Section 392: Special compensation for salvage operation

(1)
Where a salvor has carried out salvage operations in respect of a vessel which by itself or its cargo threatened damage to the environment and the salvor failed to earn a reward under section 392 of this Act, which is at least equivalent to the special compensation assessed in accordance with this section, the salvor shall be entitled to special compensation from the owner of the vessel, equivalent to the expenses as defined in this section.
(2)
Where in the circumstances set out in subsection (1) of this section, the salvor by his salvage operation prevented or minimized damage to the environment, the special compensation payable by the owner to the salvor under subsection (1) of this section may be increased to a minimum of 30 per cent of the expenses incurred by the salvor but the court may if it deems it fair and just and bearing in mind the criteria set out in section 392 subsection (1) of this Act, increase the compensation further, but in no event shall the total increase be more than 100 per cent of the expenses incurred by the salvor.
(3)
The expenses of a salvor for the purposes of subsections (1) and (2) of this section, is the out-of-pocket expenses reasonably incurred by the salvor in the salvage operation and a fair rate for equipment and personnel actually and reasonably used in the salvage operations, taking the criteria prescribed in subsections (1) (h) (i) and (j) of section 392 of this Act into consideration.
(4)
The total compensation under this section shall be paid only if and to the extent that the compensation is greater than any reward recoverable by the salvor under section 392 of this Act.
(5)
Where the salvor has been negligent and has by such negligence failed to prevent or minimize damage to the environment, the salvor may be deprived of the whole or part of any special compensation due to him under this section.
(6)
Nothing in this section shall affect any right of recourse on the part of the owner of the vessel.