(1) Where a salvor has carried out salvage operations in respect of a vessel which, by itself or by virtue of its cargo, threatened damage to the environment and the salvor failed to earn a reward under this Part equivalent at least to the special compensation assessable under subsection (2) the salvor shall be entitled to special compensation from the owner of that vessel equivalent to the salvor's expenses as defined in subsection (3).
(2) Where in the circumstances set out in subsection (1), the salvor by his or her salvage operations has prevented or minimised damage to the environment, the special compensation payable by the owner to the salvor under subsection (1) may be increased up to a maximum of 30% of the expenses incurred by the salvor; and the court or person determining the award may, where the court or the person deems it fair and just, increase such special compensation further; bearing in mind the criteria set out in section 388; but in no event shall the total increase be more than 100% of the expenses incurred by the salvor.
(3) For the purposes of subsection (1) and (2), “salvor's expenses” means 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 or employed in the salvage operation, taking into consideration the criteria set out in paragraphs of section 388(h), 388(i) and 388(j).
(4) The total special compensation assessable under this section shall be paid only if and to the extent that such compensation is greater than any reward recoverable under section 388.
(5) Where the salvor, in carrying out the salvage operations, has acted negligently and has thereby failed to prevent or minimise damage to the environment, the salvor may be deprived of the whole or a part of any special compensation payable under this section.
(6) This section shall not affect any right of recourse available to the owner of the vessel.