22Compensation for abrogation of prior right

22 Compensation for abrogation of prior right

(1)  The holder of a prior right that is abrogated under section 21 is entitled to compensation for any liability incurred or loss sustained unless –

(a) [Section 22 Subsection (1) amended by No. 12 of 2004, s. 11, Applied:09 Jun 2004] the abrogation is necessary to ensure that the total quantity of water permitted to be taken from the relevant water resource does not prevent the achievement of the water regime that best gives effect to the environmental objectives referred to in section 14(2)(a) ; or

(b) the holder consents to the abrogation or reduction.

(2)  [Section 22 Subsection (2) amended by No. 9 of 2011, Sched. 1, Applied:01 Oct 2012] In default of an agreement between the Minister and the holder of the prior right, the amount of compensation is to be determined in accordance with the Commercial Arbitration Act 2011 .

(3)  [Section 22 Subsection (3) amended by No. 4 of 2017, Sched. 1, Applied:01 Jul 2019] For the purposes of this section, any compensation is to be paid out of the Public Account without further or other appropriation than this section.

(4)  In determining the amount of compensation under subsection (1) , any benefit to the holder of the prior right arising from the abrogation is to be taken into account.