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3Where the abstraction, diversion and use will, in the opinion of the Secretary of State—
(a)substantially reduce the flow of water in any watercourse, he shall in the order prescribe the extent to which and the circumstances in which water may be taken;
(b)substantially reduce the level of water in any loch, he shall in the order either—
(i)prescribe the extent to which and the circumstances in which water may be taken; or
(ii)prescribe the quantity of compensation water to be provided by the person;
(c)impound any watercourse, be shall in the order prescribe the quantity of compensation water to be provided by the person.
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