97Water market rules

97  Water market rules  (1) The Minister may make rules (to be called water market rules), applying in Basin States that are referring States and in the Australian Capital Territory, that:  (a) relate to an act that an irrigation infrastructure operator does, or fails to do, in a way that prevents or unreasonably delays arrangements being made that would reduce the share component of a water access entitlement of the operator to allow:  (i) a person’s entitlement to water under an irrigation right against the operator; or  (ii) a part of that entitlement;   to be permanently transformed into a water access entitlement that is held by someone other than the operator; and  (b) contribute to achieving the Basin water market and trading objectives and principles set out in Schedule 3. Arrangements of the kind referred to in paragraph (a) are referred to in this section as transformation arrangements.  (2) Water market rules are legislative instruments.  (3) Without limiting subsection (1), water market rules may deal with the restrictions that an irrigation infrastructure operator may, or may not, impose in relation to:  (a) transformation arrangements; or  (b) the trading or transferring, by a person who had an irrigation right against the operator, of a water access entitlement, or part of such an entitlement, obtained as a result of transformation arrangements.  (4) Without limiting subsection (3), the restrictions referred to in that subsection include:  (a) restrictions imposed by including provisions in a contract, arrangement or understanding between an irrigation infrastructure operator and:  (i) a person who has an irrigation right against the operator; or  (ii) a person who has a water access entitlement, or part of such an entitlement, that the person obtained as a result of transformation arrangements in relation to an irrigation right the person had against the operator; and  (b) restrictions imposed by the way in which an irrigation infrastructure operator conducts its operations.  (5) Without limiting subsection (1), water market rules may:  (a) permit an irrigation infrastructure operator to require security before allowing:  (i) a person who holds an irrigation right against the operator to obtain a water access entitlement, or part of such an entitlement, through transformation arrangements in relation to the irrigation right; or  (ii) a person who has obtained a water access entitlement, or part of such an entitlement, as a result of transformation arrangements in relation to an irrigation right the person had against the operator to trade or transfer the water access entitlement, or part, obtained; and  (b) provide for transitional arrangements in relation to contracts that have been entered into between an irrigation infrastructure operator and another person before water market rules are made or amended.  (6) Water market rules must not prevent an irrigation infrastructure operator from:  (a) imposing, or requiring the payment of, a regulated water charge; or  (b) requiring the approval of a person who holds a legal or equitable interest in an irrigation right that a person has against the operator before allowing transformation arrangements in relation to that irrigation right.  (7) Without limiting subsection (1), water market rules may provide that a particular provision of the rules is a civil penalty provision.  (8) The civil penalty for a contravention of a provision specified under subsection (7) is 200 penalty units.  (9) Without limiting subsection (1), water market rules may provide that a person who suffers loss or damage as a result of conduct, or an omission, of another person that contravenes the water market rules may recover the amount of the loss or damage by action against that other person or against any person involved in the contravention.  (10) No claim, action or demand may be made, asserted or taken against an irrigation infrastructure operator for anything done by the operator solely for the purpose of complying with water market rules.  (11) Before the Basin Plan first takes effect, this section applies in relation to any entitlement that is a perpetual or ongoing entitlement, by or under a law of a State or Territory, to exclusive access to a share of the Basin water resources as if the entitlement were a water access entitlement.