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This is a Bill, not an Act. For current law, see the Acts databases.
PARLIAMENT OF VICTORIA
Murray-Darling Basin (Amendment) Act 2002
Act No.
TABLE OF PROVISIONS
Clause Page
1. Purpose 1
2. Commencement 2
3. Definition of "Agreement" 2
4. New section 5A inserted 2
5A. Approval of Amending Agreement 2
5. Heading to the Schedule substituted 2
6. New Schedule 2 inserted 3
ENDNOTES 33
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PARLIAMENT OF VICTORIA
Initiated in Assembly 12 September 2002
A BILL
to amend the Murray-Darling Basin Act 1993 and for other
purposes.
Murray-Darling Basin (Amendment)
Act 2002
The Parliament of Victoria enacts as follows:
1. Purpose
The purpose of this Act is to amend the
Murray-Darling Basin Act 1993 to approve and
give effect to an agreement between the
5 Commonwealth, New South Wales, Victoria and
South Australia to amend the Murray-Darling
Basin Agreement.
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2. Commencement
This Act comes into operation on a day to be
proclaimed.
See: 3. Definition of "Agreement"
Act No.
39/1993 as
5 In section 3(1) of the Murray-Darling Basin Act
amended by
1993--
Act No.
74/2000.
(a) for the definition of "Agreement"
LawToday:
www.dms.
substitute--
dpc.vic.
gov.au
' "Agreement" means the agreement, a copy
10 of which is set out in Schedule 1, as the
agreement is--
(a) deemed to be amended from time
to time under clause 50 or 134 of
the agreement; and
15 (b) amended by the Amending
Agreement;';
(b) insert the following definition--
' "Amending Agreement" means the
agreement a copy of which is set out in
20 Schedule 2;'.
4. New section 5A inserted
After section 5 of the Murray-Darling Basin Act
1993 insert--
"5A. Approval of Amending Agreement
25 The Amending Agreement is approved.".
5. Heading to the Schedule substituted
In the heading to the Schedule to the Murray-
Darling Basin Act 1993, for "The Schedule"
substitute "Schedule 1".
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6. New Schedule 2 inserted
After Schedule 1 to the Murray-Darling Basin
Act 1993 insert--
'SCHEDULE 2
5 MURRAY-DARLING BASIN AMENDING AGREEMENT
The Murray-Darling Basin Amending Agreement made the third day of June
two thousand and two.
BETWEEN
THE COMMONWEALTH OF AUSTRALIA (the "Commonwealth")
10 THE STATE OF NEW SOUTH WALES ("New South Wales")
THE STATE OF VICTORIA ("Victoria")
THE STATE OF SOUTH AUSTRALIA ("South Australia")
WHEREAS on 24 June 1992 the Commonwealth, New South Wales, South
Australia and Victoria entered into the Murray-Darling Basin Agreement
15 which was ratified by the Parliament of the Commonwealth and the
Parliaments of the said States and subsequently amended (the "Principal
Agreement");
AND WHEREAS under the provisions of clause 134 of the Principal
Agreement the State of Queensland ("Queensland") became a party to the
20 Principal Agreement on the terms and conditions set out in Schedule D to
the Principal Agreement;
AND WHEREAS clause 3 of Schedule D provides that certain provisions of
the Principal Agreement do not apply to Queensland;
AND WHEREAS the Commonwealth, New South Wales, South Australia
25 and Victoria wish to:
(a) amend certain provisions of the Principal Agreement which do
not apply to Queensland; and
(b) add a further Schedule G to the Principal Agreement, which will
not apply to Queensland,
30 to make new arrangements for sharing water made available in the River
Murray catchment above Hume Dam by the Snowy Scheme;
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THE PARTIES AGREE AS FOLLOWS
(1) In the following clauses of this Agreement, "the Agreement"
means the Principal Agreement.
(2) Clause 2 of the Agreement is amended--
5 (a) by omitting the definition of "Authority";
(b) by inserting the following definition--
"natural flow" means the quantity of water that would have
flowed in a river past a particular point in a particular
period but for the effect during that period of diversions
10 to or from, and impoundments on, the river upstream of
that point;";
(c) by omitting the definition of "period of restriction"; and
(d) by omitting the definition of "Snowy Mountains Agreement".
(3) Clause 46 of the Agreement is amended by adding the following
15 sub-clause--
"(4) Despite sub-clause 46(3), sub-clauses 46(1) and 46(2)
apply to any proposal referred to in clause 24 of
Schedule G.".
(4) Clause 91 of the Agreement is amended as follows--
20 (a) by omitting paragraph (b) of sub-clause (1) and inserting the
following paragraph in its stead--
"(b) half the natural flow at Doctors Point;"; and
(b) by deleting from paragraph (c) of sub-clause (1) the word
"and"; and
25 (c) by inserting in paragraph (d) of sub-clause (1), after the word
"Point" the word "and"; and
(d) by adding to sub-clause (1) a paragraph--
"(e) half of the volume of water calculated in accordance
with clause 8 of Schedule G.".
30 (5) Clause 98 of the Agreement is amended--
(a) by omitting paragraph (d) and inserting the following
paragraph in its stead--
"(d) the estimated natural flow of the River Murray at
Doctors Point before the end of the following May;";
35 and
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(b) by omitting paragraph (e) and inserting the following
paragraph in its stead--
"(e) water calculated in accordance with clause 9 of
Schedule G;".
5 (6) Clause 103 of the Agreement is amended by omitting sub-clause (1)
and inserting the following sub-clause in its stead--
"(1) In respect of any period--
(a) the natural flow of the River Murray at Doctors
Point; and
10 (b) the volume of water calculated in accordance with
clause 10 of Schedule G,
must be allocated between New South Wales and Victoria
as provided in sub-clause 103(2).".
(7) Clause 105 of the Agreement is amended--
15 (a) by inserting the number "(1)" after the number "105"; and
(b) by adding the following sub-clauses--
"(2) The volume of water calculated in accordance with sub-
clause 11(1) of Schedule G is allocated to New South
Wales.
20 (3) The volume of water calculated in accordance with sub-
clause 11(2) of Schedule G is allocated to Victoria.".
(8) Clause 106 of the Agreement is omitted and the following clause
inserted in its stead--
"106. New South Wales and Victoria are respectively deemed to
25 use the quantity of water--
(a) diverted from the upper River Murray by an offtake
under the jurisdiction of that State, unless the
Commission determines otherwise; and
(b) calculated under sub-clause 12(1) of Schedule G, in
30 the case of New South Wales; and
(c) calculated under sub-clause 12(2) of Schedule G, in
the case of Victoria.".
(9) Clause 107 of the Agreement is omitted.
(10) Clause 112 of the Agreement is omitted.
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(11) Clause 122 of the Agreement is amended by omitting sub-
clause (3).
(12) Part XII of the Agreement is amended by omitting from the heading
of that Part the words "MOUNTAINS AGREEMENT" and
5 inserting in their stead the word "SCHEME".
(13) Clause 132 of the Agreement is deleted and the following clause
inserted in its stead--
"132. The Commission must determine the respective allocations
to New South Wales and Victoria of water made available
10 from the Snowy Scheme for the purposes of this
Agreement, in the manner set out in Schedule G.".
(14) The Agreement is amended by inserting after Schedule F the
following new Schedule--
SCHEDULE G
15 EFFECT OF SNOWY SCHEME
PART I: PRELIMINARY
1. Purpose
The purpose of this Schedule is to make arrangements for
sharing between New South Wales, South Australia and
20 Victoria of water made available in the catchment of River
Murray above Hume Dam by the Snowy Scheme.
2. Definitions
In this Schedule:
(1) "Baseline Conditions" means:
25 (a) the infrastructure supplying water;
(b) the rules for allocating water and for water
management systems applying;
(c) the operating efficiency of water management
systems; and
30 (d) existing entitlements to take and use water and the
extent to which those entitlements were used,
within the Murray-Darling Basin as at the
Corporatisation Date;
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(2) "Corporatisation Date" means the date on which the
Snowy Mountains Hydro-electric Power Act 1949
(Cth) is repealed by the Snowy Hydro Corporatisation
Act 1997 (Cth);
5 (3) "Environmental Entitlement" means:
(a) a category of environmental water referred to in
section 8 of the Water Management Act 2000
(NSW); and
(b) a bulk entitlement granted under the Water Act
10 1989 (Vic) that includes conditions relating to
environmental purposes;
in both cases comprising a volume of water derived
from either or both of Water Savings and Water
Entitlements;
15 (4) "Goulburn River System" means the Broken, Goulburn,
Campaspe and Loddon Rivers and the water supply
systems supplied by those rivers;
(5) "Licensee" means the licensee under the Snowy Water
Licence;
20 (6) "Long Term Diversion Cap" means the long term
diversion cap for the State of New South Wales or the
State of Victoria under clauses 4 and 5 respectively of
Schedule F;
(7) "Lower Darling River System" means the Darling River
25 and its anabranch system from the upstream extent of
the Menindee Lakes Storage and downstream and the
water supply systems supplied by that River;
(8) "Month" means calendar month and "Monthly" means
each calendar month;
30 (9) "Mowamba Borrowings Account" means the water
account to be maintained by the Licensee under the
Snowy Water Licence to account for flows made
under the Snowy Water Licence from the Mowamba
River and Cobbon Creek in the first three years after
35 the Corporatisation Date;
(10) "Murrumbidgee River System" means the Murrumbidgee
River and the water supply systems supplied by that
river;
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(11) "Relaxation Volume" has the same meaning as in the
Snowy Water Licence as at the Corporatisation Date;
(12) "Reliability" with respect to a supply of water means the
statistical probability of being able to supply a
5 particular volume in any Water Year;
(13) "Required Annual Release" has the same meaning as in
the Snowy Water Licence taken as a whole as at the
Corporatisation Date. For the avoidance of doubt,
"Required Annual Release" is not a reference to
10 "Agreed Annual Release" under that Licence and a
change to the Snowy Water Licence after the
Corporatisation Date will not affect the calculation of
Required Annual Releases for the purposes of this
Schedule;
15 (14) "Required Annual Release Shortfall" means, in any
Water Year, the volume by which the Required
Annual Release from the Snowy-Murray
Development in that Water Year exceeds the actual
release from the Snowy Scheme to the catchment of
20 the River Murray upstream of Hume Dam in that
Water Year;
(15) "River Murray Above Target Releases" means, in any
Water Year, water that is released from the Snowy
Scheme to the catchment of the River Murray
25 upstream of Hume Dam in excess of the Required
Annual Release from the Snowy-Murray
Development in that Water Year;
(16) "River Murray Annual Allocation" with respect to each
Water Year means the annual allocation from the
30 River Murray Apportioned Entitlement determined by
New South Wales;
(17) "River Murray Apportioned Entitlement" means the
volume of water from the Environmental
Entitlements that is apportioned to the River Murray
35 Increased Flows by New South Wales;
(18) "River Murray Increased Flows" means releases of water
from major storages made by the Commission in
accordance with Part V of this Schedule;
(19) "River Murray Increased Flows Accounts" means the
40 water accounts to be maintained by the Commission
under clause 21 of this Schedule;
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(20) "River Murray Increased Flows in Commission Storages
Account" means the water account to be maintained
by the Commission under paragraph 21(1)(b) of this
Schedule;
5 (21) "River Murray System" means the aggregate of:
(a) the River Murray;
(b) all tributaries entering the River Murray upstream
of Doctors Point;
(c) the Ovens River; and
10 (d) the Lower Darling River System;
(22) "Seasonal Availability" with respect to the water to which
an entitlement refers means:
(a) for that part of the entitlement whose availability
is determined by reference to seasonal allocations:
15 the final seasonal allocation announcement of the
relevant State during the previous Water Year;
and
(b) for that part of the entitlement whose availability
is determined by reference to the entitlement of
20 South Australia: the allocated volume received
during the previous Water Year by South
Australia as a proportion of its entitlement during
that Water Year under this Agreement;
(23) "Snowy Montane Rivers External Increased Flows"
25 means releases of water made by the Licensee to
montane rivers under the environmental flow
requirements of the Snowy Water Licence which
would have flowed through either:
(a) the Murray 1 Power Station in the case of the
30 Snowy-Murray Development; or
(b) Jounama Pondage in the case of the Snowy-Tumut
Development,
if it were not released for environmental purposes;
(24) "Snowy-Murray Development" means the component of
35 the Snowy Scheme comprising works that regulate
the waters of the Upper Snowy River, the Geehi River
and Bogong Creek;
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(25) "Snowy-Murray Development Annual Allocation"
means the annual allocation for any Water Year for
the Snowy-Murray Development determined by New
South Wales by reference to the Seasonal Availability
5 of the water contained in the Snowy-Murray
Development Designated Entitlement;
(26) "Snowy-Murray Development Designated Entitlement"
means that part of the Environmental Entitlements
designated against the Snowy-Murray Development
10 by New South Wales;
(27) "Snowy-Murray Development (River Murray)
Environmental Entitlements" means both:
(a) a category of environmental water referred to in
section 8 of the Water Management Act 2000
15 (NSW); and
(b) a bulk entitlement granted under the Water Act
1989 (Vic) that includes conditions relating to the
protection of the environment,
in both cases comprising a volume of water derived
20 from either or both of Water Savings and Water
Entitlements sourced from the River Murray System
or the Goulburn River System;
(28) "Snowy Notional Spill" means:
(a) in the case of the Snowy-Murray Development:
25 the calculated active volume of water belonging to
the Snowy-Murray Development stored in
Eucumbene Reservoir exceeding 2,019 GL and
accounted as a loss from the Snowy-Murray
Development and a gain to the Snowy-Tumut
30 Development;
(b) in the case of Snowy-Tumut Development: the
calculated active volume of water belonging to the
Snowy-Tumut Development stored in Eucumbene
Reservoir exceeding 2,348 GL and accounted as a
35 loss from the Snowy-Tumut Development and a
gain to the Snowy-Murray Development;
(29) "Snowy River" means the Snowy River downstream of
Jindabyne Dam;
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(30) "Snowy River Annual Allocation" means the annual
allocation from the Snowy River Apportioned
Entitlement for any Water Year, determined by New
South Wales;
5 (31) "Snowy River Apportioned Entitlement" means the
volume of water from the Environmental
Entitlements apportioned to environmental flows
from the Snowy Scheme to the Snowy River, by New
South Wales;
10 (32) "Snowy Scheme" means the dams, tunnels, power stations,
aqueducts and other structures that comprise the
Snowy-Murray Development and the Snowy-Tumut
Development, that together are known as the Snowy
Mountains Hydro-electric Scheme;
15 (33) "Snowy-Tumut Development" means the component of
the Snowy Scheme comprising works that regulate
the waters of the Eucumbene River, the Tooma River,
the Upper Murrumbidgee River and the Upper Tumut
River;
20 (34) "Snowy-Tumut Development Annual Allocation" with
respect to each Water Year means the annual
allocation for the Snowy-Tumut Development
determined by New South Wales by reference to the
Seasonal Availability of the water contained in the
25 Snowy-Tumut Development Designated Entitlement;
(35) "Snowy-Tumut Development Designated Entitlement"
means that part of the Environmental Entitlements
designated against the Snowy-Tumut Development by
New South Wales;
30 (36) "Snowy Water Licence" means the licence issued under
Part 5 of the Snowy Hydro Corporatisation Act 1997
(NSW);
(37) "Strategy" means the strategy for retaining and releasing
River Murray Increased Flows determined under
35 paragraph 20(1)(a) of this Schedule;
(38) "Translation Factors" means the translation factors used
to convert Water Savings and Water Entitlements
into an Environmental Entitlement with specified
Reliability;
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(39) "Upper Snowy River" means the Snowy River upstream
of Jindabyne Dam (including the Mowamba River
and the Cobbon Creek) but excluding the Eucumbene
River;
5 (40) "Water Entitlement" means:
(a) an access licence granted under the Water
Management Act 2000 (NSW); and
(b) a water right, licence to take and use water or bulk
entitlement under the Water Act 1989 (Vic)
10 together with any transferable allocation of sales
water made to the holder of such a water right or
licence,
in either case purchased for the purpose of achieving
either or both of:
15 (c) environmental flows from the Snowy Scheme; and
(d) River Murray Increased Flows;
(41) "Water Market" means, with respect to a Water
Entitlement, the market from which the relevant
Water Entitlement is drawn;
20 (42) "Water Savings" means the volume of water saved
through one or more projects that saves water:
(a) by reducing transmission losses, evaporation or
system inefficiencies; or
(b) by achieving either or both of water management
25 and environmental improvements,
for diversions from the River Murray System and
either or both of Murrumbidgee River System and the
Goulburn River System for the purpose of achieving:
(c) environmental flows from the Snowy Scheme; and
30 (d) River Murray Increased Flows;
(43) "Water Year" means the period of 12 Months
commencing on 1 May in each year.
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PART II: CALCULATING WATER VOLUMES
3. The Snowy Scheme And The River Murray
(1) In this Agreement, "Water Available to the
Snowy-Murray Development" means:
5 Water of the Upper Snowy River regulated
by the Snowy Scheme
PLUS water of the Geehi River and Bogong Creek
regulated by the Snowy Scheme
PLUS any Snowy Notional Spill from the Snowy-
10 Tumut Development to the Snowy-Murray
Development
PLUS the transfer from the Snowy-Tumut
Development to the Snowy-Murray
Development of the Snowy-Tumut
15 Development Annual Allocation
PLUS 4.5 GL per Water Year transferred from the
Snowy-Tumut Development to the Snowy-
Murray Development
PLUS half of the balance of the Mowamba
20 Borrowings Account
MINUS any Snowy Notional Spill from the Snowy-
Murray Development to the Snowy-Tumut
Development.
(2) In this Agreement, "Net Snowy-Murray Development
25 Diversions to the River Murray" means the volume of
water calculated as follows:
Water Available to the Snowy-Murray
Development released by the Snowy Scheme
to the catchment of the River Murray
30 upstream of Hume Dam
MINUS the water of the Tooma River regulated by
the Snowy Scheme
MINUS the natural flows of the Geehi River and
Bogong Creek regulated by the Snowy
35 Scheme.
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(3) In this Agreement, "Murray to Murrumbidgee Inter-
Valley Transfer" means the volume of Water Available to
the Snowy-Murray Development released by the Snowy
Scheme to the catchment of the Murrumbidgee River.
5 4. The Snowy Scheme And The Murrumbidgee River
(1) In this Agreement, "Water Available to the Snowy-
Tumut Development" means:
The water of the Eucumbene River, the
Tooma River, the Upper Murrumbidgee
10 River and the Upper Tumut River regulated
by the Snowy Scheme
PLUS any Snowy Notional Spill from the Snowy-
Murray Development to the Snowy-Tumut
Development
15 MINUS half of the balance of the Mowamba
Borrowings Account
MINUS any Snowy Notional Spill from the Snowy-
Tumut Development to the Snowy-Murray
Development
20 MINUS the transfer from the Snowy-Tumut
Development to the Snowy-Murray
Development of the Snowy-Tumut
Development Annual Allocation
MINUS 4.5 GL per Water Year transferred from the
25 Snowy-Tumut Development to the Snowy-
Murray Development.
(2) In this Agreement, "Murrumbidgee to Murray Inter-
Valley Transfer" means the volume of Water Available to
the Snowy-Tumut Development released by the Snowy
30 Scheme to the catchment of the River Murray upstream of
Hume Dam.
5. Excess Snowy River Releases
In this Agreement, "Excess Snowy River Releases" means
the greater of zero and the volume of water calculated as
35 follows:
The regulated releases made to the Snowy
River in the relevant Water Year, measured
immediately below the confluence of the
Snowy River and the Mowamba River
40 MINUS 9 GL
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MINUS the Snowy River Annual Allocation in the
relevant Water Year
MINUS the change in the balance of the Mowamba
Borrowings Account during the relevant
5 Water Year.
6. Snowy River Release Shortfalls
In this Agreement, "Snowy River Release Shortfalls"
means the greater of zero and the volume of water
calculated as follows:
10 The Snowy River Annual Allocation in the
relevant Water Year
PLUS 9 GL
PLUS the change in the balance of the Mowamba
Borrowings Account from the
15 commencement to the end of the relevant
Water Year
MINUS the regulated releases made to the Snowy
River in the relevant Water Year, measured
immediately below the confluence of the
20 Snowy River and the Mowamba River.
7. Accounting For Water Releases
For the purposes of this Agreement, water releases from the
Snowy-Murray Development to the catchment of the River
Murray upstream of Hume Dam are to be accounted as:
25 (1) water releases as at Murray 1 Power Station; and
(2) any water that would have passed through the
Murray 1 Power Station but does not:
(a) for operational reasons; or
(b) because it is released from the Snowy Scheme
30 as Snowy Montane Rivers External Increased
Flows,
and that flows into the catchment of the River
Murray upstream of Hume Dam.
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PART III: WATER ACCOUNTING
8. Entitlements Of New South Wales And Victoria To Use Water
The volume of water referred to in paragraph 91(1)(e) of
the Agreement is calculated as follows:
5 The Net Snowy-Murray Development
Diversions to the River Murray
PLUS Murray to Murrumbidgee Inter-Valley
Transfers
PLUS the Required Annual Release Shortfall
10 PLUS the Snowy-Murray Development Annual
Allocation
PLUS Excess Snowy River Releases in excess of
the volume of the Snowy River Release
Shortfall in the previous Water Year
15 MINUS At the discretion of the Commission,
Murrumbidgee to Murray Inter-Valley
Transfers
MINUS the Required Annual Release Shortfall from
the previous Water Year
20 MINUS River Murray Above Target Releases
allocated to the River Murray Increased
Flows received by Hume Reservoir.
9. Water Estimated To Be Under The Control Of The Commission
Water referred to in paragraph 98(e) of the Agreement is
25 estimated as follows:
The Net Snowy-Murray Development
Diversions to the River Murray
PLUS Murray to Murrumbidgee Inter-Valley
Transfers
30 PLUS the Required Annual Release Shortfall
PLUS the Snowy-Murray Development Annual
Allocation
PLUS Excess Snowy River Releases in excess of
the volume of the Snowy River Release
35 Shortfall in the previous Water Year
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MINUS at the discretion of the Commission,
Murrumbidgee to Murray Inter-Valley
Transfers
MINUS the Required Annual Release Shortfall from
5 the previous Water Year
MINUS River Murray Above Target Releases
allocated to the River Murray Increased
Flows received by Hume Reservoir,
in each case before the end of the following May.
10 10. Allocation of Water to New South Wales and Victoria
The volume of water referred to in paragraph 103(1)(b) of
the Agreement is calculated as follows:
The Net Snowy-Murray Development
Diversions to the River Murray
15 PLUS Murray to Murrumbidgee Inter-Valley
Transfers
PLUS the Required Annual Release Shortfall
PLUS the Snowy-Murray Development Annual
Allocation
20 PLUS Excess Snowy River Releases in excess of
the volume of the Snowy River Release
Shortfall in the previous Water Year
MINUS at the discretion of the Commission,
Murrumbidgee to Murray Inter-Valley
25 Transfers
MINUS the Required Annual Release Shortfall from
the previous Water Year
MINUS River Murray Above Target Releases
allocated to the River Murray Increased
30 Flows received by Hume Reservoir.
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11. Tributary Inflows
(1) The volume of water referred to in sub-clause 105(2) of the
Agreement is calculated as follows:
The component of the Required Annual
5 Release Shortfall from the previous Water
Year allocated to New South Wales under
sub-clause 13(2) of this Schedule
PLUS half of the River Murray Above Target
Releases allocated to the River Murray
10 Increased Flows received by Hume Reservoir
PLUS half of the Excess Snowy River Release up
to the volume of half of the Snowy River
Release Shortfall in the previous Water Year
for which an adjustment was made under
15 sub-clauses 11(2) and 12(1) of this Schedule
in the previous Water Year
PLUS at the discretion of the Commission,
Murrumbidgee to Murray Inter-Valley
Transfers.
20 (2) The volume of water referred to in sub-clause 105(3) of the
Agreement is calculated as follows:
The component of the Required Annual
Release Shortfall from the previous Water
Year allocated to Victoria under sub-
25 clause 13(2) of this Schedule
PLUS half of the River Murray Above Target
Releases allocated to the River Murray
Increased Flows received by Hume Reservoir
PLUS half of the Snowy River Release Shortfall,
30 unless Victoria has previously advised the
Commission that Victoria waives this
element of its allocation in any Water Year.
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12. Use By New South Wales And Victoria Of Allocated Water
(1) The quantity of water referred to in paragraph 106(b) of the
Agreement is calculated as follows:
Murray to Murrumbidgee Inter-Valley
5 Transfers
PLUS Excess Snowy River Releases in excess of
the volume of the Snowy River Release
Shortfall in the previous Water Year
PLUS the Snowy-Murray Development Annual
10 Allocation sourced from New South Wales
PLUS the component of the Required Annual
Release Shortfall allocated to New South
Wales under sub-clause 13(1) of this
Schedule
15 PLUS unless otherwise agreed with Victoria, half
of the Snowy River Release Shortfall.
(2) The quantity of water referred to in paragraph 106(c) of the
Agreement is calculated as follows:
The Snowy-Murray Development Annual
20 Allocation sourced from Victoria
PLUS the component of the Required Annual
Release Shortfall allocated to Victoria under
sub-clause 13(1) of this Schedule
PLUS half of the Excess Snowy River Release up
25 to the volume of half of the Snowy River
Release Shortfall in the previous Water Year
for which an adjustment was made under
sub-clauses 11(2) and 12(1) of this Schedule
in the previous Water Year, (such
30 adjustments to reflect any waiver or
agreement with Victoria as referred to in
those sub-clauses).
13. Required Annual Release Shortfalls
(1) If at the end of a Water Year there is a Required Annual
35 Release Shortfall, the Required Annual Release Shortfall is
to be accounted for by the Commission in accordance with
Table One.
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TABLE ONE: WATER ACCOUNTING AND
REQUIRED ANNUAL RELEASE SHORTFALLS
ARRANGEMENT
WITH RESPECT
TO REQUIRED
TYPE OF ANNUAL WATER
WATER RELEASE ACCOUNTING
YEAR SHORTFALL OUTCOMES
Water Year Victoria agrees to New South
during which a the Required Wales and
period of special Annual Release Victoria
accounting is Shortfall deemed to each
not in effect have used the
Required
Annual Release
Shortfall as
agreed
Victoria does not New South
agree to the Wales deemed
Required Annual to have used the
Release Shortfall whole of the
Required
Annual Release
Shortfall
Water Year Victoria and the New South
during which a Commission Wales and
period of special agree to the Victoria
accounting is in Required Annual deemed to each
effect Release Shortfall have used the
Required
Annual Release
Shortfall as
agreed
The Commission New South
does not agree to Wales deemed
the Required to have used the
Annual Release whole of the
Shortfall Required
Annual Release
Shortfall
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(2) The volume of any Required Annual Release Shortfall from
the previous Water Year must be allocated equally between
New South Wales and Victoria until the balance of
Required Annual Release Shortfalls for either State is zero
5 and thereafter wholly to the other State.
14. Other Water Accounting Provisions
(1) Where under this Schedule the Commission is required to
adjust accounts in connection with the Snowy-Murray
Development Annual Allocation, it must make those
10 adjustments in equal Monthly quantities.
(2) Where under this Schedule the Commission is required to
adjust accounts in connection with inter-valley transfer, it
must make those adjustments in equal Monthly quantities
during the balance of the Water Year in which New South
15 Wales notifies the Commission of the relevant inter-valley
transfer.
(3) Each release of River Murray Increased Flows must be
allocated half to New South Wales and half to Victoria.
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PART IV: SNOWY-MURRAY DEVELOPMENT (RIVER
MURRAY) ENVIRONMENTAL ENTITLEMENTS
15. Translation Factors
(1) New South Wales and Victoria must each transfer Water
5 Savings and Water Entitlements to its respective Snowy-
Murray Development (River Murray) Environmental
Entitlement in accordance with Translation Factors agreed
between each of them and the Commission.
(2) New South Wales, Victoria and the Commission must
10 ensure that:
(a) the Translation Factors are determined in a manner
consistent with the principles used to determine
exchange rates in the relevant Water Market at the
time of each transfer under sub-clause 18(2) of this
15 Schedule; and
(b) the use of Translation Factors to transfer Water
Savings and Water Entitlements to a Snowy-Murray
Development (River Murray) Environmental
Entitlement will not have a significant adverse
20 impact on:
(i) the level of Reliability of entitlements to water
diverted from the River Murray System, the
Murrumbidgee River System and the Goulburn
River System;
25 (ii) the environmental benefits related to the
quantity and timing of water flows for
environmental purposes in the River Murray
System, the Murrumbidgee River System and
the Goulburn River System;
30 (iii) the Seasonal Availability of the entitlement to
be received during that Water Year by South
Australia under this Agreement; and
(iv) water quality in the River Murray in South
Australia.
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16. Apportionment Of Environmental Entitlements
New South Wales and Victoria must notify the Commission
of how each Environmental Entitlement has been
apportioned between:
5 (1) the Snowy River Apportioned Entitlement; and
(2) the River Murray Apportioned Entitlement.
17. Valley Accounts
If:
(1) New South Wales or Victoria transfers either or both
10 of Water Savings and Water Entitlements to an
Environmental Entitlement; and
(2) the source of that water is from a valley for which the
Commission maintains a valley account,
New South Wales or Victoria (as the case may be) must
15 notify the Commission of the volume and reliability of the
entitlement required to be added to the relevant valley
account to generate the Environmental Entitlement.
18. Long Term Diversion Caps
(1) Prior to New South Wales or Victoria transferring either or
20 both of Water Savings and Water Entitlements to an
Environmental Entitlement, the relevant State must
calculate the equivalent volume by which its Long Term
Diversion Cap must be reduced.
(2) If New South Wales or Victoria transfers either or both of
25 Water Savings and Water Entitlements to an
Environmental Entitlement, at the same time the relevant
State must advise the Commission of its calculation as to
the volume by which its Long Term Diversion Cap must be
reduced.
30 (3) If the Commission is satisfied with the appropriateness of a
calculation advised under sub-clause 18(2), it must
recommend to the Ministerial Council that the relevant
Long Term Diversion Cap be amended in accordance with
the calculation.
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(4) If the Commission is not satisfied with the appropriateness
of a calculation advised under sub-clause 18(2), the
Commission must arrange for the relevant volume referred
to in sub-clause 18(1) to be re-calculated in consultation
5 with the relevant State.
(5) If a majority of the Commissioners is satisfied with the
appropriateness of a calculation made under sub-clause
18(4), the Commission must recommend to the Ministerial
Council that the relevant Long Term Diversion Cap be
10 amended in accordance with the calculation.
(6) Despite paragraph 8(b) of Schedule F, the Ministerial
Council must amend a Long Term Diversion Cap in
accordance with any recommendation made by the
Commission under sub-clause 18(3) or 18(5).
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PART V: RIVER MURRAY INCREASED FLOWS
19. Obligation Of Commission To Make River Murray Increased
Flows
Subject to this Part, the Commission must release River
5 Murray Increased Flows.
20. Environmental Objectives And Strategy For River Murray
Increased Flows
(1) Before the commencement of the second complete Water
Year after the Corporatisation Date, the Ministerial Council
10 must determine:
(a) a strategy for retaining and releasing River Murray
Increased Flows to be implemented by the
Commission; and
(b) the environmental objectives for the River Murray
15 Increased Flows,
in accordance with the provisions of this clause.
(2) The Strategy:
(a) must include a provision to the effect that River
Murray Increased Flows have first priority from
20 River Murray Above Target Releases;
(b) may provide that water credited to the River Murray
Increased Flows in Commission Storages Account
need not be released during the Water Year in which
it is credited;
25 (c) unless the Ministerial Council otherwise determines,
must not have a significant adverse impact upon the
security of entitlements to water;
(d) must integrate the environmental objectives for the
River Murray Increased Flows with other
30 environmental initiatives on the River Murray;
(e) must include adaptive management principles to allow
the ability to optimise environmental benefits; and
(f) must prescribe appropriate environmental reporting
and monitoring conditions.
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(3) The Ministerial Council must determine the environmental
objectives and Strategy in accordance with the following
principles:
(a) Natural diversity of habitats and biota within the
5 river channel, riparian zone and the floodplain
should be maintained or enhanced.
(b) Natural linkages between the river and the floodplain
should be maintained or enhanced.
(c) Natural metabolic functioning of aquatic ecosystems
10 should be maintained or enhanced.
(d) Elements of the natural flow regime, in particular,
seasonality should be retained or enhanced as far as
possible, in the interests of conserving a niche for
native rather than invasive exotic species and in
15 maintaining the natural functions of the river.
(e) Consistent and constant flow and water level regimes
should be avoided where practical, as this is contrary
to the naturally variable flow regime of the River
Murray.
20 (f) The general principles of ecosystem services should
be recognised.
(g) Environmental benefit should be optimised.
(4) The Ministerial Council may from time to time by
resolution amend the environmental objectives and the
25 Strategy.
(5) As soon as practicable after the end of each Water Year, the
Commission must report to the Contracting Governments
on the environmental outcomes of the River Murray
Increased Flows during that Water Year, in the light of the
30 objectives determined by the Ministerial Council for those
Increased Flows.
21. Commission To Maintain River Murray Increased Flows
Accounts
(1) The Commission must maintain continuous water accounts
35 of the River Murray Increased Flows to be known as:
(a) the Initial River Murray Increased Flows Account;
and
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(b) the River Murray Increased Flows in Commission
Storages Account.
(2) The Commission must:
(a) credit the Initial River Murray Increased Flows
5 Account with the River Murray Annual Allocation
notified by New South Wales;
(b) transfer from the Initial River Murray Increased
Flows Account to the River Murray Increased Flows
in Commission Storages Account, River Murray
10 Above Target Releases allocated to the River Murray
Increased Flows in accordance with the Strategy;
(c) record in the River Murray Increased Flows in
Commission Storages Account the transfer of water
in that account between Commission storages; and
15 (d) record in the River Murray Increased Flows in
Commission Storages Account the release of River
Murray Increased Flows from Commission storages.
(3) The River Murray Increased Flows Accounts must be
independently audited unless the Commission by resolution
20 declares otherwise.
(4) As soon as practicable after the completion of each audit,
the Commission must send a copy of the audited River
Murray Increased Flows Accounts to the Contracting
Governments.
25 22. Implementing the Strategy
The Commission must commence to implement the
Strategy on the later of:
(1) the beginning of the second complete Water Year
occurring after the Corporatisation Date; and
30 (2) the receipt by Hume Reservoir from the Snowy
Scheme of River Murray Above Target Releases
allocated to the River Murray Increased Flows.
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23. Binding Effect of Strategy
Despite any other provision in this Agreement, the
Commission must:
(1) allocate River Murray Above Target Releases to the
5 River Murray Increased Flows Accounts; and
(2) manage the water in and releases of water from the
River Murray Increased Flows in Commission
Storages Account,
in accordance with the Strategy.
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Act No.
PART VI: NOTIFICATION AND CONSULTATION
PROVISIONS
24. Commission To Be Informed Of New Proposals
A Contracting Government must inform the Commission of
5 any proposal:
(1) to achieve Water Savings or to purchase Water
Entitlements for the purpose of transferring those
Water Savings or Water Entitlements to the
Environmental Entitlements; or
10 (2) to modify the reliability of a supply of water pursuant
to an Environmental Entitlement,
in accordance with sub-clause 46(4) of the Agreement.
25. Snowy Scheme Annual Water Operating Plan
(1) The parties acknowledge that as a result of provisions in the
15 Snowy Water Licence and a deed between the
Commonwealth, New South Wales and Victoria as at the
Corporatisation Date, the Licensee is bound to consult with
others, including the Commission, while developing each
Annual Water Operating Plan and any variation to each
20 Plan.
(2) The Commonwealth, New South Wales and Victoria must:
(a) ensure the direct participation by the Commission in
each consultation referred to in sub-clause 25(1) or
held under any varied consultation arrangements;
25 and
(b) consult with the Commission before varying existing
consultation arrangements.
26. Notifications Required
(1) Each Contracting Government must, at the time specified
30 by the Commission, notify the Commission of such water
volumes and estimates as are reasonably requested by the
Commission to enable it to make calculations referred to in
this Schedule.
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(2) The Commission must, at any time specified by New South
Wales, notify New South Wales of such water volumes and
estimates calculated by the Commission by reference to the
Baseline Conditions as are reasonably requested by New
5 South Wales, to enable New South Wales to calculate the
Required Annual Release.
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s. 6
Act No.
PART VII: ANALYTICAL MODELS
27. Developing Analytical Models
(1) The Commission must develop an analytical model for
determining, in the case of the River Murray System:
5 (a) storage volumes; and
(b) total diversions,
that would have occurred under Baseline Conditions.
(2) New South Wales must develop an analytical model for
determining, in the case of the Murrumbidgee River
10 System:
(a) storage volumes; and
(b) total diversions,
that would have occurred under Baseline Conditions.
(3) An analytical model developed under this clause:
15 (a) must be the best model available to the Commission
or New South Wales, from time to time, for the
purpose of calculating the timing and quantity of the
Relaxation Volume under Baseline Conditions; and
(b) must be tested against relevant historical data to
20 determine the accuracy of the model.
(4) New South Wales may at its own cost engage an
independent auditor to evaluate whether the model
developed under sub-clause 27(1) of this Schedule is:
(a) the best available to the Commission; and
25 (b) accurate.
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PART VIII: OTHER PROVISIONS
28. Inter-Valley Water Transfers
(1) To facilitate water transfers, the Commission may request
New South Wales to release:
(a) Water Available to the Snowy-Murray Development
5 to each or both of the Tumut River catchment and the
Murrumbidgee River catchment; or
(b) Water Available to the Snowy-Tumut Development
to the River Murray catchment upstream of Hume
Dam.
10 (2) If New South Wales agrees with the request made under
sub-clause 28(1) of this Schedule, any inter-valley transfer
referred to in sub-clause 28(1) must be converted into an
allocation to New South Wales of water in Hume Reservoir.
EXECUTED as an agreement
SIGNED by the Honourable
JOHN W HOWARD MP,
Prime Minister of the
JOHN HOWARD
Commonwealth of Australia, in the
presence of--
MALCOLM HAZELL
SIGNED by the Honourable
ROBERT J CARR MP, Premier of
BOB CARR
the State of New South Wales, in the
presence of--
NICHOLAS ROWLEY
SIGNED by the Honourable
STEPHEN P BRACKS MP,
STEVE BRACKS
Premier of the State of Victoria, in
the presence of--
ROBERT HUDSON
SIGNED by the Honourable
MICHAEL D RANN MP, Premier of
MICHAEL RANN
the State of South Australia, in the
presence of--
PAMELA JANE MARTIN
'.
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Endnotes
Act No.
ENDNOTES
By Authority. Government Printer for the State of Victoria.
33
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