New South Wales Consolidated Acts

WATER MANAGEMENT ACT 2000 - SECT 87AA

87AA Compensation payable in certain circumstances for reductions in water allocations arising after initial period that management plan is in force

(1) This section applies to the following categories and subcategories of access licence--

(a) regulated river (high security) access licences,

(b) regulated river (general security) access licences,

(c) Murrumbidgee Irrigation (conveyance) access licences,

(d) Coleambally Irrigation (conveyance) access licences,

(e) unregulated river access licences,

(f) aquifer access licences,

(f1) floodplain harvesting (regulated river) access licences,

(f2) floodplain harvesting (unregulated river) access licences,

(f3) regulated river supplementary water access licences,

(g) any other category or subcategory of access licence that is prescribed by the regulations (other than excluded supplementary water access licences or specific purpose access licences).

(2) A holder of an access licence to which this section applies whose water allocations are reduced because of a change to provisions of the relevant management plan dealing with water sharing is entitled to compensation as assessed by the Minister in accordance with subsections (5) and (6).

(3) Despite subsection (2), the holder of an access licence is not entitled to compensation under this section if--

(a) the reduction in water allocations occurred while the first management plan (excluding any period for which that plan was extended under section 43A (1)) was in force or during the period during which compensation is payable under section 87 (10), or

(b) the reduction in water allocations occurred as a result of an amendment of a management plan by the Minister under section 45 that is authorised by the plan or that is required to give effect to a decision of the Land and Environment Court relating to the validity of the plan, or

(c) the reduction in water allocations is for the purpose of restoring water to the environment because of natural reductions in inflow to the water source, including but not limited to changes resulting from climate change, drought or bushfires.

(4) A reference in subsection (2) to a change in the provisions of a management plan includes a change between the provisions of the management plan concerned and provisions of the management plan that it replaced.

(5) Compensation is payable to the holder of an access licence whose water allocations are reduced because of a change in the provisions of a management plan as a result of an amendment that is specified under section 46 (1) (c) by the Minister as due to a change in State government policy.

(6) Compensation is payable as follows for a reduction in water allocations that is specified under section 46 (1) (b) by the Minister as being for the purpose of providing additional water to the environment because of more accurate scientific knowledge that demonstrates that the amount previously allocated to the environment is inadequate--

(a) no compensation is payable for reductions of 3% or less,

(b) compensation is payable for reductions of more than 3% over any 10-year period commencing on or after the expiration of the period for which the first management plan for the relevant area was in force (including any period for which that plan was extended under section 43A (1)),

(c) only one third of the compensation payable for a reduction of more than 3% but not more than 6% over any applicable 10-year period is liable to be paid under this section,

(d) only one half of the compensation payable for a reduction of more than 6% over any applicable 10-year period is liable to be paid under this section.

(7) The regulations may make provision for or with respect to the following--

(a) the basis on which reductions in water allocations are to be calculated or the method of determining such reductions for the purposes of this section,

(b) the basis on which compensation is to be calculated or the method for calculating the payment of compensation for the purposes of this section,

(c) the manner and time of payment of compensation.

(8) This section has effect in relation to water sources that are Basin water resources only while there is in force an agreement between the State and the Commonwealth (separate from the agreement referred to in subsection (8A)) for or with respect to supplementing the payment of compensation under this section.

(8A) This section has effect in relation to water sources that are not Basin water resources only while there is in force an agreement between the State and the Commonwealth (separate from the agreement referred to in subsection (8)) for or with respect to supplementing the payment of compensation under this section.

(9) Despite any other provision of this section, no compensation is payable under this section in respect of a reduction in water allocations of a kind referred to in subsection (6) if the Commonwealth has not provided funding in respect of that reduction to meet its obligations under the agreements referred to in subsections (8) and (8A).

(10) A person may appeal to the Land and Environment Court on the ground that the person is entitled to the payment of compensation under this section but has not been determined as being entitled to any compensation.

(11) In this section--

"excluded supplementary water access licence" means a supplementary water access licence other than a regulated river supplementary water access licence.