”.

• (2) After section 7A of the 1965 Act (inserted by article 3) insert—

(7B) (1) Sections 7 and 7A apply in relation to the operator of a relevant disposal site as they apply in relation to the licensee of a licensed site, but with the following modifications— (a) a reference in those sections to a case in which a nuclear site licence has been granted is to be read as a reference to a case in which an appropriate permit has been granted; (b) a reference in those sections to a site in respect of which a nuclear site licence has been granted is to be read as a reference to a relevant disposal site; (c) a reference in those sections to the licensee of a licensed site is to be read as a reference to the operator of a relevant disposal site; (d) a reference in those sections to a nuclear installation is to be read as a reference to an installation for the disposal of nuclear matter; (e) paragraph (d) of section 7(3B) is to be disregarded; (f) the reference in section 7(1B)(a) to the period of responsibility of a licensee under a nuclear site licence is to be read, when applied in relation to the operator of a relevant disposal site, as a reference to the period during which the operator is responsible for the relevant disposal site. (2) For the purposes of subsection (1)(f) an operator of a relevant disposal site is responsible for the relevant disposal site or any part of it during the period that— (a) begins— (i) when article 4 of the Nuclear Installations (Liability for Damage) Order 2016 comes fully into force, or (ii) if later, when the person becomes the operator of the site or, as the case may be, part of it, and (b) ends with whichever of the dates in subsection (3) is the earliest. (3) The dates referred to in subsection (2)(b) are— (a) the date when the appropriate environment authority gives notice in writing to the operator of the site that in the opinion of that authority there has ceased to be any danger from ionising radiations from anything on the site or, as the case may be, part of it; (b) the date when another person becomes the operator of the site or, as the case may be, part of it; (c) the date when the following conditions have both become satisfied— (i) the site or, as the case may be, part of it ceases to be used by the operator, and (ii) the site or, as the case may be, that part of it is used or occupied by or on behalf of the Crown; (d) the date when a nuclear site licence is granted in respect of the site or, as the case may be, part of it. (4) Subject to subsections (5), (6) and (7), a site is a relevant disposal site for the purposes of this section if— (a) it is used for the operation of an installation for the disposal of nuclear matter, and (b) that use is a use for which the authority of an appropriate permit is required. (5) A site is not a relevant disposal site if it is— (a) a site or part of a site in respect of which a nuclear site licence has been granted, (b) premises treated because of section 8 as a site for which a nuclear site licence has been granted or part of such premises, or (c) a site or part of a site used or occupied by or on behalf of the Crown. (6) A site is not a relevant disposal site if— (a) any person using the site ceased, before article 4 of the Nuclear Installations (Liability for Damage) Order 2016 came fully into force, to accept on the site any nuclear matter for the purposes of disposal on the site, and (b) no person using the site has, after article 4 came fully into force, accepted on the site any nuclear matter for the purposes of disposal on the site. (7) A site is not a relevant disposal site if the nuclear matter disposed of in the installation or installations on the site consists only of nuclear matter that is excepted matter. (8) If a site ceases to be a relevant disposal site, no liability may arise by virtue of this section after the time it ceases to be a relevant disposal site, except in relation to an occurrence or event that began to happen before that time. (9) In this section— - “appropriate permit” means— in relation to a site in England or Wales, a permit under regulations made under section 2 of the Pollution Prevention and Control Act 1999 authorising a person to use the site for the disposal of radioactive waste; in relation to a site in Scotland or Northern Ireland, an authorisation under section 13 of the Radioactive Substances Act 1993 authorising a person to use the site for the disposal of radioactive waste; - “operator”, in relation to a relevant disposal site, means the person who uses the site to operate the installation by virtue of which the site is a relevant disposal site.

Duties of United Kingdom Atomic Energy Authority

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In section 8 of the 1965 Act[^f00008] (duty of the UKAEA)—

• (a) for “Section 7” substitute “Sections 7 and 7A”;

• (b) for “section 7” substitute “sections 7 and 7A”.

Duties of Crown in respect of certain sites

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• (1) Section 9 of the 1965 Act (duty of Crown in respect of certain sites) is amended as follows.

• (2) The section is renumbered as subsection (1).

• (3) In that subsection (1), for “section 7” substitute “sections 7 and 7A”.

• (4) After subsection (1) insert—

(2) If a government department uses a site for a purpose which, if section 7B applied to the Crown, would cause the site to be a relevant disposal site, sections 7 and 7A are to apply in respect of that site as they apply in relation to the licensee of a licensed site, but with the following modifications— (a) a reference to a case in which a nuclear site licence has been granted is to be read as a reference to a case in which a site is used by a government department for a purpose which, if section 7B applied to the Crown, would cause the site to be a relevant disposal site (a “disposal purpose”); (b) a reference in those sections to a site in respect of which a nuclear site licence has been granted is to be read as a reference to a site used by a government department for a disposal purpose; (c) a reference in those sections to the licensee of a licensed site is to be read as a reference to the government department that is using a site for a disposal purpose; (d) paragraph (d) of section 7(3B) is to be disregarded; (e) the reference in section 7(1B)(a) to the period of responsibility of a licensee under a nuclear site licence is to be read, when applied in relation to a government department using a site for a disposal purpose, as a reference to the period during which the department is responsible for the site. (3) For the purposes of subsection (2)(e) a government department is responsible for a site used by it for a disposal purpose, or for any part of a site so used by it, during the period that— (a) begins— (i) when article 4 of the Nuclear Installations (Liability for Damage) Order 2016 comes fully into force, or (ii) if later, when the department starts to use the site or, as the case may be, part of it for a disposal purpose, and (b) ends with whichever of the dates in subsection (4) is the earliest. (4) The dates referred to in subsection (3)(b) are— (a) the date when the department ceases to occupy the site or, as the case may be, part of it, and (b) the date when, if section 1 applied to the Crown, the use of the site or, as the case may be, part of it would require the authority of a nuclear site licence. (5) In determining for the purposes of subsection (2) whether a use of a site would, if section 7B applied to the Crown, cause the site to be a relevant disposal site— (a) section 7B(5)(a) is to be read as if it referred to a site or part of a site which is or was used for a purpose which, if section 1 applied to the Crown, would require the authority of a nuclear site licence in respect of that site, (b) section 7B(5)(c) is to be disregarded, (c) any limitation on the application to the Crown of a requirement to have an appropriate permit is to be disregarded, and (d) the Crown is to be taken to have complied with any requirement which would, if complied with, exempt a person from being required to have an appropriate permit in relation to the site.

Duties of certain foreign operators

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• (1) Section 10 of the 1965 Act (duty of certain foreign operators) is amended as follows.

• (2) For subsection (1) substitute—

(1) It is the duty of a relevant foreign operator to secure that no occurrence involving nuclear matter which is not excepted matter and satisfying the conditions in subsections (2) and (4) causes— (a) injury to any person, (b) damage to any property of any person other than that operator, or (c) significant impairment of the environment, being injury, damage or impairment that arises out of or results from the radioactive properties, or a combination of those and any toxic, explosive or other hazardous properties, of that nuclear matter. (1A) It is the duty of a relevant foreign operator to secure that no event happens that creates a grave and imminent threat of a breach of the duty under subsection (1).

• (3) For subsection (2) substitute—

(2) The condition in this subsection is that the occurrence is— (a) an occurrence taking place wholly or partly within United Kingdom limits; or (b) an occurrence taking place outside those limits which also involves nuclear matter in respect of which a duty is imposed on any person by section 7, 7B, 8 or 9. (3) For the purposes of subsection (2), an occurrence takes place within United Kingdom limits if it takes place— (a) within the territorial limits of the United Kingdom, or (b) within the limits of the United Kingdom’s relevant maritime zone, and the limits of that zone are to be treated as applying to sea, sea bed, subsoil and airspace. (4) The condition in this subsection is that the nuclear matter involved in the occurrence would, if the relevant foreign operator were the licensee of a licensed site and that operator’s relevant site were a licensed site, satisfy the requirement in section 7A(1) in relation to the relevant foreign operator at the time of the occurrence.

Cost of measures of reinstatement

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• (1) After section 11 of the 1965 Act insert—

(11A) (1) Where as a result of a breach of a duty imposed by section 7, 7B, 8, 9 or 10 there is significant impairment of the environment, a qualifying public authority may make a claim under this Act for compensation in respect of the reasonable cost of relevant measures of reinstatement relating to that impairment. (2) Subsection (1) is subject to subsection (3) and sections 11B and 11D. (3) Compensation is not payable by virtue of a claim under subsection (1) in respect of the cost of measures of reinstatement that benefit or would benefit property if the property is such that damage to it would not constitute damage in breach of a duty imposed by— (a) section 7 (see section 7(1A)(b), (1C)(b), (3) and (3A)), (b) section 7B (see section 7(1A)(b), (1C)(b), (3) and (3A) as applied by section 7B), (c) section 8 (see section 7(1A)(b), (1C)(b), (3) and (3A) as applied by section 8), (d) section 9 (see section 7(1A)(b), (1C)(b), (3) and (3A) as applied by section 9), or (e) section 10 (see section 10(1)(b)), as the case may be. (4) A public authority is a qualifying public authority, in relation to a particular significant impairment of the environment, if it may in the exercise of its functions— (a) take, or arrange for the taking of, measures of reinstatement relating to that impairment of the environment, or (b) pay (otherwise than under this Act) costs incurred by another public authority in taking, or arranging for the taking of, measures of reinstatement relating to that impairment. (5) A measure of reinstatement relating to a significant impairment of the environment is a relevant measure of reinstatement relating to that impairment if, or to the extent that, it is a measure reasonably taken for the purpose of— (a) reinstating or restoring what has been destroyed or damaged in the environment, or (b) establishing the equivalent of what has been destroyed or damaged in the environment. (6) A measure of reinstatement is reasonably taken for the purposes of this section if taking that measure is appropriate and proportionate in the circumstances. (7) A reference in this section to the environment is a reference to the environment within the territorial limits of the United Kingdom, in or above the exclusive economic zone of the United Kingdom or on the continental shelf of the United Kingdom. (8) In this section and sections 11B, 11D and 11E— - “holder of a public office” means— a person holding an office under the Crown, a person holding an office created or continued in existence by a public general Act or by legislation passed by the Scottish Parliament, the National Assembly for Wales or the Northern Ireland Assembly, or a person holding an office the remuneration in respect of which is paid out of money provided by Parliament, the Scottish Parliament, the National Assembly for Wales or the Northern Ireland Assembly; - “local authority” means— in relation to England, a county council, a district council, a parish council, a London borough council, the Common Council of the City of London or the Council of the Isles of Scilly, in relation to Scotland, a council constituted under section 2(1) of the Local Government etc. (Scotland) Act 1994, in relation to Wales, a county council, a county borough council or a community council, or in relation to Northern Ireland, a district council; - “public authority” means a holder of a public office or a public body in the United Kingdom; - “public body” includes a government department (including the Welsh Assembly Government, any part of the Scottish Administration and a Northern Ireland department) and a local authority. (11B) (1) Compensation under this Act is payable by virtue of a claim under section 11A(1) only if the claim relates to measures of reinstatement approved by— (a) the Secretary of State under this section, or (b) if a decision under this section is appealed under section 11D, the court that determines the appeal under section 11D. (2) A qualifying public authority may apply to the Secretary of State for approval under this section before or after the measures of reinstatement are taken. (3) The public authority must publish a notice of its application. (4) The notice must be published in a manner that appears to the authority to be appropriate for bringing it to the attention of— (a) the person whose breach, or alleged breach, of a duty imposed by section 7, 7B, 8, 9 or 10 caused, or is alleged to have caused, the impairment of the environment; (b) in relation to any property that is or would be affected by the measures of reinstatement, any person who appears to the authority to have such interest in or right over that property as would entitle that person to claim for damage to property. (5) A notice of an application for approval must specify the measures of reinstatement for which approval is sought. (6) The Secretary of State may approve a measure of reinstatement under this section only if satisfied that— (a) there is significant impairment of the environment; (b) the measure is, in relation to that impairment, a relevant measure of reinstatement within the meaning of section 11A; (c) the amount claimed in respect of the cost of the measure is reasonable; (d) the public authority applying for approval in relation to a measure of reinstatement is a qualifying public authority within the meaning of section 11A as regards that measure. (7) The Secretary of State may refuse to approve measures of reinstatement on the ground that the applicant, or the public authority whose costs the applicant has paid or proposes to pay, is or was not the appropriate public authority to take the measures or to arrange for them to be taken. (8) The Secretary of State may approve some but not others of the measures to which the application relates. (9) A decision by the Secretary of State under this section is not to be taken as determining— (a) whether or not there was a breach of a duty under section 7, 7B, 8, 9 or 10, or (b) whether or not the impairment of the environment arises out of or results from a breach of such a duty. (10) The Secretary of State must publish a notice of a decision made under this section. (11) For each of the measures of reinstatement to which the application relates, the notice of decision must— (a) if approval is refused, state whether or not approval is refused on the ground mentioned in subsection (7), and (b) except in a case where approval is refused on that ground, specify the reasons why the Secretary of State is or is not satisfied as to the matters in subsection (6). (12) If the Secretary of State makes a claim for compensation under section 11A(1), the Secretary of State must appoint an independent person to carry out the functions of the Secretary of State under this section and sections 11C and 11D as regards approving measures of reinstatement. (13) Approval by the appointed person is to be treated as approval by the Secretary of State for the purposes of subsection (1). (11C) (1) Persons who satisfy the requirements of subsection (2) may make representations to the Secretary of State as regards the measures of reinstatement for which approval is sought by an application under section 11B. (2) A person satisfies the requirements of this subsection if the person is— (a) the person whose breach, or alleged breach, of a duty imposed by section 7, 7B, 8, 9 or 10 caused, or is alleged to have caused, the impairment of the environment; (b) in relation to any property that is or would be affected by the measures of reinstatement, a person who has such interest in or right over that property as would entitle that person to claim for damage to property. (3) The Secretary of State may invite other persons to make representations as regards the measures of reinstatement. (4) The Secretary of State must publish a notice of the arrangements for making representations under this section in respect of an application under section 11B. (11D) (1) The following persons may appeal to the appropriate court against a decision of the Secretary of State on an application under section 11B— (a) where approval of a measure of reinstatement is refused, the public authority that applied for approval of the measure; (b) where approval of a measure of reinstatement is granted, the person whose breach, or alleged breach, of a duty imposed by section 7, 7B, 8, 9 or 10 caused, or is alleged to have caused, the impairment of the environment. (2) A decision of the Secretary of State to refuse approval on the ground mentioned in section 11B(7) may not be appealed under this section. (3) Subject to subsection (2), the court may on an appeal under this section determine whether or not to approve the measures of reinstatement to which the appeal relates. (4) Section 11B(6) applies in relation to a determination of the court as it applies in relation to a decision of the Secretary of State under section 11B. (5) The appropriate court is the court that has, or but for section 16(3E) would have had, jurisdiction in accordance with section 16C to determine a claim by virtue of section 7, 7B, 8, 9 or 10 for compensation under this Act in respect of the cost of the measures of reinstatement in question. (6) A decision of a person appointed under section 11B(12) may be appealed in the same way as a decision of the Secretary of State. (11E) (1) This section applies if approval on the part of the United Kingdom is required by any relevant foreign law in connection with a claim under that law corresponding to such claim as may be made under paragraph 1 of Schedule 1A. (2) Sections 11B to 11D are to apply in relation to such a claim under the relevant foreign law as they apply in relation to a claim under section 11A(1). (3) Where sections 11B to 11D apply by virtue of subsection (2)— (a) references to a public authority are to be treated as including references to a person who is entitled, in the particular case, to take or arrange for the taking of such measures as give rise to a claim under the relevant foreign law for compensation, (b) references to a breach of a duty under section 7, 7B, 8, 9 or 10 are to be treated as references to the corresponding occasion of compensation under the relevant foreign law, (c) section 11B(6) is to be treated as requiring the Secretary of State to approve a measure of reinstatement only if satisfied that— (i) the measure is such that the costs of taking the measure may be claimed under the relevant foreign law made for purposes corresponding to section 11A, if liability is established under the relevant foreign law, and (ii) the person applying for approval is entitled to take or arrange for the taking of the measure, (d) references to the appropriate court are to be treated as references to the High Court of Justice, and (e) section 11B(7) is not to have effect if the person applying for approval is not a public authority. (11F) Schedule 1A (approval of measures of reinstatement in places outside the United Kingdom) has effect.

• (2) After Schedule 1 to the 1965 Act insert the Schedule 1A set out in Schedule 1 to this Order.

Loss of income derived from the environment

9

After section 11F of the 1965 Act (inserted by article 8) insert—

(11G) (1) Where as a result of a breach of a duty imposed by section 7, 7B, 8, 9 or 10 there is significant impairment of the environment, a claim may be made under this Act for compensation in respect of a person’s loss of profits if the circumstances of that loss satisfy the requirements in subsection (2). (2) The requirements are that— (a) the profits are from income that the person generates, or but for the impairment would generate, by means of an activity which entails directly exploiting the resources in a part of the environment, (b) the activity is an activity that the person may lawfully carry on, or but for the impairment would be able lawfully to carry on, in that part of the environment, (c) the person had started to carry on, and had not ceased to carry on, the activity in that part of the environment before the occurrence began to happen, (d) some or all of that part of the environment is significantly impaired as a result of the breach of duty, and (e) as a direct consequence of that significant impairment, the person is not able to carry on the activity in question in so much of that part of the environment as is significantly impaired or profits less from carrying on the activity there. (3) Compensation is not payable to a person by virtue of a claim under subsection (1) if the activity in question is an activity carried on by the person as an employee. (4) Compensation is not payable to a person by virtue of a claim under subsection (1) if the loss of profits is— (a) a loss for which that person may claim compensation under this Act by way of compensation for damage to property, or (b) a loss for which that person could make such a claim but for the property being such that damage to it would not constitute damage in breach of a duty imposed by— (i) section 7 (see section 7(1A)(b), (1C)(b), (3) and (3A)), (ii) section 7B (see section 7(1A)(b), (1C)(b), (3) and (3A) as applied by section 7B), (iii) section 8 (see section 7(1A)(b), (1C)(b), (3) and (3A) as applied by section 8), (iv) section 9 (see section 7(1A)(b), (1C)(b), (3) and (3A) as applied by section 9), or (v) section 10 (see section 10(1)(b)), as the case may be. (5) Compensation under this Act is not payable by virtue of a claim under subsection (1) if the part of the environment in question is the relevant site by reference to which the claim under subsection (1) is established or a part of it.

Cost of preventive measures

10

After section 11G of the 1965 Act (inserted by article 9) insert—

(11H) (1) Where there is a breach of a duty imposed by section 7, 7B, 8, 9 or 10, a claim may be made for compensation under this Act in respect of the reasonable cost of preventive measures reasonably taken after the breach of duty. (2) Subject to subsections (3) and (4), where there is a breach of a duty imposed by section 7, 7B, 8, 9 or 10, a claim may be made for compensation under this Act in respect of injury to a person or damage to property caused by— (a) preventive measures reasonably taken after the breach of duty by a person other than the person whose breach of duty it is, or (b) preventive measures taken after the breach of duty by the person whose breach of duty it is. (3) The compensation that may be claimed under subsection (2)(a) does not include compensation in respect of so much of any injury or damage as is caused by an act or omission done maliciously or negligently. (4) The compensation that may be claimed under subsection (2) does not include compensation in respect of damage to property where the property is such that damage to it would not constitute damage in breach of a duty imposed by— (a) section 7 (see section 7(1A)(b), (1C)(b), (3) and (3A)), (b) section 7B (see section 7(1A)(b), (1C)(b), (3) and (3A) as applied by section 7B), (c) section 8 (see section 7(1A)(b), (1C)(b), (3) and (3A) as applied by section 8), (d) section 9 (see section 7(1A)(b), (1C)(b), (3) and (3A) as applied by section 9), or (e) section 10 (see section 10(1)(b)), as the case may be. (5) The payment of compensation in respect of injury to a person or damage to property otherwise than under this Act by or on behalf of a person who takes preventive measures does not prevent the making of a claim under subsection (2) (subject to the exceptions in subsections (3) and (4)) if and to the extent that that payment does not make full compensation in respect of the injury or damage in question. (6) A reference in subsection (1) or (2) to a preventive measure reasonably taken after a breach of duty includes a reference to such part of a preventive measure as is so taken. (7) A preventive measure is a measure taken in order to minimise or prevent— (a) injury to a person or damage to property constituting a breach of a duty imposed by section 7, 7B, 8, 9 or 10, or (b) significant impairment of the environment occasioning costs or losses in respect of which a claim under section 11A(1) or 11G(1) or paragraph 1 of Schedule 1A may be made. (8) A preventive measure is reasonably taken for the purposes of this section if taking that measure is appropriate and proportionate in the circumstances. (9) Where the breach of a duty under section 7(1E), 7B, 8, 9 or 10(1A) consists of an event that creates a grave and imminent threat of a breach of another duty under section 7, 7B, 8, 9 or 10, no preventive measure may be considered appropriate and proportionate unless it is possible for there to be at least one person, not being a person involved in the event, whose likely exposure if the threatened breach of duty were to happen would be in excess of one of the following— (a) an effective dose of 5 mSv in the period of one year beginning with the day on which the threatened breach of duty happens or begins to happen; (b) an equivalent dose for the lens of the eye of 15 mSv in that period; (c) an equivalent dose for the skin of 50 mSv in that period over 1 cm² area of skin, regardless of the area exposed. (10) In quantifying a person’s likely exposure for the purposes of subsection (9), the effect of preventive measures taken to protect the person’s health within 24 hours of the time when the event first creates the grave and imminent threat is to be disregarded. (11) In subsection (9)— (a) an effective dose is the sum of the effective dose to the whole body from external radiation and the committed effective dose from internal radiation; (b) an equivalent dose for a particular human tissue or organ includes the committed equivalent dose to that tissue or organ from internal radiation; (c) “external radiation”, in relation to a person, means ionising radiation coming from outside the body of that person; (d) “internal radiation”, in relation to a person, means ionising radiation coming from inside the body of that person. (12) Subsection (9) does not apply in the case of— (a) preventive measures taken as regards a person involved in the event; (b) preventive measures relating to the food supply. (13) For the purposes of subsections (9) and (12), a person is involved in such an event if— (a) where the event relates to a threatened breach of duty on a licensed site, the person is on the licensed site at any time when the event is happening, (b) where the event relates to a threatened breach of duty involving nuclear matter in the course of carriage, the person is concerned with that carriage of nuclear matter at any time when the event is happening, (c) where the event relates to a threatened breach of duty on a licensed site, the person is, after the event happens, on the licensed site for the purpose of taking preventive measures or taking part in an emergency response to the event, or (d) where the event relates to a threatened breach of duty involving nuclear matter in the course of carriage, the person is at the place where the event is happening or has happened for the purpose of taking preventive measures or taking part in an emergency response to the event.

Right to compensation with respect to injury, damage and significant impairment of the environment

11

• (1) Section 12 of the 1965 Act (right to compensation) is amended as follows.

• (2) For subsection (1) (when compensation is payable in accordance with section 16) substitute—

(1) Where any injury or damage has been caused in breach of a duty imposed by section 7, 7B, 8, 9 or 10, compensation is payable in accordance with section 16 wherever the injury or damage was incurred. (1A) Where any significant impairment of the environment has been caused in breach of a duty imposed by section 7, 7B, 8, 9 or 10, such compensation as may be claimed by virtue of section 11A(1) or 11G(1) or paragraph 1 of Schedule 1A is payable in accordance with section 16 wherever the impairment arises. (1B) Where preventive measures are taken after a breach of a duty imposed by section 7, 7B, 8, 9 or 10, such compensation as may be claimed by virtue of section 11H(1) is payable in accordance with section 16 wherever the preventive measures are taken. (1C) Where any injury to a person or damage to property is caused by preventive measures taken after a breach of a duty imposed by section 7, 7B, 8, 9 or 10, such compensation as may be claimed by virtue of section 11H(2) is payable in accordance with section 16 wherever the injury or damage was incurred. (1D) Subsections (1) to (1C) are subject to— (a) section 13(1), (1C), (3), (4) and (4A), (b) section 15, and (c) section 17(1). (1E) No liability other than that imposed by subsections (1) to (1C) may be incurred by any person in respect of— (a) injury, damage or significant impairment of the environment caused or threatened in breach of a duty imposed by section 7, 7B, 8, 9 or 10, (b) preventive measures taken after a breach of a duty imposed by section 7, 7B, 8, 9 or 10, or (c) injury or damage caused by preventive measures taken after a breach of a duty imposed by section 7, 7B, 8, 9 or 10. (1F) Subsection (1E) is subject to— (a) subsections (1G), (3) and (4), and (b) section 21(2). (1G) Subsection (1E) does not affect such liability as may be incurred in relation to— (a) a preventive measure or part of a preventive measure in respect of which a claim for compensation under section 11H(1) may not be made, or (b) such injury or damage as is excluded from a claim for compensation under this Act by section 11H(3).

• (3) For subsection (2) substitute—

(2) Subject to subsection (3), any injury, damage or significant impairment of the environment which, though not caused in breach of a duty imposed by section 7, 7B, 8, 9 or 10, is not reasonably separable from injury, damage or significant impairment so caused, is to be deemed for the purposes of subsections (1) to (1C) to have been so caused.

• (4) In subsection (3) (injury or damage attributable to breach of duty under the Act and another cause: double compensation not allowed)—

• (a) for “any injury or damage” substitute “any injury, damage or significant impairment of the environment”;

• (b) for “same injury or damage” substitute “same injury, damage or significant impairment of the environment”.

• (5) For subsection (3A)[^f00009] (special provision for property on site) substitute—

(3A) Subject to subsection (4), where damage to any property has been caused which was not caused in breach of a duty imposed by section 7, 7B, 8, 9 or 10 but which would have been caused in breach of such a duty if in section 7(1A)(b) and (1C)(b) the words “other than the licensee” or in section 10(1)(b) the words “other than that operator” had not been enacted, no liability which, apart from this subsection, would have been incurred by any person in respect of that damage is to be so incurred except— (a) in pursuance of an agreement to incur liability in respect of such damage entered into in writing before the occurrence of the damage, or (b) where the damage was caused by an act or omission of that person done with intent to cause injury or damage.

• (6) After subsection (3A) insert—

(3B) Subject to subsection (4), where compensation for damage to any property would have been payable by virtue of a claim under section 11H(2) if section 11H(4) had not been enacted, no liability which, apart from this subsection, would have been incurred by any person in respect of that damage is to be so incurred except— (a) in pursuance of an agreement to incur liability in respect of such damage entered into in writing before the occurrence of the damage, or (b) where the damage was caused by an act or omission done maliciously or negligently by the person whose breach of a duty imposed by section 7, 7B, 8, 9 or 10 is the reason for the claim.

• (7) In subsection (4)[^f00010] (saving for conventions on international carriage), for the words from “subsection (1)(b)” to “this section” substitute “subsection (1E), (3A) or (3B)”.

• (8) In the heading of section 12, omit “by virtue of ss. 7 to 10”.

Exclusion of rights to compensation in certain cases

12

• (1) Section 13 of the 1965 Act (exclusion, extension or reduction of compensation in certain cases) is amended as follows.

• (2) For subsection (1) (exclusion of occurrences outside the United Kingdom and injury or damage incurred in a place not in a relevant territory) substitute—

(1) Compensation is not payable under this Act in the case of a breach of a duty imposed by section 7, 7B, 8, 9 or 10 if— (a) the breach of duty consisted of an occurrence falling within section 7(1B)(b) or 10(1) which took place wholly within the limits relating to a single relevant territory other than the United Kingdom; (b) the breach of duty consisted of an event creating a grave and imminent threat of such breach of duty as is mentioned in paragraph (a) and the event took place wholly within the limits relating to a single relevant territory other than the United Kingdom; (c) the injury, damage or significant impairment of the environment caused by the breach of duty was incurred within the territorial limits of a country or territory that is not a qualifying territory; or (d) in relation to compensation that would but for this paragraph be claimed under section 11H(1) or (2), the preventive measures in question were or would be taken in a place within the territorial limits of a country or territory that is not a qualifying territory. (1A) For the purposes of subsection (1), the limits relating to a relevant territory are— (a) its territorial limits; and (b) where the relevant territory has a relevant maritime zone, the limits of its relevant maritime zone (which are to be treated as applying to sea, sea bed, subsoil and airspace). (1B) Subsection (1) is subject to subsections (2) and (5). (1C) Compensation is not payable under this Act in the case of a breach of a duty imposed by section 10 if— (a) the injury, damage or significant impairment of the environment caused by the breach of duty was incurred in, under or above the sea outside the territorial limits of any country or territory; or (b) in relation to compensation that would but for this paragraph be claimed under section 11H(1) or (2), the preventive measures in question were or would be taken in, under or above the sea outside the territorial limits of any country or territory. (1D) Subsection (1C) does not apply if the injury, damage or significant impairment of the environment in question was incurred or the preventive measures in question were or would be taken— (a) in or above the sea within the exclusive economic zone of any qualifying territory, or (b) on the continental shelf of any qualifying territory. (1E) Subsection (1C) is also subject to subsections (2A) and (5).

• (3) In subsection (2) (limitation in subsection (1)(b) not to apply to United Kingdom-registered ships and aircraft)—

• (a) after “section 7” insert “, 7B”, and

• (b) for “subsection (1)(b)” substitute “subsection (1)(c) and (d)”.

• (4) After subsection (2) insert—

(2A) In the case of a breach of duty imposed by section 10, subsection (1C)(b) does not apply to injury or damage incurred by, or by persons or property on, a ship or aircraft registered in a qualifying territory.

• (5) In subsection (3) (certain liability arising by virtue of section 10 to depend on agreement in writing)—

• (a) for “in respect of injury or damage caused by” substitute “in the case of”, and

• (b) for the words from “as is” to “that section” substitute “as satisfies the condition in section 10(4) by reference to the condition in section 7A(2)”.

• (6) For subsection (4) (effect of armed conflict or natural disaster) substitute—

(4) A duty imposed by section 7(1A) or (1C), 7B, 8, 9, 10(1) or 11 as regards occurrences— (a) does not impose on the person subject to that duty any liability with respect to injury, damage or impairment of the environment caused by an occurrence which constitutes a breach of that duty if the occurrence, or the fact that the occurrence causes the injury, damage or impairment of the environment, is attributable to hostile action in the course of any armed conflict, including any armed conflict within the United Kingdom; but (b) does impose such a liability where the occurrence, or the fact that the occurrence causes the injury, damage or significant impairment of the environment, is attributable to a natural disaster, notwithstanding that the disaster is of such an exceptional character that it could not reasonably have been foreseen. (4A) A duty imposed by section 7(1E), 7B, 8, 9 or 10(1A) as regards events creating a grave and imminent threat of a breach of another duty imposed by section 7, 7B, 8, 9 or 10— (a) does not impose any liability on the person subject to that duty if the event is attributable to hostile action in the course of any armed conflict, including any armed conflict within the United Kingdom; but (b) does impose such a liability where the event is attributable to a natural disaster, notwithstanding that the disaster is of such an exceptional character that it could not reasonably have been foreseen.

Extension of rights to compensation in certain cases

13

• (1) Section 13 of the 1965 Act is further amended as follows.

• (2) For subsection (5)[^f00011] (claim for compensation by a person who makes a payment in respect of injury etc but not because the person is subject to a duty under this Act) substitute—

(5) Where, in the case of an occurrence or event which constitutes a breach of a duty under section 7, 7B, 8, 9 or 10, a person (“A”) other than the person subject to that duty makes a payment to another person (“B”) in respect of material harm connected to the breach of duty or the cost of preventive measures taken after the breach of duty and— (a) the payment is made in pursuance of any of the international conventions referred to in the Acts mentioned in section 12(4), or (b) the payment is made in accordance with the law of a country or territory that is not a relevant territory, A may make such claim under this Act (if any) as would have been available to A if the material harm in question had affected A or A’s property or A had incurred the cost of taking the preventive measures. (5ZA) A reference in subsection (5) to material harm connected to a breach of a duty under section 7, 7B, 8, 9 or 10 is a reference to— (a) injury, damage to property or significant impairment of the environment caused by the occurrence which constitutes the breach of duty, or (b) injury or damage to property caused by a preventive measure taken after the occurrence or event which constitutes the breach of duty. (5ZB) A claim for compensation under this Act made by A by virtue of subsection (5) is not to be treated as a special relevant claim unless it would have been such a claim if made by B.

• (3) In subsection (5A)[^f00012] (limit on claims made by virtue of subsection (5)), for the words from “paragraph (b)” to the end substitute “subsection (5)(b), is subject to the limit on liability under section 16(1), (1ZA), (1ZB) or (2) that is applicable to the person subject to the duty.”

Reduction of compensation in certain cases

14

In section 13 of the 1965 Act, for subsection (6) (reduction of compensation for deliberate or reckless injury etc) substitute—

(6) The amount of compensation payable to or in respect of any person under this Act by virtue of a breach of a duty imposed by section 7, 7B, 8, 9 or 10 may be reduced in accordance with subsection (7). (7) The amount may be reduced if, and to the extent that, the injury, damage or significant impairment of the environment in respect of which the compensation is, or would but for this subsection be, payable to or in respect of the person is attributable to— (a) an act or omission of that person done with the intention of causing harm to any person or property or to any part of the environment, or (b) an act or omission of that person done with reckless disregard for the consequences of the act or omission.

Damage to property and measures of reinstatement

15

After section 13 of the 1965 Act insert—

(13A) (1) Subsection (2) applies if— (a) a person claims compensation under this Act in respect of damage to property, (b) the property is affected by relevant measures of reinstatement (as defined by section 11A) that have been taken by, or under arrangements made by, a qualifying public authority (as defined in section 11A), and (c) the damage to property and the significant impairment of the environment were caused by the same occurrence. (2) The court that is determining the person’s claim in respect of damage to property must take into account, as affecting the amount of the person’s loss, any benefit or loss that— (a) arises from or in connection with the measures of reinstatement, and (b) is gained or suffered by the person. (3) Subsection (4) applies if— (a) a person claims compensation under this Act in respect of damage to property, (b) the property is affected, or likely to be affected by, relevant measures of reinstatement— (i) that have been started by, or under arrangements made by, a qualifying public authority but have not been completed, or (ii) that are proposed to be taken by, or under arrangements made by, a qualifying public authority, and (c) the damage to property and the significant impairment of the environment were caused by the same occurrence. (4) The court in determining the person’s claim in respect of damage to property may, if it considers it just to do so, take into account, as affecting the amount of the person’s loss, any benefit or loss that is likely to— (a) arise from or in connection with the measures of reinstatement as proposed to be carried out and be gained by the person, and (b) be gained or suffered (as the case may be) by the person. (5) Where the court determines a person’s claim in the manner described in subsection (2) or (4), the person may not claim to be further compensated under this Act in respect of measures of reinstatement affecting the property that are taken because of the same occurrence. (6) Subsection (7) applies if— (a) a qualifying public authority claims compensation under this Act by virtue of section 11A(1) in relation to significant impairment of a part of the environment (“the section 11A(1) claim”), (b) some or all of the significant impairment also constitutes damage to property, and (c) the amount of compensation payable in respect of the section 11A(1) claim falls to be determined after— (i) a court has determined, in proceedings for compensation under this Act for damage to a person’s property, that compensation is payable in accordance with section 16 for the damage to the property, or (ii) the persons who are, or would be, parties to such proceedings have agreed for the purposes of such proceedings that compensation is payable in accordance with section 16 for the damage to the property. (7) The court in determining the section 11A(1) claim may, if it considers it just to do so, reduce the amount of compensation otherwise payable in accordance with section 16 so that compensation claimed by virtue of section 11A(1) is not payable by reference to matters for which compensation for damage to property is already payable. (8) Subsections (1) to (7) apply in relation to— (a) relevant measures of reinstatement (as defined by paragraph 1 of Schedule 1A), (b) persons who satisfy the condition in paragraph 2 of Schedule 1A, and (c) claims made by virtue of paragraph 1 of Schedule 1A, as they apply in relation to relevant measures of reinstatement (as defined by section 11A), qualifying public authorities and claims made by virtue of section 11A(1).

Liens etc in respect of ships and aircraft excluded

16

• (1) Section 14 of the 1965 Act (protection for ships and aircraft) is amended as follows.

• (2) In subsection (1)[^f00013], for the words from the beginning to “shall not” (in the first place) substitute “A claim under this Act falling within subsection (1A) is not to”.

• (3) After subsection (1) insert—

(1A) The claims are— (a) a claim in respect of an occurrence falling within section 7(1B)(b), 10(1) or 11 which constitutes a breach of a person’s duty under section 7, 7B, 8, 9, 10 or 11; (b) a claim in respect of an event that constitutes a breach of a duty under section 7(1E), 7B, 8, 9 or 10(1A) where the threatened breach of duty would consist of an occurrence falling within section 7(1B)(b) or 10(1).

Time for bringing claims under sections 7 to 11

17

• (1) Section 15 of the 1965 Act (time for bringing claims under sections 7 to 11) is amended as follows.

• (2) For subsection (1) (claim not to be entertained if made more than 30 years after the relevant date) substitute—

(1) A claim by virtue of section 7, 7B, 8, 9, 10 or 11 of this Act may be made at any time before, but is not to be entertained if made at any time after, the expiration of 10 years from the relevant date. (1A) Subsection (1) is subject to subsections (3), (4) and (6).

• (3) At the end of the section insert—

(3) A claim in respect of injury caused by a breach of a duty under section 7, 7B, 8, 9, 10 or 11 may be made at any time before, but is not to be entertained if made at any time after, the expiration of 30 years from the relevant date. (4) A claim in respect of injury where— (a) that injury is caused by ionising radiations, and (b) exposure to those ionising radiations is the result of preventive measures having been taken after a breach of a duty under section 7, 7B, 8, 9 or 10, may be made at any time before, but is not to be entertained if made at any time after, the expiration of 30 years from the relevant date. (5) Subsections (3) and (4) are subject to subsection (6). (6) A claim made after the expiration of the period that applies to it because of subsection (1), (3) or (4) may be entertained if— (a) the European Nuclear Energy Tribunal has determined that a court in the United Kingdom has jurisdiction in respect of that claim or description of claim, and (b) the claim is brought— (i) within the period specified by the Tribunal, or (ii) if the Tribunal does not specify a period, within the period of 28 days beginning with the day after the day on which the Tribunal made its determination. (7) This section has effect notwithstanding provision in any other enactment about the period of time for the bringing of proceedings. (8) A reference in this section to the relevant date is— (a) in the case of a claim in respect of an occurrence which constitutes a breach of a person’s duty under section 7(1A) or (1C), 7B, 8, 9, 10(1) or 11, a reference to— (i) the date of the occurrence, (ii) where the occurrence is a continuing one, the date of the last thing to happen in the course of that occurrence, (iii) where the occurrence is one of a succession of occurrences, all of which are attributable to a particular happening on a particular relevant site or to the carrying out from time to time on a relevant site of a particular operation, the date of the last thing to happen in the course of that succession of occurrences, or (iv) where the occurrence is one of a succession of occurrences, all of which are attributable to a particular happening and take place during one course of carriage, the date of the last thing to happen in the course of that succession of occurrences; (b) in the case of a claim in respect of an event which constitutes a breach of a person’s duty under section 7(1E), 7B, 8, 9 or 10(1A) because it created a grave and imminent threat of a breach of another duty imposed by section 7, 7B, 8, 9 or 10, a reference to— (i) the date of the event, (ii) where the event is a continuing one, the date of the last thing to happen in the course of that event, (iii) where the event is one of a succession of events, all of which are attributable to a particular happening on a particular relevant site, the date of the last thing to happen in the course of that succession of events, or (iv) where the event is one of a succession of occurrences, all of which are attributable to a particular happening and take place during one course of carriage, the date of the last thing to happen in the course of that succession of events.

Nuclear matter that is stolen, lost, jettisoned or abandoned

18

• (1) In section 15 of the 1965 Act, omit subsection (2) (twenty-year limitation period where breach of duty involved nuclear matter that is stolen, lost, jettisoned or abandoned).

Satisfaction of claims by operator of site

19

• (1) Section 16 of the 1965 Act (satisfaction of claims by virtue of sections 7 to 10) is amended as follows.

• (2) For subsection (1)[^f00014] (liability of a United Kingdom operator) substitute—

(1) The liability of a person to pay compensation under this Act by virtue of a duty imposed on that person by section 7, 7B, 8 or 9 does not require that person to make in respect of any one occurrence or event constituting a breach of that duty payments by way of compensation exceeding in the aggregate, apart from payments in respect of interest or costs— (a) the equivalent in sterling of 70 million euros, where the person is the licensee of a licensed site that is prescribed for the purposes of this paragraph and the breach of duty is a breach of duty by that person as licensee of that licensed site that consists of— (i) an occurrence or event on the licensed site, or (ii) an occurrence or event elsewhere than on the licensed site involving nuclear matter other than excepted matter, where the nuclear matter in question satisfies the condition in section 7A(8) in relation to the licensee, without also satisfying any of the conditions in section 7A(2) to (7); (b) the equivalent in sterling of 70 million euros, where the person is the operator of a relevant disposal site that is a site prescribed for the purposes of this paragraph and the breach of duty is a breach of duty by that person as the operator of that relevant disposal site that consists of— (i) an occurrence or event on the relevant disposal site, or (ii) an occurrence or event elsewhere than on the relevant disposal site involving nuclear matter other than excepted matter, where the nuclear matter in question satisfies the condition in section 7A(8) (as applied by section 7B) in relation to the operator, without also satisfying any of the conditions in section 7A(2) to (7) (as applied by section 7B); (c) the equivalent in sterling of 160 million euros, where the person is the licensee of a licensed site that is prescribed for the purposes of this paragraph and the breach of duty is a breach of duty by the person as licensee of that licensed site that consists of— (i) an occurrence or event on the licensed site, or (ii) an occurrence or event elsewhere than on the licensed site involving nuclear matter other than excepted matter, where the nuclear matter in question satisfies the condition in section 7A(8) in relation to the licensee, without also satisfying any of the conditions in section 7A(2) to (7); (d) the equivalent in sterling of 80 million euros, in the case of an occurrence or event involving nuclear matter which is not excepted matter and which is either in the course of such carriage as is described in section 7A(2)(a), (3)(a), (4)(a), (5)(a) or (7)(a) or in such case as is described in section 7A(6)(c) or (7)(b), where— (i) the nuclear matter in question meets such conditions as are prescribed for the purposes of this paragraph or such conditions specific to the means of carriage used as are prescribed for the purposes of this paragraph, and (ii) that occurrence or event constitutes a breach of duty by a licensee as licensee of a licensed site; (e) the equivalent in sterling of 80 million euros, in the case of an occurrence or event involving nuclear matter which is not excepted matter and which is either in the course of such carriage as is described in section 7A(2)(a), (3)(a), (4)(a), (5)(a) or (7)(a) (as applied by section 7B) or in such case as is described in section 7A(6)(c) or (7)(b) (as applied by section 7B), where— (i) the nuclear matter in question meets such conditions as are prescribed for the purposes of this paragraph or such conditions specific to the means of carriage used as are prescribed for the purposes of this paragraph, and (ii) that occurrence or event constitutes a breach of duty by the operator of a relevant disposal site in that capacity; (f) subject to section 16B, the equivalent in sterling of 1,200 million euros, in any other case. (1ZA) Notwithstanding subsection (1), if the amount payable by a person in respect of claims for compensation under this Act in respect of any one occurrence or event constituting a breach of a duty imposed on that person by section 7, 7B, 8 or 9 reaches, in the aggregate and apart from interest or costs, the equivalent in sterling of 700 million euros, that person is not required to satisfy further claims for compensation except to the extent that they are special relevant claims. (1ZB) Notwithstanding subsection (1), if— (a) the amount payable by a person in respect of claims for compensation under this Act in respect of any one occurrence or event constituting a breach of a duty imposed on that person by section 7, 7B, 8 or 9 reaches, in the aggregate and apart from interest or costs, the amount in sterling that is— (i) the limit on liability established by the law of a relevant reciprocating territory made for purposes corresponding to those of subsection (1ZA), or (ii) the equivalent in sterling of an amount denominated in another currency or unit of account that is the limit on liability established by the law of a relevant reciprocating territory made for such purposes, and (b) that amount in sterling is less than the amount that would apply if the applicable limit were the limit in subsection (1ZA), that person is not required to satisfy further claims for compensation to the extent that they are referable to that relevant reciprocating territory.

• (3) In subsection (1A)[^f00015] (power of Secretary of State to alter amounts)—

• (a) for “either or both of the amounts specified in subsection (1) of this section” substitute “any amount specified in subsection (1), (1ZA) or (3B)”, and

• (b) for the words “any occurrence before (or beginning before)” substitute “an occurrence or event happening before (or beginning to happen before)”.

• (4) In subsection (2) (liability of a relevant foreign operator for breach of a duty imposed by section 10)—

• (a) after “occurrence” (in both places) insert “or event”;

• (b) in paragraph (a), after “section 7,” insert “7B,”.

• (5) At the end of the section insert—

(6) Before exercising any function under subsection (1) or (1A) in or as regards Scotland, the Secretary of State must consult the Scottish Ministers. (7) A reference in this section to the equivalent in sterling of an amount denominated in another currency or unit of account is a reference to the amount of sterling that is the equivalent of that amount in that currency or those units on the day (or the first day) of the occurrence or event in question.

Satisfaction of claims by Secretary of State etc

20

• (1) Section 16 of the 1965 Act is further amended as follows.

• (2) For subsection (3)[^f00016] (the use of United Kingdom and foreign public funds to satisfy claims for compensation) substitute—

(3) A claim by virtue of a duty imposed on a person by section 7, 7B, 8, 9 or 10— (a) to the extent to which, by virtue of subsection (1) or (2), though duly established, it is not or would not be payable by that person, or (b) which is a claim the full satisfaction of which out of funds otherwise required to be, or to be made, available for the purpose is prevented by section 21(1), may be the subject of proceedings for compensation under this Act brought against the appropriate authority. (3A) Payments of compensation under this Act made by the appropriate authority in such proceedings may not exceed in the aggregate, apart from payments in respect of interest or costs, the amount of the sums made available for the purpose under section 18. (3B) If the amount payable in respect of claims for compensation under this Act in respect of any one occurrence or event constituting a breach of a duty imposed on a person by section 7, 7B, 8, 9 or 10 reaches, in the aggregate and apart from interest or costs, the equivalent in sterling of 700 million euros, the appropriate authority is not required to satisfy further claims for compensation except to the extent that they are special relevant claims. (3C) If the amount payable in respect of claims for compensation under this Act in respect of any one occurrence or event constituting a breach of a duty imposed on a person by section 7, 7B, 8, 9 or 10 reaches, in the aggregate and apart from interest or costs, the amount in sterling that is— (a) the limit on liability established by the law of a relevant reciprocating territory made for purposes corresponding to those of subsection (3B), or (b) the equivalent in sterling of an amount denominated in another currency or unit of account that is the limit on liability established by the law of a relevant reciprocating territory made for such purposes, the appropriate authority is not required to satisfy further claims for compensation to the extent that they are referable to that relevant reciprocating territory. (3D) Subsection (3E) has effect in relation to— (a) a claim falling within subsection (3) to the extent that, leaving aside payments in respect of interest or costs, it is not or would not be satisfied out of sums made available for the purpose under section 18 or by means of a relevant foreign contribution; (b) a claim that is not satisfied, or so much of a claim as is not satisfied, because of— (i) subsection (1ZA) or (1ZB), (ii) a relevant foreign law made for purposes corresponding to those of subsection (1ZA) or (1ZB) which is given effect by subsection (2), or (iii) subsection (3B) or (3C). (3E) If the claim is established to the satisfaction of the appropriate authority, it is to be satisfied by the appropriate authority— (a) to such extent as Parliament may determine, and (b) out of funds provided by such means as Parliament may determine. (3F) Provision made by Parliament under subsection (3E) may make different provision for different sorts of claim.

• (3) In subsection (4) (resolution of legal questions relating to compensation beyond the requirements of the Paris Convention and the Brussels Supplementary Convention)—

• (a) for “subsection (3) of this section” substitute “subsection (3E)”;

• (b) for the words from “the appropriate court” to “the claim” substitute “the court that would have had jurisdiction in accordance with section 16C to determine the claim but for this section”.

• (4) Omit subsection (5) (definition of “the relevant period”).

• (5) After subsection (7) (inserted by article 19) insert—

(8) In this section “appropriate authority” means— (a) in the case of a claim by virtue of section 9 where the government department concerned is a part of the Scottish Administration, the Scottish Ministers; (b) in any other case, the Secretary of State.

Section 16 of the 1965 Act: supplementary

21

After section 16 of the 1965 Act insert—

(16A) (1) This section applies for the purposes of section 16. (2) A claim for compensation under this Act in the case of a breach of a duty imposed by section 7, 7B, 8, 9 or 10 is referable to a relevant reciprocating territory if— (a) the injury or damage for which compensation is claimed is such injury or damage as is mentioned in subsection (3), (b) the significant impairment of the environment by reference to which compensation is claimed by virtue of section 11A(1) or 11G(1) or paragraph 1 of Schedule 1A is such significant impairment of the environment as is mentioned in subsection (3), or (c) the preventive measures by reference to which compensation is claimed by virtue of section 11H(1) or (2) are preventive measures relating to such injury, damage or significant impairment of the environment as is mentioned in subsection (3). (3) The injury, damage and significant impairment of the environment referred to in subsection (2) are— (a) injury, damage or significant impairment of the environment that is incurred within the territorial limits of that relevant reciprocating territory; (b) injury, damage or significant impairment of the environment that is incurred in or above the exclusive economic zone or on the continental shelf of that relevant reciprocating territory; (c) injury or damage that is incurred in or above the sea outside the territorial limits of any country or territory by, or by persons or property on, a ship or aircraft registered in that relevant reciprocating territory. (4) A claim for compensation under this Act in the case of a breach of a duty imposed by section 7, 7B, 8, 9 or 10 is a special relevant claim if— (a) the injury or damage for which compensation is claimed is such injury or damage as is mentioned in subsection (5), (b) the significant impairment of the environment by reference to which compensation is claimed by virtue of section 11A(1) or 11G(1) or paragraph 1 of Schedule 1A is such significant impairment of the environment as is mentioned in subsection (5), or (c) the preventive measures by reference to which compensation is claimed by virtue of section 11H(1) or (2) are preventive measures relating to such injury, damage or significant impairment of the environment as is mentioned in subsection (5). (5) The injury, damage and significant impairment of the environment referred to in subsection (4) are— (a) injury, damage or significant impairment of the environment that is incurred within the territorial limits of the United Kingdom or a special relevant territory; (b) injury, damage or significant impairment of the environment that is incurred in or above the exclusive economic zone or on the continental shelf of the United Kingdom or a special relevant territory in connection with the exploitation or exploration of the natural resources of that exclusive economic zone or continental shelf; (c) injury or damage that is incurred in or above the sea outside the territorial limits of any country or territory by, or by persons or property on, a ship or aircraft registered in the United Kingdom or a special relevant territory; (d) injury or damage that is incurred in or above the sea outside the territorial limits of any country or territory by a national of the United Kingdom or a special relevant territory; (e) injury or damage that is incurred outside the territorial limits of any country or territory by, or by persons or property on, an artificial island, installation or structure that is subject to the jurisdiction of the United Kingdom or a special relevant territory. (6) A relevant territory other than the United Kingdom is a special relevant territory if— (a) in the case of a relevant territory that is a country, the law of the country satisfies the conditions in subsection (7), or (b) in the case of a relevant territory that is an overseas territory of a country— (i) the law of the country makes (or the laws of the country and overseas territory make) such provision with respect to the overseas territory as is described in subsection (7) with respect to the country, and (ii) the relevant international agreement in pursuance of which that provision is made applies for the time being to the overseas territory. (7) The conditions referred to in subsection (6)(a) are— (a) that the law of the country makes provision, in pursuance of a relevant international agreement, for sums additional to those mentioned in section 18(1)(a) to be made available out of public funds; (b) that the law of the country makes provision, in pursuance of that relevant international agreement, for the maximum aggregate amount of compensation in respect of an occurrence or event to be equal to or more than that specified in section 18(1A). (8) A reference in this section to a national of the United Kingdom— (a) includes a reference to— (i) a public authority, (ii) a body incorporated under the law of any part of the United Kingdom, (iii) an unincorporated body established under the law of any part of the United Kingdom, and (iv) a trust the validity of which is governed by the law of a part of the United Kingdom; (b) as regards individuals, is a reference to— (i) a British citizen, a British overseas territory citizen, a British National (Overseas) or a British Overseas citizen; (ii) a British subject under the British Nationality Act 1981; or (iii) a British protected person within the meaning of that Act. (9) In this section— - “national”, in relation to a special relevant territory, includes— that special relevant territory and any part of it, a public or private body established in the special relevant territory or part of it, whether a body corporate or not, a partnership established in the special relevant territory or part of it, and a trust the validity of which is governed by the law of the special relevant territory; - “public authority” has the same meaning as in section 11A.

Section 16: phasing of increases in liability

22

After section 16A of the 1965 Act (inserted by article 21) insert—

(16B) (1) The reference in section 16(1)(f) to 1,200 million euros has effect in relation to liability in respect of any occurrence or event constituting a breach of a duty under section 7, 7B, 8 or 9 that happens in (or begins to happen in) a year mentioned below as if there were substituted a reference to the amount specified below for that year— (a) for the first year, 700 million euros; (b) for the second year, 800 million euros; (c) for the third year, 900 million euros; (d) for the fourth year, 1,000 million euros; (e) for the fifth year, 1,100 million euros. (2) For the purposes of this section— (a) the first year is the period of a year beginning with the appropriate day; (b) the second, third, fourth and fifth years are the periods of a year beginning with the first, second, third and fourth anniversaries, respectively, of the appropriate day. (3) “The appropriate day” means the day on which article 19 of the Nuclear Installations (Liability for Damage) Order 2016 comes fully into force.

Jurisdiction of courts in the United Kingdom

23

After section 16B of the 1965 Act (inserted by article 22) insert—

(16C) (1) This section has effect, subject to section 17(1), for determining which of the High Court of Justice, the Court of Session and the High Court of Justice in Northern Ireland has jurisdiction in the case of— (a) a claim by virtue of a duty imposed on a person by section 7, 7B, 8, 9 or 10, or (b) an application for the determination of a question relating to such a claim. (2) The High Court of Justice has jurisdiction if the claim relates to an occurrence or event constituting a breach of duty that takes place wholly within the part of the United Kingdom that consists of England and Wales. (3) The Court of Session has jurisdiction if the claim relates to an occurrence or event constituting a breach of duty that takes place wholly within Scotland. (4) The High Court of Justice in Northern Ireland has jurisdiction if the claim relates to an occurrence or event constituting a breach of duty that takes place wholly within Northern Ireland. (5) For the purposes of subsections (2) to (4) as they apply to an occurrence falling within section 7(1B)(b) or 10(1) or to an event creating a threat of a breach of duty consisting of such an occurrence— (a) an occurrence or event that continues while the matter involved is carried from one part of the United Kingdom to another, is to be treated as taking place in the part where it began; (b) an occurrence that is one of a succession of occurrences or an event that is one of a succession of events, all of which are attributable to a particular happening and take place during one course of carriage, is to be treated as taking place in whichever part of the United Kingdom is the part where the first occurrence in that succession of occurrences, or the first event in that succession of events, happened; (c) an occurrence or event that takes place within more than one part of the United Kingdom at the same time, and to which neither paragraph (a) nor paragraph (b) applies, is to be treated as taking place in whichever part of the United Kingdom is the part within which the matter involved was last wholly located before the occurrence or event took place. (6) If none of subsections (2) to (4) applies in the case of a claim or application, the court that has jurisdiction is— (a) if the claim relates to a person’s breach of duty as the licensee of a licensed site in the part of the United Kingdom consisting of England and Wales, the operator of a relevant disposal site in that part of the United Kingdom, or the occupier of any other relevant site in that part of the United Kingdom, the High Court of Justice; (b) if the claim relates to a person’s breach of duty as the licensee of a licensed site in Scotland, the operator of a relevant disposal site in Scotland, or the occupier of any other relevant site in Scotland, the Court of Session; (c) if the claim relates to a person’s breach of duty as the licensee of a licensed site in Northern Ireland, the operator of a relevant disposal site in Northern Ireland, or the occupier of any other relevant site in Northern Ireland, the High Court of Justice in Northern Ireland. (7) If, in consequence of a single occurrence or event that constitutes two or more breaches of the duties imposed by sections 7, 7B, 8, 9 and 10, more than one court would have jurisdiction under subsection (6), the court that is to have jurisdiction is the High Court of Justice. (8) The High Court of Justice has jurisdiction in the case of a claim or application which falls under a relevant international agreement to be determined by a court in the United Kingdom but to which none of subsections (2) to (6) applies. (9) In this section— (a) a reference to a part of the United Kingdom is a reference to— (i) England and Wales, (ii) Scotland, or (iii) Northern Ireland; (b) a reference to England and Wales includes a reference to— (i) areas within the territorial limits of the United Kingdom, other than Scotland or Northern Ireland or areas adjacent to Scotland or Northern Ireland, and (ii) the relevant maritime zone of the United Kingdom, other than the relevant maritime zone adjacent to Scotland or Northern Ireland, and the sea bed and subsoil within, and the airspace above, that part of that zone; (c) a reference to Scotland includes a reference to— (i) areas within the territorial limits of the United Kingdom that are adjacent to Scotland, and (ii) the relevant maritime zone of the United Kingdom adjacent to Scotland and the sea bed and subsoil within, and the airspace above, that part of that zone; (d) a reference to Northern Ireland includes a reference to— (i) areas within the territorial limits of the United Kingdom that are adjacent to Northern Ireland, and (ii) the relevant maritime zone of the United Kingdom adjacent to Northern Ireland and the sea bed and subsoil within, and the airspace above, that part of that zone. (10) For the purposes of this section— (a) an area is adjacent to Scotland if it lies within the boundaries determined under section 126(2) of the Scotland Act 1998; (b) an area is adjacent to Northern Ireland if it lies within the boundaries determined under section 98(8) of the Northern Ireland Act 1998.

Jurisdiction of courts in the United Kingdom: jurisdiction excluded

24

• (1) Section 17 of the 1965 Act (jurisdiction etc) is amended as follows.

• (2) In subsection (1)[^f00017] (jurisdiction of courts in the United Kingdom, or in a part of the United Kingdom, excluded by a certificate of the Secretary of State or the Scottish Ministers)—

• (a) omit the words “or any part thereof”;

• (b) for “the Minister” substitute “the appropriate authority”;

• (c) omit the words “or, as the case may be, of some other part of the United Kingdom”;

• (d) omit the words “or, as the case may be, that part thereof”.

• (3) Omit subsection (2) (certificate as evidence of the jurisdiction of a court in a particular part of the United Kingdom).

• (4) After subsection (6) insert—

(7) In this section “appropriate authority” means— (a) in relation to England and Wales and Northern Ireland, the Secretary of State; (b) in relation to Scotland, the Scottish Ministers.

Shared liability and foreign judgments

25

• (1) Section 17 of the 1965 Act is further amended as follows.

• (2) In subsection (3)[^f00018] (two or more persons in breach of a duty imposed under the Act or relevant foreign law: liability of the persons to be joint and several and claims to be satisfied by the persons to a certain extent before recourse to UK public funds is allowed)—

• (a) after “section 7,” insert “7B,”;

• (b) for “the same injury or damage” substitute “the same injury, damage or significant impairment of the environment or the same grave and imminent threat of injury, damage or impairment”;

• (c) for “relating to that injury or damage” substitute “relating to that matter”;

• (d) in paragraph (a), for “that injury or damage” substitute “that matter”;

• (e) in paragraph (b), for the words from “occurrence” to “paragraph” substitute “occurrence or event by virtue of which the person in question is liable for that matter have been satisfied to the extent mentioned in subsection (3A), no sums in excess of those required for the purposes of subsection (3A)(a)”;

• (f) in paragraph (b), in the words following sub-paragraph (ii), for “that injury or damage” substitute “that matter”.

• (3) After subsection (3) insert—

(3A) The claims mentioned in subsection (3)(b) are to be satisfied— (a) in the case of a licensee, the operator of a relevant disposal site, the Authority or the Crown, up to an aggregate amount that is equal to the amount applicable under section 16(1) to the person in question in the circumstances in question; (b) in the case of a relevant foreign operator, up to such aggregate amount as may be provided for by the relevant foreign law made for purposes corresponding to section 19(1). (3B) A person is not required under subsection (3A) to satisfy a claim for compensation to the extent that it is excluded by— (a) section 16(1ZA) or (1ZB), or (b) the relevant foreign law made for purposes corresponding to section 16(1ZA) or (1ZB) (as the case may be).

• (4) In subsection (4)[^f00019] (application of Part 1 of the Foreign Judgments (Reciprocal Enforcement) Act 1933 to court judgments certified as relevant foreign judgments)—

• (a) for “of any foreign country” substitute “of a relevant territory other than the United Kingdom”;

• (b) for “the Minister” substitute “the appropriate authority”;

• (5) In subsection (5)[^f00020] (defence to recovery of sums due under foreign judgments)—

• (a) after “a country” insert “or territory”;

• (b) in paragraph (a), for “injury or damage” substitute “injury, damage or impairment of the environment or a grave and imminent threat of injury, damage or impairment of the environment”;

• (c) in paragraph (b), after “the country” insert “or territory”.

Notice to Secretary of State of proceedings

26

After section 17 of the 1965 Act insert—

(17A) (1) If a person brings proceedings in any part of the United Kingdom in relation to which the condition in subsection (3) is satisfied, the person must notify the Secretary of State of the proceedings when they are brought. (2) If a person makes a claim in proceedings brought in any part of the United Kingdom as a result of which the condition in subsection (3) is satisfied in relation to the proceedings, the person must notify the Secretary of State of the proceedings when that claim is made. (3) The condition is that— (a) a breach of a duty imposed on a person by section 7, 7B, 8, 9 or 10 is alleged in the proceedings, (b) the effect of any of sections 7 to 21 and Schedule 1A is in issue in the proceedings, or (c) a matter relating to a relevant international agreement is in issue in the proceedings. (4) When a person notifies the Secretary of State of proceedings under subsection (1), the person must at the same time send the Secretary of State— (a) a copy of the document that initiates the proceedings, and (b) if the claim being made by the person is not set out in the document that initiates the proceedings, a copy of the document that sets out the claim for the purposes of the proceedings. (5) When a person notifies the Secretary of State of proceedings under subsection (2), the person must at the same time send the Secretary of State a copy of the document that sets out the claim in question for the purposes of the proceedings. (6) A person is to be treated as notifying the Secretary of State of proceedings if the person seeks to make the Secretary of State a party to the proceedings.

Right of Secretary of State or foreign government to intervene

27

• (1) After section 17A of the 1965 Act (inserted by article 26) insert—

(17B) (1) If it appears to the Secretary of State that the condition in subsection (2) is satisfied as regards proceedings brought in any part of the United Kingdom, the Secretary of State is entitled, on giving notice to the court, to be joined as a party to those proceedings. (2) The condition is that— (a) a breach of a duty imposed on a person by section 7, 7B, 8, 9 or 10 is alleged in the proceedings, (b) the effect of any of sections 7 to 21 and Schedule 1A is in issue in the proceedings, or (c) a matter relating to a relevant international agreement is in issue in the proceedings. (3) The Secretary of State may give notice under subsection (1) at any time during the proceedings.

• (2) After section 17B of the 1965 Act (inserted by paragraph (1)) insert—