SCHEDULES
SCHEDULE 14PROTECTIVE PROVISIONS
PART 5FOR THE PROTECTION OF SPECIFIED GAS UNDERTAKERS
Indemnity
schedule 14 paragraph 58 58.—(1) Subject to sub-paragraphs (2) and (3), if by reason or in consequence of the construction of any such works authorised by this Part of this Schedule (including without limitation relocation, diversion, decommissioning, construction and maintenance of apparatus or alternative apparatus) or in consequence of the construction, use, maintenance or failure of any of the authorised development (including works carried out under article 20 (protective work to land and buildings)) by or on behalf of the undertaker or in consequence of any act or default of the undertaker (or any person employed or authorised by the undertaker) in the course of carrying out such works, including without limitation works carried out by the undertaker under this Part of this Schedule or any subsidence resulting from any of these works, any damage is caused to any apparatus or alternative apparatus (other than apparatus the repair of which is not reasonably necessary in view of its intended removal for the purposes of the authorised development) or property of the gas undertaker, or there is any interruption in any service provided, or in the supply of any goods, by the gas undertaker, or the gas undertaker becomes liable to pay any amount to any third party, the undertaker will—
schedule 14 paragraph 58 1 a (a)bear and pay on demand accompanied by an invoice or claim from the gas undertaker, the cost reasonably incurred by the gas undertaker in making good such damage or restoring the supply; and
schedule 14 paragraph 58 1 b (b)indemnify the gas undertaker for any other expenses, loss, demands, proceedings, damages, claims, penalty, compensation or costs properly incurred or paid by or recovered from the gas undertaker, by reason or in consequence of any such damage or interruption or the gas undertaker becoming liable to any third party as aforesaid other than arising from any default of the gas undertaker.
(2) The fact that any act or thing may have been done by the gas undertaker on behalf of the undertaker or in accordance with a plan approved by the gas undertaker or in accordance with any requirement of the gas undertaker or under its supervision including under any watching brief will not (unless sub-paragraph (3) applies) excuse the undertaker from liability under the provisions of this sub-paragraph (1) unless the gas undertaker fails to carry out and execute the works properly with due care and attention and in a skilful and workman like manner or in a manner that does not accord with the approved plan.
(3) Nothing in sub-paragraph (1) imposes any liability on the undertaker in respect of—
schedule 14 paragraph 58 3 a (a)any damage or interruption to the extent that it is attributable to the neglect or default of the gas undertaker, its officers, servants, contractors or agents;
schedule 14 paragraph 58 3 b (b)any part of the authorised development carried out by the gas undertaker in the exercise of any functions conferred by this Order pursuant to a grant or transfer under article 8 (consent to transfer benefit of Order); and
schedule 14 paragraph 58 3 c (c)any indirect or consequential loss of any third party (including but not limited to loss of use, revenue, profit, contract, production, increased cost of working or business interruption) arising from any such damage or interruption, which is not reasonably foreseeable.
(4) The gas undertaker must give the undertaker reasonable notice of any such third party claim or demand and no settlement, admission of liability or compromise must, unless payment is required in connection with a statutory compensation scheme, be made without first consulting the undertaker and considering their representations.