Schedule 2

# Schedule 2 Section 4 A SUPPLEMENTAL AGREEMENT made this fourteenth day of December One thousand nine hundred and fifty‑seven BETWEEN THE COMMONWEALTH OF AUSTRALIA of the first part, THE STATE OF NEW SOUTH WALES of the second part and THE STATE OF VICTORIA of the third part, and intended to be supplemental to the agreement (in this agreement called “the Principal Agreement”) entered into on the eighteenth day of September One thousand nine hundred and fifty‑seven between the parties to this agreement to provide for the construction, operation and maintenance of the undertaking known as the Snowy Mountains Hydro‑electric Scheme: WHEREAS it is necessary, in order to give effect to certain arrangements between the parties to this agreement with respect to the possibility of flooding of lands along the Upper Murray and along the Lower Tumut, that certain provisions affecting the Principal Agreement should be made: NOW IT IS HEREBY AGREED by and between the parties to this agreement as follows:— Interpretation 1.—(1.) In this agreement— > “loss by flooding” means loss directly resulting from the raising of the level of the Upper Murray by water diverted into the River Murray catchment by the permanent works of the Authority or of the Lower Tumut by the discharge of waters from the permanent works of the Authority into the Tumut River, as the case may be; > “the Upper Murray” means that portion of the River Murray, including any tributary through which water discharged from the permanent works of the Authority enters that river, which is between the lowest point of discharge of water by the Authority or the Council and the highest point on that river reached by the waters of the Hume Reservoir when that reservoir is at maximum flood level; > “the Lower Tumut” means that portion of the Tumut River which is between the point where the boundary of the Snowy Mountains area crosses that river and a point downstream from the town of Tumut and distant seven miles in a direct line from the point where the Tumut‑Wee Jasper road crosses the Tumut River. (2.) Expressions used in this agreement which are defined in the Principal Agreement have the same meanings as in the Principal Agreement. Approval of Agreement 2.—(1.) This agreement, other than sub‑clause (2.) of this clause, shall have no force or effect and shall not be binding on any of the parties hereto unless and until it is approved by the respective Parliaments of the Commonwealth and the State of New South Wales and the State of Victoria, but, upon being so approved by those Parliaments, it shall be of full force and effect and binding on the parties. (2.) The Governments of the Commonwealth and the States hereby agree to submit this agreement for approval to their respective Parliaments as soon as practicable after the date of this agreement. Authority to avoid flooding on Upper Murray 3. The Authority shall— (a) in investigating, planning, locating and constructing its works, take reasonable precautions for the prevention of loss by flooding in relation to land along the Upper Murray and along the Lower Tumut; and (b) take all reasonable measures to prevent loss by flooding in relation to land along the Upper Murray and along the Lower Tumut as a result of the operation of the permanent works of the Authority. Liability of Council for flooding on Upper Murray 4.—(1.) In directing and controlling the operation and maintenance of the permanent works of the Authority, the Council shall cause to be taken all reasonable precautions to prevent loss by flooding in relation to land along the Upper Murray and along the Lower Tumut. (2.) If the owner of land along the Upper Murray or along the Lower Tumut suffers loss by flooding in relation to that land, the Council shall be liable to pay to that person such compensation as is determined by agreement between that person and the Council or, in the absence of agreement, by action against the Council in a court of competent jurisdiction. (3.) The Authority shall, on being requested by the Council to do so, provide the Council with the funds necessary to meet the expenses incurred by the Council in pursuance of this clause. (4.) The provisions of sub‑clause (8.) of clause 16 of the Principal Agreement shall apply in relation to claims and proceedings against the Council arising out of this clause. Commonwealth legislation 5. The Government of the Commonwealth of Australia agrees to include in the legislation submitted to its Parliament for the approval of this agreement a provision requiring the Authority to carry out its obligations under this agreement. State legislation 6. The Government of each of the States agrees to include in the legislation submitted to its Parliament for the approval of this agreement— (a) a provision requiring the Council to carry out its obligations under this agreement; (b) a provision imposing liability on the Council in accordance with sub‑clause (2.) of clause 4 of this agreement; and (c) a provision in such form as will enable the Authority for the purpose of giving effect to this agreement to do in that State all such matters and things as the Act permits, or purports to permit, the Authority to do, and to exercise all such powers and authorities in that State as may be necessary to enable the provisions of this agreement to be carried out. Treatment of expenditure 7. Expenditure incurred by the Authority in pursuance of this agreement shall, for the purposes of the Principal Agreement— (a) if it is of a capital nature—be deemed to be part of the net capital expenditure of the Authority in respect of the relevant stage or stages of the permanent works of the Authority; and (b) in any other case—be deemed to be part of the net cost of production of the Authority in the year in which it is incurred. 8. The provisions of this agreement will cease to apply in relation to land along the Lower Tumut when the storage works referred to in clause 6 of the Principal Agreement are so far constructed and brought into operation as to commence to control the waters of the Tumut River. 9. In all other respects, the Principal Agreement is confirmed. IN WITNESS WHEREOF the parties have executed this agreement the day and year first hereinbefore written. | SIGNED BY THE RIGHT HONOURABLE ROBERT GORDON MENZIES, Prime Minister of the Commonwealth of Australia, for and on behalf of the Commonwealth, in the presence of—W. HESELTINE | | ROBERT G. MENZIES | | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --- | ----------------- | | SIGNED BY THE HONOURABLE JOHN JOSEPH CAHILL, Premier of the State of New South Wales, for and on behalf of that State, in the presence of—G. M. GRAY | | J. J. CAHILL | | SIGNED BY THE HONOURABLE HENRY EDWARD BOLTE, Premier of the State of Victoria, for and on behalf of that State, in the presence of—W. HESELTINE | | HENRY E. BOLTE |