(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;
(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 referred to in clause 20 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;
(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,
(c) 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:
(d) environmental flows from the Snowy Scheme; and
(e) River Murray Increased Flows;
(43) “Water Year” means the period of 12 Months commencing on 1 May in each year.
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 Borrowing Account
MINUS 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.
(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:
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
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.
7A. Calculating Required Annual Release
(1) Subject to clause 7A and 7B of this Schedule, the Required Annual Release, and the Dry Inflow Sequence used to calculate it, must both be calculated in accordance with the Snowy Water Licence taken as a whole as at the Corporatisation Date.
(2) Subject to sub‑clause 7A(3), the Required Annual Release for any Water Year, calculated in accordance with sub‑clause 7A(l), must be reduced by so much of the volume of any release made in the preceding Water Year that was surplus to the Required Annual Release for that Water Year.
(3) The Required Annual Release for any Water Year must not be reduced under sub‑clause 7A(2) by a volume which exceeds the Dry Inflow Sequence Volume calculated on 1 March of the preceding Water Year.
7B. Calculating Dry Inflow Sequence Volume
(1) For the purpose of calculating the Dry Inflow Sequence Volume referred to in clause 7A in any month:
(a) the estimated inflows for the remainder of that Water Year must be taken to be the same as the minimum previously recorded inflows for the same period;
(b) the estimated losses for the remainder of that Water Year must be calculated by reference to:
(i) the maximum previously recorded evaporation rates for the same period; and
(ii) the expected Below Target storage volumes for that period;
(c) the volume required to supply the Jindabyne Base Passing Flows from 1 May 2006 must be added;
(d) the volume of losses attributable to storing Above Target Water from 1 May 2006 must be subtracted; and
(e) the volume of the Mowamba Borrowings Account must be added (not subtracted).
(2) The Dry Inflow Sequence Volume calculated at the beginning of any month may be lower than the Dry Inflow Sequence Volume calculated at the beginning of the preceding month, provided that the Dry Inflow Sequence Volume calculated on 1 April in any Water Year must not be less than the Dry Inflow Sequence Volume calculated on the preceding 1 March.
PART III—WATER ACCOUNTING
8. Entitlements Of New South Wales And Victoria To Use Water
The volume of water referred to in paragraph 94(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 Authority, 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 Authority
Water referred to in paragraph 101(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
MINUS at the discretion of the Authority, 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 106(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 Authority, 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.
11. Tributary Inflows
(1) The volume of water referred to in sub‑clause 108(2) of the Agreement is calculated as follows:
The component of the Required Annual 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 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 Authority, Murrumbidgee to Murray Inter‑Valley Transfers
(2) The volume of water referred to in sub‑clause 108(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 Authority that Victoria waives this element of its allocation in any Water Year.
12. Use By New South Wales And Victoria Of Allocated Water
(1) The quantity of water referred to in paragraph 109(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 109(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 Authority in accordance with Table One.
TABLE ONE: WATER ACCOUNTING AND REQUIRED ANNUAL RELEASE SHORTFALLS
TYPE OF WATER YEAR ARRANGEMENT WITH RESPECT TO REQUIRED ANNUAL RELEASE SHORTFALL WATER ACCOUNTING OUTCOMES
Water Year during which a period of special accounting is not in effect Victoria agrees to the Required Annual Release Shortfall New South Wales and Victoria deemed to each have used the Required Annual Release Shortfall as agreed
Victoria does not agree to the Required Annual Release Shortfall New South Wales deemed to have used the whole of the Required Annual Release Shortfall
Water Year during which a period of special accounting is in effect Victoria and the Ministerial Council agree to the Required Annual Release Shortfall New South Wales and Victoria deemed to each have used the Required Annual Release Shortfall as agreed
The Ministerial Council does not agree to the Required Annual Release Shortfall New South Wales deemed to have used the whole of the Required Annual Release Shortfall
(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 Authority 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 Authority 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 Authority 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.
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 Authority.
(2) New South Wales, Victoria and the Authority 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.