6.  PERMIT PROCEEDINGS

6.1.  If in respect of [specify the EfW Facility)] the relevant Permitting Authority:

6.1.1.  refuses to grant a Key Facility Environmental Permit or there is a Permit Deemed Refusal; or

6.1.2.  grants a Key Facility Environmental Permit which is not Satisfactory Permit in circumstances where the Authority and the Contractor agree (or are unable to agree and it is determined pursuant to Clause 60 (Dispute Resolution)) that Permit Proceedings may secure a Satisfactory Permit; or

6.1.3.  refuses to grant an application to remove, modify or vary any condition imposed in a Key Facility Environmental Permit; or

6.1.4.  grants a Key Facility Environmental Permit in respect of which any condition is imposed which is unreasonable in the Contractor's reasonable opinion,

the Contractor shall take the opinion of Leading Counsel as to the merits of pursuing any Permit Proceedings.

6.2.  If Leading Counsel advises the Contractor that there is a reasonable prospect of success in pursuing any Permit Proceedings in order to obtain a Satisfactory Permit (or in order to remove or vary any unreasonable condition referred to in paragraph 6.1.3) the Contractor shall seek the approval of the Authority to institute such Permit Proceedings which the Authority shall not unreasonably withhold or delay and if such approval is granted the Contractor shall pursue or defend the same until determination of such Permit Proceedings (subject to the Planning Permission Longstop Date) unless subsequently in accordance with paragraph 6.4, the Authority directs that such Permit Proceedings shall cease to be pursued.

6.3.  At any reasonable time after the commencement of any Permit Proceedings in relation to the Key Facility Environmental Permit the Authority may require the Contractor to take (or the Contractor may take (subject to notifying the Authority of such intention)) the opinion of Leading Counsel as to the merits of continuing to pursue such Permit Proceedings and to make such opinion available to the Authority.

6.4.  In the event that Leading Counsel advises under paragraph 6.2 or subsequently under paragraph 6.3 that there is no reasonable prospect of success the Authority shall by serving written notice on the Contractor on or before a date twenty (20) Business Days (or such additional period of time as the Authority acting reasonably determines) from the receipt by the Authority of the advice of Leading Counsel either:

6.4.1.  direct that the Contractor shall not pursue or shall cease to pursue the relevant Permit Proceedings (and such direction shall be deemed if the Authority fails to give notice as provided by paragraph 6.4); or

6.4.2.  direct that the Contractor institutes or continues the relevant Permit Proceedings and such direction shall be treated as an approval to those Permit Proceedings given pursuant to paragraph 6.2.

6.5.  If the Authority (acting reasonably in all cases):

6.5.1.  does not give such approval to any Permit Proceedings (or is deemed not to have done so); or

6.5.2.  directs that the Contractor should cease to pursue such Permit Proceedings;

the Contractor may still institute or continue to pursue (or procure the pursuit of) those Permit Proceedings, subject to service of prior written notice of its intention to do so upon the Authority within twenty (20) Business Days of receipt of the Authority's notice under paragraph 6.4 and the Contractor will bear all the costs of instituting or continuing to pursue those Permit Proceedings which it incurs from the point at which the Authority serves notice pursuant to paragraph 6.4 and paragraph 7 (Appeal Contingency) and paragraph 9 (Costs Awarded in Permit Proceedings) will not apply to those costs.

6.6.  The Contractor shall be entitled, in its absolute discretion, to cease to pursue any Permit Proceedings which it institutes or continues pursuant to paragraph 6.5 (approval being withheld or a direction having been given to the contrary) and in respect of which it has undertaken to bear the costs pursuant to paragraph 6.5.