(1) A salvor is entitled to special compensation equivalent to the expenses of the salvor from the owner of a vessel where the salvor has carried out salvage operations in respect of the vessel itself or its cargo which was a threat to the environment and has failed to earn a reward under this Part which is equivalent to the special compensation assessable under subsections (2) and (3) or as defined in subsection (4).

(2) Where in the circumstances stated in subsection (1), the salvor has by salvage operations prevented or minimized 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 thirty percent of the expenses incurred by the salvor.

(3) A court or a person determining the award may where it is considered fair and just increase the special compensation, bearing in mind the criteria set out in section 382; but in no event shall the total increase be more than one hundred percent of the expenses incurred by the salvor.

(4) For the purposes of this section "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 in the salvage operation, taking into consideration the criteria set out in paragraphs (h), (i) and (j) of section 382.

(5) The total special compensation assessable under this section shall be paid only if and to the extent that the compensation is greater than any reward recoverable under section 382.

(6) Where the salvor, in carrying out the salvage operations, has acted negligently and failed to prevent or minimize damage to the environment, the salvor may be deprived of the whole or a part of any special compensation payable under this section.

(7) Nothing in this section shall affect any right of other recourse available to the owner of the vessel.