(2) Network Rail must give the undertaker reasonable notice of any such claim or demand and
no settlement or compromise of such a claim or demand is to be made without the prior consent of the undertaker, such consent not to be unreasonably withheld.
(3) The sums payable by the undertaker under sub-paragraph (1) will include a sum equivalent
to the relevant costs. (4) Subject to the terms of any agreement between Network Rail and a train operator regarding
the timing or method of payment of the relevant costs in respect of that train operator, Network Rail must promptly pay to each train operator the amount of any sums which Network Rail receives under sub-paragraph (3) which relates to the relevant costs of that train operator.
(5) The obligation under sub-paragraph (3) to pay Network Rail the relevant costs will, in the
event of default, be enforceable directly by any train operator concerned to the extent that such sums would be payable to that operator pursuant to sub-paragraph (4).
(6) In this paragraph—
“the relevant costs” means the costs, direct losses and expenses (including loss of revenue) reasonably incurred by each train operator as a consequence of any restriction of the use of Network Rail’s railway network as a result of the construction, maintenance or failure of a specified work or any such act or omission as mentioned in sub-paragraph (1); and
“train operator” means any person who is authorised to act as the operator of a train by a licence under section 8 of the Railways Act 1993.
16. Network Rail must, on receipt of a request from the undertaker, from time to time provide
the undertaker free of charge with written estimates of the costs, charges, expenses and other liabilities for which the undertaker is or will become liable under this Schedule (including the amount of the relevant costs mentioned in paragraph 15) and with such information as may reasonably enable the undertaker to assess the reasonableness of any such estimate or claim made or to be made pursuant to this Schedule (including any claim relating to those relevant costs).
17. In the assessment of any sums payable to Network Rail under this Schedule there must not
be taken into account any increase in the sums claimed that is attributable to any action taken by or any agreement entered into by Network Rail if that action or agreement was not reasonably necessary and was taken or entered into with a view to obtaining the payment of those sums by the undertaker under this Schedule or increasing the sums so payable.
18. The undertaker and Network Rail may, subject in the case of Network Rail to compliance
with the terms of its network licence, enter into, and carry into effect, agreements for the transfer to the undertaker of—
(a) any railway property shown on the works and land plans and described in the book of reference;
(b) any lands, works or other property held in connection with any such railway property; and
(c) any rights and obligations (whether or not statutory) of Network Rail relating to any railway property or any lands, works or other property referred to in this paragraph.
19. Nothing in this Order, or in any enactment incorporated with or applied by this Order, shall
prejudice or affect the operation of Part I of the Railways Act 1993. 20. The undertaker must give written notice to Network Rail where any application is proposed
to be made by the undertaker for the Secretary of State’s consent under article 5 (benefit of the Order) of this Order and any such notice must be given no later than 28 days before any such application is made and must describe or give (as appropriate)—
(a) the nature of the application to be made; (b) the extent of the geographical area to which the application relates; and
(c) the name and address of the person acting for the Secretary of State to whom the application is to be made.
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