Alpine Riverkeepers

Submission

First Five Year Review of the Snowy Water Licence

PO BOX 136 THREDBO NSW 2625 (02) 6457 7404

Our submission is for independent scrutiny and analysis of compliance / alleged and actual breaches by the Licensee of the Snowy Water Licence. We have doubts as to the impartiality, separation and efficacy of the Ministerial Corporation to conduct and administer the Snowy Water Licence and indeed, reflect the spirit and letter of the Snow Water Outcomes Implementation Deed. We have grave concerns as to the ongoing failure of the MC to establish the

Snowy Scientific Committee and question the nature, the construct and efficacy of the Water Consultation and Liaison Committee.

We note the delay in returning flows to the Snowy River through time delays in completing the Jindabyne Dam project, the failure to remove the Coffer Dam, the re-commissioning of the Mowamba Aqueduct and the transfers of water from the Jindabyne Dam arguably below the well tried and baseline 'drought' or minimum storage levels further exacerbating the lack of environmental flows to the Snowy River.

The MC and Licensee have apparently failed to meet targeted flow regimes and require judicial scrutiny in this respect.

There are patent problems with water accounting pertaining and apparent invocation of the 'Mowamba Borrowings' in order to use water dedicated to the Snowy River for other purposes.

The MC and Licensee have failed in their public duty to properly communicate including forewarning of changes in lake levels also impacting on environmental flows to the Snowy River and we consider this is in part due to the 'Commercial in Confidence' clause, which clearly does not serve the broader public interest.

We therefore seek referral to appropriate NSW and Federal Courts to review and

examine compliance and adherence to the Snowy Water Licence including judgement on the ongoing suitability of both parties to variously hold / administer

the Snowy Water Licence.

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DEFINITIONS: (74) “Water Consultation and Liaison Committee” means the Water Consultation and Liaison Committee established under the Snowy Water Inquiry Outcomes Implementation Deed; (28) “Increased Flow Requirements” means the obligations of the Licensee under Schedule Three, as amended from time to time under clause 10.4; (29) “Increased Flows” means the Snowy Montane Rivers Increased Flows, the Snowy Montane Rivers External Increased Flows and the Snowy River Increased Flows; (61) “Snowy River Increased Flows” means releases of water in addition to the Base Passing Flow that: (a) the Licensee releases from the Jindabyne Dam into the Snowy River; and/ or (b) the Licensee releases from either or both of the Mowamba River and Cobbon Creek aqueducts into the Snowy River, in both cases under Part Two of Schedule Three. NB: From Snowy Water Licence: (8) “Base Passing Flow” means: (a) with respect to the Snowy River: the volume of 9 GL per Water Year from Jindabyne Dam plus the non-regulated flow past the relevant \Works on the Mowamba River and Cobbon Creek prior to the Corporatisation Date; (b) in the case of the Upper Murrumbidgee River: the long term average volume of 2 GL per Water Year from Tantangara Dam; and (c) with respect to Works on the Snowy Montane Rivers: the non- regulated flow of the relevant river past the particular Work prior to any modification to that Work required under Schedule Three; (4) Snowy River Increased Flows to be made by the Licensee from Jindabyne Dam and Snowy Montane Rivers Increased Flows to be made by the Licensee from Tantangara Dam include increased evaporation in those storages compared to the volume of evaporation under water operations that achieve a uniform daily distribution of releases from those storages; (5) Snowy Montane Rivers Increased Flows are to be in addition to the Base Passing Flow of the relevant Snowy Montane River and include increased spill from relevant weir structures; and (6) Snowy Montane Rivers Increased Flows to be made by the Licensee from Tantangara Dam include spill from Tantangara Dam up to a maximum volume being the volume to be targeted for release from Tantangara Dam in the applicable Water Year.

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SNOWY WATER LICENCE 2. COMMENCEMENT AND EXPIRATION 2.1 Commencement Date This Licence will take effect on and from the Corporatisation Date. 2.2 Expiration This Licence will expire on the seventy-fifth anniversary of the Corporatisation Date. 3. PURPOSE OF THIS LICENCE 3.1 Purpose The purpose of this Licence is: (1) conferral of rights: to confer on the Licensee rights including those set out in clause 7; and (2) imposition of obligations: to impose on the Licensee various obligations with respect to the exercise of those rights including in particular the Increased Flow Requirements and the Water Release Requirements. 10. REVIEWS OF LICENSEE’S OBLIGATIONS 10.1 Ministerial Corporation to Review Obligations The Ministerial Corporation must: (1) on the fifth anniversary of the Corporatisation Date: review the provisions of this Licence relating to Snowy River Increased Flows; 10.2 Variation Following Fifth Anniversary Review The provisions of this Licence relating to Snowy River Increased Flows may be varied by the Ministerial Corporation following a review of those provisions under subclause 10.1(1). 10.5 Variation of Increased Flow Requirements The Ministerial Corporation may not vary the Increased Flow Requirements so as to cause this Licence to not give effect to the Snowy Water Inquiry Outcomes Implementation Deed. 11.2 Ministerial Corporation to Notify If, during a Water Year, the Ministerial Corporation forms the view that the Licensee will not release the relevant Required Annual Releases, the Ministerial Corporation must as soon as reasonably practicable after it forms that view give written notice to the Licensee and provide copies of the notice to each Security Interest Holder, indicating that at the end of the Water Year the Ministerial Corporation may take action under section 34 of the Act. 11.3 Ministerial Corporation May Revoke The Ministerial Corporation may revoke this Licence if, in respect of two Water Years (which need not be consecutive Water Years) occurring within any period of 10 Water Years: (1) the Licensee is convicted under section 34(2) of the Act for failing to release the relevant Required Annual Release; and (2) the penalty imposed upon the Licensee for that conviction is the maximum penalty for an offence under section 34(2) of the Act.

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RECOMMENDATIONS

The Ministerial Corporation(MC) is bound to observe and respect, the essential spirit and purpose of the Snowy Water Licence (SWL),being at

all times, cognisant of and consistent with, the Snowy Water Inquiry Outcomes Implementation Deed (SWOID)

the governing legal document. In this, there are several areas that require closer scrutiny: governance 2) it is the intention of the Ministerial Corporation that this Licence gives full effect to the provisions of the Snowy Water Inquiry Outcomes Implementation Deed. 4.2 Administration and Variation of this Licence Despite any other provision in this Licence, the Ministerial Corporation must: (1) in administering this Licence, act in a manner that is consistent with and is necessary or desirable to give full effect to, the provisions of the Snowy Water Inquiry Outcomes Implementation Deed; and (2) not vary the terms of this Licence so as to cause this Licence to not give effect to the Snowy Water Inquiry Outcomes Implementation Deed. (2) in the case of: (a) the Snowy River Increased Flows to be made by the Licensee under Part Four of Schedule Three; and (3) Increased Flows are to be in addition to the relevant Base Passing Flow; compliance 12.2 Assessing Compliance by the Licensee Compliance by the Licensee with the obligations referred to in clause 12.1 of this Schedule Three is determined: (1) with respect to all of the obligations: once within 45 days of the conclusion of each Water Year; and (2) with respect to the obligations relating to daily and Monthly releases: having regard to all of the daily releases and Monthly releases respectively made by the Licensee from Jindabyne Dam over the whole of the relevant Water Year. 12.3 Maximum of One Breach per Water Year For the avoidance of doubt, clauses 12.1 and 12.2 of this Schedule Three are intended to operate together so that if the Licensee fails to comply with its obligations under those clauses, the Licensee breaches its obligations referred to in this Part Four of Schedule Three only once per Water Year.

We request full accounting of actual and alleged breaches of the SWL by the Licensee to be conducted by Independent Expert.

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12.4 Override Provision Despite any other provision in this Schedule Three, the Ministerial Corporation and the Licensee may agree to vary the volume of water targeted for release from Jindabyne Dam. data collection and water accounting 3. LICENSEE TO MAINTAIN WATER ACCOUNTS 3.1 Licensee to Maintain Water Accounts The Licensee must maintain the following continuous and audited water accounts: (1) Mowamba Borrowings. Subject to clause 10 of this Schedule Three, this account must specify: (a) as a debit, the volume of Snowy River Increased Flows each Water Year up to the third anniversary of the Corporatisation Date; and (b) as a credit, the volume of the Snowy River Annual Allocation allocated to the Mowamba Borrowings Account each Water Year; (2) Snowy River Increased Flows. This account must specify: (a) as a debit, the volume of Snowy River Increased Flows each Water Year after the third anniversary of the Corporatisation Date; and (b) as a credit, the volume of the Snowy River Annual Allocation allocated to the Snowy River Increased Flows each Water Year; (3) Snowy-Murray Development. This account must specify the volume of water that the Licensee transfers to Above Target Water in the Snowy-Murray Development under clause 1.2 of this Schedule Three; and (4) Snowy Montane Rivers Increased Flows. This account must specify the volume of Snowy Montane Rivers Increased Flows made in accordance with Parts Five and Six of this Schedule Three. water accounting procedures require independent scrutiny and evidence of accuracy and veracity Schedule 6: WATER ACCOUNTING PROCEDURES 1. FLOWS Reservoir inflows are computed by Water Balance using change in storage, diversion, power station releases, spill, riparian right releases, river outlet releases, and in the case of storages with large surface areas, evaporation losses or precipitation gains. The computed inflow is then compared against the measured Monthly yield from Stream Gauging Stations and the derived ratio is checked against long term inflow factors established by analysis of historical data. 2. DIVERSIONS Aqueducts - all aqueducts are fitted with V-notch meters, float wells, and water level recorders and the derived record is used in the computation of diversion volumes. Tunnels - diversions are measured by Venturi Flow Meters within the tunnel, or a Parshall Flume (flow measuring device) fitted with level recording equipment at the tunnel outfall. Other tunnel diversions are calculated from variation of regulating gate openings and pond levels with time. Pump Diversions are monitored by flow meters.

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3. RELEASES Power Station Releases - computed, using generation data and pond levels. This data is checked by computing a water utilisation factor and comparison against other operational data. Reservoir Releases - are computed by using pond level and gate setting information. Spill - volumes are derived by using pond level and gate setting information, use of spillway discharge curves or by pond balance. In the case of Khancoban Pondage, a stream gauging station located a short distance downstream of the dam, is also used to check on release volumes. Riparian Releases - are computed using valve/gate settings or by fitting calibrated orifice plates at the outlet works. Downstream discharge measurements are carried out to check the computed discharge. We call for an independent audit of all water accounting, data collection / collation

and, allocation of environmental and flushing flows as per the SWL. 14.7 Verification of Data by Independent Third Party The Ministerial Corporation may, at its own Cost and not more than once in each Water Year, engage an independent third party to verify: (1) the accuracy of all or any part of the data referred to in clause 14.4 of this Schedule Four; and/or (2) that the Licensee is complying with its obligations referred to in clause 14.6 of this Schedule Four. 14.8 Licensee and Ministerial Corporation to Co-operate with Third Party If the Ministerial Corporation or the Licensee engages an independent third party to verify the accuracy of data referred to in clauses 14.4 or 14.1 of this Schedule Four respectively, the other party must co-operate with that third party and provide that third party with all information and data reasonably requested by the third party. Whilst the Snowy Water Licence indeed, contains flexibility provisions, the overriding statement that: Despite any other provision in this Licence, the Ministerial Corporation must: (1) in administering this Licence, act in a manner that is consistent with and is necessary or desirable to give full effect to, the provisions of the Snowy Water Inquiry Outcomes Implementation Deed; and (2) not vary the terms of this Licence so as to cause this Licence to not give effect to the Snowy Water Inquiry Outcomes Implementation Deed.

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13. FLEXIBILITY PROVISIONS 13.1 Reduction in Required Annual Releases Despite any other provision in or under this Licence: (1) in any Water Year the Ministerial Corporation and the Licensee may agree on any terms to an agreed release that is less than the Required Annual Release for either or both of the Developments; and (2) where a reduction in the Required Annual Release is agreed between the Ministerial Corporation and the Licensee, the Licensee is required under this Licence to release from the relevant Development in that Water Year only the Agreed Annual Release. 13.2 Consideration of Proposals by Water Consultation and Liaison Committee The Ministerial Corporation must give the Water Consultation and Liaison Committee a reasonable opportunity to consider each proposal to reduce the Required Annual Release for a Development under clause 13.1 of this Schedule Four.

The Alpine Riverkeepers have grave concerns over issues of governance and compliance affecting the levels of the major lakes, Jindabyne, Eucumbene and

Tantangara impacting on local business enterprises, as well as the major diminishing of those levels preceding and post the attempt to sell Snowy Hydro.

In this, our major focus is on the apparent lapses in governance including, the alleged failure to establish the key Water Consultation and Liaison Committee, to which, both the Ministerial Advisory Corporation and the Licensee must refer and take advice. 8. ANNUAL WATER OPERATING PLANS 8.1 Licensee to Prepare and Comply with Annual Water Operating Plans The Licensee must: (1) prepare an Annual Water Operating Plan for each Water Year; and (2) do all things reasonably necessary to operate the Snowy Scheme in accordance with the provisions of each Annual Water Operating Plan as amended from time to time. submission of WOP to Water Consultation and Liaison Committee 8.4 Licensee to Submit Draft Annual Water Operating Plan to Water Consultation and Liaison Committee Not later than 27 February each year, the Licensee must submit to the Water Consultation and Liaison Committee its proposed draft Annual Water Operating Plan for the next Water Year.

We submit that these plans be made openly available in the public domain and freed from 'commercial in confidence' constraints.

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respect for advice of Water Consultation and Liaison Committee 8.5 No Dispute with respect to Advice from Water Consultation and Liaison Committee Despite any other provision in this Licence, neither the Ministerial Corporation nor the Licensee may refer a dispute with respect to advice given by the Water Consultation and Liaison Committee to an independent expert for determination under clause 13. 8.6 Licensee to Consider Advice of Water Consultation and Liaison Committee The Licensee must in good faith consider the advice (if any) given by the Water Consultation and Liaison Committee with respect to each proposed draft Annual Water Operating Plan. We request full publication of members of the WC&LC, meeting times, minutes,

matters referred to the Committee and decisions arising. timely referral to Water Consultation and Liaison Committee 9.2 Ministerial Corporation May Request Water Consultation and Liaison Committee to Consider Water Transfers If, during any Water Year, the Ministerial Corporation wishes to have the Licensee use and operate the Works to release: (1) Water Available to the Snowy-Murray Development to either or both of the Tumut River catchment and the Murrumbidgee River catchment; or (2) Water Available to the Snowy-Tumut Development to the River Murray catchment upstream of Hume Dam, the Ministerial Corporation may request the chairman of the Water Consultation and Liaison Committee to convene a meeting of that Committee for the purpose of considering a proposal to transfer and release that water. 9.3 Water Consultation and Liaison Committee To Be Given Opportunity to Consider Proposal The Ministerial Corporation must give the Water Consultation and Liaison Committee a reasonable opportunity to consider each proposal to transfer water between the Developments. There appear to be further matters for compliance including: the completion date for the Jindabyne Dam outlet impacting on Snowy River environment flows and requiring minimum levels for Lake Jindabyne that could not have been achieved during the 2006/2007 water year. The late completion date for the outlet - and ongoing failure to remove the coffer dam - constitutes an alleged breach of the Snowy Water Licence that must be addressed 6. LICENSEE TO CONSTRUCT OUTLET AT JINDABYNE DAM 6.1 Licensee To Construct Outlet At Jindabyne Dam By no later than the third anniversary of the Corporatisation Date, the Licensee must construct an outlet at Jindabyne Dam that is capable of releasing water from above the thermocline.

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6.2 Outlet Specifications The outlet constructed by the Licensee under clause 6.1 of this Schedule Three must be of sufficient size to enable a flow rate of at least 5 GL per day in addition to the capacity of the spillway gates. 6.3 Where Licensee Does Not Construct Outlet by Due Date If the Licensee has not constructed an outlet at Jindabyne Dam by the third anniversary of the Corporatisation Date, the Licensee must: (1) target to release from the Mowamba River and Cobbon Creek aqueducts into the Snowy River as far as possible the same volume of water that would otherwise have been allocated from Jindabyne Dam to Snowy River Increased Flows; and (2) store within the Snowy Scheme that volume of water that: (a) would otherwise have been allocated from Jindabyne Dam to the Snowy River Increased Flows until the date of commissioning of that outlet; and (b) was not released by the Licensee by way of substitute releases referred to in subclause 6.3(1) of this Schedule Three, and, from the date of commissioning of that outlet, must release that volume of stored water in addition to the then applicable Snowy River Increased Flows. spirit and letter of Snowy Environmental flows 16. APPORTIONMENT OF ENVIRONMENTAL ENTITLEMENTS BETWEEN INCREASED FLOWS 16.1 Total Volume of Environmental Entitlements to be Apportioned Each Water Year after the first anniversary of the Corporatisation Date, New South Wales must apportion to the Increased Flows the water that during the previous 12 Months was transferred to an Environmental Entitlement under clause 15.1 or 15.2 as follows: (1) on a 2:1 basis (both in terms of volume and Reliability) where: (a) 2 GL is apportioned to Snowy River Increased Flows; and (b) 1 GL is apportioned to River Murray Increased Flows; and (2) from the time that the River Murray Annual Allocation is 70 GL, the balance of the Environmental Entitlements is to be apportioned to the Snowy River Increased Flows. NSW Government bound to ensure reliability of Snowy entitlements 17.3 New South Wales to Assess Reliability of Snowy River Apportioned Entitlement For each Water Year occurring prior to the tenth anniversary of the Corporatisation Date, New South Wales must after consultation with DNRE assess the Reliability of the water contained in the Snowy River Apportioned Entitlement to determine: (1) the extent to which that water could be converted to achieve a Snowy River Apportioned Entitlement of 142 GL at a Reliability equivalent to the Reliability of the entitlement received by South Australia under the MDB Agreement; and (2) the portion of that water that will be converted at the start of the Water Year to a Reliability equivalent to the Reliability of the entitlement received by South Australia under the MDB Agreement. 17.4 Reliability of Water Contained in Snowy River Apportioned Entitlement After Tenth Anniversary of the Corporatisation Date On or about the tenth anniversary of the Corporatisation Date, the parties must unless they agree otherwise convert the water contained in the Snowy River Apportioned Entitlement to achieve a Snowy River Apportioned Entitlement of 142 GL at a Reliability equivalent to the Reliability of the entitlement received by South Australia under the MDB Agreement.

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targeted versus actual flows PART FOUR: SNOWY RIVER INCREASED FLOWS TARGETED FROM JINDABYNE DAM 11. LICENSEE TO TARGET SNOWY RIVER INCREASED FLOWS FROM JINDABYNE DAM 11.1 Licensee to Target Snowy River Increased Flows from Jindabyne Dam Subject to the other provisions of this Schedule Three, the Licensee must operate the Works so as to target releases from Jindabyne Dam in accordance with this Part Four of Schedule Three. 12. OBLIGATIONS OF THE LICENSEE WITH RESPECT TO RELEASES FROM JINDABYNE DAM 12.1 Obligations of the Licensee With Respect to Releases From Jindabyne Dam Each Water Year the Licensee must: (1) Annual Volumes: target releases of water from Jindabyne Dam that in total are within 10 percent of the volume of the Snowy River Annual Allocation allocated to the Snowy River Increased Flows for that Water Year; (2) Monthly Volumes: use reasonable endeavours to target releases of water from Jindabyne Dam in Monthly volumes that are within 20 percent of the Monthly volumes specified in the Annual Water Operating Plan for that Water Year; and (3) Daily Volumes: use reasonable endeavours to target releases of water from Jindabyne Dam in daily volumes that are within: (a) 20 percent of the daily volumes notified by the Ministerial Corporation under clauses 14 and 15 of this Schedule Three; or (b) 50 megalitres of the daily volumes notified by the Ministerial Corporation under clauses 14 and 15 of this Schedule Three, whichever is the greater volume. environmental flows Schedule 3: INCREASED FLOW REQUIREMENTS PART ONE: GENERAL REQUIREMENTS WITH RESPECT TO INCREASED FLOWS 1. TREATMENT OF ANNUAL ALLOCATIONS 1.1 Snowy-Tumut Development Annual Allocation to be Transferred Each Water Year the Licensee must adjust its accounts to transfer the volume of the Snowy-Tumut Development Annual Allocation to the Snowy-Murray Development. 1.2 River Murray Annual Allocation to be Transferred to Above Target Water Each Water Year the Licensee must adjust its accounts to transfer the volume of the River Murray Annual Allocation to Above Target Water in the Snowy-Murray Development. 1.3 Licensee to Adjust Accounts for Snowy River Annual Allocation Each Water Year the Licensee must adjust its accounts to distribute the Snowy River Annual Allocation between: (1) the Mowamba Borrowings Account; and (2) the Snowy River Increased Flows, as notified by the Ministerial Corporation. 2. LIMITS ON VOLUMES OF INCREASED FLOWS 2.1 Limits on Volumes of Increased Flows Nothing in this Licence obliges the Licensee in any Water Year: (1) to make Snowy River Increased Flows under Part Four of this Schedule Three in a volume that exceeds the volume of the Snowy River Annual Allocation allocated to the Snowy River Increased Flows; or (2) to make Snowy Montane Rivers Increased Flows in volumes that exceed the then applicable GWh per annum limit of forgone electricity generation (taking into account clause 22.2 of this Schedule Three).

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environmental flow objectives appear to be different to actual flows achieved - the latter must be subject to independent audit / scrutiny PART TWO: SNOWY RIVER INCREASED FLOWS GENERALLY 5. ENVIRONMENTAL OBJECTIVES FOR SNOWY RIVER INCREASED FLOWS 5.1 Environmental Objectives of the Governments The objectives of the Snowy River Increased Flows is to improve the habitat for a diverse range of plant and animal species through a combination of: (1) improving the temperature regime of river water; (2) achieving channel maintenance and flushing flows within rivers; (3) restoring connectivity within rivers for migratory species and for dispersion; (4) improving triggers for fish spawning; and (5) improving the aesthetics of currently degraded riverine environments. compliance recording / reporting required in relation to 5.2 Release Requirements Despite any other provision in this Licence: (1) a reference in this Licence to a requirement on the Licensee: (a) to release a particular volume from a Work; or (b) to achieve a particular flow of water, is a requirement on the Licensee to use its best endeavours to release that volume or achieve that flow: (c) by reference to average annual inflows into the relevant Works; (d) having regard to the operational characteristics of the relevant Work; and (e) where relevant, by reference to simulated available stream flow data for the applicable Work as modified; (2) in the case of: (a) the Snowy River Increased Flows to be made by the Licensee under Part Four of Schedule Three; and (b) the Snowy Montane Rivers Increased Flows to be made from Tantangara Dam under Part Six of Schedule Three, if in any Water Year the actual release made by the Licensee varies from the volume targeted for release, then: (c) in the case of a shortfall: the difference is to be added to the release otherwise required during the subsequent Water Year; and (d) in the case of an excess: the difference is to be subtracted from the release otherwise required during the subsequent Water Year except where the excess is the result of a flood or necessary operational releases from the spillway gates; (3) Increased Flows are to be in addition to the relevant Base Passing Flow; (4) Snowy River Increased Flows to be made by the Licensee from Jindabyne Dam and Snowy Montane Rivers Increased Flows to be made by the Licensee from Tantangara Dam include increased evaporation in those storages compared to the volume of evaporation under water operations that achieve a uniform daily distribution of releases from those storages; (5) Snowy Montane Rivers Increased Flows are to be in addition to the Base Passing Flow of the relevant Snowy Montane River and include increased spill from relevant weir structures; and (6) Snowy Montane Rivers Increased Flows to be made by the Licensee from Tantangara Dam include spill from Tantangara Dam up to a maximum volume being the volume to be targeted for release from Tantangara Dam in the applicable Water Year.

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monthly environmental flows 13. MONTHLY RELEASE VOLUMES TO BE TARGETED FROM JINDABYNE DAM 13.1 Ministerial Corporation to Provide Licensee With Monthly Release Volumes The Ministerial Corporation may, by notice in writing to the Licensee given not later than 13 February each year, require the Licensee to target for release from Jindabyne Dam during each Month of the following Water Year the Monthly volumes specified in the notice. 13.2 Limits on Total Monthly Volumes The total of the Monthly volumes specified in any notice referred to in clause 13.1 of this Schedule Three must not exceed the Snowy River Annual Allocation allocated to the Snowy River Increased Flows for that Water Year. 13.3 Default Monthly Release Volumes If by 13 February in any year the Ministerial Corporation has not submitted to the Licensee the volumes of water that the Licensee must target for release from Jindabyne Dam for each Month of the next Water Year, the Licensee must target for release from Jindabyne Dam for each Month of that next Water Year the percentage of the Snowy River Annual Allocation allocated to the Snowy River Increased Flows for that Water Year as follows: 14.4 Default Daily Release Volumes If with respect to any Month the Ministerial Corporation does not give to the Licensee a notice referred to in clause 14.1 of this Schedule Three within the time specified in that clause, the Licensee must in the relevant Month target for release from Jindabyne Dam the applicable Monthly release volume in equal daily volumes. flushing flows - evidence of compliance required 15. ACHIEVING FLUSHING FLOWS 15.3 Flushing Flows (1) For the purposes of this clause 15, “Flushing Flow” means a daily release targeted by the Licensee from Jindabyne Dam that exceeds 5 GL. 15.5 Requirements With Respect to Strategy for Flushing Flows Any strategy for achieving Flushing Flows set out in a notice referred to in clause 15.4 of this Schedule Three must specify: (1) the conditions under which a Flushing Flow is to be released during the relevant Water Year; (2) the volume of the Flushing Flow; (3) the mechanism by which the Licensee must accumulate sufficient water in Lake Jindabyne to enable it to make the Flushing Flow; and (4) a contingency release plan specifying the carry over objectives and mechanisms for the management by the Licensee of the water accumulated in Lake Jindabyne if the conditions under which a Flushing Flow is to be released during the relevant Water Year are not met. co-operation to achieve monthly flows - provision of evidence necessary 15.6 Ministerial Corporation and Licensee to Co-operate to Achieve Flushing Flows (1) The Ministerial Corporation and the Licensee must co-operate to achieve Flushing Flows in accordance with each strategy referred to in clause 15.4 of this Schedule Three. (2) That co-operation must include the Licensee notifying the Ministerial Corporation of storage volumes and the rate of change of storage with a frequency that permits effective planning for the release of the Flushing Flows.

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evidence required for dry inflow sequences vital to ensure health of Snowy River / Snowy Montane Rivers during drought times 8. DRY INFLOW SEQUENCE VOLUME 8.1 Dry Inflow Sequence Volume During each Water Year the Licensee must, at the commencement of each Month, calculate the volume of water resulting from the following formula for each Development: DISV = max[0,Sj=in-1( Ej + R - Ij) + ∑k=n x(EEk + R - Elk) – TSi - IB]; The alleged failure of the MC / Licensee to comply with legislation flow regimes for the Snowy River - including under the definitions of the SWL the montane rivers - is a matter for independent assessment provided for within the SWL. 7. DATE OF COMMENCEMENT OF SNOWY RIVER INCREASED FLOWS 7.1 Ministerial Corporation to Notify the Licensee The Ministerial Corporation must by notice in writing to the Licensee require the Licensee to commence Snowy River Increased Flows. 7.2 Date of Commencement The Licensee must operate the Works as follows: (1) from the date that is seven days after the date of giving of the notice by the Ministerial Corporation under clause 7.1 of this Schedule Three until the third anniversary of the Corporatisation Date: so as to make Snowy River Increased Flows under Part Three of this Schedule Three; and (2) after the later of the third anniversary of the Corporatisation Date and the date of commissioning of the outlet referred to in clause 6 of this Schedule Three: so as to make Snowy River Increased Flows under Part Four of this Schedule Three. role of the Mowamba important and scrutiny of the re-commissioning of Mowamba Aqueduct critical, when, public understanding was clearly that the Aqueduct would not be re-commissioned. PART THREE: SNOWY RIVER INCREASED FLOWS FROM MOWAMBA RIVER AND COBBON CREEK 8. SNOWY RIVER INCREASED FLOWS FROM MOWAMBA RIVER AND COBBON CREEK 8.1 Licensee to Target Snowy River Increased Flows Subject to the other provisions of this Schedule Three, the Licensee must operate the Works so as to allow a volume of water to pass the Mowamba River and Cobbon Creek aqueducts into the Snowy River in addition to the Base Passing Flow. 9. VOLUME OF INCREASED FLOWS 9.1 Volume Each Water Year until the third anniversary of the Corporatisation Date, the Licensee must make Snowy River Increased Flows under this Part Three of Schedule Three up to a maximu volume of 38 GL.

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objectives of increased flows as per definition of 'increased' flows to include Snowy Montane Rivers PART FIVE: SNOWY MONTANE RIVERS INCREASED FLOWS GENERALLY 17. SNOWY MONTANE RIVERS INCREASED FLOWS 17.1 Licensee to Target Snowy Montane Rivers Increased Flows Subject to the other provisions of this Schedule Three, the Licensee must operate the Works so as to make Snowy Montane Rivers Increased Flows along the rivers and in the volumes referred to in Schedule Three in addition to the Base Passing Flow. licensee to comply, not collaborate with the MC and to provide evidence of referrals to WC&LC 23.5 Ministerial Corporation to Notify the Licensee The Ministerial Corporation must by notice in writing to the Licensee require the Licensee to make the Snowy Montane Rivers Increased Releases from the amended combination of rivers notified by the Ministerial Corporation. 23.6 When Notice takes Effect A notice given by the Ministerial Corporation under clause 23.5 of this Schedule Three is effective: (1) if given before 1 November in a Water Year: from the commencement of the next Water Year unless a later date is agreed by the Water Consultation and Liaison Committee; or (2) otherwise: from the commencement of the Water Year occurring next after the Water Year referred to in subclause 23.6(1) of this Schedule Three. obligation of Licensee to adhere to SWL and complete works to enable flows requiring also, monitoring and data collection / analysis of Snowy Montane Rivers 23.7 Licensee to Make Snowy Montane Rivers Increased Flows in Accordance with Notified Combination of Works From the date that the notice given by the Ministerial Corporation under clause 23.5 of this Schedule Three is effective, the Licensee must make the Snowy Montane Rivers Increased Flows along the amended combination of rivers in accordance with the amended combination of rivers set out in the notice. From the SWOID - importance of Snowy Montane flows and regular reporting to the WC&LC - requirement for independent scrutiny of release volumes data as a part of compliance with the SWL 7. LICENSEE TO MONITOR AND RECORD FLOWS 7.1 Licensee to Monitor and Keep a Record of Snowy Montane Rivers Increased Flows (1) New South Wales must, through the Snowy Water Licence, procure that the Licensee monitors and keeps a record of the volumes of water released by it and referred to in this Annexure Two. (2) Those volumes are to be reported on an annual basis with the exceedance probability of inflows applicable to the relevant Snowy Montane River during that Water Year.

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8.7 Licensee to Make Snowy Montane Rivers Increased Flows in Accordance with Notified Combination of Works New South Wales must procure that the Snowy Water Licence requires that from the date that the notice given by New South Wales referred to in clause 8.5 of this Annexure Two is effective, the Licensee must make the Snowy Montane Rivers Increased Releases along the amended combination of rivers in accordance with the amended combination of rivers set out in the notice. NSW Government may be in breach of SWL through failure to establish Snowy Scientific Committee and independent data collection, additionally, alleged failure to establish impartial WC&LC including, regular reporting and analysis of data - request for independent expert scrutiny of same 9. MEASURING ENVIRONMENTAL BENEFITS OF SNOWY MONTANE RIVERS INCREASED FLOWS 9.1 State Agencies to Monitor Environmental Benefits New South Wales must measure the environmental benefits of the Snowy Montane Rivers Increased Flows on an ongoing basis. 9.2 New South Wales to Provide Data to the Parties and the Water Consultation and Liaison Committee New South Wales must as soon as practicable give to the parties and the Water Consultation and Liaison Committee a copy of the data generated by them from time to time.

Indeed, the alleged failure of the MC to establish the WC&LC and Snowy Scientific Committee is the subject of ongoing scrutiny without adequate

resolution, drawing our attention once again to the urgent need for independent legal scrutiny and analysis, ostensibly in the appropriate NSW and Federal Courts

as specified in the SWL. In November 2006 prior to the then Prime Minister's 'National Water Plan' concerned advocates for the health of the Snowy River came together and formed the Snowy Strategic Workshop - delivering a key recommendation that the SWL first Five Year Review be delayed until such times that the Snowy Scientific Committee was formed and had reasonable opportunity to collect and / or collate data in order to make independent assessments on the health of the Snowy River and response to the legislated environmental flow regimes (see attached document).

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The MC has not responded either to the Snowy Strategic Workshop or formulated the SCC or delayed the first review of the Snowy Water Licence drawing into question, veracity and impartiality of the MC / NSW Government and their motives in terms of the future of the Snowy Scheme despite the outcomes of June 2006 with a clear determination not to privatise Snowy Hydro. The alleged failure of the MC / NSW Government to comply with the Snowy Water Licence - a legislated instrument of the SWOID - is a case for independent legal scrutiny, analysis and judicial inquiry.

Alpine Riverkeepers therefore, duly invokes Section 12.2 of the SWL to the effect that:

12.2 Choice of Expert (1) An expert recommendation under clause 10.3 or 10.4 must be made by an independent expert in the relevant field: (a) agreed between and appointed jointly by the Ministerial Corporation and the Licensee; or (b) in the absence of agreement within seven days of the Licensee giving notice to the Ministerial Corporation that it does not agree to a variation proposed by the Ministerial Corporation, appointed by the President of the Law Society of New South Wales. (2) The expert appointed to make a recommendation: (a) must have a demonstrated, technical understanding of the issues; and (b) must inform the Ministerial Corporation and the Licensee before being appointed the extent of the expert’s understanding of each of the Ministerial Corporation and the Licensee’s business or operations and, if that information indicates a possible bias, then that expert must not be appointed except with the written approval of the Ministerial Corporation and the Licensee. (3) The Ministerial Corporation and the Licensee must enter into an agreement with the expert appointed under subclause 12.2(1) setting out the terms of the expert’s engagement and the fees payable to the expert. 20. GOVERNING LAW AND JURISDICTION 20.1 Governing Law and Jurisdiction (1) The law of and applicable in New South Wales governs this Licence. (2) The Ministerial Corporation and the Licensee submit to the non-exclusive jurisdiction of the courts of New South Wales and the Federal Court of Australia.

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It is our submission, that the relevant 'expert' be appointed to conduct a

comprehensive inquiry into the conduct of the MC and Licensee including:

water monitoring data collection and analysis preparation of Annual Water Operating Plans completion of the Jindabyne Dam Wall outlet compliance with releases from Jindabyne Dam environmental releases into the Snowy River flushing flows dry-flow sequences maintenance of minimum levels of Jindabyne Dam for the purpose of

flushing flows that comply with tenet of the SWOID compliance of the SWL in the latter respect with the SWOID reporting of and enumerating of actual and alleged breaches of the

SWL by the Licensee and / or failure of governance of same by the MC.

By definition, this construes a Judicial Inquiry into the administration and effecting of the SWL by the MC and compliance by the Licensee.

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To this end, the MC is bound by the following provisions of the SWL: 4. ADMINISTRATION AND VARIATION OF THIS LICENCE 4.1 Acknowledgement The Ministerial Corporation acknowledges that: (1) under section 23(3) of the Act, this Licence is to give effect to any agreement between New South Wales and Victoria following the report of the water inquiry under Part 4 of the Act; and (2) it is the intention of the Ministerial Corporation that this Licence gives full effect to the provisions of the Snowy Water Inquiry Outcomes Implementation Deed. 4.2 Administration and Variation of this Licence Despite any other provision in this Licence, the Ministerial Corporation must: (1) in administering this Licence, act in a manner that is consistent with and is necessary or desirable to give full effect to, the provisions of the Snowy Water Inquiry Outcomes Implementation Deed; and (2) not vary the terms of this Licence so as to cause this Licence to not give effect to the Snowy Water Inquiry Outcomes Implementation Deed. Further, the MC must: 8.4 Licensee to Submit Draft Annual Water Operating Plan to Water Consultation and Liaison Committee Not later than 27 February each year, the Licensee must submit to the Water Consultation and Liaison Committee its proposed draft Annual Water Operating Plan for the next Water Year. 8.5 No Dispute with respect to Advice from Water Consultation and Liaison Committee Despite any other provision in this Licence, neither the Ministerial Corporation nor the Licensee may refer a dispute with respect to advice given by the Water Consultation and Liaison Committee to an independent expert for determination under clause 13. 8.6 Licensee to Consider Advice of Water Consultation and Liaison Committee The Licensee must in good faith consider the advice (if any) given by the Water Consultation and Liaison Committee with respect to each proposed draft Annual Water Operating Plan. In this respect, we have reason to believe, that the MC / NSW Government has not properly constructed the legislated WCLC and request copies of all meetings and minutes including referral of breaches of the licence by the Licensee.

We request a written, absolute guarantee of confidentiality by this Review process that these matters are not referred to the Licensee / MC.

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We have reason to believe, that the Licensee has / is conducting consultations with irrigation groups in terms of water supply, ostensibly arguing that once the water has left the Snowy Scheme it is no longer part of the Scheme. We feel that this is inappropriate behaviour compromising environmental flow regimes for the Snowy River and also, impacting on the levels of Jindabyne Dam. 7.5 Licensee Not to Act as Supplier of Water For the avoidance of doubt, clause 7.4 does not authorise the Licensee to act as a supplier of water released from the Works to others or to give rights to others to use that water (except as authorised by the Ministerial Corporation). Our submission is for independent scrutiny and analysis of compliance / breaches

by the Licensee and MC with the SWL and indeed SWOID and preferably, referral to appropriate NSW and Federal Courts including suitability of both parties to

variously hold / conduct the Snowy Water Licence.

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Further Definitions: (28) “Increased Flow Requirements” means the obligations of the Licensee under Schedule Three, as amended from time to time under clause 10.4; (29) “Increased Flows” means the Snowy Montane Rivers Increased Flows, the Snowy Montane Rivers External Increased Flows and the Snowy River Increased Flows; (31) “Licensee” means Snowy Hydro Limited ACN 090 574 431; (32) “Licensee’s Obligations” means the obligations imposed upon the Licensee under clauses 6, 8, and 9 together with the Increased Flow Requirements and the Water Release Requirements; (34) “Ministerial Corporation” means the Water Administration Ministerial Corporation constituted under section 371 of the Water Management Act 2000 (NSW); (36) “Mowamba Borrowings Account” means the water account to be maintained by the Licensee under subclause 3.1(1) of Schedule Three; (50) “Snowy Compensation Deed” means the agreement made under section 30 of the Act between New South Wales and the Licensee dated on or about the Corporatisation Date; (58) “Snowy River” means the Snowy River downstream of Jindabyne Dam; (59) “Snowy River Annual Allocation” means the annual allocation from the Snowy River Apportioned Entitlement for any Water Year, notified by the Ministerial Corporation to the Licensee under subclause 4.1(4) of Schedule Three; (60) “Snowy River Apportioned Entitlement” means the volume of water apportioned to the Snowy River Increased Flows as notified by the Ministerial Corporation to the Licensee under subclause 4.1(6) of Schedule Three; (61) “Snowy River Increased Flows” means releases of water in addition to the Base Passing Flow that: (a) the Licensee releases from the Jindabyne Dam into the Snowy River; and/ or (b) the Licensee releases from either or both of the Mowamba River and Cobbon Creek aqueducts into the Snowy River, (67) “Snowy Water Inquiry Outcomes Implementation Deed” means the Snowy Water Inquiry Outcomes Implementation Deed between the Commonwealth, New South Wales and Victoria dated on or about the Corporatisation Date; (74) “Water Consultation and Liaison Committee” means the Water Consultation and Liaison Committee established under the Snowy Water Inquiry Outcomes Implementation Deed; (75) “Water Release Requirements” means the water release requirements set out in Schedule Four as amended from time to time under clause 10.4; (76) “Water Year” means the period of 12 Months commencing on 1 May in each year.

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a snapshot from The Snowy Strategic Workshop

Acknowledgements

To all those who have raised their voice to advocate for the health of the rivers affected by the Snowy Hydro Scheme – thank you. To the thousands of Australians who fought to keep the Snowy Hydro Scheme in public hands – thank you. The Reichstein Foundation has kindly contributed to this project, Restoring the 12 Rivers of the Snowy Scheme, and is gratefully acknowledged. As well, sincere thanks are extended to Environment Victoria, which has acted as the project manager for Restoring the 12 Rivers of the Snowy Scheme, and to the members of the Snowy Roundtable who steered this project through to its conclusion. This publication was printed in May 2007 with the support of the office of Craig Ingram MP, Member for Gippsland East (Victorian Parliament) and the Snowy River Alliance. The opinions expressed by various authors remain their own, as does the intellectual copyright. For further copies, please visit www.snowyriveralliance.com.au or www.craigingram.com

“Of all the ways planned to get environmental flows in Australia that I know of, the Snowy is the clearest and the simplest, namely to accumulate water and release it from one dam. And yet here we have this mess involving obfuscation, broken promises, buck passing, legislation not adhered to and misinformation. “The fact is that the Snowy environmental flow case is the most well known to the public and given its iconic status, is the one environmental flow that – if it was to be delivered – would be a big winner to all Governments concerned and could convince the community that our leaders might just have the competence to resolve our water crisis.” - Professor Sam Lake, Monash University One of the authors of the ‘Expert Panel Environmental Flow Assessment of the Snowy River below Jindabyne Dam’, published in February 1996 by the Snowy-Genoa Catchment Management Authority.

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A Brief History The subject of the Snowy has been in the public imagination since Banjo Patterson wrote his famous poem, and way before then in the legends of the Indigenous nations that have lived within the River’s catchment for many thousands of years. It once again captured people’s imaginations when the proposal was floated to ‘green the desert’, realigning rivers to create an irrigation system that could become the food bowl of Australia. The Snowy Hydro Scheme was formally approved at a meeting on 13 July 1949 between the State Governments of Victoria and NSW along with the Federal Government. Work officially began on 17 October 1949. “By the time construction ended in 1972, the Scheme had diverted twelve major rivers and 71 creeks. It had sixteen dams, eighteen aqueducts, nineteen trans-mountain tunnels, seven power stations and two pumping stations. “The Snowy River accounts for just under half of the average 2,410 gigalitres that the Scheme traps every year. “The other half comes from montane rivers that would eventually flow inland anyway, including the Murrumbidgee and tributaries to the Murray River. “The Scheme’s total storage capacity is 7,000 gigalitres. Irrigators are entitled to 2,100 gigalitres a year; another 1,000 gigalitres is held in reserve and can be used to generate power at the discretion of the Snowy Hydro Authority. The reserve can also be used to top up irrigators in severe droughts. “The Scheme’s thirty-one turbines have a total generating capacity of 3,756 megawatts, but only holds enough water to run the turbines at about a quarter of their capacity.

“The turbines feed an average 4,500 gigawatt/hours of energy into the national electricity grid every year. This is 3-4 per cent of the total electricity consumed in eastern Australia.” (Extract from Snowy River Story by Claire Miller, page 7

– 8) Politicians say the Snowy Hydro Scheme is a power generating facility, but seem unwilling to acknowledge the Scheme’s responsibility for the releases of not only irrigation water but the environmental flows of 71 creeks and 12 rivers. The Rivers are:

1. The Eucumbene; 2. The Geehi; 3. The Gungarhlin; 4. The Guthega; 5. The (Moonbah) Mowamba; 6. The Murray; 7. The Murrumbidgee; 8. The Snowy; 9. The Thredbo/Crackenback; 10. The Tooma; 11. The Tumut; and 12. The Yarrangobilly River.

These rivers flow across the borders of Victoria, NSW, South Australia and the Australian Capital Territory, with significant implications. In the mid 1990s, the major ecological, economic and recreation damage caused by the removal of water from the rivers was becoming increasingly evident. In February 1996, a ground-breaking scientific report benchmarked the 28% figure acknowledged as the minimum amount needed for the Snowy River’s environmental flow. This report, published by the Snowy-Genoa Catchment Management Authority, is the Expert Panel Environmental Flow Assessment of the Snowy River below Jindabyne Dam.

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It was one of the first pieces of scientific research in the world that quantified how much flow a river needs for itself, if it is to maintain ecological health. This is the water described as an ‘environmental flow’. There has been some concern that discussion about the Snowy River’s 1% headwater flow is misleading because the Snowy has a 58% flow rate at Orbost. However, you can’t remove 99% of a river’s headwaters and then have 58% magically reappear downstream. The fact is that only 1% of the Snowy River’s headwaters flowed into the Snowy’s natural river catchment below Jindabyne, once the Dam was completed forty years ago. The rivers that feed into the Snowy downstream of MacKillops Bridge in Victoria increase the amount of water in the Lower Snowy River closer to Orbost. . This downstream input from secondary rivers is the 58% of water that some people refer to. “The Snowy Scheme takes in the top 14 per cent of the Snowy River’s vast 15,540 square kilometre catchment. The snowmelt from this area contributes about half the average annual flow past Orbost, more than 350 kilometres away.”

(Extract from Snowy River Story by Claire Miller, p.2) Prior to the Snowy Hydro Scheme, the flow regime in the Snowy’s catchment managed to keep the ocean at bay. Since the wall went up at the Jindabyne Dam, there is no longer a headwater pulse to stop the mouth of the Snowy River from closing at Marlo, on Victoria’s eastern coastline. When the mouth is closed, a salt wedge moves from the sea upstream into the freshwater system (again, due to the lack of flow), spilling onto fertile farmland to cause catastrophic salinity issues.

This results in a seriously damaged agricultural industry, multiple fish kills, and so many other problems. With the Snowy remembered internationally as one of the world’s wildest rivers, millions of dollars of eco-tourism opportunities are lost. Figures submitted to the 1998 Snowy Water Inquiry conservatively estimated that an environmental flow in the Snowy River would annually generate $31 million through recreational fishing and $5 million through rafting. In 1999, the newly elected Independent MP for Gippsland East, Craig Ingram won office on the back of a community campaign to save the Snowy River, and found himself holding the balance of power. The shocking defeat of the Victorian Premier Jeff Kennett came down to this: who was willing to save the Snowy? Steve Bracks convinced Craig Ingram that the Labor Party was committed to restoring a 28% environmental flow whilst Kennett did not. Craig therefore gave his support to Labor, and the State Government changed sides. In subsequent dialogue between the Bracks and NSW’s Carr Governments, a historic piece of legislation was drafted. It was cross-Government, seemingly protected by a complex set of benchmarks and an independent scientific committee along with a five-year review of the Snowy Water Licence.

(***For futher clarification of the intra-Government Agreements, please refer to the section in this report Environmental Flows: The Story So Far.) In June 2002, the three shareholder Governments of the Scheme (i.e. Victoria with 29%, NSW with 58%, and the Commonwealth with 13%) committed $375 million to restoring a 21% annual environmental flow to the Snowy River below Jindabyne Dam by 2012. ***The final 7% that brings the Snowy’s environmental flow up to the 28% has to date not been negotiated.

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Images of Premiers Bracks and Carr jumping over the River made national headlines when the Mowamba Aqueduct was decommissioned in August 2002. (Note: The Mowamba River naturally enters the Snowy two kilometres below the Jindabyne Dam wall, but is diverted into Lake Jindabyne via a weir and pipe – known as the aqueduct - further up the catchment.) When the Mowamba was decommissioned, its freed-up flow profoundly improved, the health of the Snowy. Hope was on the horizon. But this false dawn faded when the Mowamba was recommissioned in January 2006 and the flow regime was stopped. Furthermore, the water that had been fed from the Mowamba into the Snowy had to be paid back. Simultaneously, Snowy Hydro Ltd was being packaged for privatisation and there was still no Snowy Scientific Committee, which was to have been established in 2002 – as legislated in the Snowy Hydro Corporatisation Act (No.99 section 57):

‘…to advise on the regime of water releases for environmental reasons under the Snowy Water Licence’;

and

…to advise on the adequacy of these releases and the programs for the management and restoration of the catchments (and the Snowy River and other rivers and streams) receiving water from these releases, including the arrangements for consultations, monitoring and on-going research about these programs.’

Corporatisation was proving to be the bug bear many had feared when the Bill was first signed in 2000 and some said that Corporatisation was simply privatisation by stealth.

They believed that the devil was in the detail, and they were right. Contrary to the terms of the Snowy Hydro Water Licence, there appears to be less than 38 Gigalitres allocated to the Snowy Environmental Releases in the Water Year 2006/07. This is below the target for the first year after Corporatisation! In the first half of 2007, it seems that only 3% of the extra water promised to the Snowy has been released below Jindabyne Dam. In the five years since Corporatisation, have our Governments only obtained water savings to offset an increased flow of 3% (i.e. from 1% to 4%)? How much has that cost the public purse? And what will be done within the next two years to get the Snowy’s environmental flow to a real 15% by 2009? Three years later, in 2012, a minimum of 21% environmental flow is to be returned to the Snowy. If these figures are to be contested, how can they be? There is no Snowy Scientific Committee to provide the independent analysis. Who is making sure that the water savings are being converted into environmental flows? How will the Commonwealth’s proposed centralised control of the Murray Darling Basin affect the intra-Government management of the Snowy Hydro Scheme? If the current Snowy saga is an example of Governments working in partnership, heaven help the Murray Darling. And let’s not kid ourselves: there has been no amendment to legislation that would stop future Governments from once more trying to sell Snowy Hydro Ltd. All the triggers remain poised.

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Executive Summary Workshop Background In December 2005, the NSW Government announced its intention to sell its 58% share of the Snowy Hydro Scheme. By the end of March when the Federal Government approved the proposal, all three shareholders had made the call: Sell. The community said: No way. And once again, despite the repeated warnings that people were taking on Goliath, a community campaign was launched and the long-suffering Snowy was spared. The sale of the Snowy Hydro Scheme was cancelled on 2 June 2006. However, the debacle was just that – a debacle. Nothing seemed to improve in regard to the management of the vast water resource within the Scheme, and politicians moved on. Those who had connected up in opposition to the sale and linked with those who had worked to save the Snowy in previous years definitely did not trust the status quo. Many people who had been collectively opposing the sale of the Snowy Hydro Scheme on anti-privatisation grounds worked alongside others also interested in the welfare of the rivers affected by the Scheme. It was suspected that the fight to keep Snowy Hydro in public hands was not over, just suspended. Hence this workshop… Workshop Overview In brief, this report captures the issues discussed in a range of workshop sessions held over two days in November 2006 at the small town of Dalgety in NSW where the Snowy is

currently a shadow of its former self. The once booming economy of that township has dwindled just like the River beside it, but the community remains a vibrant force. The Community Coalition describes the various stakeholders who have a shared non-commercial interest in the Snowy Scheme. This diverse collective crosses the Great Dividing Range and includes the major farming and irrigation communities of the Murrumbidge and Murray-Darling catchments as well as the Snowy, Eucumbene and eastern watershed regions. The ongoing relationship within and between these communities is the critical link between various organisations and government/s. The Expert Panel identified the broad range of knowledge and experience available in the community. Discussions included the view that Snowy Hydro Ltd (SHL) does not need to recapitalise to remain relevant in the National Electricity Market and that SHL is able to trade from the balance sheet. Further identified was the need to return to a framework that recognises water management for irrigation and the environment as the main role of Snowy Hydro. An overview of the Snowy River Recovery Program, which employs skilled scientists and technicians as well as broad engagement with community and landholders, is occurring along the course of the Snowy River. Also considered was the concept of the ‘intangible’ values of the Snowy River; how a healthy river gives rise to healthy communities, contributing to the self-esteem and social welfare of these communities.

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The ongoing role of the community was acknowledged as the key force in bringing about change to government policy. There is clearly a need for more rigorous community engagement through informal and formal pathways, one of which is the proposed Snowy Community Advisory Committee. Environmental Flows and Water Savings are still far from the mark. Included within this report is an outline of the alarming contradictions in the accounting methodology regarding environmental flows. The measurements produced by the NSW Department of Natural Resources and Snowy Hydro Ltd appear to be strongly at variance with an independent analysis of flow data. There seems to be a shortfall in the accounting methodology, and an alarming current percentage of annual natural flow (ANF) for the Snowy River of less than 4%. Exacerbating this shortfall is the slowness of water savings that underpin the return of environmental flows for not only the Snowy River but the Murray and Murrumbidgee as well. (And let’s not forget those other nine rivers and 71 creeks!) Additionally, construction on the Jindabyne Dam outlet is well behind schedule. In the interim, Snowy Hydro exercised in January of 2006 its dubious prerogative to recommission the Mowamba Aqueduct, thereby stopping a natural headwater flow to the Snowy River in its tracks. The Snowy Scientific Committee (SSC) is essential, and could be the linchpin that resolves the current discrepancies in the environmental flow accounting system. This Committee was legislated for, and was legally supposed to be formed in 2002. The SSC is an imperative tool that would ensure that the processes are working according to the intent of the Corporation Act. Its findings should have been captured in annual reports since the 2002-03 Water Year, and be

used to inform the annual water releases. The Snowy Scientific Committee must (once established) communicate to the community the reasons for environmental flows. Why do rivers need these flows? What are the consequences if rivers don’t have them? In the latter half of 2006, the NSW Government finally agreed - under intense pressure from the Parliamentary Senate Committee investigating the public benefits of selling Snowy Hydro Ltd, along with genuine effort by the Victorian Government and community – that no more time would be wasted in forming the SCC. In May 2007 (as this report goes to print), and despite the three shareholder Governments having put forward their nominations, there is still no indication of when the SCC will actually meet. Water savings and projects instigated by Water for Rivers (the Government initiative charged with overseeing water savings) are key to returning environmental flows to the Snowy, Murray and Murrumbidgee Rivers. The Water for Rivers Statutory Authority is able to report on the success of the Barren Box Wetlands project in the Murray system. In order to accrue agreed environmental flows for waterways such as the Snowy River and Murray River, there needs to be significant progress in water savings in the irrigation systems west of the Great Dividing Range. Community engagement is acknowledged as the most effective method to bring stakeholders together - including governments - to discuss the future of Snowy Hydro Ltd, the management of the catchments and water storages as well as clarifying how we can meet the water savings timetables necessary to return

environmental flows to the Snowy, Murray, Murrumbidgee and additional montane rivers. Community engagement is recognised as the key to developing community-government relations that are vital to the improved management of the Snowy Hydro Scheme’s impact on the waterways it holds within its boundaries. Governance, accountability and legal issues are emerging areas for shared responsibility, where government and Snowy Hydro relations with stakeholders, transparency and accountability are seen as central to better management. Importantly, the five-year review of the Snowy Water Licence will be critical for justice and equity in terms of the management and sharing of the Snowy Scheme water. Governments must explore what within the Act is or isn’t in the national interest, and remove commercial-in-confidence limitations currently constraining public access to information regarding the corporate behaviour of the Snowy Hydro authority. There are grave concerns that the review of the Snowy Water Licence will go ahead without any legitimacy. Lacking the information that the Snowy Scientific Committee should have gathered, and adequate time to consider the concerns surrounding the Water Licence, Governments must postpone the Review. Considering that 10.1 of the Snowy Water Licence states that the Ministerial Corporation must review the provisions of the Licence in relation to the Snowy River’s increased flows, and that the NSW Snowy Corporatisation Act states that – by this Act – there is established the Snowy Scientific Committee (which is legislated to advise the Ministerial Corporation on increased flows),

would it not be illegal for the Ministerial Corporation to undertake the Snowy Water Licence Review without the advice of the Snowy Scientific Committee? Understanding of the need for continued public ownership of Snowy Hydro is a core issue as is the need for national discussion on water trading and water privatisation. Prime Minister Howard’s proposal to centralise control of the Murray Darling Basin at a Commonwealth level requires the States to cede many of their rights. The Premiers of the South Australian, Queensland and NSW State Government have already agreed to cede their State Constitutional Powers but Victoria holds out, worried about irrigator rights and the implications to environmental flows (such as that of the Snowy River). Many people are once again concerned that the devil is in the detail. Media Strategies, including the need to clarify the message, form a central platform to securing Snowy Hydro’s public ownership as well as returning environmental flows to the rivers affected by it.

Key projects on the drawing board include a Snowy Watershed Summit, partnership development between the communities on either side of the Great Dividing Range, the permanent decommissioning of the Mowamba Aqueduct, arts projects that creatively engage the communities of the Snowy Hydro catchments, and literature and legislation reviews.

Photo: Snowy River Courtesy: Michael Scott Lees Jindabyne

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Key Recommendations

1. No sale of Snowy Hydro. No privatisation of Snowy

water.

2. Governments must find agreed water savings first and

foremost.

3. Immediate establishment of the Snowy Scientific

Committee.

4. Delay the five-year Review of Snowy Water Licence

until the Snowy Scientific Committee has had adequate

assessment time and genuine community participation

has been achieved.

5. Establish a Snowy River Community Advisory

Committee that has the same authority as its Murray

equivalent and which can work in partnership with the

Murray interests.

6. Establish a natural headwater for the Snowy River

through the permanent decommissioning of Mowamba

and Cobbin Creek Aqueducts.

7. Ensure that the Snowy Environmental Benchmarking

Project is maintained, resourced and supported.

8. Develop a range of projects and partnerships informed by

the Snowy Strategic Weekend Workshop, and associated

outcomes of the ‘Restoring the 12 Rivers of the Snowy

Hydro Scheme Project’.

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