(iii) The volume in megalitres of any allocation or entitlement transferred.
(iv) The identifying number of the allocation or entitlement transferred.
(v) The type of entitlement to which the transfer relates.
(vi) The base valley from which the transfer was made.
(vii) The designated river valley from which the transfer was made.
(viii) The date on which either:
• the entitlement transferred was cancelled, extinguished or suspended at the place of origin; or
• any allocation under an entitlement is permanently made available in the State of destination; or
• the transfer of the allocation was authorised,
as a result of the transfer, as the case requires.
(b) The following information about the place of destination:
(i) The exchange rate applied to any transfer.
(ii) The volume in megalitres of the allocation or entitlement transferred, after applying the relevant exchange rate.
(iii) The type of entitlement into which the allocation or entitlement transferred has been converted.
(iv) The base valley into which the transfer was made.
(v) The designated river valley into which the transfer was made.
(vi) The date upon which either:
• any new entitlement was created at the place of destination; or
• the use of the transferred allocation was authorised,
as a result of the transfer, as the case requires.
(vii) The identifying number of any new entitlement.
(viii) If the transfer was made between States, an identifying interstate transfer number, allocated to the transfer by the Authority.
(c) The effective date of the transfer, being the later of the dates referred to in sub‑paragraphs 16(3)(a)(viii) and 16(3)(b)(vi).
(4) Pursuant to the obligations set out in paragraph 13(1)(c) of Schedule E, each State Contracting Government must ensure that the Authority promptly receives all such information relating to transfers within, to or from the territory of that State, as may be necessary to keep the Transfer Register up‑to‑date.
(5) The Authority must arrange for an independent auditor to undertake an audit in accordance with sub‑clauses 16(5A) and 16(5B) if:
(a) the Authority is not satisfied that any volumetric errors in the monthly reconciliation process between the States and the Authority can be rectified; or
(b) the Committee determines that the Authority is to arrange for the audit to be undertaken.
(5A) The Authority must arrange for the auditor to examine whether there is any discrepancy between:
(a) information provided by each State Contracting Government under sub‑clause 16(4); and
(b) information provided under clause 8 of Appendix 3 to this Schedule; and
(c) information set out in the Transfer Register.
(5B) The Authority must arrange for the auditor to make recommendations to the Ministerial Council, as soon as practicable after the audit is completed, about any alteration of the Transfer Register that the auditor thinks desirable in view of any such discrepancy.
(6) After considering any recommendation made by an independent auditor under sub‑clause 16(5B), the Ministerial Council may require the Authority to make any alteration to the Transfer Register, which the Ministerial Council considers appropriate.
(7) The Authority must recalculate any adjustment to the cap on diversions or any annual diversion target, pursuant to clause 8, in respect of which a relevant alteration has been made to the Transfer Register under sub‑clause 16(6).
17. Monitoring and reporting
By 31 December in every year, the Authority must, in accordance with any protocol made under paragraph 6(1)(g), prepare and give to each State Contracting Government a report setting out the following information for the preceding year:
(a) the total volume of transfers of entitlements and allocations into and out of each State; and
(b) the exchange rates applied to interstate transfers referred to in paragraph 17(a); and
(c) any adjustment to the delivery of a State’s entitlement made under clause 7; and
(e) any adjustment to the cap on diversions for a designated river valley made under clause 8.
18. Review of interstate transfers
(1) The Authority must prepare and give to the Ministerial Council and the Basin Community Committee a report under this clause:
(a) as soon as practicable after the end of 2 years after the water trading rules (within the meaning of the Water Act) first come into effect; and
(b) at any other time that the Committee determines from time to time.
(2) The report must address:
(a) the operation of this Schedule; and
(b) the markets for interstate transfers of entitlements and allocations; and
(c) any other matter that the Committee directs; and
(d) any other matter that the Authority considers appropriate.
19. Dispute resolution
(1) This clause applies to any dispute arising under this Schedule between:
(a) one or more of the State Contracting Governments; and
(b) one or more State Contracting Government and the Authority,
(c) each of whom is a party for the purpose of this clause.
(2) A dispute arises at the time when one party notifies the other party or parties in writing that there is a dispute about a matter specified in the notice.
(3) If a dispute arises, the parties must seek, in good faith, to resolve the dispute expeditiously by negotiations between them.
(4) If a dispute is not resolved within 60 days, a party to the dispute may give written notice to the other party or parties requiring the matter to be referred to a dispute panel:
(a) comprising at least two members agreed between the parties; or
(b) if they cannot agree, comprising an equal number of members appointed by each party to the dispute.
(5) A dispute panel must meet within 7 days after it is appointed, or within such other period agreed by the parties.
(6) A unanimous decision of the dispute panel is binding upon the parties.
(7) If the dispute panel does not reach a unanimous decision:
(a) any dispute to which the Authority is a party must be referred to the Ministerial Council for resolution; and
(b) any dispute between State Contracting Governments may be referred by a party to an arbitrator, as if it were a matter requiring resolution by an arbitrator under clause 140 of the Agreement.
(8) Each party must meet its own costs in relation to any dispute.
(9) Each party must contribute equally to the cost of any dispute panel or arbitrator, unless the dispute panel or arbitrator, as the case requires, directs otherwise.
(10) Each State Contracting Government undertakes to try to resolve any difference between it and any other State Contracting Government about a matter referred to in paragraph 5(1)(a), (b) or (c), in accordance with sub‑clauses 19(1)—19(6) before consulting the Ministerial Council under sub‑clause 5(1).
SCHEDULE D—APPENDIX 1—Entitlements and Allocations
(see clause 4)
LEGISLATION CATEGORY SOURCE
Water Management Act 2000 (NSW) High Security Access Licence Murrumbidgee Regulated and Murray Valley Regulated
General Security Access Licence
Conveyance Access Licence
Local Water Utility Access Licence
Allocation under any type of water access licence
Water Act 1989 (Vic) Water licence granted under section 51 River Murray and Goulburn, Broken, Campaspe and Loddon river systems
Irrigation water right
Bulk entitlement
Sales allocation
Water (Resource Management) Act 2005 (Vic) High‑reliability water share
Lower reliability water share
Allocation under a water share
Allocation under an environmental entitlement
Natural Resources Management Act 2004 (SA) Water access entitlement under a water licence River Murray Prescribed Watercourse
Water allocation
Water Resources Act 2007 (ACT) Water access entitlement Murrumbidgee and tributaries within the ACT
Corresponding water access entitlement
SCHEDULE D—APPENDIX 2—Adjusting Delivery of State Entitlements under Part XII of the Agreement
(see clause 7)
PART I—RULES WHICH APPLY AT ALL TIMES
1. Interstate transfers of entitlements
(1) Subject to sub‑clause 1(2), the Authority must adjust the delivery of a State entitlement as a result of each interstate transfer of an entitlement, in accordance with Rules 1‑4:
(a) in the case of exchange rate trade, by the volume of the allocations which would have been made to that entitlement in the State of origin in every year, if the entitlement had not been transferred; and
(b) in the case of tagged trade, by the volume of water used by the transferee in each year.
(2) For the purpose of calculating the volume referred to in paragraph 1(1), for exchange rate trade, if the transferor seeks to transfer an entitlement with lower reliability, the Authority must first apply the relevant conversion factor that would be applied to convert that entitlement into a type of entitlement with higher reliability, in the valley of origin.
(3) An adjustment made under sub‑clause 1(1), must be calculated from the effective date of the relevant transfer.
(4) The Authority must alter its procedures for delivering State entitlements to reflect any adjustments made under sub‑clause 1(1), in the manner set out in any protocol made under paragraph 6(1)(e).
Rule 1: Transfers into South Australia
The Authority must increase:
(a) water deliveries to South Australia; and
(b) the volume provided to South Australia by the State out of which the transfer was made,
but must not increase the priority of delivering the volume represented by any transfer.
Rule 2: Transfers out of South Australia
The Authority must decrease:
(a) water deliveries to South Australia; and
(b) the volume provided to South Australia by the State into which the transfer was made.
Rule 3: Transfers out of New South Wales into Victoria
The Authority must, in relation to Hume Reservoir:
(a) decrease the volume which may be delivered to New South Wales; and
(b) increase the volume which may be delivered to Victoria.
Rule 4: Transfers out of Victoria into New South Wales
The Authority must, in relation to Hume Reservoir:
(a) decrease the volume which may be delivered to Victoria; and
(b) increase the volume which may be delivered to New South Wales.
2. Interstate transfers of allocations
(1) The Authority must adjust a State entitlement as a result of each interstate transfer of an allocation:
(a) by the adjusted volume of that transfer; and
(b) in accordance with Rules 5—8 set out below.
(2) The Authority must alter its procedures for delivering State entitlements to reflect any adjustment made under sub‑clause 2(1),in accordance with any protocol made under paragraph 6(1)(f) of this Schedule.
Rule 5: Transfers into South Australia
The Authority must increase:
(a) water deliveries to South Australia; and
(b) the volume provided to South Australia by the State out of which the transfer was made.
Rule 6: Transfers out of South Australia
The Authority must decrease:
(a) water deliveries to South Australia; and
(b) the volume provided to South Australia by the State into which the transfer was made.
Rule 7: Transfers out of New South Wales into Victoria
The Authority must, in relation to Hume Reservoir:
(a) decrease the volume which may be delivered to New South Wales; and
(b) increase the volume which may be delivered to Victoria.
Rule 8: Transfers out of Victoria into New South Wales
The Authority must, in relation to Hume Reservoir:
(a) decrease the volume which may be delivered to Victoria; and
(b) increase the volume which may be delivered to New South Wales.
PART II—RULES WHICH ONLY APPLY IN PERIODS WHEN THERE IS SPECIAL ACCOUNTING
3. Accounting under clause 125 of the Agreement
During any period of special accounting, the Authority, in each month, must increase and decrease the account kept for a State:
(a) under paragraph 125(a) of the Agreement, in accordance with Rules 9 and 10 set out below; and
(b) under paragraph 125(b) of the Agreement, in accordance with Rules 11 and 12 set out below.
Rule 9: New South Wales
The Authority must:
(a) increase the account by the sum of adjustments made in that month for New South Wales under rules 1, 3, 5 and 7; and
(b) decrease the account by the sum of adjustments made in that month for New South Wales under rules 2, 4, 6 and 8.
Rule 10: Victoria
The Authority must:
(a) increase the account by the sum of adjustments made in that month for Victoria under rules 1, 4, 5 and 8; and
(b) decrease the account by the sum of adjustments made in that month for Victoria under rules 2, 3, 6 and 7.
Rule 11: New South Wales
The Authority must:
(a) increase the account by the sum of adjustments made in that month for New South Wales under rules 2 and 6; and
(b) decrease the account by the sum of adjustments made in that month for New South Wales under rules 1 and 5.
Rule 12: Victoria
The Authority must:
(a) increase the account by the sum of adjustments made in that month for Victoria under rules 2 and 6; and
(b) decrease the account by the sum of adjustments made in that month for Victoria under rules 1 and 5.
SCHEDULE D—APPENDIX 3—Adjusting Cap on Diversions
(see clause 8)
1. Definitions
For the purposes of this Appendix:
cap required, with respect to a unit of a type of entitlement, means the product of that unit multiplied by the appropriate cap factor referred to in paragraph 8(c).
effective date means the beginning of the year in which this Appendix comes into effect.
PART I—ADJUSTING FOR TRANSFERRED ALLOCATIONS
2. Adjusting cap for transferred allocations
The annual diversion target for a designated river valley, referred to in sub‑clause 12(1) of Schedule E, must either be increased or reduced, as the case requires, by the volume of any interstate or intervalley transfers of allocations into or out of that designated river valley in that year, multiplied by the appropriate cap transfer rate set out in Table 1 of a protocol made under paragraph 6(1)(a) of the Schedule.
PART II—ADJUSTING FOR ENTITLEMENTS TRANSFERRED BY TAGGED TRADE
3. Cap adjustment for tagged trade
The annual diversion target for a designated river valley referred to in sub‑clause 12(1) of Schedule E must be:
(a) increased by the volume of water diverted in that designated river valley in that year, which is attributable to entitlements tagged to another designated river valley; and
(b) reduced by the volume of water attributable to entitlements tagged to that designated river valley, which is diverted in any other designated river valley in that year.
PART III—ADJUSTING FOR ENTITLEMENTS TRANSFERRED BETWEEN 1 JULY 1994 AND THE EFFECTIVE DATE, USING EXCHANGE RATES
4. Interim register
The Authority must establish and maintain an interim register which records the volume of any entitlement transferred from a designated river valley to another designated river valley during each year between 1 July 1994 and the effective date.
5. Adjusting annual diversion targets
Each year, the Authority must calculate the adjustment to the annual diversion target for a designated river valley for transfers recorded on the interim register referred to in clause 4, by:
(a) multiplying the cumulative volume of every entitlement of a particular type transferred into the designated river valley between 1 July 1994 and the earlier of the beginning of that year and the effective date, by the appropriate cap transfer rate set out in Table 2 of a protocol made under paragraph 6(1)(a) of the Schedule; and
(b) multiplying the cumulative volume of every entitlement of a particular type transferred out of the designated river valley between 1 July 1994 and the earlier of the beginning of that year and the effective date, by the appropriate cap transfer rate; and
(c) subtracting the product of (b) from the product of (a).
PART IV—ADJUSTING FOR ENTITLEMENTS TRANSFERRED OR CONVERTED AFTER THE EFFECTIVE DATE, USING EXCHANGE RATES
6. Object of Part
The object of this Part is, subject to sub‑clause 8(1) of the Schedule, to minimise the impact of transfers or conversion of entitlements on entitlements held by third parties, by endeavouring to ensure that:
(a) the proportion of the cap associated with each unit of a particular type of entitlement remains the same after an entitlement has been transferred or converted as it was before that transfer or conversion; and
(b) the annual diversion target for each State and designated river valley referred to in sub‑clause 12(1) of Schedule E is adjusted accordingly.
7. Operation of Part
This Part applies to entitlements transferred or converted after the effective date.
8. Calculating increases in cap required
Based on information set out in the Transfer Register, the Authority must make the following calculations for every year, in respect of each designated river valley, as a consequence of transfers between that designated river valley and every other designated river valley:
(a) The volume of each type of entitlement into which former entitlements were transferred or converted, as recorded under sub‑paragraphs 16(3)(b)(ii) and 16(3)(a)(ii) of this Schedule.
(b) The net increase in each type of entitlement, by subtracting the volume of that type of entitlement recorded under sub‑paragraphs 16(3)(a)(iii) and 16(3)(a)(i) of this Schedule from the volume of that type of entitlement calculated under paragraph 8(a).
(c) The net increase in the cap required for each type of entitlement , by multiplying the result of the calculation in paragraph 8(b) by the relevant cap factor set out in Table 3 of a protocol made under paragraph 6(1)(a) of the Schedule.
9. Adjusting annual diversion targets
(1) The Authority must, in each year, alter each long‑term diversion cap to reflect the results of transferring entitlements, pursuant to paragraph 10(2)(a) of Schedule E, by adjusting annual diversion targets.