Murray-Darling Basin
13.1 Adjustment and forfeiture of surface water allocation

Supporting Information

The volumetric value for the line item for the 2010–11 year was 1,594,699 ML. The line item includes adjustment and forfeiture of surface water allocation (1,488,784 ML) and other surface water liability adjustments (105,915 ML) in the Murray–Darling Basin (MDB) region. The line item does not include details for urban water systems. They are included in line item 13.2 Adjustment and forfeiture of surface water allocation – urban water system.

 Adjustment and forfeiture of surface water allocation

The following two tables provide a summary and breakdown information on adjustment and forfeiture of surface water allocation (excluding urban water systems) within the region. 

 

Summary of adjustment and forfeiture of surface water allocation (excluding urban water systems) in the MDB region
Water resource plan area

State

 Volume (ML) for the 2010–11 year 

 Code

Name

SW19 Warrego – Paroo – Nebine Qld 1,756
SW18 Condamine–Balonne Qld
SW17 Moonie Qld na
SW16 Qld Border Rivers Qld –3,668
SW15 NSW Border Rivers NSW 4,605
SW11 Barwon–Darling watercourse NSW na
SW12 NSW Intersecting Streams NSW na
SW14 Gwydir NSW 2,701
SW13 Namoi NSW 34,035
SW10 Macquarie–Castlereagh NSW 19,956
Sub-total Northern Basin 59,385
SW9 Lachlan NSW 56,507
SW8 Murrumbidgee NSW NSW 932,029
SW7 NSW Murray and Lower Darling NSW 221,304
SW3 Northern Victoria Vic  –106,434
SW2 Vic Murray Vic 89,844
SW4 Wimmera–Mallee Vic 22,547
SW6 Eastern Mount Lofty Ranges SA
SW5 SA Murray SA 213,602
SW1 ACT ACT na
Sub-total Southern Basin 1,429,399
Total for the region 1,488,784

– = Data not available, na = not applicable

 

Details of adjustment and forfeiture of surface water allocation (excluding urban water systems) in the MDB region
Water resource plan area

Sustainable diversion limit area

State

Entitlement class

 Volume (ML) for the 2010–11 year

Code

Name

Warrego – Paroo – Nebine SS28 Warrego Qld Supplemented 1,756
Qld Border Rivers SS24 Qld Border Rivers Qld Supplemented –3,668
 Sub-total Queensland –1,912
NSW Border Rivers SS23 NSW Border Rivers  NSW High security 123
General security 3,814
Stock and domestic 668
  Sub-total 4,605
Gwydir SS22 Gwydir  NSW High security 99
General security 923
Stock and domestic 1,619
High security – research 60
Sub-total  2,701
Namoi SS21 Namoi  NSW High security 808
General security 31,486
Stock and domestic 1,452
High security – research 289
 Sub-total  34,035
Macquarie–Castlereagh SS20 Macquarie–Castlereagh  NSW High security 679
General security 10,959
Stock and domestic 4,575
High security – research 3,743
 Sub-total  19,956
Lachlan SS16 Lachlan NSW High security 15,860
General security 16,340
Stock and domestic 10,743
Conveyance 13,564
 Sub-total  56,507
Murrumbidgee NSW SS15 Murrumbidgee NSW NSW High security 23,263
General security 839,324
Stock and domestic 16,953
Conveyance 52,265
High security – research 174
High security – Aboriginal cultural 50
 Sub-total  932,029
NSW Murray and Lower Darling SS18 Lower Darling NSW High security 0
General security 1
Supplementary 0
Stock and domestic 920
 Sub-total  921
SS14 NSW Murray NSW High security 2,372
General security 208,580
Supplementary 0
Stock and domestic 9,431
Conveyance 0
High security – research 0
High security – Aboriginal cultural 0
High security – community and education 0
Sub-total  220,383
 Sub-total New South Wales 1,271,118
Northern Victoria SS4 Ovens Vic High reliability water share 25,501
SS5 Broken Vic Combined high and low reliability 7,153
SS6 Goulburn Vic Combined high and low reliability –132,218
SS7 Campaspe Vic Combined high and low reliability 22,161
SS8 Loddon Vic Combined high and low reliability –29,031
Vic Murray SS2 Vic Murray Vic Combined high and low reliability 89,844
Wimmera–Mallee SS9 Wimmera–Mallee Vic High reliability water share 22,547
 Sub-total Victoria 5,957
Eastern Mount Lofty Ranges SS13 Eastern Mount Lofty Ranges SA Regulated
unregulated
Sub-total
SA Murray SS11 SA Murray SA Class 1  – stock and domestic 0
Class 2 – other urban (country town) water supply na
Class 3 – irrigation and holding 
Class 4 – recreation
Class 5 – industrial 0
Class 6 – Metro-Adelaide water supply scheme na
Class 7 – environment
Class 8 – environmental land management
Combined classes urban na
Combined classes metered 213,602
Sub-total  213,602
SS10 SA non-prescribed areas SA Regulated
unregulated
Sub-total  
Eastern Mount Lofty Ranges SS12 Marne–Saunders SA Regulated
unregulated
Sub-total  
 Sub-total South Australia 213,602
Total for the region 1,488,784

– = Data not available, na = not applicable

 

Queensland

In Queensland, the resource operation plans (ROPs) distinguish between high and medium priority of supplemented water allocation. The water audit monitoring (WAM) data, which are the data source for the 2011 Account, only distinguish between supplemented and unsupplemented entitlements. Both urban and non-urban supplemented entitlements are included within the supplemented entitlement class. Supplemented urban and supplemented non-urban volumes on allocations, diversions and other attributes were received together and it is not possible for these to be separated out for the two purposes. Therefore, this line item includes adjustment and forfeiture volumes for both urban and non-urban supplemented entitlements. 

For continuous accounting systems in Condamine–Balonne and Border Rivers, it was not possible to calculate the adjustment and forfeiture volumes due to lack of information. The volume for Condamine is shown as data not available and the volume reported for Border River is a result of a trade imbalance in the unsupplemented Border Rivers system.

 New South Wales

Usually unused allocation balances are forfeited for entitlement classes: stock and domestic, community and education, research and Aboriginal culture. In some cases, the allocation may be overdrawn and the balance is shown in line item 5.1 Surface water allocation remaining.

In the Murrumbidgee water resource plan (WRP) area, irrigators may borrow water from the Snowy Scheme. This borrow is made under a contractual agreement between the irrigator and the Snowy Scheme. The volume contracted is then credited by NSW Office of Water (NOW) to the individual account of the irrigator, allowing the irrigator to order water from the water assets administered by NOW. In parallel, the Snowy Scheme transfers the physical water into Blowering Reservoir in the Murrumbidgee WRP area. When the irrigator is able in subsequent years to repay the debt, they notify NOW, which debits the account from the volume previously borrowed, thus reducing the allocation announced earlier in the year. Line item 1.5 Inter-region claim on water provides details of the inter region transfers from Snowy Hydro.

Adjustment and forfeiture volume for New South Wales Border rivers WRP area accounts for unreconciled water trade between New South Wales and Queensland.

 Victoria

Victorian allocation adjustment and forfeiture are shown in the source valley, even though the water was taken in a different destination valley. Therefore all entitlements in the Goulburn sustainable diversion limit (SDL) area have their allocation adjustments and forfeiture shown in that area, rather than the destination valleys of the Loddon or the Campaspe.

In Victoria, once an allocation has been made, regardless of its class, it goes into a single allocation account. Therefore, adjustment and forfeiture volumes are not specified as high reliability water share or a low reliability water share and are reported as combined high and low reliability water share.

Allocation volumes have the 50% carry-over limit rule applied for the Broken River system. This rule limits the carry-over to a maximum of 50% and the subsequent allocation in the year to a maximum of 50%, rather than the announced allocation of 100%.

 South Australia

No carry-over was permitted for South Australian Murray at the end of the 2010–11 year. In this line item for South Australia, adjustment and forfeiture volumes include the classes 1, 3, 4, 5, 7 and 9 as a combined class. Carry-over is not allowed for classes 1, 5 and 8, and therefore all unused water within these classes is forfeited.

 Other adjustments made on surface water liabilities

Other adjustments made in this line item include accounting of:

  • liabilities arising from allocation and tagged trade in the region
  • other unaccounted liabilities.

These two attributes are currently not taken into account in the reconciliation of surface water allocation–related line items in the Bureau of Meteorology (the Bureau)'s accounting process.  These attributes have been taken into account as adjustments in this line item to represent them in the water accounting statements. The following table provides information on these adjustments.

 

Other surface water liability adjustments
Description

Northern Basin (ML)

Southern Basin (ML)

Whole region (ML)

Liability decrease from surface water allocation and tagged trade and unaccounted surface water liabilities 128,562 –22,647 105,915

 

Details of surface water allocation and tagged trade are available in the Water market activity region note. Unaccounted surface water liability was due to allocation trade imbalance (which has not been reflected in the liability data available for allocation and tagged trade) between New South Wales and Queensland.

Quantification Approach

Data Source

(1) New South Wales: NSW Office of Water's Water Accounting section; and (2) WAM data received from Queensland (22 December 2011), South Australia (07 February 2012) and Victoria (31 January 2012), and stored in the Murray–Darling Basin Authority HYDRO database.

Provided by

Murray–Darling Basin Authority and the Bureau.

Method

NSW Office of Water supplied data are prepared on a water balance approach. The forfeitures and adjustments have been checked to ensure that the closing balance reconciles.

Adjustment and forfeiture for Queensland was calculated using WAM data on a water balance approach. The forfeitures and adjustments have been checked to ensure that the closing balance reconciles. Adjustment and forfeiture does not apply in the St George (Condamine–Balonne SDL area), Border Rivers and Macintyre Brook (Queensland Border Rivers SDL area) water supply schemes, which are continuous share schemes.

Adjustment and forfeiture for South Australia was calculated using WAM data on a water balance approach. The forfeitures and adjustments have been checked to ensure that the closing balance reconciles.

Victorian adjustment and forfeiture was calculated using a water balance approach with data from WAM, and the allocation remaining (carry-over) volumes supplied by the Victorian Department of Sustainability and Environment (DSE). DSE carry-over was used instead of WAM carry-over as more information was available on how these figures were derived and carry-over volumes were provided for more valleys.

Assumptions, Limitations, Caveats and Approximations

Uncertainty reported by NSW Office of Water accounts for possible errors in the quantification of diversion and in the data handling processes.

Information provided in this line item may have been based on Cap valleys in the HYDRO database, which may not align perfectly with SDL areas.

Uncertainty Information

WAM supplied data are either measured, modelled or estimated. The uncertainty value for the New South Wales data provided in this line item is +/– 10%. The uncertainty estimate was not quantified for all other adjustment and forfeiture volumes reported in this line item.

Comparative year

This line item corresponds to line items listed in the following table and reported in the 2010 Account. In the 2011 Account, the following change was made that caused the 2009–10 year value to be restated:

  • Presentation and classification of the line items has changed since the 2010 Account.

The changes and their respective values are detailed in the following table.

 

Restatement of comparative year information made for the line item 13.1 Adjustment and forfeiture of surface water allocation
Description

Northern Basin (ML)

Southern Basin (ML)

Whole region (ML)

Line item names and values reported for the 2009–10 year in the 2010 Account 26.1.1.1 Adjustment and forfeiture of allocation on regulated flows – stock and domestic water access entitlement 7,673 16,343 24,016
26.1 .2.5 – Adjustment and forfeiture of allocation on regulated flows – high security, individual holder for stock and domestic 0 0 0
26.1.2.7 Adjustment and forfeiture of allocation on regulated flows – high security, other lumped holders 5,126 20,301 25,427
26.1.3.6 Adjustment and forfeiture of allocation on regulated flows – general and low security, other lumped holders 26,144 33,669 59,813
26.1.9.1 Adjustment and forfeiture of allocation on regulated flows – bulk irrigator holder 0 17,275 17,275
26.1.9.2 Adjustment and forfeiture of allocation on regulated flows – individual irrigator holder 0 0 0
26.1.9.7 Adjustment and forfeiture of allocation on regulated flows – other lumped holders 0 366,273 366,273
Total value reported for the 2010 Account 38,943 453,861 492,804
Changes in the value reported in the 2010 Account due to regrouping of line items  4,169 –505,828 –501,659
Value reported for the 2009–10 year in the 2011 Account  43,112 –51,967 –8,855

 

Changes in the value reported in the 2010 Account due to regrouping of line items were due to the following reasons:

  • The high security entitlement classes within New South Wales for research, industrial, cultural, community and education were reported under urban line items in the 2010 Account.  Adjustment and forfeiture associated with these entitlement classes was designated as non-urban and included in this line item for the 2011 Account.  

  • Liability changes associated with allocation and tagged trade and unaccounted liability were accounted in line item 13.1 (this line item) for the 2011 Account.  For the 2010 Account, unaccounted liability was included in line item 25.6 Other lumped surface water liability increases.  This regrouping was made because the accounting system currently available for the 2011 Account has limitations in accounting allocation and tagged trade and unaccounted liability.