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This is a Bill, not an Act. For current law, see the Acts databases.


WATER MANAGEMENT AMENDMENT BILL 2005





Water Management Amendment
Bill 2005


Contents

                                                                       Page
          1    Name of Act                                               2
          2    Commencement                                              2
          3    Amendment of Water Management Act 2000 No 92              2
          4    Amendment of Protection of the Environment Operations
               (General) Regulation 1998                                 2
  Schedule 1   Amendment of Water Management Act 2000                    3
  Schedule 2   Amendment of Water Management Act 2000 relating to
               irrigation corporations                                  31
  Schedule 3   Amendment of Protection of the Environment Operations
               (General) Regulation 1998                                33
I certify that this PUBLIC BILL, which originated in the LEGISLATIVE ASSEMBLY,
has finally passed the LEGISLATIVE COUNCIL and the LEGISLATIVE ASSEMBLY of
NEW SOUTH WALES.


                                               Clerk of the Legislative Assembly.
                                               Legislative Assembly,
                                               Sydney,                     , 2005




                            New South Wales




Water Management Amendment
Bill 2005
Act No      , 2005




An Act to amend the Water Management Act 2000 in relation to plans of
management, environmental water and compensation and to amend other legislation
consequentially; and for other purposes.




I have examined this Bill, and find it to correspond in all respects with the Bill
as finally passed by both Houses.


                          Chairman of Committees of the Legislative Assembly.
Clause 1          Water Management Amendment Bill 2005




The Legislature of New South Wales enacts:
 1    Name of Act
               This Act is the Water Management Amendment Act 2005.
 2    Commencement
         (1)   This Act commences on a day or days to be appointed by proclamation,
               except as provided by subsection (2).
         (2)   The provisions of Schedule 1 [48]-[57] commence on the date of assent
               to this Act.
 3    Amendment of Water Management Act 2000 No 92
               The Water Management Act 2000 is amended as set out in Schedules 1
               and 2.
 4    Amendment of Protection of the Environment Operations (General)
      Regulation 1998
               The Protection of the Environment Operations (General) Regulation
               1998 is amended as set out in Schedule 3.




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Water Management Amendment Bill 2005

Amendment of Water Management Act 2000                                  Schedule 1




Schedule 1             Amendment of Water Management Act
                       2000
                                                                           (Section 3)
[1]   Section 8 Environmental water
      Insert after section 8 (1):
           (1A)     A management plan is to commit water as planned environmental
                    water in at least 2 of the following ways (whether by 2 separate
                    ways or a combination of 2 ways):
                    (a) by reference to the commitment of the physical presence of
                          water in the water source,
                    (b) by reference to the long-term average annual commitment
                          of water as planned environmental water,
                    (c) by reference to the water that is not committed after the
                          commitments to basic landholder rights and for sharing
                          and extraction under any other rights have been met.
[2]   Sections 8A-8E
      Insert after section 8:
      8A     Planned environmental water
             (1)    If the relevant management plan so provides, the Minister may
                    cancel any supplementary access licence, and any other category
                    or subcategory of licence prescribed by the regulations, that is
                    held by the Minister and commit an equivalent amount of water
                    as determined in accordance with the management plan as
                    planned environmental water for the water source to which the
                    licence related.
             (2)    Planned environmental water committed under this section is to
                    be used for only those purposes specified in the relevant
                    management plan.
             (3)    Sections 78, 78A and 87 do not apply to the cancellation of an
                    access licence under this section.
      8B     Adaptive environmental water through dedication of existing
             water entitlements
             (1)    If the relevant management plan so provides, the holder of an
                    access licence may request that the Minister impose an adaptive
                    environmental water condition in respect of the whole or a part of
                    the access licence.



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Schedule 1      Amendment of Water Management Act 2000




              (2)   A condition imposed under this section may be amended, and is
                    to be revoked, by the Minister at the request in writing of the
                    holder of the access licence.
         8C   Adaptive environmental water through system improvements
              (1)   If the relevant management plan so provides, the Minister may
                    grant an access licence of a category or subcategory determined
                    by the Minister to the Minister, a catchment management
                    authority or other public body, without the need for an
                    application to be made for the licence in accordance with Part 2
                    of Chapter 3, so long as:
                     (a) works or other actions result in water savings in the system
                           being made in the water source in respect of which the
                           licence is granted, and
                    (b) the share component of the licence is equivalent to the
                           value of water savings in the system made, and
                     (c) an adaptive environmental water condition is imposed on
                           the licence.
              (2)   In this section, system means that part of a water source to which
                    a management plan applies that is not identified by the plan for
                    commitments to basic landholder rights and for sharing and
                    extraction under any other rights.
         8D   Adaptive environmental water through water savings
                    If the relevant management plan so provides, the Minister may
                    keep an access licence surrendered by the holder of the licence or
                    transfer it to a catchment management authority or other public
                    body, and may change the licence to a different category or
                    subcategory, if:
                     (a) the licence has been surrendered as a result of water
                           savings made by any means (for example, works or other
                           improvements or recycling), and
                    (b) the share component of the licence is equivalent to the
                           value of the savings made, and
                     (c) an adaptive environmental water condition is imposed on
                           the licence.
         8E   General provisions relating to access licences with adaptive
              environmental water conditions
              (1)   This section applies to access licences that are subject to an
                    adaptive environmental water condition.




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Amendment of Water Management Act 2000                                  Schedule 1




            (2)   For the purposes of this Act (but subject to section 8B (2)), an
                  adaptive environmental water condition is a mandatory
                  condition.
            (3)   The terms of an adaptive environmental water condition imposed
                  in respect of an access licence are to further the objectives of the
                  relevant management plan.
            (4)   If the adaptive environmental water condition on an access
                  licence requires the water to be left in the water source for
                  environmental purposes, then the water allocation account is to
                  be debited when the water is available in accordance with the
                  condition.
            (5)   If the adaptive environmental water condition requires the
                  environmental water to be taken from the water source then the
                  water allocation account is to be debited when it is taken.
            (6)   For the purposes of auditing compliance with the long-term
                  extraction limit under the relevant management plan, the delivery
                  of water pursuant to an access licence to which this section
                  applies:
                  (a) in the case of a licence to which section 8C relates--is not
                        to be accounted for as extraction, and
                  (b) in the case of a licence to which section 8B or 8D relates--
                        is to be accounted for as extraction.
            (7)   Before imposing an adaptive environmental water condition on
                  an access licence, the Minister is to approve a plan for the
                  implementation of the condition.
            (8)   The Minister is to ensure that the plan referred to in subsection
                  (7), and a requirement to comply with the plan, forms part of the
                  adaptive environmental water condition.
            (9)   An access licence to which this section applies, or a part of such
                  a licence to which the adaptive environmental water condition
                  concerned is expressed to relate, may be the subject of a dealing
                  in accordance with this Act if the plan approved under subsection
                  (7) so provides.
[3]   Section 20 Core provisions
      Insert "and provisions relating to adaptive environmental water" after "rules"
      in section 20 (1) (a).




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Schedule 1      Amendment of Water Management Act 2000




[4]   Section 20 (4) (b) and (c)
      Omit section 20 (4) (b). Insert instead:
                   (b) must not deal with any matter for which the access licence
                         dealing principles may make provision under section 71Z
                         (2), and
                   (c) subject to paragraph (b) and the access licence dealing
                         principles, may regulate or prohibit any dealing under
                         Division 4 of Part 2 of Chapter 3.
[5]   Section 41 Making of management plan
      Insert ", by order published in the Gazette," after "may" wherever occurring
      in section 41 (1) (a) and (b).
[6]   Section 42 Amendment of management plans
      Insert after section 42 (2):
              (3)   Each management plan specified in Schedule 12 is amended as
                    set out in that Schedule.
              (4)   The amendment of a management plan by this or any other Act
                    does not prevent its later amendment or repeal in accordance with
                    this Act.
[7]   Section 43A Extension of duration of management plan dealing with
      water sharing
      Omit "were" from section 43A (3) (b). Insert instead "are".
[8]   Section 43A (3A)
      Insert after section 43A (3):
             (3A)   If a report of the Natural Resources Commission under
                    subsection (3) recommends changes to a management plan that
                    will result in a reduction of water allocations in relation to which
                    compensation might be payable under section 87AA, the
                    Commission is to state in the report whether the purpose of the
                    proposed changes is:
                     (a) to restore water to the environment because of natural
                           reductions in inflow to the relevant water source, including
                           but not limited to changes resulting from climate change,
                           drought or bushfires, or
                    (b) to provide additional water to the environment because of
                           more accurate scientific knowledge that demonstrates that
                           the amount previously allocated to the environment is
                           inadequate.


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Amendment of Water Management Act 2000                                    Schedule 1




 [9]   Section 45 Minister may amend or repeal management plan
       Omit section 45 (2).
[10]   Section 46
       Insert before section 47:
       46    Making or amendment of management plan
             (1)    If the Minister makes a replacement management plan or amends
                    a management plan and the replacement plan or amendment will
                    result in a reduction of water allocations in relation to which
                    compensation might be payable under section 87AA, the
                    Minister is to include in the order in which the replacement plan
                    or amendment is made, or in another order, a statement as to
                    whether:
                     (a) the purpose of the reduction to water allocations is to
                           restore water to the environment because of natural
                           reductions in inflow to the relevant water source, including
                           but not limited to changes resulting from climate change,
                           drought or bushfires, or
                    (b) the purpose of the reduction to water allocations is to
                           provide additional water to the environment because of
                           more accurate scientific knowledge that demonstrates that
                           the amount previously allocated to the environment is
                           inadequate, or
                     (c) the reduction to water allocations results from a change in
                           government policy.
             (2)    A statement referred to in subsection (1):
                    (a) need not be made if the reduction concerned arises from
                          circumstances referred to in section 87AA (3) (a) or (c),
                          and
                    (b) in a case where the reduction is made for more than one of
                          the purposes referred to in subsection (1), is to specify each
                          of the relevant purposes and the extent to which the
                          reduction relates to each of those relevant purposes.




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Schedule 1       Amendment of Water Management Act 2000




[11]   Section 47 Validity of management plans and exercise of plan-making
       functions
       Omit the definition of plan-making function in section 47 (8). Insert instead:
                    plan-making function means:
                    (a) a function under this Act relating to the making of a
                          management plan (including relating to the amendment,
                          replacement or repeal of a management plan or the
                          extension of the duration of a management plan), or
                    (b) a function under section 46 of this Act relating to the
                          statement of the purpose for which any provision of a
                          management plan has been made.
[12]   Section 56 Access licences
       Insert after section 56 (4):
             (4A)   Without limiting subsection (1) (b), the extraction component of
                    an access licence may authorise the taking of water from a water
                    source specified in the share component of the licence and from
                    another water source not so specified if those water sources are
                    vertically abutting (either wholly or partly) water sources.
             (4B)   In the circumstances referred to in subsection (4A), the water
                    source specified in the share component of the access licence is
                    to be the water source that is the main source for the extraction of
                    water by the holder of the licence.
[13]   Section 58 Priorities between different categories of licence
       Insert after section 58 (2):
              (3)   In relation to the water management area or water source to
                    which it applies, a management plan may provide for different
                    rules of priority to those established by subsection (1).
              (4)   If a management plan so provides for different rules of priority,
                    those different rules are taken to have been established by this
                    section.
[14]   Section 59 Available water determinations
       Insert after section 59 (2):
              (3)   If the extraction component of an access licence authorises the
                    taking of water from a water source specified in the share
                    component of the licence and from another water source not so
                    specified and those water sources are vertically abutting (either
                    wholly or partly) water sources, the available water



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Amendment of Water Management Act 2000                                   Schedule 1




                    determinations that apply to the licence are those made in relation
                    to the water source specified in the share component of the
                    licence.
              (4)   If the Minister consents to the amendment of an access licence to
                    enable water to be taken by a specified water supply work or
                    group of water supply works in circumstances referred to in
                    section 71W (2) (b) or (c), the available water determinations that
                    apply to the licence are those made in relation to the water source
                    specified in the share component of the licence.
[15]   Section 65 Controlled allocation of access licences
       Omit section 65 (3) and (4) and the note to subsection (4).
[16]   Section 67 Imposition of conditions after access licence is granted
       Insert "to conditions imposed on an access licence as a result of action taken
       under section 66 (3)" after "the access licence," in section 67 (2).
[17]   Section 68A Amendment of share or extraction components of access
       licences by Minister
       Insert "this Act or" after "with" in section 68A (1).
[18]   Section 68A (1A) and (1B)
       Insert after section 68A (1):
            (1A)    The Minister may amend the share component or extraction
                    component (or both) of an access licence so as to alter the water
                    management area or water source to which the share component
                    of the licence relates, or the locations from which water may be
                    taken in accordance with the extraction component of the licence.
            (1B)    An amendment may only be made under subsection (1A) if:
                    (a) the amendment is for the purpose of enabling the holder of
                         the licence to take water from a different water source to
                         that authorised by the licence because erroneous location
                         data has resulted in the holder taking water from that
                         different source, and
                    (b) at the time at which the granting of the access licence was
                         recorded in the register, an access licence could have been
                         granted to the holder authorising the taking of water from
                         that different water source.




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Schedule 1       Amendment of Water Management Act 2000




[19]   Section 71B When matters required to be recorded in General Division
       of Access Register have effect
       Omit "Any" from section 71B (1).
       Insert instead "Subject to this section, any".
[20]   Section 71B (3)
       Insert after section 71B (2):
              (3)   If an application for the extension of a term transfer under section
                    71N is received before the expiry of the term transfer, the
                    extension is to be recorded in the Register as taking effect from
                    the end of the current term of the term transfer.
[21]   Section 71N Term transfers of entitlements under access licences
       Insert "in relation to any water entitlements" after "concerned" in section 71N
       (5).
[22]   Section 71N (7A)
       Insert after section 71N (7):
             (7A)   The period for which a term transfer has effect may be extended,
                    with the consent of the transferee, while the term transfer remains
                    in force.
[23]   Section 71S Amendment of extraction component of access licence
       Insert after section 71S (3):
              (4)   The Minister may, by order published in the Gazette, declare that
                    the right to apply for an amendment of the extraction component
                    of an access licence for a specified water management area or
                    water source is to be acquired by auction, tender or other means
                    specified in the order.
[24]   Section 71W Access licence may nominate water supply works
       Omit section 71W (2). Insert instead:
              (2)   The water supply work or group of water supply works
                    nominated must be in one or more of the following:
                    (a) the same water management area or water source as the
                         access licence concerned,
                    (b) a NSW water tagging zone,




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Amendment of Water Management Act 2000                                   Schedule 1




                    (c)    an interstate water tagging zone in another State or
                           Territory if the operation of the work or works is lawful in
                           that zone and an arrangement is in place (as referred to in
                           section 391A) between the Minister and a Minister of the
                           other State or Territory.
              (3)   For the avoidance of doubt, a water supply work or group of
                    water supply works may be nominated under this section even
                    though no approval is required to be held in relation to the work
                    or works under this Act.
              (4)   In this section:
                    interstate water tagging zone means an interstate water tagging
                    zone established by the access licence dealing principles.
                    NSW water tagging zone means a NSW water tagging zone
                    established by the access licence dealing principles.
[25]   Section 71Y General
       Omit "or dealing on default" from section 71Y (1).
       Insert instead ", dealing on default or assignment under section 71T or 71V".
[26]   Section 71Z Access licence dealing principles
       Omit "subject to any such rules," wherever occurring.
[27]   Section 71Z (2) and (3)
       Insert at the end of section 71Z:
              (2)   The access licence dealing principles may include provisions
                    relating to any or all of the following:
                     (a) the establishment of interstate water tagging zones for the
                           purposes of section 71W,
                    (b) the establishment of NSW water tagging zones for the
                           purposes of section 71W,
                     (c) the criteria to be considered for the granting of an
                           application in circumstances referred to in section 71W (2)
                           (b) or (c).
              (3)   The access licence dealing principles prevail over the access
                    licence dealing rules to the extent of any inconsistency.




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[28]   Section 72A
       Insert after section 72:
       72A   Special provisions relating to co-holdings in access licences
              (1)   Except as provided by subsection (2) and section 74, any dealing
                    in relation to an access licence that is held by co-holders requires
                    the consent of all of the co-holders and is taken to be a dealing
                    with respect to the whole of the licence (rather than to a holding
                    in the licence).
              (2)   A holding in an access licence may only be the subject of a
                    dealing under section 71M (8) or 71N (11).
[29]   Section 74
       Insert after section 73:
        74   Exit from co-held access licence
              (1)   On the application of one or more of the co-holders of an access
                    licence (the original access licence), the Minister may consent to
                    the extinguishment of the holdings of one or more co-holders in
                    the licence and the granting of a new access licence in accordance
                    with Schedule 1B.
              (2)   If the Minister extinguishes holdings in the original licence and
                    grants a new access licence under subsection (1), the Minister is
                    to reduce the entitlements under the original access licence to the
                    extent necessary to reflect the entitlements conferred by the new
                    licence.
              (3)   An application may not be made under subsection (1) without the
                    consent in writing of all of the co-holders of the access licence
                    concerned or of co-holders who hold a majority share of the
                    holdings under the licence.
              (4)   On the application of one or more co-holders of an access licence,
                    the Supreme Court may, if it considers it just and equitable to do
                    so, order that the consent referred to in subsection (3) need not be
                    obtained and may make ancillary orders for the purposes of this
                    section.
              (5)   When determining such an application where the water supply
                    work nominated by the access licence concerned is shared by
                    some or all of the co-holders of the licence, the Supreme Court is
                    to take into consideration the likely effect that the taking of action
                    under subsection (1) would have on the use of that work and the
                    co-holders who have the benefit of it.



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Amendment of Water Management Act 2000                                  Schedule 1




              (6)   This section does not apply to an access licence if:
                    (a) there is any money due under this Act in respect of the
                          access licence, including any civil penalties imposed under
                          this Act, or
                    (b) the co-holders hold the licence as joint tenants, or
                    (c) the access licence dealing principles or the access licence
                          dealing rules prevent an application being made under this
                          section.
              (7)   Schedule 1B has effect.
[30]   Section 77A Cancellation of access licences that can no longer be used
       or are no longer required
       Insert after section 77A (2):
            (2A)    Subsection (2) does not apply to an access licence in relation to
                    which action is taken by the Minister under section 8D.
[31]   Section 78 Suspension and cancellation of access licences
       Omit section 78 (2). Insert instead:
              (2)   Instead of or in addition to suspending or cancelling an access
                    licence, the Minister may order a major utility or local water
                    utility to pay to the Minister a civil penalty of an amount not
                    exceeding $500,000 and a further civil penalty of an amount not
                    exceeding $20,000 for each day that the circumstances giving
                    rise to the initial civil penalty continue to exist.
[32]   Section 86
       Insert before section 87:
       86    Definitions
                    In this Division:
                    compensation includes damages or any other form of monetary
                    compensation.
                    the Crown means the Crown within the meaning of the Crown
                    Proceedings Act 1988, and includes any officer, employee or
                    agent of the Crown.
[33]   Section 87 Compensation payable in certain circumstances for
       reductions in water allocations arising during initial period for which
       management plan is in force
       Omit section 87 (2) (a).




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[34]    Section 87 (2)
        Insert at the end of section 87 (2) (c):
                             , or
                       (d) an amendment made by an Act to a management plan.
[35]    Section 87 (9)
        Insert after section 87 (8):
               (9)   Despite the other provisions of this section, compensation may be
                     claimed under this section only in respect of a reduction in water
                     allocations occurring during the period for which the first
                     management plan that established the bulk access regime
                     concerned is in force (excluding any period for which that plan is
                     extended under section 43A (1)).
[36]    Sections 87AA and 87AB
        Insert after section 87:
       87AA   Compensation payable in certain circumstances for reductions in
              water allocations arising after initial period that management plan
              is in force
               (1)   This section applies to the following categories and subcategories
                     of access licence:
                     (a) regulated river (high security) access licences,
                     (b) regulated river (general security) access licences,
                     (c) Murrumbidgee Irrigation (conveyance) access licences,
                     (d) Coleambally Irrigation (conveyance) access licences,
                     (e) unregulated river access licences,
                      (f) aquifer access licences,
                     (g) any other category or subcategory of access licence that is
                           prescribed by the regulations (other than supplementary
                           access licences or specific purpose access licences).
               (2)   A holder of an access licence to which this section applies whose
                     water allocations are reduced because of a change to provisions
                     of the relevant management plan dealing with water sharing is
                     entitled to compensation as assessed by the Minister in
                     accordance with subsections (5) and (6).




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Amendment of Water Management Act 2000                                  Schedule 1




            (3)   Despite subsection (2), the holder of an access licence is not
                  entitled to compensation under this section if:
                  (a) the reduction in water allocations occurred while the first
                         management plan (excluding any period for which that
                         plan was extended under section 43A (1)) was in force, or
                  (b) the reduction in water allocations occurred as a result of an
                         amendment of a management plan by the Minister under
                         section 45 that is authorised by the plan or that is required
                         to give effect to a decision of the Land and Environment
                         Court relating to the validity of the plan, or
                  (c) the reduction in water allocations is for the purpose of
                         restoring water to the environment because of natural
                         reductions in inflow to the water source, including but not
                         limited to changes resulting from climate change, drought
                         or bushfires.
            (4)   A reference in subsection (2) to a change in the provisions of a
                  management plan includes a change between the provisions of
                  the management plan concerned and provisions of the
                  management plan that it replaced.
            (5)   Compensation is payable to the holder of an access licence whose
                  water allocations are reduced because of a change in the
                  provisions of a management plan as a result of an amendment that
                  is specified under section 46 by the Minister as due to a change
                  in government policy.
            (6)   Compensation is payable as follows for a reduction in water
                  allocations for the purpose of providing additional water to the
                  environment because of more accurate scientific knowledge that
                  demonstrates that the amount previously allocated to the
                  environment is inadequate:
                  (a) no compensation is payable for reductions of 3% or less,
                  (b) compensation is payable for reductions of more than 3%
                         over any 10-year period commencing on or after the
                         expiration of the period for which the first management
                         plan for the relevant area was in force (including any
                         period for which that plan was extended under section 43A
                         (1)),
                  (c) only one third of the compensation payable for a reduction
                         of more than 3% but not more than 6% over any applicable
                         10-year period is liable to be paid under this section,
                  (d) only one half of the compensation payable for a reduction
                         of more than 6% over any applicable 10-year period is
                         liable to be paid under this section.


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              (7)   The regulations may make provision for or with respect to the
                    following:
                     (a) the basis on which reductions in water allocations are to be
                          calculated or the method of determining such reductions
                          for the purposes of this section,
                    (b) the basis on which compensation is to be calculated or the
                          method for calculating the payment of compensation for
                          the purposes of this section,
                     (c) the manner and time of payment of compensation.
              (8)   This section has effect only while there is in force an agreement
                    entered into by, or on behalf of, the State and the Commonwealth
                    for or with respect to supplementing the payment of
                    compensation under this section.
              (9)   Despite any other provision of this section, no compensation is
                    payable under this section in respect of a reduction in water
                    allocations of a kind referred to in subsection (6) if the
                    Commonwealth has not provided funding in respect of that
                    reduction to meet its obligations under the agreement referred to
                    in subsection (8).
             (10)   A person may appeal to the Land and Environment Court on the
                    ground that the person is entitled to the payment of compensation
                    under this section but has not been determined as being entitled
                    to any compensation.
   87AB      Compensation is not payable in relation to certain conduct
              (1)   Compensation is not payable by or on behalf of the Crown in
                    respect of any relevant conduct in relation to a management plan.
              (2)   In this section, relevant conduct, in relation to a management
                    plan, means an act or omission occurring before the
                    commencement of the management plan in respect of the content,
                    effect or government policy concerning the management plan,
                    including the following:
                     (a) any act or omission, whether unconscionable, misleading,
                           deceptive or otherwise,
                    (b) a representation of any kind, whether made verbally or in
                           writing and whether negligent, false, misleading or
                           otherwise.
              (3)   This section has effect despite section 87.
              (4)   In this section, a reference to a management plan includes a
                    reference to an amendment of a management plan.



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[37]   Section 100 Conditions of approval generally
       Insert after section 100 (2) (and before the note to the section):
              (3)   Without limiting the types of conditions relating to the protection
                    of the environment that the Minister may impose under this
                    section on a water management work approval, those conditions
                    may include conditions relating to any or all of the following
                    matters:
                    (a) the undertaking of an investigation of the environmental
                          impact of cold water releases and the options for
                          mitigation of that impact,
                    (b) the preparation of a program to mitigate the impact of cold
                          water releases and the obtaining of approval to the
                          program from the Minister,
                    (c) the implementation of the program,
                    (d) the monitoring and reporting on actions taken to
                          implement the program and the impact of those actions on
                          the environment,
                    (e) the carrying out of new works or the making of alterations
                          to existing works, or both,
                     (f) the method of operation of water management works.
[38]   Section 102 Imposition or variation of conditions after approval is
       granted
       Insert "or with the consent of" after "at the request of" in section 102 (2).
[39]   Section 107 Amendment of approvals
       Insert after section 107 (5):
              (6)   In considering any application under this section, the Minister is
                    to have regard to any order of the Supreme Court under section
                    74 that affects the matters covered by the application.
[40]   Section 341 Unlawful taking of water
       Insert after section 341 (1):
            (1A)    If a person who has the control or management of a water supply
                    work takes water by means of that work in contravention of
                    subsection (1) and the water supply work is nominated under
                    section 71W in relation to an access licence that is not held by
                    that person, the person who is the holder of the access licence is
                    also taken to have contravened subsection (1).




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             (1B)   A person may be proceeded against and convicted under
                    subsection (1) pursuant to subsection (1A) whether or not the
                    person who has the control or management of the water supply
                    work concerned has been proceeded against or been convicted
                    under subsection (1).
[41]   Section 341 (6) and (7)
       Insert after section 341 (5):
              (6)   A person is not guilty of an offence under this section by reason
                    only of taking water under an access licence from a water
                    management area or water source that is different to that
                    specified in the extraction component for the licence if the person
                    does so in accordance with the consent of the Minister given in
                    circumstances referred to in section 71W (2) (b) or (c).
              (7)   A person who has the management or control of a water supply
                    work that is nominated under section 71W for an access licence
                    and who takes water by means of that water supply work is not
                    guilty of an offence under this section by reason only of not being
                    the holder of the access licence.
[42]   Section 368 Appeals to Land and Environment Court
       Insert "or local water utility" after "major utility" in section 368 (1) (m).
[43]   Section 372 Functions of Ministerial Corporation
       Insert after section 372 (1) (a):
                     (a1) to construct, maintain and operate gauging stations and
                            other monitoring equipment,
[44]   Schedule 1A Access Register
       Insert after clause 1 (1) (d):
                      (e) any adaptive environmental water condition to which the
                            licence, or a part of the licence, is subject.
[45]   Schedule 1A, clause 2 (3) (a)
       Omit "and a description of the dealing, and".
       Insert instead ", a description of the dealing and the time and date of the
       recording.".
[46]   Schedule 1A, clause 2 (3) (b)
       Omit the paragraph.




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Water Management Amendment Bill 2005

Amendment of Water Management Act 2000                                 Schedule 1




[47]   Schedule 1B
       Insert after Schedule 1A:

       Schedule 1B           Provisions relating to exit from
                             co-held access licence
                                                                     (Section 74 (7))
        1    Definitions
                   In this Schedule:
                   extinguished holdings means the holdings in an access licence
                   extinguished by the Minister under section 74.
                   new access licence means an access licence granted by the
                   Minister under section 74 (1).
                   original access licence has the meaning given by section 74 (1).
        2    Share component of new access licence
                   The share component of the new access licence:
                   (a) in a case where all the co-holders consented to the
                         application under section 74 (1)--is to be allocated
                         between the original access licence and the new access
                         licence in accordance with the directions in the
                         application, or
                   (b) in a case where co-holders who hold a majority of the
                         holdings under the original access licence consented to the
                         application under section 74 (1)--is to be allocated
                         between the original access licence and the new access
                         licence in the same proportions as the extinguished
                         holdings bear to the whole of the holdings in the original
                         access licence, or
                   (c) in a case where co-holders holding a majority of the water
                         entitlements under the original access licence did not
                         consent to the application under section 74 (1)--the share
                         component for the original access licence is to be
                         distributed between the original access licence and the new
                         access licence in accordance with the order of the Supreme
                         Court under section 74.




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Schedule 1      Amendment of Water Management Act 2000




          3   Extraction component of new access licence
              (1)   If the extraction component of the original access licence did not
                    specify a volume limit or some other kind of restriction on the
                    amount of water to be extracted, the new access licence is to have
                    the same extraction component as applied to the original access
                    licence.
              (2)   If the extraction component of the original access licence
                    specified a volume limit or some other kind of restriction on the
                    amount of water to be extracted, the extraction component of the
                    new access licence:
                     (a) in a case where all the co-holders consented to the
                           application under section 74 (1)--is to be allocated
                           between the original access licence and the new access
                           licence in accordance with the directions in the
                           application, or
                    (b) in a case where co-holders who hold a majority of the
                           holdings under the original access licence consented to the
                           application under section 74 (1)--is to be allocated
                           between the original access licence and the new access
                           licence in the same proportions as the extinguished
                           holdings bear to the whole of the holdings in the original
                           access licence, or
                     (c) in a case where co-holders holding a majority of the water
                           entitlements under the original access licence did not
                           consent to the application under section 74 (1)--the
                           extraction component for the original access licence is to
                           be distributed between the original access licence and the
                           new access licence in accordance with the order of the
                           Supreme Court under section 74.
          4   Water allocation account for new access licence
                    The water allocations for a water allocation account for an
                    original access licence and new access licence are to be adjusted
                    as follows:
                    (a) in a case where all the co-holders consented to the
                           application under section 74 (1)--the water standing to the
                           credit of the water allocation account for the original
                           access licence is to be distributed between the water
                           allocation accounts for the original access licence and the
                           new access licence in accordance with the directions in the
                           application,




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Water Management Amendment Bill 2005

Amendment of Water Management Act 2000                                  Schedule 1




                  (b)   in a case where co-holders who hold a majority of the
                        holdings under the original access licence consented to the
                        application under section 74 (1)--the water standing to the
                        credit of the water allocation account for the original
                        access licence is to be distributed between the water
                        allocation accounts for the original access licence and the
                        new access licence in the same proportions as the
                        extinguished holdings bear to the whole of the holdings in
                        the original access licence,
                  (c)   in a case where co-holders holding a majority of the water
                        entitlements under the original access licence did not
                        consent to the application under section 74 (1)--the water
                        standing to the credit of the water allocation account for
                        the original access licence is to be distributed between the
                        water allocation accounts for the original access licence
                        and the new access licence in accordance with an order of
                        the Supreme Court under section 74 (4).
       5    Conditions of new licence
                  A new access licence, at the time at which it is granted, is subject
                  to the same mandatory conditions to which the original access
                  licence was subject at that time.
       6    Nominated water supply work for new access licence
                  A water supply work nominated in relation to an original access
                  licence is taken to be nominated in relation to the new access
                  licence unless a different water supply work is nominated in
                  accordance with this Act or an order of the Supreme Court made
                  under section 74 provides otherwise.
       7    Security interests relating to new access licences
            (1)   A dealing under section 74 is not to be recorded in the register
                  unless the consent of any holder of a security interest in the
                  extinguished holdings of the original access licence has been
                  obtained.
            (2)   Any security interests that subsisted in the extinguished holdings,
                  as in force immediately before they were extinguished, become
                  equivalent interests in the new access licence.




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                 Water Management Amendment Bill 2005

Schedule 1       Amendment of Water Management Act 2000




[48]   Schedule 9 Savings, transitional and other provisions
       Insert at the end of clause 1 (1):
                            Water Management Amendment Act 2005
[49]   Schedule 9, Part 5
       Insert after Part 4 of Schedule 9:

       Part 5       Provisions consequent on enactment of
                    Water Management Amendment Act 2005
       70    Definition
                    In this Part, amending Act means the Water Management
                    Amendment Act 2005.
       71    Management plans
              (1)   Any management plan (and any amendment of a management
                    plan) that was published in the Gazette before the
                    commencement of this clause is taken to have been validly made
                    and to be valid on and from the date that it was so published.
              (2)   Anything done or omitted to be done before the commencement
                    of this clause pursuant to a management plan or amendment of a
                    management plan referred to in subclause (1) (or done or omitted
                    purportedly in pursuance of such a plan or amendment) is taken
                    on and from the time at which it was done or omitted to be done
                    to have been validly done or validly omitted to be done.
              (3)   In this clause, a reference to a management plan, or an
                    amendment of a management plan, includes a reference to a
                    purported management plan or a purported amendment of a
                    management plan.
[50]   Schedule 10 Conversion of former entitlements to access licences and
       approvals
       Omit clause 3 (1) (a). Insert instead:
                    (a) to the extent to which it entitles any person or body to take
                          a specified quantity of water, by an access licence held by
                          that person or body (subject to such of the conditions of the
                          entitlement as are applicable to an access licence):
                            (i) for the quantity of water so specified, or
                           (ii) if the relevant management plan, and regulations
                                  made for the purposes of this paragraph, indicate
                                  that a different quantity of water calculated in


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Water Management Amendment Bill 2005

Amendment of Water Management Act 2000                                    Schedule 1




                                    accordance with a specified methodology may be
                                    taken under an access licence issued in relation to
                                    the water management area or water source to which
                                    the management plan applies--for a different
                                    quantity of water calculated in accordance with that
                                    methodology, and
[51]   Schedule 10, clause 3 (3)
       Insert after clause 3 (2):
              (3)    An access licence that replaces an entitlement may provide for a
                     specified reduction over a specified period of the quantity of
                     water that the holder of the licence is entitled to take or of the
                     share component of the licence if the relevant management plan
                     and any regulations made for the purposes of this subclause allow
                     the licence to provide for those matters.
[52]   Schedule 10, clause 4 (3) and (4)
       Insert after clause 4 (2):
              (3)    The regulations may amend Schedule 11 so as to insert, amend or
                     omit matter in Column 1, 2, 3 or 4 of that Schedule to make
                     provision for categories and subcategories of access licence
                     prescribed by the regulations (as referred to in section 57 (l) and
                     (2)).
              (4)    Despite subclause (3), if an entitlement has been replaced in
                     accordance with this Act before the commencement of an
                     amendment to Schedule 11 made pursuant to that subclause,
                     Schedule 11 as in force at the time the entitlement was replaced
                     continues to apply in relation to that entitlement.
[53]   Schedule 10, clause 9A
       Insert after clause 9:
       9A     Conditions relating to food safety and essential dairy care
              (1)    If an entitlement authorised water to be extracted for the purposes
                     of food safety or essential dairy care at times of low flows when
                     extraction of the water would not otherwise be allowed, an access
                     licence that replaces that entitlement is taken to contain the same
                     authorisation.
              (2)    An access licence referred to in subclause (1) is also subject to a
                     mandatory condition that the authorisation ceases to have effect
                     if the activity for which the extraction of water is permitted
                     ceases to be conducted at the same location or is not carried out



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                 Water Management Amendment Bill 2005

Schedule 1       Amendment of Water Management Act 2000




                    in the same manner as it was carried out immediately before the
                    entitlement concerned was replaced by the access licence.
[54]   Schedule 10, clause 13 (3) (b)
       Omit "the licence relates".
       Insert instead "all the former entitlements related".
[55]   Schedule 10, clause 13 (3) (c)
       Omit the paragraph. Insert instead:
                    (c) a quantity of water calculated on the basis of the current
                         yield of the water management works controlled or
                         managed under all the former entitlements by the local
                         water utility by which the licence is taken to be held.
[56]   Schedule 10, clause 16 Entitlements relating to bores
       Insert at the end of clause 16:
              (2)   If the holder of a licence under Part 5 of the 1912 Act has been
                    taking water from a different water source to that authorised by
                    the licence because of erroneous location data, an access licence
                    that is taken to replace that licence may be issued with a share
                    component or extraction component (or both) that refers to the
                    different water source rather than to the water source referred to
                    in the replaced licence.
              (3)   A licence under Part 5 of the 1912 Act which, immediately before
                    the appointed day, related to a bore that intersects two water
                    sources that vertically abut each other is taken to have been
                    replaced by:
                     (a) an access licence that specifies in its share component the
                          water source that is the main source of extraction of water,
                          and
                    (b) a water supply work approval.
[57]   Schedule 10, clause 19
       Omit "24" from clause 19 (11). Insert instead "36".




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Water Management Amendment Bill 2005

Amendment of Water Management Act 2000                                 Schedule 1




[58]   Schedule 12
       Insert after Schedule 11:

       Schedule 12            Amendment of management plans
                                                                     (Section 42 (3))

       Part 1       Amendment relating to adaptive
                    environmental water
         1   Management plans to be amended
                    The management plans to which this Part applies are all
                    management plans made before the commencement of this Part.
         2   Amendment of management plans relating to adaptive
             environmental water
                    Each management plan to which this Part applies is amended by
                    omitting subclause (2) of the clause titled "Adaptive
                    environmental water" and by inserting instead the following
                    subclauses:
                    (2)   The Minister may grant an access licence in a water source
                          to which this Plan applies if the licence is subject to an
                          adaptive environmental water condition and arises through
                          water savings in the system made in that water source as
                          referred to in section 8C (1) of the Act.
                  (2A)    The Minister may change the category or subcategory of
                          an access licence in a water source to which this Plan
                          applies if the licence is subject to an adaptive
                          environmental water condition that arises through water
                          savings as referred to in section 8D of the Act.

       Part 2       Amendment relating to planned
                    environmental water
         3   Management plans to be amended
                    The management plans to which this Part applies are all
                    management plans made before the commencement of this Part.




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                Water Management Amendment Bill 2005

Schedule 1      Amendment of Water Management Act 2000




          4   Amendment of management plans relating to planned
              environmental water
                   Each management plan to which this Part applies (other than the
                   Water Sharing Plan for the Toorumbee Creek Water Source
                   2003) is amended by inserting after the last clause (with
                   appropriate numbering) in the Part titled "Amendment of this
                   Plan" the following clause:
                          Amendment relating to planned environmental water
                   (1)    The Minister may amend this Plan to provide for the
                          recovery of planned environmental water as follows:
                           (a) the recovery is only to apply where the Minister has
                                cancelled an access licence held by the Minister in
                                accordance with section 8A of the Act,
                          (b) the amount of additional water to be provided as
                                planned environmental water is to be equivalent to
                                the annual average extraction of water under the
                                cancelled licence over the long-term,
                           (c) the average annual long-term availability of water
                                for the remaining access licences that relate to the
                                water source concerned is to be reduced by the
                                average annual long-term extraction of water under
                                the cancelled licence.
                   (2)    The Minister may amend this Plan to specify the purposes
                          for which planned environmental water committed under
                          section 8A of the Act is to be used.
          5   Amendment of Water Sharing Plan for the Toorumbee Creek Water
              Source 2003
                   The Water Sharing Plan for the Toorumbee Creek Water Source
                   2003 is amended by inserting as the final Part (with appropriate
                   Part and clause numbering) the following Part:

                   Part         Amendment of this Plan
                          Amendment relating to planned environmental water
                   (1)    The Minister may amend this Plan to provide for the
                          recovery of planned environmental water as follows:
                           (a) the recovery is only to apply where the Minister has
                                cancelled an access licence held by the Minister in
                                accordance with section 8A of the Act,



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Water Management Amendment Bill 2005

Amendment of Water Management Act 2000                              Schedule 1




                        (b)   the amount of additional water to be provided as
                              planned environmental water is to be equivalent to
                              the annual average extraction of water under the
                              cancelled licence over the long-term,
                        (c)   the average annual long-term availability of water
                              for the remaining access licences that relate to the
                              water source concerned is to be reduced by the
                              average annual long-term extraction of water under
                              the cancelled licence.
                  (2)   The Minister may amend this Plan to specify the purposes
                        for which planned environmental water committed under
                        section 8A of the Act is to be used.

      Part 3      Amendment of management plans relating
                  to floodplain harvesting
       6    Management plans to be amended
                  The management plans to which this Part applies are the
                  following:
                   (a) Water Sharing Plan for the Adelong Creek Water Source
                        2003,
                  (b) Water Sharing Plan for the Apsley River Water Source
                        2003,
                   (c) Water Sharing Plan for the Castlereagh River above
                        Binnaway Water Source 2003,
                  (d) Water Sharing Plan for the Commissioners Waters Water
                        Source 2003,
                   (e) Water Sharing Plan for the Coopers Creek Water Source
                        2003,
                   (f) Water Sharing Plan for the Dorrigo Plateau Surface
                        Water Source and Dorrigo Basalt Groundwater Source
                        2003,
                  (g) Water Sharing Plan for the Gwydir Regulated River Water
                        Source 2002,
                  (h) Water Sharing Plan for the Hunter Regulated River Water
                        Source 2003,
                   (i) Water Sharing Plan for the Jilliby Jilliby Creek Water
                        Source 2003,
                   (j) Water Sharing Plan for the Kangaroo River Water Source
                        2003,



                                                                         Page 27
                Water Management Amendment Bill 2005

Schedule 1      Amendment of Water Management Act 2000




                   (k)    Water Sharing Plan for the Karuah River Water Source
                          2003,
                    (l)   Water Sharing Plan for the Lachlan Regulated River
                          Water Source 2003,
                   (m)    Water Sharing Plan for the Macquarie and Cudgegong
                          Regulated Rivers Water Source 2003,
                   (n)    Water Sharing Plan for the Mandagery Creek Water
                          Source 2003,
                   (o)    Water Sharing Plan for the Murrumbidgee Regulated
                          River Water Source 2003,
                   (p)    Water Sharing Plan for the New South Wales Murray and
                          Lower Darling Regulated Rivers Water Sources 2003,
                   (q)    Water Sharing Plan for the Ourimbah Creek Water Source
                          2003,
                    (r)   Water Sharing Plan for the Phillips Creek, Mooki River,
                          Quirindi Creek and Warrah Creek Water Sources 2003,
                    (s)   Water Sharing Plan for the Rocky Creek, Cobbadah,
                          Upper Horton and Lower Horton Water Source 2003,
                    (t)   Water Sharing Plan for the Tarcutta Creek Water Source
                          2003,
                   (u)    Water Sharing Plan for the Tenterfield Creek Water
                          Source 2003,
                   (v)    Water Sharing Plan for the Toorumbee Creek Water
                          Source 2003,
                   (w)    Water Sharing Plan for the Upper Billabong Water Source
                          2003,
                   (x)    Water Sharing Plan for the Upper Brunswick River Water
                          Source 2003,
                   (y)    Water Sharing Plan for the Upper Namoi and Lower
                          Namoi Regulated River Water Sources 2003,
                   (z)    Water Sharing Plan for the Wandella Creek Water Source
                          2003,
                  (aa)    Water Sharing Plan for the Wybong Creek Water Source
                          2003.
          7   Amendment of management plans relating to floodplain
              harvesting
                   Each management plan to which this Part applies (other than the
                   Plan referred to in clause 6 (v)) is amended by inserting as the



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Water Management Amendment Bill 2005

Amendment of Water Management Act 2000                                Schedule 1




                  final clause (with appropriate numbering) in the Part titled
                  "Amendment of this Plan" the following clause:
                        Amendment of Plan relating to floodplain harvesting
                        The Minister may amend this Plan so as to provide for the
                        floodplain harvesting of water by amending the waters or
                        water sources to which this Plan applies and by
                        consequential amendments so long as the amendments:
                         (a) if the Plan has already taken into consideration
                              floodplain harvesting extractions, do not affect the
                              outcomes of the long-term extraction limit specified
                              in the Plan, or
                        (b) if the Plan has not already taken into consideration
                              floodplain harvesting extractions, do not allow more
                              water being taken pursuant to access licences for
                              floodplain harvesting than permitted under
                              Schedule F to the Agreement within the meaning of
                              the Murray-Darling Basin Act 1992.
       8    Amendment of Water Sharing Plan for the Toorumbee Creek Water
            Source 2003
                  The Water Sharing Plan for the Toorumbee Creek Water Source
                  2003 is amended by inserting as the final clause (with appropriate
                  numbering) the following clause:
                        Amendment of Plan relating to floodplain harvesting
                        The Minister may amend this Plan so as to provide for the
                        floodplain harvesting of water by amending the waters or
                        water sources to which this Plan applies and by
                        consequential amendments so long as the amendments:
                         (a) if the Plan has already taken into consideration
                              floodplain harvesting extractions, do not affect the
                              outcomes of the long-term extraction limit specified
                              in the plan, or
                        (b) if the Plan has not already taken into consideration
                              floodplain harvesting extractions, do not allow more
                              water being taken pursuant to access licences for
                              floodplain harvesting than permitted under
                              Schedule F to the Agreement within the meaning of
                              the Murray-Darling Basin Act 1992.




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                 Water Management Amendment Bill 2005

Schedule 1       Amendment of Water Management Act 2000




[59]   Dictionary
       Omit "section 71L" from the definition of access licence dealing principles.
       Insert instead "section 71Z".
[60]   Dictionary
       Insert in alphabetical order:
                     adaptive environmental water condition means a condition
                     imposed on an access licence of a type referred to in section 8 (1)
                     (b).
[61]   Dictionary
       Omit "Land and Water Conservation" from the definition of Department.
       Insert instead "Natural Resources".
[62]   Dictionary
       Insert after paragraph (d) of the definition of general dealing:
                    (da) the grant of an access licence on an application under
                           section 74,
[63]   Dictionary
       Insert after paragraph (c) of the definition of Ministerial action:
                     (ca) the grant of an access licence under section 8C or the
                           imposition, revocation or amendment of an adaptive
                           environmental water condition under section 8B, 8C or
                           8D,




Page 30
Water Management Amendment Bill 2005

Amendment of Water Management Act 2000 relating to irrigation             Schedule 2
corporations



Schedule 2             Amendment of Water Management Act
                       2000 relating to irrigation corporations
                                                                             (Section 3)
[1]    Section 71ZA
       Insert after section 71Z:
      71ZA   Removal of certain restrictions on dealings relating to irrigation
             corporations
              (1)   This section applies only in respect of regulated river (high
                    security) access licences and regulated river (general security)
                    access licences held by an irrigation corporation, but does not
                    apply to any subcategory of those categories of access licence.
              (2)   The Minister may order an irrigation corporation to pay a civil
                    penalty under this section if:
                     (a) any provision of its constitution, of any contract entered
                           into by it with a member of the corporation or of any other
                           document associated with the operation of the corporation
                           (such as transfer rules of the corporation) prevents, or
                    (b) the irrigation corporation conducts its operations so as to
                           prevent,
                    arrangements being made for the reduction in the share
                    component of an access licence held by it for the purpose of
                    permanently transferring a member's entitlement to water under
                    the access licence to another access licence that is not held by the
                    irrigation corporation.
              (3)   Subsection (2) does not apply to a provision referred to in
                    subsection (2) (a), or to the conduct of the operations of an
                    irrigation corporation in a manner, that prevents a transfer that
                    would result in the share component of an access licence held by
                    the irrigation corporation being reduced, in any period
                    commencing on 1 July in any year and ending on 30 June
                    (inclusive) in the following year, by an amount of more than 4%
                    of the share component that applied to the access licence at the
                    beginning of that period.
              (4)   If an irrigation corporation holds more than one access licence to
                    which this section applies, the percentage referred to in
                    subsection (3) is to be calculated on the basis of the combined
                    share component of all of those access licences held by the
                    corporation.




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                Water Management Amendment Bill 2005

Schedule 2      Amendment of Water Management Act 2000 relating to irrigation
                corporations



              (5)   The regulations may alter the percentage of share component
                    referred to in subsection (3).
              (6)   A regulation that increases the percentage of the share component
                    applying under subsection (3) is to provide for the increase to
                    take effect no earlier than 6 months after the regulation
                    commences.
              (7)   The Minister may order a civil penalty to be paid under this
                    section of an amount not exceeding $500,000 and a further civil
                    penalty of an amount not exceeding $20,000 to be paid for each
                    day that the circumstances giving rise to the initial civil penalty
                    continue to exist.
              (8)   For the purpose of enabling compliance with subsection (2), an
                    irrigation corporation may amend any water supply contract to
                    which it is a party.
              (9)   Any amendment of a water supply contract under subsection (8)
                    is to be notified by the irrigation corporation to the member of the
                    corporation who is a party to the contract and is taken to have
                    been accepted by the member when notification is served on the
                    member.
             (10)   No claim, action or demand may be made, asserted or taken
                    against an irrigation corporation for anything done by the
                    corporation in accordance with this section.
             (11)   In this section, water supply contract means a contract entered
                    into by an irrigation corporation with a member of the
                    corporation relating to the supply of water to the member by the
                    corporation.
[2]   Section 368 Appeals to Land and Environment Court
      Insert after section 368 (1) (l):
                    (la) a decision ordering an irrigation corporation to pay a civil
                           penalty to the Minister,




Page 32
Water Management Amendment Bill 2005

Amendment of Protection of the Environment Operations (General)          Schedule 3
Regulation 1998



Schedule 3             Amendment of Protection of the
                       Environment Operations (General)
                       Regulation 1998
                                                                            (Section 4)
      Clause 56A
      Insert after clause 56:
     56A     Exemption from water pollution offence in relation to cold water
             releases
                    Section 120 of the Act does not apply to the release of water that
                    is more than 2 degrees Celsius colder than the water into which it
                    is discharged if the water is released from a water supply work
                    pursuant to an approval under the Water Management Act 2000
                    that contains one or more conditions relating to the work of a type
                    specified in section 100 (3) of that Act.




                                                                             Page 33


 


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