Murray-Darling Basin (Amendment) Act 2003 (Vic)

Murray-Darling Basin (Amendment) Act 2003

Act No. 21/2003

TABLE OF PROVISIONS

Section 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

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ENDNOTES 33

i

Victoria

No. 21 of 2003

Murray-Darling Basin (Amendment)

Act 2003†

[Assented to 13 May 2003]

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
Commonwealth, New South Wales, Victoria and
South Australia to amend the Murray-Darling
Basin Agreement.

Murray-Darling Basin (Amendment) Act 2003

Act No. 21/2003 s. 2

2. Commencement

This Act comes into operation on a day to be proclaimed.

3. Definition of "Agreement"

See:

In section 3(1) of the Murray-Darling Basin Act	Act No.
1993—	39/1993 as amended by

(a) for the definition of "Agreement"	Act No. 74/2000.
substitute—	LawToday:
' "Agreement" means the agreement, a copy	dpc.vic.

of which is set out in Schedule 1, as the	gov.au
agreement is—
(a)	deemed to be amended from time to time under clause 50 or 134 of the agreement; and
(b)	amended by the Amending Agreement;';

(b) insert the following definition—
' "Amending Agreement" means the

agreement a copy of which is set out in

Schedule 2;'.

4. New section 5A inserted

After section 5 of the Murray-Darling Basin Act

1993 insert—

"5A. Approval of Amending Agreement

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".

Murray-Darling Basin (Amendment) Act 2003

s. 6 Act No. 21/2003

6. New Schedule 2 inserted

After Schedule 1 to the Murray-Darling Basin

Act 1993 insert—

'SCHEDULE 2

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")

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
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 the Principal Agreement;

Agreement the State of Queensland ("Queensland") became a party to the

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 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,

to make new arrangements for sharing water made available in the River
Murray catchment above Hume Dam by the Snowy Scheme;

Murray-Darling Basin (Amendment) Act 2003

Act No. 21/2003 s. 6

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—

(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
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 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—
(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
(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.".

(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;";
and

Murray-Darling Basin (Amendment) Act 2003

s. 6 Act No. 21/2003

(b) by omitting paragraph (e) and inserting the following paragraph in its stead—

"(e) water calculated in accordance with clause 9 of

Schedule G;".

(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
(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—

(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.
(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

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 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.

Murray-Darling Basin (Amendment) Act 2003

Act No. 21/2003 s. 6

(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

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 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

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
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:

(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
(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;

Murray-Darling Basin (Amendment) Act 2003

s. 6 Act No. 21/2003

(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);

(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 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;

(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;

(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 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;

(9) "Mowamba Borrowings Account" means the water

account to be maintained by the Licensee under the under the Snowy Water Licence from the Mowamba River and Cobbon Creek in the first three years after the Corporatisation Date;

(10) "Murrumbidgee River System" means the Murrumbidgee

River and the water supply systems supplied by that river;

Murray-Darling Basin (Amendment) Act 2003

Act No. 21/2003 s. 6

(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
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
"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;

(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 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

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
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

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

water accounts to be maintained by the Commission
under clause 21 of this Schedule;

Murray-Darling Basin (Amendment) Act 2003

s. 6 Act No. 21/2003

(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;

(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

(d) the Lower Darling River System;

(22) "Seasonal Availability" with respect to the water to which

an entitlement refers means:

(a) is determined by reference to seasonal allocations:

for that part of the entitlement whose availability 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 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" 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 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

the Snowy Scheme comprising works that regulate
the waters of the Upper Snowy River, the Geehi River
and Bogong Creek;

Murray-Darling Basin (Amendment) Act 2003

Act No. 21/2003 s. 6

(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
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

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 (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 or the Goulburn River System;

from either or both of Water Savings and Water

(28) "Snowy Notional Spill" means:

(a)	in the case of the Snowy-Murray Development: 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 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 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;

Murray-Darling Basin (Amendment) Act 2003

s. 6 Act No. 21/2003

(30) "Snowy River Annual Allocation" means the annual

allocation from the Snowy River Apportioned
Entitlement for any Water Year, determined by New

South Wales;

(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;

(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;

(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;

(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

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;

(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 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;

Murray-Darling Basin (Amendment) Act 2003

Act No. 21/2003 s. 6

(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;

(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) 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:

(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;

(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 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

(d) River Murray Increased Flows;

(43) "Water Year" means the period of 12 Months
commencing on 1 May in each year.
Murray-Darling Basin (Amendment) Act 2003

s. 6 Act No. 21/2003

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:

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- Tumut Development to the Snowy-Murray Development
PLUS	the transfer from the Snowy-Tumut Development to the Snowy-Murray Development of the Snowy-Tumut 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 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 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 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 Scheme.

Murray-Darling Basin (Amendment) Act 2003

Act No. 21/2003 s. 6

(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.

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 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
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
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 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
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 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

MINUS 9 GL

Murray-Darling Basin (Amendment) Act 2003

s. 6 Act No. 21/2003

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 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:

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 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 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:

(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 as Snowy Montane Rivers External Increased Flows,

and that flows into the catchment of the River
Murray upstream of Hume Dam.

Murray-Darling Basin (Amendment) Act 2003

Act No. 21/2003 s. 6

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:

The Net Snowy-Murray Development

Diversions to the River Murray

PLUS	Murray to Murrumbidgee Inter-Valley Transfers
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 Shortfall in the previous Water Year
MINUS	At the discretion of the Commission, Murrumbidgee to Murray Inter-Valley Transfers
MINUS	the Required Annual Release Shortfall from the previous Water Year
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 estimated as follows:

The Net Snowy-Murray Development

Diversions to the River Murray

PLUS	Murray to Murrumbidgee Inter-Valley Transfers
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 Shortfall in the previous Water Year

Murray-Darling Basin (Amendment) Act 2003

s. 6 Act No. 21/2003

MINUS	at the discretion of the Commission, Murrumbidgee to Murray Inter-Valley Transfers
MINUS	the Required Annual Release Shortfall from 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.   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

PLUS	Murray to Murrumbidgee Inter-Valley Transfers
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 Shortfall in the previous Water Year
MINUS	at the discretion of the Commission, Murrumbidgee to Murray Inter-Valley Transfers
MINUS	the Required Annual Release Shortfall from the previous Water Year
MINUS	River Murray Above Target Releases allocated to the River Murray Increased Flows received by Hume Reservoir.

Murray-Darling Basin (Amendment) Act 2003

Act No. 21/2003 s. 6

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 sub-clause 13(2) of this Schedule

Release Shortfall from the previous Water

PLUS	half of the River Murray Above Target Releases allocated to the River Murray 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 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.
(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-

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, unless Victoria has previously advised the Commission that Victoria waives this
element of its allocation in any Water Year.

Murray-Darling Basin (Amendment) Act 2003

s. 6 Act No. 21/2003

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

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 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
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

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 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 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
Release Shortfall, the Required Annual Release Shortfall is
to be accounted for by the Commission in accordance with
Table One.

Murray-Darling Basin (Amendment) Act 2003

Act No. 21/2003 s. 6

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

Murray-Darling Basin (Amendment) Act 2003

s. 6 Act No. 21/2003

(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 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 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 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.

Murray-Darling Basin (Amendment) Act 2003

Act No. 21/2003 s. 6

PART IV: SNOWY-MURRAY DEVELOPMENT (RIVER MURRAY) ENVIRONMENTAL ENTITLEMENTS

15. Translation Factors

(1)	New South Wales and Victoria must each transfer Water 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

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 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 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;

(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;

(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:

(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 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 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 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 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.
(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 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 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
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 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 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 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;
(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 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 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 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 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.

(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 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 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 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 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 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
(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

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.

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

(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 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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PART VI: NOTIFICATION AND CONSULTATION

PROVISIONS

24. Commission To Be Informed Of New Proposals

A Contracting Government must inform the Commission of 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

(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
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
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; and
(b)	consult with the Commission before varying existing consultation arrangements.

26. Notifications Required

(1) Each Contracting Government must, at the time specified 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
South Wales, to enable New South Wales to calculate the Required Annual Release.

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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:

(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
System:

(a) storage volumes; and

(b) total diversions,

that would have occurred under Baseline Conditions. (3) An analytical model developed under this clause:

(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 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

(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 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.

(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
Commonwealth of Australia, in the	JOHN HOWARD
presence of— MALCOLM HAZELL
SIGNED by the Honourable	
ROBERT J CARR MP, Premier of
the State of New South Wales, in the	BOB CARR
presence of— NICHOLAS ROWLEY
SIGNED by the Honourable	
STEPHEN P BRACKS MP,
Premier of the State of Victoria, in	STEVE BRACKS
the presence of— ROBERT HUDSON
SIGNED by the Honourable	
MICHAEL D RANN MP, Premier of
the State of South Australia, in the	MICHAEL RANN
presence of— PAMELA JANE MARTIN

__________________'. ═══════════════

Murray-Darling Basin (Amendment) Act 2003

Endnotes Act No. 21/2003

ENDNOTES

†

Minister's second reading speech—

Legislative Assembly: 26 March 2003

Legislative Council: 6 May 2003

The long title for the Bill for this Act was "to amend the Murray-Darling
Basin Act 1993 and for other purposes."