(1)  On receipt of the Forestry corporation's certification under section 16E(2) , the Minister becomes liable to pay compensation to the holder of the forestry compensation certificate to which the certification relates in accordance with this Part.

(2)  Subject to subsections (3) and (4) , the amount of compensation referred to in subsection (1) is the amount of damages that would have been payable by the Forestry corporation if the non-supply of the quantity of logs referred to in section 16E(4)(f) for the period referred to in section 16E(4)(g) in accordance with the terms of the wood supply contract had constituted a breach of contract by the Forestry corporation.

(3)  Subsection (2) applies only to the extent that the non-supply referred to in that subsection occurs as a result of the circumstances referred to in paragraph (a) or (b) of section 16E(2) .

(4)  For the purposes of subsection (2) , the following matters are to be disregarded when calculating compensation:

(a) any agreement between the holder of the forestry compensation certificate and the Forestry corporation that limits the damages payable for a breach of the wood supply contract;

(b) any agreement between the holder of the forestry compensation certificate and the Forestry corporation to pay an agreed amount of damages for a breach of the wood supply contract.

(5)  A holder of a forestry compensation certificate entitled to compensation in accordance with this Part and the Forestry corporation must take all reasonable steps to minimise the loss or damage referred to in subsection (2) .