Hong Kong Regulations

WATER POLLUTION CONTROL (GENERAL) REGULATIONS - REGULATION 15B

Compensation on basis of modification and adaptation of activity where licence cancelled

(1) This regulation applies where compensation payable under section 25(1) or
26(2) of the Ordinance in respect of the cancellation of a licence falls to be
determined by reference to loss arising from the necessary modification or
adaptation, as a result of such cancellation, of any activity lawfully being
carried on at the time of the cancellation so as to enable the activity
lawfully to continue at the existing site.

(2) In determining the amount of compensation referred to in subregulation (1)
there shall be taken into account the following factors-

   (a)  the depreciated value of any equipment used in the activity at the
        time of the cancellation that must be replaced in order to enable the
        activity to continue;

   (b)  the difference between the cost and the value on disposal of raw
        materials and semi-finished products acquired for or produced by the
        activity referred to in paragraph (a) which can no longer be used in
        the activity;

   (c)  the reasonable cost of installing waste recovery and treatment systems
        to the extent necessary to enable the activity lawfully to continue;

   (d)  the reasonable cost of changing or upgrading any equipment so as to
        enable the activity lawfully to continue;

   (e)  any additional operational and maintenance costs incurred as a result
        of any upgrading referred to in paragraph (d) in respect of the
        balance of the period under the licence immediately prior to its
        cancellation.

(3) Any factor that is not specified in subregulation (2) shall be disregarded
for the purpose of determining an amount of compensation referred to in
subregulation (1). (L.N. 324 of 1994)