3.  CONTRACTOR TO OBTAIN A KEY FACILITY ENVIRONMENTAL PERMIT

3.1.  The Contractor undertakes to the Authority that (subject to the provisions of this Schedule 27 (Approach to Permit Risk):

3.1.1.  it shall use All Reasonable Endeavours to obtain a Satisfactory Permit in the name of the Contractor to enable it to undertake the Works and to deliver the Services at the [specify the Facility concerned]; and

3.1.2.  the Contractor shall in pursuing a Key Facility Environmental Permit use All Reasonable Endeavours to follow and meet the Key Dates (Schedule 8) in respect of the [specify the Facility concerned].

3.2.  210The Contractor shall bear the costs of obtaining and of implementing and complying with the provisions and conditions of the Key Facility Environmental Permit (other than the Authority's internal costs and any costs relating to Permit Proceedings in the name of the Contractor which exceed the Appeal Contingency and in respect of which the Authority has given prior written consent that such costs may be incurred in accordance with paragraph 6 (Permit Proceedings) below).

3.3.  The Contractor shall provide to the Authority on a quarterly basis a written summary of:

3.3.1.  the steps taken by the Contractor in the preceding quarter in compliance with its obligations under this paragraph 3; and

3.3.2.  a written summary of those steps which it anticipates taking in the following quarter in order to comply with its obligations under this paragraph 3.

3.4.  Without limiting the Contractor's obligations under this paragraph 3 the Authority may within five (5) Business Days after receipt of such summary notify the Contractor of any further measures which it believes the Contractor should take in order to comply with its obligations under this paragraph 3. If the Contractor disagrees, it may refer the matter to the Dispute Resolution Procedure.

3.5.  Upon receipt of a notice issued under paragraph 3.4 (or where the matter has been referred to the Dispute Resolution Procedure, on determination or agreement of the dispute) the Contractor shall take the measures set out in the notice given under paragraph 3.4 (or, if relevant, the measures that have been determined or agreed under the Dispute Resolution Procedure) as soon as reasonably practicable and in any event within ten (10) Business days of receipt of the notice.

__________________________________________________________________________________________________

210  The consequence of a Contractor not using All Reasonable Endeavours is that the Authority is not liable for any compensation following termination for failure to obtain a permit. Because of this, the Senior Lenders may require the Authority to provide a written confirmation as to whether the Authority believes that the Contractor has complied with the obligation to use All Reasonable Endeavours (similar to that in Schedule 26).  In deciding whether to accept this request, the Authority should consider whether it has the capability to provide this confirmation (or whether it has access to this capability).  It should also take into account the project specific issues on permitting.