VARIATION
VARIATION NUMBER 3 TO SCHEDULE 2 PROJECT SCHEDULE TO THE WATER
MANAGEMENT PARTNERSHIP AGREEMENT BETWEEN THE COMMONWEALTH AND
QUEENSLAND FOR THE WATER FOR THE FUTURE QUEENSLAND STATE PRIORITY
PROJECT - COAL SEAM GAS WATER FEASIBILITY STUDY
VARIATION
Parties
This Variation No.3 is made between:
The Commonwealth of Australia (Commonwealth) represented by its
Department of Sustainability, Environment, Water, Population and Communities
(DSEWPAC and formerly DEWHA)
AND
The State of Queensland (State) represented by its Department of Natural
Resources and Mines (DNRM) and formerly Department of Environment and
Resource Management (DERM)
(the Parties)
Context
This Variation No.3 is made in the following context:
A.
The Commonwealth, represented by DSEWPaC (then known as DEWHA) and
the State, represented by DNRM (then known as DERM), entered into a Water
Management Partnership Agreement (the Agreement) on 11 January 2010.
B.
In accordance with clauses 5.1.1.b and 16.2.1 of the Agreement, the Parties
signed a project schedule (the Project Schedule) for the Water for the Future
Queensland State Priority Project - Coal Seam Gas Water Feasibility Study (the
Priority Project) on 18 October 2010.
C.
Under clause 16 of the Agreement, a Project Schedule is to be varied by the
written and signed agreement of the Parties.
D.
In accordance with clause 16 of the Agreement, the Parties varied the Project
Schedule on 5 September 2011 (Variation No 1) and 8 May 2012 (Variation
No 2).
E.
In accordance with clause 16 of the Agreement, the Parties now agree to further
vary the Project Schedule as set out in this Variation No 3 to allow for the
amendment of the project milestone table in clause C.1.1, the project cost table
in clause D.1.2 and the payment schedule in clause J.2 of Schedule 2.
1.
Interpretation
1.1.
Definitions
1.1.1.
Unless the contrary intention appears a term in bold type has the meaning
shown opposite it:
Agreement
has the meaning given in Recital A.
Project Schedule
has the meaning given in Recital B.
Variation Date
means the date on which this Variation is
signed by the last Party to do so.
Variation No. 1
has the meaning given in Recital D.
Variation No. 2
has the meaning given in Recital D
Variation No. 3 to CSG Water Feasibility Study Project Schedule -July 2012
2
1.2.
Interpretation
1.2.1.
Clause 18.5 of the Agreement applies to this Variation No 3 as though all
references in that clause to the "Agreement" were instead references to this
"Variation No 3".
2.
Variation of the Project Schedule
2.1.1.
The Parties agree that, on and from the Variation Date, the Project Schedule is
varied as shown in track changes text in Annexure 1 to this Variation No 3.
2.1.2.
Subject only to the amendments contained in this Variation No.3, the Parties
confirm all other provisions of the Project Schedule (as previously varied by
Variation No 2) and the Agreement.
3.
Effect of Variation
3.1.1.
The Parties agree that Annexure 2 shows a clean version of the Project
Schedule after it is varied in accordance with clause 2 of this Variation No.3.
4.
Costs
4.1.1.
The Parties shall each bear their own costs and expenses (including legal costs)
arising out of and incidental to the negotiation, preparation and signing of this
Variation No.3.
5.
Counterparts
5.1.1.
This Variation No.3 may be signed by the Parties in two counterparts, in which
case the two counterparts together will be taken to constitute the one Variation.
Variation No. 3 to CSG Water Feasibility Study Project Schedule -July 2012
3
Signatures
SIGNED for and on behalf of the
COMMONWEALTH OF
AUSTRALIA as represented by the
Department of Sustainability,
Environment, Water, Population
and Communities by
)
)
)
Craig Bradley
Signed 31/8/2012
^Name of signatory ^
Signature and date
In the presence of:
Matthew Sprott
Signed
^Name of witness^
Signature of witness and date
SIGNED for and on behalf of the
STATE OF QUEENSLAND as
represented by the Department of
Natural Resources and Mines by
Acting Director-General
)
)
)
Dan Hunt
Signed
^Name of signatory^
Signature and date
In the presence of:
Debra Anne Laing
Signed 17/8/2012
^Name of witness^
Signature of witness and date
Variation No. 3 to CSG Water Feasibility Study Project Schedule -July 2012
4
SCHEDULE 2 – QUEENSLAND PRIORITY PROJECT SCHEDULE – COAL SEAM GAS
WATER FEASIBILITY STUDY
COMMONWEALTH OF AUSTRALIA REPRESENTED BY
THE DEPARTMENT OF SUSTAINABILITY, ENVIRONMENT, WATER,
POPULATION AND COMMUNITIES
WATER FOR THE FUTURE
QUEENSLAND STATE PRIORITY PROJECT
COAL SEAM GAS WATER FEASIBILITY STUDY
PROJECT SCHEDULE 2 TO THE WATER MANAGEMENT
PARTNERSHIP AGREEMENT BETWEEN THE COMMONWEALTH
AND QUEENSLAND
Variation No. 3 to CSG Water Feasibility Study Project Schedule - July 2012
1
Context
A.
The Priority Project described in this Project Schedule concerns a Coal Seam
Gas Water Feasibility Study (CSGWF Study).
B.
The Commonwealth and the State acknowledge and agree that prior to the
date of execution of this Project Schedule, the State undertook work on the
CSGWF Study pursuant to a funding agreement signed 16 February 2009
(Start-Up Work).
C.
The Commonwealth and the State acknowledge and agree that this Project
Schedule:
(a) requires the State to perform and complete the Priority Project (as
described in this Project Schedule), including the Project Activities and
Project Milestones;
(b) does not require the State to re-perform any of the Start-Up Work; and
(c) does not affect any obligations the State may have in relation to the
performance of the Start-Up Work or an obligation under the funding
agreement referred to in Context B.
D.
This variation (Variation No. 3) replaces the Project Schedule agreed between
parties on 8 May 2012 in Variation No 2.
A.
Terminology
A.1.1.
Capitalised terms in this Project Schedule have the same meaning as in clause
18.4 of the Agreement.
A.1.2.
For the purpose of this Priority Project Schedule only, the terms specified in this
Item have the following meaning:
a.
Project Activities: means the key component investigations of this Priority
Project;
b.
Project Milestone: further to clause 18.3 of the Agreement, is made up of a
series of deliverables that may come under different Activities;
c.
Start-up Amount: means the funding paid or payable to the State by the
Commonwealth under a funding agreement, signed 16 February 2009 for
early works on the Coal Seam Gas (CSG) Water Feasibility Study, as
specified in Item J of this Project Schedule. Both Parties acknowledge that
the Commonwealth has previously allocated $1,120,000 under a funding
agreement, signed 16 February 2009, to commence early works for the
Project. Both Parties acknowledge that the State has previously allocated
$113,525 in cash and $518,272 in-kind to commence early works for the
Priority Project; and
d.
Task: means an action completed to achieve the deliverables of an Activity
(as set out in Item C.1.2.).
e.
DSEWPaC: means the Commonwealth Department of Sustainability,
Environment, Water, Population and Communities (formerly known as the
Department of Environment, Water, Heritage and the Arts or DEWHA)
Variation No. 3 to CSG Water Feasibility Study Project Schedule - July 2012
2
ABN 34 190 894 983 or other department or agency that has from time to
time responsibility for this Agreement, and includes its Personnel and
successors.
f.
DNRM: means the Queensland Department of Natural Resources and
Mines (formerly known as the Department of Environment and Resource
Management or DERM) ABN 59 020 847 551 or other department or
agency that has from time to time responsibility for this Agreement, and
includes its Personnel and successors.
B.1.
Priority ProjectSummary and duration of the Priority Project
B.1.1.
This Priority Project will analyse the opportunities for, and the risks and
practicability of, using CSG water to assist in addressing water sustainability
and adjustment issues in the Queensland Murray-Darling Basin. This will
include the feasibility of using CSG water to relieve demand on groundwater for
irrigation in heavily committed aquifer systems near the Condamine River. In
order to do so, the State must first develop an improved understanding of the
risks and uncertainties associated with CSG water.
B.1.2.
This Priority Project will result in an improved understanding of how CSG water
may be used to contribute to Queensland water management policies. The
project will result in knowledge that is fundamental to managing the
environmental and resource management risks associated with the rapidly
expanding CSG industry, both within and beyond the Queensland MurrayDarling Basin.
B.1.3.
Overall, the Priority Project will help to ensure that government, industry and
communities are optimally placed to both realise the opportunities and manage
the risks presented by CSG water.
B.1.4.
This Priority Project is strictly a feasibility study, and as such will not involve any
on-ground works or water savings (however it will make recommendations for
future works or policies).
B.1.5.
Input and involvement in the Priority Project from industry and community
stakeholders will be invited to facilitate knowledge sharing and mutual
awareness of issues relating to CSG water management and use.
B.1.6.
This Priority Project will deliver nine Activities defined in Item A.1.2.a and
detailed in the Project Milestone table at Item C.1.1 of this Project Schedule.
B.1.7.
This Priority Project will be complete by 10 February 2013.
B.2.
B.2.1.
Aims/objectives of the Priority Project
The Priority Project will achieve the following outcomes:
 Understanding and knowledge of the nature of CSG waters and coal seam
hydrogeology to allow the consequences of CSG extraction to be
understood and sustainably managed;
 Understanding of the potential impacts to surface and groundwater
systems from CSG water extraction, use and disposal;
Variation No. 3 to CSG Water Feasibility Study Project Schedule - July 2012
3
 Understanding of when and where CSG water will be available for use,
together with an understanding of the risks and variability associated with
its supply;
 Understanding of existing and predicted future demand (based on
projected growth and potential demand and efficiency management
measures) for urban, industrial, mining and agricultural water in the
Queensland Murray-Darling Basin over the next 50 years; and
 Understanding of the potential opportunities for using CSG water to assist
in transitioning irrigation communities in the Queensland Murray-Darling
Basin to lower water use.
B.3.
B.3.1.
B.3.2.
Priority Project Requirements
The Priority Project requires the State to complete the following Project
Activities:
a.
Activity 0 – Project Management;
b.
Activity 1 – Chemistry, origins and hydrogeology of CSG water;
c.
Activity 2 – Modelling and forecasting of CSG water production;
d.
Activity 3 – Assessment of salinity impacts of CSG water on landscapes
and surface streams;
e.
Activity 4 – Stream ecosystem health response;
f.
Activity 5 – Assessment of groundwater impacts of CSG production;
g.
Activity 6 – Aquifer injection feasibility;
h.
Activity 7 – Demand analysis;
i.
Activity 8 – Feasibility assessment of using treated CSG water to address
over-allocation in the Condamine River and Tributaries Alluviums; and
j.
Activity 9 – Assessment of CSG water use proposals in the Queensland
Murray Darling Basin (impacts on aquatic ecosystems).
The State agrees that:
a.
The Priority Project will be completed in accordance with the Milestones in
Item C; and
b.
The State is responsible for ensuring the proper and efficient conduct of
Activities.
B.3.3.
The State acknowledges that the Commonwealth is not required to perform any
aspect of this Priority Project.
B.3.4.
Further to clause 14.1.5 the State agrees to provide its program publications to
the Commonwealth for comment prior to their release. DSEWPaC agrees to
provide comment on such publications within 5 Business Days (excluding
comment that requires approval by the DSEWPaC Executive or the
Commonwealth Minister for Water).
Variation No. 3 to CSG Water Feasibility Study Project Schedule - July 2012
4
C.
Project Requirements and Project Milestones
C.1.1.
The Project Milestones for this Priority Project are set out in the following table:
Project Milestones
Milestone
Deliverables
Completion
Date
Milestone 1
a
Progress report documenting project activities including project management activities
Report reviewing current literature pertaining to the origins, recharge and flow regimes of coal
seams and related aquifers (Activity 1.2)
Draft report documenting the following for the CSG water production model(s)
 the agreed conceptual framework;
 the technical design; and
 data gaps limiting the efficacy of the model (Activity 2)
Final report containing the proposed guidelines for assessing salinity risk with attached
appendices covering quality and suitability of data sets for salinity risk assessment and
incorporating feedback from key stakeholders (Activity 3)
Report collating the results of the rapid and direct toxicity assessment work and water quality
modelling outputs (Activity 4)
Report collating the results of the water flows modelling and containing flow guidelines
(quantities and timing of water releases) for local conditions (Activity 4)
Terms of reference for vulnerability of aquifers to CSG water extraction (Activity 5)
Terms of reference for investigation of injection options in the GAB (Activity 6.2)
Terms of reference for scoping infrastructure required for delivery and distribution of CSG
water to Central Condamine Alluviums (Activity 8.1)
31 Dec 2010
Progress report documenting project activities including project management activities
A draft final report documenting
 the origins, recharge and flow regimes of coal seam waters in the Surat and Bowen
basins,
 an assessment of potential indicators of connectivity between coal seams and major
aquifers; and
 a strategy for addressing any critical data deficiencies (Activity 1.2)
Draft report documenting likely quantities, quality and distribution of CSG water which may
result from an agreed set of scenarios for CSG development in the Surat and Bowen basins
(Activity 2)
Final report incorporating feedback from key stakeholders and recommendations from earlier
reports (Activity 4)
Final report incorporating stakeholder feedback and collating all findings from Tasks 1, 2 and
3 (Activity 6.1)
Terms of reference for CSG water injection trials in the Central Condamine Alluvium (Activity
8.2)
Terms of reference for assessment of CSG water use proposals in the QMDB (impacts on
aquatic ecosystems) (Activity 9)
30 Jun 2011
b
c
d
e
f
g
h
i
Milestone 2
a
b
c
d
e
f
g
Variation No. 3 to CSG Water Feasibility Study Project Schedule - July 2012
5
Project Milestones
Milestone
Deliverables
Completion
Date
Milestone 3
a
31 Dec 2011
b
c
d
e
f
g
h
i
Milestone 4
a
b
c
d
e
Milestone 5
a
a
Final report documenting project activities including project management activities
d
b
c
d
D.1.
Progress report documenting project activities including project management activities
Draft report on scales of geological heterogeneity within the Walloon Coal Measures (Activity
1.3)
Final report integrating all findings of Tasks 1 to 6 and incorporating stakeholder feedback
(Activity 5)
Final report incorporating stakeholder feedback and collating all findings from tasks 1,2, and 3
(Activity 8.1)
Draft report describing methodology for assessing impacts of CSG water use proposals on
aquatic ecosystems in the QMDB (Activity 9)
Progress report documenting project activities including project management activities
e
c
D.
Draft report identifying infrastructure options for delivering CSG water to the Central
Condamine Alluvium (Activity 8.1)
Report documenting progress of injection trials for CSG water in the Central Condamine
Alluvium (Activity 8.2)
Terms of reference for assessing specific options for using CSG water in the Central
Condamine Alluvium (Activity 8.3)
Draft report identifying options for CSG water use in the QMDB (other than the CGMA) and
the potential impacts to aquatic ecosystems (Activity 9)
Final report on scales of geological heterogeneity within the Walloon Coal Measures (Activity
1.3)
Progress report on Activity 8.2, Phase 2: Field program design for injection trials in the
Central Condamine Alluvium
Draft report on Phase 1, Substitution issues: Assessment of options for using CSG water in
the Central Condamine Alluvium (Activity 8.3)
Progress report on Activity 2A: Enhancement of the CSG Water Production Tool
b
Milestone 6
Progress report documenting project activities including project management activities
Final report documenting
 the origins, recharge and flow regimes of coal seam waters in the Surat and Bowen
basins,
 an assessment of potential indicators of connectivity between coal seams and major
aquifers; and
 a strategy for addressing any critical data deficiencies (Activity 1.2)
Terms of reference for conceptualisation of priority areas in the GAB at risk from CSG
extraction (Activity 1.3)
Final report incorporating updated modelling results of CSG water production and collating all
results and recommendations from earlier reports and stakeholder feedback (Activity 2)
Terms of reference for investigation of CSG water injection options in the GAB (Activity 6.2)
30 Jun 2012
30 Sept 2012
31 Dec 2012
Final report and business case on options for CSG water use in the Central Condamine
Alluvium (Activity 8.3)
Final report on the assessment of CSG water use proposals in the QMDB (impacts on aquatic
ecosystems) (Activity 9)
Final report on Enhancement of the CSG Water Production Tool (Activity 2A)
Project Cost
Project Cost for Priority Project
Variation No. 3 to CSG Water Feasibility Study Project Schedule - July 2012
6
D.1.1.
The maximum Funding payable by the Commonwealth for this Priority Project
(excluding the Start-Up Funding) is $3,880,000 (excluding GST).
D.1.2.
The Project Cost for the Project is set out in the following table (all costs are
GST exclusive):
Coal Seam Gas Water Feasibility Study
Item of Expenditure
FY10/11
FY11/12
FY12/13
Total
(exc GST)
(exc GST)
(exc GST)
(exc GST)
Project Management
$90,000
$180,000
$90,000
$360,000
Activity 1 - CSG Water Characterisation
$170,000
$380,000
completed
$550,000
Activity 2 - Supply Analysis
$250,000
$200,000
$450,000
Activity 3 - Salinity impacts on landscape
and surface streams
$36,000
Activity 4 - Stream ecosystem health
impacts
completed
completed
$36,000
$193,000
completed
completed
$193,000
$15,000
$185,000
$150,000
$350,000
$130,000
$70,000
completed
$200,000
completed
completed
completed
completed
Activity 8 - Assessment of feasibility of
CSG water use in the Condamine
Groundwater Management Area
(CGMA)
$5,000
$300,000
$1,036,000
$1,341,000
Activity 9 - Assessment of CSG water use
proposals in the Queensland
Murray Darling Basin (impacts on
aquatic ecosystems)
$5,000
$280,000
$115,000
$400,000
Total Commonwealth Contribution
$894,000
$1,395,000
$1,591,000
$3,880,000
Total Queensland in-kind contribution
$778,543
Project Cost (exc. GST)
$4,658,543
Activity 5 - Groundwater impacts
Activity 6 - Aquifer injection potential
Activity 7 - Demand analysis
D.2.
Contribution Components of Priority Project
Party
Contribution
(exc. GST)
Commonwealth
$3,880,000
Queensland in-kind co-contribution
$778,543
Other Contributions
nil
Total Project cost
$4,658,543
Variation No. 3 to CSG Water Feasibility Study Project Schedule - July 2012
7
D.3.
D.3.1.
D.3.2
State Contributions
The State agrees to provide the following contributions to this Priority Project at
the following times:
GST-exclusive amount of
State Contribution
Date by which State
Contribution is to
be provided
$778,543 (in-kind contribution)
Throughout project
Confirm method
by which
contribution will
be evidenced
Six-monthly
progress reporting
The State agrees that the State Contributions in Item D.3.1 shall not include
any:
(a) Start-Up Contribution; or
(b) Financial assistance that the State has received from the Commonwealth
under any other Commonwealth program, which includes, for the
avoidance of doubt, any Start-up Funds.
D.4.
Other Contributions
D.4.1.
The Commonwealth and State agree that this Priority Project will not have
contributions by any other person.
E.
Transfer of Water Entitlements
E.1.
E.1.1.
E.2.
E.2.1.
E.3.
E.3.1.
E.4.
E.4.1.
E.5.
Agreed Water Savings (clauses 5.2.3 and 5.2.4)
The Commonwealth and State agree that there are no Water Savings from this
Priority Project.
The Commonwealth's Proportion of Agreed Water Savings (clause 5.2.3)
Not applicable
Transfer of Water Entitlements (clauses 5.2.6 to 5.2.8)
Not applicable
Arrangements between the State or a third party or a Proponent
Not applicable
Verification of Actual Water Savings (clauses 5.2.9 and 5.2.10)
E.5.1.
Not applicable
F.
Sharing Actual Water Savings additional to Agreed Water Savings
F.1.
Not applicable
Variation No. 3 to CSG Water Feasibility Study Project Schedule - July 2012
8
G.
G.1.
G.1.1.
G.2.
Agreement Material and Existing Material relating to this Priority Project
Agreement Material
None Specified
Existing Material
G.2.1.
None Specified
H.
Indemnity
H.1.
Notwithstanding any other provision of this Agreement, the State agrees to
indemnify, and keep indemnified, the Commonwealth against any cost, liability,
loss or expense incurred by the Commonwealth:
a.
In rectifying any environmental damage; or
b.
In dealing with any third party (including Commonwealth Personnel) claims
against the Commonwealth, which includes without limitation the
Commonwealth’s legal costs and expenses on a solicitor/own client basis
and the cost of time spent, resources used and disbursements paid by the
Commonwealth:
arising from any act or omission by the State or its Personnel in connection
with the Priority Project specified in this Project Schedule.
H.2.
The State’s liability to indemnify the Commonwealth under this Item H will be
reduced proportionally to the extent that any fault on the Commonwealth’s part
contributed to the relevant cost, liability, loss or expense. In this Item H.2, ‘fault’
means any reckless, negligent or unlawful act or omission or wilful misconduct.
H.3.
The right of the Commonwealth to be indemnified in this item is in addition to,
and not exclusive of, any right, power or remedy provided to the Commonwealth
by law, but the Commonwealth is not entitled to be compensated in excess of
the relevant cost, liability, loss or expense.
I.
I.1.
Project Reports
Progress Reports
I.1.1.
Further to clause 8 and Schedule 4 of the Agreement, the State must provide
the Commonwealth with progress Reports at the times outlined in the Project
Milestones at Item C of this Project Schedule.
I.1.2.
A Progress Report should contain the following information about the Priority
Project:
a.
a description of actual performance of the Priority Project to date
against the Project Components and against the Project Milestones
(as specified in this Project Schedule);
b.
an income and expenditure statement of the Funding, including State
Contributions, and interest earned by the State on the Funds provided
for the Project Components in the reporting period;
c.
a statement as to whether the Project Components are proceeding
within the Project Cost and if not, an explanation as to why the Project
Cost is not being met and the action the State proposes to take to
Variation No. 3 to CSG Water Feasibility Study Project Schedule - July 2012
9
address this, and the gross amount of contingency accessed (if any)
and a high level explanation as to why the contingency was required;
I.1.3.
I.2.
d.
details of all promotional activities undertaken in relation to, and media
coverage of, the Project Components during the reporting period and
any expected promotional opportunities, during the next reporting
period of the Priority Project;
e.
a description of the work that will be undertaken to complete the
Project Milestone(s); and
f.
any other items that are agreed by the State and the Commonwealth
to be included in the Progress Reports.
A Progress Report is required for payment of a Milestone as identified in Item C
and Item J of this Priority Project Schedule.
Final Project Report
I.2.1.
The final Project Report will be a stand-alone document that can be used for
public information dissemination purposes regarding this Priority Project.
I.2.2.
The final Project Report for the Priority Project is due within 60 Business Days
after the earliest of:
I.2.3.
I.2.4.
a.
the completion of the Priority Project; or
b.
the termination of this Project Schedule or the Priority Project.
The final Project Report will contain information that:
a.
describes the conduct, benefits and outcomes of the Priority Project as
a whole;
b.
evaluates the Priority Project, including assessing the extent to which
the aims of the Priority Project (as specified in Item B.2. of this Project
Schedule) have been achieved and explaining why any aspect of the
Priority Project was not achieved;
c.
provides high level financial information limited to the approved
amount of Funding, and the total amount of expenditure including
State Contributions;
d.
summarises all promotional activities undertaken in relation to, and
media coverage of, the Priority Project;
e.
includes a discussion of any other matters, relating to the Priority
Project, which DSEWPaC notifies the State should be included in this
final Project Report at least 30 Business Days before it is due; and
f.
any other items that are agreed by the State and the Commonwealth
to be included in the Final Report.
The final Project Report should be accompanied by a certified income and
expenditure statement signed by the Chief Finance Officer, Department of
Natural Resources and Mines that clearly identifies:
a.
confirmation that all Funding was expended in accordance with this
Project Schedule;
Variation No. 3 to CSG Water Feasibility Study Project Schedule - July 2012
10
I.3.
b.
any interest earned on the Funding;
c.
any State contribution;
d.
any cost savings or cost overruns for the Project Components; and
e.
advice on the amount of any Funds paid to the State that are to be
returned by the State to the Commonwealth.
Audited Financial Reports
I.3.1.
An audited financial Report is to be provided for the Priority Project as specified
in Schedule 4 Item C of the Agreement.
J.
Payment Schedule for Commonwealth Funding for Priority Project
J.1.
The Commonwealth and the State acknowledge and agree that:
(a) the Commonwealth has paid the State $1,120,000 of Start-Up Funds
under a funding agreement signed 16 February 2009, to commence the
CSG Water Feasibility Study; and
(b) the total amount of Start-Up Funds that the State received from the
Commonwealth is in full satisfaction of the Commonwealth’s obligations
under the funding agreement referred to in paragraph (a) above.
J.2.
Subject to the terms of clauses 6 and 15 of the Agreement the maximum GST
exclusive amount of Funds payable by the Commonwealth to the State in
respect of this Priority Project is $3,880,000 which shall be paid in instalments
on the completion of the Payment Preconditions, specified in the following
table. Each payment of Funds is due 30 Business Days after the 1st of a
month that next occurs after the date that the State is assessed as having
completed all of the Payment Preconditions relating to that payment and has
provided the Commonwealth with an invoice for that payment of Funds.
Payment Schedule for Commonwealth Funding
Funding
Payment
Number
GST exclusive amount of
the Funding instalment
1
$860,012
Payment Precondition for Funding Instalment
A) Provision of a final report as required under the
Healthy Headwaters Program Start-up funding
agreement signed 16 February 2009.
B) Provision of a Progress Report consistent with Item
I.1 that evidences satisfactory completion of
Project Milestone 1 (see Item C of this Project
Schedule).
Variation No. 3 to CSG Water Feasibility Study Project Schedule - July 2012
11
Payment Schedule for Commonwealth Funding
Funding
Payment
Number
GST exclusive amount of
the Funding instalment
2
$500,000
Payment Precondition for Funding Instalment
A) Provision of a Progress Report consistent with Item
I.1 that evidences satisfactory completion of
Project Milestone 2 (see Item C of this Project
Schedule).
B) Audited Financial Report for 2010-11.
3
$850,000
A) Provision of a Progress Report consistent with Item
I.1 that evidences satisfactory completion of
Project Milestone 3 (see Item C of this Project
Schedule).
4
$650,000
A) Provision of a Progress Report consistent with Item
I.1 that evidences satisfactory completion of
Project Milestone 4 (see Item C of this Project
Schedule).
B) Audited Financial Report for 2011-12.
5
$519,988
A) Provision of a Progress Report consistent with Item
I.1 that evidences satisfactory completion of
Project Milestone 5 (see Item C of this Project
Schedule).
6
$500,000
A) Provision of a Final Report consistent with Item I.2
that evidences satisfactory completion of Project
Milestone 6 (see Item C of this Project Schedule).
B) Submission of an Audited Financial Report
consistent with items I.2.4 and I.3 and Schedule
Item C of the Agreement.
Total
$3,880,000
J.3.
The difference between the total Project Cost (as stated in D.1.1) and the
Commonwealth Funds payable as set out in Item J.2 is equal to the State
contributions set out in Item D.3.1.
J.4.
Funding will be provided upon evidence of completion of Project Milestones
identified in Item C of this Project Schedule, to be reported in Progress Reports
consistent with Item I.1 of this Project Schedule or the Final Project Report
(consistent with Item I.2 of this Project Schedule).
J.5.
Failure to demonstrate Project Milestone completion in a Progress Report or
Final Report will result in the Commonwealth withholding the relevant portion of
the Project Milestone payment, until such time as evidence of completion has
been demonstrated in a subsequent Progress Report or Final Report.
J.6.
No payments for Project Activities under this Project Schedule will be made to
the State outside of this Payment Schedule.
Variation No. 3 to CSG Water Feasibility Study Project Schedule - July 2012
12
By signing this document, the parties to the Agreement dated 11 January 2010 agree
that this document will be incorporated into the Agreement as a Project Schedule on
and from the date the Commonwealth signs this document.
Dated the 31st day of August 2012.
SIGNED for and on behalf of the Commonwealth
of Australia by:
Craig Bradley
)
)
)
Name of signatory
Signed
Signature
In the presence of:
Matthew Sprott
Signed
Name of witness
Signature of witness
SIGNED for and on behalf of the State of
Queensland as represented by the Department of
Natural Resources and Mines by:
)
)
)
Dan Hunt, Acting Director-General
Signed
Name of signatory
Signature
In the presence of:
Debra Anne Laing
Signed 17/8/2012
Name of witness
Signature of witness
Variation No. 3 to CSG Water Feasibility Study Project Schedule - July 2012
13