Paragraph 35
Subject to sub-paragraphs (2) and (3), if by reason or in consequence of the construction of any of the works referred to in this Order, or in consequence of the construction, use, maintenance or failure of any of the authorised development by or on behalf of Network Rail or in consequence of any act or default of Network Rail (or any person employed or authorised by it) in the course of carrying out such works, including without limitation works carried out by Network Rail under this Schedule 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 those works) or property of Northern Powergrid, or there is any interruption in any service provided by Northern Powergrid, or as a consequence Northern Powergrid becomes liable to pay any amount to a third party Network Rail must—
bear and pay the cost reasonably incurred by Northern Powergrid in making good such damage or restoring the supply; and
indemnify Northern Powergrid for any other expenses, loss, demands, proceedings, damages, claims, penalty or costs incurred by or recovered from Northern Powergrid, by reason or in consequence of any such damage or interruption or Northern Powergrid becoming liable to any third party.
Nothing in sub-paragraph (1) imposes any liability on Network Rail with respect to any damage or interruption to the extent that it is attributable to the act, neglect or default of Northern Powergrid, its officers, servants, contractors or agents, and nor does sub-paragraph (1) impose any liability on Network Rail in respect of consequential losses.
Northern Powergrid must give Network Rail reasonable notice of any such claim or demand and no settlement or compromise is to be made without the consent of Network Rail which, if it withholds such consent, has the sole conduct of any settlement or compromise or of any proceedings necessary to resist the claim or demand.
Northern Powergrid must use its reasonable endeavours to mitigate in whole or in part and to minimise any costs, expenses, loss, demands and penalties to which the indemnity under sub- paragraph (1) applies. If requested to do so by Network Rail, Northern Powergrid must provide an explanation of how the claim has been minimised. Network Rail is only liable under sub- paragraph (1) for claim reasonably incurred by Northern Powergrid.