7. APPEAL CONTINGENCY

7.1. The Contractor will bear all costs relating to and arising from any Permit Proceedings (including for the avoidance of doubt the costs of obtaining any Leading Counsel's opinion under paragraph 6 (Permit Proceedings) up to the limit of the Appeal Contingency (taking into account any such costs of Permit Proceedings and Proceedings previously incurred under Schedule 26 (Planning) or Schedule 27 (Approach to Permit Risk)) following which the Authority shall indemnify the Contractor for nine-tenths of all amounts reasonably, properly and prudently spent or contracted to be spent by the Contractor in excess of the Appeal Contingency in the proper and diligent conduct of the Permit Proceedings provided that:

7.1.1. the Contractor shall within twenty (20) Business Days of receiving:

(a) the written notification that the application for the Key Facility Environmental Permit is being referred to the Secretary of State, or

(b) any decision of the Permitting Authority or the Secretary of State to refuse the Key Facility Environmental Permit; or

(d) the grant of a Key Facility Environmental Permit which is to be the subject of the Permit Proceedings,

provide to the Authority for its approval (such approval not to be unreasonably withheld or delayed) a detailed estimate of the likely cost of such Permit Proceedings including a detailed breakdown of the estimated costs of legal fees and all other professional fees and other disbursements together with details of all the legal and other professional advisers that the Contractor proposes to employ and shall at no time incur any costs above the said estimate or employ any additional or alternative legal or professional advisers without the further approval of the Authority (such approval not to be unreasonably withheld or delayed); and

7.1.2. the Contractor shall use its reasonable endeavours to ensure that the costs of the Permit Proceedings are kept to the minimum extent prudent and reasonable at all times.