Document ID: chunk:federal_register_of_legislation:F2010L02470:body:0:p4
Version: federal_register_of_legislation:F2010L02470
Segment Type: other
Provision Reference: 
Character Range: 9111–12115

determining the sum of every Stage 1 cap surplus (Step 6) arising from transfers from, or into that valley, into or from designated river valleys in other States.
Implementation of Stage 2

 (2) For subclause 9 (2) of Appendix 3 to Schedule D to the Agreement, Stage 2 is to be implemented in accordance with the following method statement.

      Method statement
           Step 9. The Authority must determine the entitlement conversion cap surplus with respect to each designated river valley, as:

                (a) the absolute value of any decrease in the net cap required in that valley, as a result of conversions within that valley; or
                (b) if the net cap required in that valley increases as a result of such conversion —  zero.

           Step 10. The Authority must calculate the total cap shortfall for a designated river valley, by determining the sum of every Stage 1 cap shortfall (Step 5) calculated in relation to that designated river valley.
           Step 11. The Authority must calculate the total cap surplus for a designated river valley, by adding the following:

                (a) the sum of every Stage 1 cap surplus (Step 6) calculated in relation to that designated river valley; and
                (b) the entitlement conversion cap surplus (Step 9) calculated for that designated river valley.

           Step 12. The Authority must calculate the shareable cap surplus for each designated river valley by determining the lesser of:

                (a) the total cap surplus (Step 11); and
                (b) the maximum cap commitment (Step 7);

            for the designated river valley.
           Step 13. The Authority must calculate the pooled cap surplus by determining the sum of shareable cap surpluses (Step 12) for all designated river valleys.
           Step 14. The Authority must calculate the pooled cap shortfall, by determining the sum of the total cap shortfalls (Step 10) for all designated river valleys.
           Step 15. The Authority must calculate the surplus ratio, by determining the lesser of:

                (a) 1; and
                (b) the pooled cap shortfall (Step 14) divided by the pooled cap surplus (Step 13).

           Step 16. The Authority must calculate the shortfall ratio by determining the lesser of:

                (a) 1; and
                (b) the pooled cap surplus (Step 13) divided by the pooled cap shortfall (Step 14).

           Step 17. The Authority must determine the total Stage 2 cap adjustment for each designated river valley by:

                (a) multiplying the total cap shortfall for that valley (Step 10) by the shortfall ratio (Step 16); and
                (b) multiplying the shareable cap surplus for that valley (Step 12) by the surplus ratio (Step 15); and
                (c) subtracting the product of paragraph (b) from the product of paragraph (a).
Implementation of Stage 3

 (3) For subclause 9 (2) of Appendix 3 to Schedule D to the Agreement,