(a) a regulation provides for the dissolution
of a category 2 water authority (the
"old entity" ) under section 691(1) (b) ; and
(b) immediately before the
dissolution, the old entity is the holder of a distribution operations licence
(the
"DOL" ).
(2) The regulation must identify a document (the
"old entity document" ) held by the old entity and available for public access
on the old entity’s website before the dissolution.
(a) the distribution arrangements for
water distributed under the DOL by the old entity; and
(b) the financial
obligations, arising from the distribution arrangements, of the holder of any
water allocation to whom water is distributed under the DOL.
(4) The
old entity document must fairly represent the distribution arrangements and
financial obligations as in place before the dissolution of the old entity.
(5) The old entity document may include additional provisions to facilitate
implementing the arrangements and meeting the obligations, but the additional
provisions must not be capable of operating to the detriment, in substance, of
an allocation holder after the dissolution of the old entity.
(6) After the
dissolution of the old entity, the old entity document has effect as a
contract (the
"distribution contract" ), relating to the distribution of water under the
DOL, between—
(a) any entity that becomes the DOL holder; and
(b) the
holder of each water allocation to whom water—
(i) was distributed under the
DOL immediately before the dissolution; and
(ii) continues to be distributed
under the DOL.
(7) Subsection (8) applies if—
(a) a new water allocation
comes into existence after the old entity is dissolved; and
(b) water is or
is to be distributed to the holder of the new water allocation under the DOL;
and
(c) a document, in the form of a contract, is held by the DOL holder as a
document available for public access on the DOL holder’s website; and
(d)
the document relates to the distribution of water under the DOL to the holders
of water allocations that are similar in type to the new water allocation.
(8) The document has effect as a contract (also a
"distribution contract" ) between—
(a) the DOL holder; and
(b) the holder
of the new water allocation.
(9) The distribution contract applying to a
water allocation has effect subject to any change agreed to by the DOL holder
and the water allocation holder.
(10) If the holder of a water allocation the
subject of a distribution contract transfers or leases the water allocation to
another person, the other person is bound by the distribution contract as in
force between the DOL holder and the water allocation holder immediately
before the transfer or lease.
