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Strategic directions

Water Management – the River Murray system

River Murray Water (RMW) was established by Ministerial Council as the Commission’s internal water division, in response to the 1994 water reform principles of the Council of Australian Governments (COAG).

The establishment of River Murray Water within the terms of the existing Agreement achieved a separation between water service delivery and resource management functions. At the same time, the capacity was retained for joint action to achieve Basin-wide values.

The Commission has established and progressively implemented a River Murray Environmental Management Branch within the Natural Resource Management Division. The close linkages that have been formed between this branch and RMW have been an essential element in achieving enhanced environmental outcomes for the River Murray.

The Ministerial Council has previously approved, in principle, amendments to the Agreement to enable:

• the establishment and management of renewals annuities for replacing of assets and also for major cyclic maintenance
• cost-sharing arrangements between governments to be varied from time to time based on price-for-service principles
• re-allocation of responsibility for River Murray structures from one constructing authority to another, subject to agreement by the Ministerial Council
• amendments by the Ministerial Council, from time to time, of expenditure approval thresholds.

These proposed amendments have been referred to partner governments for consideration and implementation. As a package of amendments they will, if adopted, effectively complete the asset management and financial reforms recommended by COAG in 1994.

During 2004–05 the Australian Government and the Victorian Government completed arrangements for the enabling legislation to be considered by their parliaments. The governments of New South Wales and South Australia have yet to finalise their consideration of the proposed amendments and the draft enabling legislation.

The impacts of prolonged drought have continued to be felt throughout the River Murray system through 2004–05, with restricted allocations to irrigators in New South Wales, Victoria and South Australia.

In managing the shared water resource for the partner governments the RMW Production Team has focused both on ‘not wasting a drop’ and ‘doing the best it can with water available to the environment’. The creation of environmental management assets and the recovery of environmental water entitlements under The Living Murray Initiative is progressing and will assist the delivery of enhanced environmental outcomes in the future.

In 2004–05 major works have been directed at:

• reducing OH&S risks
• extending the life of aged infrastructure
• constructing new salt interception schemes
• constructing new assets for environmental delivery.

Water resources management

The water resources of the River Murray system (see Figure 2.1) are used for a wide range of beneficial purposes. In addition to its inherent natural value to riverine, floodplain and estuarine ecosystems, it is used for irrigation, industrial and domestic water supplies, navigation, recreation, and the generation of hydro-electricity.

RMW manages the river system to ensure that the available water is documented in the water accounts and distributed to South Australia, Victoria and New South Wales in accordance with the Agreement.

RMW undertakes the tasks of sharing and supplying water through:

• assessing future availability of water
• accounting for actual use of water
• regulating river flows to meet environmental and user needs.

As in the previous two seasons, low water reserves and below average inflows in 2004–05 again resulted in low irrigation allocations along the River Murray system.

Figure 2.1: The River Murray system

Water availability

2004–05 was another year of low inflows and reservoir storage levels. In terms of inflows to the River Murray system, the current drought period is one of the most severe since records began. The drought has impacted on the environment, irrigation and local communities.

Whilst there have been more prolonged droughts during the 1890s and 1940s, the last four years have seen the lowest River Murray system inflows on record. Figure 2.2 illustrates the current drought period compared with historical droughts.

Figure 2.2: River Murray system inflows with extended drought periods highlighted

The extended nature of the drought means that River Murray system water reserves have been significantly depleted and water users are virtually living from year to year. In 2004–05, most irrigators experienced a third year with less than full allocations. The pressure on irrigation communities has been immense. Large volumes of water have been traded to support high-value industries, and commercial arrangements have been made for the advance of additional water purchased from Snowy Hydro.

The volume of water under Commission control at the start of 2004–05 was low (2450 GL or 26 per cent of active storage). Inflows to headwater storages improved over some of the spring and summer months, providing increased storage levels, while unusually heavy rainfall in early February 2005 gave welcome late-season inflows. River Murray inflows for the year totalled about 4900 GL–little more than half the average annual inflow—which put the year among the driest 20 per cent on record.

A flow event in the Darling catchment in early January raised storage in Menindee Lakes by approximately 220 GL, to a total of 440 GL. The security of water to regional water users, including at Broken Hill, increased, and the lakes remained under NSW control throughout 2004–05.

MDBC storage at the end of 2004–05 was 3000 GL, some 550 GL higher than at the start of the season.

State shares of water held in Commission storages at the beginning and end of 2004–05 are shown in Table 2.1.

Table 2.1: Water accounts for New South Wales and Victoria, 2004–05 (GL)

Storage location	Storage at 30 June 2004				Storage at 30 June 2005
	NSW	Vic	Total	Out of balance	NSW	Vic	Total	Out of balance
Dartmouth Reservoir	618	1272	1889	654	518	1230	1748	713
Hume Reservoir	149	159	307	10	457	457	913	0
Lake Victoria	132	124	256	-8	78	267	345	189
Menindee Lakes*	-	-	-	-	-	-	-	-
Total	898	1555	2453	657	1052	1954	3006	902

Notes:

* Menindee Lakes has been in NSW control since mid March 2002, and the resource will not become available to the MDBC until the storage next exceeds 640 GL.

Accounts are based on the best available data, which may contain some unverified operational data. Figures are rounded to the nearest GL.

Data relate to gross storage.

The ‘out of balance’ figure reflects the volume of stored water accounted to Victoria, minus the volume of stored water accounted to New South Wales.

Figures may differ from those reported in the 2003–04 annual report due to the substitution of verified data.

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State irrigation allocations

Water resource availability for New South Wales, Victoria and South Australia in 2004–05 was again constrained by low inflows, with water allocations in all states at low levels. The irrigation allocations for the three states are summarised below.

Victoria

The initial level of allocation in Victoria for the Murray was 46 per cent of Water Right and 46 per cent of Licensed Volume for private diverters. As conditions and inflows improved during the irrigation season, the allocation level increased to 100 per cent of Water Right and 100 per cent of Licensed Volume, with no Sales Water available.

Victoria again borrowed water from the Barmah–Millewa Forest environmental water account to improve allocation levels earlier in the season, with all of the 175 GL borrowed repaid during the year.

This year was the second consecutive season where Victorian allocations were limited to 100 per cent. Victoria increased its storage reserves over the year to increase its chance of achieving 100 per cent of Water Right in the following season.

New South Wales

The opening irrigation allocation in 2004–05 was constrained to zero per cent for General Security and 97 per cent for High Security. As conditions improved over 2004–05, some Supplementary Water Access was declared by New South Wales and the General Security allocation increased to 49 per cent.

New South Wales again borrowed water from the Barmah–Millewa Forest environmental water account, with 225 GL owing at the end of the year. The Commission noted this arrangement, whereby water was temporarily borrowed beyond normal payback arrangements, allowing allocations to rise to 49 per cent.

As it did last season, Murray Irrigation Limited (MIL) negotiated an advance of water (107.5 GL) from the Snowy Scheme to increase supplies to water users. The MDBC agreed to this arrangement on the basis that the water would be accounted as fully New South Wales with no impact on Victoria and South Australia’s water availability, and that it would be paid back when NSW General Security allocations next reached 50 per cent. General Security allocations reached 49 per cent in 2004–05. NSW also repaid in 2004–05 the remaining 49 GL of Snowy water advanced in 2002–03.

South Australia

In 2004–05 South Australia experienced its second consecutive year with announced availability less than full allocation. In response to the ongoing drought conditions, South Australia announced an initial level of authorised use for River Murray water users at 70 per cent of licensed allocation.

Improvements in River Murray water availability over the season, combined with good inflows into the lower lakes from the Mount Lofty Ranges, allowed the authorised level of water use to be raised to 90 per cent in September 2004, and 95 per cent in January 2005. Although additional water became available, SA Water voluntarily agreed to reduced authorised use of water for 2004–05: the metropolitan Adelaide licence was restricted to 136 GL and country towns to 40 GL.

State irrigation diversions

State diversions from the River Murray and lower Darling River are summarised in Table 2.2. Diversions this season were of the same order of magnitude as diversions in 2003–04.

Table 2.2: Summary of state diversions (GL)

Year	River Murray*				Darling§
	NSW	Vic	SA	Total	NSW
1991–92	2431‡	1827	589	4847	101
1992–93	1633	1147	482	3262	77
1993–94	1902	1407	587	3896	158
1994–95	2254	1970	663	4887	54
1995–96	1935	1740	568	4243	168
1996–97	2231	1745	600	4576	136
1997–98	1886	1696	664	4246	71
1998–99	2000	1766	690	4456	192
1999–00	1234	1522	642	3398	85
2000–01	2070	1682	662	4414	246
2001–02	2113	1884	621	4618	126
2002–03	879	1701	737	3317	107
2003–04	1312	1442	612	3366	23
2004–05†	1258	1418	618	3294	26

* Data based upon the official MDBC record for the reporting requirements of implementation of the ‘Cap’ on diversions, with the exception of data for 2004–05.

† Data presented for 2004–05 is estimated based on hydrographic and operational data, and advice from the SA Department of Water, Land and Biodiversity Conservation.

‡ Record high diversion.

§ Includes data from Cawndilla Outlet to the Great Darling Anabranch.

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Water trade

The trading of water across the River Murray System followed similar patterns to those observed in 2003–04. Low initial authorised use levels in South Australia saw about 9 GL of water traded temporarily into South Australia early in the season. There was a net trade of about 11 GL to upstream states late in the season.

Net trade between the Murrumbidgee and Murray valleys was near to balanced and RMW did not call on water from the Murrumbidgee Valley account this year. There was significant trade activity again this season between the Goulburn and Murray valleys. RMW called about 50 GL of water from the Goulburn Valley account and, after consultation with Victoria, elected to leave a further 60 GL in the account to be called upon during 2005–06.

RMW adjusted state water shares and deliveries to take account of permanent trade (cumulative to June 2004 from the start of the Pilot Interstate Water Trading Project in 1998), and carried over trade adjustments from late in
2003–04 and temporary trade during 2004–05. Total net adjustments made to water accounts were 1.7 GL from Victoria to New South Wales, 1.3 GL from South Australia to New South Wales and 15 GL from Victoria to South Australia.

Flow to South Australia

A total of 1880 GL flowed into South Australia, comprising 1850 GL of entitlement flow, 15 GL surplus flow and 15 GL traded water. The flow received in 2004–05 was significantly lower than the median annual flow of 4800 GL, and also less than that received in 2003–04 (2023 GL).

Operation of storages

The MDBC opening storage for 2004–05 was low, at 2450 GL (26 per cent capacity). This was about 450 GL higher than at the start of 2003–04—most of this improvement was held in Dartmouth Reservoir.

Most of the opening storage was held in Dartmouth Reservoir (1890 GL), as in recent years. Good spring rains boosted inflows into both Dartmouth and Hume reservoirs, delaying the start of water transfers from Dartmouth Reservoir to Hume Reservoir. The volume transferred over 2004–05 was about 750 GL, compared to only 200 GL in 2003–04. Dartmouth storage did not recover past its opening storage, and at the end of June 2005 was 1750 GL, or 45 per cent capacity.

Storage in Hume Reservoir reached 1650 GL (54 per cent of capacity) during late November 2004 compared to a peak storage of 2220 GL (73 per cent of capacity) in November 2003. At the end of the season, the storage was 600 GL higher than at the end of the previous season due to early winter inflows and because diversions late in the season were lower than expected.

Transfers of water from Hume Reservoir to Lake Victoria began much earlier this season compared to last season. These transfers were carefully managed over the season with the aim of drawing down storage in Lake Victoria to a low level by the end of the season, whilst ensuring the continued supply of South Australia’s entitlement flow. Further details regarding the operation of Lake Victoria are provided below.

Heavy February rainfall produced high unregulated inflows from the Kiewa and Ovens catchments, and South Australia received 1.3 GL above its entitlement flow in February 2005 due to inlet capacity constraints at the Lake Victoria regulator.

Storage in Menindee Lakes at the beginning of July 2004 was very low, at 330 GL (19 per cent capacity). The lakes remained in NSW control in accordance with the Agreement-this provision allows New South Wales to manage a ‘drought reserve’ to meet the needs for irrigation, stock, domestic and town water supply (including Broken Hill) in the lower Darling River and Darling Anabranch.

Inflows to Menindee Lakes remained extremely low during the first half of 2004–05. However heavy rainfall (up to 300 mm) in the Darling catchment during late December 2004 and early January 2005 brought some relief. The flow in the Darling River at Bourke peaked at about 30 000 ML/day in early January 2005. This event boosted storage levels in Menindee Lakes by about 230 GL, to 440 GL (or 25 per cent capacity). By the end of June 2005, the storage was drawn down to 330 GL, which was about the same as at the start of the year.

By the end of June 2005, MDBC storage was about 3000 GL (32 per cent capacity) and about 550 GL higher than at the start of the season. This slightly improved the water resource outlook for the following season, compared with this season.

Storage behaviour resulting from the operation of MDBC’s four major storages is shown in Figure 2.3.

Figure 2.3: Storage behaviour resulting from inflow and RMW’s operation of the MDBC storages

At the end of the 2003–04 irrigation season, Lake Victoria held just 200 GL or 30 per cent capacity. Transfers from Hume to Lake Victoria again started early in the 2004–05 season as a result of dry conditions and low inflows from tributaries downstream of Hume Dam. A total of 321 GL was transferred from May to July 2004 before transfers were temporarily halted in August as a result of rainfall and the prospects for improved inflows.

The operational level (measured as height above mean sea level) of Lake Victoria is crucial for restoration of the environment and preservation of cultural heritage. Unregulated inflows from tributaries downstream of Hume Dam during August and September resulted in the Lake Victoria storage refilling to 26.76 metres (96 per cent capacity) by 17 October 2004. Further inflows and a reduction in irrigation demand during early November caused Lake Victoria to reach 27 metres (100 per cent capacity) on 4 December 2004.

Storage in Lake Victoria then fell until mid February, when heavy rain in the Ovens River, combined with ‘rain rejection’ of ordered irrigation water, caused lower Murray flows to increase. Approximately 80 GL was harvested in Lake Victoria, raising storage to 26.28 metres by 8 March. This operation was significant in that it was the first time that RMW had been in a position to harvest water in Lake Victoria above the drawdown targets detailed in the Lake Victoria Operating Strategy since it was formally adopted in 2002.

The strategy provides for water to be stored in Lake Victoria above the desired autumn drawdown targets when either NSW reserves are forecast to fall below 1000 GL (NSW reserves are usually lower than Victorian reserves, which have a more conservative threshold), or when Menindee Lakes are in NSW control. Both of these conditions were satisfied during autumn 2005.

Dry conditions during the remainder of autumn 2005 resulted in Lake Victoria storage falling to 24.70 metres by the end of April. This falls within the strategy’s drawdown target of 24.50 metres by the end of April. Lake Victoria storage continued to fall during May and June 2005 to 24 metres as a result of dry conditions. The autumn 2005 drying phase is not expected to be detrimental to vegetation on the lake foreshore.

Lake Victoria foreshore vegetation

The Lake Victoria foreshore is very rich in Aboriginal cultural heritage, having been occupied over many thousands of years. MDBC operates Lake Victoria in accordance with a Cultural Landscape Plan of Management (the Plan), which was developed by representatives of the local Indigenous community, landholders, NSW National Parks and Wildlife Service (now part of the Department of Environment and Conservation), MDBC and partner agencies the Department of Infrastructure, Planning and Natural Resources (NSW) and SA Water.

The Plan aims to stabilise the sandy foreshore sediments with indigenous floodplain plant species, hence minimising erosion and conserving the in situ cultural heritage material. Grazing has now been removed from much of the foreshore, including the Frenchmans Islands chain on the southern lakebed, further promoting the opportunity for vegetation to flourish. In addition, the Lake Victoria Operating Strategy, formally adopted by the Commission in May 2002, successfully balances water supply objectives with vegetation outcomes by lowering average water levels and increasing the drying time available for perennial wetland plant species. This has been achieved without compromising water supply requirements.

The Snowy Mountains Scheme

Total active storage in the Snowy Mountains Scheme increased by about 280 GL over 2004–05, from about 40 per cent of total active storage at 1 May 2004 to about 45 per cent at 30 April 2005. The increase in total storage comprised a small increase in storage in the Snowy-Tumut Development, with almost no change in storage in the Snowy-Murray Development.

Release from Murray 1 Power Station for the 12 months to 30 April 2005 was 1104 GL, made up of:

• 1062 GL of required annual release
• repayment of the last 49 GL of the 138 GL advanced in 2002–03
• repayment of 16 GL associated with construction of outlet works at Jindabyne Reservoir
• 107 GL advance by NSW irrigators via a commercial arrangement with Snowy Hydro Limited.

Further special water release arrangements were also entered into between Murrumbidgee irrigators and Snowy Hydro Limited.

Releases from Murray 1 Power Station were evenly spread throughout the first three-quarters of the season, with an increased amount released in the last quarter. The pattern was within forecasts by Snowy Hydro Limited and did not have any detrimental impacts on River Murray System planning.

Environmental report

River flows and use of environmental entitlements

2004–05 was another year of low inflows and reservoir storage levels. Consequently there were no spills of water from the major River Murray System water storages, apart from a controlled release of approximately 100 GL from the Barrages.

During 2004–05, there were no sufficiently large and long spring ‘freshes’ to trigger the use of the Barmah–Millewa Forest Environmental Water Allocation, and the water in the account was again loaned to irrigators, credited and carried over for use in a future season. There were, however, a couple of small flushes from the Kiewa and Ovens rivers during September 2004 and February 2005, which resulted in limited watering of some low-lying parts of the forest.

A number of environmental watering opportunities undertaken during the year in New South Wales, Victoria and South Australia are described below.

The NSW Wetlands Working Group used 17 GL of NSW Adaptive Environmental Water. Most of the watering was undertaken in the following areas:

• Gulpa Creek Wetlands – Millewa Forest (8800 ML)
• private property wetlands – Murray Irrigation Limited (4789 ML)
• Chowilla Floodplain South Australia (1500 ML) (through negotiations with, and a transfer of water to, the SA Department of Water, Land and Biodiversity Conservation).

 

NSW State Water, in consultation with RMW, also lowered the Stevens Weir Pool (on the Edward River) and removed the Edward River and Gulpa Creek regulators during May 2005 to improve fish migration opportunities between the Edward River, the Barmah–Millewa Forest and the River Murray during winter. The weir was reinstated in July 2005, in time for the start of the 2005–06 irrigation season.

Victoria used about 27 GL of their Murray Flora Fauna Entitlement during
2004–05. The water was used at a number of locations including:

• Gunbower (11 300 ML)
• Kerang Lakes (5104 ML)
• Lower Murray River red gum emergency watering (5200 ML).

In South Australia, the level of the Lock 6 weir pool was gradually raised to about 15 cm above the normal operating level in mid March 2005, and held at that level for about six weeks, to provide water to a small area of wetlands and creeks on the Chowilla Floodplain (about 50 hectares). There were positive environmental outcomes including new growth in River red gums, Lignum and other wetland plants within weeks of the watering.

Localised rainfall and run-off boosted the level of Lake Alexandrina and Lake Albert (in South Australia), and approximately 100 GL was discharged through the Barrages during August and September 2004. This controlled release was the first in 14 months, but was small compared to the median annual flow over the Barrages of 3100 GL/year. Some of this water was released through the Goolwa Barrage, flushing salt out of the Goolwa Channel and reducing the salinity in that area from 3300 EC to about 1700 EC. Water was also released through the two newly installed trial fish passages and adjacent gates on the Tauwitchere Barrage, with the aim of providing some ecological benefits in the Coorong and Mouth area.

The extended drought continues to have a significant impact on the stressed River red gum communities downstream of the Barmah–Millewa Forest. The health of these communities is still declining and has become a significant concern.

Water quality

Overall, water quality along the length of the River Murray was very good during 2004–05. Most of the water was supplied from the upper River Murray catchment (Hume and Dartmouth reservoirs), and the ongoing drought-reduced saline groundwater inputs to the River Murray, resulting in low river salinity and turbidity levels at most locations, with the exception of the Lower Lakes in South Australia.

River salinity levels at Morgan averaged 400 EC over 2004–05, with a peak of 660 EC in mid July 2004. The average at Morgan is significantly lower than the long-term average for the last 20 years of 560 EC, as well as the 800 EC salinity target.

The long period of less than average flow to South Australia and limited barrage releases, has led to salinity continuing to build in Lake Alexandrina and Lake Albert. The small release from the Barrages in August and September 2004 allowed for some salt to be flushed out of the Goolwa Channel, but overall salinities in the Lower Lakes remain high. The salinity at Meningie reached 2400 EC towards the end of 2004–05, whilst Milang reached 1500 EC. Significant inflows and a large release from the Barrages will be required to reduce salinity over the longer term.

River management activities

Hume-Yarrawonga Waterway Management Plan

Works continued under the 2002 River Management Plan for the Hume to Yarrawonga reach of the River Murray. The plan aims to balance water conveyance, economic production and environmental objectives for the reach. It has been developed in consultation with the Advisory Group for Hume to Yarrawonga Waterway Management, representing agencies from each state together with local landholder interests, local government and wider community representatives.

Programs under the Waterway Management Plan include physical works under the Priority Reach Program and the Whole-of-Reach Program. In addition, the Land Management Review considered flood easements for regulated flows.

Physical works

By the end of 2004–05, condition assessments and conceptual designs had been completed for eight of the 14 reaches.

The following on-ground works were completed last year (across all programs).

Erosion control

• Two anabranch bed grade control structures (full stream width timber pile fields) – Parlour creek
• Two anabranch bank erosion control sites (timber pile groynes) – Dights and Yellowbelly creeks
• Two anabranch back erosion control sites (rock armouring) – Parlour and Chambers creeks
• Nine River Murray bank erosion control sites (timber pile groynes)
• Three River Murray bank erosion control sites (rock armouring)
• One River Murray bank erosion control site (geotextile erosion control blanket)
• Approximately 7500 timber piles were driven, and approximately 2.5 km of river bank was protected

Snags

• No snags removed
• Seven River red gum snags realigned for navigation or erosion control reasons

Willow management

• One willow island removed
• One willow snag removed
• Lopping at two sites
• 200 trees eradicated on River Murray main stem between Hume Dam and Lake Mulwala
• 175 trees eradicated on anabranches between Hume Dam and Lake Mulwala

Revegetation

• Revegetation undertaken at 31 sites on River Murray main stem and anabranches using local native species of trees, shrubs, reeds and grasses

Murray Mouth sand pumping

Dredging has been under way at the Murray Mouth since October 2002, with a single dredge up to June 2003 and a two dredge operation since July 2003. The total cost incurred up to 30 June 2005 is about $15 million. The dredging program has been over-sighted by the Murray Mouth Advisory Committee, including a Technical Sub-Committee, and also by the River Murray Water Advisory Board.

Over the past two summers the dredging has been effective in maintaining a flow path to the sea and achieving connectivity with the Coorong consistent with tidal range targets. The ongoing dredging program reflects a continuation of previous commitments by the Murray Darling Ministerial Council and the Murray Darling Basin Commission to keep the Murray Mouth open and maintain adequate connectivity with the Coorong, in the face of the worst four-year drought on record.

Continuing dry conditions in upstream catchments as well as consumptive use has limited releases to the sea to only about 400 GL since December 2001. By comparison the median annual flow to the sea under current levels of development is about 3100 GL, whilst median ‘natural’ flow to the sea is estimated to be of the order of 11 300 GL. To allow temporary suspension of the dredging program will require an annual flow to the sea of about 2000 GL or more although very short-term relief would be possible with lesser flows.

With the dredging program now entering its fourth year there is increasing local pressure relating to easing of restrictions around exclusion zones, both for boats near the dredging and vehicles near the discharge point on Sir Richard Peninsula. Every effort is being made to find workable, safe and effective solutions to access problems without compromising the production capacity of the program, particularly over the spring, summer and autumn periods.

Land management review

Significant progress continued in 2004–05 towards purchasing flood easements to confirm the Commission’s rights to pass regulated flows within existing channel capacity on up to 106 affected properties in the Hume to Yarrawonga reach. Consultants Hassall & Associates had completed property assessment fieldwork for almost all of the properties in the reach by the end of 2004–05. Expert legal advice contributed to the development of easement documentation for Victorian and NSW properties.

The first six offers for Victorian properties were forwarded to landowners in July 2004. By the end of June 2005, 43 of the estimated 76 Victorian offers had been issued, and 28 have been accepted by landowners to date.

Differences between legal requirements in New South Wales and Victoria delayed the process in New South Wales while additional complexities were resolved. By the end of June 2005, 16 of the estimated 36 NSW offers had been issued, of which four had been accepted. The first of these easements were awaiting signature on behalf of the crown, prior to being submitted to NSW Land and Property Information to complete registration of easements.

The remaining offers will be forwarded to landowners through the financial year as documentation is progressively finalised.

Properties of landholders in this reach have been increasingly affected by river regulation over many decades. The progress achieved throughout the year has been a significant milestone for both River Murray Water and these landholders.

Asset management

The assets controlled and managed under the Agreement are investigated, designed, constructed, operated and maintained, for and on behalf of the MDBC, by three constructing authorities from New South Wales, Victoria and South Australia. They are, respectively:

• State Water Corporation and Department of Infrastructure, Planning and Natural Resources
• Goulburn-Murray Water
• the Minister for the River Murray (including the operating agent for South Australia, South Australian Water Corporation).

RMW exercises the MDBC’s responsibilities in relation to management of the assets (see Appendix D). Daily operation and maintenance of the structures is by a collective team from the authorities of the three states totalling 120 staff. RMW values the dedicated service of this team and appreciates the commitment and pride that is evident in the stewardship of the assets.

The Senator Collings Trophy has been awarded annually since 1943 to the team looking after the asset judged to be the best maintained lock and weir. In 2003 the River Murray Water Advisory Board agreed that eligibility for award of the Collings Trophy should be extended to include all water storage assets of the River Murray System. The judging criteria were extended to include not only maintenance and care of the works and their surrounds but also the application of contemporary asset management practice. In 2004 the Senator Collings Trophy was awarded jointly to Norm Boyd, Jeff Finch and Danny Burke from State Water at Lock and Weir 10 (Wentworth) and to Terry Holt and Alan Williams from Goulburn-Murray Water at Lock and Weir 26 (Torrumbarry).

An Emergency Action Plan for River Murray Water has been implemented during the year following testing, through emergency training exercises, of earlier drafts. The plan is linked to individual dam safety emergency plans established for individual assets by the constructing authorities. It sets out the basis for decision-making within the Commission in the event of emergency actions requiring Commission decisions. In particular, the plan documents the role of RMW in directing major flood operations at upper Murray storages.

In a ceremony at Hume Dam on 22 April 2005, Engineers Australia presented plaques to Dartmouth Dam and Hume Dam conferring on them the status of National Engineering Landmarks. This is the highest category of recognition for engineering structures awarded by Engineers Australia.

This recognition to each of these two large dams follows the earlier recognition of the entire ‘Works of the River Murray System as a National Engineering Landmark’ in 2001. The five barrages at the Murray Mouth received a similar award in 2001.

During 2004–05 major works involved:

• completion of navigable passes and fishways at Locks 8 and 9 and commencement of Lock 10
• completion of installation of handrails and operational flexibility measures at Tauwitchere and Ewe Island barrages
• office upgrades at Euston and Mildura weirs and Goolwa Barrage
• river improvement works in the Hume to Yarrawonga reach of the River and in the Mitta Mitta River below Dartmouth Dam to Lake Hume
• initial works towards upgrading Bethanga Bridge, as part of a handover to the NSW and Victorian state road authorities
• replacement of timber stoplogs at Slaneys and Pipeclay weirs (part of Lock 6)
• concrete barriers at Locks 1, 2, 4 and 7
• total refurbishment of Buronga Salt Interception Scheme
• progress on construction of salt interception schemes at Pyramid Creek, Bookpurnong and Loxton.

Dartmouth Dam

A comprehensive inspection of Dartmouth Dam (undertaken every five years) was conducted this year. The report on the inspection states: ‘In general Dartmouth Dam is in good condition and is continuing to perform as expected’.

The installation of walkways on the downstream face of the embankment to provide a safer access for surveillance continued according to schedule. The design of these works is highly innovative and allows for re-levelling as the embankment continues to settle, as expected, with time.

Over many years there has been a program of works to construct concrete kerbs on the edges of the spillway cascade benches to reduce the risk of erosion on the benches and direct flows away from other areas potentially subject to erosion. No further works are proposed until a sufficient spill occurs to allow the effectiveness of the protection system installed to date to be assessed.

A productive workshop was held to capture the 30-year history of operation of and modifications to the Low Level Outlet Works while key past and present personnel were still available. A project is now under way to use this information to set clearer limits to the operation of the Low Level Outlet Works for a range of flows and durations, such as normal annual transfers to Hume Dam; sustained above-average flows in response to long-term dry periods when other reservoirs are run down; and, potentially, for relatively high short-term flows to achieve environmental outcomes in the Mitta Mitta Valley. The aim is to avoid unacceptable damage due to cavitation which had occurred during commissioning trials, and which resulted in the modifications being undertaken in 1982.

Hume Dam

In November 2004 a workshop was held ‘to review the failure modes effects analysis for Hume Dam and agree on what additional remedial measures are required to comply with the risk-based philosophy of “as low as reasonably practical”’. The main conclusions of the workshop were reported as:

• To our best engineering judgment the dam safety risks have been substantially reduced by the [remedial] works carried out to date.
• The dam can be safely operated to its full supply level of 192 metres AHD and for short-term flood surcharges to 192.15 metres AHD.
• There are a number of residual risks and in order to demonstrate that these risks are as low as reasonably practical we have recommended a series of investigations.

These risks are very much second-order risks compared with the risks addressed to date by the remedial works program undertaken between 1994 and 2003 at a cost of approximately $80 million. Detailed studies into these risks are under way. Until these studies are complete it is not clear whether any further minor works are required.

Further progress has been made through the year on determining the contemporary spillway capacity of Hume Dam. Flood risk is being considered separately. The very large size of the catchment and the shape of the valleys upstream of Lake Hume have led to a thorough and cautious approach to the hydrological modelling of the extreme floods and the determination of spillway capacity to meet Australian national guidelines. This year the calibration of the rainfall/runoff model has been completed by State Water’s consultants for review by a sub-committee of the Technical Review Committee. In parallel, a hydraulic model of flood routing through the reservoir, including the upstream valley effects and gate operation at the spillway, is close to finalisation.

The reservoir has still not reached full supply level since the embankment and gate remedial works were completed in 2003–04. As a consequence, the heightened surveillance procedure to be followed during the first two fills has not yet been invoked. The dam had successfully gone through one full cycle in late 2000 but seasonal conditions since have not been sufficient to trigger ‘first fill’ surveillance thresholds.

Yarrawonga Weir

In April 2005 a comprehensive (five yearly) inspection of Yarrawonga Weir was conducted. The report on the inspection and review of the past five years’ performance is not yet complete but no urgent adverse matters were noted. In fact, the inspection team noted a significant improvement in the condition of the Weir over the past five years, even in parts of the structure outside of the areas involved in the recent extensive remedial works.

Other locks and weirs

The manipulation of the weir pools downstream of Hume Dam to achieve environmental outcomes has been investigated in the past year, particularly at the locks and weirs in South Australia. A consultant’s report has been prepared on the safe operation range for Locks and Weirs 1 to 6, and some of the significant anabranch and floodplain structures associated with Lock and Weir 6. A detailed procedure has been written for preparation and monitoring to be undertaken at Lock and Weir 1 as part of an environmental weir pool manipulation. It is a generic document that, once accepted, could be easily adapted for the other locks and weirs.

A trial at Lock and Weir 6 involving a 0.15 metre weir pool raising (and an associated lesser raising of the Lock and Weir 5 weir pool) showed no distress at the main structure but did highlight the vulnerability of some of the minor banks and levees along the weir pool rim. These issues, and other risks associated with weir pool raising, are being carefully examined before a larger-range environmental weir pool manipulation takes place.

New office accommodation was completed this year at Euston Weir, and construction of a new office and workshop facilities is under way at Mildura Weir.

Lake Victoria

Following an assessment of the capacity of the bridge over the Lake Victoria Inlet Regulator on Frenchman’s Creek, a limit has been placed on the gross load of vehicles using the bridge. With White’s Bridge out of service access to the flood plain between French’s Creek and the River Murray is restricted. Options for upgrading the capacity of the Inlet Regulator bridge to loading T44 standard are currently being investigated to determine a more cost-effective resolution to the access problem.

Barrages

Excellent progress has been made this year on the upgrade of the Barrages to reduce occupational health and safety risk and improve operational flexibility. Installation of handrails and upgrade of the lift-and-latch system has been completed on Ewe Island and Tauwitchere Barrages. Three sets of 12 gates (including trial fishways in two of the sets) have been upgraded for remote operation from the Goolwa Office or from cabinets on the Barrages. One prototype vertical axis spindle gate has been installed at Mundoo Barrage and five more have been fabricated and delivered to site ready for installation in the coming year. The concept design for a safer, more durable deck for Ewe Island and Tauwitchere Barrages, including kerbs to improve driver safety, has been agreed and detailed design is almost complete. Deck replacement will be progressive over many years as existing units reach the end of their useful lives and are replaced.

The office at Goolwa Barrage has been extended to accommodate the gate control unit.

Navigable Passes and Fishways Project

The construction phase of the Navigable Pass and Fishways Project started in mid-2001. SA Water is managing the project under the direction of a project steering committee, chaired by RMW, with representatives from SA Water, Department of Water, Land and Biodiversity Conservation (SA) and State Water (NSW). The project involves:

• replacing the navigable pass section of the weir
• replacing piers constructed in the 1960s when the navigable pass sections were narrowed
• constructing a vertical slot fishway.

Early in the year construction activity focused on completing works at Locks 7 and 8. The Australian Government Minister for the Environment and Heritage, the Hon Ian Campbell, officially opened the project at a ceremony in August 2004.

Major construction activity through the year involved York Civil Pty Ltd undertaking works at Lock 9. Having completed works at Locks 7 and 8 York Civil was able to incorporate its earlier experience and delivered the completed works within budget and ahead of schedule.

At its meeting on 1 April 2005 the Ministerial Council approved the award of contract for works at Lock 10 Wentworth to Built Environs. By the end of the financial year the first navigable pass pier had been poured and excavation for the fishway had commenced. Completion is scheduled for March 2006.

The detailed design and contract documentation for construction of the navigable pass upgrade and fishway is completed for Lock and Weir 1 and has started for Lock and Weir 3. Trialling of carp separation cages at Lock 9 in 2005–06 will form the basis for the management of carp at the proposed Lock and Weir 1 fishway, where carp control will be an important element of fish management.

A Fish Passage Reference Group oversees the design and functional specifications for the fishway program and provides advice to MDBC on fish passage throughout the Basin. The Fish Passage Reference Group comprises fish passage specialists from New South Wales, Victoria, South Australia and Queensland; an independent fish scientist; and engineers and river operators with an interest in fish passage. It is chaired by an officer of MDBC.

Monitoring of fish passage at Locks and Weirs 7 and 8 is already showing encouraging signs, with target species and size of fish achieving passage. An unforeseen benefit has been the discovery that some species, not previously thought to be migratory, are using or attempting to use the fishway. There has also been a marked decrease in bird numbers at the three locks now fitted with effective fishways, indicating that fish are no longer accumulating downstream of these barriers.

Occupational health and safety

The safety of staff, their families and general public is a high priority at all RMW assets. Our target is zero lost time injuries for staff. In the past year one lost-time injury was sustained during RMW operations.

In 2003–04 significant works to improve the safety of operations included the following.

• Completion of handrails, upgrade of the lift and latch mechanisms and construction of the revised stoplog retention system at the Barrages. This pleasing result was achieved due to the commitment of the staff at the Barrages.
• Commissioning of a prototype vertical axis spindle gate and purchase of five more ready for installation at Mundoo Barrage. The gates will replace an awkward on-site stoplog lifting operation with a much safer hydraulic control operation, for most flows.
• Further improvements to the Tauwitchere Lock enabling safer operation of this publicly operated lock.
• Further improvements in the safe operation of the weir at Lock and Weir 11 (Mildura), particularly relating to manual handling of drop bars on the abutment. Concept designs have been started to develop a safer method to handle the drop bars on the weir itself or to replace the bars with another mechanism.
• The navigable passes at Locks and Weirs 7, 8 and 9 have now been upgraded to avoid the use of divers when reinstating this section of the weir after major flood events. An assessment was made of the risks associated with the remainder of the weirs (1 to 6, 10 and 15) under revised operation rules until all navigable passes are upgraded. It was concluded that the residual risks associated with leaving the navigable passes in place during floods are significantly less than the risks associated with using divers. Until the program is complete, those weirs not fitted with new navigable passes will be closed to boat passage during floods, when the lock chamber is not available for use.
• General improvements to workshop facilities and procedures, including handling of chemicals.
• The walkways on the downstream face of Dartmouth Dam to provide safe access for surveillance staff have been extended according to schedule.

RMW triple bottom line report

Introduction

RMW has adopted sustainability as one of its guiding principles, and is moving to integrate this philosophy into its culture, its operations and its management systems. This approach is consistent with the COAG water reforms that led to the formation of RMW within the MDBC and is in harmony with the 2001 independent pricing review that proposed the introduction of an ‘environmental dividend’. There is a stakeholder and public expectation that as a division of the MDBC, RMW should provide a benchmark for sustainable environmental and social practices in river basin and water resource management, in addition to its economic obligations under the COAG water reforms.

In line with these obligations and expectations RMW will account for its performance in promoting sustainable use of water, land and other environmental resources of the Murray-Darling Basin by producing an annual ‘triple bottom line’ report.

Sustainability strategy

The RMW strategy is founded on the Vision for River Murray Water, which has been formally endorsed by the RMW Board and the Murray-Darling Basin Ministerial Council:

Within agreed financial, social and environmental objectives to sustain the supply of water in the River Murray System.

This vision is carried forward in the RMW Strategic Plan 2002–2007 and the draft MDBC Strategic Plan 2005–2010, together with performance indicators and target dates for accomplishment.

Staff

The business of RMW is conducted by:

• a relatively small team mostly based in Head Office, Canberra, focused on management, river modelling and system operations, and special projects
• three state government constructing authorities focused on the site operation and maintenance of the water storage and delivery assets, plant and equipment, and associated land and buildings.

In Canberra, there are currently 25 staff who are effectively dedicated to RMW activities. Of these, two are management, 15 professional, four technical and two administrative support. Within the constructing authorities, 120 people are engaged in RMW activities.

For its own staff, RMW assumes direct responsibility for training, career development, occupational health and safety, and succession planning. The constructing authorities have the prime responsibility for these matters for the staff they employ to undertake RMW activities. However, RMW does actively support them, particularly in OH&S and by encouraging them to keep up with best practice maintenance management. RMW takes a special interest in the wellbeing of those staff located at the more remote assets that are not easily accessible or well supported with normal community services, endeavouring to improve the level of amenity and working to create a sense of ‘RMW family’.

Occupational health and safety

RMW operates and maintains assets ranging widely in size, complexity, age and facility. Some of the older structures were designed and constructed at a time when there was less emphasis on OH&S. Some difficult challenges have been overcome in responding in a responsible way . Significant effort has been made this year on modifications to assets and changes in procedures to improve the safety of personnel undertaking RMW’s business.

The range of works includes:

• fundamental changes to the older lock and weir structures by upgrading the navigable passes to avoid the need for divers to reinstate weirs after withdrawal to pass floods
• completion of significant milestones in a package of works at the Barrages aimed at improving personnel safety as well as improving river operation efficiency
• adding walkways to the downstream face of Dartmouth Dam, a relatively new and well-engineered structure, as a continuous improvement in safety.

The approach to OH&S has improved so much over the past decade or so that there is now a definite culture of working safely among RMW and constructing authority staff. This is seen across the range of activities from the first stages of design of assets to the routine induction by constructing authorities of contractors or consultants before allowing them onto RMW assets to undertake work or inspections.

Community relations

RMW has no direct or formal relationship with the ultimate users of the water it delivers, or the communities that are affected by its operations in the states of New South Wales, Victoria or South Australia. Nevertheless RMW seeks to build cooperative and collaborative relationships with these communities through:

• active participation with community organisations in the development of relevant management plans, in particular the Land and Water Management Plans for Lake Hume and Lake Mulwala, and the options for the future for the Mulwala Bridge
• publication of routine operational advice as well as information about specific events. Typical examples are the River Murray Weekly Report on flow, capacity and storage data, and the involvement of stakeholders in a weir pool manipulation event, with media releases before and during the events to keep the public informed. The report is widely distributed across the Basin via mail, fax, and e-mail to more than 1000 recipients, as well as being posted on the MDBC web page, where it is consistently among the ‘top ten’ hits.
• providing safe and enjoyable access to sites it controls, subject to security considerations. Public access is encouraged where possible by the provision of recreation facilities and information bays. Continuing improvement in the safety, amenity and appearance of RMW’s assets by the constructing authorities encouraged through the annual award of the Senator Collings Trophy to the best site (see above ).

Environmental bottom line

Managing the river system

RMW’s charter is to determine the annual allocation of the Murray-Lower Darling water resource to the states under the Agreement, and to deliver those allocations in a sustainable way that minimises the adverse impacts on the River Murray, the Lower Darling River and the reservoirs impounded by RMW assets.

One of the most significant ways RMW can minimise the adverse impacts of past interventions on the Murray-Darling system and maximise the environmental benefits from its current activities is by the way it operates the river system. In the current prolonged drought conditions this is a great challenge but significant advances have been made. For example:

• RMW has made a dramatic change to the Lake Victoria foreshore environment by altering the timing ofthe annual transfer of water from Lake Hume to Lake Victoria, as well as varying the levels at Lake Victoria to provide annual wetting and drying.
• RMW has worked with The Living Murray project teams to develop new operating rules and guide the design of proposed new structures to prevent unseasonal flooding of the Barmah–Millewa forests due to ‘rain rejection’ by irrigators.

Both of these programs have required more than commitment of time and effort by RMW personnel. RMW has committed significant funds to purchase land or easements around the foreshore of Lakes Victoria and Mulwala, and along the River Murray riparian zone between Hume Dam and Yarrawonga Weir. Obtaining control or rights over these areas has enabled more certainty to alter operations for environmental flow reasons, and will minimise adverse impacts from stock and feral animals.

Electricity generation and consumption

The normal operations of River Murray Water are not energy-intensive. However, the salinity mitigation schemes do require electrical energy for pumping. Electrical consumption is mitigated by careful control and good maintenance.

This consumption is more than offset by the production of hydroelectric power from water releases for irrigation purposes from River Murray Water structures. Hydroelectric power stations are located at Dartmouth Dam, Hume Dam and Yarrawonga Weir.

Economic bottom line

Commercial structure

RMW’s revenue is derived primarily from the three states that are its customers and from the Australian Government. Charges are based on a surrogate pricing model to ‘break even’ on costs. No dividends are paid.

A summary of the RMW income and expenditure statement for 2004–05 is given in Table 2.3. Table 2.4 shows the volumes of water delivered for the year to each of the states.

Table 2.3: River Murray Water income and expenditure, 2004–05

	NSW $’000	Vic $’000	SA $’000	2005 Total $’000	2004 Total $’000
INCOME
Water storage and supply ­- Access	8 741	7 466	2 878	19 085	18 886
Water storage and supply – Consumption	3 746	3 200	1 233	8 179	8 094
Salinity mitigation	3 867	3 867	3 868	11 602	13 800
Public beneficiaries	951	951	2 044	3 946	3 628
Subtotal (income from primary customers)	17 305	15 484	10 023	42 812	44 408
Hydro generation				1 273	538
Interest				932	982
Other operating revenue				519	519
Subtotal other income				2 723	2 039
Carry over from previous year				3 713	8 925
Carry over to following year				-2 480	-3 713
Total income				46 768	51 659
RECURRENT EXPENDITURE
Water storage & supply				23 955	18 382
Salinity mitigation				3 893	3 104
Navigation				1 188	1 574
Recreation and tourism				666	695
Other				221	298
Total recurrent expenditure				29 923	24 053
OPERATING SURPLUS				16 846	27 606
Commonwealth contribution				5 503	6 957
TOTAL AVAILABLE FOR INVESTIGATION AND CONSTRUCTION				22 349	34 563

Table 2.4: State diversions from the River Murray and the lower Darling River during 2003–04 (volumes of water delivered, GL)

State	Diversions (GL)
New South Wales	1 258*
Victoria	1 418*
South Australia	618†
TOTAL	3 294

* Operational and hydrographic data, subject to revision.

† Approximate data provided by the SA Department of Water, Land and Biodiversity Conservation.

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Asset sustainability

RMW has been advocating for some time the introduction of renewals annuity funding, which would provide a relatively consistent basis for renewal, replacement and refurbishment of its infrastructure assets. In 2004–05 the Australian Government and the Victorian Government completed arrangements for enabling legislation to be considered by their parliaments. The governments of New South Wales and South Australia have yet to finalise their consideration of the proposed amendments and draft enabling legislation.

Economic impact in the region

In 2004–05 RMW expended $48 million through the constructing authorities in the states of New South Wales, Victoria and South Australia. This amounts to 84 per cent of RMW expenditure for the year.

 

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