16.1 Compensation Events

Compensation Events may occur in either the construction period or the operating period. The specific Compensation Events will differ for jurisdictional or project specific reasons, but may generally fall within the following categories of events:

(a) a modification, withdrawal, revocation or replacement of the government obtained planning approval referred to in section 6.2(a), other than due to an application for a further planning approval by, or any other action or inaction of, the private party or its sub-contractors, or as a result of a breach of that planning approval or as a result of a private party initiated Modification;

(b) as a result of a challenge to the government obtained planning approval referred to in section 6.2(a) the private party is ordered by a court to cease carrying out the design and construction activities (or to change the way it does so), provided the challenge was not the result of a breach of the planning approval or project agreement by the private party;

(c) a government or court direction to suspend or cease all or any part of the works because of a native title application or claim where government assumes this risk60 (provided the cessation order does not result from a private party breach of its obligations in relation to native title);

(d) a government direction in relation to artefacts (provided the direction does not result from a private party breach of its obligations in relation to artefacts); and

(e) an Environmental Notice served on the private party or government other than an Environmental Notice served in respect of:

(i) any Site Condition, area or other matter for which the private party is responsible for in accordance with the project agreement; and

(ii) a breach by the private party of its obligations under the project agreement (which includes an obligation to undertake the work in accordance with Good Industry Practice).

Jurisdictions may adopt some, all or none of the Compensation Events listed above, or parts thereof, and may include additional Compensation Events.

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60 See section 5.1 in Chapter 5 (Native title and artefacts).