Agency may make good the impairment or damage and recover from the Authority the expense reasonably incurred by it in doing so. 

7.  Nothing in paragraphs 4(4), 5(3) and 6 authorises the Agency to execute works on or affecting the authorised works. 

8.  The Authority must indemnify the Agency in respect of all costs, charges and expenses which the Agency may reasonably incur or have to pay or which it may sustain— 

(a) in the examination or approval of plans under this Schedule; and 

(b) in the inspection of the construction of the specified works or any protective works required by the Agency under this Schedule. 

9. —(1) Without affecting the other provisions of this Schedule, the Authority must indemnify the Agency from all claims, demands, proceedings, costs, damages, expenses or loss, which may be made or taken against, recovered from, or incurred by, the Agency by reason of— 

(a) any damage to any drainage work so as to impair its efficiency for the purposes of flood defence; 

(b) any raising or lowering of the water table in land adjoining the authorised works or any sewers, drains and watercourses; 

(c) any flooding or increased flooding of any such lands; or 

(d) inadequate water quality in any watercourse or in any groundwater, 

which is caused by the construction of any of the specified works or any act or omission of the Authority, its contractors, agents or employees whilst engaged upon the work. 

(2) The Agency must give to the Authority reasonable notice of any such claim or demand and no settlement or compromise may be made without the agreement of the Authority which agreement must not be unreasonably withheld or delayed. 

10.  The fact that any work or thing has been executed or done by the Authority in accordance with a plan approved or deemed to be approved by the Agency, or to its satisfaction, or in accordance with any directions or award of an arbitrator, does not relieve the Authority from any liability under the provisions of this Schedule. 

11.  Any dispute arising between the Authority and the Agency under this Schedule, if the parties agree, is to be determined by arbitration under article 53 (arbitration), but otherwise is to be determined by the Secretary of State for Environment, Food and Rural Affairs and the Secretary of State for Transport acting jointly on a reference to them by the Authority or the Agency, after notice in writing by one to the other. 

