This section applies where—
in pursuance of provision made by a tree preservation order, a direction is given by the local planning authority or the Secretary of State for securing the replanting of all or any part of a woodland area which is felled in the course of forestry operations permitted by or under the order; and
the Natural Resources Body for Wales decide not to make any grant or loan under article 10B of the Natural Resources Body for Wales (Establishment) Order 2012 (S.I.2012/1903) in respect of the replanting by reason that the direction frustrates the use of the woodland area for the growing of timber or other forest products for commercial purposes and in accordance with the rules or practice of good forestry.
Where this section applies, the local planning authority exercising functions under the tree preservation order shall be liable, on the making of a claim in accordance with this section, to pay compensation in respect of such loss or damage, if any, as is caused or incurred in consequence of compliance with the direction.
The Natural Resources Body for Wales shall, at the request of the person under a duty to comply with such a direction as is mentioned in subsection (1)(a), give a certificate stating—
whether they have decided not to make such a grant or loan as is mentioned in subsection (1)(b), and
if so, the grounds for their decision.
A claim for compensation under this section must be served on the local planning authority—
within 12 months from the date on which the direction was given, or
where an appeal has been made to the Secretary of State against the decision of the local planning authority, within 12 months from the date of the decision of the Secretary of State on the appeal,
but subject in either case to such extension of that period as the local planning authority may allow.