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Coal industry Act 1994 (c. 21)(The document as of February, 2008) Page 11 Pages: P.1 | P.2 | P.3 | P.4 | P.5 | P.6 | P.7 | P.8 | P.9 | P.10 | P.11 | P.12 | P.13 | P.14 (10) Subsection (9) of that section shall cease to have effect. Annual compensation15 (1) In subsection (1) of section 17 (general provisions as to annual compensation)-- (a) the words "by the Corporation" shall be omitted; and (b) in paragraph (b), after "falls" there shall be inserted "wholly or partly". (2) After that subsection there shall be inserted the following subsection-- " (1A) Subject (where different persons have been entitled to the rights for different parts of the year) to any apportionment under section 35(3) of this Act, the liability to pay compensation under this section shall fall on the persons who, for the whole or any part of the year in question, have been entitled to the rights conferred by the order. " (3) In subsection (2) of that section, for "in the Corporation" there shall be substituted "in the Coal Authority or the person entitled to rights conferred by the order". (4) In subsection (3) of that section-- (a) at the beginning there shall be inserted the words "Subject to subsection (3A) of this section,"; and (b) the words "by the Corporation" shall be omitted. (5) After that subsection there shall be inserted the following subsections-- " (3A) Where-- (a) any compensation is payable for any year by virtue of this section in respect of any holding, and (b) the amount of that compensation falls to be calculated in accordance with section 18 of this Act by reference to the market value of rights which, if the compulsory rights order were not in force, could not be conferred for that year or any part of it except by or with the consent of one or more persons who are included in the persons directly concerned but do not fall within subsection (3) of this section, the entitlement to that compensation shall be apportioned, according to the extent to which those rights could not be conferred for that year or part of a year without their participation or consent, between those persons and any person falling within that subsection. (3B) Subject to subsection (3C) of this section, the persons entitled under subsection (3A) of this section to a share of any compensation shall include persons whose participation in or consent to the conferring of any right would be required if the right were conferred at some time after the beginning of the year or part of a year in question; and any apportionment under subsection (3A) of this section shall take account of the length of the period for which any person is, during that year or part of a year, a person without whose participation or consent any right could not be conferred. (3C) No person shall be entitled under subsection (3A) of this section to any share of any compensation in respect of any such easement or right as might give rise to an entitlement to compensation under section 31 of this Act. " (6) Subsection (4) of that section shall cease to have effect. (7) Sub-paragraphs (5) and (6) above shall not apply in relation to any compulsory rights order confirmed before the restructuring date. Calculation of compensation16 In relation to any compulsory rights order confirmed on or after the restructuring date the following section shall be substituted for section 18, that is to say-- " 18 Calculation of compensation under section 17(1) The compensation payable for any year in respect of a holding to which section 17 of this Act applies shall be a sum equal to the annual borrowing cost for that year of the market value of the rights conferred by the compulsory rights order in relation to the holding. (2) For the purposes of this section the market value of any rights conferred by a compulsory rights order shall be equal to the amount which, as at the date of entry, would (apart from the order) represent the fair market price, as between willing and independent parties, for the grant of those rights by a person entitled to grant them and for the period for which the order is to have effect. (3) In calculating for the purposes of this section the fair market price for the grant of any rights, due allowance shall be made for any entitlement to compensation which may arise, otherwise than by virtue of section 17, under any of the provisions of this Act. (4) For the purposes of this section the annual borrowing cost for any year of any amount ("the market price") is the aggregate sum which would fall to be paid in that year by way of payments of interest and re-payments of capital if the market price had been borrowed on the date of entry on terms which-- (a) required interest to be paid and capital to be repaid by way of the relevant number of equal annual instalments; and (b) provided for interest on outstanding capital to become due immediately before the time for the payment of each instalment, at an annual rate equal, as at the entry date, to the rate prescribed under section 35(8) of this Act; and in this subsection "the relevant number" means the number of years for which, when it was confirmed, the compulsory rights order was to have effect. (5) Nothing in section 17 of this Act or this section shall confer any entitlement to compensation in respect of the annual borrowing cost of-- (a) any amount representing the value of any person's interest in coal, or (b) any amount representing the value of any opportunity arising by virtue of an interest or right in or in relation to any land to obtain or make use of any rights to win, work or get any coal. (6) Where the period for which a compulsory rights order is to have effect is extended under this Act, section 17 of this Act and this section shall have effect in relation to the additional period as if the rights conferred for that period had been conferred by a new compulsory rights order. " 17 Sections 19 and 20 (additional annual compensation and special compensation for cost of removal) shall not have effect in relation to any compulsory rights order confirmed on or after the restructuring date. Terminal compensation18 In section 21(1) (terminal compensation), for "by the Corporation in respect of that holding" there shall be substituted "in respect of that holding by the person who immediately before the end of the period of occupation is the person entitled to the rights conferred by the order." Compensation in respect of agricultural land19 (1) In section 23A (compensation with a view to furthering the resumption of agriculture)-- (a) for the words "sections 18 and 19", wherever they occur, there shall be substituted "section 17"; and (b) in subsection (4), for "by the Corporation" there shall be substituted "by the person who immediately before the end of the period of occupation is the person entitled to the rights conferred by the order". (2) Sub-paragraph (1)(a) above does not apply in relation to any compulsory rights order confirmed before the restructuring date. Compensation for short term improvements etc.20 (1) In subsection (1) of section 26 (compensation in respect of short term improvements and other matters)-- (a) for "the Corporation occupy" there shall be substituted "any person occupies"; and (b) for "by the Corporation" there shall be substituted "by that person". (2) After that subsection there shall be inserted the following subsection-- " (1A) Compensation shall not be payable by virtue of this section where a person's occupation of any land, in exercise of rights conferred by a compulsory rights order, is confined to replacing in occupation a person previously entitled to exercise the rights conferred by that order. " (3) In subsection (3) of that section, the words "by the Corporation" shall be omitted. Compensation in respect of forced sales21 (1) In subsection (1) of section 27 (compensation for forced sales), for "the Corporation" there shall be substituted "the person on whose application the compulsory rights order was made". (2) After subsection (2) of that section there shall be inserted the following subsection-- " (2A) Where, in the case of any sale in respect of which compensation is payable under this section, a person other than the person who applied for the order is entitled, on the effective date of the sale, to the rights conferred by the compulsory rights order, that compensation shall be payable by the person entitled to those rights, instead of by the person who applied for the order. " (3) In subsection (3) of that section-- (a) for the words "the Corporation", in the first place where they occur, there shall be substituted "the person potentially liable"; and (b) for the words "the Corporation", in the second place where they occur, there shall be substituted "the person to whom the notice was given, or any person designated for the purpose by him,". (4) After subsection (4) of that section there shall be inserted the following subsection-- " (5) In this section--
Compensation: definition of holding22 (1) In subsection (1) of section 29 (definition of holding for certain purposes of compensation), for "the Corporation" there shall be substituted "the Coal Authority or any licensed operator (within the meaning of the Coal Industry Act 1994)". (2) In subsection (2) of that section, for "(3) and (4) of section seventeen of this Act, the provisions of sections eighteen to twenty of this Act" there shall be substituted "(1A) and (3) to (3B) of section 17 of this Act and the provisions of section 18 of this Act". Compensation in respect of easements and other rights23 (1) In subsection (2) of section 31 (annual compensation in respect of easements and other rights)-- (a) after "falls" there shall be inserted "wholly or partly"; and (b) the words "from the Corporation" shall be omitted. (2) After that subsection there shall be inserted the following subsection-- " (2A) Subject (where different persons have been entitled to the rights for different parts of the year) to any apportionment under section 35(3) of this Act, the liability to pay compensation under subsection (2) of this section shall fall on the persons who, for the whole or any part of the year in question, have been entitled to the rights conferred by the order. " (3) In paragraphs (a) and (b) of subsection (3) of that section (terminal compensation in respect of easements and other rights), for the words "the Corporation", where they occur in each paragraph, there shall be substituted "the person who immediately before the end of the period of occupation is the person entitled to the rights conferred by the order". Compensation in respect of disposable minerals24 (1) After section 31, there shall be inserted the following section-- " 31A Compensation in respect of disposable minerals(1) The provisions of this section shall have effect where-- (a) any person ("the operator") exercises any right of his by virtue of a compulsory rights order and section 10(1) to this Act to get any minerals other than coal; and (b) the land where the right is exercised was not comprised in that order in the circumstances specified in section 33(1) of this Act. (2) The person who, apart from the compulsory rights order and section 10(1) of this Act, would have been entitled to the minerals shall be entitled (subject to the following provisions of this section) to compensation from the operator of an amount equal to 12.5 per cent. of the market value of the minerals at the time when the right is exercised. (3) Where, in the case of any minerals, it would be reasonable for steps for making them saleable or for enhancing their value to be taken on the land between-- (a) the time when those minerals are got, and (b) any sale of the minerals by the operator from the land, it shall be assumed, for the purpose of determining the market value of those minerals as at the time mentioned in subsection (2) above, that the minerals were in the same condition at the time so mentioned as they would have been had those steps already been taken. (4) Any question for the purposes of subsection (3) above as to the extent to which it would be reasonable for any steps to be taken in relation to any minerals shall be determined as at the time mentioned in paragraph (a) of that subsection and on the assumption that it is not reasonable for steps to be taken where the total cost to the operator of taking those steps is equal to or more than the difference between-- (a) what would be the market value of the minerals for the purposes of subsection (2) above if it were reasonable for those steps to be taken; and (b) what would be their market value for those purposes if it were not; and for this purpose, where the minerals would not be saleable without the taking of those steps, the market value referred to in paragraph (b) above shall be taken to be nil. (5) Where more than one person is entitled to compensation under this section, the amount of compensation mentioned in subsection (2) above shall be apportioned between them according to the values of the interests or rights in respect of which each of them would have been entitled to, or to a share of, the minerals. (6) As soon as reasonably practicable, after the end of every period of twelve months during which any person has exercised such a right as is mentioned in subsection (1) above, that person shall give written notice under this subsection to every person appearing to him to be a person entitled to compensation under this section in respect of any exercise by him during that period of that right. (7) A notice under subsection (6) above shall-- (a) describe the minerals in respect of which the entitlement to compensation of the person given the notice arises; and (b) state the amount appearing to the person giving the notice to be the amount which for the purposes of subsection (2) above is to be taken to be the market value of those minerals as at the time when the right in question was exercised in relation to those minerals. " (2) This paragraph shall not apply where the right in question is exercisable by virtue of a compulsory rights order confirmed before the restructuring date. Compensation for depreciation of land in same ownership25 (1) In subsection (2) of section 32 (annual compensation in respect of depreciation of land in the same ownership)-- (a) after "falling" there shall be inserted "wholly or partly"; and (b) the words "from the Corporation" shall be omitted. (2) After that subsection there shall be inserted the following subsections-- " (2A) Subject (where different persons have been entitled to the rights for different parts of the year) to any apportionment under section 35(3) of this Act, the liability to pay compensation under subsection (2) of this section shall fall on the persons who, for the whole or any part of the year in question, have been entitled to the rights conferred by the order. (2B) For the purposes of subsection (2) of this section the annual value of any land for any year shall be taken to be an amount equal to the annual rent at which, immediately before the beginning of that year, that land, in the appropriate circumstances, might reasonably have been expected to be let from year to year under a contract of tenancy whereby the tenant undertook-- (a) to pay all usual tenant's rates and taxes and to bear the cost of the repairs and insurance and the other expenses, if any, necessary to maintain the land in a state to command that rent, and (b) not to carry out any operations on the land, or to make any change in the use thereof, for which permission would be required under Part III of the Act of 1990 or Part III of the [1972 c. 52.] Town and Country Planning (Scotland) Act 1972, except any operations for which such permission has been granted and is in force immediately before the beginning of that year. " (3) In subsection (3) of that section, for the words before paragraph (a) there shall be substituted-- " (3) For the purposes of subsection (2B) of this section, the appropriate circumstances-- " . (4) In subsection (4) of that section (terminal compensation in respect of depreciation of land in same ownership), for "the Corporation" there shall be substituted "the person who immediately before the end of the period of occupation is the person entitled to the rights conferred by the order, and that compensation shall be". Time when compensation accrues26 (1) In subsection (1) of section 35 (introduction to provisions as to time when compensation accrues), for "the Corporation" there shall be substituted "any person". (2) In subsection (2) of that section-- (a) in paragraph (a), for "the Corporation shall" there shall be substituted "every person potentially liable for the compensation shall, on account of any compensation that may become payable by him at the end of the year,"; (b) in paragraph (b), for "the Corporation shall not be required to make payments" there shall be substituted "the requirement to make payments shall not arise"; (c) in paragraph (c), for "to any person for any year" there shall be substituted "for any year by any person to another"; and (d) in paragraph (d)-- (i) for "to a person for any year" there shall be substituted "for any year by any person to another"; (ii) for "to him for that year, the Corporation" there shall be substituted "for that year by that person to that other person, the person who paid it"; and (iii) for "to that person" there shall be substituted "by him to that other person". (3) After subsection (6) of that section there shall be inserted the following subsection-- " (6A) Any compensation payable under section 31A of this Act shall accrue due at the end of the year in which the right in question is exercised. " (4) In subsection (7) of that section, the words "by the Corporation" shall be omitted, and for "subsections (4) to (6)" there shall be substituted "subsections (4) to (6A)". (5) In subsection (9) of that section, at the end there shall be inserted the words "; and references in this section to a person potentially liable to compensation, in relation to any time during a year at the end of which compensation may become payable under this Act, are references to the person on whom the liability to pay the compensation will fall at the end of the year if the person entitled to the rights conferred by the compulsory rights order in question does not change before the end of the year." Records of condition of land27 (1) In subsection (1) of section 36 (records of condition of land to which compulsory rights order relates), for "the Corporation" there shall be substituted "a person entitled to the rights conferred by a compulsory rights order". (2) In subsection (2) of that section (record of initial condition of land)-- (a) for the words "the Corporation have" there shall be substituted "any person has"; and (b) for the words "the Corporation shall" there shall be substituted "that person shall". (3) In subsection (3) of that section (record of condition of land at end of period of occupation), for "the Corporation shall, at the end of the period of occupation" there shall be substituted "the person entitled immediately before the end of the period of occupation to the rights conferred by the order shall, at the end of that period". (4) In subsection (5) of that section (service of records), for "the Corporation have caused a record to be made under this section they" there shall be substituted "any person has caused a record to be made under this section, he". (5) In subsections (6), (7) and (8) of that section, for the words "the Corporation", in each place where they occur, there shall be substituted "the person who served the record". (6) In subsection (9) of that section, for "the Corporation" there shall be substituted "persons required to make records under this section". (7) After subsection (9) there shall be inserted the following subsection-- " (9A) If any person fails to cause any record to be made or served in accordance with any requirement imposed on him by this section-- (a) his obligation to comply with that requirement shall be enforceable by the Coal Authority as if it were a duty owed by that person to that Authority; and (b) without prejudice to its rights by virtue of paragraph (a) above, that Authority may itself cause the record to be made and served in accordance with that requirement and may recover any expenses reasonably incurred in doing so from the person in contravention of that requirement. " Protection of land from compulsory purchase28 In section 38 (exclusion from compulsory purchase order of land subject to opencast planning permission)-- (a) in paragraph (a), for "the Corporation" there shall be substituted "a relevant person"; (b) in paragraph (b), for "the Corporation give" there shall be substituted "that relevant person gives"; and (c) at the end there shall be inserted-- " In this section "relevant person" means any licensed operator within the meaning of the Coal Industry Act 1994 or any person who is certified by the Coal Authority as a person whose application to that Authority for a licence under Part II of that Act is pending. " Entry on land29 (1) In subsection (1) of section 39 (designation of land for the purposes of certain rights of entry), after "may" there shall be inserted "on the application of the Coal Authority". (2) In subsection (2) of that section-- (a) for "the Corporation" there shall be substituted "the Coal Authority"; and (b) in paragraph (c), for "the Corporation think fit" there shall be substituted "the Coal Authority may think fit to authorise him to dispose of ". (3) In subsections (3) and (7) of that section, for the words "the Corporation", wherever they occur, there shall be substituted "the Coal Authority". (4) The references in subsections (3)(d) and (5) of that section to section 15A(4)(c) shall be construed as references to section 15A(5)(c), and shall be deemed always to have fallen to be so construed. (5) After subsection (7) of that section there shall be inserted the following subsections-- " (7A) The persons who may be authorised by the Coal Authority to exercise the powers conferred by this section shall include any person who proposes to exercise those powers for the purposes and on behalf of any person who is or has applied to become a licensed operator within the meaning of the Coal Industry Act 1994; but where-- (a) any person does exercise powers under this section for the purposes of such a person, and (b) his written authority specifies that person and states that he is authorised to exercise those powers for the purposes and on behalf of that person, subsection (7) of this section shall have effect as if the references to the Coal Authority were references to the specified person. (7B) Any authorisation by the Coal Authority of any person for the purposes of the exercise of the powers conferred by this section, and any conditions of such an authorisation, may be revoked or varied by that Authority at any time. " Claims for compensation30 (1) In subsection (1) of section 40 (claims for compensation)-- (a) for the words "the Corporation", in the first place where they occur, there shall be substituted "any person"; and (b) for the words "the Corporation", in the second place where they occur, there shall be substituted "that person". (2) In subsections (2)(c) and (3) of that section, for the words "the Corporation", in each place where they occur, there shall be substituted "any person". Compensation in respect of property held for religious purposes31 (1) In subsection (1) of section 42 (compensation payable in respect of property held for religious purposes), for "the Corporation" there shall be substituted "any person ("the person liable")". (2) In subsection (4) of that section-- (a) for "the Corporation are" there shall be substituted "the person liable is"; and (b) for the words "the Corporation", in the second and third places where they occur, there shall be substituted "the person liable". Provision in respect of mortgaged land32 In section 43 (compensation provisions applying to mortgaged land), the words "by the Corporation", wherever they occur, shall be omitted. Crown land33 In section 44 (Crown land)-- (a) in subsection (1), for "the Corporation" there shall be substituted "the Coal Authority"; and (b) in subsection (3), the words "by the Corporation" shall be omitted. Telecommunication apparatus34 In section 45(2) (application of paragraph 23 of the telecommunications code), for "to the Corporation for the purposes of any permitted activities" there shall be substituted "for the purposes of any permitted activities to the person with the benefit of that permission". Provisions as to regulations, orders etc.35 After section 49(4) (general power to revoke and vary orders and directions) there shall be inserted the following subsections-- " (4A) A compulsory rights order may, by notice to the person entitled to the rights conferred by the order, be revoked at any time-- (a) by the Coal Authority, if it is satisfied that that person has consented to the revocation; or (b) by the Secretary of State, if he is satisfied that that person has contravened, or is contravening, any of the provisions of the order or any requirement otherwise imposed on that person by or under this Act. (4B) Where in the case of any compulsory rights order made or confirmed at any time on or after the restructuring date (within the meaning of the Coal Industry Act 1994), it appears to the Coal Authority-- (a) that the order would not have been made or confirmed, or would not have extended to certain interests or rights, if a person to whom a relevant offer was made had accepted it, (b) that that person has, since the making of the order, made a written offer to the person entitled to the rights conferred by it ("the operator") to enter into an agreement on the terms of the relevant offer, (c) that the written offer was made either at a time before the specification of a date in relation to the order as the date of entry or at a time more than twenty-eight days before any date so specified, (d) that the person making the offer will enter into an agreement with the operator on those terms if the order is revoked or varied under this subsection, and (e) that the circumstances (apart from the expiration or rejection of the relevant offer and the making and confirmation of the order) are not such as to make it unreasonable for the operator to be required to treat the terms of the relevant offer as still available for acceptance, that Authority may, by notice to the operator and subject to such conditions as it thinks fit, either revoke the order or vary it by limiting it so that it does not extend to the interests and rights of the person who is offering to be bound by an agreement on the terms he previously failed to accept. (4C) In subsection (4B) above "relevant offer", in relation to a compulsory rights order, means any offer which-- (a) was made by the applicant for the order to a person who is one of the persons directly concerned; and (b) was an offer as to the terms on which the applicant was willing (instead of requiring rights as against that person to be conferred by a compulsory rights order) to enter into an agreement with that person. " Interpretation36 (1) In subsection (1) of section 51 (interpretation)-- (a) in the definition of "opencast planning permission", for "the Corporation to work coal by opencast operations or to carry out" there shall be substituted "the working of coal by opencast operations or the carrying out of"; and (b) after the definition of "statutory undertakers" there shall be inserted the following definition--
(2) After that subsection there shall be inserted the following subsection-- " (1A) References in this Act, in relation to any opencast planning permission, to the person with the benefit of that permission shall be construed as a reference to any person who-- (a) is able, on account of his having all such interests or rights as (apart from that permission) he requires for the purpose, to carry out any of the permitted activities; or (b) would be so able if the rights which he had and was entitled to exercise included any such right as he has applied for, or is entitled to apply for, under this Act or any right which has been conferred on him under this Act but has not yet become exercisable. " Application to Scotland37 In section 52(3) (construction of references to water authorities in relation to Scotland) after "shall" there shall be inserted ", except in so far as the context otherwise requires,". Procedure for compulsory rights orders in Scotland38 (1) In Part I of Schedule 2 (making, confirmation, validity and date of operation of Scottish orders), in paragraph 1(1)-- (a) after "Schedule to the" there shall be inserted, "Scottish"; (b) in paragraph (b), for "Corporation" there shall be substituted "Coal Authority"; and (c) in paragraph (c), the words "on the Corporation" shall be omitted. (2) In paragraph 2 of that Schedule, after "in relation to the" there shall be inserted "Scottish". (3) In paragraph 3 of that Schedule-- (a) in sub-paragraph (1)-- (i) for the words from the beginning to "provisions" there shall be substituted-- " (1) Paragraph 3 of that Schedule shall apply with the substitution, for sub-paragraph (b) of that paragraph, of the following paragraphs-- " ; and (ii) in the substituted provision (c), for "head (b) of this sub-paragraph" there shall be substituted "sub-paragraph (b) of this paragraph"; and (b) in sub-paragraph (2), for "Corporation" there shall be substituted "Coal Authority". (4) In paragraph 8 of that Schedule, for "Corporation" there shall be substituted "Coal Authority". (5) In paragraph 9 of that Schedule, after "to the" there shall be inserted "Scottish". (6) Paragraph 12 of that Schedule shall cease to have effect. Other provisions with respect to the procedure for compulsory rights orders39 (1) In paragraph 13 of Part II of Schedule 2 (procedure relating to orders), in sub-paragraph (2), for "The Corporation" there shall be substituted "The person on whose application a compulsory rights order has been made". (2) In sub-paragraph (3) of that paragraph-- (a) for the words "The Corporation", at the beginning, there shall be substituted "That person"; (b) after "on" there shall be inserted "the Coal Authority and on"; and (c) for "to the Corporation" there shall be substituted "to the person serving the notice". (3) In sub-paragraph (4) of that paragraph, for "The Corporation" there shall be substituted "The person on whose application a compulsory rights order has been made". Compensation by way of payment for costs of works40 (1) In Schedule 3 (terminal compensation by way of payment for works)-- (a) in paragraph 1, after the definition of "compensation" there shall be inserted the following definition-- " "final operator" means the person who immediately before the end of the period of occupation is the person entitled to the rights conferred by the order; " and (b) for the words "the Corporation", wherever they occur in that Schedule, there shall be substituted "the final operator". (2) In paragraph 3 of that Schedule-- (a) in sub-paragraph (a), for "object" there shall be substituted "objects"; and (b) in sub-paragraph (b), for "they object" there shall be substituted "the final operator objects". (3) In paragraph 5 of that Schedule-- (a) in sub-paragraph (4)(a)(ii), for "have not" and "they have" there shall be substituted, respectively, "has not" and "the final operator has"; and (b) in sub-paragraph (5), for "serve" there shall be substituted "serves". (4) In paragraph 8 of that Schedule-- Pages: P.1 | P.2 | P.3 | P.4 | P.5 | P.6 | P.7 | P.8 | P.9 | P.10 | P.11 | P.12 | P.13 | P.14 -- Back --
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