Coal industry Act 1994 (c. 21)

(The document as of February, 2008)

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(12) The power by regulations under this paragraph to modify an existing scheme shall not authorise the making of any modification which, in relation to the person entitled to it, adversely affects so much of any pension right as gives rise to any of the principal pension obligations under that scheme.

(13) Before making any regulations under this paragraph in relation to an existing scheme the Secretary of State shall consult with the Corporation and the trustees for the time being of that scheme.

(14) The power to make regulations under this paragraph shall not be exercisable at any time after the end of the period of two years beginning with the restructuring date; but this sub-paragraph shall be without prejudice to any regulations made before the end of that period or to anything done (whether before or after the end of that period) under any regulations so made.

(15) In this paragraph "relevant surplus", in relation to an existing scheme, means any surplus determined as at any time on or after 31st March 1992 of the assets of the scheme over the amounts required, as at that time, for meeting the obligations which (apart from the surplus) either have arisen or may arise as pension obligations under the scheme.

(16) In this paragraph references to the principal pension obligations under an existing scheme are references to the following, that is to say--

(a) so much of any pension obligation arising under the scheme as derives neither from modifications of the scheme made on or after the restructuring date nor from any relevant surplus;

(b) so much of any pension obligation arising under the scheme as represents the effect on any pension right giving rise to a pension obligation falling within paragraph (a) above of any decision before 1st September 1994 to appropriate any of a relevant surplus determined as at a time before 31st March 1994 to the payment of increases in any pensions payable in pursuance of that right; and

(c) so much of any pension obligation arising under the scheme as represents the effect on any pension right giving rise to a pension obligation falling within paragraph (a) or (b) above of any provisions of the scheme, as modified on or after the restructuring date, which require that right to be varied from time to time by reference to fluctuations in any level of prices in Great Britain.

Replacement schemes for employees transferred to the private sector etc.

3 (1) The Secretary of State may by regulations make such provision as he thinks fit for securing that arrangements are made and implemented in relation to any existing scheme for enabling participants in that scheme to become participants in another pension scheme ("a new scheme") which--

(a) is established, under and in accordance with the regulations, by the Corporation or such other person as may be prescribed; and

(b) satisfies the statutory requirements by reference to that existing scheme.

(2) Where at any time the employment of any participant in any existing scheme in relation to which a new scheme has been established in pursuance of regulations under this Schedule is affected--

(a) by the coming into force of any provisions of a restructuring scheme in accordance with which a person other than the Authority becomes his employer in place of the Corporation or one of its wholly-owned subsidiaries, or

(b) by a company's having ceased at any time on or after the restructuring date to be a subsidiary of the Corporation,

the duty specified in sub-paragraph (3) below shall arise and be owed to the participant and to every person who at that time is a participant in that existing scheme in respect of his continuing employment with a person other than the Corporation or a subsidiary of the Corporation.

(3) That duty is a duty to secure that the person to whom the duty is owed is afforded, and is entitled to exercise, an option of becoming a participant in the new scheme in respect of the employment to which he is transferred or, as the case may be, in respect of his continuation, after the time when the duty arises, in the employment in respect of which he is at that time participating in the existing scheme.

(4) The duty owed to any person under sub-paragraphs (2) and (3) above shall be owed--

(a) in a case where it is owed to a person who is transferred in accordance with a restructuring scheme from the employment of one person to the employment of another, by the person to whose employment he is transferred; and

(b) in any other case, by the person who, in relation to the employment to which the duty relates, is the employer of the person to whom the duty is owed.

(5) For the purposes of this paragraph, where a company has ceased to be a subsidiary of the Corporation, the persons whose employment shall be treated as affected by the company's having ceased to be such a subsidiary shall be (and shall be confined to) the persons employed by that company at whichever is the later of the following times, that is to say--

(a) the time when the company ceased to be a subsidiary of the Corporation; and

(b) the time when the company would so cease if any shares in the company which have at any time been transferred (whether in accordance with a restructuring scheme or otherwise) to any of the following persons, that is to say--

(i) the Treasury,

(ii) the Secretary of State,

(iii) a company wholly owned by the Crown, or

(iv) any nominee of the Treasury, the Secretary of State or a company wholly owned by the Crown,

remained vested in the Corporation for so long after their transfer as they remain vested in any of the persons mentioned in sub-paragraphs (i) to (iv) above;

and a person whose employment is affected by a company's having ceased to be a subsidiary of the Corporation shall be treated for the purposes of this paragraph as so affected only at whichever of the times mentioned in paragraphs (a) and (b) above is applicable in his case.

(6) For the purposes of this paragraph a new scheme satisfies the statutory requirements by reference to an existing scheme ("the previous scheme") if it contains all such provision as may be prescribed for the purposes specified in sub-paragraph (7) below, together with such other provision as may be prescribed.

(7) The purposes mentioned in sub-paragraph (6) above are the purposes of securing--

(a) that no person is able to participate in the new scheme as an employee unless he is a person falling within sub-paragraph (8) below;

(b) that the new scheme is and continues to be approved for the purposes of the relevant enactments;

(c) that the new scheme provides benefits to and in respect of participants in the new scheme which are no less advantageous than the benefits falling to be provided under the previous scheme as at the time immediately before the restructuring date; and

(d) that the pension rights under the previous scheme of any person who becomes a participant in the new scheme in respect of any employment are capable, at that person's option, of being transferred so as to become rights under the new scheme.

(8) A person falls within this sub-paragraph if he is--

(a) one of the persons who by virtue of sub-paragraph (2) above is to be afforded the option of becoming a participant in the new scheme;

(b) a person the duties of whose employment with the same employer have changed so that he has ceased to be eligible to participate in a scheme in relation to which he has been entitled to protection under paragraph 4 below but has become a person who satisfies, by reference to his new duties, a condition of eligibility for participation in the new scheme; or

(c) a person with pension rights as a result of having been a participant in an existing scheme who, at any time on or after the restructuring date, enters the employment of a person any of whose employees are already, in respect of their employment with that person, participants in the new scheme.

(9) Regulations under this paragraph prescribing the provision that must be contained in a scheme for it to satisfy the statutory requirements may provide for that provision to be determined by reference to such directions and certificates of the Secretary of State as may be given or issued to such persons, in such cases and in such manner as may be prescribed.

Protection for rights under private sector schemes

4 (1) This paragraph applies to--

(a) any scheme established in pursuance of regulations under paragraph 3(1) above; and

(b) any prescribed scheme the establishment of which appears to the Secretary of State to be, or to have been required, for the purposes of any protection to which any person is entitled by virtue of this paragraph.

(2) The Secretary of State may by regulations impose such restrictions and obligations as appear to him to be appropriate for the purpose of securing--

(a) that no person entitled to protection in relation to a scheme to which this paragraph applies is placed in any worse position by reason of--

(i) any such amendment of the scheme as is made otherwise than in prescribed circumstances and results in benefits under the scheme being reduced, or contributions by employees being increased; or

(ii) any winding-up, in whole or in part, of the scheme;

(b) that no person entitled to protection in relation to a scheme to which this paragraph applies is prevented from continuing to participate in or acquire pension rights under the scheme by reason of any change of employer which does not affect his continuity of employment; and

(c) that no person entitled to protection in relation to a scheme to which this paragraph applies is prevented (in a case not falling within paragraph (b) above) from continuing to participate in or acquire pension rights under the scheme by reason of his having entered the employment of an employer who--

(i) opts to allow that person to continue, in respect of his employment with that employer, as a participant in that scheme; and

(ii) is able to exercise that option without the scheme ceasing to be approved for the purposes of the relevant enactments.

(3) Regulations under this paragraph may make provision for securing that a person entitled to protection in relation to a scheme to which this paragraph applies who--

(a) ceases, by reason of any change in the duties of his employment with the same employer, to be eligible to participate in that scheme, but

(b) by reason of the change becomes a person who satisfies, by reference to his new duties, a condition of eligibility for participation in another such scheme,

is afforded the equivalent protection with respect to his participation in the other scheme as was previously secured, by virtue of this paragraph, with respect to his continuing participation in the scheme for which he has ceased to be eligible.

(4) Regulations under this paragraph may make provision for securing that individuals with pension rights under a scheme to which this paragraph applies are allowed to become participants in another such scheme or to renew their participation in the same scheme where, in prescribed cases, they enter the employment of a person any of whose employees are already, in respect of their employment with that person, participants in the other scheme or, as the case may be, in the scheme under which those rights subsist.

(5) Regulations under this paragraph may--

(a) impose duties (whether as to the provision or amendment of any scheme to which this paragraph applies, the purchase of annuities, the making of payments or otherwise) on--

(i) any person who has been or is for the time being the employer of a person entitled to protection in relation to any such scheme; and

(ii) any persons by whom such an employer is or has been wholly owned;

and

(b) provide for the duties imposed by the regulations on any person to be owed to such persons as may be prescribed, including persons other than the persons who are or have been employed by that person or, as the case may be, by a company wholly owned by him.

(6) The following persons shall be entitled to protection in relation to any scheme to which this paragraph applies, except in so far as they cease to be so entitled under any of sub-paragraphs (7) to (9) below, that is to say--

(a) every person who--

(i) has exercised an option conferred by virtue of paragraph 3(2) above to become a participant in the scheme in respect of his employment; or

(ii) is or has been a participant in the scheme in pursuance of any regulations made under this paragraph for the purpose of preserving the entitlement of that person to protection in relation to any other scheme to which this paragraph applies;

and

(b) every person who has pension rights under the scheme in consequence of the death of a person falling within paragraph (a) above;

but a person shall not be entitled to protection by virtue of paragraph (b) above except as respects the pension rights in respect of which he falls within that paragraph.

(7) A person entitled to protection in relation to a scheme to which this paragraph applies may elect, in such manner as may be prescribed, that he is to cease to be entitled to that protection.

(8) Subject to sub-paragraph (9) below, if--

(a) any person entitled by virtue of sub-paragraph (6)(a) above to protection in relation to any scheme to which this paragraph applies ceases to be in continuous employment or voluntarily withdraws from that scheme, and

(b) the circumstances of that cesser or withdrawal are not such as may be prescribed,

that person shall cease to be entitled to that protection except as respects pension rights which have accrued to him before the time when he so ceases or withdraws.

(9) If any person entitled by virtue of sub-paragraph (6)(a) above to protection in relation to any scheme to which this paragraph applies continues to be a participant in that scheme after such a change of employment as brings the case within sub-paragraph (2)(c) above, that person shall cease to be entitled to that protection except as respects pension rights which have accrued to him before that change.

(10) The reference in sub-paragraph (2) above to being placed in any worse position shall be construed, in relation to a person entitled to protection by virtue of sub-paragraph (6)(a) above who ceases, after the exercise of the option made available to him in pursuance of paragraph 3(2) above, to participate in or acquire pension rights under any scheme, as a reference to being placed in a position which is worse than his position immediately before he so ceases.

(11) So much of Schedule 13 to the [1978 c. 44.] Employment Protection (Consolidation) Act 1978 as has effect for the purpose of ascertaining whether any employment is continuous, except paragraph 18 of that Schedule, shall apply for the purposes of this paragraph as if this paragraph were contained in that Act.

(12) Regulations under this paragraph may provide that no account shall be taken for the purposes of this paragraph of any person's ceasing to be in continuous employment for such periods and in such circumstances as may be prescribed.

(13) For the purposes of this paragraph a company is wholly owned by any person if its members do not include any person other than--

(a) that person himself;

(b) companies wholly owned by that person; and

General provisions

5 (1) Every power of the Secretary of State to make regulations under this Schedule shall be exercisable by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament.

(2) Any power of the Secretary of State to make provision by regulations under this Schedule shall include power--

(a) to make different provision for different cases or different purposes; and

(b) to make such supplemental, incidental, consequential and transitional provision as the Secretary of State considers appropriate in relation to the provision contained in any such regulations.

(3) The power conferred by sub-paragraph (2) above shall include--

(a) power, for the purpose of giving effect to any option afforded by virtue of this Schedule, to provide for the modification of the contracts of employment of persons who become participants in a scheme established in pursuance of any such regulations; and

(b) power to require any dispute arising under or in relation to any regulations under this Schedule to be referred to such arbitration as may be prescribed.

(4) Regulations under this Schedule may be made so as to have effect from a date prior to their making; but, in making any provision so to have effect, regulations under this Schedule shall not place any person other than--

(a) the Secretary of State,

(b) the Authority,

(d) a company wholly owned by the Crown,

in a worse position than he or it would have been in if the regulations had been made so as to have effect only from the date of their making.

(5) Where any modification by virtue of this Schedule of any existing scheme confers any powers on the Secretary of State, those powers shall be treated as conferred for purposes that include securing that trustees and other persons concerned in the administration of the scheme exercise and perform their powers and duties in such manner as appears to the Secretary of State to take account, to the extent that he thinks appropriate, of the desirability--

(a) of preventing the Secretary of State from incurring any liability under arrangements entered into as mentioned in paragraph 2(9) above;

(b) of keeping to a minimum the amount of any liability that is incurred under any such arrangements; and

(c) of managing the scheme so as to produce the largest practicable surpluses at the times as at which determinations of any relevant surpluses (within the meaning of paragraph 2 above) fall to be made.

(6) Nothing in any enactment or rule of law shall prevent the Corporation, the trustees of any existing scheme, or any other person concerned in the administration of any such scheme, from giving the Secretary of State or such other person as may be prescribed all such advice or assistance as he may reasonably require for the purposes of making any determination, apportionment, allocation or transfer, or giving or issuing any direction or certificate, for which provision is made by or under this Schedule.

Section 43.

SCHEDULE 6 Further modifications of the 1991 Act

1 (1) Where--

(a) a damage notice is received by a person with responsibility for subsidence affecting any land, and

(b) that person is neither the Authority nor the person who is or would be the responsible person in relation to the damage with respect to which the notice is given,

the person who has received the notice shall, as soon as reasonably practicable after receiving it, forward the notice to the Authority.

(2) Where--

(a) a damage notice is received by the Authority (whether as a result of being forwarded under sub-paragraph (1) above or otherwise), and

(b) the Authority is not itself the person who is or would be the responsible person in relation to the damage with respect to which the notice is given,

the Authority shall, as soon as reasonably practicable after receiving it, forward the notice to the person appearing to the Authority to be the person who is or would be the responsible person in relation to that damage.

(3) The person to whom a notice is forwarded under this paragraph shall be deemed for the purposes of the 1991 Act--

(a) to have been given that notice by the person whose notice it is; and

(b) to have received the notice within the period allowed by section 3 of the 1991 Act if it was or is deemed to have been so received by the person who forwarded it.

(4) In this paragraph "damage notice" has the same meaning as in the 1991 Act.

2 Section 8(9) of the 1991 Act (grounds for refusing request for purposes connected with the execution of works by another) shall have effect in relation to times on and after the restructuring date with the substitution for the reference to a remedial obligation of the Corporation in respect of any one or more neighbouring properties of a reference to the remedial obligation, in respect of any one or more such properties, of the responsible person or of any other person with responsibility for subsidence affecting land.

3 (1) In relation to times on or after the restructuring date, sections 10(2)(c), 16(1)(b) and (7)(a), 17(1)(a) and 33(1) of the 1991 Act (which make provision where certain matters appear to the Corporation) shall have effect, in each case, with the omission of the words "to the Corporation".

(2) Accordingly, section 16 of that Act shall have effect in relation to such times--

(a) with the substitution, in subsection (1), for "it appears to them as mentioned in paragraph (b) above" of "the condition mentioned in paragraph (b) above is satisfied"; and

(b) with the omission, in subsection (7)(b), of the words "to them", wherever occurring.

4 The reference in section 15 of the 1991 Act (recipients of depreciation payments) to another person who is liable to make good any damage shall not, in relation to any responsible person, include any person who is liable to make good that damage by virtue only of being jointly and severally liable with the responsible person in accordance with section 44(1) of this Act.

5 In relation to any regulations made on or after the restructuring date sections 25(1) and 29(1) of the 1991 Act shall each have effect with the substitution for the first reference to the Corporation (consultation as to regulations) of a reference to such persons with responsibility for subsidence affecting land as it appears to the Secretary of State to be appropriate to consult.

6 Section 43(1) of this Act shall require the second reference to the Corporation in section 29(1) of the 1991 Act and the references to the Corporation in sections 33(2) to (6) and 36 of that Act to be construed, in relation to subsidence damage of which there is a possibility or which appears likely to occur or might occur, as references to the person who would be the responsible person in relation to that damage if it did occur.

7 On and after the restructuring date sections 37, 38, 40 to 42 and 44(1) of the 1991 Act (which make general provision with respect to claims) shall have effect with the substitution for references to the Corporation, or to any of its licensees, of references to any person with responsibility for subsidence affecting any land.

8 On and after the restructuring date sections 46 and 47 of the 1991 Act (which require the giving of notice of certain operations) shall have effect in relation to any underground coal-mining operations as a result of which any land may be affected by subsidence--

(a) with the substitution for references to the Corporation of references to the person who would be the responsible person in relation to any subsidence damage to that land if such damage were to result from the operations; and

(b) as if anything done by the Corporation under that section before the restructuring date had been done by that person.

9 The provisions of section 44 of this Act, so far as they relate to obligations, liabilities or rights of responsible persons, shall also apply as respects obligations, liabilities or rights by virtue of paragraph 6 or 8 above of persons who would be responsible persons if subsidence damage occurred; and, for that purpose, references in that section to subsidence damage shall be construed accordingly.

10 On and after the restructuring date, section 49 of the 1991 Act (which makes provision with respect to the making of reports by the Corporation) shall have effect with the substitution for references to the Corporation of references to the Authority; and, accordingly, any requirement imposed by that section on the Corporation shall have effect on and after that date as if imposed on the Authority.

11 Paragraph 1(1) of Schedule 2 to the 1991 Act (payment of depreciation where Corporation satisfied that the relevant interest was subject to a mortgage) shall have effect in relation to payments falling to be made on or after the restructuring date with the omission of the words "the Corporation are satisfied that".

12 Section 43(1) of this Act shall not apply to the references to the Corporation in Schedule 7 to that Act (transitional provisions) so far as they have effect in relation to times before the restructuring date.

Section 49.

SCHEDULE 7 Retained Interests in Copyhold Land

Part I Claims in respect of Retained Interests

Application of Part I

1 (1) This Part of this Schedule shall apply where, at any time on or after the restructuring date, a notice of a retained interest is given by any person in pursuance of an invitation contained by virtue of--

(a) subsection (3)(d) of section 50 of this Act, or

(b) subsection (3)(b) of section 3 of the 1975 Act,

in a notice for the purposes of section 49 of this Act or, as the case may be, in a notice under that section 3.

(2) In this Part of this Schedule--

(a) a notice of a retained interest in pursuance of such an invitation as is mentioned in sub-paragraph (1) above is referred to as a "retained interest notice"; and

(b) the person who gives such a notice is referred to, in relation to that notice, as "the claimant".

(3) Where any of the Corporation's rights under section 49 of this Act in relation to any land have been transferred in accordance with a restructuring scheme to any other person--

(a) the persons to whom a retained interest notice relating to that land may be given for the purposes of this Schedule shall be the Corporation, the Authority or that other person; and

(b) a retained interest notice given to the Corporation or the Authority shall be--

(i) forwarded by the Corporation or Authority, as soon as reasonably practicable after being received, to that other person; and

(ii) treated for the purposes of this Schedule as if given to that other person when it was given to the Corporation or Authority.

Form of claim

2 The claimant shall furnish, together with the retained interest notice, adequate proof of his title to the interest at the time when he gives the notice.

Acceptance or rejection of claim

3 (1) Within the period of three months beginning with the date on which the person to whom it is given receives a retained interest notice, or within such longer period as may be agreed between that person and the claimant, that person shall serve on the claimant either--

(a) a notice in the prescribed form accepting the claimant's title to the retained interest and acknowledging that an obligation under this Part of this Schedule to pay compensation in respect of it has arisen or, as the case may be, will arise if the right in question is exercised; or

(b) a notice rejecting the claimant's retained interest notice.

(2) In this Part of this Schedule--

(a) a notice under sub-paragraph (1)(a) above is referred to as an "acceptance notice";

(b) a notice under sub-paragraph (1)(b) above is referred to as a "rejection notice"; and

(c) a reference, in relation to an acceptance notice, to the accepted interest is a reference to the interest to which that notice relates.

(3) Where a person serves an acceptance notice or a rejection notice, he shall at the same time send a copy of that notice to the Authority.

(4) A person who fails to comply with any of the requirements of this paragraph as to the service of notices, or as to the sending of a copy of any notice to the Authority, shall be guilty of an offence and liable, on summary conviction, to a fine not exceeding level 3 on the standard scale.

(5) A rejection notice shall specify the ground or grounds on which the claimant's retained interest notice is rejected and, where the matters specified concern only a part of the land to which the retained interest notice relates, shall identify the part in question.

(6) Subject to paragraph 5 below, where, after the receipt by any person of a retained interest notice, an acceptance notice is served in respect of the retained interest concerned, the service of that acceptance notice shall be a valid ground for the service of a rejection notice in respect of any other retained interest notice which--

(a) is received by any person after the service of that acceptance notice; and

(b) relates to any of the land in which the accepted interest subsists.

(7) In sub-paragraph (1) above "prescribed" means prescribed by regulations made by the Secretary of State by statutory instrument; and a statutory instrument containing regulations under this paragraph shall be subject to annulment in pursuance of a resolution of either House of Parliament.

Payment of costs of establishing claim

4 Subject to paragraph 5 below, as soon as practicable after any person has served an acceptance notice on a claimant, that person shall pay to the claimant any reasonable legal expenses incurred by the claimant for the purposes of--

(a) establishing his ownership of the retained interest to which the acceptance notice relates; and

(b) giving the retained interest notice by virtue of which the acceptance notice came to be served.

Challenge of rejection notice

5 (1) A claimant who--

(a) has served a retained interest notice relating to any land ("the relevant land"), and

(b) is aggrieved by the service on him of a rejection notice relating to his retained interest notice, other than a rejection notice served in pursuance of an order under this paragraph,

may, within the period of three months beginning with the date of service of the rejection notice, make an application to the county court for an order directing the withdrawal of the rejection notice and the service of an acceptance notice in respect of the retained interest which he claims.

(2) On an application under this paragraph, the court may direct that, in addition to the applicant and the person who served the rejection notice, the Authority and any person other than the claimant who has given a retained interest notice relating to the whole or any part of the relevant land shall be made a party to the application unless, in the case of a person other than the claimant who has given a retained interest notice--

(a) a rejection notice has already been served in respect of that retained interest notice; and

(b) the time within which that person might have made an application under this paragraph in respect of that rejection notice has expired without such an application having been made.

(3) On an application under this paragraph the court shall determine whether--

(a) the applicant,

(b) any other party to the application who contests the applicant's claim, or

(c) any other person (whether a party to the application or not) on whom an acceptance notice relating to the whole or any part of the relevant land has been served,

was, at the time when he gave his retained interest notice, entitled to a retained interest in the whole or any part of the relevant land and shall order the service (if it has not already been done) of an acceptance notice on that person or, if more than one of them were so entitled to a retained interest in the same piece of land, on that one of them whose retained interest notice was given first.

(4) An order under sub-paragraph (3) above may contain such provisions as the court considers appropriate--

(a) for securing that every party to the application other than--

(i) the person to whom the retained interest notice in question was given, and

(ii) any person on whom an acceptance notice has been, or is ordered to be, served,

is or has been served with a rejection notice; and

(b) where it appears to the court that an acceptance notice has been served which should not have been served, for securing--

(i) that the notice is cancelled; and

(ii) that the person who served the notice brings the cancellation to the attention of the person who, if the notice had not been cancelled, would have been the person with an actual or contingent entitlement to compensation under this Part of this Schedule in respect of the accepted interest.

(5) If, in accordance with sub-paragraph (4) above, the court orders the cancellation of an acceptance notice, it shall be conclusively presumed for the purposes of sections 49 and 50 of this Act, and for the purposes of this Schedule, except this paragraph--

(a) that the person on whom the acceptance notice was served did not have a retained interest in the relevant land at the time when he served his retained interest notice; and

(b) that a rejection notice was served in respect of that retained interest notice.

(6) Nothing in paragraph 4 above shall affect the power of the court on an application under this paragraph (or in any subsequent proceedings) to make such order as to costs as it thinks fit; and any such order may make such modifications, if any, of a person's obligation under paragraph 4 above as appear to the court to be just in the light of the other provisions as to costs which are contained in the order.

Compensation

6 (1) Subject to paragraphs 7 and 11 below, where--

(a) any person has begun to exercise any right which is a right of his under section 49(1) of this Act,

(b) that right is a right in relation to any coal or coal mine comprised in or lying under any land in which a retained interest subsists, and

(c) a right to compensation has not arisen under this sub-paragraph in respect of the exercise of the right by a person whose right it was previously,

the person who has begun to exercise the right shall pay compensation in respect of that interest.

(2) Compensation under sub-paragraph (1) above shall be calculated by reference to the consideration which, on the date on which the exercise of the right referred to in sub-paragraph (1) above began, would have been appropriate, as between a willing grantor and a willing grantee, on a conveyance of that interest (so far as it subsists in the land subject to the right) to the person who exercises that right.

(3) Where a person who has become liable for any compensation under this paragraph ceases to be a person who is entitled to exercise the right in question, his so ceasing shall affect neither his liability nor the amount of the compensation.

(4) Where compensation is due to any person under sub-paragraph (1) above there shall be paid to him, in addition to the compensation, any reasonable valuation expenses incurred by him for the purpose of ascertaining the value, at the date referred to in sub-paragraph (2) above, of the retained interest to which the compensation relates.

(5) Any dispute as to the amount of any compensation under this paragraph, or as to the amount of any valuation expenses to be paid in accordance with sub-paragraph (4) above, shall be determined by the Lands Tribunal.

(6) Sub-paragraph (3) above shall be subject to so much of any restructuring scheme as makes provision for the transfer to any other person, as from the restructuring date or any subsequent date, of the Corporation's liabilities by virtue of this paragraph; and sub-paragraph (4) above shall be without prejudice to the powers of the Lands Tribunal, by virtue of sub-paragraph (5) above, in respect of the costs of proceedings before the Tribunal.

(7) References in this Part of this Schedule, in relation to any right under subsection (1) of section 49 of this Act, to a person with a contingent entitlement to compensation under this Part of this Schedule are references to any person who (subject to paragraph 7(3) below) would be entitled to any such compensation if the person with that right began to exercise it.

Persons entitled to compensation

7 (1) Subject to paragraph 5 above, it shall be conclusively presumed that a person on whom a rejection notice has been served has neither an actual nor, as the case may be, a contingent entitlement to compensation under this Part of this Schedule in respect of the interest to which the notice relates.

(2) The person having the right to receive compensation under this Schedule in respect of a retained interest to which an acceptance notice relates shall be the person on whom that notice was served, notwithstanding that he may not own the retained interest at the time when the compensation becomes due; and, accordingly, that right shall devolve on his death and may be assigned in like manner as the right of a creditor under an unsecured debt.

(3) Notwithstanding anything in sub-paragraph (2) above if, at the time when compensation becomes due in respect of a retained interest, any compensation is paid in good faith to the person who produces the acceptance notice relating to that interest, the surrender of that notice by way of receipt for the compensation shall constitute an adequate discharge to the person paying the compensation of his liability to pay that compensation, without any further proof that the person producing the acceptance notice is entitled in accordance with this Part of this Schedule to receive the compensation.

Agreements with respect to compensation

8 (1) If at any time--

(a) after an acceptance notice has been served in respect of a retained interest, and

(b) before the date on which compensation becomes due in respect of that interest,

any person ("the relevant person") enters into an agreement in that behalf with another person, being the person with the contingent entitlement to any such compensation, then, on payment to that other person of such consideration as may be agreed, the relevant person shall be relieved of any contingent liability under this Part of this Schedule in respect of that retained interest.

(2) Where any such agreement as is mentioned in sub-paragraph (1) above is entered into, sub-paragraph (3) of paragraph 7 above shall apply in relation to the payment of the consideration agreed as it applies in relation to a payment of compensation at the time referred to in that sub-paragraph (3).

(3) Without prejudice to sub-paragraphs (1) and (2) above, at any time after an acceptance notice has been served in respect of a retained interest, the person who served it shall cease to be entitled to acquire by agreement that interest or any other retained interest in any coal or coal mine comprised in or lying under any of the land in which the accepted interest subsists.

Notice of compensation

9 (1) Where any person--

(a) makes a payment of compensation under this Part of this Schedule, or

(b) enters into any agreement for the purposes of paragraph 8 above,

he shall, as soon as reasonably practicable after making the payment or entering into the agreement, send particulars of the payment or agreement to the Authority.

(2) The particulars to be sent to the Authority in pursuance of sub-paragraph (1) above shall include particulars identifying--

(a) the person to whom the payment is made or, as the case may be, the parties to the agreement; and

(b) the interest in respect of which the payment is made or, as the case may be, in respect of which the contingent liability extinguished by the agreement arose.

(3) A person who fails to comply with any of the requirements of this paragraph as to the sending of any particulars to the Authority shall be guilty of an offence and liable, on summary conviction, to a fine not exceeding level 3 on the standard scale.

Part II Other Provisions

Saving for rights to dispose of retained interests

10 Subject to paragraph 8(3) above and to any provision applied by paragraph 12 below, neither--

(a) the publication on or after the restructuring date of any notice for the purposes of section 49 of this Act, nor

(b) any publication before that date of a notice under section 3 of the 1975 Act,

shall prevent any person from acquiring by agreement any retained interest in any coal or coal mine comprised in or lying under land in the area to which the notice relates.

Pre-1975 Act orders under the Mines (Working Facilities and Support) Act 1966

11 (1) If--

(a) by virtue of an order under section 1 of the [1966 c. 4.] Mines (Working Facilities and Support) Act 1966 or of any agreement, the Corporation was entitled on 31st August 1975 to work any coal or to use any coal mine in which a retained interest subsisted at that time,

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