Document ID: chunk:federal_register_of_legislation:C2008A00139:schedule:1:p104
Version: federal_register_of_legislation:C2008A00139
Segment Type: schedule
Provision Reference: sch 1 (pt 104/128)
Character Range: 358287–361184

of Part

The object of this Part is, subject to sub‑clause 8(1) of the Schedule, to minimise the impact of transfers or conversion of entitlements on entitlements held by third parties, by endeavouring to ensure that:

(a) the proportion of the cap associated with each unit of a particular type of entitlement remains the same after an entitlement has been transferred or converted as it was before that transfer or conversion; and

(b) the annual diversion target for each State and designated river valley referred to in sub‑clause 12(1) of Schedule E is adjusted accordingly.

    7. Operation of Part

This Part applies to entitlements transferred or converted after the effective date.

    8. Calculating increases in cap required

Based on information set out in the Transfer Register, the Authority must make the following calculations for every year, in respect of each designated river valley, as a consequence of transfers between that designated river valley and every other designated river valley:

(a) The volume of each type of entitlement into which former entitlements were transferred or converted, as recorded under sub‑paragraphs 16(3)(b)(ii) and 16(3)(a)(ii) of this Schedule.

(b) The net increase in each type of entitlement, by subtracting the volume of that type of entitlement recorded under sub‑paragraphs 16(3)(a)(iii) and 16(3)(a)(i) of this Schedule from the volume of that type of entitlement calculated under paragraph 8(a).

(c) The net increase in the cap required for each type of entitlement , by multiplying the result of the calculation in paragraph 8(b) by the relevant cap factor set out in Table 3 of a protocol made under paragraph 6(1)(a) of the Schedule.

    9. Adjusting annual diversion targets

       (1) The Authority must, in each year, alter each long‑term diversion cap to reflect the results of transferring entitlements, pursuant to paragraph 10(2)(a) of Schedule E, by adjusting annual diversion targets.

       (2) The Authority must adjust each annual diversion target by following any protocol made by the Authority under paragraph 6(1)(a) of the Schedule, to implement the Stages set out below.

Stage 1

Adjust annual diversion targets, as far as possible by allocating to the cap required in a designated river valley of destination, so much of the volume of cap no longer required in the designated river valley of origin as is required in the designated river valley of destination. A separate calculation must be made for the interaction between each designated river valley and every other designated river valley, based on information collated from the Transfer Register.

Stage 2

Pool any cap surpluses and deficits calculated under Stage 1 in relation to each designated river valley, in order to reduce any shortfalls in each designated river valley.

Where lower reliability entitlements have been converted to