Government Gazette No. S 1 Tuesday 4 January 2005 By Authority. Victorian Government Printer

Water Act 1989 BULK ENTITLEMENT (OVENS SYSTEM Ð MOYHU, OXLEY AND Ð NORTH EAST WATER) CONVERSION ORDER 2004 CONTENTS 1. CITATION 2. EMPOWERING PROVISIONS 3. COMMENCEMENT 4. DEFINITIONS 5. CONVERSION TO BULK ENTITLEMENTS 6. BULK ENTITLEMENT 7. RESTRICTING SUPPLY 8. ADJUSTMENT OF SCHEDULES 9. OPERATIONAL ARRANGEMENTS 10. GRANTING WATER CREDITS 11. METERING PROGRAM 12. REPORTING REQUIREMENTS 13. WATER SUPPLY SOURCE COST 14. WATER ACCOUNTING 15. WATER RESOURCE MANAGEMENT COSTS 16. DUTY TO KEEP ACCOUNTS 17. DUTY TO MAKE PAYMENTS 18. DATA 19. DISPUTE RESOLUTION

SPECIAL 2 S 1 4 January 2005 Victoria Government Gazette

Water Act 1989 BULK ENTITLEMENT (OVENS SYSTEM Ð MOYHU, OXLEY AND WANGARATTA Ð NORTH EAST WATER) CONVERSION ORDER 2004 I, John Thwaites, Minister for Water, under the provisions of the Water Act 1989, make the following Order:Ð 1. CITATION This Order may be cited as the Bulk Entitlement (Ovens System Ð Moyhu, Oxley and Wangaratta Ð North East Water) Conversion Order 2004. 2. EMPOWERING PROVISIONS This Order is made under sections 43 and 47 of the Water Act 1989. 3. COMMENCEMENT This Order comes into operation on the day published in the Government Gazette. 4. DEFINITIONS In this Order Ð ÒActÓ means the Water Act 1989; ÒAHDÓ means the Australian Height Datum; ÒAgreement VolumeÓ means the volume of water available under an agreement made under section 124(7) of the Act; ÒAuthorityÓ means the North East Region Water Authority; Òdistribution systemÓ means the channels, pipes and other works, and the natural or modified waterways which are used to transport water from the headworks system; Òentitlement holderÓ means a person or water agency holding a bulk entitlement under the Act; Òheadworks systemÓ means Ð (a) Lake William Hovell, Lake Buffalo and the associated water supply works and other assets, as shown from time to time in the Asset Register of Goulburn-Murray Rural Water Authority as owner of the storage, and (b) the system waterway; ÒlicenceÓ means any licence granted under Part 4 of the Act; ÒOrderÓ means this Bulk Entitlement (Ovens System Ð Moyhu, Oxley and Wangaratta Ð North East Water) Conversion Order 2004; ÒOvens BasinÓ means the area of land previously designated by the Australian Water Resources Council (AWRC) as Basin Number 3 in the South-East Coast Division of the AWRC Australian Continental Drainage Divisions; ÒOvens Basin Water AccountsÓ means an annual report, required by the Minister, on compliance by entitlement holders and licensees, in the Ovens Basin, with the terms of their bulk entitlements or licences; ÒOvens Entitlement HolderÓ means Goulburn-Murray Rural Water Authority as holder of the Bulk Entitlement (Ovens System Ð Goulburn-Murray Water) Conversion Order 2004; ÒOvens SystemÓ means the water supply systems supplied from Lake Buffalo, Lake William Hovell, the inflows to these storages and the flows harvested by the Buffalo, Ovens and King Rivers and tributaries downstream of the storages; ÒResource ManagerÓ means any person appointed by Instrument by the Minister under section 43A(1)(b) of the Act to carry out the functions in accordance with the terms and conditions specified in the Instrument of Appointment; Victoria Government Gazette S 1 4 January 2005 3

ÒrestrictionÓ means curtailing the rate of supply of water to primary entitlements specified in ÒBulk Entitlement (Ovens System Ð Goulburn-Murray Water) Conversion Order 2004Ó, when the water requirements of primary entitlements under a given level of development cannot be fully supplied; Òsource costÓ means the total annual cost to Ð (a) operate, maintain and administer, and (b) make releases from, and (c) keep an account of the shares of components available to the entitlement holders at any one time of, and (d) meet the finance charges including repayment of principal, calculated by reference to the weighted average cost of borrowing (based on internal Treasury arrangements and externally borrowed funds) associated with any new or replacement works undertaken on, and (e) make an appropriate allowance for asset consumption, using the renewal annuity approach or other asset consumption methodology directed by the Minister to apply to the authorities, associated with, and (f) assist in managing the catchment for water supply purposes to protect the quality of water diverted to, and stored in, and (g) contribute to the cost of salinity mitigation schemes along the River Murray operated by Victoria, commensurate with the extent to which entitlement holders in the Ovens Basin rather than other water users in Victoria generate a need for these schemes, and (h) manage the stream gauging stations necessary to operate, and (i) implement, the program to manage the environmental effects of, the shared component or components of the headworks system; ÒStorage OperatorÓ means any person appointed by Instrument by the Minister under section 43A(1)(a) of the Act to carry out the functions in accordance with the terms and conditions specified in the Instrument of Appointment; Òsystem waterwayÓ means the Buffalo River downstream of Lake Buffalo, the downstream of Lake William Hovell and the Ovens River from the Buffalo River confluence to the confluence with River Murray, including the pools formed immediately upstream of William Hovell and Buffalo dam; ÒyearÓ means the 12 months commencing 1 July. 5. CONVERSION TO BULK ENTITLEMENTS All of the AuthorityÕs entitlement to water from the system waterway is converted to a bulk entitlement on the specified matters and conditions set out in this Order. 6. BULK ENTITLEMENT The Authority may take water from: (a) the Ovens River downstream of the King River confluence in order to supply the township of Wangaratta up to a maximum annual volume of 7720 ML at a rate not exceeding 79 ML/d; and (b) the King River downstream of Lake William Hovell in order to supply the township of Ð (i) Oxley up to a maximum annual volume of 66 ML at a rate not exceeding 1.1 ML/d; and (ii) Moyhu up to a maximum annual volume of 46 ML at a rate not exceeding 1.5 ML/d, subject to the restriction policy specified under clause 7. 4 S 1 4 January 2005 Victoria Government Gazette

7. RESTRICTING SUPPLY 7.1 If in any year the Ovens Entitlement Holder is unable to supply the water demands of the primary entitlements specified in ÒBulk Entitlement (Ovens System Ð Goulburn-Murray Water) Conversion Order 2004Ó, then the Authority will be required to restrict supplies to its customers in accordance with the restriction policy set out in Schedule 1 to this Order. 7.2 The Authority's annual entitlement cannot be restricted in any year unless the Ovens Entitlement Holder advises the Authority in writing within 5 working days of a decision to restrict the supplies referred to under sub-clause 7.1. 7.3 The Authority is not eligible for credits for any amount of the Authority's annual entitlement not taken due to any restrictions imposed under sub-clause 7.1. 8. ADJUSTMENT OF SCHEDULES 8.1 The Authority may apply to the Minister to amend: (a) any part of Schedule 1 to this Order; (b) any part of Schedule 2 to this Order. 8.2 An application under sub-clause 8.1 must set out the objectives of, and reasons for, the proposed amendment. 8.3 The Minister may: (a) approve part or all of any application under sub-clause 8.2; or (b) require the Authority to Ð (i) provide further information; or (ii) re-submit the application in a different form; or (c) not approve the application. 9. OPERATIONAL ARRANGEMENTS 9.1 The Authority and the Ovens Entitlement Holder must endeavour to agree on operational arrangements for the supply of water under this entitlement during periods of: (a) average and above average climatic conditions, and (b) dry climatic conditions when restrictions on water supplies may be warranted. 9.2 If the Authority and the Ovens Entitlement Holder (the parties), have not reached agreement under sub-clause 9.1 within 12 months of the date of this Order being ratified, any of them may give written notice to the other party requiring the issue of operating arrangements to be determined as a dispute as provided for under clause 19. 10. GRANTING WATER CREDITS 10.1 On the application of the Authority, the Minister may grant the Authority credit for any water: (a) taken from the system waterway and returned to the system waterway; and/or (b) delivered from another distribution system to the system waterway; against the total amount of its entitlement, as set out in this clause. 10.2 The Minister may grant a credit for releases made directly to the system waterway from the Authority's distribution system if: (a) the return flow is treated to a high standard or is at least of similar quality to the water taken by the Authority from the system waterway; and (b) the return flow is considered by the Minister to be useful in meeting passing flows or other Authorities' commitments to supply water. 10.3 The Minister may, by written notice to the Authority, specify any period or periods during which the Authority may not redeem credit against its annual entitlement. Victoria Government Gazette S 1 4 January 2005 5

11. METERING PROGRAM 11.1 The Authority must propose to the Minister within 12 months of the date of this Order a metering program to demonstrate compliance with this bulk entitlement with respect to all water taken by the Authority under this bulk entitlement. 11.2 The Minister may: (a) approve the program proposed under sub-clause 11.1; or (b) require the Authority to amend the proposed program. 11.3 The Minister may at any subsequent time, require the Authority Ð (a) to review the program approved by the Minister under sub-clause 11.2(a) if, in the MinisterÕs opinion, it is, no longer appropriate; and (b) to propose an amended program to the Minister for approval. 11.4 The Authority must, at its cost, and in accordance with any guidelines issued from time to time by the Minister: (a) implement and maintain the approved metering program; and (b) maintain metering equipment and associated measurement structures in good condition; and (c) ensure that metering equipment is periodically re-calibrated; and (d) if rating curves are used to calculate flows, ensure that the curves are regularly checked and, if necessary, revised; and (e) keep a record of all work undertaken under paragraphs (a), (b), (c) and (d). 12. REPORTING REQUIREMENTS 12.1 The Authority may be required to report on any or all of the following: (a) the daily amounts of water taken from the system waterway under this entitlement; (b) the annual amounts of water taken from the system waterway under this entitlement; (c) any credits granted under clause 10; (d) the approval, amendment and implementation of the metering program approved under sub-clause 11.2; (e) any temporary or permanent transfer of all or part of this bulk entitlement; (f) any period of restriction and the level of restrictions on supplies to Moyhu, Oxley and Wangaratta; (g) any amendment to this bulk entitlement; (h) any new bulk entitlements granted to the Authority with respect to Moyhu, Oxley and Wangaratta; (i) any failure by the Authority to comply with any provision of this bulk entitlement; (j) any difficulties experienced or anticipated by the Authority in complying with this bulk entitlement and any remedial action taken or proposed. 12.2 The Minister may require the Authority to report on all or any of the matters set out in sub- clause 12.1: (a) in writing or in such electronic form as may be agreed between the Authority and the Minister; and (b) within 14 days of receiving the Minister's written request. 12.3 The Authority must, for the period of the preceding year, report in its Annual Report on each of the matters set out in sub-clause 12.1, except: (a) paragraph (a) of sub-clause 12.1; and (b) with the approval of the Minister, any particular failure referred to in paragraph (i) of sub-clause 12.1. 6 S 1 4 January 2005 Victoria Government Gazette

12.4 The Resource Manager may require the Authority to report from time to time, on all or any of the matters set out in paragraphs (a) to (i) of sub-clause 12.1. 12.5 Any report under sub-clause 12.4 must be made: (a) in such form as may be agreed between the Authority and the Resource Manager; and (b) unless the Authority and the Resource Manager agree otherwise Ð (i) within 24 hours of the Authority receiving a request for a report on any matter set out in paragraphs (a) and (b) of sub-clause 12.1; or (ii) within 14 days of the Authority receiving a request for a report on any matter set out in paragraph (c) to (i) of sub-clause 12.1. 13. WATER SUPPLY SOURCE COST 13.1 Subject to sub-clause 13.3, the Authority must pay the Ovens Entitlement Holder a storage annual charge, calculated as follows: CNE = $ [{(A/E)xCs} + R] where

CNE is the storage annual charge ($) payable by the Authority. A is the Authority's total annual entitlement (ML) specified under clause 6. E is the total maximum annual entitlement volume (ML) as specified in Schedule 2 to this Order. Cs is the headworks system source cost estimated by the Storage Operator as specified in ÒBulk Entitlement (Ovens System Ð Goulburn-Murray Water) Conversion Order 2004Ó, for the year for which the charge is calculated ($). R is the return to headworks system equity holders for the year for which the charge is calculated ($). 13.2 The Authority must pay the charge, whether or not its annual entitlement is restricted in any year. 13.3 Sub-clause 13.1 will not apply until after the implementation of the initial price determination received by the Authority in respect of bulk entitlement under this Order, or until 1 July 2005, whichever occurs first. In the interim period the payment arrangements specified in ÒBulk Entitlement (River Murray Ð Goulburn-Murray Water) Conversion Order 1999Ó, will apply. 14. WATER ACCOUNTING 14.1 For the purpose of determining how much water has been taken by the Authority under its annual entitlement the amounts measured under sub-clause 11.4(a) are conclusive. 14.2 If the equipment referred to in sub-clause 11.4(b) fails for any reason to operate accurately or correctly for any period, the amounts for the purpose of sub-clause 14.1 are deemed to be the same as the average amount taken by the Authority under its annual entitlement for the same period for the preceding three years. 15. WATER RESOURCE MANAGEMENT COSTS 15.1 Subject to sub-clause 16.1, the Authority must pay the Resource Manager a proportion of the costs incurred by the Resource Manager to perform the tasks defined in the relevant Instrument of Appointment. 15.2 The proportion of the costs referred to in sub-clause 15.1 will be the same as the ratio of the Authority's bulk entitlement to the total entitlement that can be supplied from the headworks system by the Ovens Entitlement Holder. 16. DUTY TO KEEP ACCOUNTS 16.1 The Authority is not obliged to make any payment to the Resource Manager under clause 15, unless the Resource Manager chooses to comply with the provisions of this clause relevant to that payment. Victoria Government Gazette S 1 4 January 2005 7

16.2 Separate accounts of all costs and payments must be kept by the Resource Manager in respect to sub-clause 15.1. 16.3 The Resource Manager must, by 1 February in any year, provide the Authority with an estimate, in respect of the ensuing year, of the costs referred to in sub-clause 15.2. 16.4 Accounts required to be kept under this clause must be made available for inspection by the Authority upon request. 17. DUTY TO MAKE PAYMENTS Any amounts payable by the Authority under clauses 13 and 15 must be paid in arrears, within 30 days from the end of the month of the Authority receiving the respective invoices, for amounts payable under the clauses, unless the Authority and the persons to whom the amounts are payable agree otherwise. 18. DATA 18.1 The Minister will use the Minister's best endeavours to ensure that all hydrological and other data required by the Authority to comply with this bulk entitlement are made available to the Authority. 18.2 The Authority must make available data collected for the purpose of the metering program and reporting under clauses 11 and 12 to any person, subject to the person paying any fair and reasonable access fee imposed by the Authority to cover the costs of making the data available. 19. DISPUTE RESOLUTION 19.1 If a difference or dispute arises between the Authority, the Minister, the other entitlement holders, the Storage Operator and the Resource Manager, or any of them (the ÒpartiesÓ), concerning the interpretation or application of this Order, a party may give written notice to another party requiring the matter to be determined by an independent expert. 19.2 The notice requiring that the matter be determined by independent expert may only be given 14 days after the matter has arisen. The independent expert may only commence to determine the matter a further 14 days after the giving of that notice. 19.3 The other entitlement holders, the Storage Operator and the Resource Manager will only be subject to the resolution procedure set out in this clause if they consent to the procedure. 19.4 The independent expert will be either Ð (a) a person agreed to by the parties to the difference or dispute; or (b) if the parties cannot agree, a person nominated by the President of the Institute of Arbitrators, Australia. 19.5 The independent expert must reach a conclusion on the matter within 30 days of it being referred, but has power to extend the period for reaching a conclusion on the matter by a further 30 days. 19.6 The independent expert must send a copy of the conclusion and its supporting reasons to each party to the difference or dispute. 19.7 In any difference or dispute to which the Minister is a party Ð (a) the independent expert must express the conclusion as a recommendation; and (b) the Minister must consider any recommendation made under paragraph (a) before deciding to give a direction under s 307 or to take any other action under the Act in relation to the difference or dispute. 8 S 1 4 January 2005 Victoria Government Gazette

19.8 In any difference or dispute to which the Minister is not a party, any conclusion by an independent expert is final and binding on the parties. 19.9 The Authority may request the Minister to determine the apportionment of the costs of and incidental to every reference, including the costs of the independent expert. Dated 17 December 2004 JOHN THWAITES Minister for Water Note: An explanatory note that accompanies this Order is available from the Department of Sustainability and Environment.

Schedule 1 Restriction Policy Where the Authority is unable to supply the full water requirements of its customers, it must restrict the supplies in accordance with the following restriction policy: Restriction Supply to urban areas and rural Domestic and Stock licence holders level to be restricted in a manner calculated to reduce usage to supply rates equivalent to## Level 1 Summer urban demand* less 50% of restrictable urban demand** Level 2 Summer urban demand* less 80% of restrictable urban demand** Level 3 Summer urban demand* less 95% of restrictable urban demand** Level 4 Summer urban demand* less 100% of restrictable urban demand**

##Supply restricted by limiting its customers to specific times and the method of external water usage *Summer urban demand means the average actual supply rate in ML per day recorded over the preceding five years in December, January and February. **restrictable urban demand means the summer urban demand less the average actual supply rate in ML per day recorded over the preceding five years in June, July and August.

Schedule 2 Total Entitlement Volume ÒEÓ for purposes of calculating Water Supply Source Cost under sub-clause 13.1 Entitlement holder Entitlement type Entitlement Volume (ML/annum) Goulburn-Murray Primary Ð Irrigation and 26105 Rural Water Authority D&S licences North-East Water Primary Ð Bulk Entitlement 7832 Total Entitlement Volume ÒEÓ 33937 Victoria Government Gazette S 1 4 January 2005 9

Water Act 1989 BULK ENTITLEMENT (OVENS SYSTEM Ð GOULBURN-MURRAY WATER) CONVERSION ORDER 2004 CONTENTS 1. CITATION 2. EMPOWERING PROVISIONS 3. COMMENCEMENT 4. DEFINITIONS 5. CONVERSION TO BULK ENTITLEMENTS 6. BULK ENTITLEMENT 7. LIMITATION ON BULK ENTITLEMENT 8. OBLIGATIONS TO SUPPLY PRIMARY ENTITLEMENTS 9. ADJUSTMENT OF SCHEDULES 10. SHARE OF STORAGE CAPACITY 11. SHARE OF FLOWS 12. ENVIRONMENTAL MINIMUM FLOWS 13. OPERATING ARRANGEMENTS 14. CALCULATING THE FLOW 15. GRANTING WATER CREDITS 16. CHANGES MADE TO LONG-TERM WATER AVAILABILITY 17. ENVIRONMENTAL OBLIGATIONS 18. METERING PROGRAM 19. REPORTING REQUIREMENTS 20. WATER RESOURCE MANAGEMENT COSTS 21. WATER STORAGE AND SUPPLY COSTS 22. DUTY TO KEEP ACCOUNTS 23. DUTY TO MAKE PAYMENTS 24. DATA 25. DISPUTE RESOLUTION 10 S 1 4 January 2005 Victoria Government Gazette

Water Act 1989 BULK ENTITLEMENT (OVENS SYSTEM Ð GOULBURN-MURRAY WATER) CONVERSION ORDER 2004 I, John Thwaites, Minister for Water, under the provisions of the Water Act 1989, make the following Order:Ð 1. CITATION This Order may be cited as the the Bulk Entitlement (Ovens System Ð Goulburn-Murray Water) Conversion Order 2004. 2. EMPOWERING PROVISIONS This Order is made under sections 43 and 47 of the Water Act 1989. 3. COMMENCEMENT This Order comes into operation on the day published in the Government Gazette. 4. DEFINITIONS In this Order Ð ÒActÓ means the Water Act 1989; ÒAgreementÓ means the Murray-Darling Basin Agreement as contained in Schedule 1 of the Murray-Darling Basin Act 1993; ÒAHDÓ means the Australian Height Datum; ÒAuthorityÓ means the Goulburn-Murray Rural Water Authority; Òcap modelÓ means the water resource allocation computer model used to estimate the diversions from the River Murray and the upper tributaries under 1993Ð94 level of development; Òdistribution systemÓ means the channels, pipes and other works, and the natural or modified waterways which are used to transport water from the creek system; Òentitlement holderÓ means a person or water agency holding a bulk entitlement under the Act; Òenvironmental minimum flowsÓ means the flows referred to in clause 12; Òfull supply levelÓ means the AHD level at or below which a storage is designed to be normally operated; ÒgroundwaterÓ means the water defined under Part 1 Section 3(1) of the Act ; Òheadworks systemÓ means: (a) Lake William Hovell, Lake Buffalo and the associated water supply works and other assets, as shown from time to time in the Asset Register of the Authority as owner of the storages, and (b) the system waterway; ÒlicenceÓ means any licence granted under Part 4 of the Act; Òlicensed divertersÓ means persons holding licences under Section 51(1)(a) of the Act; Òlicence volumeÓ means the volume of water available under a licence; ÒMurray-Kiewa-Ovens capÓ means the annual volume of water determined each year by the cap model that Victoria would have diverted under 1993Ð94 levels of development from the River Murray and the upper tributaries; ÒOrderÓ means this Bulk Entitlement (Ovens System Ð Goulburn-Murray Water) Conversion Order 2004; Òother AuthorityÓ means a water authority other than the Authority or any other person holding a bulk entitlement granted under Division 1 of Part 4 of the Act; Victoria Government Gazette S 1 4 January 2005 11

ÒOvens BasinÓ means the area of land previously designated by the Australian Water Resources Council (AWRC) as Basin Number 3 in the South-East Coast Division of the AWRC Australian Continental Drainage Divisions; ÒOvens Basin Water AccountsÓ means an annual report, required by the Minister, on compliance by entitlement holders and licensees, in the Ovens Basin, with the terms of their bulk entitlements or licences; ÒOvens systemÓ means the water supply systems supplied from Lake Buffalo, Lake William Hovell, the inflows to these storages and the flows harvested by the Buffalo, Ovens and King Rivers and tributaries downstream of the storages; Òprimary entitlementÓ means an entitlement or commitment referred to in clause 8; ÒRegisterÓ means the register referred to in section 230 of the Act; Òregulated releaseÓ means any release from Lake William Hovell or Lake Buffalo to the immediate downstream river channel excluding releases made by the Storage Operator Ð (a) for construction or maintenance purposes under non-emergency situations; or (b) to secure the safety of the headworks system under emergency situations; or (c) to pass flood flows that are not diverted from the system waterway and do not contribute to environmental minimum flow commitments; ÒResource ManagerÓ means any person appointed by Instrument by the Minister under section 43A(1)(b) of the Act to carry out the functions in accordance with the terms and conditions specified in the Instrument of Appointment; ÒrestrictionÓ means curtailing the rate of supply of water to primary entitlements when the water requirements of primary entitlements under a given level of development cannot be fully supplied; ÒRiver MurrayÓ means the River Murray to which Victoria has access and which carries regulated water under the Murray-Darling Basin Agreement, including the main course of the Mitta Mitta River downstream ; ÒRiver Murray entitlement holderÓ means a person holding a bulk entitlement under the Act to take water from the River Murray; Òsales waterÓ means any water in excess of a licence volume to which a licence holder may be entitled and is the water referred to in clause 2 of Schedule 1 to this Order; Òsource costÓ means the total annual cost to: (a) operate, maintain and administer, and (b) make releases from, and (c) keep an account of the water available to the entitlement holders at any one time of, and (d) meet the finance charges including repayment of principal, calculated by reference to the weighted average cost of borrowing (based on internal Treasury arrangements and externally borrowed funds) associated with any new or replacement works undertaken on, and (e) make an appropriate allowance for asset consumption, using the renewal annuity approach or other asset consumption methodology directed by the Minister to apply to the Authority and other authorities, associated with, and (f) assist in managing the catchment for water supply purposes to protect the quality of water diverted to, stored in and delivered from, and (g) contribute to the cost of salinity mitigation schemes along the River Murray or elsewhere and operated by or on behalf of Victoria, commensurate with the extent to which entitlement holders in the Broken Basin rather than other water users in Victoria generate a need for these schemes, and 12 S 1 4 January 2005 Victoria Government Gazette

(h) manage the stream gauging stations necessary to operate, and (i) implement, in accordance with sub-clause 18.3, the program to manage the environmental effects of, the components of the headworks system; ÒStorage OperatorÓ means any person appointed by Instrument by the Minister under section 43A(1)(a) of the Act to carry out the functions in accordance with the terms and conditions specified in the Instrument of Appointment; Òsurface waterÓ means the water in the system waterway; Òsystem waterwayÓ means the Buffalo River downstream of Lake Buffalo, the King River downstream of Lake William Hovell and the Ovens River from the Buffalo River confluence to the confluence with the River Murray, including the pools formed immediately upstream of William Hovell dam and Buffalo dam; Òupper tributariesÓ means the River Murray upstream of Lake Hume, the Mitta Mitta River, the Kiewa River and the Ovens River, including the unregulated waterways running into these rivers or direct into the River Murray; ÒVictorian River Health StrategyÓ means the document titled 'Healthy Rivers Healthy Communities & Regional Growth Ð Victorian River Health Strategy' published by the Victorian Department of Natural Resources and Environment, August 2002; ÒyearÓ means the 12 months commencing 1 July. 5. CONVERSION TO BULK ENTITLEMENTS All of the AuthorityÕs entitlement to water from the system waterway is converted to a bulk entitlement on the specified matters and conditions set out in this Order. 6. BULK ENTITLEMENT Provided the Murray-Kiewa-Ovens cap is not exceeded and subject to clause 7, the Authority is entitled to take such annual volume of surface water from the system waterway as is necessary to supply the primary entitlements described in Schedules 1(1), 1(2) and 2 to this Order. 7. LIMITATION ON BULK ENTITLEMENT 7.1 If the accumulated differences since July 1997 between: (a) the volumes of water diverted each year in Victoria from the River Murray and the upper tributaries; and (b) the corresponding volumes of water as estimated by the cap model approach the limit specified in Schedule F of the Agreement then: (i) the Authority and any other River Murray entitlement holder must recommend to the Minister for approval appropriate action to be taken so as to avoid the limit specified in Schedule F of the Agreement being reached; and (ii) the Authority and any other River Murray entitlement holder must take such action as approved by the Minister. 7.2 If: (a) no action is approved and taken under clause 7.1; and (b) the volume of accumulated over-runs less under-runs reaches 15 per cent of long-term average annual diversions from the River Murray and the upper tributaries in the following year, the Authority is only entitled to take the annual volume of surface water necessary to supply the primary entitlements described in Schedules 1(1), 1(2) and 2 to this Order varied as follows: Victoria Government Gazette S 1 4 January 2005 13

(i) the water the Ovens system entitlement holders could divert in that year, less a volume equal to 7 per cent of long-term average annual diversions in the Ovens system by the Authority; (ii) the maximum volume of water required for an allocation of 50 per cent of the maximum allocation for sales water or such other percentage as may be specified by the Minister; and (iii) the minimum volume of water required for an allocation of 100 per cent of licence entitlements as referred to in clause 1 of Schedule 1 to this Order. 8. OBLIGATIONS TO SUPPLY PRIMARY ENTITLEMENTS The Authority must use water taken from the system waterway under this bulk entitlement to supply the following primary entitlements further detailed in Schedules 1 and 2 to this Order: (a) licences and associated sales water supplied from the system waterway; and (b) additional supplies; and (c) entitlements referred to in section 35(2), bulk entitlements granted under Division 1 or 3 of Part 4, and agreements made under section 124(7) of the Act, in accordance with the restriction policy specified in Schedule 3 to this Order. 9. ADJUSTMENT OF SCHEDULES 9.1 The Minister may, from time to time, alter: (a) Schedule 1 to this Order to reflect Ð (i) any new licence allocated under section 51, 52 or 57 of the Act; (ii) any trading between persons holding primary entitlements; (b) Schedule 2 to this Order to reflect any alteration to an entitlement referred to in clause 8. 9.2 The Authority may apply to the Minister to amend all or any of the following: (a) the principles used to determine sales water referred to in Schedule 3 to this Order; (b) any part of Schedule 3 to this Order, and other schedules to this Order that require consequential changes; (c) any part of Schedule 5 to this Order that require changes as a consequence of further analyses resulting in better equations for estimating natural flows. 9.3 An application under sub-clause 9.2 must set out: (a) the objectives of, and reasons for, the proposed amendment; and (b) the results of an assessment of the likely effect of that amendment on the environment. 9.4 The Minister may: (a) approve part or all of any application under sub-clause 9.3; or (b) require the Authority to Ð (i) provide further information; or (ii) re-submit the application in a different form; or (c) not approve the application. 10. SHARE OF STORAGE CAPACITY 10.1 The Authority is entitled to: (a) all of the storage capacity of Lake Buffalo where the total capacity is 24 000 ML at a full supply level of 264.40 metres AHD; and (b) all of the storage capacity of Lake William Hovell where the total capacity is 13 500 ML at a full supply level of 408.14 metres AHD; and 14 S 1 4 January 2005 Victoria Government Gazette

(c) all the water temporarily stored above the full supply level, in each of the headworks storages; as part of its surface water entitlement volume under clause 6. 10.2 If for any reason the Storage Operator declares a changed storage capacity, the Authority is entitled to all of the changed capacity. 11. SHARE OF FLOWS 11.1 In order to supply the entitlements set out in clause 8, and after meeting the environmental minimum flow requirements specified in clause 12, the Authority may take: (a) all the inflows into Lake Buffalo; and (b) all the inflows into Lake William Hovell; and (c) all the other inflows to the system waterway. 11.2 The Authority must not take, as part of this entitlement, any flow in the system waterway, which is being transferred by the holder of any other bulk entitlement or licence. 12. ENVIRONMENTAL MINIMUM FLOWS 12.1 Subject to clauses 12.2 and 16.1, the Authority must provide water from Lake Buffalo and Lake William Hovell, to maintain the following environmental minimum flows: (a) in the King River between Lake William Hovell and Cheshunt: (i) during the months of November to May inclusive, the lower of 20 ML per day or the natural flow generated in all of the catchment upstream of Cheshunt as calculated using the procedure and measured at the compliance stream gauging stations specified in Schedule 5 to this Order, and (ii) during the months of June to October inclusive, the lower of 30 ML per day or the natural flow generated in all of the catchment upstream of Cheshunt as calculated using the procedure and measured at the compliance stream gauging stations specified in Schedule 5 to this Order; (b) in the King River between Cheshunt and the Ovens River confluence (i) during the months of November to May inclusive, the lower of 40 ML per day or the natural flow generated in all of the King River catchment as calculated using the procedure and measured at the compliance stream gauging stations specified in Schedule 5 to this Order, and (ii) during the months of June to October inclusive, the lower of 20 ML per day or the natural flow generated in all of the King River catchment as calculated using the procedure and measured at the compliance stream gauging stations specified in Schedule 5 to this Order; (c) in the Buffalo River between Lake Buffalo and the Ovens River confluence during the months of November to May inclusive, the lower of 60 ML per day or the natural flow generated in all of the Buffalo River catchment as calculated using the procedure and measured at the compliance stream gauging stations specified in Schedule 5 to this Order; (d) in the Ovens River between the Buffalo River confluence and the King River confluence during the months of November to May inclusive, the lower of 154 ML per day or the natural flow generated in all of the Ovens River catchment as calculated using the procedure and measured at the compliance stream gauging stations specified in Schedule 5 to this Order; (e) in the Ovens River downstream of King River confluence (i) during the months of November to May inclusive, the lower of 140 ML per day or the natural flow generated in all of the Ovens River catchment as calculated using the procedure and measured at the compliance stream gauging stations specified in Schedule 5 to this Order, and Victoria Government Gazette S 1 4 January 2005 15

(ii) during the months of June to October inclusive, the lower of 50 ML per day or the natural flow generated in all of the Ovens River catchment as calculated using the procedure and measured at the compliance stream gauging stations specified in Schedule 5 to this Order. 12.2 In any year when Lake Buffalo ceases to spill before the end of November under operational arrangements agreed under clause 13, the Authority may request the Minister to review the environmental minimum flow specified under sub-clause 12.1(e)(i) for that year. 12.3 Any request under sub-clause 12.2 must set out: (a) the reasons for any review of the environmental minimum flow; and (b) the results of an assessment of the likely effect of that review on the environment. 12.4 The Minister may: (a) not agree to the request sought under sub-clause 12.2; or (b) agree to a review sought under sub-clause 12.2 and may require the Authority to provide further information to assist in carrying out the review; or (c) agree to alternative flow arrangements following the review carried out under sub- clause 12.4(b). 12.5 The Storage Operator will maintain accounts of the environmental minimum flow commitments specified in sub-clause 12.1. 13. OPERATING ARRANGEMENTS 13.1 The Authority, the Storage Operator and any person appointed or nominated by the Minister to manage environmental flows (the parties), must endeavour to agree on operational arrangements for the supply of water from the Ovens system to provide supplies to the primary entitlement holders and meet the environmental minimum flow obligations. 13.2 If the parties have not reached agreement on operational arrangements under sub-clause 13.1, within 12 months of this Order being ratified any of them may give written notice to the others, requiring the issue of operational arrangements to be determined as a dispute as provided for under clause 25. 13.3 If the parties agree that a change to the operating arrangements is necessary, they may jointly propose to the Minister an appropriate change to those arrangements. 13.4 A proposal under sub-clause 13.3 must set out the: (a) objectives of, and reasons for, the proposed change; and (b) results of an assessment of the impacts of the proposed change on the supplies to primary entitlements specified under clause 8 and the environment. 13.5 The Minister may: (a) approve the change to the water accounting and operating arrangements proposed under sub-clause 13.3; or (b) require the Authority to amend the proposed accounting and operating arrangements; or (c) require the Authority to Ð (i) review the accounting and operating arrangements approved by the Minister if, in the MinisterÕs opinion, these are no longer appropriate; and (ii) propose amended accounting and operating arrangements to the Minister. 13.6 Subject to clause 6 and the environmental minimum flow rules in clause 12, the Authority must not direct the Storage Operator to release more water from Lake Buffalo and Lake William Hovell than is required to meet the AuthorityÕs commitment to supply primary entitlements unless regulated releases: 16 S 1 4 January 2005 Victoria Government Gazette

(a) are necessary to supply transfers of primary entitlements including losses; and/or (b) are necessary to supply dilution flows to overcome serious water quality concerns; and/or (c) can be made to the Murray system without compromising the supply commitments to primary entitlements. 14. CALCULATING THE FLOW For the purpose of clause 6, the volume taken from the system waterway by the Authority in any year is calculated as the sum of the annual volumes to supply: (a) the licensed diverters from the system waterway; and (b) other bulk entitlements supplied from the Ovens system, less any credits granted under clause 15. 15. GRANTING WATER CREDITS 15.1 The Authority may apply to the Minister for credit of any water: (a) returned to the system waterway of the water taken from the system waterway; and/or (b) delivered from another distribution system to the system waterway; against the total amount of its entitlement, as set out in this clause. 15.2 The Minister may grant a credit for releases made directly to the system waterway from the AuthorityÕs distribution system if: (a) the return flow is treated to a high standard or is at least of same quality to the water taken by the Authority from the system waterway; and (b) the return flow is considered by the Minister as being beneficial in meeting environmental minimum flows or the AuthorityÕs or other AuthoritiesÕ commitments to supply water. 16. CHANGES MADE TO LONG-TERM WATER AVAILABILITY 16.1 When any action which the Minister proposes to take under the Act would have a significant adverse effect on the supplies to the Ovens system entitlement holders, the Minister will: (a) if practicable, advise the Authority, and any other Authority potentially affected, in writing at least two months before any decision to take such action is made by the Minister; and (b) after giving advice under paragraph (a), consult and attempt to reach agreement with the Ovens system entitlement holders about alternative action to that which is proposed, which would not have a significant adverse effect; or (c) if it is not possible to agree on alternative action under paragraph (b), consult with and attempt to reach agreement with Ovens System entitlement holders about ameliorative action, together with appropriate cost-sharing arrangements. 16.2 For the purpose of this clause a Òsignificant adverse effectÓ includes an average annual net reduction of 1000 ML or more of diversions from the system waterway. 16.3 Ameliorative action may include efficiency measures or other action to maintain existing resource availability to supply primary entitlements. 16.4 Decisions by the Minister which collectively have some adverse effect on resource availability but individually not a significant adverse effect will be reviewed by the Minister every two years from the date this Order commences. Whenever the accumulated reductions equal or exceed 1000 ML the Minister will: (a) advise the Authority and other Ovens System entitlement holders in writing; and (b) consult with, and attempt to reach agreement with, the holders of Ovens System bulk entitlements about ameliorative action, including appropriate cost-sharing arrangements. Victoria Government Gazette S 1 4 January 2005 17

17. ENVIRONMENTAL OBLIGATIONS 17.1 The Authority jointly with the Storage Operator must propose to the Minister, within 12 months of the date of this Order coming into operation, a program to manage the environmental effects of the works under its control, that allow water to be taken from the system waterway, including: (a) the effects on the bed and banks of the waterway in the vicinity of the works; and (b) operational practices to remove silt from works; and (c) operational practices to manage the water quality in works on the waterway; and (d) operational rules to control releases from works to the waterway; and (e) operational rules to manage flood flows through works on the waterway; and (f) the proposed timing, extent and duration of any temporary changes to the provision of environmental minimum flows to allow for essential maintenance of the outlet works. 17.2 The Minister may: (a) approve the program proposed under sub-clause 17.1; (b) require the Authority jointly with the Storage Operator, to amend the proposed program; (c) require the Authority jointly with the Storage Operator, to Ð (i) review the program approved by the Minister if, in the MinisterÕs opinion, it is, at any time, no longer appropriate; and (ii) propose an amended program to the Minister. 17.3 The Authority jointly with the Storage Operator must: (a) implement the approved environmental management program; (b) keep a record of all work undertaken under sub-clause 17.3(a). 17.4 The cost of implementing the environmental management program must be met by: (a) the Storage Operator, where the program relates to Lake Buffalo and Lake William Hovell; or (b) the Authority, where the program relates to works other than Lake Buffalo and Lake William Hovell. 17.5 The Minister may, from time to time, require the Authority jointly with the Storage Operator, to report in writing on the implementation of any program approved under sub-clause 17.2. 17.6 The Minister may direct the Authority to participate in the development and implementation of Stressed River Proposals relevant to the Ovens Basin in accordance with the ÒPrinciples for restoring flow-stressed riversÓ contained in the Victorian River Health Strategy. 18. METERING PROGRAM 18.1 The Authority, and the Storage Operator where appropriate, must propose to the Minister within 12 months of the date of this Order a metering program to demonstrate compliance with this bulk entitlement with respect to: (a) all water taken by the Authority under this bulk entitlement; and (b) all water referred to in sub-clause 18.1(a) which is returned to the system waterway by the Authority and for which it seeks credit under clause 15; and (c) the flow into, and the volume in, the storages mentioned in clause 9; and (d) the environmental minimum flows. 18.2 The Minister may: (a) approve the program proposed under sub-clause 18.1; 18 S 1 4 January 2005 Victoria Government Gazette

(b) require the Authority to amend the proposed program; or (c) not approve the program. 18.3 The Minister may require the Authority: (a) to review any program approved by the Minister if, in the MinisterÕs opinion, it is no longer appropriate; and (b) to propose an amended program to the Minister. 18.4 The Authority must, at its cost, and in accordance with any guidelines issued from time to time by the Minister: (a) implement and maintain the approved metering program; and (b) maintain metering equipment and associated measurement structures in good condition; and (c) ensure that metering equipment is periodically re-calibrated; and (d) if rating curves are used to calculate flows, ensure that the curves are regularly checked and, if necessary, revised; and (e) keep a record of all work undertaken under paragraphs (a), (b), (c) and (d). 19. REPORTING REQUIREMENTS 19.1 The Authority, jointly with the Storage Operator where appropriate, may be required to report to the Minister or to a person nominated by the Minister on all or any of the following: (a) the daily flows in the Buffalo River downstream of Lake Buffalo, King River downstream of Lake William Hovell, Ovens River downstream of Buffalo River confluence and Ovens River downstream of King River confluence; (b) the daily amounts of water taken, or estimates of water taken where recorded data is not readily available, from the system waterway by the AuthorityÕs primary entitlement holders and for additional supplies listed in Schedules 1 and 2 to this Order; (c) the daily flows into Lake Buffalo and Lake William Hovell; (d) the amounts of water held by the Authority in Lake Buffalo and Lake William Hovell; (e) the annual amounts of water taken from the system waterway by the AuthorityÕs primary entitlement holders and additional supplies listed in Schedules 1 and 2 to this Order; (f) the amount of annual evaporation losses from Lake Buffalo and Lake William Hovell; (g) the calculation of flows to demonstrate compliance in meeting the environmental minimum flows specified under clause 12; (h) any credits granted under clause 15; (i) any temporary or permanent transfer of all or part of this bulk entitlement; (j) any bulk entitlement or licence in respect of the system waterway, or any other waterway or water supply system, temporarily or permanently transferred to the Authority; (k) any alteration to the primary entitlements set out in Schedules 1 and 2 to this Order made under clause 8; (l) the number, volume and places of origin and destination, of transfers of primary entitlements; (m) the annual volume supplied to primary entitlements, or any group of primary entitlements specified by the Minister; (n) any amendment to this bulk entitlement; (o) any new bulk entitlement granted to the Authority with respect to supply of primary entitlements under this Order; Victoria Government Gazette S 1 4 January 2005 19

(p) the implementation of programs approved under sub-clauses 17.3 and 18.4; (q) any failure by the Authority to comply with any provision of this bulk entitlement; (r) any difficulties experienced or anticipated by the Authority in complying with this bulk entitlement and any remedial action taken or proposed (s) the number of occasions where planned maintenance works or other causes resulted in flows less than the flow specified in sub-clauses 12.1 and 17.1(f), with details of the duration and flows for each occasion. 19.2 The Minister may require the Authority to report on all or any of the matters set out in sub- clause 19.1: (a) in writing or in such electronic form as may be agreed between the Authority and the Minister; and (b) within 14 days of receiving the MinisterÕs written request. 19.3 The Authority must, for the period of the preceding year, report in its Annual Report on each of the matters set out in sub-clause 19.1, except: (a) paragraphs (a), (b), (c) and (d) of sub-clause 19.1; and (b) with the approval of the Minister, any particular failure referred to in paragraph (q) of sub-clause 19.1. 19.4 The Resource Manager may from time to time require the Authority to report in an agreed form, on all or any of the matters set out in paragraphs (a) to (s) of sub-clause 19.1. 19.5 Any report under sub-clause 19.1 must be made: (a) in such form as may be agreed between the Authority and the person to whom the report is made; and (b) unless the Authority and the person agree otherwise Ð (i) within 24 hours of the Authority receiving a request for a report on any matter set out in paragraphs (a) to (d) of sub-clause 19.1; or (ii) within 14 days of the Authority receiving a request for a report on any matter set out in paragraph (e) to (s) of sub-clause 19.1. 20. WATER RESOURCE MANAGEMENT COSTS Subject to sub-clause 23.2, the Authority must pay the Resource Manager the costs incurred by the Resource Manager in performing the tasks as specified in the relevant Instrument of Appointment. 21. WATER STORAGE AND SUPPLY COSTS 21.1 The Authority must pay the Storage Operator all costs incurred by the Storage Operator associated with storing water in and supplying water from Lake William Hovell and Lake Buffalo. 21.2 The Authority must pay the Storage Operator the annual source cost for Lake Buffalo and Lake William Hovell with the charge determined by:

Cs = $ [(SBF + SWH)] where: Cs = source cost payable by the Authority, and SBF = estimated source costs attributable to the component of the headworks system associated with and including Lake Buffalo, and

SWH = estimated source costs attributable to the component of the headworks system associated with and including Lake William Hovell. 20 S 1 4 January 2005 Victoria Government Gazette

21.3 The costs must be paid by the Authority every year regardless of the amount of water diverted to, or taken from, Lake Buffalo and Lake William Hovell by the Authority. Acceptance of payment does not imply any guarantee of continuous supply, or to supply water at any particular elevation or of any particular quality. 21.4 The Authority may pass a proportion of the charge on to the other authorities that are primary entitlement holders under this Order, in accordance with arrangements specified in the bulk entitlement Orders of these other authorities. 21.5 The method of determining the annual source cost as specified under sub-clause 21.2 shall be adopted until an alternative method of determining the annual source cost is developed by the Authority and approved by the Minister. 22. DUTY TO KEEP ACCOUNTS 22.1 Separate accounts of all costs and payments must be kept by: (a) the Resource Manager in respect to clause 20; and (b) the Storage Operator in respect to sub-clause 21.1. 22.2 The Resource Manager must, by 1 February in any year, provide the Authority with an estimate, in respect of the ensuing year, of the costs referred to in clause 20. 22.3 The Storage Operator must, by 1 February in any year, provide the Authority with an estimate of the annual source charge referred to in sub-clause 21.1 for the ensuing year. 22.4 Accounts required to be kept under this sub-clause must be made available for inspection by the Authority upon request. 23. DUTY TO MAKE PAYMENTS 23.1 Any amounts payable by the Authority under clauses 20 and 21: (a) are to be made in accordance with the usual business practices of the Resource Manager and Storage Operator, unless otherwise set by mutual agreement between the Authority and the Resource Manager and the Authority and the Storage Operator; and (b) must be invoiced to the Authority at least once a year, and, if more often than once a year, in instalments; and (c) unless the Authority and the person to whom the amount is payable agree otherwise Ð (i) must be paid in arrears within 30 days from the end of the month of the Authority receiving an invoice for amounts payable under clause 19; and (ii) must be paid in arrears within 30 days from the end of the month of the Authority receiving an invoice for amounts payable under clause 20. 23.2 The Authority is not obliged to make any payment to: (a) the Resource Manager under clause 20; or (b) the Storage Operator under clause 21, unless the person to whom the payment is due complies with the provisions of this sub-clause relevant to those payments. 24. DATA 24.1 The Minister will use his or her best endeavours to ensure that all hydrological and other data required by the Authority to comply with this bulk entitlement are made available to the Authority. 24.2 The Authority must make available data collected for the purpose of the metering and reporting program under sub-clauses 18.1 and 19.1 to any person subject to a fair and reasonable access fee, imposed by the Authority, to cover the costs of making the data available. Victoria Government Gazette S 1 4 January 2005 21

25. DISPUTE RESOLUTION 25.1 If a difference or dispute arises between the Authority, the Minister, the other entitlement holders, the Storage Operator and the Resource Manager, or any of them (the ÒpartiesÓ), concerning the interpretation or application of this Order, a party may give written notice to another party requiring the matter to be determined by an independent expert. 25.2 The notice requiring that the matter be determined by independent expert may only be given 14 days after the matter has arisen. The independent expert may only commence to determine the matter a further 14 days after the giving of that notice. 25.3 The other entitlement holders, the Storage Operator and the Resource Manager will only be subject to the resolution procedure set out in this clause if they consent to the procedure. 25.4 The independent expert will be either Ð (a) a person agreed to by the parties to the difference or dispute; or (b) if the parties cannot agree, a person nominated by the President of the Institute of Arbitrators, Australia. 25.5 The independent expert must reach a conclusion on the matter within 30 days of it being referred, but has power to extend the period for reaching a conclusion on the matter by a further 30 days. 25.6 The independent expert must send a copy of the conclusion and its supporting reasons to each party to the difference or dispute. 25.7 In any difference or dispute to which the Minister is a party Ð (a) the independent expert must express the conclusion as a recommendation; and (b) the Minister must consider any recommendation made under paragraph (a) before deciding to give a direction under s 307 or to take any other action under the Act in relation to the difference or dispute. 25.8 In any difference or dispute to which the Minister is not a party, any conclusion by an independent expert is final and binding on the parties. 25.9 The Authority may request the Minister to determine the apportionment of the costs of and incidental to every reference, including the costs of the independent expert. Dated 17 December 2004 JOHN THWAITES Minister for Water Note: An explanatory note that accompanies this Order is available from the Department of Sustainability and Environment. 22 S 1 4 January 2005 Victoria Government Gazette

Schedule 1 Primary Entitlements Ð Individual Irrigation and Associated Entitlements The following entitlements are as noted in the records maintained by the Authority at 1 July 2004. 1. Surface water licences issued under section 51(1)(a) of the Act Stream Regulated licence volume (ML/annum) Ovens R 10569 Buffalo R 4261 King R 11275 Total regulated Rural entitlement 26105

2. Sales water Sales water (also known as ÒSpillage SalesÓ) of up to 50% of regulated surface water licence volume will be made available to regulated irrigation licence holders: (a) on the regulated Buffalo River and regulated Ovens River, each year between 1 July and the date that Lake Buffalo ceases to spill during that year; (b) on the regulated King River, each year between 1 July and the date that Lake William Hovell ceases to spill during that year. 3. Groundwater licences A variable portion of the surface water releases from storage may contribute through seepage to the aquifers which provide for groundwater extractions. The nature and extent of interaction between surface water and groundwater is proposed to be investigated and established in the future under a management plan.

Schedule 2 Primary Entitlements Ð Other Supplies Bulk Entitlements held by other Authorities as Primary Entitlements: Entitlement holder Order North East Region Bulk Entitlement (Ovens System Ð Moyhu, Oxley and Water Authority Wangaratta Ð North East Water) Conversion Order 2004 Victoria Government Gazette S 1 4 January 2005 23

Schedule 3 Supply of Primary Entitlements 1. Supply Restrictions Where the Authority is unable to supply the full water requirements of primary entitlements, it must (a) assess and restrict supplies to its rural licence holders, and (b) require the other primary entitlement holder listed under Schedule 2 to this Order, to restrict the water usage of its customers; in accordance with the following restriction policy: Restriction Supply to irrigation Supply to urban areas and rural level regulated licence Domestic and Stock licence holders to holders# be restricted in a manner calculated to reduce usage to supply rates equivalent to:## Level 1 75% of full agricultural Summer urban demand* less 50% of demand restrictable urban demand** Level 2 50% of full agricultural Summer urban demand* less 80% of demand restrictable urban demand** Level 3 25% of full agricultural Summer urban demand* less 95% of demand restrictable urban demand** Level 4 0% of full agricultural Summer urban demand* less 100% of demand (irrigation restrictable urban demand** banned) # Supply restricted by limiting pumping by its customer to specific times to achieve the specified reduced demand ## Supply restricted by limiting its customers to specific times and the method of external water usage * Summer urban demand means the average actual supply rate in ML per day recorded over the preceding five years in December, January and February. ** restrictable urban demand means the summer urban demand less the average actual supply rate in ML per day recorded over the preceding five years in June, July and August. and any agreement made under section 124(7) of the Act. 2. Sales Water The Authority must determine any allocation of sales water made by it in any year in accordance with the provisions of clause 7 and Schedule 1(2). Schedule 4 Operational Tolerances for Meeting Environmental Minimum Flows The following operational arrangements and tolerances apply for meeting the environmental minimum flows: (a) the Authority must with reasonable endeavour provide an average flow on any day of not less than 75% of the specified environmental minimum flow; and (b) the average daily flow over any continuous 14 day period is not to be less than the specified environmental minimum flow. 24 S 1 4 January 2005 Victoria Government Gazette

Schedule 5 Calculation of Natural Flows Subject to further analyses employing better estimation techniques, in the interim period, the following equations are applicable for estimating natural flows in relation to complying with environmental minimum flows specified under clause 12: 1. Natural flow in the Buffalo River downstream of Lake Buffalo Compliance monitoring gauge 403220 Ð Buffalo River at Lake Buffalo

QLkB = 1.4*(Q403217 + 1.414*Q403222) where

QLkB = estimated natural flow in the Buffalo River downstream Lake Buffalo, and Q403217 = flow measured at streamgauge station index number 403217, and Q403222 = flow measured at streamgauge station index number 403222. 2. Natural flow in the Ovens River downstream of Buffalo River confluence Compliance monitoring gauge 403230 Ð Ovens River at Rocky Point

Qnat Ovens R d/s Buff R = 2*Q403214 + Q403210 + Qnat Buff R d/s LkB where

Qnat Ovens R d/s Buff R = estimated natural flow in the Ovens River downstream Buffalo River confluence, and

Qnat Buff R d/s LkB = natural flow estimated under item 1 above, and Q403214 = flow measured at streamgauge station index number 403214, and Q403210 = flow measured at streamgauge station index number 403210. 3. Natural flow in the King River at Cheshunt Compliance monitoring gauge 403227 Ð King River at Cheshunt 2 Qnat King R d/s LkWH = Ð0.02*QLkWH + 1.6127*QLkWH where

Qnat King R d/s LkWH = estimated natural flow in the King River downstream of Lake William Hovel, and

QLkWH = inflow into Lake William Hovell as estimated by the Authority. 4. Natural flow in the King River downstream of Docker Compliance monitoring gauges Ð 403223 King River at Docker Road Bridge and 403224 Hurdle Ck at Bobinawarrah (sum total of the two gauged flows)

Qnat King R d/s Docker = 0.0158*QLkWH2 Ð 0.0698*QLkWH; QLkWH > 4.5 ML/day = 0; QLkWH < 4.5 ML/day where

Qnat King R d/s Docker = estimated natural flow in the King River downstream of Docker, and QLkWH = inflow into Lake William Hovell as estimated by the Authority. 5. Natural flow in the Ovens River downstream of the King River confluence Compliance monitoring gauge 403200C Ð Ovens River at Wangaratta

Qnat Ovens R d/s King R = Qnat King R d/s Docker + Qnat Ovens R d/s Buff R where

Qnat Ovens R d/s King R = estimated natural flow in the Ovens River downstream of the King River confluence, and

Qnat King R d/s Docker = natural flow estimated under item 4 above, and Qnat Ovens R d/s Buff R = natural flow estimated under item 2 above. Victoria Government Gazette S 1 4 January 2005 25

6. Natural flow in the Ovens River at at Mulwala Compliance monitoring gauge 403241A Ð Ovens River at Peechelba

Qnat Ovens R @ Mul = Qnat Ovens R d/s King R + Q403209 + Q403239 where

Qnat Ovens R @ Mul = estimated natural flow in the Ovens River at , and Qnat Ovens R d/s King R = natural flow estimated under item 5 above, and Q403209 = flow measured at streamgauge station index number 403209, and Q403239 = flow measured at streamgauge station index number 403239. 26 S 1 4 January 2005 Victoria Government Gazette

Water Act 1989 BULK ENTITLEMENT (BROKEN SYSTEM Ð GOULBURN-MURRAY WATER) CONVERSION ORDER 2004 CONTENTS 1. CITATION 2. EMPOWERING PROVISIONS 3. COMMENCEMENT 4. DEFINITIONS 5. CONVERSION TO BULK ENTITLEMENTS 6. BULK ENTITLEMENT 7. LIMITATION ON BULK ENTITLEMENT 8. OBLIGATIONS TO SUPPLY PRIMARY ENTITLEMENTS 9. ADJUSTMENT OF SCHEDULES 10. SHARE OF STORAGE CAPACITY 11. SHARE OF FLOW 12. ENVIRONMENTAL MINIMUM FLOW 13. OPERATING ARRANGEMENTS 14. CALCULATING THE FLOW 15. GRANTING WATER CREDITS 16. SAVING OF DISTRIBUTION LOSSES 17. CHANGES MADE TO LONG-TERM WATER AVAILABILITY 18. ENVIRONMENTAL OBLIGATIONS 19. METERING PROGRAM 20. REPORTING REQUIREMENTS 21. WATER RESOURCE MANAGEMENT COSTS 22. WATER STORAGE AND SUPPLY COSTS 23. DUTY TO KEEP ACCOUNTS 24. DUTY TO MAKE PAYMENTS 25. DATA 26. DISPUTE RESOLUTION Victoria Government Gazette S 1 4 January 2005 27

Water Act 1989 BULK ENTITLEMENT (BROKEN SYSTEM Ð GOULBURN-MURRAY WATER) CONVERSION ORDER 2004 I, John Thwaites, Minister for Water, under the provisions of the Water Act 1989, make the following Order:Ð 1. CITATION This Order may be cited as the the Bulk Entitlement (Broken System Ð Goulburn-Murray Water) Conversion Order 2004. 2. EMPOWERING PROVISIONS This Order is made under sections 43 and 47 of the Water Act 1989. 3. COMMENCEMENT This Order comes into operation on the day published in the Government Gazette. 4. DEFINITIONS In this Order Ð ÒActÓ means the Water Act 1989; ÒAgreementÓ means the Murray-Darling Basin Agreement as contained in Schedule 1 of the Murray-Darling Basin Act 1993; ÒAHDÓ means the Australian Height Datum; ÒAuthorityÓ means the Goulburn-Murray Rural Water Authority; ÒBroken BasinÓ means the area of land previously designated by the Australian Water Resources Council (AWRC) as Basin Number 4 in the South-East Coast Division of the AWRC Australian Continental Drainage Divisions; ÒBroken Basin Water AccountsÓ means an annual report, required by the Minister, on compliance by entitlement holders and licensees in the Broken Basin with the terms of their bulk entitlements or licences; ÒBroken systemÓ means the water supply systems supplied from (a) Lake Nillahcootie, (b) , (c) the inflows to these storages, and (d) the flows harvested by the Broken River and tributaries downstream of the storages; Òcap modelÓ means the water resource allocation computer model used to estimate the Goulburn, Broken and Loddon River basins diversions under the 1993/94 level of development; Òcreek systemÓ means the Broken Creek downstream of Casey's Weir including all its tributaries down to Katamatite, and the Major Creek down to the measuring point at Loves' Road and the Boosey Creek down to Katamatite and all their tributaries including all the pools formed upstream of the diversion weirs; Òdistribution systemÓ means the channels, pipes and other works, and the natural or modified waterways which are used to transport water from the headworks system to primary entitlement holders; ÒDomestic and Stock (D&S) useÓ has the same meaning as in Part 1, section 3 of the Act; Òentitlement holderÓ means a person holding a bulk entitlement under the Act; Òenvironmental minimum flowÓ means the flows referred to in clause 12; Òfull supply levelÓ means the AHD level at or below which a storage is designed to be normally operated; 28 S 1 4 January 2005 Victoria Government Gazette

ÒGoulburn-Broken-Loddon capÓ means the annual volume of water determined each year by the cap model that would have been diverted under 1993/94 levels of development from the Goulburn, Broken and Loddon River basins; Òheadworks systemÓ means: (a) Lake Nillahcootie, Lake Mokoan and the associated water supply works and other assets, as shown from time to time in the Asset Register of Goulburn-Murray Rural Water Authority as owner of the storage, and (b) the system waterway; ÒlicenceÓ means any licence granted under Part 4 of the Act; Òlicensed divertersÓ means persons holding licences under Section 51(1)(a) of the Act; Òlicence volumeÓ means the volume of water available under a licence; Òother AuthorityÓ means a water authority other than the Authority or any other person holding a bulk entitlement granted under Division 1 of Part 4 of the Act; Òprimary entitlementÓ means an entitlement or commitment referred to in clause 8; ÒRegisterÓ means the register referred to in section 230 of the Act; Òregulated flowÓ means any flow due to release from Lake Nillahcootie or Lake Mokoan to the immediate downstream river channel excluding releases made by the Storage Operator: (a) for construction or maintenance purposes under non-emergency situations; or (b) to secure the safety of the headworks system under emergency situations; or (c) to pass flood flows that are not diverted from the system waterway and do not contribute to environmental minimum flow commitments; ÒResource ManagerÓ means any person appointed by Instrument by the Minister under section 43A(1)(b) of the Act to carry out the functions in accordance with the terms and conditions specified in the Instrument of Appointment; Òsales waterÓ means any water in excess of a licence volume to which a licence holder may be entitled and is the water referred to in clause 2 of Schedule 1 to this Order; Òsource costÓ means the total annual cost to: (a) operate, maintain and administer, and (b) make releases from, and (c) keep an account of the water available to the entitlement holders at any one time of, and (d) meet the finance charges including repayment of principal, calculated by reference to the weighted average cost of borrowing (based on internal Treasury arrangements and externally borrowed funds) associated with any new or replacement works undertaken on, and (e) make an appropriate allowance for asset consumption, using the renewal annuity approach or other asset consumption methodology directed by the Minister to apply to the Authority and other authorities, associated with, and (f) assist in managing the catchment for water supply purposes to protect the quality of water diverted to, stored in and delivered from, and (g) contribute to the cost of salinity mitigation schemes along the River Murray or elsewhere and operated by or on behalf of Victoria, commensurate with the extent to which entitlement holders in the Broken Basin rather than other water users in Victoria generate a need for these schemes, and (h) manage the stream gauging stations necessary to operate, and Victoria Government Gazette S 1 4 January 2005 29

(i) implement, in accordance with sub-clause 18.3, the program to manage the environmental effects of, the components of the headworks system; ÒStorage OperatorÓ means any person appointed by Instrument by the Minister under section 43A(1)(a) of the Act to carry out the functions in accordance with the terms and conditions specified in the Instrument of Appointment; Òsystem waterwayÓ means the Broken River downstream of Lake Nillahcootie, including the pools formed immediately upstream of Nillahcootie dam, Mokoan dam, Broken River diversion weir, Holland Creek diversion weir, Casey's Weir and Gowangardie weir, down to the confluence with the Goulburn River; ÒVictorian River Health StrategyÓ means the document titled 'Healthy Rivers Healthy Communities & Regional Growth Ð Victorian River Health Strategy' published by the Victorian Department of Natural Resources and Environment, August 2002; ÒyearÓ means the 12 months commencing 1 July. 5. CONVERSION TO BULK ENTITLEMENTS All of the AuthorityÕs entitlement to water from the system waterway is converted to a bulk entitlement on the specified matters and conditions set out in this Order. 6. BULK ENTITLEMENT Provided the Goulburn-Broken-Loddon cap is not exceeded and subject to clause 7, the Authority is entitled to take such annual volume of surface water from the system waterway as is necessary to supply the primary entitlements described in Schedules 1 and 2 to this Order. 7. LIMITATION ON BULK ENTITLEMENT 7.1 If the accumulated differences since July 1997 between: (a) the volumes of water diverted each year from the Goulburn, Broken and Loddon River basins; and (b) the corresponding volumes of water as estimated by the cap model approach the limit specified in Schedule F of the Agreement then: (i) the Authority and any other Broken system entitlement holder must recommend to the Minister for approval appropriate action to be taken so as to avoid the limit specified in Schedule F of the Agreement being reached; and (ii) the Authority and any other Broken system entitlement holder must take such action as approved by the Minister. 7.2 If: (a) no action is approved and taken under clause 7.1; and (b) the volume of accumulated over-runs less under-runs reaches 15 per cent of long-term average annual diversions from the Goulburn, Broken and Loddon River basins in the following year, the Authority is only entitled to take the annual volume of surface water necessary to supply the primary entitlements described in Schedules 1 and 2 to this Order varied as follows: (i) the water the Broken system entitlement holders could divert in that year, less a volume equal to 7 per cent of long-term average annual diversions from the Broken system by the Authority; (ii) the maximum volume of water required for an allocation of 50 per cent of the maximum allocation for sales water or such other percentage as may be specified by the Minister; and 30 S 1 4 January 2005 Victoria Government Gazette

(iii) the minimum volume of water required for an allocation of 100 per cent of licence entitlements as referred to in clause 1 of Schedule 1 to this Order. 8. OBLIGATIONS TO SUPPLY PRIMARY ENTITLEMENTS Water taken from the system waterway and the creek system under this bulk entitlement must be used to supply the following primary entitlements further detailed in Schedules 1 and 2 to this Order: (a) licences and associated sales water supplied from the system waterway; and (b) licences and associated sales water supplied from the creek system; and (c) additional supplies, subject to the restriction policy specified in Schedule 3 to this Order. 9. ADJUSTMENT OF SCHEDULES 9.1 The Minister may, from time to time, alter: (a) Schedule 1 to this Order to reflect Ð (i) any new licence allocated under section 51, 52 or 57 of the Act; (ii) any trading between persons holding primary entitlements; (b) Schedule 2 to this Order to reflect any alteration to an entitlement referred to in clause 8. 9.2 The Authority may apply to the Minister to amend all or any of the following: (a) the principles used to determine sales water described in Schedule 3 to this Order; (b) any part of Schedule 3 to this Order, and other schedules to this Order that require consequential changes; (c) any part of Schedule 5 to this Order that require changes as a consequence of further analyses resulting in better equations for estimating natural flows. 9.3 An application under paragraph (a) must set out: (a) the objectives of, and reasons for the proposed amendment; and (b) the results of an assessment of the likely effect of that amendment on the environment. 9.4 The Minister may: (a) approve part or all of any application under sub-clause 9.2; or (b) require the Authority to Ð (i) provide further information; or (ii) re-submit the application in a different form; or (c) not approve the application. 10. SHARE OF STORAGE CAPACITY 10.1 The Authority is entitled to: (a) all of the storage capacity of Lake Mokoan where the total capacity is 362 400 ML at a full supply level of 166.9 metres AHD; and (b) all of the storage capacity of Lake Nillahcootie where the total capacity is 39 950 ML at a full supply level of 264.5 metres AHD; and (c) all the water temporarily stored above the full supply level, in each of the headworks storages as part of its entitlement volume under clause 6. 10.2 If for any reason the Storage Operator declares a changed storage capacity, the Authority is entitled to all of the changed capacity. Victoria Government Gazette S 1 4 January 2005 31

11. SHARE OF FLOW 11.1 In order to supply the entitlements set out in clause 8 subject to the limits specified under clause 7, and after meeting the environmental minimum flow requirements specified in clause 12, the Authority may take: (a) all the natural inflows into Lake Nillahcootie; and (b) all the natural inflows into Lake Mokoan; and (c) all the natural inflows and regulated flows in the system waterway and the creek system. 11.2 The Authority must not take, as part of this entitlement, any flow in the system waterway, which is being transferred by the holder of any other bulk entitlement or licence. 12. ENVIRONMENTAL MINIMUM FLOW 12.1 The Authority, subject to clauses 6 and 13, and sub-clause 18.1 and the daily operational arrangements and tolerances specified in Schedule 4 to this Order, must maintain the following minimum environmental flows in: (a) Broken River upstream of Casey Weir Ð (i) in the Broken River between Lake Nillahcootie and Broken Weir, during the months of June to November inclusive, the lower of 30 ML per day or natural flow generated in all of the catchment upstream of Moorngag as calculated using the procedure specified in Schedule 5 to this Order, measured at Moorngag; and (ii) in the Broken River between Broken Weir and Casey Weir, during the months of December to May inclusive, the lower of 22 ML per day or natural flow generated in all of the catchment upstream of Casey's Weir as calculated using the procedure specified in Schedule 5 to this Order, measured at Broken Weir; (b) Holland Creek downstream of Holland Weir Ð All year, in Holland Creek between Holland Weir and the Broken River confluence, (i) when water is being diverted from Broken River and / or Holland Creek to Lake Mokoan, the lower of 12 ML per day or natural flow generated in the Holland Creek catchment as calculated using the procedure specified in Schedule 5 to this Order, measured immediately upstream of the Broken River confluence; or (ii) when water is not being diverted from Broken River and / or Holland Creek to Lake Mokoan, the prevailing flow in Holland Creek shall be deemed as meeting the environmental flow requirement; (c) Broken River downstream of Casey Weir Ð in the Broken River between Casey's Weir and the Goulburn River confluence , during the months of December to May inclusive, the lower of 25 ML per day or natural flow generated in the Broken River catchment upstream of Gowangardie Weir as calculated using the procedure specified in Schedule 5 to this Order, measured at Gowangardie Weir. 12.2 The Storage Operator will maintain accounts of the environmental minimum flow commitments specified in sub-clause 12.1. 13. OPERATING ARRANGEMENTS 13.1 The Authority, the Storage Operator and any person appointed or nominated by the Minister to manage environmental flows (the parties), must endeavour to agree on operational arrangements for the supply of water from the Broken system to provide supplies to the primary entitlement holders and meet the environmental minimum flow obligations. 32 S 1 4 January 2005 Victoria Government Gazette

13.2 If the parties have not reached agreement on operational arrangements under sub-clause 13.1, within 12 months of this Order being ratified any of them may give written notice to the others, requiring the issue of operational arrangements to be determined as a dispute as provided for under clause 26. 13.3 If the Authority and the Storage Operator agree that a change is necessary, then they may jointly propose to the Minister an appropriate change to those arrangements. 13.4 A proposal under sub-clause 13.3 must set out the: (a) objectives of, and reasons for, the proposed change; and (b) results of an assessment of the impacts of the proposed change on the supplies to primary entitlements specified under clause 8 and the environment. 13.5 The Minister may: (a) approve the change to the operating arrangements proposed under sub-clause 13.3; or (b) require the Authority to amend the proposed operating arrangements; or (c) require the Authority to Ð (i) review the operating arrangements approved by the Minister if, in the Minister's opinion, these are no longer appropriate; and (ii) propose amended operating arrangements to the Minister. 13.6 Subject to clause 6 and the minimum environmental flow rules in clause 12, the Authority must not direct the Storage Operator to release more water from Lake Nillahcootie and/ or Lake Mokoan, than is required to meet the Authority's commitment to supply primary entitlements unless releases are necessary to: (a) supply transfers of primary entitlements including losses; and/or (b) supply dilution flows to overcome serious water quality concerns. (c) subject to Schedule 2(2), can be made to the Murray system without compromising the supply commitments to primary entitlements 14. CALCULATING THE FLOW For the purpose of clauses 6 and 7, the volume taken from the system waterway and the creek system by the Authority in any year is calculated as the sum of the annual volumes to supply: (a) the licensed diverters from the system waterway; and (b) the licensed diverters from the creek system; and (c) other bulk entitlements supplied from the creek system, less any credits granted under clause 15. 15. GRANTING WATER CREDITS 15.1 The Authority may apply to the Minister for credit of any water (a) returned to the system waterway or the creek system of the water taken from the system waterway or the creek system; and/or (b) delivered from another distribution system to the system waterway or the creek system; against the total amount of its entitlement, as set out in this clause. 15.2 The Minister may grant a credit for releases made directly to the system waterway from the Authority's distribution system if: (a) the return flow is treated to a high standard or is at least of same quality to the water taken by the Authority from the system waterway; and (b) the return flow is considered by the Minister to be useful in meeting environmental minimum flows or the AuthorityÕs or other AuthoritiesÕ commitments to supply water. Victoria Government Gazette S 1 4 January 2005 33

15.3 The Minister may, by written notice to the Authority, specify any period or periods during which the Authority may not redeem credit against its entitlement specified under clause 6, in any year. 16. SAVING OF DISTRIBUTION LOSSES 16.1 Where measures are taken which permanently reduce losses incurred by the Authority in conveying water via the system waterway and the creek system to primary entitlement holders, the water saved may be transferred or converted into new rights to water in any of the following ways: (a) the Authority may transfer part of a bulk entitlement under section 46 of the Act; or (b) the Authority may sell part of a bulk entitlement to licensed diverters, under section 46A of the Act; and in each case the transfer or conversion must be in accordance with the provisions of this clause. 16.2 the Authority may only transfer or convert savings into new rights to water if: (a) the Authority has applied for recognition of the savings to the Minister; and (b) the Minister has consulted with the Broken system entitlement holders; and (c) the Minister has approved the application with any qualifications which the Minister thinks is warranted. 16.3 An application for savings to be recognised under sub-clause 16.2 must: (a) provide evidence that the savings have been achieved; and (b) demonstrate satisfactorily that the savings are permanent; and (c) if it requires several years of operation to be sure that the full expected savings have been achieved, propose appropriate staging for recognition of the full savings. 16.4 If any part of the Authority's distribution system is a natural or modified waterway or wetland: (a) the Authority must not make savings or other changes to the operation of that part of the distribution system which: (i) are outside guidelines established in an environmental management plan for the waterway or wetland prepared by the Authority and endorsed by the Minister; or (ii) in the absence of any guidelines established under paragraph (i), may have adverse effects on environmental values; unless it has Ð (A) assessed the impact of such proposed savings or changes, and developed any required compensatory or ameliorative measures, consistent with the conservation policies of the government; and (B) referred to the Minister a proposal setting out the savings or changes, along with a report on the environmental assessment carried out under sub-paragraph (i) and on any alternatives to the proposal which have been considered and assessed; (b) The Minister may suggest conditions which might need to be attached to the proposal before it is approved. 16.5 If the Minister considers that: (a) savings could be made in the Authority's distribution losses which would result in significant environmental benefits, but which may not be economic if only the value of the water saved is considered; or 34 S 1 4 January 2005 Victoria Government Gazette

(b) the manner of operating any natural or modified waterway or wetland forming part of the Authority's distribution system is contributing to a continuing decline in the environmental values of that waterway or wetland; the Minister may determine that a review should be undertaken, and the Authority must co- operate in the conduct of the review. 16.6 If any water: (a) is taken by the Authority under clause 6 but is found to be surplus to what is required by primary entitlement holders, or (b) represents water returned from the Authority's distribution system supplied from the system waterway; then the Authority must, while meeting its responsibilities to manage water efficiently and to supply primary entitlements Ð (i) when disposing of the water, use its best endeavours to minimise downstream adverse impacts in accordance with practices agreed to by the Authority and the Minister; and (ii) in the absence of such agreed practices, consult with the Minister before making any changes to the way this water is managed which may have adverse effects on environmental values. 16.7 Subject to this clause, the Authority may determine what savings are made in its distribution losses and may determine how such savings are used or disposed of, except in the following cases: (a) the Authority may make an agreement with any other person under which that person contributes to the cost of savings and the Authority transfers or converts a share of the resultant savings into new rights to water held by the other person, subject to relevant processes referred to under the various sub-clauses of this clause 16 being followed; (b) the Minister may pay for and use for environmental purposes a reasonable share of the most economical savings that are available, which share may be determined by the Minister in consultation with the Authority. 16.8 Where savings made in the AuthorityÕs losses are to be used for environmental purposes under sub-clause 16.7(b), the Minister may: (a) require the Authority, in consultation with the Minister, to apply for recognition of savings in accordance with sub-clause 16.2(a); (b) after consulting with Broken system entitlement holders, approve the application with any qualifications which the Minister thinks fit; (c) reduce allowances for the Authority's losses in Schedule 2 to this Order in accordance with the Minister's decision under paragraph (b). 16.9 Instead of converting savings into new rights to water, the Authority may apply for recognition of savings under sub-clause 16.2(a) and use any savings recognised to reduce the frequency of restrictions or reduce supply shortfalls during periods of restricted supply, of existing Broken system entitlements. 17. CHANGES MADE TO LONG-TERM WATER AVAILABILITY 17.1 When any action which the Minister proposes to take under the Act would have a significant adverse effect on the supplies to the Broken system entitlement holders, the Minister will: (a) if practicable, advise the Authority, and any other Authority potentially affected, in writing at least two months before any decision to take such action is made by the Minister; and (b) after giving advice under paragraph (a), consult and attempt to reach agreement with the Broken system entitlement holders about alternative action to that which is proposed, which would not have a significant adverse effect; or Victoria Government Gazette S 1 4 January 2005 35

(c) if it is not possible to agree on alternative action under paragraph (b), consult with and attempt to reach agreement with Broken System entitlement holders about ameliorative action, together with appropriate cost-sharing arrangements. 17.2 For the purpose of this clause a Òsignificant adverse effectÓ includes an average annual net reduction of 1000 ML or more of diversions from the system waterway. 17.3 Ameliorative action may include efficiency measures or other action to maintain existing resource availability to supply primary entitlements. 17.4 Decisions by the Minister which collectively have some adverse effect on resource availability but individually not a significant adverse effect will be reviewed by the Minister every two years from the date this Order commences. Whenever the accumulated reductions equal or exceed 1000 ML the Minister will: (a) advise the Authority and other Broken System entitlement holders in writing; and (b) consult with, and attempt to reach agreement with, the holders of Broken System bulk entitlements about ameliorative action, including appropriate cost-sharing arrangements. 18. ENVIRONMENTAL OBLIGATIONS 18.1 The Authority jointly with the Storage Operator must propose to the Minister, and implement within 12 months of the date of this Order coming into operation, a program to manage the environmental effects of the works under its control, that allow water to be taken from the system waterway, including: (a) the effects on the bed and banks of the waterway in the vicinity of the works; and (b) operational practices to remove silt from works; and (c) operational practices to manage the water quality in works on the waterway; and (d) operational rules to control releases from works to the waterway; and (e) operational rules to manage flood flows through works on the waterway; and (f) the proposed timing, extent and duration of any temporary changes to the provision of environmental minimum flows to allow for essential maintenance of the outlet works. 18.2 The Minister may: (a) approve the program proposed under sub-clause 18.1; (b) require the Authority jointly with the Storage Operator to amend the proposed program; (c) require the Authority jointly with the Storage Operator to Ð (i) review the program approved by the Minister if, in the Minister's opinion, it is at any time no longer appropriate; and (ii) propose an amended program to the Minister. 18.3 The Authority jointly with the Storage Operator must: (a) implement the approved environmental management program; (b) keep a record of all work undertaken under sub-clause 18.3(a). 18.4 The cost of implementing the environmental management program will be met by: (a) the Storage Operator, where the program relates to the headworks system; or (b) the Authority, where the program relates to works other than the headworks system. 18.5 The Minister may from time to time require the Authority, jointly with the Storage Operator, to report in writing on the implementation of any program approved under sub-clause 18.2. 18.6 The Authority under its obligation of duty of care for the environment shall, if required in the future, participate under the direction of the Minister in the development and implementation of Stressed River Proposals relevant to the Broken Basin as per requirements under the Victorian River Health Strategy. 36 S 1 4 January 2005 Victoria Government Gazette

19. METERING PROGRAM 19.1 The Authority, and the Storage Operator where appropriate, must propose to the Minister, and implement within 12 months of the date of this Order a metering program to demonstrate compliance with this bulk entitlement with respect to: (a) all water taken from the system waterway by the Authority under this bulk entitlement; and (b) all water referred to in sub-clause 19.1(a) which is returned to the system waterway by the Authority and for which it seeks credit under clause 15; and (c) the flow into, and the volume in, the storages mentioned in clause 10; and (d) the minimum environmental flows. 19.2 The Minister may: (a) approve the program proposed under sub-clause 19.1; or (b) require the Authority to amend the proposed program; and (c) require the Authority Ð (i) to review the program approved by the Minister if, in the Minister's opinion, it is, at any time, no longer appropriate; and (ii) to propose an amended program to the Minister; or (d) not approve the program. 19.3 The Authority must, at its cost, and in accordance with any guidelines issued from time to time by the Minister: (a) implement and maintain the approved metering program; and (b) maintain metering equipment and associated measurement structures in good condition; and (c) ensure that metering equipment is periodically re-calibrated; and (d) if rating curves are used to calculate flows, ensure that the curves are regularly checked and, if necessary, revised; and (e) keep a record of all work undertaken under paragraphs (a), (b), (c) and (d). 20. REPORTING REQUIREMENTS 20.1 The Authority, jointly with the Storage Operator where appropriate, may be required to report to the Minister or to a person nominated by the Minister on all or any of the following: (a) the daily flows in the Broken River downstream of Lake Nillahcootie and the Broken River downstream of CaseyÕs Weir, and flows diverted at CaseyÕs Weir into the creek system; (b) the daily amounts of water taken, or estimates of water taken where recorded data is not readily available, from the system waterway by the AuthorityÕs primary entitlement holders and for additional supplies listed in Schedules 1 and 2 to this Order; (c) the daily flows into Lake Nillahcootie and Lake Mokoan; (d) the amounts of water held by the Authority in Lake Nillahcootie and Lake Mokoan; (e) the annual amounts of water taken from the system waterway by the Authority's primary entitlement holders and additional supplies listed in Schedules 1 and 2 to this Order; (f) the amount of annual evaporation losses from Lake Nillahcootie and Lake Mokoan; (g) the calculation of flows to demonstrate compliance in meeting the environmental minimum flows specified under clause 12; (h) any credits granted under clause 15; Victoria Government Gazette S 1 4 January 2005 37

(i) any temporary or permanent transfer of all or part of this bulk entitlement; (j) any bulk entitlement or licence in respect of the system waterway, or any other waterway or water supply system, temporarily or permanently transferred to the Authority; (k) any alteration to the primary entitlements set out in Schedules 1 and 2 to this Order made under clause 9; (l) the number, volume and places of origin and destination, of transfers of primary entitlements; (m) the annual volume supplied to primary entitlements, or any group of primary entitlements specified by the Minister; (n) any amendment to this bulk entitlement; (o) any new bulk entitlement granted to the Authority with respect to supply of primary entitlements under this Order; (p) the implementation of programs approved under sub-clauses 18.3 and 19.3; (q) any failure by the Authority to comply with any provision of this bulk entitlement; (r) any difficulties experienced or anticipated by the Authority in complying with this bulk entitlement and any remedial action taken or proposed; (s) the number of occasions where planned maintenance works or other causes resulted in flows less than the flow specified in sub-clauses 12.1 and 18.1(f), with details of the duration and flows for each occasion. 20.2 The Minister may require the Authority to report on all or any of the matters set out in sub- clause 20.1: (a) in writing or in such electronic form as may be agreed between the Authority and the Minister; and (b) within 14 days of receiving the Minister's written request. 20.3 The Authority must, for the period of the preceding year, report in its Annual Report on each of the matters set out in sub-clause 20.1, except: (a) paragraphs (a), (b), (c) and (d) of sub-clause 20.1; and (b) with the approval of the Minister, any particular failure referred to in paragraph (q) of sub-clause 20.1. 20.4 The Resource Manager may from time to time require the Authority to report on all or any of the matters set out in paragraphs (a) to (s) of sub-clause 20.1. 20.5 Any report under sub-clause 20.4 must be made: (a) in such form as may be agreed between the Authority and the Resource Manager; and (b) unless the Authority and the Resource Manager agree otherwise Ð (i) within 24 hours of the Authority receiving a request for a report on any matter set out in paragraphs (a) to (d) of sub-clause 20.1; or (ii) within 14 days of the Authority receiving a request for a report on any matter set out in paragraph (e) to (s) of sub-clause 20.1. 21. WATER RESOURCE MANAGEMENT COSTS Subject to sub-clause 24.2, the Authority must pay the Resource Manager a proportion of the costs incurred by the Resource Manager to perform the functions specified in the relevant Instrument of Appointment. 22. WATER STORAGE AND SUPPLY COSTS 22.1 The Authority must pay the Storage Operator all costs incurred by the Storage Operator associated with storing water in and supplying water from the headworks system. 38 S 1 4 January 2005 Victoria Government Gazette

22.2 Subject to sub-clause 22.5 the Authority must pay the Storage Operator the source cost for the headworks system. The charge is determined by: Cs = $ (SN + SM) where: Cs = the source cost payable by the Authority, and SN = the estimated source costs for Lake Nillahcootie, and SM = the estimated source costs for Lake Mokoan. 22.3 The costs must be paid by the Authority every year regardless of the amount of water diverted to, or taken from, Lake Nillahcootie and Lake Mokoan by the Authority. Acceptance of payment does not imply any guarantee of continuous supply, or to supply water at any particular elevation or of any particular quality. 22.4 The Authority may pass a proportion of the charge on to the other authorities that are primary entitlement holders under this Order, in accordance with arrangements specified in the bulk entitlement Orders of these other authorities. 22.5 The method of determining the annual source cost as specified under sub-clause 22.2 shall be adopted until an alternative method of determining the annual source cost is developed by the Authority and approved by the Minister. 23. DUTY TO KEEP ACCOUNTS 23.1 Separate accounts of all costs and payments must be kept by: (a) the Resource Manager in respect to clause 21; and (b) the Storage Operator in respect to sub-clause 22.1. 23.2 The Resource Manager must, by 1 February in any year, provide the Authority with an estimate, in respect of the ensuing year, of the costs referred to in clause 21. 23.3 The Storage Operator must, by 1 February in any year, provide the Authority with an estimate of the annual source charge referred to in sub-clause 22.2 for the ensuing year. 23.4 Accounts required to be kept under this clause must be made available for inspection by the Authority upon request. 24. DUTY TO MAKE PAYMENTS Any amounts payable by the Authority under clauses 21 and 22: (a) are to be made in accordance with the usual business practices of the Resource Manager and Storage Operator, unless otherwise set by mutual agreement between the Authority and the Resource Manager and the Authority and the Storage Operator; and (b) must be invoiced to the Authority at least once a year, and, if more often than once a year, in instalments; and (c) must be paid in arrears within 30 days from the end of the month of the Authority receiving an invoice for amounts payable under clauses 21 and22, unless the Authority and the persons to whom the amount is payable agree otherwise. 24.2 The Authority is not obliged to make any payment to: (a) the Resource Manager under clause 21; or (b) the Storage Operator under sub-clause 22.2, unless the person to whom the payment is due chooses to comply with the provisions of this sub-clause relevant to those payments. 25. DATA 25.1 The Minister will use his or her best endeavours to ensure that all hydrological and other data required by the Authority to comply with this bulk entitlement are made available to the Authority. Victoria Government Gazette S 1 4 January 2005 39

25.2 The Authority must make available data collected for the purpose of the metering and reporting program under sub-clauses 19.1 and 20.1 to any person subject to a fair and reasonable access fee, imposed by the Authority, to cover the costs of making the data available. 26. DISPUTE RESOLUTION 26.1 If a difference or dispute arises between the Authority, the Minister, the other entitlement holders relevant to this Order, the Storage Operator and the Resource Manager, or any of them (the ÒpartiesÓ), concerning the interpretation or application of this Order, a party may give written notice to another party requiring the matter to be determined by an independent expert. 26.2 The notice requiring that the matter be determined by independent expert may only be given 14 days after the matter has arisen. The independent expert may only commence to determine the matter a further 14 days after the giving of that notice. 26.3 The other entitlement holders relevant to this Order, the Storage Operator and the Resource Manager will only be subject to the resolution procedure set out in this clause if they consent to the procedure. 26.4 The independent expert will be either Ð (a) a person agreed to by the parties to the difference or dispute; or (b) if the parties cannot agree, a person nominated by the President of the Institute of Arbitrators, Australia. 26.5 The independent expert must reach a conclusion on the matter within 30 days of it being referred, but has power to extend the period for reaching a conclusion on the matter by a further 30 days. 26.6 The independent expert must send a copy of the conclusion and its supporting reasons to each party to the difference or dispute. 26.7 In any difference or dispute to which the Minister is a party Ð (a) the independent expert must express the conclusion as a recommendation; and (b) the Minister must consider any recommendation made under paragraph (a) before deciding to give a direction under s 307 or to take any other action under the Act in relation to the difference or dispute. 26.8 In any difference or dispute to which the Minister is not a party, any conclusion by an independent expert is final and binding on the parties. 26.9 The Authority may request the Minister to determine the apportionment of the costs of and incidental to every reference, including the costs of the independent expert. Dated 17 December 2004 JOHN THWAITES Minister for Water Note: An explanatory note that accompanies this Order is available from the Department of Sustainability and Environment. 40 S 1 4 January 2005 Victoria Government Gazette

Schedule 1 1. Primary Entitlements Ð Individual Irrigation and Associated Entitlements The following regulated rural licence entitlements are as noted in the records maintained by the Authority at 30-June-2004: Surface water licences issued under Section 51(1)(a) of the Act Supply from Supply to Regulated licence volume (ML/annum) System waterway Licensed diverters between Lake Nillahcootie and CaseyÕs Weir 4848 Licensed diverters between CaseyÕs Weir and Goulburn River 13020 Mokoan licensed diverters 1536 Creek System Licensed diverters d/s CaseyÕs Weir Ð Broken Creek 5040 Licensed diverters d/s CaseyÕs Weir Ð Major Creek 884 Total regulated rural entitlements 25328

2. Sales Entitlement This entitlement currently allows for up to a maximum of 70 percent of the above rural licence entitlement depending on the prevailing climatic conditions and associated water resource availability.

3. D&S Entitlements Supply from Supply in River or Regulated licence volume Creek reach/Supply to (ML/annum) System waterway Broken River Ð Lake Nillahcootie to CaseyÕs Weir 114 Broken River Ð CaseyÕs Weir to Goulburn River 270 From Lake Mokoan 98 Shepparton East Community Water Supply Scheme 830 Creek System Broken Creek Ð CaseyÕs Weir to Waggarandall Weir 36 Total D&S entitlements 1348 Victoria Government Gazette S 1 4 January 2005 41

Schedule 2 Primary Entitlements - Additional and Other Supplies 1. Bulk Entitlements held by other Authorities as Primary Entitlements Entitlement holder Order Goulburn-Murray Bulk Entitlement (Broken System Ð Tungamah Domestic and Stock, Rural Water Authority Urban Supplies Ð Goulburn-Murray Water) Conversion Order 2004.

2. Other Supplementary Supplies Entitlement holder Supplementary Supplies Goulburn-Murray The Authority, after ensuring that all Broken system in-valley Rural Water Authority commitments have been satisfied may, arrange to provide supplementary supplies from the Broken system to the lower Goulburn system downstream of the Broken River confluence and the Murray system via the lower Goulburn system. Such supplementary supplies would only be provided when the Broken system sales allocation is not less than the maximum sales allocation specified under Schedule 1(2) to this Order. The volume supplemented would be no greater than the surplus resources in the Broken system over and above that required to sustain the maximum sales allocation specified under Schedule 1(2) to this Order, to meet Broken system in-valley commitments in that water year.

3. Losses incurred in providing Bulk Entitlements held by other Authorities as Primary Entitlements Entitlement holder Losses Goulburn-Murray Average annual losses incurred in providing North East Water Rural Water Authority Authority (urban supplies) and Goulburn-Murray Rural Water Authority (Licences and Tungamah D&S supplies) delivery entitlements = 5500 ML. 42 S 1 4 January 2005 Victoria Government Gazette

Schedule 3 Supply of Primary Entitlements 1. Supply Restrictions Where the Authority is unable to supply the full licence commitments, the Authority must assess and allocate the available water pro-rata to licensed diverters, after making provision to supply the Shepparton East Community Water Supply Scheme under Schedule 1(3) to this Order and the other primary entitlements listed under Schedule 2(1) to this Order, in accordance with the following restriction formula: R = 0.5*A if S < 0.5 or R = S*A if 0.5 < S < 1.0 or R = A if S > 1.0 Where Ð R = Restricted supply to D&S and Urban entitlement holders under Schedule 1(3) to this Order and Schedule 2(1) to this Order, A = Unrestricted supply to D&S and Urban entitlement holders under Schedule 1(3) to this Order and Schedule 2(1) to this Order, S = allocation for the Broken system licensed diverters determined by the Authority expressed as a decimal fraction, and any agreement made under section 124(7) of the Act. 2. Sales Water The Authority must determine any allocation of sales water made by it in any year in accordance with principles: (a) proposed to the Minister by the Authority after consultation with its retail customers; and (b) approved by the Minister. 3. Other Supplementary Supplies 3.1 The Authority must determine the volume of supplementary water to the Lower Goulburn and Murray systems made by it in any year in accordance with principles : (a) proposed to the Minister by the Authority; and (b) approved by the Minister. 3.2 The Authority must not use a methodology to determine any allocation under sub-clause 3.1 which, would result in the Authority being unable to supply fully regulated licence and sales entitlements in that water year. Victoria Government Gazette S 1 4 January 2005 43

Schedule 4 Meeting Minimum Environmental Flows 1. Operational arrangements The following operational arrangements apply for meeting the environmental minimum flows: (a) in the reach of Broken River between Lake Nillahcootie and Broken Weir during the months of June to November inclusive, the reduction in mean daily flow measured at Moorngag should be no greater than 35% of the previous dayÕs average flow and the increase should be no greater than 210% of the previous dayÕs average flow. (b) in the reach of Broken River between Broken Weir and CaseyÕs Weir during the months of December to May inclusive, the reduction in mean daily flow measured upstream of Casey's Weir should be no greater than 30% of the previous dayÕs average flow and the increase should be no greater than 150% of the previous dayÕs average flow. (c) in the reach of Broken River downstream of CaseyÕs Weir and upstream of its confluence with the Goulburn River during the months of December to May inclusive, the reduction in mean daily flow measured at Gowangardie Weir should be no greater than 45% of the previous dayÕs average flow and the increase should be no greater than 180% of the previous dayÕs average flow. 2. Operational tolerances The average daily flow over any continuous 14 day period should not be less than the specified environmental minimum flow.

Schedule 5 Calculation of Natural Flows 1. Natural flow Broken River at Morngang

Qnat @ Morng= 0.57*Q404208 Where

Q404208 Ð Gauged flow in Moonee Creek as measured at Station Index Number 404208 2. Natural flow Broken River downstream of Broken Weir

Qnat @ Brok Weir = 2.28*Q404208 Where

Qxxxxxx Ð is as in 1 above 3. Natural flow Holland Creek downstream of Holland Weir

Qnat @ Holl Ck d/s Holland Weir = 1.03*Q404207 Where

Q404207 Ð Gauged flow in Holland Creek as measured at Station Index Number 404207 4. Natural flow Broken River at Gowangardie Weir

Qnat Gowan W = 4.75* Q404208 + 1.36*Q404207 Where

Qxxxxxx Ð are as in 1 and 3 above 44 S 1 4 January 2005 Victoria Government Gazette

Water Act 1989 BULK ENTITLEMENT (BROKEN SYSTEM Ð TUNGAMAH DOMESTIC AND STOCK, URBAN SUPPLIES ÐGOULBURN-MURRAY WATER) CONVERSION ORDER 2004 CONTENTS 1. CITATION 2. EMPOWERING PROVISIONS 3. COMMENCEMENT 4. DEFINITIONS 5. CONVERSION TO BULK ENTITLEMENTS 6. BULK ENTITLEMENT 7. OBLIGATIONS TO SUPPLY PRIMARY ENTITLEMENTS 8. CALCULATING THE FLOW 9. RESTRICTION OF SUPPLY 10. OPERATIONAL ARRANGEMENTS 11. GRANTING WATER CREDITS 12. SAVING OF DISTRIBUTION LOSSES 13. METERING PROGRAM 14. REPORTING REQUIREMENTS 15. WATER SUPPLY SOURCE COST 16. WATER ACCOUNTING 17. WATER RESOURCE MANAGEMENT COSTS 18. DUTY TO KEEP ACCOUNTS 19. DUTY TO MAKE PAYMENTS 20. DATA 21. DISPUTE RESOLUTION Victoria Government Gazette S 1 4 January 2005 45

Water Act 1989 BULK ENTITLEMENT (BROKEN SYSTEM Ð TUNGAMAH DOMESTIC AND STOCK, URBAN SUPPLIES ÐGOULBURN-MURRAY WATER) CONVERSION ORDER 2004 I, John Thwaites, Minister for Water, under the provisions of the Water Act 1989, make the following Order:Ð 1. CITATION This Order may be cited as the the Bulk Entitlement (Broken System Ð Tungamah Domestic and Stock, Urban Supplies Ð Goulburn-Murray Water) Conversion Order 2004. 2. EMPOWERING PROVISIONS This Order is made under sections 43 and 47 of the Water Act 1989. 3. COMMENCEMENT This Order comes into operation on the day published in the Government Gazette. 4. DEFINITIONS In this Order Ð ÒActÓ means the Water Act 1989; ÒAHDÓ means the Australian Height Datum; ÒAuthorityÓ means the Goulburn-Murray Rural Water Authority; ÒBroken BasinÓ means the area of land previously designated by the Australian Water Resources Council (AWRC) as Basin Number 4 in the South-East Coast Division of the AWRC Australian Continental Drainage Divisions; ÒBroken Basin Water AccountsÓ means an annual report, required by the Minister, on compliance by entitlement holders and licensees in the Broken Basin with the terms of their bulk entitlements or licences; ÒBroken entitlement holderÓ means the Goulburn-Murray Rural Water Authority as holder of the Bulk Entitlement (Broken System Ð Goulburn-Murray Water) Conversion Order 2004; ÒBroken systemÓ means the water supply systems supplied from (a) Lake Nillahcootie, (b) Lake Mokoan, (c) the inflows to these storages, and (d) the flows harvested by the Broken River and tributaries downstream of the storages; Òcreek systemÓ means the Broken Creek downstream of CaseyÕs Weir including all its tributaries down to Katamatite, and the Major Creek down to the measuring point at LovesÕ Road and the Boosey Creek down to Katamatite and all their tributaries including all the pools formed upstream of the diversion weirs; Òdistribution systemÓ means the channels, pipes and other works, and the natural or modified waterways which are used to transport water from the creek system; ÒDomestic and Stock (D&S) systemÓ means the channels, pipes, and other works used to distribute water diverted from the creek system at the specified points; Òentitlement holderÓ means a person or water agency holding a bulk entitlement under the Act; Òheadworks systemÓ means: (a) Lake Nillahcootie, Lake Mokoan and the associated water supply works and other assets, as shown from time to time in the Asset Register of Goulburn-Murray Rural Water Authority as owner of the storage, and (b) the system waterway; 46 S 1 4 January 2005 Victoria Government Gazette

ÒlicenceÓ means any licence granted under Part 4 of the Act; Òlicensed divertersÓ means persons holding licences under Section 51(1)(a) of the Act; ÒResource ManagerÓ means any person appointed by Instrument by the Minister under section 43A(1)(b) of the Act to carry out the functions in accordance with the terms and conditions specified in the Instrument of Appointment; Òspecified pointsÓ means the flows at the diversion points under clause 8; Òsource costÓ means the total annual cost to: (a) operate, maintain and administer, and (b) make releases from, and (c) keep an account of the water available to the entitlement holders at any one time of, and (d) meet the finance charges including repayment of principal, calculated by reference to the weighted average cost of borrowing (based on internal Treasury arrangements and externally borrowed funds) associated with any new or replacement works undertaken on, and (e) make an appropriate allowance for asset consumption, using the renewal annuity approach or other asset consumption methodology directed by the Minister to apply to the Authority and other authorities, associated with, and (f) assist in managing the catchment for water supply purposes to protect the quality of water diverted to, stored in and delivered from, and (g) contribute to the cost of salinity mitigation schemes along the River Murray or elsewhere and operated by or on behalf of Victoria, commensurate with the extent to which entitlement holders in the Broken Basin rather than other water users in Victoria generate a need for these schemes, and (h) manage the stream gauging stations necessary to operate, and (i) implement, in accordance with sub-clause 18.3, the program to manage the environmental effects of, the components of the headworks system; ÒStorage OperatorÓ means any person appointed by Instrument by the Minister under section 43A(1)(a) of the Act to carry out the functions in accordance with the terms and conditions specified in the Instrument of Appointment; Òsystem waterwayÓ means the Broken River downstream of Lake Nillahcootie, including the pools formed immediately upstream of Nillahcootie dam, Mokoan dam, Broken River diversion weir, Holland Creek diversion weir, Casey's Weir and Gowangardie weir, down to the confluence with the Goulburn River; ÒyearÓ means the 12 months commencing 1 July. 5. CONVERSION TO BULK ENTITLEMENTS All of the AuthorityÕs entitlement to water from the system waterway is converted to a bulk entitlement on the specified matters and conditions set out in this Order. 6. BULK ENTITLEMENT 6.1 Subject to sub-clauses 6.2 and 6.3, the Authority may take water from the creek system up to a maximum annual volume of 6150 ML including water losses incurred within the D&S system, being the sum total of the flows measured at the specified points, in order to supply the primary entitlements specified under clause 7. 6.2 Subject to sub-clause 6.3, the average volume of water taken annually by the Authority from the creek system over any period of five consecutive years shall not exceed 5325 ML. Victoria Government Gazette S 1 4 January 2005 47

6.3 The volumes specified in sub-clauses 6.1 and 6.2 can be reviewed should supply arrangements change in the future. 7. OBLIGATIONS TO SUPPLY PRIMARY ENTITLEMENTS Water taken from the creek system under this bulk entitlement must be used to supply the following primary entitlements; (a) D&S water supplied from the creek system; and (b) additional supplies further detailed in Schedule 1 to this Order; in accordance with the restriction policy specified in clause 9. 8. CALCULATING THE FLOW For purposes of clause 6 the volume of water taken from the creek system in any year is calculated as the sum of annual volumes diverted from (a) Broken Creek at Flynn's weir measured at the Authority's monitoring point DV 7158, (b) Broken Creek at Waggarandal weir measured at the Authority's monitoring points DV 7220 and DV 7225, (c) Broken Creek downstream Waggarandal weir measured at the Authority's monitoring point DV 7230, (d) Major Creek at Loves' Road measured at the Authority's monitoring point DV 7350. 9. RESTRICTION OF SUPPLY Where the Authority is unable to supply the full annual entitlement, it must assess and supply water in accordance with the following restrictions procedure: 9.1 In August and in each subsequent month until restrictions are no longer necessary for the remainder of the year, the Authority must decide whether to restrict this bulk entitlement in that year. 9.2 Whenever the seasonal allocation for the Broken Basin licensed diverters determined by the Authority drops below 100 percent licence volume then it must restrict this entitlement in accordance with the following formulae: R = 0.5*A if S < 0.5 or R = S*A if 0.5 < S < 1.0 or R = A if S > 1.0 where Ð R = the Authority's restricted annual entitlement for supplying primary entitlements specified under clause 7 (ML), A = the Authority's maximum annual entitlement specified under sub-clause 6.1 (ML), S = the seasonal allocation for the Broken system licensed diverters determined by the Broken entitlement holder expressed as a decimal fraction. 9.3 In any year if this bulk entitlement continues to be restricted in May, unless otherwise determined by the Broken entitlement holder, the same extent of restrictions shall apply in the following month of June. The allocation for July shall be set to 50 percent of the maximum annual entitlement specified under sub-clause 6.1. 9.4 In any year the Broken entitlement holder must review the restriction and revoke the restriction for that year whenever S equals or exceeds 100% licence volume. 9.5 The Authority is not eligible for credits for any amount of the Authority's annual entitlement not taken due to any restriction imposed under sub-clause 9.2. 10. OPERATIONAL ARRANGEMENTS The Authority must in its operational strategy, include operational arrangements for the supply of water under this entitlement. 48 S 1 4 January 2005 Victoria Government Gazette

11. GRANTING WATER CREDITS 11.1 On the application of the Authority, the Minister may grant the Authority credit for any water (a) taken from the creek system and returned to the creek system; and/or (b) delivered from another distribution system to the creek system; against the total amount of its entitlement, as set out in this clause. 11.2 The Minister may grant a credit for releases made directly to the creek system from the Authority's distribution system if: (a) the return flow is treated to a high standard or is at least of similar quality to the water taken by the Authority from the creek system; and (b) the return flow is considered by the Minister to be useful in meeting passing flows or other Authorities' commitments to supply water. 11.3 The Minister may, by written notice to the Authority, specify any period or periods during which the Authority may not redeem credit against its annual entitlement. 12. SAVING OF DISTRIBUTION LOSSES 12.1 Where measures are taken which permanently reduce losses incurred by the Authority in conveying water via the creek system to primary entitlement holders, the water saved may be transferred or converted into new rights to water in any of the following ways Ð (a) the Authority may transfer part of a bulk entitlement under section 46 of the Act; or (b) the Authority may sell part of a bulk entitlement to licensed diverters, under section 46A of the Act; and in each case the transfer or conversion must be in accordance with the provisions of this clause. 12.2 The Authority may only transfer or convert savings into new rights to water if: (a) the Authority has applied for recognition of the savings to the Minister; and (b) the Minister has consulted with the Broken system entitlement holders; and (c) the Minister has approved the application with any qualifications consistent with requirements under the Act. 12.3 An application for savings to be recognised under sub-clause 12.2 must: (a) provide evidence that the savings have been achieved; (b) demonstrate satisfactorily that the savings are permanent; (c) if it requires several years of operation to be sure that the full expected savings have been achieved, propose appropriate staging for recognition of the full savings. 12.4 If any part of the AuthorityÕs distribution system is a natural or modified waterway or wetland Ð (a) the Authority must not make savings or other changes to the operation of that part of the distribution system which: (i) are outside guidelines established in an environmental management plan for the waterway or wetland prepared by the Authority and endorsed by the Minister; or (ii) in the absence of any guidelines established under paragraph (i), may have adverse effects on environmental values; unless it has: (A) assessed the impact of such proposed savings or changes, and developed any required compensatory or ameliorative measures, consistent with the conservation policies of the government; and (B) referred to the Minister a proposal setting out the savings or changes, along with a report on the environmental assessment carried out under sub-paragraph (i) and on any alternatives to the proposal which have been considered and assessed. Victoria Government Gazette S 1 4 January 2005 49

(b) The Minister may suggest conditions which might need to be attached to the proposal before it is approved. 12.5 If the Minister considers that: (a) savings could be made in the Authority's distribution losses which would result in significant environmental benefits, but which may not be economic if only the value of the water saved is considered; or (b) the manner of operating any natural or modified waterway or wetland forming part of the Authority's distribution system is contributing to a continuing decline in the environmental values of that waterway or wetland; the Minister may determine that a review should be undertaken, and the Authority must co- operate in the conduct of the review. 12.6 If any water Ð (a) is taken by the Authority under clause 6 but is found to be surplus to what is required by primary entitlement holders, or (b) represents water drained from the Authority's D&S supply areas supplied from the creek system Ð then the Authority must, while meeting its responsibilities to manage water efficiently and to supply primary entitlements: (i) use its best endeavours to manage this water so that it is disposed of in accordance with practices agreed to by the Authority and the Minister; and (ii) in the absence of such agreed practices, consult with the Minister before making any changes to the way this water is managed which may have adverse effects on environmental values. 12.7 Subject to this clause, the Authority may determine what savings are made in its distribution losses and may determine how such savings are used or disposed of, except in the following cases: (a) the Authority may make an agreement with any other person under which that person contributes to the cost of savings and the Authority transfers or converts a share of the resultant savings into new rights to water held by the other person, subject to relevant processes referred to in sub-clause 12.1 being followed; (b) the Minister may pay for and use for environmental purposes a reasonable share of the most economical savings that are available, which share may be determined by the Minister in consultation with the Authority. 12.8 Where savings made in the Authority's losses are to be used for environmental purposes under sub-clause 12.7(b), the Minister may: (a) require the Authority, in consultation with the Minister, to apply for recognition of savings in accordance with sub-clause 12.2(a); (b) after consulting with Broken system entitlement holders, approve the application with any qualifications which the Minister thinks fit. 12.9 Instead of converting savings into new rights, the Authority may apply for recognition of savings under sub-clause 12.2(a) and use any savings recognised to reduce the frequency of restrictions or reduce supply shortfalls during periods of restricted supply, of existing primary entitlement. 13. METERING PROGRAM 13.1 The Authority must propose to the Minister within 12 months of the date of this Order a metering program to demonstrate compliance with this bulk entitlement with respect to all water taken by the Authority under this bulk entitlement. 50 S 1 4 January 2005 Victoria Government Gazette

13.2 The Minister may: (a) approve the program proposed under sub-clause 13.1; or (b) require the Authority to amend the proposed program; and (c) require the Authority Ð (i) to review the program approved by the Minister if, in the Minister's opinion, it is, at any time, no longer appropriate; and (ii) to propose an amended program to the Minister; or (d) not approve the program. 13.3 The Authority must, at its cost, and in accordance with any guidelines issued from time to time by the Minister: (a) implement and maintain the approved metering program; and (b) maintain metering equipment and associated measurement structures in good condition; and (c) ensure that metering equipment is periodically re-calibrated; and (d) if rating curves are used to calculate flows, ensure that the curves are regularly checked and, if necessary, revised; and (e) keep a record of all work undertaken under paragraphs (a), (b), (c) and (d). 14. REPORTING REQUIREMENTS 14.1 The Authority, jointly with the Storage Operator where appropriate, may be required to report to the Minister or to a person nominated by the Minister on all or any of the following: (a) the daily amounts of water taken from the creek system under this entitlement; (b) the annual amounts of water taken from the creek system under this entitlement; (c) any credits granted under clause 11; (d) the approval, amendment and implementation of the metering program approved under sub-clause 13.2; (e) any temporary or permanent transfer of all or part of this bulk entitlement; (f) any period of restriction and the degree of restriction on supplies to D&S supplies; (g) any amendment to this bulk entitlement; (h) any new bulk entitlements granted to the Authority with respect to D&S supplies; (i) any failure by the Authority to comply with any provision of this bulk entitlement; (j) any difficulties experienced or anticipated by the Authority in complying with this bulk entitlement and any remedial action taken or proposed. 14.2 The Minister may require the Authority to report on all or any of the matters set out in sub- clause 14.1: (a) in writing or in such electronic form as may be agreed between the Authority and the Minister; and (b) within 14 days of receiving the Minister's written request. 14.3 The Authority must, for the period of the preceding year, report in its Annual Report on each of the matters set out in sub-clause 14.1, except : (a) paragraph (a) of sub-clause 14.1; and (b) with the approval of the Minister, any particular failure referred to in paragraph (i) of sub-clause 14.1. 14.4 The Resource Manager may from time to time require the Authority to report, on all or any of the matters set out in paragraphs (a) to (j) of sub-clause 14.1. Victoria Government Gazette S 1 4 January 2005 51

14.5 Any report under sub-clause 14.4 must be made: (a) in such form as may be agreed between the Authority and the Resource Manager; and (b) unless the Authority and the Resource Manager agree otherwise Ð (i) within 24 hours of the Authority receiving a request for a report on any matter set out in paragraphs (a) and (b) of sub-clause 14.1; or (ii) within 14 days of the Authority receiving a request for a report on any matter set out in paragraph (c) to (i) of sub-clause 14.1. 15. WATER SUPPLY SOURCE COST 15.1 The Authority must pay the Broken entitlement holder a storage annual charge, calculated as follows:

CD&S/URB = $ [{ (A/E)xS} + R] where

CD&S/URB is the storage charge ($) payable by the Authority. A is the annual entitlement (ML) as specified under sub-clause 6.1. E is the total entitlement volume (ML) that can be supplied from the Headworks System by the Broken entitlement holder as specified under Schedule 2 to this Order. Cs is the headworks system source cost estimated by the Storage Operator as specified in ÒBulk Entitlement (Broken System Ð Goulburn-Murray Water) Conversion Order 2004Ó, for the year for which the charge is calculated ($). R is the return to Headworks System equity holders for the year for which the charge is calculated ($). This amount should be collected by the Authority from the primary entitlement holder specified in Schedule 1 to this Order and passed on to the Broken entitlement holder. 15.2 The Authority must pay the charge, whether or not its annual supply is restricted in any year. 15.3 The method of determining the annual source charge as specified under sub-clause 15.1 shall be adopted, until in the future, an alternative method of determining the annual source charge is developed by the Authority and approved by the Minister. 16. WATER ACCOUNTING 16.1 For the purpose of determining how much water has been taken by the Authority under its annual entitlement the amounts measured under sub-clause 13.3(a) are conclusive. 16.2 If the equipment referred to in sub-clause 13.3(b) fails for any reason to operate accurately or correctly for any period, the amounts for the purpose of sub-clause 16.1 are deemed to be the same as the average amount taken by the Authority under its annual entitlement for the same period for the preceding three years or such other method of estimation applicable within the Broken Basin, as proposed by the Authority and agreed to by the Minister. 17. WATER RESOURCE MANAGEMENT COSTS 17.1 Subject to sub-clause 19.2, the Authority must pay the Resource Manager a proportion of the costs incurred by the Resource Manager to perform the functions specified in the relevant Instrument of Appointment. 17.2 The proportion of the costs referred to in sub-clause 17.1 will be the same as the ratio of the Authority's bulk entitlement under this Order to the total entitlement held by the Broken entitlement holder, unless a different proportion applicable within the Broken Basin is proposed by the Authority and agreed to by the Minister. 18. DUTY TO KEEP ACCOUNTS 18.1 Separate accounts of all costs and payments must be kept by the Resource Manager in respect to sub-clause 17.1. 52 S 1 4 January 2005 Victoria Government Gazette

18.2 The Resource Manager must, by 1 February in any year, provide the Authority with an estimate, in respect of the ensuing year, of the costs referred to in sub-clause 17.2. 18.3 Accounts required to be kept under this clause must be made available for inspection by the Authority upon request. 19. DUTY TO MAKE PAYMENTS 19.1 Any amounts payable by the Authority under sub-clause 17.1 must be paid in arrears, within 30 days from the end of the month of the Authority receiving the respective invoices, for amounts payable under the clause, unless the Authority and the persons to whom the amounts are payable agree otherwise. 19.2 The Authority is not obliged to make any payment to the Resource Manager, under clause 17 unless the Resource Manager chooses to comply with the provisions of this clause relevant to that payment. 20. DATA 20.1 The Minister will use his or her best endeavours to ensure that all hydrological and other data required by the Authority to comply with this bulk entitlement are made available to the Authority. 20.2 The Authority must make available data collected for the purpose of the metering program and reporting under clauses 13 and 14 to any person, subject to the person paying any fair and reasonable access fee imposed by the Authority to cover the costs of making the data available. 21. DISPUTE RESOLUTION 21.1 If a difference or dispute arises between the Authority, the Minister, the other entitlement holders relevant to this Order, the Storage Operator and the Resource Manager, or any of them (the "parties"), concerning the interpretation or application of this Order, a party may give written notice to another party requiring the matter to be determined by an independent expert. 21.2 The notice requiring that the matter be determined by independent expert may only be given 14 days after the matter has arisen. The independent expert may only commence to determine the matter a further 14 days after the giving of that notice. 21.3 The other entitlement holders relevant to this Order, the Storage Operator and the Resource Manager will only be subject to the resolution procedure set out in this clause if they consent to the procedure. 21.4 The independent expert will be either Ð (a) a person agreed to by the parties to the difference or dispute; or (b) if the parties cannot agree, a person nominated by the President of the Institute of Arbitrators, Australia. 21.5 The independent expert must reach a conclusion on the matter within 30 days of it being referred, but has power to extend the period for reaching a conclusion on the matter by a further 30 days. 21.6 The independent expert must send a copy of the conclusion and its supporting reasons to each party to the difference or dispute. 21.7 In any difference or dispute to which the Minister is a party Ð (a) the independent expert must express the conclusion as a recommendation; and (b) the Minister must consider any recommendation made under paragraph (a) before deciding to give a direction under s 307 or to take any other action under the Act in relation to the difference or dispute. Victoria Government Gazette S 1 4 January 2005 53

21.8 In any difference or dispute to which the Minister is not a party, any conclusion by an independent expert is final and binding on the parties. 21.9 The Authority may request the Minister to determine the apportionment of the costs of and incidental to every reference, including the costs of the independent expert. Dated 17 December 2004 JOHN THWAITES Minister for Water Note: An explanatory note that accompanies this Order is available from the Department of Sustainability and Environment.

Schedule 1 Primary Entitlements Ð Additional Supplies Bulk Entitlements held by other Authorities as Primary Entitlements Entitlement holder Order North East Region Bulk Entitlement (Broken System Ð Tungamah, Devenish & Water Authority St James Ð North East Water) Conversion Order 2004.

Schedule 2 Total Entitlement Volume ÒEÓ for purposes of calculating Water Supply Source Costs under sub-clause 15.1 Entitlement Holder Entitlement Entitlement Volume (ML/annum) Broken entitlement Licences 25328 holder D&S 1348 Goulburn/Murray Supplement 7002 Losses 5500 Goulburn-Murray D&S and urban including Rural Water Authority D&S losses 6150 Total Entitlement Volume ÒEÓ 45328 54 S 1 4 January 2005 Victoria Government Gazette

Water Act 1989 BULK ENTITLEMENT (BROKEN SYSTEM Ð TUNGAMAH, DEVENISH & ST JAMES Ð NORTH EAST WATER) CONVERSION ORDER 2004 CONTENTS 1. CITATION 2. EMPOWERING PROVISIONS 3. COMMENCEMENT 4. DEFINITIONS 5. CONVERSION TO BULK ENTITLEMENTS 6. BULK ENTITLEMENT 7. RESTRICTION OF SUPPLY 8. OPERATIONAL ARRANGEMENTS 9. GRANTING WATER CREDITS 10. METERING PROGRAM 11. REPORTING REQUIREMENTS 12. WATER SUPPLY SOURCE COST 13. WATER ACCOUNTING 14. WATER RESOURCE MANAGEMENT COSTS 15. DUTY TO KEEP ACCOUNTS 16. DUTY TO MAKE PAYMENTS 17. DATA 18. DISPUTE RESOLUTION Victoria Government Gazette S 1 4 January 2005 55

Water Act 1989 BULK ENTITLEMENT (BROKEN SYSTEM Ð TUNGAMAH, DEVENISH & ST JAMES Ð NORTH EAST WATER) CONVERSION ORDER 2004 I, John Thwaites, Minister for Water, under the provisions of the Water Act 1989, make the following Order:Ð 1. CITATION This Order may be cited as the the Bulk Entitlement (Broken System Ð Tungamah, Devenish & St James Ð North East Water) Conversion Order 2004. 2. EMPOWERING PROVISIONS This Order is made under sections 43 and 47 of the Water Act 1989. 3. COMMENCEMENT This Order comes into operation on the day published in the Government Gazette. 4. DEFINITIONS In this Order Ð ÒActÓ means the Water Act 1989; ÒAHDÓ means the Australian Height Datum; ÒAuthorityÓ means the North East Region Water Authority; ÒBroken BasinÓ means the area of land previously designated by the Australian Water Resources Council (AWRC) as Basin Number 4 in the South-East Coast Division of the AWRC Australian Continental Drainage Divisions; ÒBroken Basin Water AccountsÓ means an annual report, required by the Minister, on compliance by entitlement holders and licensees, in the Broken Basin, with the terms of their bulk entitlements or licences; ÒBroken entitlement holderÓ means the Goulburn-Murray Rural Water Authority as holder of the Bulk Entitlement (Broken System Ð Goulburn-Murray Water) Conversion Order 2004; ÒBroken SystemÓ means the water supply systems supplied from: (a) Lake Nillahcootie, (b) Lake Mokoan, (c) the inflows to these storages, and (d) the flows harvested by the Broken River and tributaries downstream of the storages; Òcreek systemÓ means the Broken Creek downstream of CaseyÕs Weir including all its tributaries down to Katamatite, and the Major Creek down to the measuring point at LovesÕ Road and the Boosey Creek down to Katamatite and all their tributaries including all the pools formed upstream of the diversion weirs; Òdistribution systemÓ means the channels, pipes and other works, and the natural or modified waterways which are used to transport water from the creek system; Òentitlement holderÓ means a person or water agency holding a bulk entitlement under the Act; Òheadworks systemÓ means: (a) Lake Nillahcootie, Lake Mokoan and the associated water supply works and other assets, as shown from time to time in the Asset Register of Goulburn-Murray Rural Water Authority as owner of the storage, and (b) the system waterway; ÒlicenceÓ means any licence granted under Part 4 of the Act; Òlicensed divertersÓ means persons holding licences under Section 51(1)(a) of the Act; 56 S 1 4 January 2005 Victoria Government Gazette

ÒResource ManagerÓ means any person appointed by Instrument by the Minister under section 43A(1)(b) of the Act to carry out the functions in accordance with the terms and conditions specified in the Instrument of Appointment; Òsource costÓ means the total annual cost to: (a) operate, maintain and administer, and (b) make releases from, and (c) keep an account of the water available to the entitlement holders at any one time of, and (d) meet the finance charges including repayment of principal, calculated by reference to the weighted average cost of borrowing (based on internal Treasury arrangements and externally borrowed funds) associated with any new or replacement works undertaken on, and (e) make an appropriate allowance for asset consumption, using the renewal annuity approach or other asset consumption methodology directed by the Minister to apply to the Authority and other authorities, associated with, and (f) assist in managing the catchment for water supply purposes to protect the quality of water diverted to, stored in and delivered from, and (g) contribute to the cost of salinity mitigation schemes along the River Murray or elsewhere and operated by or on behalf of Victoria, commensurate with the extent to which entitlement holders in the Broken Basin rather than other water users in Victoria generate a need for these schemes, and (h) manage the stream gauging stations necessary to operate, and (i) implement, in accordance with sub-clause 18.3, the program to manage the environmental effects of, the components of the headworks system; Òspecific pointsÓ means the flow measuring points at the Authority's three water treatment facilities for supplying the townships of Tungamah, Devenish and St James; ÒStorage OperatorÓ means any person appointed by Instrument by the Minister under section 43A(1)(a) of the Act to carry out the functions in accordance with the terms and conditions specified in the Instrument of Appointment; Òsystem waterwayÓ means the Broken River downstream of Lake Nillahcootie, including the pools formed immediately upstream of Nillahcootie dam, Mokoan dam, Broken River diversion weir, Holland Creek diversion weir, CaseyÕs weir and Gowangardie weir, down to the confluence with the Goulburn River; ÒyearÓ means the 12 months commencing 1 July. 5. CONVERSION TO BULK ENTITLEMENTS All of the AuthorityÕs entitlement to water from the creek system is converted to a bulk entitlement on the specified matters and conditions set out in this Order. 6. BULK ENTITLEMENT The Authority may take water from the creek system in order to supply the townships of Tungamah, Devenish and St James up to a maximum annual volume of 135 ML being the sum total of measured annual flows at all of the specified points defined under clause 4. 7. RESTRICTION OF SUPPLY Where the Authority is unable to supply the full annual entitlement, it must assess and supply water in accordance with the following restrictions procedure: 7.1 In August and in each subsequent month until restrictions are no longer necessary for the remainder of the year, the Broken entitlement holder must decide whether to restrict this bulk entitlement in that year. Victoria Government Gazette S 1 4 January 2005 57

7.2 Whenever the seasonal allocation for the Broken Basin licensed diverters determined by the Broken entitlement holder drops below 100 percent licence volume then the Broken entitlement holder may restrict this entitlement in accordance with the following formula: R = 0.5*A if S < 0.5 or R = S*A if 0.5 < S < 1.0 or R = A if S > 1.0 where: R = the AuthorityÕs restricted annual entitlement (ML) for supplying the towns specified under clause 6. A = the AuthorityÕs maximum annual entitlement (ML) specified under clause 6. S = the seasonal allocation for the Broken licensed diverters determined by the Broken entitlement holder expressed as a decimal fraction. 7.3 In any year if this bulk entitlement continues to be restricted in May, unless otherwise determined by the Broken entitlement holder, the same extent of restrictions shall apply in the following month of June. The allocation for July shall be set to 50 percent of the maximum annual entitlement specified under clause 6. 7.4 In any year the Broken entitlement holder must review the restriction and revoke the restriction for that year whenever S equals or exceeds 100% licence volume. 7.5 The AuthorityÕs annual entitlement cannot be restricted in any year unless the Broken entitlement holder advises the Authority in writing within 14 days of a decision to restrict the entitlement under clause 6. 7.6 The Authority is not eligible for credits for any amount of the AuthorityÕs annual entitlement not taken due to any restriction imposed under sub-clause 7.2. 8. OPERATIONAL ARRANGEMENTS 8.1 The Authority and the Broken entitlement holder must endeavour to agree on operational arrangements for the supply of water under this entitlement. 8.2 If the Authority and the Broken entitlement holder have not reached agreement under sub- clause 8.1 within 12 months of the date of this Order, either party may give written notice to the other party requiring the matter to be determined in accordance with clause 17. 9. GRANTING WATER CREDITS 9.1 On the application of the Authority, the Minister may grant the Authority credit for any water (a) taken from the creek system and returned to the creek system; and/or (b) delivered from another distribution system to the creek system; against the total amount of its entitlement, as set out in this clause. 9.2 The Minister may grant a credit for releases made directly to the creek system from the AuthorityÕs distribution system if: (a) the return flow is treated to a high standard or is at least of similar quality to the water taken by the Authority from the creek system; and (b) the return flow is considered by the Minister to be useful in meeting passing flows or other AuthoritiesÕ commitments to supply water. 9.3 The Minister may, by written notice to the Authority, specify any period or periods during which the Authority may not redeem credit against its annual entitlement. 10. METERING PROGRAM 10.1 The Authority must propose to the Minister within 12 months of the date of this Order a metering program to demonstrate compliance with this bulk entitlement with respect to all water taken by the Authority under this bulk entitlement; and 58 S 1 4 January 2005 Victoria Government Gazette

10.2 The Minister may: (a) approve the program proposed under sub-clause 10.1; or (b) require the Authority to amend the proposed program; and (c) require the Authority Ð (i) to review the program approved by the Minister if, in the MinisterÕs opinion, it is, at any time, no longer appropriate; and (ii) to propose an amended program to the Minister; or (d) not approve the program. 10.3 The Authority must, at its cost, and in accordance with any guidelines issued from time to time by the Minister: (a) implement and maintain the approved metering program; and (b) maintain metering equipment and associated measurement structures in good condition; and (c) ensure that metering equipment is periodically re-calibrated; and (d) if rating curves are used to calculate flows, ensure that the curves are regularly checked and, if necessary, revised; and (e) keep a record of all work undertaken under paragraphs (a), (b), (c) and (d). 11. REPORTING REQUIREMENTS 11.1 The Authority, jointly with the Storage Operator where appropriate, may be required to report to the Minister or to a person nominated by the Minister on all or any of the following: (a) the daily amounts of water taken from the creek system under this entitlement; (b) the annual amounts of water taken from the creek system under this entitlement; (c) any credits granted under clause 9; (d) the approval, amendment and implementation of the metering program approved under sub-clause 10.2; (e) any temporary or permanent transfer of all or part of this bulk entitlement; (f) any period of restriction and the degree of restriction on supplies to Tungamah, Devenish and St James; (g) any amendment to this bulk entitlement; (h) any new bulk entitlements granted to the Authority with respect to Tungamah, Devenish and St James urban water supply systems; (i) any failure by the Authority to comply with any provision of this bulk entitlement; (j) any difficulties experienced or anticipated by the Authority in complying with this bulk entitlement and any remedial action taken or proposed. 11.2 The Minister may require the Authority to report on all or any of the matters set out in sub- clause 11.1: (a) in writing or in such electronic form as may be agreed between the Authority and the Minister; and (b) within 14 days of receiving the MinisterÕs written request. 11.3 The Authority must, for the period of the preceding year, report in its Annual Report on each of the matters set out in sub-clause 11.1, except: (a) paragraph (a) of sub-clause 11.1; and (b) with the approval of the Minister, any particular failure referred to in paragraph (i) of sub-clause 11.1. Victoria Government Gazette S 1 4 January 2005 59

11.4 The Resource Manager may from time to time require the Authority to report on all or any of the matters set out in paragraphs (a) to (j) of sub-clause 11.1. 11.5 Any report under sub-clause 11.4 must be made: (a) in such form as may be agreed between the Authority and the Resource Manager; and (b) unless the Authority and the Resource Manager agree otherwise Ð (i) within 24 hours of the Authority receiving a request for a report on any matter set out in paragraphs (a) and (b) of sub-clause 11.1; or (ii) within 14 days of the Authority receiving a request for a report on any matter set out in paragraph (c) to (i) of sub-clause 11.1. 12. WATER SUPPLY SOURCE COST 12.1 The Authority must pay the Broken entitlement holder a storage annual charge, calculated as follows:

CURB = $ [{(A/E)xCS} + R] where:

CURB is the storage annual charge ($) payable by the Authority. A is the AuthorityÕs total annual entitlement (ML) specified under clause 6. E is the total annual entitlement (ML) held by the Broken entitlement holder as specified in Schedule 1 to this Order.

CS is the headworks system source cost estimated by the Storage Operator as specified in ÒBulk Entitlement (Broken System Ð GoulburnÐMurray Water) Conversion Order 2004Ó, for the year for which the charge is calculated ($). R is the return to headworks system equity holders for the year for which the charge is calculated ($). 12.2 The Authority must pay the charge, whether or not its annual entitlement is restricted in any year under sub-clause 7.2. 13. WATER ACCOUNTING 13.1 For the purpose of determining how much water has been taken by the Authority under its annual entitlement the amounts measured under sub-clause 10.3(a) are conclusive. 13.2 If the equipment referred to in sub-clause 10.3(b) fails for any reason to operate accurately or correctly for any period, the amounts for the purpose of sub-clause 12.1 are deemed to be the same as the average amount taken by the Authority under its annual entitlement for the same period for the preceding three years, or such other method of estimation as may be agreed to by the Authority and the Broken entitlement holder within the Broken Basin. 14. WATER RESOURCE MANAGEMENT COSTS 14.1 Subject to sub-clause 16.2, the Authority must pay the Resource Manager a proportion of the costs incurred by the Resource Manager to perform the functions specified in the relevant Instrument of Appointment. 14.2 The proportion of the costs referred to in sub-clause 14.1 will be the same as the ratio of the AuthorityÕs bulk entitlement under this Order to the total entitlement held by the Broken entitlement holder, unless a different proportion applicable within the Broken Basin is proposed by the Authority and agreed to by the Minister. 15. DUTY TO KEEP ACCOUNTS 15.1 Separate accounts of all costs and payments must be kept by the Resource Manager in respect to sub-clause 14.1. 60 S 1 4 January 2005 Victoria Government Gazette

15.2 The Resource Manager must, by 1 February in any year, provide the Authority with an estimate, in respect of the ensuing year, of the costs referred to in sub-clause 14.2. 15.3 Accounts required to be kept under this clause must be made available for inspection by the Authority upon request. 16. DUTY TO MAKE PAYMENTS 16.1 Any amounts payable by the Authority under sub-clause 14.1 must be paid in arrears, within 30 days from the end of the month of the Authority receiving the respective invoices, for amounts payable under the clauses, unless the Authority and the persons to whom the amounts are payable agree otherwise. 16.2 The Authority is not obliged to make any payment to the Resource Manager, under clause 12 unless the Resource Manager chooses to comply with the provisions of this clause relevant to that payment. 17. DATA 17.1 The Minister will use his or her best endeavours to ensure that all hydrological and other data required by the Authority to comply with this bulk entitlement are made available to the Authority. 17.2 The Authority must make available data collected for the purpose of the metering program and reporting under clauses 10 and 11 to any person, subject to the person paying any fair and reasonable access fee imposed by the Authority to cover the costs of making the data available. 18. DISPUTE RESOLUTION 18.1 If a difference or dispute arises between the Authority, the Minister, the other entitlement holders relevant to this Order, the Storage Operator and the Resource Manager, or any of them (the ÒpartiesÓ), concerning the interpretation or application of this Order, a party may give written notice to another party requiring the matter to be determined by an independent expert. 18.2 The notice requiring that the matter be determined by independent expert may only be given 14 days after the matter has arisen. The independent expert may only commence to determine the matter a further 14 days after the giving of that notice. 18.3 The other entitlement holders relevant to this Order, the Storage Operator and the Resource Manager will only be subject to the resolution procedure set out in this clause if they consent to the procedure. 18.4 The independent expert will be either Ð (a) a person agreed to by the parties to the difference or dispute; or (b) if the parties cannot agree, a person nominated by the President of the Institute of Arbitrators, Australia. 18.5 The independent expert must reach a conclusion on the matter within 30 days of it being referred, but has power to extend the period for reaching a conclusion on the matter by a further 30 days. 18.6 The independent expert must send a copy of the conclusion and its supporting reasons to each party to the difference or dispute. 18.7 In any difference or dispute to which the Minister is a party Ð (a) the independent expert must express the conclusion as a recommendation; and (b) the Minister must consider any recommendation made under paragraph (a) before deciding to give a direction under s 307 or to take any other action under the Act in relation to the difference or dispute. Victoria Government Gazette S 1 4 January 2005 61

18.8 In any difference or dispute to which the Minister is not a party, any conclusion by an independent expert is final and binding on the parties. 18.9 The Authority may request the Minister to determine the apportionment of the costs of and incidental to every reference, including the costs of the independent expert. Dated 17 December 2004 JOHN THWAITES Minister for Water Note: An explanatory note that accompanies this Order is available from the Department of Sustainability and Environment.

Schedule 1 Total Entitlement Volume ÒEÓ for purposes of calculating Water Supply Source Costs under sub-clause 12.1 Entitlement Holder Entitlement Entitlement Volume (ML/annum) Broken entitlement holder Licences 25328 D&S 1348 Goulburn/Murray Supplement 7002 Losses 5500 GoulburnÐMurray Rural D&S and urban including Water Authority D&S losses 6150 Total Entitlement Volume ÒEÓ 45328 62 S 1 4 January 2005 Victoria Government Gazette

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The Victoria Government Gazette is published by The Craftsman Press Pty Ltd with the authority of the Government Printer for the State of Victoria  State of Victoria 2005 This publication is copyright. No part may be reproduced by any process except in accordance with the provisions of the Copyright Act. Address all enquiries to the Government Printer for the State of Victoria Level 2 1 Macarthur Street 3002 Victoria Australia

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